Virgin Hotels Edinburgh will open its latest concept Eve on 7th October
Virgin Hotels Edinburgh, the luxury lifestyle hotel brand by Virgin Group founder Sir Richard Branson, announces its latest concept, Eve – an all-day dining space that will provide an array of food, beverages and entertainment.
The vibrant social space will officially open to the public on 7th October and is set to perfectly complement Edinburgh’s enviable food and drink scene from morning lattes to lights out. For those eager to get ahead of the crowd, reservations can now be made directly on the hotel’s website at www.virginhotels.com/edinburgh/dine-and-drink/eve/.
To celebrate the launch, Eve will be offering all guests 50% off food for every reservation made from 7th-29th October and will be putting on a variety of live entertainment seven days a week throughout the month.
Situated at ground floor level, with an entrance from Cowgate, Eve will hold up to 160 guests and is designed to be a playful environment to eat, drink and socialise in the heart of Edinburgh. With performance being at the core of the history of the Virgin brand, Eve will put on a diverse range of events showcasing the best of both Scottish and international culture.
From exclusive one-off activations that will firmly put Eve on the map to weekly intimate events including ‘Musical Mondays’, ‘On Demand’ and ‘Live & Unsigned’, there will be something for everyone to enjoy.
Alongside the lively entertainment, guests can order up a storm with a menu perfect for sharing with friends and family on any occasion whether it’s breakfast, brunch, lunch or dinner.
The menu caters to all tastes with everything from small plates – including beef brisket croquettes and Scottish salmon crudo – to large plates offering flat iron steak and charcuterie boards as well as a selection of juicy burgers, hearty sandwiches and refreshing salad bowls.
The interiors of Eve are like no other. The walls are adorned with floor-to-ceiling unique murals specifically curated by award winning Dutch graffiti artists, Studio Giftig, for the venue. Incorporating themes of space exploration, Scottish history, and Virgin legacy, these distinctive artworks create an immersive space that both celebrates and transcends the area’s rich history.
Opened until late, guests are encouraged to enjoy a post dinner cocktail from a range of bespoke creations all with locality in mind, helping to bring a sense of Scotland into each of the flavours.
From Park Bench Aperitivos such as Strong-Beau, a nod to the nation’s favourite fruity cider, to twists on classic cocktails such as the ‘Pin-Up’, a reimagining of the Pornstar Martini and East 8 Holdup, the cocktail menu brings some nostalgic flavours firmly into the 21st Century.
Eve is situated within the newly opened Virgin Hotels Edinburgh located in the landmark India Buildings in Edinburgh’s Old Town, a stone’s throw from Edinburgh Castle.
The hotel features 222 Chambers and Grand Chamber Suites and multiple dining and drinking outlets including Eve and Commons Club, all with their own unique space and distinct design.
The hotel site is home to a 19th century church, known as Greyfriars Hall, that is being beautifully restored and repurposed as a special event venue. In addition, the hotel will offer a rooftop sanctuary with unobstructed Edinburgh Castle views.
Scott McArdle, General Manager of Virgin Hotels Edinburgh, commented: “We have already started to see Virgin Hotels Edinburgh come to life over the last few months and Eve is going to add even more flavour to what we already offer.
“This vibrant and lively space will be at the heart of the city’s entertainment with fantastic food, unique cocktails and an array of performances – there really is something for everyone to enjoy.”
All guests can sign up for the brand-wide guest preferences and loyalty program ‘The Know’, which grants a personalised hotel experience that allows for access to room upgrades, member rates, special events and a complimentary cocktail hour in Commons Club – all when booking directly with Virgin Hotels.
All Chambers and Suites have integrated tech capabilities, which can control lighting, thermostats, TVs, and order room service directly via the mobile app, Lucy which is exclusively available to Know members.
Lucy also gives guests the ability to check in prior to arrival and can be used as an access key to their Chambers. Chambers are also pet friendly, with complimentary ‘pet-menities’ available, including dog beds and food and water dishes.
The hotel has been developed and is owned by Flemyn and managed by Virgin Hotels.
Reservations for the hotel are also open and can be made directly on the hotel’s websitewww.virginhotels.com/edinburgh.
Follow along on social media: Instagram @Eveedinburgh, Facebook @Evevhedinburgh
Thistles welcomes life-sized basking shark made from second hand electrical devices
Thistles shopping centre in Stirling has unveiled a new art installation, Betty the e-waste shark, which has been making a splash with shoppers.
