Tag: CBI

A Budget to ‘fix the foundations’ and deliver change for Scotland?

Chancellor ‘takes long-term decisions to restore stability, rebuild Britain and protect working people across Scotland’

  • No change to working people’s payslips as employee national insurance and VAT stay the same, but businesses and the wealthiest asked to pay their fair share.
  • Record £47.7 billion for the Scottish Government in 2025/26 includes £3.4 billion through the Barnett formula.
  • Funding for Green Freeports, City and Growth Deals, GB Energy and hydrogen projects to fire up growth and deliver good jobs across Scotland.

The Chancellor has ‘delivered a Budget to fix the foundations to deliver on the promise of change after a decade and a half of stagnation’. She set out plans to rebuild Britain, while ensuring working people across Scotland don’t face higher taxes in their payslips.

The UK Government was handed a challenging inheritance; £22 billion of unfunded in-year spending pressures, debt at its highest since the 1960s, an unrealistic forecast for departmental spending, and stagnating living standards.

This Budget takes ‘difficult decisions’ to restore economic and fiscal stability, so that the UK Government can invest in Scotland’s future and lay the foundations for economic growth across the UK as its number one mission.

The Chancellor announced that the Scottish Government will be provided with a £47.7 billion settlement in 2025/26 – the largest in real terms in the history of devolution. This includes a £3.4 billion top-up through the Barnett formula, with £2.8 billion for day-to-day spending and £610 million for capital investment.

Secretary of State for Scotland Ian Murray said: “This is a historic budget for Scotland that chooses investment over decline and delivers on the promise that there would be no return to austerity.

“It is the largest budget settlement for the Scottish Government in the history of devolution, including an additional £1.5 billion this financial year and an additional £3.4 billion next year through the Barnett formula. That money must reach frontline services, to bring down NHS waiting lists and lift attainment in our schools.

“It will also bring a new era of growth for Scotland and the whole UK, confirming nearly £890 million of direct investment into Freeports, Investment Zones, the Argyll and Bute Growth Deal, and other important local projects across Scotland’s communities, as well as £125 million next year for GB Energy and support for green hydrogen projects in Cromarty and Whitelee.

“The increase in the minimum wage will also mean a pay rise for hundreds of thousands of workers in Scotland, with the biggest increase for young workers ever. This is on top of our employment rights bill which will deliver the biggest upgrade in workers’ rights in a generation. The triple lock means an increase in the state pension by £470 next year, on top of £900 this year for a million Scottish pensioners.

“The budget protects working people in Scotland, delivers more money than ever before for Scottish public services and means an end to the era of austerity.”

Protecting working people and living standards

While fixing the inheritance requires tough decisions, the Chancellor has committed to protecting the living standards of working people. The decisions taken by the Chancellor to rebuild public finances enable the UK Government to deliver on its pledge to not increase National Insurance or VAT on working people in Scotland, meaning they will not see higher taxes in their payslip.

  • The National Living Wage will increase from £11.44 to £12.21 an hour from April 2025. The 6.7% increase – worth £1,400 a year for a full-time worker – is a significant move towards delivering a genuine living wage.
  • The National Minimum Wage for 18 to 20-year-olds will also see a record rise from £8.60 to £10 an hour.
  • Working people will benefit from these increases, with there estimated to be over 100,000 minimum wage workers in Scotland in 2023.
  • The Chancellor has made the decision to protect working people in Scotland from being dragged into higher tax brackets by confirming that the freeze on National Insurance Contributions thresholds will be lifted from 2028-29 onwards, rising in line with inflation so they can keep more of their hard-earned wages.
  • The Chancellor is also protecting motorists by freezing fuel duty for one year – a tax cut worth £3 billion, with the temporary 5p cut extended to 22 March 2026. This will benefit an estimated 3.2 million people in Scotland, saving the average car driver £59, vans £126 and Heavy Goods Vehicles £1,079 next year.
  • To support Scottish pubs and smaller brewers in Scotland, the UK Government is cutting duty on qualifying draught products by 1p, which represent approximately 3 in 5 alcoholic drinks sold in pubs. This measure reduces duty bills by over £70 million a year, cutting duty on an average strength pint in a pub by a penny. The relief available to small producers will be updated to help smaller brewers and cidermakers.  
  • Over 1 million Scottish pensioners will benefit from a 4.1% increase to their new or basic State Pension in April 2025. This is an additional £470 a year for those on the new State Pension and an additional £360 a year for those on the basic State Pension.
  • Households eligible for Pension Credit will get £465 a year more for single pensioners and up to £710 a year more for couples due to a 4.1% increase in the Pension Credit Standard Minimum Guarantee, benefitting 125,000 pensioners in Scotland.
  • Around 1.7 million families in Scotland will see their working-age benefits uprated in line with inflation – a £150 gain on average in 2025-26.
  • Reducing the maximum level of debt repayments that can be deducted from a household’s Universal Credit payment each month from 25% to 15% will benefit a Scottish family by over £420 a year on average.

Rebuilding Britain

This UK Government will not make a return to austerity and will instead boost investment to rebuild Britain and lay the foundations for growth in Scotland. This includes £130 million of targeted funding for the Scottish Government, of which £120 million is in capital investment.

  • The Budget delivers on the first step to establish Great British Energy by providing £125 million next year to set up the institution at its new home in Aberdeen – helping to develop new clean energy projects in Scotland and across the UK. 
  • The UK Government will deliver £122 million for City and Growth Deals, including the continuation of its contribution to the Argyll and Bute Growth Deal which delivers £25 million of investment in the region over 10 years. This Deal will be supported by a rigorous value for money assessment as part of the review of the business cases for projects within it, to ensure best value is being delivered.
  • The Budget gives certainty to local leaders and investors, confirming funding for the Investment Zones and Freeports programmes across the UK – including Scotland’s Green Freeports. 
  • The Chancellor committed the UK Government to working closely with the Scottish Government on the Industrial Strategy, 10-year infrastructure strategy and the National Wealth Fund – to ensure the benefits of these are felt UK-wide and as part of the relationship reset between governments. These will mobilise billions of pounds of investment in the UK’s world-leading clean energy and growth industries.
  • To support economic growth and promote Scottish culture, products and services through diplomatic and trade networks, the UK Government is allocating £750,000 for the Scotland Office in 2025/26 to champion Brand Scotland as was committed in the manifesto.
  • We are supporting Scotland’s world-renowned Scotch Whisky industry by providing up to £5 million for HMRC to reduce the fees charged by the Spirit Drinks Verification Scheme and by ending mandatory duty stamps for spirits on 1 May 2025.
  • Two electrolytic hydrogen projects in Scotland have been selected for UK Government revenue support through the first Hydrogen Allocation Round: Cromarty Green Hydrogen Project and Whitelee Green Hydrogen. Both projects will bring in significant international investment and create good quality, local jobs.
  • An extension of the Innovation Accelerators programme will support the high-potential innovation cluster in the Glasgow City Region.
  • A corporate tax roadmap will provide businesses with the stability and certainty they need to make long-term investment decisions and support our growth mission. It confirms our competitive offer, with the lowest Corporate Tax rate in the G7 and generous support for investment and innovation. 
  • The UK Government will also proceed with implementing the 45%/40% rates of the theatre, orchestra, museum and galleries tax relief from 1 April 2025 to provide certainty to businesses in Scotland’s thriving cultural sector.

