The 2022-2023 Scottish Budget will help transition Scotland to becoming more prosperous, fairer and greener, Finance Secretary Kate Forbes has said.
Speaking ahead of delivering the Budget to Parliament today, Ms Forbes said the Scottish Government will deliver a bold and ambitious package of public investment that delivers on the priorities which matter most to the people of Scotland.
Ms Forbes said: “The Scottish Budget will provide taxpayers with stability and support, set out clearly how we will accelerate our Covid recovery, and crucially, how our spending plans will set Scotland on a new ambitious path.
“It has been a challenging Budget due to the continuing impact of the pandemic, and the uncertainty and worry that Covid poses for us all. This has been confounded by the UK Government’s decision to remove necessary Covid consequential funding at a time when we undeniably need to help our public services.
“The Scottish Government has taken spending decisions that prioritise supporting people and our vital public services through the twin crises of Covid and the cost of living. It is a budget for Scotland’s future – one that will help us secure a fairer, greener and more prosperous country.”
Responding to the Scottish Budget, Tracy Black, CBI Scotland Director, said:“While the Finance Secretary has outlined some helpful interventions for business, firms that have been working tirelessly to get back on their feet after two miserable years will be left with little to get excited about.
“The removal of the business rates cliff edge in April for hospitality, retail and tourism firms will be welcomed, however many will be disappointed that the government hasn’t gone further – particularly as uncertainty around Omicron gathers pace.
“Increased funding for employability is clearly a step in the right direction but much more detail is needed on how skills funding will help firms address immediate challenges. Ultimately, greater ambition is needed on upskilling and retraining if we’re to ensure workers are equipped with the skills they need for a modern economy.
“On green investment there were some welcome announcements around green jobs and just transition. However, failing to use the non-domestic rates system to incentivise private sector investment in low carbon infrastructure feels like a missed opportunity that could have helped Scotland push-on towards its net zero target.
“Overall, business shares the Scottish Government’s vision for a fairer, greener and more prosperous economy. Firms will be keen to see how the forthcoming National Economic Transformation Strategy turns ambition into action; setting Scotland on a path towards competitiveness, dynamism and productivity growth – which is the only sustainable route to higher living standards.”
Scottish workers bitterly disappointed by pay deal as STUC insists ‘budget will result in robbing Peter to pay Paul’
The Scottish Trades Union Congress (STUC) acknowledged the increase in public sector pay floor to £10.50 and insisted that pay rises must be fully funded by Scottish Government to avoid cash strapped councils having to make other cuts to pay the increased rate.
STUC General Secretary Roz Foyer said: “Workers across Scotland will be bitterly disappointed as they hear about the pay cuts announced today. Below inflation pay increases do nothing to help people deal with escalating costs this winter. Councils will have to rob Peter to pay Paul as services could be cut to meet the gaps in funding.
“There is a desperate need to back our public services. Huge gaps in funding in the NHS and social care have left some of the most vulnerable people in our communities without the treatment and services they urgently need. The Scottish Government have failed to take the opportunity before them to step up and back public sector workers.”
COSLA released its ‘Budget Reality’ document last night in response to the Scottish Budget.
COSLA’s Resources Spokesperson Councillor Gail Macgregor said that COSLA Leaders will meet today to discuss the implications for Local Government and respond more fully then.
In a brief statement Councillor Macgregor, said: “Our ‘Budget Reality’ document is important as it sets out the facts about the Local Government Settlement.
“It appears to be a disappointing budget for the communities that we represent, as it does not give Local Government what we need to survive and nor does it meet our campaign aspiration to help those communities to ‘Live Well Locally’,
“Once more, our core financial settlement has been hit.
“That said, we will take time to consider the finer details of today’s announcement and the full implications for both ourselves and our communities.
“As a membership organisation, our Council Leaders will come together virtually tomorrow to consider the implications, before we make a more formal response following that meeting.”
Responding to the Scottish Government’s budget, which was published today, Peter Kelly (Director, Poverty Alliance), said: “Today’s Scottish Government budget contains a number of welcome commitments.
“Doubling the Scottish Child Payment from April, as we and so many others across Scotland campaigned hard for, will help stem the rising tide of poverty across the country. Introducing free bus travel for young people under 22 is also a positive step toward a transport system that can tackle inequality.
“But with over one million people in Scotland living in the grip of poverty, it is clear that we cannot let up. In 2022 we must see these actions built upon, with further steps taken to build a Scottish social security system that unlocks people from poverty.
“We must also go further in redesigning our public services, like by extending free bus travel available to all under 25s and to everyone on low incomes.”
Scottish debt help charity welcomes the doubling of the Scottish Child Payment in the Scottish Budget
Child poverty is rising in every local authority in Scotland. Even before the pandemic, one in four children in Scotland were growing up in poverty and food bank use has increased by 63% over the last five years.
The pandemic has made things even more difficult for those already struggling as it has disproportionately impacted people living on low incomes.
