Self-employed individuals and landlords will have more time to prepare for Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA), following announcement by the UK Government yesterday.
Understanding that self-employed individuals and landlords are currently facing a challenging economic environment, and the transition to MTD for ITSA represents a significant change to taxpayers and HMRC for how self-employment and property income is reported, the government is giving a longer period to prepare for MTD. The mandatory use of software is therefore being phased in from April 2026, rather than April 2024.
From April 2026, self-employed individuals and landlords with an income of more than £50,000 will be required to keep digital records and provide quarterly updates on their income and expenditure to HMRC through MTD-compatible software. Those with an income of between £30,000 and £50,000 will need to do this from April 2027. Most customers will be able to join voluntarily beforehand meaning they can eliminate common errors and save time managing their tax affairs.
The government has also announced a review into the needs of smaller businesses, and particularly those under the £30,000 income threshold. The review will consider how MTD for ITSA can be shaped to meet the needs of these smaller businesses and the best way for them to fulfil their Income Tax obligations. It will also inform the approach for any further roll out of MTD for ITSA after April 2027.
Mandation of MTD for ITSA will not be extended to general partnerships in 2025 as previously announced. The government remains committed to introducing MTD for ITSA to partnerships in line with its vision set out in the Tax Administration Strategy.
Victoria Atkins, Financial Secretary to the Treasury, said:“It is right to take the time to work together to maximise the benefits of Making Tax Digital for small businesses by implementing the change gradually.
“It is important to ensure this works for everyone: taxpayers, tax agents, software developers, as well as HMRC.
“Smaller businesses in particular should be able to experience the benefits of increased digitalisation of Income Tax in a way which meets their needs. That is why we are also today announcing a review to establish the best way to achieve this.”
Jim Harra, Chief Executive and First Permanent Secretary, HM Revenue and Customs, said:“HMRC remains committed to the delivery of Making Tax Digital as a critical part of our strategy for digitalising and modernising the tax system, but we want to make sure we get this right and deliver it effectively.
“A phased approach to mandating MTD for Income Tax will allow us to work together with our partners to make sure that our self-employed and landlord customers can make the most of the opportunities this will bring.”
The announcement relates to MTD for ITSA only. Making Tax Digital for VAT has already been implemented and is demonstrating the benefits to businesses and the tax system of digital ways of working.
The whole trade union movement stands ready to defend workers’ fundamental right to strike, writes TUC’s KATIE STILL.
The right to strike is a fundamental British liberty
Exercising the right to strike when negotiations break down is a fundamental British liberty. It’s not one that workers ever use lightly.
Going on strike in the UK today means getting past tough legal restrictions, including winning a ballot conducted by post. It also means losing pay for the days you’re on strike.
But when employers won’t negotiate, exercising the right to strike can be the only way to bring them back to the table.
But it’s under attack from a Tory government that’s run out of ideas
The strikes this winter are the symptom of a broken economy. We’ve experienced the longest pay squeeze since Napoleonic times, with workers losing out on £20,000 worth of wages due to pay not keeping up with prices since 2008. And exploitative bosses like those at P&O Ferries are getting away with treating their workers like disposable labour.
But rather than getting round the table to negotiate a fair resolution of disputes, and setting out a plan to get pay rising, ministers are making vague threats to the right to strike.
In October government attacked transport workers through a proposed law mandating minimum service levels – but it’s not clear whether this has now been dumped. And ministers keep telling the media that they are proposing “tough” new laws – but they haven’t published any proposals.
The UK already has some of the most restrictive trade union laws in the world – but workers have been pushed into action by a government and employers that won’t listen. You can’t legislate away the depth of anger workers feel about how they’ve been treated.
The trade union movement stands ready to defend the right to strike
Working people and their trade unions want to negotiate a fair resolution to the current disputes. Ministers and employers should talk to unions about our demands for better pay and fairer working conditions. That’s our priority.
But if ministers want to use workers as a political football, the whole trade union movement will be united in defending the right to strike.
And make no mistake: we will fight hard. Any new restrictions are likely to be in breach of the UK’s commitments under international law. Ministers don’t have a mandate for new curbs on the right to strike from the manifesto they were elected on.
Working people across the country just want a fair day’s pay for a fair day’s work. It’s time for a government that puts them first.
Last week the High Court granted permission for a legal challenge – brought by eleven trade unions, coordinated by the TUC and represented by Thompsons Solicitors LLP – to protect the right to strike.
