Scotland’s Spending Plans and Draft Budget 2011-12

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Chapter 6 Office of the First Minister

PORTFOLIO RESPONSIBILITIES

The Office of the First Minister portfolio is responsible for setting strategic direction across Scottish Government. It includes policy on Culture, Europe and External Affairs, and the relationship between the Scottish and UK and other Governments, where the primary aim is to promote Scotland's interests and identity at home and abroad. The portfolio budget supports work to place Scotland on the world stage and to contribute towards delivering Scotland's economic ambition.

The portfolio works to enhance the quality of life for Scotland's communities through maximising access to high quality cultural events and opportunities and the promotion of Gaelic; and through its Executive Agencies promotes, protects and provides access to Scotland's historic environment (Historic Scotland); and our documentary heritage (National Archives of Scotland).

SUPPORTING RECOVERY AND INCREASING SUSTAINABLE ECONOMIC GROWTH

The Scottish Government has refocused its relationships with many parts of the world to bring a sharp economic focus to our work and strengthen Scotland's position in the world. Our International Framework is supported by a series of targeted plans with China, India, Pakistan and the USA and a refreshed international development policy focusing on our engagement with developing countries. Our presence in the key markets of China and North America promote Scotland as a modern nation with competitive advantage in rapidly growing sectors like low carbon technologies, life sciences and food and drink. Exports to the USA alone are worth more than £3 billion a year to the Scottish economy.

The creative industries in Scotland support over 60,000 jobs and contribute over £5 billion to the economy; the historic environment supports 60,000 jobs and contributes more than £2.3 billion; and Scotland's museums and galleries welcome an estimated 25.3 million visitors per annum and are worth an estimated £800 million to the economy. Our support for the National Collections and Performing Companies and for Historic Scotland and the National Archives of Scotland makes a vital contribution to this and to increasing numbers of visitors for Scotland's tourism industry.

The Office of the First Minister is using its portfolio budget to help position Scotland as a creative, innovative country with new ideas and applications particularly in new growth sectors of the economy.

Historic Scotland has a lead role in providing technical and scientific advice on improving the energy efficiency of Scotland's 460,000 traditional buildings; and is delivering its own significant carbon reduction commitment for the many properties in its estate. The other Cultural and Gaelic bodies are also taking steps to reduce their carbon emissions.

Gaelic funding for organisations such as MGALBA, Storlann, Bòrd na Gàidhlig and Sabhal Mòr Ostaig is helping to revitalise and support the economy and cultural life of areas of low population.

OUR NATIONAL OUTCOMES

The policies, activities and expenditure of the Office of the First Minister portfolio contribute to a number of our national outcomes, especially:

  • we take pride in a strong, fair and inclusive national identity;
  • our young people are successful learners, confident individuals, effective contributors and responsible citizens;
  • our children have the best start in life and are ready to succeed; and
  • we value and enjoy our built and natural environment and protect it and enhance it for future generations.

The portfolio helps create and sustain a strong and inclusive national identity through its annual support for cultural and heritage organisations to tell Scotland's story and to promote and strengthen our identity to a wide range of audiences from home and abroad. It supports the creative economy by encouraging creative industries to become leading edge in their field, by celebrating diversity including support for Gaelic and Scots language communities and by managing Scotland's reputation as a distinctive global identity by promoting Scotland as a modern and dynamic nation. Our sense of who we are - as individuals and as a nation - must be underpinned by our culture and our heritage, our creativity and our risk-taking. Taking part in cultural activities improves wellbeing and helps to create resilience to see us through difficult times; indeed visitor numbers and attendances are currently increasing.

This wide-ranging portfolio also contributes to helping our young people become successful learners, confident individuals, effective contributors and responsible citizens; and giving children the best start in life. It does this through, for example, its support for Gaelic learning, helping children learn about their heritage and historic environment; and the support and development of creativity in business, schools and communities.

The portfolio contributes to protecting and enhancing our natural and built environment particularly through the work of Historic Scotland, and promotes access to and provides advice and guidance on the protection of the historic environment.