Betty is a life-sized basking shark made entirely from second hand electrical devices including over 200 keyboards and water cooler panels that have been saved from landfill. Shoppers brave enough to stand at Betty’s mouth will see two projector lenses and TV screens showing a powerful film highlighting the enormous scale of e-waste that is shipped across seas every year.
The work of Edinburgh artist, Jonathan Elders, Betty was created to raise awareness of Scotland’s electronic waste problem. Designed to be engaging, it is also fully inclusive and accessible to people of any height or level of mobility.
For a limited time only before Betty continues her journey across the country, visitors are invited to interact and snap a picture with the striking sculpture located outside Muffin Break to learn about the growing problem of e-waste facing our country.
Gary Turnbull, Centre Director at Thistles, said: “We’re excited to have welcomed Betty into the centre as not only is it a fantastic sculpture, but it is also a great way to educate our shoppers on the problem of electronic waste which faces us all.
“At Thistles we have been putting a great focus on sustainability, how to cut down on all waste and the steps we can take to protect our planet. Our Wolf Pack Kids’ Club is something that we’ve been able to introduce into the centre, with the help of the Sustainable Supers, to get the next generation clued up on all things sustainable and reducing our carbon footprint.”
The instalment furthers Thistles’ focus on raising awareness about sustainability and reducing waste as its monthly Wolf Pack Kids’ Club continues. Hosted on the last Sunday of the month from February to November, each month centres around a unique theme around planet saving, kindness and sharing.
Wolf pack members will be able to see Betty the shark up close after the next, free of charge event on September 25. Children can take part in an interactive workshop to design, create and take home their very own garden windchimes as we celebrate the seasons and head into Autumn.
Thistles encourages all shoppers to catch Betty the e-waste shark while you can as she will be at the shopping centre for a limited time only.
To find out more and sign up for The Wolf Pack, please visit:
It’s the creepiest time of the year at Conifox Adventure Park where ghouls, ghosts, monsters and much more are gathering next month (October) for a haunt-tastic Halloween festival.
From Pumpkin Days and Nights to show-stopping Pumpkin Fireworks there is a whole lot of spine-tingling Halloween fun for all the family at Kirkliston just outside Edinburgh.
Pick the perfect pumpkin from the festive field and carve a masterpiece to take home. Show your dance moves in the monster mash disco. Get spooked by creepy characters in the haunted maze before playing some ghoulish games or firing a pumpkin slingshot.
Learn how to make fake blood and slippery slime with the Mad Scientist. For older kids, why not try and shoot some zombies in our Airsoft target range? Scare everyone silly with a face painting and enjoy the thrill of Taylor’s of Edinburgh Funfair rides. And that’s just the fun of Pumpkin Days!
Pumpkin Nights will feature all of the above plus the additional attraction of axe-throwing challenges, scare zones, stilt walker and an amazing fire performer lighting up the night. With a spectacular light display and Pumpkin Fireworks on 28th and 29th October by events specialists 21CC Group who promise a stunning extravaganza of light and sound.
James Gammell, Managing Director of Conifox Adventure Park, says: “Children and adults alike love the drama and fun of Halloween and this year it’s sure to be a scream at Conifox. Our ever-popular pumpkin patch is back with so much more added this year – and two nights of frightening firework fun.”
Pumpkin Day sessions run mornings and afternoons, every weekend next month from 8th to 30th October. Pumpkin Nights are held on Friday and Saturday evenings from 14th to 22nd October.
The Pumpkin Fireworks event is being staged on the evenings of Friday and Saturday, 28th to 29th October. For more information and to book tickets please visit www.conifox.co.uk/whats-on
Additional costs apply to some activities and access to the Adventure Park or Activity Centre is not included in Halloween Festival ticket
Smile Train and Kids Operating Room poised to launch Solar Surgery System
Global health NGOs, Smile Train and Kids Operating Room (KidsOR), have announced an ambitious plan to reduce the cost and carbon footprint of surgery, while increasing quality and patient safety, across low- and middle-income countries, starting in Africa.
After a successful four-month solar panel pilot program at a mock operating room in Dundee, where KidsOR is based, the two organizationsare moving forward to provide sustainable, reliable power to operating rooms in parts of Africa where the main power grid is unstable and power outages are common.