The unions – ASLEF, BFAWU, FDA, GMB, NEU, NUJ, POA, PCS, RMT, Unite and Usdaw – have taken the case against the government’s new regulations which allow agency workers to fill in for striking workers.
The challenge will be heard along with separate legal cases launched by TUC-affiliated unions UNISON and NASUWT against the government’s agency worker regulations, which have also been given the green light by the High Court. A hearing will be held from late March onwards.
The unions come from a wide range of sectors and represent millions of workers in the UK.
The TUC says the move is a “major blow” to government attempts to undermine workers’ right to strike for better pay and conditions.
With industrial action taking place across the economy after years of declining real pay and attacks on working conditions, reports suggest the government is considering new ways to restrict workers’ right to strike.
In addition to the agency worker regulations brought in last summer, ministers are already pushing through legislation on minimum service levels in transport – with the bill due for its second reading in the new year.
In threatening the right to strike, the TUC has accused the government of attacking a fundamental British liberty and making it harder for working people to bargain for better pay and conditions in the middle of a cost of living crisis.
Unlawful agency worker regulations
The unions argue that the regulations are unlawful because:
The then Secretary of State for business failed to consult unions, as required by the Employment Agencies Act 1973.
They violate fundamental trade union rights protected by Article 11 of the European Convention on Human Rights.
The change has been heavily criticised by unions, agency employers, and parliamentarians.
The TUC has warned these new laws will worsen industrial disputes, undermine the fundamental right to strike and could endanger public safety if inexperienced agency staff are required to fill safety critical roles.
The Recruitment and Employment Confederation (REC), which represents suppliers of agency workers, described the proposals as “unworkable”.
The Lords Committee charged with scrutinising the legislation said “the lack of robust evidence and the expected limited net benefit raise questions as to the practical effectiveness and benefit” of the new laws.
The TUC recently reported the UK government to the UN workers’ rights watchdog, the International Labour Organization (ILO), over the recent spate of anti-union and anti-worker legislation and proposals, including the government’s agency worker regulations, which it says are in breach of international law.
TUC General Secretary Frances O’Gradysaid: “The right to strike is a fundamental British liberty. But this government seems hellbent on attacking it at every opportunity.
“Threatening this right tilts the balance of power too far towards employers. It means workers can’t stand up for decent services and safety at work – or defend their jobs and pay.
“With inflation above an eyewatering 11%, ministers are shamelessly falling over themselves to find new ways to make it harder for working people to bargain for better pay and conditions.
“And these attacks on the right to strike are likely illegal. Ministers failed to consult with unions, as the law requires. And restricting the freedom to strike is a breach of international law.
“That’s why unions are coming together to challenge this change in the courts.
“Working people are suffering the longest and harshest wage squeeze in modern history. They need stronger legal protections and more power in the workplace to defend their living standards – not less.”
Richard Arthur, Head of Trade Union Law at Thompsons Solicitors, which represents the TUC-coordinated unions, said: “This is a timely reminder that the government is not above the law when it tries to restrict the rights of working people to take industrial action.
“The Court has agreed with the trade unions that the government’s decision-making should be scrutinised against UK and international legal standards at a hearing to take place from late March onwards.”
The Mortgage Guarantee Scheme will be extended by a year, having already helped over 24,000 households get onto the property ladder. Launched in April 2021, the scheme supports first-time buyers, who make up 85% of scheme transactions, buy a home with a 5% deposit. The scheme is just one of the ways the government is helping people with home ownership. The Mortgage Guarantee Scheme will be extended by a year to the end of December 2023, helping people with 5% deposits on to the property ladder.
Under the scheme the government offers lenders the financial guarantees they need to provide mortgages that cover the other 95%, subject to the usual affordability checks, on a house worth up to £600,000.
Launched in April 2021, the scheme has already helped over 24,000 households. It was originally planned to close at the end of this year but will now be extended until the end of 2023.
Chief Secretary to the Treasury, John Glen MP said:
“For hard-working families facing today’s challenging economic conditions, it’s right that we continue to help them secure their first home or move into their dream house.
“Extending this scheme means thousands more have the chance to benefit, and supports the market as we navigate through these difficult times.”
Since 2010, more than 687,000 households have been helped into home ownership through government schemes. First time buyers often find it hard to save for a large deposit, and the mortgage guarantee has helped over 24,000 households (as of November 2022) overcome this barrier and secure the keys to a new home with a deposit as small as 5%.