OUR ACHIEVEMENTS

Since 2007 the Office of the First Minister portfolio has made significant strides in promoting Scotland at home and abroad and in making the most of Scotland's rich and diverse culture and history.

Historic Scotland has invested £13.5 million in conservation area regeneration schemes and, in partnership with the National Trust for Scotland and the Historic Houses Association has developed a Homecoming Pass. On the back of worldwide trade sales of over 10,000 passes, the product has been retained, re-named the Scottish Heritage Pass and launched in the marketplace as a permanent addition to Scotland's tourism ticketing portfolio. Historic Scotland has also invested £7.46 million in a project to conserve and present James V's Royal Palace at Stirling Castle (total project cost since 2001: £12 million). The project, which will open to the public at Easter 2011, will provide a major new attraction for Stirling that is predicted to raise castle visitor numbers around 14 per cent above 2008-09 levels.

Creative Scotland, established on 1 July 2010, has replaced the Scottish Arts Council and Scottish Screen as the single national body for supporting and promoting Scotland's culture, arts and creative industries.

Our £6 million Edinburgh Festivals Expo Fund has raised the profile and showcased Scottish talent. Through 40 projects, over 2000 artists/performers have played to audiences of over 1 million at the Festivals and beyond.

The opening, at the National Archives of Scotland, of the world leading Scotland's People centre for family history in 2009 has provided a continuing attraction to ancestral tourists. The creation of a network of similar centres, in co-operation with local authorities and using digitised records from national collections, will encourage tourist visits across the country.

Gaelic funding has supported almost 7,000 pupils in Gaelic education. This funding has also helped MGALBA produce new TV and radio programmes, which attract over 220,000 viewers and have created over 250 jobs. From Bòrd na Gàidhlig funding, Gaelic Language Plans are supported, Gaelic bodies funded and events such as the Royal National Mod, with 1,900 children participants, 1,000 adult participants and 9,000 visitors are supported. Gaelic funding to Sabhal Mòr Ostaig has enabled it to be established as a centre of excellence, and funding for Gaelic adult learning has trained 100 tutors and over 1,000 adult learners.

We have supported and enhanced Scotland's cultural reputation and experiences by providing £20 million towards the redevelopment of the Royal Museum and the Scottish National Portrait Gallery; by safeguarding the public display of the Bridgewater Collection until 2030 through the acquisition of Titian's Diana and Actaeon; and by contributing to the acquisition of the £125 million-valued d'Offay Collection of modern art - enabling the National Galleries of Scotland to show great international post-war and contemporary art right across Scotland.

Following the launch of the refreshed international development policy in 2008, we increased the International Aid budget to £9 million in 2010-11. This has supported a range of targeted initiatives across Sub-Saharan Africa, especially in Malawi but also in Rwanda, Tanzania, Zambia and Sudan and a new programme for South Asia building on our historical relationships. Emergency assistance has also been made available to support countries devastated by humanitarian disasters, such as the recent Pakistan floods and Haiti earthquake - vital work that has saved lives.

The Fresh Talent initiative, support for the Relocation Advisory Service and Work Experience Placements for International Students Programme have encouraged people to choose Scotland as a place to work, live, learn and remain.

MANAGING PRESSURES AND CUTS IN PUBLIC EXPENDITURE

The scale of the total reduction in the Scottish Government budget for 2011-12 has required tough decisions to be taken about expenditure across government and careful consideration of pressures and priorities in all portfolios. Within the Office of the First Minister portfolio, the year-on-year cut in cash terms on resource budgets is £16.9 million and on capital is £7.8 million.

In order to reduce the portfolio spend we have taken difficult decisions but our approach is based on a preference towards direct delivery of cultural experiences; creative industries; international positioning of Scotland as a creative nation; and our moral obligations for Scotland to play its part in international development. We are investing in some new capital projects in Glasgow, Stirling and Dundee and are investing to save by introducing new technologies and sharing services.

We want to see free access to the National Collections continuing and will work with them to achieve this but acknowledge they will need to seek efficiencies and cost reductions. Capital purchase grants have been reduced. The Other Arts budget has been severely cut back limiting Government's ability to respond to in-year requests for support meaning that almost all cultural spend will need to be as planned by funded organisations.