Repairing public finances

The Chancellor has made clear that, whilst protecting working people with measures to reduce the cost of living, there would be difficult decisions required. The Budget will ask businesses and the wealthiest to pay their fair share while making taxes fairer. This will go directly towards fixing the foundations of the UK economy.

  • The rate of Employers’ National Insurance will increase by 1.2 percentage points, to 15%. The Secondary Threshold – the level at which employers start paying national insurance on each employee’s salary – will reduce from £9,100 per year to £5,000 per year.
  • The smallest businesses will be protected as the Employment Allowance will increase to £10,500 from £5,000, allowing Scottish firms to employ four National Living Wage workers full time without paying employer national insurance on their wages.
  • Capital Gains Tax will increase from 10% to 18% for those paying the lower rate, and 20% to 24% for those paying the higher rate.
  • To encourage entrepreneurs to invest in their businesses Business Asset Disposal Relief (BADR) will remain at 10% this year, before rising to 14% on 6 April 2025 and 18% from 6 April 2026-27.
  • The lifetime limit of BADR will be maintained at £1 million. The lifetime limit of Investors’ Relief will be reduced from £10 million to £1 million.
  • The OBR say changes to CGT raise over £2.5 billion a year and the UK will continue to have the lowest CGT rate of any European G7 country.
  • Inheritance Tax thresholds will be fixed at their current levels for a further two years until April 2030. More than 90% of estates each year will be outside of its scope. From April 2027 inherited pensions will be subject to Inheritance Tax. This removes a distortion which has led to pensions being used as a tax planning vehicle to transfer wealth rather than their original purpose to fund retirement.
  • From April 2026, agricultural property relief and business property relief will be reformed. The highest rate of relief will continue at 100% for the first £1 million of combined business and agricultural assets, fully protecting the majority of businesses and farms. It will reduce to 50% after the first £1 million. Reforms will affect the wealthiest 2,000 estates each year. Inheritance Tax reforms in total are predicted by the OBR to raise £2 billion to support stability.
  • From 2026-27 Air Passenger Duty (APD) for short and long-haul flights will increase by 13% to the nearest pound, a partial adjustment to account for previous high inflation. For economy passengers, this means a maximum £2 extra per short haul flight and tickets for children under the age of 16 remain exempt from APD. APD for larger private jets will be increased by a further 50%. Passengers carried on flights leaving from airports in the Scottish Highlands and Islands region are exempt from APD.
  • The rate of the Energy Profits Levy will increase to 38% from 1 November 2024 and the levy will now expire one year later than planned, on 31 March 2030.  The 29% investment allowance will be removed.
  • To provide long-term certainty and to support a stable energy transition, the UK Government will make no additional changes to tax relief available within the EPL and a consultation will be published in early 2025 on a successor regime that can respond to price shocks. Money raised from changes to the EPL will support the transition to clean energy, enhance energy security and provide sustainable jobs for the future.

The Budget also announced a package of measures that disincentivise activities that cause ill health, by:

  •  Renewing the tobacco duty escalator which increases all tobacco duty rates by RPI+2% plus an above escalator increase to hand rolling tobacco (totalling RPI+12%).  
  • Introducing a new vaping duty at a flat rate of 22p/ml from October 2026, accompanied by a further one-off increase in tobacco duty to maintain financial incentive to choose vaping over smoking. 
  • To help tackle obesity and other harms caused by high sugar intake, the Soft Drinks Industry Levy will increase to account for inflation since it was last updated in 2018, and the duty will rise in line with inflation every year going forward.
  • The UK Government will also uprate alcohol duty in line with RPI on 1 February 2025, except for most drinks in pubs.

The UK Government has set out the next steps to deliver its tax manifesto commitments in the July Statement. Having consulted on the final policy details where appropriate, this Budget delivers the UK Government’s manifesto commitments to raise revenue to pay for First Steps, with reforms that are underpinned by fairness, and tackle tax avoidance by:  

  • A new residence-based regime will replace the current non-dom regime from April 2025 and will be designed to attract investment and talent to the UK.
  • Offshore trusts will no longer be able to be used to shelter assets from Inheritance Tax, and there will be transitional arrangement in place for people who have made plans based on current rules.
  • The planned 50% reduction for foreign income in the first year of the new regime will be removed.
  • Reforms to the non-dom regime will raise a total of £12.7 billion according to the OBR.
  • The tax treatment of carried interest will be reformed by first increasing the Capital Gains Tax rates on carried interest to 32% and then, from April 2026, moving to a revised regime – with bespoke rules to reflect the characteristics of the reward.

The Chancellor also ‘doubled down’ on fiscal responsibility through two new fiscal rules that put the public finances on a sustainable path and prioritise investment to support long-term growth, and new principles of stability. Spending Reviews will be held every two years, setting plans for at least three years to ensure public services are always planned and improve value for money.

One major fiscal event per year will give families and businesses stability and certainty on tax and spending changes, while giving the Scottish Government greater clarity for in its own budget-setting.  A Fiscal Lock will also ensure no future government can sideline the OBR again.

Budget marks ‘step in right direction’

Scotland’s Finance Secretary responds to Budget

Finance Secretary Shona Robison has welcomed additional funding in the Autumn Budget, but said the Scottish Government will still face “enormous cost pressures” despite the measures.

The Finance Secretary said: “We called for increased investment in public services, infrastructure and tackling poverty. This budget is a step in the right direction, but still leaves us facing enormous cost pressures going forwards. The additional funding for this financial year has already been factored into our spending plans.

“By changing her fiscal rules and increasing investment in infrastructure, the Chancellor has met a core ask of the Scottish Government. But after 14 years of austerity, it’s going to take more than one year to rebuild and recover – we will need to see continued investment over the coming years to reset and reform public services.

“Indeed, there is a risk that by providing more funding for public services while increasing employer national insurance contributions, the UK Government is giving with one hand while taking away with the other.

“We estimate that the employer national insurance change could add up to £500 million in costs for the public sector unless it is fully reimbursed – and there is a danger that we won’t get that certainty until after the Scottish budget process for 2025/26 has concluded.

“With the lingering effects of the cost of living crisis still hitting family finances, it is disappointing that there was no mention of abolishing the two-child limit, which evidence shows would be one of the most cost-effective ways to reduce child poverty. Neither was there mention of funding for the Winter Fuel Payment.

“As ever, the devil is in the detail, and we will now take the time to assess the full implications of today’s statement. I will be announcing further details as part of the Scottish Budget on 4 December.”

Child Poverty Action Group: Chancellor misses golden chance to scrap two child limit

  • 16 000 more children will now be pulled into poverty by time new UK child poverty taskforce reports in spring
  • “Good news on universal credit deductions, but no bold action on child poverty” 
  • Barnett consequentials must now be prioritised to fund action on child poverty in Scotland

Responding to the UK Chancellor’s Budget, John Dickie, Director of the Child Poverty Action Group (CPAG) in Scotland, said; “The Chancellor brought good news on universal credit deductions, but this was not a Budget of bold action on child poverty.  She missed a golden chance to scrap the two-child limit, a policy that will pull 16,000 extra children into poverty by the time the government’s child poverty taskforce reports in spring.

We welcome the new UK government’s ambition on child poverty but this budget played for time, time that children and families can’t afford. The UK spending review next spring will have to deliver much more to make a significant difference for children in poverty.”

Mr Dickie continued: “Here in Scotland and looking ahead to the Scottish budget it is vital that wider Barnett consequentials are now used to fund the action needed to deliver on the First Minister’s number one priority of ending child poverty.