As well as first time buyers and current homeowners, the scheme has also helped support the wider housing sector. Lenders reduced the availability of high LTV products during the Covid-19 pandemic, with just eight 95% LTV products available in January 2021. The government’s Mortgage Guarantee Scheme helped restore competition and consumer choice to the market, which has benefited businesses and boosted the market.
To also support people to get onto the property ladder, the government has increased the level where first-time buyers start paying stamp duty from £300,000 to £425,000. Furthermore, first-time buyers can get relief on properties costing up to £625,000, as opposed to £500,00 previously. Both of these measures are time-limited to April 2025.
The government has also continued to provide a range of other options to support home ownership and the wider housing sector. For example, the Help to Buy ISA and Lifetime ISA have collectively facilitated over 618,000 households get on to the property ladder
The Mortgage Guarantee Scheme will be extended by a year, having already helped over 24,000 households get onto the property ladder.Launched in April 2021, the scheme supports first-time buyers, who make up 85% of scheme transactions, buy a home with a 5% deposit.The scheme is just one of the ways the government is helping people with home ownership.
The Mortgage Guarantee Scheme will be extended by a year to the end of December 2023, helping people with 5% deposits on to the property ladder.Under the scheme the government offers lenders the financial guarantees they need to provide mortgages that cover the other 95%, subject to the usual affordability checks, on a house worth up to £600,000.Launched in April 2021, the scheme has already helped over 24,000 households. It was originally planned to close at the end of this year but will now be extended until the end of 2023.Chief Secretary to the Treasury, John Glen MP said:“For hard-working families facing today’s challenging economic conditions, it’s right that we continue to help them secure their first home or move into their dream house.“Extending this scheme means thousands more have the chance to benefit, and supports the market as we navigate through these difficult times.” Since 2010, more than 687,000 households have been helped into home ownership through government schemes. First time buyers often find it hard to save for a large deposit, and the mortgage guarantee has helped over 24,000 households (as of November 2022) overcome this barrier and secure the keys to a new home with a deposit as small as 5%.As well as first time buyers and current homeowners, the scheme has also helped support the wider housing sector. Lenders reduced the availability of high LTV products during the Covid-19 pandemic, with just eight 95% LTV products available in January 2021. The government’s Mortgage Guarantee Scheme helped restore competition and consumer choice to the market, which has benefited businesses and boosted the market.To also support people to get onto the property ladder, the government has increased the level where first-time buyers start paying stamp duty from £300,000 to £425,000. Furthermore, first-time buyers can get relief on properties costing up to £625,000, as opposed to £500,00 previously. Both of these measures are time-limited to April 2025.The government has also continued to provide a range of other options to support home ownership and the wider housing sector. For example, the Help to Buy ISA and Lifetime ISA have collectively facilitated over 618,000 households get on to the property ladder
Social security spending will increase to more than £5.1 billion per year through the 2023-24 Budget, supporting around a million people and helping to drive progress towards Scotland’s long term aim of eradicating child poverty.
The centrepiece of this investment is the Scottish Child Payment, which has been increased to £25 per child per week, a 150% increase since April 2022. It is now available to all eligible under 16s – around 387,000 children.
All other Scottish benefits will be uprated in April 2023 by 10.1%, at a cost of £428 million and the Scottish Welfare Fund has been maintained at £41m.
Total spending on social security will be more than £770 million above the funding received for social security through the UK Government Block Grant Adjustment.
The Budget also includes:
£84 million for Discretionary Housing Payment to mitigate directly the impact of UK Government policies including the bedroom tax and benefit cap
£752 million for the affordable housing supply programme to ensure continued delivery of high quality, affordable homes across Scotland which can contribute to tackling inequality and child poverty
Social Justice Secretary Shona Robison said: “Through this Budget we are taking bold action to address the deep inequalities in our society – putting more money in people’s pockets today and working to eradicate child poverty in Scotland.
“Despite the challenging financial position and the corrosive effect of UK Government economic mismanagement and soaring inflation on our budget, our child poverty targets remain ambitious. That is why we are choosing to invest significantly more in social security than the funding we receive from Westminster and helping to mitigate the damaging impact of UK Government welfare cuts.
“The many fair and progressive decisions in this Budget – including funding for housing, education and transport – will help to deliver long-term, structural change as we continue to work with local government colleagues and our partners in the third sector to tackle poverty and support all of Scotland’s families to thrive.”