We will expect Bòrd na Gàidhlig to review the different organisations it funds in order to avoid duplication and achieve more collaborative working. Given the importance we place on Gaelic we have limited the reduction in budget to MG Alba and Sabhal Mòr Ostaig.

OUR PRIORITIES

By taking these difficult decisions and maximising the level of efficiencies that can be achieved, we are able to protect expenditure that supports economic growth and the delivery of key priorities.

The Office of the First Minister ( OFM) will spend £255 million in 2011-12 on portfolio priorities, including maintaining cultural and heritage assets and widening access to these, and the promotion of Scotland on the world stage.

  • The Culture budget will continue to support Scotland's economic potential, particularly in the growth of the creative industries and in opportunities for cultural tourism across Scotland. We will drive policy and spend to maximise promotion of Scotland and opportunities for cultural talent from Scotland to flourish internationally. We will therefore maintain the Edinburgh Festivals Expo fund and the International Touring fund for the National Performing Companies.
  • We will maximise, within available resources for planned and deliverable spend, the economic and cultural benefits of Scotland's national cultural assets through, for example, continued funding of £77 million for the Cultural Collections and over £24 million for the National Performing Companies. Whilst we have had to make reductions to the budgets for the Collections and Companies, we will encourage them to work collectively to ensure all parts of Scotland experience their excellent cultural output. We will continue to work with the National Collections to deliver the capital pressures they face in the short-term. On the National Performing Companies, we recognise their need to plan ahead in programming and have reflected that in the comparative reductions short-term. We want them to focus and maintain quality of performance in difficult times. Although there will be challenges to the range and number of exhibitions and performances by the Collections and Companies respectively, we are fully committed to maintaining the quality of these.
  • Historic Scotland are re-focusing their work to maximise the impact on protecting and promoting our built environment, with re-organisation that will deliver reduced costs.
  • The Fresh Talent budget reductions reflect the changing economic situation and the likely impact of the new UK Government immigration cap on skilled and highly-skilled workers.
  • The core funding for Creative Scotland has been protected. Its streamlined organisational structure, integrated business systems and new funding models will allow Creative Scotland to maximise all forms of support for artists and creative practitioners across Scotland, which also provides a focus for tourism across the whole country boosting local economies. They will be expected to deliver strategic and operational support for the creative industries which are one of the seven key sectors in our economic focus. We have maintained its core budget of £35.5 million for this purpose, in the knowledge that significant efficiencies have already been made through moving to a single arts and culture body. We have also maintained ring-fenced funding for Arts and Business (£0.3 million) to help maximise private sector investment in the arts.
  • The portfolio capital budget of £20.5 million will contribute significant sums to the development of the V&A at Dundee Project which is key in the regeneration of the Dundee waterfront; the redevelopment of the Glasgow Theatre Royal and Glasgow Royal Concert Hall in time for the Commonwealth Games in 2014; and the maintenance of our historic estate.
  • Historic Scotland, with £47 million in Scottish Government funding, will deliver key projects such as the Stirling Palace Project, the Bannockburn Battlefield and Visitor Centre Project and the Scottish Ten, and will continue to protect and enhance the historic environment. It will also focus on increasing its contribution to Scottish tourism through the generation of increased visitor numbers and commercial income; support and develop Scotland's traditional building skills; drive forward the development and application of new digital technologies; and contribute to climate change targets. Historic Scotland will deliver budget reductions by growing income from existing sources, exploiting new areas of income generation and restructuring the Agency to better support its priorities by taking forward an Agency wide programme for change.
  • We will maintain momentum on creating a secure future for Gaelic in Scotland by providing over £19 million to support MGALBA and extending Gaelic education provision. Furthermore, our capital grant (£1.1 million) will continue to support local authorities in their provision of Gaelic education. This support will help strengthen the economy and enrich the cultural life of Scotland, especially in areas of low population. We will encourage Bòrd na Gàidhlig to maintain progress with the Gaelic plans, to deliver the Action Plan and to manage pressures by examining any duplication of function of the various Gaelic organisations that receive support to ensure in the future that they will operate as an efficient and effective network for the promotion of Gaelic.
  • We will build on the success of Scotland's first Year of Homecoming in 2009, which generated £53.7 million in additional tourism revenue for Scotland and provided an estimated £154 million worth of positive global media coverage, by continuing to support the tourism and events industry; by contributing to the Homecoming legacy focus years that are running from 2010 to 2013, and by ensuring that the opportunities for Scotland in staging a second year of Homecoming in 2014 are maximised.
  • We will use the Major Events and Themed Years budget of £1.7 million to support the Homecoming Legacy work and in 2011-12 includes funding for the Active Scotland and Creative Scotland Focus Themed Years. The budget will also support the Royal Edinburgh Military Tattoo grandstand project in 2011-12 as well as securing major events which showcase Scotland on a world stage. Our support for the Royal Edinburgh Military Tattoo grandstand project will help to ensure the project delivers its aims of securing the future of the Tattoo; speeding up assembly times and providing opportunities for the staging of additional signature events.
  • The International Relations budget of £14.4 million will promote Scotland internationally and contribute aid where it is most needed. The cuts to the Fresh Talent Budget will result in less available resource to carry out activity to promote Scotland as a place, to work, live, learn and remain. UK Government policy and the economic situation have resulted in placing constraints on activity in this area. However, within the current constitutional constraints we will continue to push the UK Government to develop flexibilities in the Points Based System for Managed Migration so that Scotland can attract the people it needs.
  • The International Development Fund, maintained at £9 million which is significantly more than double the 2007-08 level, will provide vital support to the most vulnerable in developing countries, ensuring that they too have an opportunity to build a sustainable economic future. Our funds are carefully targeted in a number of specific countries where Scotland has forged strong relationships, both historical and contemporary, ensuring that Scotland fulfils its moral responsibility to provide an effective contribution to the achievement of the Millennium Development Goals. Our unique relationship with Malawi remains a key priority.
  • The International Image budget will continue to deliver a programme of work to promote Scotland internationally, to engage with international networks and with Scotland's diaspora. It will also raise the profile of Scotland's national day and other key events in the Scottish calendar, and promote Scotland's offering for visitors and residents through Scotland's Winter Festival.
  • The range of central analytical budgets of £3 million will provide invaluable support to the evidence base on delivery; aiding understanding of key strategic, economic and social challenges across the Scottish Government. It includes the Office of the Chief Statistician budget of £1.6 million, supporting the monitoring and evaluation of the National Performance Framework, including support for our local delivery partners through the provision of Scottish Neighbourhood Statistics.