“That must include funding a real terms increase to the Scottish child payment, expanding childcare provision, delivering on free school meal promises and increasing the supply of affordable family housing.”

POVERTY ALLIANCE:

Responding to today’s UK Budget, Poverty Alliance chief executive Peter Kelly said: “People across the UK believe in a nation based on justice and compassion. Today’s Budget was an opportunity for the Chancellor to turn those values into action, and to rebuild trust in government. Despite some welcome changes, there is still some way to go.

“Boosting the minimum wage is welcome, because for decades workers have been getting less and less from our growing economy. This increase will go some way to making up the gap, particularly for younger workers. But we need to remember that today’s Budget will still leave the legal minimum wages far lower than the real Living Wage rate – the only wage rate that is solely based on the cost of living – of £12.60 per hour, or £13.85 per hour in London.

“We know that too many people on Universal Credit find themselves pushed into destitution when they are chased for debt by public bodies, so it’s good that the maximum amount of benefit that can be taken from them has been reduced. But the Chancellor could have gone further, by strengthening our social security with a boost to Universal Credit that would guarantee that households can afford life’s essentials.

“She could have made it clear that every child matters, by scrapping the unjust and ineffective two-child limit, and ditching the unfair benefit cap which stops households getting all the support they are entitled to.

“There was a welcome focus on the importance of our public services to our shared prosperity and wellbeing. But the Chancellor could have done more to use our country’s wealth to tackle poverty and invest in a better society. Even with today’s changes, people who earn money from selling shares and business assets will pay Capital Gains Tax at a lower rate than workers pay in Income Tax. That’s just wrong.

“Freezing fuel duty and keeping the previous cuts in place will cost the Exchequer billions of pounds a year. It’s bad value for money, benefits the wealthiest in society most, and does little to make the transition to the green economy. The money would have been better invested in affordable, accessible, and sustainable public transport for all.

“It’s right that big companies pay their fair share towards building a strong society, but the Chancellor must urgently consider how increases to employer National Insurance will hit charities and community groups.

“The support and advice provided by these organisations is vital for people who have been pushed into poverty, but too many are already struggling through a lack of fair funding, and this NI increase could push many over the edge.

“That would be a disaster for our communities, and leave more low-income households facing destitution and despair.”

TUC: Labour’s investment budget has begun process of “repairing and rebuilding Britain”

Union body says budget is a vital first step towards the growth, jobs and living standards working people desperately need

Commenting on Wednesday’s budget statement from the Chancellor Rachel Reeves, TUC General Secretary Paul Nowak said: “The Chancellor was dealt a terrible hand by the last Conservative government – a toxic legacy of economic chaos, falling living standards and broken public services. 

“But with today’s budget the Chancellor has acted decisively to deliver an economy that works for working people. 

“The government’s investment plans are a vital first step towards repairing and rebuilding Britain – securing the stronger growth, higher wages and decent public services that the country desperately needs. 

“Tax rises will ensure much-needed funds for our NHS, schools and the rest of our crumbling public services, with those who have the broadest shoulders paying a fairer share. The Chancellor was right to prioritise hospitals and classrooms over private jets. 

“There is still a lot more work to do to clean up 14 years of Tory mess and economic decline. – including better supporting and strengthening our social security system. But this budget sets us on an urgently needed path towards national renewal.” 

Shelter Scotland has responded to the UK budget set out this afternoon by Chancellor Rachel Reeves.

The housing and homelessness charity urged the Scottish Government to commit to investing any new capital funding into delivering the social homes needed to end the housing emergency. 

However, it also expressed disappointment at the continuation of the two-child limit and ongoing freeze to Local Housing Allowance.

Shelter Scotland Director, Alison Watson, said: “Having declared a housing emergency it’s clear that the Scottish Government must back words with actions.

“It is vital that any capital funding which becomes available as a result of the Chancellor’s investment plans is in turn used by Scottish Ministers to deliver social homes here, but we also need to see growth in the capital budget over a sustained period to support continued investment.

“Delivering more social homes remains the single most effective way to tackle the housing emergency in Scotland, and only the Scottish Government can decide how much of its budget it commits to that endeavour. 

“However, we can’t ignore the role that austerity has played in exacerbating Scotland’s housing emergency.

“The freeze on local housing allowance and the two-child limit has forced thousands into poverty; they will continue to do so as it seems the Chancellor has chosen to keep them in place.” 

COSLA:

ONE PARENT FAMILIES SCOTLAND:

Scotch Whisky industry says UK government has broken commitment to ‘back Scotch producers to the hilt’

Chancellor increases discrimination of Scotch Whisky and other spirits in on-trade

The Scotch Whisky Association (SWA) says the Chancellor’s decision to further increase duty on Scotch Whisky has broken the Prime Minister’s commitment to ‘back Scotch producers to the hilt.’

In her first Budget, Chancellor Rachel Reeves announced an RPI inflation increase to alcohol duty, but cut duty on draught products in the on-trade by 1.7%. Scotch Whisky and other spirits are excluded from this tax relief. 

The SWA had called on the new Chancellor to take the opportunity to reverse the damage done by the 10.1% increase in August 2023. Instead, the damage done to the industry and to government revenue has been compounded by further increasing the tax burden on the sector, which is already the highest in the G7.

Spirits revenue fell by hundreds of millions of pounds as a result of the 10.1% duty increase last year, and the industry has warned that this further tax hike will not deliver the revenue ministers have been promised but will hurt businesses, the hospitality sector and hard-pressed consumers.

Commenting on the Budget, Chief Executive of the SWA Mark Kent said: “This duty increase on Scotch Whisky is a hammer blow, runs counter to the Prime Minister’s commitment to ‘back Scotch producers to the hilt’ and increases the tax discrimination of Scotland’s national drink.

“On the back of the 10.1% duty increase last year, which led to a reduction in revenue for HM Treasury, this tax hike serves no economic purpose. It will damage the Scotch Whisky industry, the Scottish economy, and undermines Labour’s commitment to promote ‘Brand Scotland’.

“She has also increased the tax discrimination of spirits in the Treasury’s warped duty system, and with 70% of UK spirits produced in Scotland, that will do further damage to a key Scottish sector.

“The disastrous 10.1% duty hike last year has now been compounded. This further tax rise means the lessons have not been learned, and the Chancellor has chosen continuity with her predecessor, not change.

“We urge all MPs who support Scotch Whisky to vote against this duty hike and tax discrimination of Scotland’s national drink.”

Rain Newton-Smith, CBI Chief Executive, said: “The Chancellor had difficult choices to make to deliver stability for the economy and public finances. A more balanced approach to our fiscal rules which prioritises capital investment should help to unlock private sector investment in our infrastructure and net zero transition over the long-term.

“This is a tough Budget for business. While the Corporation Tax Roadmap will help create much needed stability, the hike in National Insurance Contributions alongside other increases to the employer cost base will increase the burden on business and hit the ability to invest and ultimately make it more expensive to hire people or give pay rises.

“Only the private sector can provide the scale of investment required to deliver the government’s growth agenda.

“To achieve this shared mission of growing our economy sustainably, it’s vital that the government doubles down on its partnership with business to unlock the investment that is needed to drive opportunity around the UK.”

FSB: Employment allowance rise welcome from Chancellor in tax-raising Budget

The Federation of Small Businesses responds to the Chancellor’s Budget statement

Responding to the Chancellor’s Budget statement, Policy Chair of the Federation of Small Businesses (FSB), Tina McKenzie, said: “Increasing the employment allowance for small businesses by a record amount is a very welcome move and we’re pleased the Chancellor has heard us loud and clear.