The 2023-24 Budget will tackle child poverty by:
Forecast investment of £5.1 billion in social security including devolved benefits and the Scottish Welfare Fund
Delivering continued investment in the Scottish Child Payment, increased to £25 per week from November 2022 – one of five family benefits, four of which are only available in Scotland
Uprating all other Scottish benefits in April 2023 by September CPI (10.1%)
Investing £752 million in the affordable housing supply programme
Providing £80 million of capital funding to support the expansion of free school meals
Providing £20 million to extend the Fuel Insecurity Fund into 2023‑24 – a lifeline against rising energy prices
Continuing to invest in employability programmes that prioritise people who face complex barriers to accessing the labour market, including parents
Continuing to invest around £1 billion in high quality early learning and childcare provision, with a further £42 million invested in holiday food provision and expanding our support for school age childcare.
Providing £50 million for the whole family wellbeing programme and a further £30 million to #KeepThePromise to care experienced children and young people
Increasing spend on concessionary travel schemes, providing access to free bus travel for over 2 million people, including all under 22 year olds.
Maintaining £200 million annual investment in the Scottish Attainment Challenge to increase the pace of progress on closing the poverty‑related attainment gap.
Responding to the Scottish Budget, Director of the Child Poverty Action Group (CPAG) in Scotland, John Dickie, said: “The use of this Budget to invest in children and double the new Scottish child payment is absolutely the right thing to do.
“It really is a big step forward on the path to meeting Scotland’s child poverty targets. The increased payment will be welcomed by families across the country who are currently facing impossible choices trying to make ends meet as universal credit cuts bite, energy prices soar and the wider costs of living rise. They will spend the extra cash in local shops and businesses, helping to drive economic recovery.
“More action will be needed in the years ahead to ensure child poverty targets are met and every child grows up with adequate resources to give them a decent start in life.
“As a country we must build on today’s Budget breakthrough and continue to invest in the social security, childcare, decent jobs, housing and local public services that are critical to families.”
New artwork celebrates 50+ swimmers in Scotland’s East Coast communities
Fife-based artist Joanna van den Berg will embark upon a new two-year art project inspired by the lure of coastal swimming thanks to National Lottery Funding through Creative Scotland’s Open Fund.
Developed in collaboration with swimmers, coastal artists and communities, Joanna will develop a series of mixed-media artworks, with a companion collection of writing and images.
This new project titled IMMERSE will take the form of a tribute, exploration and celebration of the growing numbers of ‘feisty 50+ers, women in particular’, whose lives, well-being and sense of solidarity have been galvanised through regular immersion in Scotland’s seas, lochs, rivers and reservoirs.
As one of many who started wild swimming during the Covid pandemic, artist Joanna van den Berg has drawn inspiration from the physical and emotional impact of this directly immersive encounter with the landscape. In Joanna’s own words, ‘the act of transitioning from land to water; the shock, the fear, the exhilaration.’
IMMERSE will host a series of exhibition/gathering events in coastal venues, aiming to produce a companion publication/anthology of text and images for wider distribution by December 2024. News on these, along with call-outs for contributors and regular updates on the project, will be available on an IMMERSE Instagram/Facebook channel from January 2023.
Artist Joanna van den Bergsays: “I’m delighted to have been awarded Open Project funding for IMMERSE, a project to create visual narrative for the emotional and physical lure of wild, coastal and tidal pool swimming.
“I’ll be developing work that draws directly from the stories and experiences of swimmers in Scotland’s East Coast communities.
“Much of my work is bound in transitions between land and water, lost and found, known and unknown, and is increasingly underpinned by my experience of aging.
“I am one of an armada of wild swimmers (many of whom are older women) with a newfound and directly immersive relationship with the landscape. I’m particularly interested in the correlation of wild swimming with age-related changes to our bodies, lifestyle and social autonomy.”
The project is one of 69 projects receiving a total of £1,197,933 National Lottery funding in this latest round of Creative Scotland’s Open Fund awards.
A new album from acclaimed Glasgow-based folk band Gnoss.
Look To the Rainbow – the first biography of the Scots-born singer, actress and entertainer Ella Logan from Alison Kerr.
A new duo album fromLouise Dodds and Elchin Shirinov comprised of traditional Scottish Folk Songs and interwoven with influences of both jazz and Azerbaijani folk music.
The Party Shrimp – an interactive, outdoor, visual walkabout performance for children (5+), families from Adrenalism.