Spending plans for 2011-12 are set out below.

Table 6.01 Detailed Spending Plans (Level 2)

2010-11
Budget
£m

2011-12
Draft Budget
£m

Europe and External Affairs

16.7

16.1

Culture and Gaelic

194.2

174.9

Corporate and Central Budgets

9.5

8.2

Historic Scotland

49.3

47.0

National Archives of Scotland

10.1

8.9

Total Office of the First Minister

279.8

255.1

of which:

DEL Resource

251.5

234.6

DEL Capital

28.3

20.5

AME

Table 6.02 Detailed Spending Plans (Level 2 real terms) at 2010-11 prices

2010-11
Budget
£m

2011-12
Draft Budget
£m

Europe and External Affairs

16.7

15.8

Culture and Gaelic

194.2

171.6

Corporate and Central Budgets

9.5

8.0

Historic Scotland

49.3

46.1

National Archives of Scotland

10.1

8.7

Total Office of the First Minister

279.8

250.3

of which:

DEL Resource

251.5

230.2

DEL Capital

28.3

20.1

AME

Europe and External Affairs

Table 6.03 More detailed categories of spending (Level 3)

2010-11
Budget
£m

2011-12
Draft Budget
£m

Major Events and Themed Years

1.8

1.7

International Relations

14.9

14.4

Total

16.7

16.1

of which:

DEL Resource

16.7

16.1

DEL Capital

AME

What the budget does

The Europe and External Affairs budget supports the promotion of Scotland, and Scotland's interests and identity both at home and abroad. It contributes towards the promotion of Scotland as a responsible nation in the world, including Scotland's international development work, and to supporting the Government's purpose through the advancement of Scotland's place in Europe and the wider world. The budget assists in maximising Scotland's influence within the European Union, and builds on mutually beneficial links with other countries including the US and China. The budget supports the attraction of fresh talent to live, study and work in Scotland.