“More than doubling it, from £5,000 to £10,500, will shield the smallest employers from the jobs tax, therefore is a pro-jobs prioritisation in a tough Budget.

“The decision to protect small businesses from an inflationary hike in business rates – by freezing the small business multiplier – will help small firms with premises across all sectors. Meanwhile, extending business rates relief, albeit at a lower level, for small firms in retail, hospitality and leisure will mitigate a potential cliff-edge tax hike for those in some of the toughest sectors.

“The true test of today’s Budget will be whether small businesses can grow and end the economic stagnation the UK has been stuck in.

“Larger small, and medium-sized, businesses will struggle with the rises on employer national insurance on top of the large costs from the Government’s employment law plans. We’ve been very clear in our warning of the difficulty SMEs will be confronted with in meeting all of these changes at once – and the potential impact on jobs, wages and prices.

“The Budget documents include plans for a small business strategy command paper, which is a welcome signal that ministers appreciate the central role that small businesses play in driving growth and we look forward to working with the Government closely on that.

“Investment in infrastructure is key to future growth, and the Chancellor’s announcement of additional funding for rail projects and fixing potholes is therefore encouraging. Many small firms, meanwhile, will be relieved at the decision not to raise fuel duty. The commitment to prioritise small housebuilders when it comes to housing investment is also welcome.

“Building a business involves a significant element of risk and personal, as well as financial, investment. But for the economy to grow, we need more people to be incentivised to take that leap and, in turn, create jobs, opportunities and prosperity in all communities across the country.

“The right decision has been taken to retain entrepreneurs’ relief (now branded Business Asset Disposal Relief) up to £1million, which is something we have campaigned hard for. Although the level of relief will gradually reduce over time, resulting in more tax being paid in the future on business sales, we’re pleased to see a differential has been kept.

“Against a challenging backdrop, today’s Budget shows a clear direction in business policy now for the whole of this Parliament to target support at small businesses, rather than big corporates – prioritising everyday entrepreneurs working in local communities in all parts of the country.”

UK Budget fails “3 Key Tests for Scotland”, say Alba Party

Scottish Government must now fund universal entitlement to pensioners winter fuel payment

“To gain pass marks the new UK Labour Government had three key tests to meet in Scotland: it had to reverse its plan to cut the universal winter fuel payment; it had to save Grangemouth; and it had to fund a plan to save North Sea Oil and Gas jobs – on all three counts Labour has failed Scotland.” 

This was said today by Acting Alba Party leader Kenny MacAskill reacting to Chancellor Rachel Reeves’ budget. 

Alba Party say that the UK Government had three key tests to meet to deliver for Scotland. Former First Minister Alex Salmond helped launch a campaign to save the winter fuel payment last month.

Close to one million pensioners in Scotland are set to lose out on between £200-£300 this winter. Acting Alba Party leader Kenny MacAskill has been a leading voice in the campaign to save the Grangemouth Oil Refinery from closure.

Mr MacAskill has today hit out at the UK Government after Labour promised in the General Election to save Scotland’s only refinery that is set for closure next year but has failed to provide funding to save the refinery in today’s budget. 

MacAskill has now called on the Scottish Government to use extra Barnett consequential funding to fully mitigate the cut to the winter fuel payment.   

Alba Party have also hit out as successive UK Government’s have promised investment in Carbon Capture Technology in the North East of Scotland. Alba say the technology is vital to secure the future of the North Sea Oil and Gas industry and to help Scotland play its part in protecting the environment. Today’s UK Budget confirmed £22billion of investment in carbon capture projects in England – but snubbed the Acorn project on the Buchan coast.

Commenting Acting Alba Party leader Kenny MacAskill said: ““Today’s UK Budget is a continuity budget that proves that regardless of whether we have a UK Tory Government or a UK Labour Government, Scotland will always lose. 

“To gain pass marks the new UK Labour Government had three key tests to meet in Scotland: it had to reverse its plan to cut the universal winter fuel payment; it had to save Grangemouth; and it had to fund a plan to save North Sea Oil and Gas jobs – on all three counts Labour has failed Scotland.

“ Close to a million Scottish pensioners are to be kept in the cold this winter, the UK Government has chosen to stand by and allow Scotland’s key industrial asset to close, and Labour have betrayed the North East of Scotland. 

“ Nothing for Scotland’s pensioners, nothing for Grangemouth and nothing for Carbon Capture and the North Sea. It is now vital that the Scottish Government steps up to the plate and uses any additional funding consequentials it receives to fully mitigate the cut to the winter fuel payment.”

Budget is a ‘Missed Opportunity’

The budget is a missed opportunity to bring about the transformative change this country needs, said Westminster’s group of independent MPs.

A statement from the Independent Alliance:

LOCAL GOVERNMENT INFORMATION UNIT:

Dr Jonathan Carr-West, Chief Executive, LGIU, said: “The Chancellor billed this as an historically consequential budget of hard choices. That’s certainly true in many areas with £40bn of tax rises announced and significant changes to the government’s debt rules. 
 
“For local government, however, it is a budget of choices deferred. It could have been worse – there’s an additional £1.3bn in funding including money for social care and additional funding for housing and special educational needs: the very areas that are driving many councils to bankruptcy.
 
“But this extra funding is not even half the gap that councils currently face. 
 
“The longer-tem change that the sector desperately needs is all deferred for now. We are waiting on the Local Government Finance Settlement, on the Devolution White Paper and on a broader redistribution of funding through a multi-year settlement from 2026-27.
 
“There were some welcome highlights: retaining 100%  of right to buy receipts and integrated settlements for Greater Manchester and the West Midlands and possibly for other places in future. 
 
“Is this a start? Yes. Is it enough? Not by a long shot. At least not yet. There’s a positive direction of travel set out, but there’s a long way to go and the pressure on council finances means there’s a real risk that some councils will not be able to hang on long enough to get there.”

Chancellor vows to work in partnership with business ‘to fix the foundations’

The Chancellor ‘ushered in a new era of business partnership’ yesterday (29 August) as she met business groups together for the first time as Chancellor.

Rachel Reeves told senior business leaders that just as they had worked together in opposition to write their plans for government, they will work together now to deliver them.

In her first meeting with the BCC, CBI, FSB, Make UK and IoD as Chancellor, she said that businesses will be at the heart of delivering the government’s growth mission, as it takes action to fix the foundations of the economy to rebuild Britain and make every part of the country better off.

Ahead of October’s Budget, Reeves promised to ‘co-design’ policy with business on shared priorities to boost growth, pointing to the same approach being taken for designing the National Wealth Fund. 

She pledged to establish a new British Infrastructure Council to advise government on how to support more investment into UK infrastructure projects, and work closely with business to bring down barriers to growth and investment.

Reeves told senior business representatives the Treasury’s door was always open to valuable business insights on the opportunities and challenges they face. 

She added that the Business Secretary is committed to the new Industrial Strategy Council having a strong business voice and is also consulting with business on the details on Plan to Make Work Pay.

Business representatives also gave their views on what a successful partnership with government could look like and areas to prioritise to help their members grow and invest. 

Speaking after the meeting, Chancellor of the Exchequer Rachel Reeves said: “Under this new government’s leadership, I will lead the most pro-growth, pro-business Treasury in our history – with a laser focus on making working people better off. 