A Scotland-wide series of exhibitions, talks and workshops engaging audiences in the story of Bernat Klein, a Serbian born designer whose career based in the Scottish Borders spanned six decades.
Paul Burns, Interim Deputy Director of Arts & Engagement at Creative Scotlandsaid: “As the year draws to a close, we are once again inspired by the range of exciting new projects that have received Open Fund support.
“The diversity and scope of these projects is reflective of our society as a whole, and we hope that these projects will continue to enrich the lives of people of all ages in Scotland in 2023 and beyond.”
Helping to spread some festive cheer, leading social enterprise, Places for People hosted a fabulous Christmas event at The Engine Yard in Edinburgh last week to continue its support of the NE Edinburgh Food Bank run by the Trussell Trust.
This is one of seven food banks operated across North-West, Central and East Edinburgh, which in total provided 1,059 meals in September 2022. Over half a ton of food was donated (worth approximately £2,500) along with £200 in cash thanks to the generosity of The Engine Yard residents, the Places for People developments’ team and on-site subcontractors.
This generous donation will help the foodbank to provide emergency food parcels to individuals, families and children who are most in need during the festive period.
Residents from The Engine Yard flocked next door to Grace Church, along with colleagues from Port of Leith Housing Association, Scottish Futures Trust, RMG and Greg Reed Group CEO for Places for People where they enjoyed a selection of tasty seasonal treats from the delicious Embo Deli.
Revellers meandered through Christmas-inspired craft stalls and residents got into the festive spirit by sporting their favourite Christmas jumpers for the chance of winning a prize.
Kevin Bunyan, Senior Site Manager at The Engine Yard, for Places for People comments:“I would like to express my special thanks to the Grace Church and our Sales Team for organising a fun afternoon where food and drink were given out to local residents who have also kindly donated to the food bank this year.
“The Engine Yard has supported the Edinburgh NE Foodbank for many years, with donations from Places for People and our onsite sub-contractors.”
Alison Roxburgh General Manager of the NE Edinburgh Food Bank comments:“I would like to thank the Places for People team and the subcontractors at The Engine Yard for their generosity and support once again this year.
“My thanks also go to everybody involved in promoting the Food Bank Christmas Appeal 2022 to ensure its success at a time when it is most needed.”
Enjoying a prime position close to Edinburgh’s city centre and once a historic tram depot on Leith Walk, The Engine Yard forms part of a superb regeneration story and is fast becoming the city’s newest destination to reside in.
Boasting rich industrial architecture, with tram sheds, a chimney, a boundary wall and gables, the area is now being sensitively restored to create a unique development of 377 homes that elegantly combines old and new in one place.
For more information about The Engine Yard, please visit:
Following the Scottish Government’s budget announcement last week which proposes a reduction in funding for Creative Scotland of around £7million (more than 10%) – the Board of Creative Scotland met yesterday, 19 December, to discuss the implications of this settlement.
Whilst the Board fully appreciates the challenging context in which the Scottish Government has reached its decision, and the pressures that are being felt by everyone across all parts of society, we are extremely disappointed by the settlement.
It comes at a time of significant pressures for cultural organisations due to the impact of the pandemic, rising inflation, falling income and spiralling operating costs, when the value of culture and creativity to people’s lives has never been more important.
In an effort to address this, at its meeting today, the Creative Scotland Board has agreed to use a proportion of its National Lottery reserves to maintain funding for Regularly Funded Organisations (RFOs) at 2022/23 levels.
National Lottery reserves have been accumulated and earmarked to ease the transition to the new funding framework. Using these reserves to cover the reduction in Scottish Government funding means that Creative Scotland will no longer have the flexibility of using these funds for other support, including the potential for an RFO supplementary fund previously referred to in our Future Funding for Organisations update on 3 November.
National Lottery reserves are finite and therefore can only be a time-limited solution to address Scottish Government budget reductions in 2023/24. As the Scottish Government budget does not give any indication of funding for 2024/25 and beyond, we cannot confirm RFO funding levels for 2024/25.
Creative Scotland will continue to act responsibly and pragmatically, however, if Scottish Government cuts continue beyond 2023/24, Creative Scotland will require to pass those on to the sector.
All other 2023/24 budget areas will be reviewed and published in our 2023/24 Annual Plan in Spring 2023.
