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In 2023-24 local authorities will receive funding through the local government finance settlement of nearly £13.5 billion. Local authorities also have a range of revenue raising powers that are not available to other public services.

The Scottish Government’s policy towards local authorities’ spending is to allow local authorities the financial freedom to operate independently. As such, the vast majority of funding is provided by means of the block grant. It is then the responsibility of individual local authorities to manage their own budgets and to allocate the total financial resources available to them, on the basis of local needs and priorities, including with regards to climate adaptation, to having first fulfilled their statutory obligations and the jointly agreed set of national and local priorities.

While local authorities are responsible for setting their own budgets, the total funding provided by the Scottish Government will increase by over £793 million in 2023-24 compared with the 2022-23 budget. Decisions on budget allocations for future years are subject to negotiation with COSLA and the results will be confirmed as part of future Scottish Budgets.

By way of example £42 million is provided to local authorities annually for flood risk management, with an additional £150 million announced for investment over this Parliament. Additionally, £11.7 million for coastal change adaptation is available to support coastal local authorities over the course of this Parliament.

As set out in our Heat in Buildings Strategy (published in October 2021), the equivalent of 50,000 non-domestic buildings must convert to zero emissions heating by 2030 in order to meet our interim climate targets. We will therefore consult during 2023 on a Heat in Buildings Bill to phase out fossil fuel boilers in Scotland’s homes and buildings and move to clean heating systems.

Since the size and energy consumption of our non-domestic buildings varies considerably, we said in our 2022 Climate Change Plan Monitoring Report that we would adopt a more appropriate indicator based on fossil fuel heat demand. Converting the equivalent of 50,000 non-domestic buildings (existing in 2020) to zero emissions heat by 2030 would bring the commercial sector fossil fuel heat consumption to 5,000 GWh or less.

The latest data for fossil fuel heat consumption from the commercial sector was 11,170 GWh in 2020. We will develop our approach for this indicator as part of our Heat in Buildings Monitoring and Evaluation Framework, due later this year, and use that in future monitoring.

Ministers will continue to meet COSLA and individual local authorities on a regular basis to cover a range of issues, including adaptation to the impact of climate change.

The Scottish Government is committed to working with COSLA and SOLACE to agree a New Deal for Local Government in Scotland with the aim of providing greater flexibility over local funding, with clear accountability for delivery on shared priorities and outcomes, such as climate change.

In February, I wrote to COSLA setting out my view that tackling flooding remains a top priority for the Scottish Government and developing a level of resilience to our future flood exposure is one of our greatest climate challenges. The Scottish Government remains committed to improving flood resilience in Scotland, and it is imperative that we make best use of the resources already allocated for this. I have also encouraged COSLA to play an active part in consultation on new a flooding strategy for Scotland recognising how we can build community flood resilience and engage a broader range of delivery partners to deliver more diverse flood management actions faster. A joint Scottish Government/COSLA Flood Risk Management Working Group is considering funding arrangements for flood risk management actions going forward. Managing our exposure to floods and their impacts is a significant and growing challenge as climate change brings more severe and frequent flood events.

We are in discussion with COSLA and the Scottish Cities Alliance about the development of a framework between national and local government to agree shared actions and approaches to delivering climate change action, enabling better alignment between national and local targets and to jointly address the challenges and barriers to delivery.

The estimated number and percentage of domestic properties by Energy Performance Certificate (EPC) energy efficiency rating band are published in the ‘Scottish House Condition Survey (SHCS): Key Findings’ report.

The latest published data are available at: , which show that around 1.4 million dwellings, representing 55% of the housing stock had an EPC rating lower than Band C (based on the latest SAP 2012 EPC methodology).

The latest estimates are for 2019. Due to Covid-19 restrictions, the fieldwork for the 2020 SHCS was suspended in March 2020 and did not resume. The 2021 SHCS was also impacted and was undertaken using a non-contact approach. The results are not directly comparable to those from previous years and will be published as experimental statistics on 30 May 2023.

As set out in our Heat in Buildings Strategy (published in October 2021), the vast majority of the 170,000 off-gas homes and at least 1 million homes currently using mains gas, must convert to zero emissions heating by 2030 in order to meet our interim climate targets. We will therefore consult during 2023 on a Heat in Buildings Bill to phase out fossil fuel boilers in Scotland’s homes and buildings and move to clean heating systems.

The Scottish House Condition Survey (SHCS) is the main source for the number of domestic properties with low or zero emissions heating systems. Due to the Covid-19 pandemic, fieldwork for the 2020 SHCS was suspended and the methodology for the 2021 SHCS was also impacted. Future SHCS publications will provide more information to measure progress towards the heat transition.

The Scottish Government is committed to delivering a Net Zero, Wellbeing economy and a highly skilled workforce is critical to this ambition. Our National Strategy for Economic Transformation is clear that we must adapt our education and skills system to become more responsive and agile so that it can deliver on our key priorities.

Published in 2020, the Climate Emergency Skills Action Plan (CESAP) provides a framework for green skills planning and investment across priority sectors directly affected in the transition to net zero: Energy, Construction, Transport, Manufacturing and Agriculture and land-use.

Since 2019, Transport Scotland has been commissioning reports in each of the highest emitting transport sectors to identify the skills gaps and skills shortages. A number of these reports have already been published, and others are due to be published in Spring 2023. The findings will become the foundation for skills activity, delivered by partners across Scotland to support the decarbonisation of the transport sector.

Transport Scotland works closely with colleges across Scotland and the Energy Skills Partnership. Targeted investment has supported training equipment for battery and hydrogen vehicles and has been utilised by colleges across Scotland, including in more rural and remote communities. This support has led to over 120 college lecturers being up-skilled to deliver training, and over 350 technicians receiving training to date, with that number growing annually with Scottish colleges delivering courses to new students. This work will support the development of a Just Transition Plan for the Transport Sector.

I refer the member to the answer to question S6W-17264 on 4 May 2023. All answers to written Parliamentary Questions are available on the Parliament's website, the search facility for which can be found at /chamber-and-committees/written-questions-and-answers .

Due to the impact of the COVID-19 pandemic on the Scottish House Condition Survey, 2019 is the latest year for which we have National Statistics for this. From Table 5 of the latest Scottish House Condition Survey (published 1 December 2020), there were 312,000 domestic properties using low or zero greenhouse gas emissions heating systems.

I refer the member to the answer to question S6W-17263 on 4 May 2023. All answers to written Parliamentary Questions are available on the Parliament's website, the search facility for which can be found at /chamber-and-committees/written-questions-and-answers .

As stated in response to S6W-15209, the Interim Report of the Green Heat Finance Taskforce is due to be published in spring this year and will complement other publications which are also due, as per commitments in the Heat in Buildings Strategy (2021). This Interim Report will be published shortly.

The Interim Report will focus in on potential finance and funding solutions for individual property owners which address barriers and gaps identified by the Taskforce which constrain the uptake of existing products. This will be followed by a final report towards the end of the year which will focus on communal, or place based mechanisms, and will incorporate recommendations for the social housing sector.