“That can only happen by working in partnership with businesses: big, medium and small. I want to continue the strong partnership we built with business in opposition now we are in government to deliver on our shared goal of fixing the foundations of our economy, so we can rebuild Britain and make every part of the country better off.”

Stephen Phipson CBE, CEO of Make UK, the manufacturers’ organisation said: “The Chancellor promised that she would engage properly with business and today was more evidence that the promise is being honoured.

“It was very welcome to have the Chancellor highlight further progress in delivering an Industrial Strategy with assurances that the governing Council would have a strong business voice.  

“In order to build confidence for businesses to increase investment, it is critical we keep this momentum going and see more detail on the delivery as well as vision. UK Manufacturers are fully behind the government’s growth agenda and look forward to working in partnership with government to achieve it.”

Shevaun Haviland, Director General of the British Chambers of Commerce said: “Today’s meeting was a valuable opportunity to reaffirm our commitment, on behalf of the businesses across our Chamber network, to work in partnership with Government. 

“We outlined our priorities for the Autumn Budget, recognising the public finance challenge. Boosting economic growth and investment is crucial, while maintaining a fiscal environment that protects the UK’s business competitiveness. 

“We welcome the Chancellor’s pledge to work with us on plans for an industrial strategy and to boost infrastructure investment. 

“We look forward to more discussions with the Chancellor and the Treasury team ahead of her statement on October 30th”

Tina McKenzie MBE, Federation of Small Businesses Policy Chair, said: “Today’s meeting was a crucial partnership moment, and I was pleased to raise issues and growth ideas from FSB members up and down the country, in every local community.

“You don’t get growth, jobs or wealth creation without UK small businesses; this was a core feature of our discussions in Opposition.  

“Now as the Chancellor and her team turn to the Budget, the diversity of UK businesses – 99% of which are the small, micro or self-employed that we represent – needs reflecting in Government policy-making just as much.”

CBI CEO Rain Newton-Smith said: “Businesses are the engine of growth and will be central to achieving the government’s mission to boost the UK economy. It’s why the CBI welcomes the Chancellor’s promise to co-design policy with the business community.

“Together, we can find shared solutions to shared problems – to increase productivity and business investment – in turn, improving living standards.

“The CBI is proud to work in close partnership with the Treasury, providing a cross-economy voice to help remove the roadblocks holding back investment and sustainable growth.”

Jonathan Geldart, Director General of the Institute of Directors, said: “For the government to successfully deliver its growth mission, it will be crucial that it works in partnership with business.

“Therefore, we look forward to building on the productive relationship that we have developed with the Chancellor, to ensure that the priorities and challenges of businesses and entrepreneurs are understood and acted upon.

“Specifically, as we approach her first Budget in the autumn, we are calling on the Chancellor to take time to get policy design right for the long-term, to deliver the stable tax and policy framework needed to support business confidence and investment.”

Gove: Levelling Up invitation to ‘join forces for the common good’

The Secretary of State for Levelling Up Michael Gove has written to the First Ministers of Scotland, Wales and Northern Ireland following the publication of the Levelling Up White Paper.

In the letters the Secretary of State for Levelling Up:

  • discusses the publication of the Levelling Up White Paper
  • calls for the First Ministers of Scotland, Wales and Northern Ireland to work with the UK government to overcome shared challenges

The Scottish Government is yet to respond.

LEVELLING UP: REACTION

Responding to the publication of the levelling up white paper, TUC General Secretary Frances O’Grady said: “If we don’t level up at work, we won’t level up the country. 

“But the government has failed to provide a serious plan to deliver decent well-paid jobs, in the parts of the UK that need them most. 

“Insecure work and low pay are rife in modern Britain. And for far too many families hard work no longer pays.  

“With the country facing a cost-of-living crisis, working families need action now to improve jobs and boost pay packets – especially after more than a decade of lost pay.  

“Ministers should have announced a plan to get real wages rising – starting with a proper pay rise for all our key workers and the introduction of fair pay deals for low-paid industries. 

“And they should have delivered the long-awaited employment bill to ban zero hours contracts – as well as new, meaningful investment in skills and good green jobs of the future. 

“Without a plan to deliver decent work up and down the country, millions will struggle on, on low wages, and with poor health and prospects.” 

Recent polling published by the TUC found the British public’s number one priority for levelling up is more and better jobs.  

The TUC polling, conducted by YouGov, reveals that the most popular priority for levelling up, chosen by one in two Britons, is increasing the number and quality of jobs available.   

Increasing the number and quality of jobs is popular across the political spectrum. Half (49 per cent) of those who voted Conservative in the 2019 general election picked it as their top priority, along with more than half of Labour voters (56 per cent) and Lib Dem voters (54 per cent). 

Matthew Fell, CBI Chief Policy Director, said: “The Levelling Up White Paper is a serious assessment of the regional inequalities which have hamstrung the UK’s economic potential for generations.

“It offers a blueprint for how government can be rewired and an encouraging basis for how the private sector can bring the investment and innovation to start overcoming those deep-rooted challenges, and power long term prosperity for every community, wherever they live.

“The picture it paints of a reinvigorated 2030 UK can inspire public and private sector partners to unite on shared missions for improving health, wealth, growth and opportunity across the country.

“Crucially, it accepts the CBI view that business-driven economic clusters – enabling every region and nation to build its own unique competitiveness proposition – can be a catalyst which brings levelling up ambitions to life.”

University of Birmingham’s John Bryson on the Levelling Up announcement: “The UK has always suffered from uneven development and this is reflected in all measures of well-being – from salaries to place-based differences in mortality rates and morbidity.

“There is no country on this planet that does not suffer from some form of uneven place-based outcomes. The implication is that any attempt to remove place-based uneven outcomes will and must fail. The policy outcome might mean some alteration in the extent or degree of unevenness, but unevenness will continue to persist.

“No political party will be able to develop effective solutions to create a level playing field. Nevertheless, this does not mean that policies should not be designed to support and facilitate some form of more even development. However, the outcome will still be the persistence of uneven outcomes.  

“The key to any levelling-up agenda is to accept that every place is different and that there are multiple alternative place-based pathways; London can never become Newcastle and Newcastle can never become London.

“The levelling-up agenda needs to be positioned around a debate that is not based on closing the gap between the richer and poorer part of the country, but instead must be framed around facilitating place-based responsible inclusive prosperity.

“This must be the focus as any policy targeted at economic growth can never be sustainable. The levelling-up policy initiative ultimately must be designed to encourage inclusive carbon-light lifestyles. One implication is that levelling-up might also require some degree of levelling-down.” 

Campbell Robb, Nacro chief executive said: “We know tackling poverty and inequality is key to levelling up. For over 50 years Nacro has been embedded in communities helping some of our nation’s most vulnerable people through our housing, education, and justice services.

“We see a huge amount of unmet need in our country. We need radical change to the systems that support people and significant funding to address this need, not just ambitions and slogans.

“Until there is right support, opportunity, and funding in place for everyone to succeed regardless of the circumstances, we cannot truly claim to be levelling up”

Torsten Bell, Chief Executive of the Resolution Foundation, said: “We now know what levelling up is – George Osborne plus New Labour.

“The White Paper is all about combining the devolution of the former Conservative Chancellor, with the bigger and more activist state focused on deprived areas of the last Labour government.

“There is a strong case for both. Whether they can be delivered very much remains to be seen.”

Responding to the publication of Government’s Levelling Up the United Kingdom White Paper, Social Mobility Commission Chair Katharine Birbalsingh and Deputy Chair Alun Francis said: “We welcome the publication of the Levelling Up White Paper, and the fact that it gives a clear framework to address disparities between regions and communities.

