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Good morning, panel. We know that fewer people are applying to build major housing developments and we have heard that there are delays in planning applications being approved. The Scottish Government has cut the planning budget by 43 per cent. Do you think that the policies in NPF4 are helping to make good-quality homes that people want to live in? What else can be done?

We have touched on the fact that the planning budget has been cut by 43 per cent by the Scottish Government. My question might be for you, Tony. Are our planning departments still facing resource shortages that hinder their ability to effectively oversee development planning and management systems? If so, what confidence do you have in the proposed changes to the planning fee system to address the issue?

Thank you.

NPF4 seeks to deliver both compact and urban growth and development that is balanced between areas of high and low demand. Is there any evidence of those aims being delivered?

Last week, West Dunbartonshire Council became the fifth council to declare a housing emergency. Previously, Homes For Scotland highlighted that the NPF4 must be deliverable and must be clear on how a deliverable land pipeline is to be identified and reviewed, so that a consistent supply of homes is maintained over the long term. Does the panel think that NPF4 puts the housing emergency at the heart of the planning system?

Good morning, convener, and good morning, panel. Thank you very much for the opening statements, which have been helpful. You will obviously have heard the First Minister announce a U-turn on cuts from the housing budget through a pledge of an extra £80 million over the next two years. However, that does not negate the fact that that is less than the nearly £200 million that was cut from the affordable housing budget last December. What does the overall cut mean for rural housing?

In addition, although many people are generally supportive of the aims of the 2040 strategy, we have heard previously that they feel that it is undeliverable and we have heard that again from you. Are the Scottish Government’s housing to 2040 strategy and other policies sufficiently coherent and deliverable? You touched on that, Mike, so could you come in on that question?

I thank the panel for their helpful responses. We have touched on the importance of rural housing to economic growth, and we are well aware that, certainly in remote areas, the renewables and space sectors, for example, show great promise for growth. When I have spoken to local authorities in rural areas, they have said that there are a lot of opportunities for growth, as our panellists have said.

Recruitment to public services such as teaching and healthcare has been tough because of housing shortages. I therefore ask the panel how the rural housing situation is affecting growth in public services in your areas. What role do enterprise agencies play in that?

Thank you, but you have probably prompted some of my supplementary questions. You said in your opening statement that we need faster transformational change because of the state of the finances. I was lucky enough to speak to the chief executive officers of 31 of the 32 councils, and they talked about looking at reserves and their spending.

However, I want to discuss an issue that you have just touched on—the fact that we have outdated council tax and non-domestic rates models, pending a wholesale reassessment of local government funding. Has there been any exploration of alternative revenue strategies that councils could use? Are you aware of anything that they are moving towards? You have also said that we need to look at which services need to be delivered.

I have one more supplementary question, which is on what Blyth Deans mentioned. Councils can make savings, but their doing so year after year will have an effect. I will ask a question about reserves later.

One of the concerns that councils have raised is that, although they might be okay this year and they might be okay next year, there will be serious problems in the coming years because they will not be able to use certain money, such as savings and reserves. It is understandable that you mentioned transformational change, but have you forecast where councils will end up in a number of years from now if they do not carry out that transformational change?

Thank you for that information. It is interesting because 31 out of 32 councils have given me a different picture. They talk about how much pressure is on their reserves and that they will eventually run out. They also talk about the fact that they cannot make year-to-year savings and that they will have eventually have to stop making them.

You are right that transformational change will have to happen, and I have a question on that for Jo Armstrong. Do you think that councils are equipped to make those plans for transformational change?

Good morning, panel, and thank you very much for the opening statement.

I want to probe into the financial bulletin a little more. Obviously, the bulletin outlines the significant financial challenges that confront local authorities and categorises them as “unprecedented”. It underscores the fact that there was a council budget deficit of £725 million for the 2023-24 fiscal year. Can the commission provide a little more detail on the overall budget shortfall for the current fiscal year and elaborate on the strategies that local councils are devising to address the gaps?