3. To ask the Scottish Government what action it is taking to support businesses across the Highlands and Islands region. (S6O-02952)

Our economic development agency for that region, Highlands and Islands Enterprise, provides advice, training and funding to help businesses to grow and innovate. It invested £20.1 million in 272 small businesses across the region during 2022-23, supporting 478 jobs and an increase of £122 million in turnover.

Our investment of £242.5 million in the four city region and growth deals across the Highlands and Islands will deliver significant and lasting economic benefits for businesses.

The 2024-25 Scottish budget ensures that businesses across the Highlands and Islands will continue to benefit from a competitive non-domestic rates relief package, which—according to the latest figures—includes 23,000 business properties paying no rates at all, thanks to the small business bonus scheme.

Last October, HIE’s chief executive, Stuart Black, told the Economy and Fair Work Committee that a projected cut of 4.8 per cent to HIE’s budget would affect its

“ability to work with communities at local level”.—[

Official Report, Economy and Fair Work Committee,

4 October 2023; c 7.]

Given that HIE’s total budget is now at its lowest level in more than a decade, following a cut that was three times as great as was previously forecast, does the Cabinet secretary not recognise the serious damage that will be done to business confidence across communities in the Highlands and Islands?

As our delivery agent, HIE will continue to make a key contribution to achieving the Government’s objectives through support for businesses and communities in strategic economic development. The budget provides investment of almost £67 million in 2024-25 as the first part of the Scottish Government’s commitment of up to £500 million to anchor a new offshore wind supply chain in Scotland. We expect HIE to play a key role in delivering our ambitions for that supply chain and in maximising the economic benefits therein.

I will also continue to work with HIE to ensure that it can prioritise the funding that it has received to maximise the opportunities that are available.

However, at a time when our budgets are under attack from the United Kingdom Government, I respectfully say to Donald Cameron that it is incredible that he comes here asking for more money but does not come up with an answer on where it is supposed to come from.

Before Christmas, it emerged that the Lerwick-Kirkwall-Aberdeen Serco NorthLink ferry service costs would be hiked by an eye-watering 8.7 per cent from April 2024. That is obviously above inflation, and it will hit businesses with increased freight costs. Does the Cabinet secretary consider such cost hikes on the lifeline service to be supportive of island businesses?

We will continue to work with Serco NorthLink to ensure that it provides a sustainable and supportive environment for the lifeline services that it provides. I declare an interest, having travelled on NorthLink ferries over the Christmas period in order to visit family. I will be happy to meet Beatrice Wishart to discuss the issue that she has raised.

I welcome the Government’s commitment to supporting business in my region. There are now more than 1,200 social enterprises across the Highlands and Islands, which is the highest density in Scotland. A third of all of Scotland’s social enterprises are in rural areas, and they contribute 88,000 jobs and more than £2.3 billion to the economy. What specific support can be offered to the growing social enterprise sector in the Highlands and Islands?

We recognise the unique importance of social enterprises to business and community life across Scotland’s Highlands and Islands. Our social enterprise action plan recognises the different challenges that they face.

The Scottish Government directly funds the rural social enterprise hub, and social enterprises from the Highlands and Islands can access business support from Just Enterprise, which is a Government-funded national business support service. That support is delivered locally, often through partners such as Impact Hub Inverness. Since April 2022, we have awarded more than £600,000 of financial support directly to social enterprises in the Highlands and Islands through our delivery partner Firstport.

The Presiding Officer:

Question 4 was not lodged.