Alcohol duty freeze extended six months from 1 February to 1 August 2023
Part of government’s responsible management of UK economy, plan aims to reassure and provide certainty to pubs, breweries and distilleries facing tough challenges ahead
End date aligns with new simpler alcohol tax system taking effect, with Chancellor reserving decision on future duty rates for Spring Budget 2023
The freeze to UK alcohol duty rates has been extended six months to 1 August 2023, the government announced yesterday (19 December 2022).
In a statement to the House of Commons, Exchequer Secretary to the Treasury James Cartlidge laid out a plan designed to provide certainty and reassure pubs, distilleries, and breweries as they face a challenging period ahead.
While new duty rates usually come in on the 1 February each year, Mr Cartlidge set out that this year the duty rates decision will be held until the Chancellor Jeremy Hunt delivers his Spring Budget on the 15 March 2023.
Further, the Minister made clear that if any changes to duty are announced then, they will not take effect until 1 August 2023. This is to align with the date historic reforms for the alcohol duty system come in, and amounts to an effective six month extension to the current duty freeze.
As part of the government’s commitment to responsible management of the UK economy, these changes will provide pubs, breweries, distilleries and other alcohol-related businesses with increased certainty to plan and make investment decisions more effectively.
Exchequer Secretary to the Treasury James Cartlidge said: “Today’s announcement reflects this government’s commitment to responsible management of the UK economy and supporting hospitality through a challenging winter.
“The alcohol sector is vital to our country’s social fabric and supports thousands of jobs – we have listened to pubs, breweries and industry reps concerned about their future as they get ready for the new, simpler, alcohol tax system taking effect from August.
“That’s why we have acted now to give maximum certainty to industry and confirmed there will be just one set of industry-wide changes next summer.”
The current alcohol duty freeze was announced at Autumn Budget 2021, saving consumers over £3 billion over five years. It was expected to come to an end on 1 February 2023, following the Chancellor’s reversal of most of September’s Growth Plan to restore trust in the economy and strengthen public finances.
At Autumn Budget 2021 the government announced the biggest reforms to alcohol duty in 140 years. The changes overhaul the UK’s outdates rules following exiting the EU by radically simplifying the entire system and slashing red-tape. To give industry more time to prepare, September’s Growth Plan set out that the reforms would take effect from 1 August 2023.
The new alcohol tax system will adopt a common-sense approach, where the higher a drink’s strength the higher the duty, whilst new reliefs will be made available to help pubs and small producers thrive.
New Draught Relief will be worth £100 million a year and will ensure smaller craft producers can benefit, the threshold for qualifying containers will be 20 litres.
Small Brewers Relief will be renamed Small Producer Relief, reformed and expanded. Until the revamp, a cliff-edge existed when relief is withdrawn for brewers who make more than 5,000 hectolitres a year.
This will be addressed, there will instead be a gradual taper to the removal of relief, which will empower small breweries to grow, after they had made clear through consultation that the current design was acting as a barrier. Further, the expansion of the relief means that all producers that make drinks below 8.5% – mostly craft brewers and cidermakers – will be able to get relief on their products.
The alcohol duty reforms will help create a simpler, fairer and healthier duty system. Higher rate for sparkling wines will come to an end, meaning they will pay the same rate as still wine. Liqueurs will be put on the same footing as fortified wine, meaning a sherry and Irish Cream will now pay the same duty, and super-strength ‘white cider’ will rise to address public health concerns.
The wine industry will also be supported as they adapt to the new system. All wine between 11.5-14.5% alcohol by volume (ABV) to calculate duty as if it were 12.5% ABV for 18 months from the implementation of the new system.
A UK Spirits Alliance spokesperson said:“Today’s decision by HM Treasury comes as extremely welcome news to distillers across the country. We know that previous duty freezes have enabled distillers across the UK to invest in supply chains, tourism centres and local communities.
“The announcement today is a major boost to the industry at such a crucial time. We look forward to working with the Chancellor over the coming months as he makes a decision on the future of alcohol duty at the Spring Budget.”
Miles Beale, Chief Executive, the Wine and Spirit Trade Association, said:“We are extremely pleased to hear that the Chancellor has listened to our calls not to deliver a double whammy tax hike next year.
“History has shown that freezing alcohol duty delivers increased revenue to the Exchequer. If duty rates went up by RPI on February 1st, this would have been a crippling blow to the UK alcohol industry and consumers who would have to pay the price for tax rises.