“This initiative aims to give consistent and reliable power to medical professionals in the operating room that will enhance patient care and safety while protecting much needed medical equipment that can be damaged when there’s a voltage irregularity with the main power grid,” said Susannah Schaefer, President, and Chief Executive Officer at Smile Train.
“We work closely with the team at KidsOR on hospital infrastructure projects and we asked them if they could develop a solution to this significant, multifaceted problem.”
Power cuts in African hospitals can severely impact on patient care with many hospitals suffering from hundreds of hours of power outage each month. In some cases, these power cuts last for days. Meanwhile, when they’re working at full capacity, operating rooms are a significant source of greenhouse gas production for hospitals.
To help tackle this dual challenge, Smile Train and KidsOR will begin implementing stand-alone solar battery support systems in pediatric operating rooms in Africa in 2023, with the first hospitals being identified now. Solar panels will be mounted on the roof of a facility, which will charge a battery unit capable of powering medical equipment in an operating room continually during daylight and for a further six hours after sunset.
Picking up the challenge to develop a surgery specific power system, Garreth Wood, chairman of KidsOR, responded: “Our team are experts at working in remote and challenging environments and we approached this with a view that we had to provide seamless power supply to the operating rooms of even the most remote hospitals.
“Our solution is a combination of solar systems with some new developments, some of which are so unique that we 3D print them for each project. We can now deploy a power unit that removes reliance on the national grid, requires no diesel generator back-up, reduces the carbon footprint of each operation, increases patient safety and integrates high tech activities like anaesthetic gas scavenging to even the world’s most remote hospital.”
The non-profits say their shared model is to strengthen the local healthcare system and give the local doctors tools and skills needed to care for their own population.
Garreth continued: “This unique solar surgery system makes the best possible care available to the most vulnerable and remote child. While improving health today, this partnership will also make sure we aren’t contributing to the climate change burdens of tomorrow.
Smile Train and KidsOR work together in countries around the world to increase capacity for safe pediatric surgery, including lifesaving cleft lip and palate surgeries.
About Smile Train:Smile Train empowers local medical professionals with training, funding, and resources to provide free cleft surgery and comprehensive cleft care to children globally. We advance a sustainable solution and scalable global health model for cleft treatment, drastically improving children’s lives, including their ability to eat, breathe, speak, and ultimately thrive. To learn more about how Smile Train’s sustainable approach means donations have both an immediate and long-term impact, please visit smiletrain.org.
About KidsOR: Kids Operating Room is a global health NGO that works directly with local surgeons and their teams across Africa and South America. Transforming hospital spaces into dedicated Operating Rooms for children’s surgery, we create child-friendly surroundings and provide surgeons with the specialist equipment they need to care for their nation’s children.
We also fund training of surgeons and anaesthesia providers and work with National Ministries of Health to develop sustainable healthcare services. www.KidsOR.org
New research has found that 29% of tradespeople in Edinburgh are exposed to asbestos every single year.
Ahead of Mesothelioma Awareness Day tomorrow (26th September), an event aiming to bring more attention to the dangers of asbestos, ElectricalDirectsurveyed trade workers from across the nation to see how often they encounter it, and the impact this has on their health.
The study found that 57% of tradespeople in Edinburgh have come across asbestos – the fibre-like material once used for insulation – in their working lives.
This has serious consequences, with 14% having had symptoms of an asbestos-related disease, or knowing a colleague who has.
Tradespeople are amongst the most at-risk workers of asbestos-related diseases, and across all industries, the majority are exposed to the potentially lethal material on a regular basis. Three in five (60%) find it every year, over a third (35%) say every month, and one in 12 (8%) come face to face with asbestos every day.
Tragically, one in 20 (5%) know someone who has died of such a condition, and every week, 20 tradespeople deaths are attributed to asbestos.
Some trades are more likely to be exposed than others, and so should be particularly cautious. Almost every carpenter (95%) questioned had some history with asbestos, and bricklayers (88%) are a close second.
The trades that are most likely to encounter asbestos are:
With such severe consequences, it’s important that tradespeople know the warning signs of the diseases, and consult a doctor straight away if any appear. Dr Rhianna McClymont, Lead GP at Livi, the digital healthcare provider, says that asbestosis causes a range of symptoms, including:
Persistent cough
Shortness of breath
Wheezing
Pain in the chest or shoulder
Tiredness Swollen or ‘clubbed’ fingertips
However, ElectricalDirect’s research found that the majority of UK tradespeople are unaware of these symptoms. When asked to identify the signs of asbestosis, almost two-thirds (64%) failed to select a persistent cough, and over half (55%) didn’t pick out shortness of breath.
