3. To ask the Scottish Government how its budget will affect the people of Edinburgh. (S5O-00511)

We have invested in the Royal hospital for sick children and in the NHS Lothian partnership centre facilities—estimated to be operational in June 2017—and we have made a huge investment in the Queensferry crossing. The national health service in Lothian will receive funding of £1.34 billion in the next financial year alone and eight new or rebuilt schools in the east of the country will be operational or in construction in 2017-18, benefiting from £97 million of Scottish Government funding. Schools in the area will benefit directly from their share of almost £7.4 million from the attainment Scotland fund and the City of Edinburgh Council will receive more than £0.75 billion through the local government settlement. In addition, more than 12,000 businesses in the east of Scotland will save almost £26 million a year through the small business bonus. Those are just some of the positive policies from the budget.

I strongly welcome the Scottish Government’s strong commitment to invest in our capital city. With population levels rising in Edinburgh, I also welcome the Scottish Government’s commitment in the draft budget to invest £470 million of direct capital investment in affordable housing. How will Edinburgh, specifically, benefit from increased investment in social housing?

All members will welcome our excellent investment in housing. We have a target of 50,000 affordable homes—70 per cent of those homes will be for social rent—that is backed by an investment package of some £3 billion and that will benefit every part of Scotland. Having achieved a target of 30,000 homes in the previous parliamentary session, I look forward to this Government delivering a target of 50,000 homes in this parliamentary session. Our investment will include new innovative financial packages to stimulate growth across the sector and Edinburgh will be a main beneficiary of our excellent housing policies.

I want to give the Cabinet secretary the opportunity to apologise to Edinburgh residents for the budget shambles last week. The Government had to contact the City of Edinburgh Council within days of the publication of the cabinet secretary’s budget to tell the council that he had got the numbers wrong. In fact, the allocation to the City of Edinburgh Council was £9 million less than the published figures. Does the cabinet secretary think that that is a competent way of running Government finance?

I know that Miles Briggs is new to the chamber, but local government finance is incredibly complex. Miles Briggs might want to study very closely the evidence that I gave to his colleagues—[

Interruption

.]

Labour Party members are heckling me and trying to divert me from my answer, but I know that Miles Briggs, as a very diligent member of the Parliament, will want to know the answer.

I encourage Miles Briggs to look at the evidence that I gave to the Local Government and Communities Committee on local government finance—I covered every question that was asked. He will be aware that the point of the exercise with the circular is to put out draft figures and to engage with local authorities individually and collectively. We have done that consultation exercise and we have delivered those technical arrangements.

Miles Briggs’s commentary on the City of Edinburgh Council is not quite accurate regarding reductions. I am looking at the figures—[

Interruption

.] I will come to the figures, Mr Kelly. The figures show that the increase for the City of Edinburgh Council is more than £10 million. The citizens of the capital city will look forward to the increased spending power that the council and that all local government services will have. Looking at the totality of the figure, it is not just an increase of £10 million—in fact, it is an increase of more than £18 million.

The leader of the City of Edinburgh Council, Andrew Burns, describes the settlement for Edinburgh as

“The worst revenue settlement since devolution”.

He goes on to say:

“Rarely in my near 18-years as a Local Councillor have I seen so much spin and manipulation of figures”,

and he points out that Edinburgh will receive £37 million less than it did in last year’s budget. Local government leaders and finance directors across Scotland are warning that we will see deep cuts in public services. Are they all wrong?

If local authorities are not happy with the settlement that I have given them, why has the Convention of Scottish Local Authorities not rejected it? It is still under discussion.

It does not surprise me that Alex Rowley is quoting a Labour council leader to undermine the Scottish Government’s position. I have ensured that the city council will have extra resources, looking at the total package and including the integration authorities, which is the point of integration. The extra resource to the Edinburgh area is more than £18 million, which is a 2.3 per cent increase.