“These communities are full of talented individuals and we must do everything we can to empower them to thrive. Each of the missions the paper sets out are hugely important, and it is crucial that checks and balances are in place to ensure that local government bodies, both existing and new, are held to account for their delivery.

“The Commission has been clear that social mobility must be a core objective of levelling up. We are pleased to see that equipping young people with the tools they need to succeed in life is at the heart of this strategy, and that it includes measures that can contribute to social mobility through every stage of a young person’s journey, from early childhood through education, training and employment.

“The missions are aspirational and pose the right questions, but are also hugely ambitious. The test will be in the detail and the implementation – not just boosting skills, but which skills will be taught and how; not just aiming for essential literacy and numeracy, but defining the most effective ways to achieve them.

“Ultimately, levelling up will be judged on how well it creates opportunities in places they did not exist before. A key test will be how we help those with the fewest opportunities find decent work – this is not just about stories of rags-to-riches. More still needs to be done to stimulate the creation of much-needed quality private sector jobs in the most deprived areas.

“As the Social Mobility Commission we stand ready to work with the government to flesh out that detail, advise on the best ways to make these missions a reality, and ensure that levelling up empowers people up and down the country to stand on their own two feet.”

Finally, after months of delays, the levelling up White Paper is out! So was it worth the wait?

Levelling Up White Paper leaves low paid workers behind

As the TUC has argued, you can’t level up without levelling up at work. In-work poverty, driven by the prevalence of low-paid and insecure work, is sky-high in every region and nation of the UK. This reflects the fact that low-paid sectors, such as retail and social care, are major employers in every area of the country (writes TUC’s JANET WILLIAMSON).

And more and better jobs is the public’s top priority for levelling up, with recent polling for the TUC conducted by YouGov finding that increasing the number and quality of jobs is seen as a priority for levelling up by one in two people from right across the political spectrum. Does the White Paper deliver this?

The White Paper sets out 12 missions – or aims – spanning living standards, R&D, transport, digital connectivity, education, skills, health, well-being, pride in place, housing, crime and local leadership. There is not a specific mission on work, but the living standards mission is “By 2030, pay, employment and productivity will have risen in every area of the UK, with each containing a globally competitive city, and the gap between the top performing and other areas closing.”

So, what is the plan for achieving this?

In a nutshell, it is to grow the private sector and improve its ability to create new and better paid jobs. There are five strategies to support this aim, all of which fall under a typical ‘industrial strategy’ umbrella: improving SME’s access to finance; boosting institutional investment, including from the Local Government Pension Scheme (LGPS) and the recently established National Infrastructure Bank; attracting foreign direct investment and using trade policy, in particular freeports, to boost investment; improving the diffusion of technologies and innovation; and supporting and growing the manufacturing sector.

There are some important questions to be answered in relation to some of these strategies; for example, it is vital that the LGPS is invested in the long-term interests of its members, without its funds being diverted towards other purposes. And each deserves proper examination in its own right.

But what they have in common is that all of them aim to create a better distribution of well-paid and highly skilled jobs around the country. This is needed – but what about the jobs that people are already in? There is no plan to address inequality within the labour market and nothing to level up work that is low paid and insecure.

The experience of London shows that the prevalence of high-paid jobs does not automatically lead to rising incomes for the wider community. Indeed, London has the highest rate of in-work poverty in the country, with people in low-paying service sector jobs priced out of housing and local amenities.

To level up, we must tackle low pay and insecurity head on, and focus on those sectors that need it most.

We need to strengthen the floor of employment protection for all workers by raising the minimum wage and tackling zero hours contracts. And the government should lead by example, giving public sector workers a proper pay rise and reversing the devastating cuts that public services have suffered in the last decade. Decent jobs should be a requirement of all government procurement, so that the power of government is used to drive up employment standards.

But we also need to change the way our economy works to hardwire decent work into business models and economic growth. Relying on the private sector to level up without changing how it works will fail. We need corporate governance reform to rebalance corporate priorities and give working people a fair share of the wealth they create. And we need a new skills settlement to give working people access to lifelong learning accounts and a right to retrain.

Levelling up at work means addressing the imbalance of power in the workplace

Working people need stronger rights to organise collectively in unions and bargain with their employer. Collective bargaining promotes higher pay, better training, safer and more flexible workplaces and greater equality – exactly what we need to level up at work. Unions should have access to workplaces to tell people about the benefits of unions, following the New Zealand model.

And to level up we must tackle entrenched low pay and poor conditions within sectors head on, bringing unions and employers together to set sectoral Fair Pay Agreements for low paid sectors, starting with social care.

Creating new and better jobs is important; but this Levelling Up White Paper has left those in low paid, insecure work behind.

Joint call for mandatory ethnicity pay gap reporting

The TUC, CBI and Equality and Human Rights Commission (EHRC) yesterday issued a joint call for the government to introduce mandatory ethnicity pay gap reporting. 

In a joint letter to the Chancellor of the Duchy of Lancaster, Michael Gove, the heads of the three organisations say: “Introducing mandatory pay reporting on ethnicity would transform our understanding of race inequality at work and most importantly, drive action to tackle it where we find it.” 

The letter – signed by TUC General Secretary Frances O’Grady, CBI Director General Tony Danker and EHRC chairwoman Baroness Kishwer Falkner – urges ministers to set out a clear timeframe for introducing ethnicity pay gap reporting to help “ethnic minorities reach their full potential in the workplace.” 

TUC General Secretary  Frances O’Grady  said:  “Everyone deserves the chance to thrive at work, and to have a decent, secure job they can build a life on. But the sad reality is that even today race still plays a significant role in determining people’s pay and career progression. 

“This problem isn’t going to magic itself away. Without robust and urgent action many BME workers will continue to be held back. 

“Unions stand ready to work with employers, regulators and government on practical steps to tackle inequality and discrimination in the workplace. 

“Mandatory ethnicity pay gap reporting is an obvious first step in helping to improve transparency and bring about change. 

“We need ministers to commit to introducing ethnicity pay reporting now and to bring forward a clear timetable for getting it into law.” 

The full letter reads: 

Dear Chancellor of the Duchy of Lancaster 

The case for mandatory ethnicity pay reporting 

We are writing to set out our shared priorities to the inter-ministerial group established to consider the recommendations of the Commission on Race and Ethnic Disparities. Respectively, we represent millions of workers, thousands of businesses, and enforce the Equality Act 2010 in Britain to ensure that people have equal access to and are treated fairly at work. 

We agree with the Commission’s statement that the report comes at a pivotal moment for the country, at a time when the inequalities facing ethnic minority people are under scrutiny. Outcomes at work are no exception. However we believe the report’s recommendations, in particular those related to pay disparities, could go further in order to effectively increase the participation and progression of ethnic minorities in the workplace and create a fairer Britain. 

Introducing mandatory pay reporting on ethnicity would transform our understanding of race inequality at work and most importantly, drive action to tackle it where we find it. This has been a longstanding goal for all of us. It will enable employers to identify, consider and address the particular barriers facing ethnic minorities in their workplace, and will complement and enhance the work many already do to address gender pay gaps under existing regulations. 

Together we’re asking the Government to make it mandatory for employers to report on their ethnicity pay gaps, building on the successful framework already in place for gender. Reporting, done well, can provide a real foundation to better understand and address the factors contributing to pay disparities. To further enable this, we also support the Commission’s recommendation that pay gap data should be supported by a narrative – comprised of key data, relevant findings and actions plans to address race inequalities. 