Dr Rhianna explains more about the condition:
What is abestosis?
“Asbestosis is a chronic lung disease caused by breathing in large amounts of asbestos dust for a long time. The asbestos gets lodged in the lungs causing scarring around the air sacs (alveoli), which means oxygen can’t reach the bloodstream easily. The scarring leads to the lungs hardening, making it more difficult to breathe because the lungs cannot hold as much air as they used to.”
What causes it?
“The condition is caused by long-term exposure to asbestos, a material used in the past for cement, insulation, car parts, and some roof and floor tiles. The fibres in asbestos break down into little pieces when they’re damaged, released into the air and then breathed in. These fibres get stuck in the lungs, and over a long time, can cause permanent lung damage.”
Dominick Sandford, Managing Director at ElectricalDirect, said: “Despite being banned in the UK in 1999, asbestos is a still a real issue in the industry, and it’s awful that so many tradespeople die from related diseases every year.
“Some people might not experience symptoms for decades after their exposure to the material, so it’s important that individuals remain vigilant, and see a doctor immediately if they spot any signs.”
In its report, the Committee highlights substantive differences between the views of the UK Government and the Scottish and Welsh Governments regarding future alignment with EU law.
The Committee’s report makes clear that these differences raise fundamental constitutional questions including the extent the UK can accommodate four different regulatory environments within a cohesive internal market, as well as whether the existing institutional mechanisms are sufficient to resolve differences between the four governments within the UK when there are fundamental disagreements regarding alignment with EU law.
The Committee is concerned with how devolution needs to evolve to address these questions. This includes the operation of the Sewel Convention which the Committee agrees is under strain following Brexit and the extent of UK Ministers’ new delegated powers in devolved areas which the Committee agrees amounts to a significant constitutional change.
The report states there is a need for a much wider public debate about where power lies within the devolution settlement following the UK’s departure from the EU. This needs to address the extent of regulatory autonomy within the UK internal market.
Committee Convener, Clare Adamson MSP said: ““As a Committee, we have already set out our concerns about the risks for devolved Parliaments as a result of Brexit. But the questions raised in our report make it clear that there are fundamental issues which must be addressed urgently.
“Without wider debate, both in this Parliament and elsewhere, these fundamental questions will go unresolved, and the way devolution works outside of the EU will remain uncertain.”
Deputy Convener, Donald Cameron MSP said: “Our committee is agreed that there is a need for a wide debate on the very serious and complex issues raised in our report.
“However, this debate is not simply one for Governments and Parliaments, but businesses, civic society and the wider public as well in order that we can fully explore the current issues facing not just the Scottish Parliament, but the wider devolution process.”
Dentists have warned that the Scottish Government’s last-minute extension of financial support for NHS practices must go hand in hand with meaningful reform to avert a crisis in the service.
A new ‘bridging payment’ will replace the current ‘multiplier’ set to expire on 1 October, uplifting NHS fees a rate of 1.2 for the next three months, falling to 1.1 for the period up to April 2023.
The Cabinet Secretary had previously told the BDA that the multiplier – which at its current level increased NHS fees by 1.3 – had not been included in the Scottish Government’s budget forecasting. The professional body has not ceased reminding officials that without an adequate interim funding package several key treatments including extractions, and anything – like dentures – that requires laboratory work, risk being delivered at a financial loss.
The BDA stress that the new support package cannot presage a return to ‘business as usual’ from April 2023. Dentist leaders stress that in the months ahead efforts must be made to deliver needed change to the broken high volume/low margin model NHS dentistry is based on. Without reform, this package will simply delay an inevitable exodus of dentists from the NHS that is already evident in other UK nations.
While COVID emergency measures have been withdrawn, dentistry in Scotland has not returned to anything resembling pre-pandemic norms, with practices continuing to work under capacity in the face of an historic backlog. Latest figures indicate 261,537 claims were made by dentists delivering NHS treatments in July 2022, less than 60% of the number made in the same month in 2019.
Recent research by the BBC indicated 9 in 10 practices UK-wide were unable to take on new adult patients. In Scotland figures stood at 82%, the multiplier likely playing a decisive role.
