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I recognise that there is significant interest in this area. Would it perhaps be helpful for us to write to the committee with further technical information, given the considerable interest? I am also happy to arrange any follow-up sessions that would be useful. How the economic modelling is devised is a highly technical matter. If the committee would be content with that, I would be happy to arrange for that to take place.

We work very closely with partners in delivering the programme. Earlier, I set out the broad, strategic framework. We are obviously considering the impact on resourcing in the context of the work that the Government is doing with partners to deliver housing, but the issue is not unique to Government. Private developers will be experiencing the same constraints around supply.

I reassure you that we have a clear commitment to our support for affordable housing, but the challenges that we are facing are ultimately outwith our control, although we certainly do what we can within the Government to help to address the issues around supply chains and logistics. However, as I am sure that you appreciate, these are broad, global issues that are impacting many economies across Europe and North America.

Yes, certainly. It was a combination of reductions in demand-led expenditure, so it comes back to my earlier point about demand-led areas. It was also about a number of efficiency savings. We have had some of the lower lines of the budget for the young persons guarantee, but the largest element related to the national transition training fund; some of the costs are being reprofiled into next year.

That is a fair point. We want to see the maximum uptake of any scheme, particularly in relation to employability. We can continue to reflect on that. Some of it has also been about delivering the scheme more efficiently and another aspect, as I referred to, is the reprofiling into the next financial year.

The order specifies the standard rate and lower rates for Scottish landfill tax, consistent with the rates in the 2022-23 Scottish budget as published on 9 December 2021. It sets out that the standard rate will increase from £96.70 to £98.60 per tonne, while the lower rate, for less polluting inert materials, will increase from £3.10 to £3.15 per tonne. The proposed rates will come into effect from 1 April 2022.

Committee members will wish to note that the rates match landfill tax rates for 2022-23 in the rest of the UK, as confirmed in the UK and Welsh budgets. The Scottish Government is continuing to act to avoid any potential for what is referred to as waste tourism as a result of material differences between the tax rates north and south of the border. The increased rates also provide appropriate financial incentives to support delivery of our ambitious waste and circular economy targets.

I will conclude there, convener. I am happy to take questions.

Thank you, convener, and good morning to the committee.

The spring budget revision provides the final opportunity to formally amend the Scottish budget for 2021-22. The budget revision contains the usual four categories of changes: allocation of the remaining Covid-19 consequentials, along with some other funding changes; a number of technical adjustments that have no impact on spending power; some Whitehall transfers; and some budget-neutral transfers of resources between portfolio budgets.

The supporting document on the spring budget revision and the finance update prepared by my officials provide background information on the net changes. The funding changes increase the budget by £1,428.3 million and comprise the majority of the Covid-19 funding, which has been allocated over a number of lines, as detailed in the finance update.

The technical adjustments are mainly non-cash and have a net negative impact of £357.3 million on the overall aggregate position. It is necessary to reflect those adjustments to ensure that the budget is consistent with the accounting requirements and with the final outturn that will be reported in our annual accounts.

Whitehall transfers total £131.2 million and largely comprise funding for the 26th United Nations climate change conference of the parties—COP26—along with a second instalment of the migrant health surcharge.

The final part of the budget revision concerns the transfer of funds within and between portfolios to better align the budgets with profiled spend.

At the time of the publication of the spring budget revision, we did not have final confirmation from HM Treasury on the amount of Barnett consequentials being allocated in the UK supplementary estimates. As a result, we were forced to base the budget revision on the best estimate at that time. There were further developments in the funding position following the SBR’s publication and my officials have provided additional information on the subsequent changes in the finance update.

That information, together with the background information provided, is intended to support the scrutiny process and to offer committee members more insight into the challenges of managing the budget position while the funding position is so volatile.

As we approach the financial year-end we will continue, in line with our normal practice, to monitor forecast outturn against budget and utilise any emerging underspends to ensure that we make optimum use of the resources available in 2021-22 and manage the necessary carry forward to meet additional spending commitments that are reflected in the budget agreement reached for 2022-23.

In line with previous years, my officials have included in the finance update for the committee an indication of the forecast outturn position. Provisional outturn figures will be announced in early June.

I am happy to take any questions that the committee may have.

As you will be aware from previous budget revisions, this has been routine practice in relation to where the budget for the pensions to which you refer has been allocated. I will ask Scott Mackay to provide some more context and background.

Certainly. I will ask Scott Mackay to come in to give a further breakdown on the elements of devolved taxation and the underspend that is emerging in demand-led areas.

Okay. Have you got that detail in front of you, Scott?

Yes, but the issue is ultimately not one about having the resource to deploy; it is about having the materials to spend the resource on. This is a broad reflection of the challenges around supplying and sourcing materials, which are obviously impacting the construction sector.