“Delaying any increase until 1 August means businesses will not have to manage two duty rises in the space of 6 months. We hope that any duty increases applied in August take into account the damage suffered by wine and spirit businesses and the hospitality sector during the pandemic as businesses continue to fightback.
“We are calling on Jeremy Hunt to cancel double digit tax rises to help cash-strapped consumers and to support the UK’s world-class drinks industry.”
Emma McClarkin, Chief Executive, the British Beer and Pub Association said:“The decision to extend the freeze on beer duty will be welcomed by pubs and brewers alike.
“In 2022 our industry has faced pressures and challenges like never before. This freeze will allow £180million to be reinvested into our sector at a critical moment and inject a much-needed flurry of festive cheer for pubs and breweries. It shows the Government understands just how much our pubs and brewers mean to communities across the UK.
“Investment in our sector now will pay dividends in villages, towns and cities across the country for generations to come. Pubs and brewers are a crucial thread in the social fabric of our society and contribute not only economically but socially, connecting people in communities up and down the country.
“We look forward to working with the Government to implement the promised duty reforms in 2023 ensuring a fair and modernised rates system in the UK that support lower-strength products and our country’s pubs.”
Richard Naisby, National Chairman, Society of Independent Brewers said:“Independent breweries play a vital role in the British hospitality industry and are embedded in their local communities, providing jobs and adding greatly to local economies across the UK.
“The extension of the beer duty freeze comes as welcome news to these vital independent businesses, providing some certainty until the summer.
“We look forward to working with Treasury on delivering further positive changes for the hospitality and independent brewing industry.”
Fuel Insecurity Fund extended to help fuel poor households
Thousands of vulnerable households will be supported by the continuation of the Scottish Government’s uprated £20 million Fuel Insecurity Fund.
Announced as part of last week’s Scottish Budget 2023-24, the investment will enable third sector partners to continue to provide support to households who are at risk of self-disconnection or self-rationing their energy use.
While the Scottish Government remains committed to engaging with the UK Government to deliver a referendum on Scottish Independence, funding that was originally earmarked for a referendum in 2023 will now be used to help tackle fuel poverty.
Last week’s Scottish Budget included additional steps to address inequality while tackling the climate emergency including increased investment of over £366 million next year to support the delivery of the Heat in Buildings Strategy. It forms part of a package of measures introduced by the Scottish Government to protect the most vulnerable households from the impact of the current cost of living crisis.
The decisions taken through the Emergency Budget Review in November enabled the Scottish Government to provide additional immediate support to people most impacted by the cost of living crisis, specifically rising energy prices, by doubling the Fuel Insecurity Fund to £20 million this year. The Scottish Budget is now protecting that investment into 2023-24.
First Minister Nicola Sturgeon and Minister for Zero Carbon Buildings Patrick Harvie met with people on the frontline of tackling fuel poverty, while visiting the Wise Group in Glasgow, a social enterprise working to lift people out of poverty by providing mentoring support to help with employment and life skills and offering energy advice.
First Minister Nicola Sturgeon said: “People across our country are paying a steep price for the economic mismanagement of the UK Government, with the cost of living forcing many to choose between heating their home or eating – the Fuel Insecurity Fund aims to stop that happening.
“The Scottish Government has, and always will, use its currently limited powers to the maximum extent in order to meet the challenges being faced by the people of Scotland right now. Powers relating to energy markets are reserved to the UK Government, so I am renewing my call for further and more urgent action, to support the most vulnerable households.
“With this intervention – as with many others the Scottish Government has set out – we are having to divert funding into policies that aim to minimise the impact on people as a direct result of UK Government policy.
“The full powers of independence would enable us to make different choices and help people facing the devastating consequences of the cost of living crisis.”
Minister for Zero Carbon Buildings and Tenants’ Rights Patrick Harvie said: “Everyone needs a safe, warm and affordable place to call home and yet despite this we know that many people are struggling under the weight of their energy bills and wider cost of living pressures.
“Last week, the Scottish Budget confirmed £366m for insulating homes and buildings and tackling fuel poverty as part of our £1.8 billion commitment to Heat in Buildings over this Parliament.
“That is essential work to make sure that Scotland has warmer homes which are cheaper to heat for decades ahead. We also need the full range of powers on matters like energy pricing, consumer protection and energy supply to make the biggest possible difference.
“But right now, the Fuel Insecurity Fund is a lifeline to many people struggling most with fuel poverty which is why we have made the commitment for next year.”