David McColl, Chair of the British Dental Association’s Scottish Dental Practice Committee said:“The Scottish Government seem to have recognised the wholesale inadequacy of the funding model for NHS dentistry.
“It’s not rocket science. Without additional support, the basics of NHS care – from extractions to dentures – would have been delivered at a loss. No business can operate on that basis.
“We now need some serious long-term thinking. Unless Ministers are prepared to revisit the system this service is built on, this funding will amount to sticking plaster on a gaping wound.
“If this is just delaying the return to a broken ‘business as usual’ then millions of patients stand to lose out.”
FRIDAY’S ‘fiscal event’ contained some of the most substantial tax policy changes seen in recent decades (writes Fraser of Allander’s DAVID EISER). Combined with last week’s announcements on the Energy Price Guarantee and Energy Bill Relief Scheme, this constitutes a huge change in the fiscal outlook.
In this context, the decision not to involve the Office for Budget Responsibility (OBR) is irresponsible. It might be billed as a ‘Growth Plan’, but today’s announcements are a budget in all but name. The OBR plays an essential role in scrutinising tax and spend forecasts, assessing the likely impact of policy announcements on growth, the deficit and debt. Its exclusion from the process weakens transparency around the impacts of the proposals.
The new Chancellor (above) used the first part of his speech to reiterate the government’s unavoidably large interventions in the energy market to protect households and businesses from energy price rises. In the remainder of the speech he announced a host of measures designed to stimulate economic growth through a combination of tax cuts and regulatory changes.
Tax changes – implications in Scotland
There were two ‘tax cuts’ that are more accurately described as reversals in recent or planned increases.
A planned increase in the Corporation Tax rate from 19% to 25% will now not go ahead. The Treasury estimates this will cost £12bn in reduced revenue compared to its previous plans in 2023/24, and more in subsequent years.
The Health and Social Care Levy has also been scrapped, together with the 1.25% increase in dividend tax rates. These changes will cost almost £18bn in reduced revenues in 2023/24 compared to previous plans.
Both of these changes had been pre-announced and apply UK-wide.
The big surprises came on income tax. Here the government announced the biggest reforms (at UK level) since 2009.
The basic rate will be reduced from 20p to 19p one year earlier than expected, applying from April 2023 rather than April 2024.
The 45p additional rate will be abolished in April 2023.
Income tax changes and implications for Scotland
Of course, with income tax being devolved, neither of the changes will apply in Scotland. Instead, the Scottish Government will see a smaller reduction in its block grant next year than it was expecting, boosting the resources available to it in 2023/24 (the reduction to the Scottish Government’s block grant is broadly designed to reflect what the UK government would have raised from income tax in Scotland if income tax had not been devolved, and if the UK government income tax policy had continued to apply in Scotland).
In the context of this additional resource through its block grant, the Scottish Government will then need to decide whether and how to respond through its own tax policy.
It could of course keep Scottish tax policy unchanged. This would enable it to use its additional block grant to invest in public services in Scotland. The cost of it doing this politically would be that the gap between Scottish and rUK tax policy would widen substantially. Almost all Scottish income taxpayers would pay more income tax than they would in rUK. A Scottish taxpayer with an income of £29,000 would face liabilities around £160 higher. A Scottish taxpayer with an income of £50,000 would face liabilities almost £2,000 higher (Chart 1, black line).
Chart 1: Potential difference in income tax liability between Scotland and rUK, in 2023/24
Alternatively the Scottish government could mirror UK tax cuts with tax cuts of its own. It could for example decide to reduce the starter, basic and intermediate rates by 1p. This would broadly retain the difference in tax liability for individuals between Scotland and rUK at current levels (Chart 1, grey line). It would allow the Scottish Government to retain its treasured mantra that ‘the lowest income half of Scottish taxpayers pay less tax than they would in rUK’. But such a policy would cost the Scottish government around £400m in foregone revenues.
Other policy decisions are possible. The Scottish government could decide to cut just the starter and basic rates in Scotland, rather than the intermediate rate as well, at a revenue cost of around £250m.
How the Scottish Government responds to the UK Government’s abolition of the Additional Rate will also be interesting. The Scottish Fiscal Commission is likely to forecast that abolition of the Additional Rate wouldn’t be extremely costly in revenue terms (there are expected to be around 22,000 Additional Rate taxpayers in Scotland in 2023/24 so charging them a few pence less tax on their income above £150k might not have a significant affect in aggregate, particularly if it is assumed, as the SFC will, that the tax reduction will induce some element of a positive behavioural response).