In 2011-12 we will:

  • support the Homecoming Legacy work and funding for the Active Scotland and Creative Scotland Focus Themed Years;
  • provide £0.25 million to support the Royal Edinburgh Military Tattoo grandstand project; and
  • maintain the International Development Fund at £9 million, significantly more than double the 2007-08 level, with the unique relationship with Malawi remaining a key priority.

Culture and Gaelic

Table 6.04 More detailed categories of spending (Level 3)

2010-11
Budget
£m

2011-12
Draft Budget
£m

Creative Scotland and Other Arts

59.0

53.0

Cultural Collections

87.5

77.0

National Performing Companies

26.0

24.6

Gaelic

21.7

20.3

Total

194.2

174.9

of which:

DEL Resource

169.6

158.3

DEL Capital

24.6

16.6

AME

What the budget does

The Culture budget contributes towards enhancing the quality of life for Scotland's communities through maximising participation in high quality cultural events and opportunities, supporting a wide range of government commitments relating to culture and Gaelic. The budget also includes provision for architecture.

In 2011-12 we will:

  • provide capital funding to begin the V&A at Dundee project and to contribute to the redevelopment of key cultural venues in Glasgow in advance of the Commonwealth Games in 2014;
  • provide over £100 million for public access to and enjoyment of the Cultural Collections and to support the artistic and educational work of the National Performing Companies;
  • maintain Creative Scotland's core budget of £35.5 million to enable it to maximise all forms of support for artists and creative practitioners and deliver strategic and operational support for the creative industries;
  • maintain ring-fenced funding for Arts and Business (£0.3 million) to help maximise private sector investment in the arts;
  • continue the successful Edinburgh Festivals Expo Fund, providing £2 million to support showcasing Scottish talent and continue the International Touring fund (£0.35 million) for the National Performing Companies to perform beyond Scotland's shores; and
  • create a secure future for Gaelic in Scotland by providing over £19 million to support MGALBA, to extend services such as Gaelic education provision and to support Bòrd na Gàidhlig with the implementation of Gaelic plans. Furthermore, our capital grant (£1.1 million) will continue to support local authorities in their provision of Gaelic education. In particular with MGALBA we expect it will build on the gains in efficiency it has made and the achievements on many levels of the last two years.

Corporate and Central Budgets

Table 6.05 More detailed categories of spending (Level 3)

2010-11
Budget
£m

2011-12
Draft Budget
£m

Strategic Communications

4.8

4.3

Crown Office and Procurator Fiscal Service Inspectorate

0.3

0.3

Civic Participation

0.7

0.1

Office of the Chief Statistician

1.7

1.6

Office of the Chief Researcher

0.4

0.3

Strategic Research and Analysis

0.7

0.7

Office of the Chief Economic Adviser

0.7

0.7

Public Bodies

0.2

0.2

Total

9.5

8.2

of which:

DEL Resource

9.5

8.2

DEL Capital

AME

What the budget does

Corporate and Central budgets include, among others, Strategic Communications, a range of central analytical budgets including the Office of the Chief Statistician ( OCS), and Crown Office and Procurator Fiscal Service Inspectorate ( COPFSI).

The Strategic Communications budget covers the topics that Scottish Ministers wish to communicate to various audiences. They range from calls to action, to communications aimed at changing behaviour and attitudes over the long-term.

The central analytical budgets aim to provide data and related analysis to support the evidence base on delivery, increasing understanding of key strategic, economic and social challenges across the Scottish Government. The OCS budget aims to develop a wide range of data and related analysis at the smallest geographical level possible to support decision making and monitoring in all programmes. There has been a continued driving down of costs on these budgets realised from efficiencies and improvements in ways of working. The COPFSI reports to the Lord Advocate and is answerable directly to her. It is fully independent of the Crown Office and Procurator Fiscal Service.