Some employers are already voluntarily reporting on their ethnicity data and taking action to address race inequality in their workplaces. While this is welcome and should continue to be supported in the interim, introducing mandatory ethnicity pay reporting will put greater focus on race at work, contribute to a greater number of employers reporting their ethnicity pay gap figures, and achieve the change across the labour market that is required. 

We urge Government to set out a clear timeframe to implement this and encourage you to work with us to develop the tools and resources required to ensure that employers are supported, and that workers are confident in disclosing data in advance of making reporting mandatory. 

In so doing, we firmly believe that this will help ethnic minorities reach their full potential in the workplace, make business more inclusive, and ensure Government has a rich source of robust evidence to inform future labour market and industrial strategies. 

Frances O’Grady, General Secretary, TUC 

Tony Danker, Director General, CBI 

Baroness Kishwer Falkner, Chairwoman, EHRC 

Boris Johnson: “We will come back from this devilish illness”

Boris Johnson set out his much-anticipated ‘road map’ in an address to the nation last night. While Johnson is Prime Minister of the United Kingdom, as he pointed out himself, much of his speech applies to England only:

It is now almost two months since the people of this country began to put up with restrictions on their freedom – your freedom – of a kind that we have never seen before in peace or war.

And you have shown the good sense to support those rules overwhelmingly.

You have put up with all the hardships of that programme of social distancing.

Because you understand that as things stand, and as the experience of every other country has shown, it’s the only way to defeat the coronavirus – the most vicious threat this country has faced in my lifetime.

And though the death toll has been tragic, and the suffering immense.

And though we grieve for all those we have lost.

It is a fact that by adopting those measures we prevented this country from being engulfed by what could have been a catastrophe in which the reasonable worst case scenario was half a million fatalities.

And it is thanks to your effort and sacrifice in stopping the spread of this disease that the death rate is coming down and hospital admissions are coming down.

And thanks to you we have protected our NHS and saved many thousands of lives.

And so I know – you know – that it would be madness now to throw away that achievement by allowing a second spike.

We must stay alert.

We must continue to control the virus and save lives.

And yet we must also recognise that this campaign against the virus has come at colossal cost to our way of life.

We can see it all around us in the shuttered shops and abandoned businesses and darkened pubs and restaurants.

And there are millions of people who are both fearful of this terrible disease, and at the same time also fearful of what this long period of enforced inactivity will do to their livelihoods and their mental and physical wellbeing.

To their futures and the futures of their children.

So I want to provide tonight – for you – the shape of a plan to address both fears. Both to beat the virus and provide the first sketch of a road map for reopening society.

A sense of the way ahead, and when and how and on what basis we will take the decisions to proceed.

I will be setting out more details in Parliament tomorrow and taking questions from the public in the evening.

I have consulted across the political spectrum, across all four nations of the UK.

And though different parts of the country are experiencing the pandemic at different rates.

And though it is right to be flexible in our response.

I believe that as Prime Minister of the United Kingdom – Scotland, England, Wales, Northern Ireland, there is a strong resolve to defeat this together.

And today a general consensus on what we could do.

And I stress could. Because although we have a plan, it is a conditional plan.

And since our priority is to protect the public and save lives, we cannot move forward unless we satisfy the five tests.

We must protect our NHS.

We must see sustained falls in the death rate.

We must see sustained and considerable falls in the rate of infection.

We must sort out our challenges in getting enough PPE to the people who need it, and yes, it is a global problem but we must fix it.

And last, we must make sure that any measures we take do not force the reproduction rate of the disease – the R – back up over one, so that we have the kind of exponential growth we were facing a few weeks ago.

And to chart our progress and to avoid going back to square one, we are establishing a new Covid Alert System run by a new Joint Biosecurity Centre.

And that Covid Alert Level will be determined primarily by R and the number of coronavirus cases.

And in turn that Covid Alert Level will tell us how tough we have to be in our social distancing measures – the lower the level the fewer the measures.

The higher the level, the tougher and stricter we will have to be.

There will be five alert levels.

Level One means the disease is no longer present in the UK and Level Five is the most critical – the kind of situation we could have had if the NHS had been overwhelmed.

Over the period of the lockdown we have been in Level Four, and it is thanks to your sacrifice we are now in a position to begin to move in steps to Level Three.

And as we go everyone will have a role to play in keeping the R down.

By staying alert and following the rules.

And to keep pushing the number of infections down there are two more things we must do.

We must reverse rapidly the awful epidemics in care homes and in the NHS, and though the numbers are coming down sharply now, there is plainly much more to be done.

And if we are to control this virus, then we must have a world-beating system for testing potential victims, and for tracing their contacts.

So that – all told – we are testing literally hundreds of thousands of people every day. (? – Ed.)

We have made fast progress on testing – but there is so much more to do now, and we can.

When this began, we hadn’t seen this disease before, and we didn’t fully understand its effects.

With every day we are getting more and more data.

We are shining the light of science on this invisible killer, and we will pick it up where it strikes.

Because our new system will be able in time to detect local flare-ups – in your area – as well as giving us a national picture.

And yet when I look at where we are tonight, we have the R below one, between 0.5 and 0.9 – but potentially only just below one.

And though we have made progress in satisfying at least some of the conditions I have given.

We have by no means fulfilled all of them.

And so no, this is not the time simply to end the lockdown this week. Instead we are taking the first careful steps to modify our measures.

And the first step is a change of emphasis that we hope that people will act on this week.

We said that you should work from home if you can, and only go to work if you must.

We now need to stress that anyone who can’t work from home, for instance those in construction or manufacturing, should be actively encouraged to go to work. (NB: England only – Ed.)

And we want it to be safe for you to get to work. So you should avoid public transport if at all possible – because we must and will maintain social distancing, and capacity will therefore be limited.

So work from home if you can, but you should go to work if you can’t work from home.

And to ensure you are safe at work we have been working to establish new guidance for employers to make workplaces COVID-secure.

And when you do go to work, if possible do so by car or even better by walking or bicycle. But just as with workplaces, public transport operators will also be following COVID-secure standards.

And from this Wednesday, we want to encourage people to take more and even unlimited amounts of outdoor exercise.

You can sit in the sun in your local park, you can drive to other destinations, you can even play sports but only with members of your own household. (NB this only applies in England – Ed.)

You must obey the rules on social distancing and to enforce those rules we will increase the fines for the small minority who break them.

And so every day, with ever increasing data, we will be monitoring the R and the number of new infections, and the progress we are making, and if we as a nation begin to fulfil the conditions I have set out, then in the next few weeks and months we may be able to go further.

In step two – at the earliest by June 1 – after half term – we believe we may be in a position to begin the phased reopening of shops and to get primary pupils back into schools, in stages, beginning with reception, Year 1 and Year 6 (NB: England only – Ed.)

Our ambition is that secondary pupils facing exams next year will get at least some time with their teachers before the holidays. And we will shortly be setting out detailed guidance on how to make it work in schools and shops and on transport.

And step three – at the earliest by July – and subject to all these conditions and further scientific advice; if and only if the numbers support it, we will hope to re-open at least some of the hospitality industry and other public places, provided they are safe and enforce social distancing.

Throughout this period of the next two months we will be driven not by mere hope or economic necessity. We are going to be driven by the science, the data and public health.

And I must stress again that all of this is conditional, it all depends on a series of big Ifs. It depends on all of us – the entire country – to follow the advice, to observe social distancing, and to keep that R down.