The Additional Rate policy therefore puts the Scottish Government in a difficult political position. If it retains the Additional Rate it will be accused of undermining the ‘competitiveness’ of the Scottish economy, for little direct revenue gain (without any changes to existing policy, a taxpayer with an income of £200,000 would face an additional £5,900 in income tax liabilities in Scotland compared to an equivalent taxpayer in England).
But abolition of the Additional Rate would provide a significant tax cut for the highest income 0.5% of the Scottish adult population (an individual with income of £200,000 would be better off to the tune of £2,500 if the Additional Rate is abolished). The regressivity of a cut to the top rate in Scotland is difficult to reconcile with the Scottish Government’s aspirations for progressivity.
Stamp Duty changes and implications for Scotland
The Chancellor also announced changes to Stamp Duty in England and NI, amounting to an increase in the threshold at which Stamp Duty applies to residential transactions.
As with income tax, these changes will not apply in Scotland. As with income tax, the changes to English policy will pose dilemmas for the Scottish Government when considering its policy on the Land and Buildings Transaction Tax.
The Scottish Government has until now set LBTT in such a way that homes sold in Scotland for less than around £335,000 pay less tax than an equivalent property in England. Above this price, transactions in Scotland face noticeably higher tax liabilities. The changes announced by the UK government today mean that – if there are no changes to the existing Scottish LBTT rates – all property transactions in Scotland would face higher tax liabilities than they would in England (see Chart 2).
The Stamp Duty cuts in England will generate some additional resources for the Scottish Government via its block grant. In ballpark terms the increase in resource might be around £80m. It could use this additional resource to fund public services, or to cut LBTT rates in order to maintain existing tax differentials.
Chart 2: Residential property transactions tax liabilities in Scotland and England
Investment zones – an option for Scotland but at what cost?
The UK government announced the establishment of several dozen ‘investment zones’. It is hoped that these zones will ‘drive growth and unlock housing… by lowering taxes and liberalising planning frameworks’.
Policies implemented within the investment zones will include business rate reliefs for newly occupied or expanded premises, and stamp duty relief on land bought for commercial purposes, and a zero-rate of employer National Insurance Contributions for new employees earning below £50,270.
The hoped-for impacts of these investment zones on UK-wide economic activity – as opposed to their effect on displacing economic activity within parts of the UK – is based more on hope than on empirical evidence.
Several dozen potential zones have been identified in England. The UK government says that it will work with the Scottish government and local authorities to identify zones in Scotland.
What is not yet clear is how the costs of investment zones in Scotland – in the form of reliefs on business rates and stamp duty (which are devolved) and NICs reliefs (which are not devolved) – will be distributed between the Scottish and UK governments. The Treasury’s costing document does not seem to give an indication of the funding associated with the planned investment zones in England, so it is difficult to get a sense of the fiscal scale of these interventions at this stage.
U-turn on IR35
In another regulatory reform design to unlock growth, the chancellor announced the repeal of the anti-avoidance legislation commonly known as IR35. This legislation was designed to reduce so-called “disguised employment”, whereby workers could work long-term for businesses as self-employed contractors rather than employees – and in so-doing reduce the tax liabilities faced by both themselves and the company that they were contracted to.
The IR35 regulations were introduced for public authorities in 2017, and for medium and large enterprises in 2021. The regulation has big impacts on the nature and shape of the workforce in particular sectors.
The introduction of IR35 has been a huge undertaking by public authorities and corporations to ensure compliance with the legislation, so the change announced today is a big deal. It is a shame that we don’t have the view of the OBR of the impact this could have on Income Tax and National Insurance Contributions: but the costing published today by the Treasury suggests it could cut tax receipts by £1.1 billion in 2023-24, rising to £2 billion by 2026-27.
The Energy profits levy – the existing windfall tax
Interestingly, although the Prime Minister has made it clear that additional windfall taxes were not going to be introduced on oil and gas companies, we need to remember that the Energy Profits Levy announced in May is still in place.
This is a 25% additional surcharge on the extraordinary profits that are being made by the oil and gas companies. When it was announced in May, it was expected that this could raise £5 billion this year, although there was a great deal of uncertainty about this.