In 2011-12 we will:

  • support the monitoring and evaluation of the National Performance Framework, including support for our local delivery partners through the provision of Scottish Neighbourhood Statistics.

Historic Scotland

Table 6.06 More detailed categories of spending (Level 3)

2010-11
Budget
£m

2011-12
Draft Budget
£m

Staff costs

27.8

28.6

Other running costs

6.4

6.4

Programme

31.6

30.9

Heritage capital (resource budget)

6.1

4.5

Capital charges

3.3

3.3

Capital

1.0

2.1

Less income

(26.9)

(28.8)

Total

49.3

47.0

of which:

DEL Resource

48.3

44.9

DEL Capital

1.0

2.1

AME

What the budget does

Historic Scotland protects and promotes Scotland's historic environment, through the conservation and maintenance of 345 nationally significant historic properties and monuments in the care of Scottish Ministers and, as the largest operator of paid visitor attractions in Scotland, through the employment of over 1,000 staff around Scotland who help to maintain our position as a world-class visitor destination. In its work with VisitScotland and VisitBritain, it is a key player in supporting tourism in Scotland.

It provides advice on the management of the most important parts of Scotland's historic environment, including listed buildings, scheduled monuments, wreck sites, gardens and designed landscapes. It promotes cultural identity and associated community regeneration through educational programmes and through the Historic Environment Grants Programme, which contributes funding for the repair of Scotland's most important historic buildings, the regeneration of historic areas and the enhancement of the quality of Scotland's historic city centres. It is taking forward legislation in the form of the Historic Environment (Amendment)(Scotland) Act and an associated education and awareness programme is being developed.

Historic Scotland also protects and supports traditional skills through its work with FE colleges and as Scotland's largest employer of stonemasons (100) and other skilled crafts people including apprenticeships. Through the provision of technical and scientific advice it is improving the energy efficiency of Scotland's 460,000 traditional buildings and making a significant contribution to the Government's carbon reduction targets. Working in partnership with Glasgow School of Art it is enhancing Scotland's reputation for innovation and excellence at home and internationally through the scanning of five international sites as well as the five World Heritage Sites in Scotland - the Scottish Ten project.

In 2011-12 we will:

  • progress key projects such as the Stirling Palace Project (£12 million), the Bannockburn Project (£5 million) and the Scottish Ten (£1.5 million) over the lifetime of the projects;
  • fund grants schemes in towns and city centres (£12 million) delivering substantial leverage of almost 7:1;
  • contribute to Scotland's GDP through generation of income (£28 million); and
  • conserve and maintain properties in care (£17 million).

National Archives of Scotland

Table 6.07 More detailed categories of spending (Level 3)

2010-11
Budget
£m

2011-12
Draft Budget
£m

Staff costs

5.0

4.7

Accommodation Costs

1.2

1.2

Other Running Costs

0.7

0.7

Capital Charges

1.0

1.0

Capital Expenditure

2.7

1.8

Less income

(0.5)

(0.5)

Total

10.1

8.9

of which:

DEL Resource

7.4

7.1

DEL Capital

2.7

1.8

AME

What the budget does

The National Archives of Scotland ( NAS) plays an important role in cultural and economic life and its holdings are central to the nation's sense of identity. NAS provides legal customers with improved access to the public registers and records in order to support Scotland's property market, and develops the Scotland's People service for family history in order to encourage inbound tourism. By improving access to the nation's records, NAS connects Scots at home and abroad to their past and strengthens their sense of identity at a family, community and national level. In addition to advising Scottish Ministers on records and information policy, NAS advises Scottish public authorities on the creation and management of their records, promoting streamlined and more effective government.

In 2011-12 we will:

  • continue digitisation programmes and increase online availability of records via the Internet; and
  • work with public authorities to improve the management of records including digital formats, in order to support better governance and protect individual rights.