And to prevent re-infection from abroad, I am serving notice that it will soon be the time – with transmission significantly lower – to impose quarantine on people coming into this country by air.

And it is because of your efforts to get the R down and the number of infections down here, that this measure will now be effective.

And of course we will be monitoring our progress locally, regionally, and nationally and if there are outbreaks, if there are problems, we will not hesitate to put on the brakes.

We have been through the initial peak – but it is coming down the mountain that is often more dangerous.

We have a route, and we have a plan, and everyone in government has the all-consuming pressure and challenge to save lives, restore livelihoods and gradually restore the freedoms that we need.

But in the end this is a plan that everyone must make work.

And when I look at what you have done already.

The patience and common sense you have shown.

The fortitude of the elderly whose isolation we all want to end as fast as we can.

The incredible bravery and hard work of our NHS staff, our care workers.

The devotion and self-sacrifice of all those in every walk of life who are helping us to beat this disease.

Police, bus drivers, train drivers, pharmacists, supermarket workers, road hauliers, bin collectors, cleaners, security guards, postal workers, our teachers and a thousand more.

The scientists who are working round the clock to find a vaccine.

When I think of the millions of everyday acts of kindness and thoughtfulness that are being performed across this country.

And that have helped to get us through this first phase.

I know that we can use this plan to get us through the next.

And if we can’t do it by those dates, and if the alert level won’t allow it, we will simply wait and go on until we have got it right.

We will come back from this devilish illness.

We will come back to health, and robust health.

And though the UK will be changed by this experience, I believe we can be stronger and better than ever before. More resilient, more innovative, more economically dynamic, but also more generous and more sharing.

But for now we must stay alert, control the virus and save lives.

Thank you very much.

Keir Starmer, Leader of the Labour Party, responding to the Prime Minister’s statement, said: “This statement raises more questions than it answers, and we see the prospect of England, Scotland, Wales and Northern Ireland pulling in different directions.

“The Prime Minister appears to be effectively telling millions of people to go back to work without a clear plan for safety or clear guidance as to how to get there without using public transport.

“What the country wanted tonight was clarity and consensus, but we haven’t got either of those.”

Dame Carolyn Fairbairn, CBI Director General, said: “Today marks the first glimmer of light for our faltering economy. A phased and careful return to work is the only way to protect jobs and pay for future public services. The Prime Minister has set out the first steps for how this can happen.

“Businesses are keen to open and get our economy back on its feet. But they also know putting health first is the only sustainable route to economic recovery. The message of continued vigilance is right.

“This announcement marks the start of a long process. While stopping work was necessarily fast and immediate, restarting will be slower and more complex. It must go hand-in-hand with plans for schools, transport, testing and access to PPE. Firms will want to see a roadmap, with dates they can plan for.

“Success will rest on flexibility within a framework: clear guidance which firms can adapt for their particular circumstances. Financial support will also need to evolve for sectors moving at different speeds – some remaining in hibernation, while others get ready to open safely.

“The coming weeks should see business, government and employee representatives working together as part of a national effort built on openness and trust. This is the only way to revive the UK economy and protect both lives and livelihoods.”

Responding to the statement by the prime minister, the leader of the Unite union has called for “clarity and caution” as the country continues to combat the coronavirus which has left the UK with one of the worst death tolls in Europe.

Len McCluskey, Unite general secretary, said: “The decisions taken by the UK government in the coming days will shape the health and wealth of this country, not just in the immediate term but for generations to come.

“It is absolutely vital then that the UK government proceeds with total clarity and maximum caution as it works to pull the country out of lockdown – and that it gets the sequencing of the return to work right.

“People cannot get to work safely unless there is safe transport for them to use. Yet there is now a real risk that in a few hours’ time, workers will be cramming onto public transport, putting at risk their lives and those of others. This has not been  thought through and the failure to do so places working people in danger.

“Similarly, issuing safety guidance to employers instead of definite, mandatory instructions is not acceptable. This runs a huge risk that some employers will follow the advice while others do not, and we urgently need to hear more from government about how it will install the inspection and enforcement systems necessary to support safe working.

“Unions like Unite have a wealth of health and safety expertise and we are already working with responsible employers to ensure that working people can be confident that they can be safe both at work and on the way to work.

“There is a standing army of tens of thousands of trades union safety representatives that could be deployed in a national effort to unlock the economy in a safe, responsible way. To fail to enlist this pool of people expert in keeping people safe at work is simply bewildering.

“We are very concerned that at the very point we need to build clarity and confidence, doing everything possible to avert a second spike, that this next phase is unfolding in a jumbled, confusing manner.

“Of course, we want to get the economy back on its feet as soon as possible but with such enormous sacrifices given by so many already, we have to honour those who have lost their lives along with those who are caring for us through this crisis by keeping people safe and by building a future of which this country can be proud.

STUC General Secretary Designate Roz Foyer said: “The Prime Minister’s management of this crisis has been so woeful that few will have any confidence in what he has laid out this evening.

“This is a three-month road map in the hands of a government that doesn’t even seem to know what it is doing from one day to the next.

“Boris Johnson has apparently announced the return to work of hundreds of thousands of non-essential workers in areas such as construction and manufacturing. In so doing he in endangering people’s lives. The Government hasn’t even published guidance on how workers will be kept safe.

“His statement that all workers who cannot work from home should go to work will cause incredible confusion and massive concern. We urgently need clarity on how workers who cannot work from home and cannot safely attend their workplace will be treated.

“And at no point did he make it clear that he was talking about England only, rather than the whole of the UK. The strain on the delivery of a four-nation approach now seems intolerable.

“Our five red lines for relaxing lockdown remain the same and apply just as much for the Scottish Government as they do Westminster.

“We need to be far further ahead in testing, have a proper contact tracing system in place, have ready supplies of PPE for any workplaces that is to re-open, and have enforcement measures in place. Each work sector must be treated according to its distinct characteristics and governed by guidelines agreed with unions. And there must be no implied threat of loss of income for workers not able to return to work. The job retention scheme must stay in place with no further reductions in levels of pay support.

“As we have made clear, we believe the Scottish Government’s more safety-first approach is broadly the right one, particularly as doubts about the R value in Scotland persist.

“We have also welcomed their willingness to negotiate the sector by sector guidance with unions. However as ongoing failures on PPE, testing and guidance for care homes show, there is not an ounce of room for complacency.

“Unions will test the strategy of the Scottish Government every step of the way and fight to ensure that the safety of workers and of the wider public remains that number one concern.”

The Prime Minister will reveal more detail when he addresses parliament today and a guidance document will be produced this afternoon.

Boris Johnson will also take questions from the public when he leads the daily press briefing at 5.30pm.

Comments on the general election result

With all the votes now counted, the Conservatives now have a clear majority at Westminster. They have 365 seats, while the Labour Party had a disastrous night – their worst since the 1930s.

But while England voted to ‘get Brexit done’, it was a markedly different story north of the border where the SNP cemented their position as the dominant force in Scottish politics, winning 48 of the 59 seats- a rise of 13. Continue reading Comments on the general election result

YOU’RE HIRED: Soft skills are key, say business leaders

job-interview

As millions of young people across Edinburgh await their exam results and prepare to enter the world of work, new research from Scottish Gas has highlighted that soft skills and personality are top attributes the majority of Scottish business leaders look for when hiring.

Continue reading YOU’RE HIRED: Soft skills are key, say business leaders