Under current plans this levy will remain in place until December 2025, and on the basis of the costings published today, the Government has no plans to end it early. The policy is now forecast to raise £28 billion over the next 4 years (including this year). This is another area of costing that it would be particularly useful to get independent scrutiny from the OBR.
Summary: a gamble on growth with long odds
It is undeniably the case that the UK (and Scottish) economies have been characterised for the last 15 years by very weak growth. This has resulted in stagnation in household incomes and living standards, and constrained the growth of government revenues – with implications for investment in public services.
It makes sense therefore for the government to put the objective to raise economic growth at the centre of its strategy. But setting a 2.5% annual growth target, as the UK government has done, is much easier said than achieved.
The government’s decision to reverse the Health and Social Care Levy and cancel the planned Corporation Tax increases merely take policy back to where it has been in the recent past. It is a return to orthodoxy rather than a break from the norm, and in this sense it is difficult to see that it will make any difference to growth.
The substantial cuts to income tax do represent a bigger change to existing policy. But the hope that these will stimulate the economy is based more on blind faith than on any tangible evidence. There is no evidence internationally that countries with lower tax rates grow more quickly. Historically, UK growth rates were highest when tax rates were higher.
Whether today’s announcements unleash economic growth remains very much to be seen. Strikingly, what there was no mention of today was any plans for additional public sector investment. Despite the government’s rhetoric about reforming the ‘supply-side’ of the economy, there was little mention of the role that the skills and health of the population play in influencing the capacity of the economy to grow.
Whilst the government seems comfortable borrowing an additional £30bn or so a year to fund the tax cuts announced today, and is apparently relaxed about an over-growing burden of national debt, the path set out today will constrain the government’s room for manoeuvre on investment in public services in coming years.
At a time when parts of the public sector are struggling to deal with the legacy of the pandemic and other longstanding challenges, the implied prioritisation of tax cuts over public services investment will prove highly contentious, particularly given the regressivity of the cuts.
Households in the top 10% of the income distribution in Scotland will be better off by around £24 per week on average as a result of the cancellation of the Health and Social Care Levy, whereas those in the middle of the distribution will be only £4 per week.
The hope that the policies announced on Friday will boost growth and hence revenues despite cuts in tax rates is a big gamble with long odds.
The City of Edinburgh Council is to write to the Scottish and UK Governments to request emergency and long-term funding to address the scale of Edinburgh’s housing pressures.
It follows a decision taken by the Council this week (Thursday 22 September) to consider freezing tenants’ rents for a third year in a row, in response to the cost of living crisis. The Council Leader will also write to the Scottish Government requesting that the rent freeze across private and social rented homes is maintained until rent controls are in place in Edinburgh.
Moving the motion, the Housing, Homelessness and Fair Work Convener Councillor Jane Meagher described the option of another rent freeze as “a humane response to a massive debt crisis where people are facing the toughest financial squeeze of their lifetimes.”
Instead of a rent consultation, the Council will invite tenants to share views on the financial challenges they are facing in relation to the cost of living crisis – including rent, food, energy and insulation – which will involve tenants’ representatives and inform the work of the Edinburgh Partnership and Poverty Commission.
Officers have also been asked to bring a report to a meeting of the Housing Homelessness and Fair Work Committee on the implications of a rent freeze for council tenants in 2023/24, the subsequent impact of this freeze on the Housing Revenue Account over the next three years, with a detailed financial strategy.
Cllr Meagher said: “We are all in the grip of a cost of living crisis but it is our most vulnerable residents who are on the frontline. Elderly people, those with young families, residents who are ill – many tenants are already facing extreme financial hardship and are struggling at supermarket tills and with their energy bills.
“We shouldn’t need to add the unbearable burden of a rent rise to that, and we must provide a level of continuity in these uncertain times. It is a difficult decision to take, however, because the money paid by tenants in their rents pays for our Housing Service and enables us to borrow money to improve Council homes and build new affordable housing.
“With construction costs also rising – and without additional support from government – keeping rents the same will without a doubt make our newbuild programme very challenging.
“I’d like to thank Living Rents for joining our Council meeting to highlight the challenges which lie before us. Council Leader Cammy Day will now detail the scale of Edinburgh’s housing crisis to government, requesting both emergency and long-term funding to allow us to purchase and build more homes for social rent.”
