To ask the Scottish Government what it is doing to address the rise in unemployment in Edinburgh as recently reported by the Office for National Statistics. (S6O-03555)

In 2024-25, the Scottish Government has allocated up to £90 million for employability services. Edinburgh has a strong local employability partnership that is led by key employability stakeholders, including public, private and third sector organisations. The no-one-left-behind approach is delivered locally, ensuring that individuals receive person-centred and tailored support to help them to progress into sustainable employment.

The Edinburgh and south-east Scotland city region deal has a key role in helping the region to thrive. The Scottish Government will contribute £300 million over 15 years, including £25 million towards an integrated regional employability and skills programme.

Unemployment in Edinburgh has risen by more than 50 per cent from December 2022 to December 2023. Small businesses are at the heart of the capital’s economy; however, they are not benefiting from the same level of support as their English counterparts. The Scottish National Party Government’s refusal to replicate the United Kingdom Government’s business rates relief means that the average pub in Scotland is now paying £15,000 more than pubs in the rest of the UK. Further, that is replicated across various sectors in the economy—not just hospitality.

What analysis has the Scottish Government carried out to compare and contrast the impact of its decision to lay that additional burden on our small businesses? We should remember that those businesses are key to providing local jobs and employment opportunities for those who live in the city.

I join Sue Webber in recognising the importance of our small and medium-sized enterprises, which are the backbone of the economy not just in Edinburgh but across Scotland.

I will not rehearse the arguments that have been well aired in the chamber with regard to the decision on retail, hospitality and leisure rates relief. As Sue Webber will recall, to enable that relief to take place, we would have had to commit hundreds of millions of pounds from other vital public services, and that was a decision that we were simply not prepared to take.

Of course, we continue to invest significantly in the small business bonus scheme, which is estimated at a cost of £685 million this year and from which many small businesses, including those in the hospitality sector, benefit.

The Government is committed to continued engagement with the hospitality sector and wider businesses, which are liable for non-domestic rates. Indeed, my colleague, Ivan McKee, as Minister for Public Finance, in conjunction with the Cabinet Secretary for Finance and Local Government, will continue to take forward the work on non-domestic rates, as part of the new deal for business group.

Employability schemes can be a key factor in people joining the workforce or for parents rejoining it after having a child. Despite that, the Scottish Government cancelled £53 million for employability schemes and scrapped the parental transition fund.

Will the minister advise how the Government will make up for the shortfall in funding for employability schemes? What other measures is the Scottish Government taking to get people into employment in Edinburgh?

As I set out in my original answer, we are providing £90 million of support for devolved employability schemes in this financial year and we continue to work with partners to ensure effective delivery, but we recognise that delivery best takes place locally on the ground, to ensure a joined-up, holistic and person-centred approach.

I have recently come into this post, and I am looking forward to engagement with local employability partnerships and other stakeholders across the summer.

In that spirit, if there are any particular areas on which Foysol Choudhury would like me to engage with him directly, I am more than happy to do that.

Gordon MacDonald has a brief supplementary question.

Employment in Edinburgh is at 82 per cent and has increased compared with the previous year. What steps is the Scottish Government taking to further boost Edinburgh and Scotland’s economic activity?

Please answer as briefly as possible, minister.

I have already touched on a range of measures, such as the city region deal and the significant investment that will be channelled through that.

We also have a national strategy for economic transformation. The First Minister has set out that the key, core priority of this Government is stimulating economic growth for all parts of Scotland, including our capital city.