CAP Scotland National Director, Emma Jackson, says, “We are delighted to hear about the Scottish Government’s commitment to double the Scottish Child Payment for families with children under the age of six.
“This is the single most impactful action that will take us four percentage points closer to reaching our interim child poverty targets and signals that ending child poverty will be a defining priority for Scotland. It is encouraging to see Scotland leading the way with this unique payment for families.
“This additional income will make a significant difference for the families we work with at Christians Against Poverty (CAP) Scotland. Families like Holly’s, who experienced problem debt after an overnight reduction in hours at work. Coupled with ill health and the challenges of being a single parent, debt began to deeply impact all aspects of Holly’s life.
“Through working with CAP Scotland, Holly was able to access the right debt solution for her and begin a debt free fresh start. The additional £40 per month will mean not having to worry as much about keeping her home warm for her and her son or buying him more food.
“Yet the very real challenges of making a low income stretch far enough to meet essential living costs remains. We welcome the news of free bus travel for those under the age of 22, the extension of free school meals to older age groups and the accelerated roll out of the Scottish Child Payment to include all children under the age of 16 by the end of next year. However, we would urge the Scottish Government to do all it can to bring the roll out of the Scottish Child Payment forward.
“With the rising cost of living and the end to the Universal Credit uplift, many families are facing a significant struggle this winter. We’re concerned that even more people will be pushed into poverty. We are keen to hold the Scottish Government to their commitment that “we can’t leave anyone behind”.
“The announcements in today’s budget leave a risk that key groups could experience further hardship. For too many households we work with at CAP, like single adult households, there is insufficient income to cover everyday essentials – rent, food, fuel, toiletries – and borrowing money is often a necessity to survive. No one should be forced into problem debt in order to survive.”
The Scottish budget 2022-23 includes £150 million for walking, wheeling and cycling, an increase of £19.6m.
Living Streets Scotland, part of the UK charity for everyday walking has welcomed the significant funding and the impact it will have to make cleaner and healthier forms of transport.
Stuart Hay, Director, Living Streets Scotland said: “Today marks a fundamental and positive change in how transport is funded with a much greater focus on people walking, wheeling and cycling.
“Walking accounts for 22% of all trips, so it’s great to see spending levels reflecting this reality, switching from a focus on new road schemes that have resulted in congestion and emissions.
“The £150 million investment will make it easier, safer and more attractive for more people to choose cleaner ways to travel. This is vital in the face of a climate emergency and a crisis in public health brought about by inactivity.
“This level of investment means new projects, such as national action to get more children walking to school are possible. It also makes plans to cut traffic on Scotland’s roads and streets by 20% more realistic.”
Responding to the Scottish Government’s Budget for 2022-23, Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce said:“Scotland’s economy is recovering from the COVID-19 pandemic faster and stronger than many expected, and this budget offered the Scottish Government an opportunity to accelerate this return to growth.
“Whilst there was much to welcome in this budget the Scottish Government should have gone further to support Scotland’s businesses, the drivers of economic growth.
“Many economic deterrents as a result of the pandemic remain in place, impacting on footfall on our town and city centre high streets, driving down demand in our vital tourism and aviation sectors, and the looming threat of a return to greater level of restrictions is holding back investment. The Scottish Government should have provided assurances for businesses that targeted financial support will be made available to those ongoing affected sectors to deliver a clear pathway to recovery.”
On Non-Domestic Rates:
“Businesses will welcome the extension of rates reliefs afforded to properties in the retail, leisure, and hospitality sectors for an additional three months, however, this should have gone further to give businesses the time they need to recover from this incredibly challenging period.
“Scotland’s town and city centres have already lost thousands of businesses over the past twenty months and prolonged periods of home working have made the trading conditions for brick-and-mortar retailers tougher than ever, and many ratepayers will question if this extension goes far enough to support them.
“It was also disappointing that the Scottish Budget failed to confirm whether or not the long awaited NDR Revaluation due to take place in 2023 will go ahead as planned.”
Training, Skills and Supply Chain:
“Scotland’s businesses are still experiencing challenges through supply chain connectivity problems, rising cost prices, inflationary pressures, and recruitment difficulties.
“Additional funding for training interventions at all levels is welcome news and investment in Scotland’s workforce drive up business capacity and improve investment opportunities.
“Cost pressures and supply chain challenges require urgent action from government and whilst we await further details in the forthcoming National Economic Transformation Strategy, it’s important Scottish Government act now, collaborate with business and begin to resolve these issues as a priority for our economy.”
Energy and Just Transition:
“The energy sector remains a critical part of Scotland’s economy and the funding commitments in the budget to support a Just Transition are a step in the right direction.
“To meet Scotland’s Net Zero ambitions and secure the future of jobs in the energy sector and North and North-East though, this investment and funding needs to continue to be stepped up, at pace, in partnership with industry to enable businesses to pivot successfully.”
First Minister lays out her Programme for Government 2021/22
Leading Scotland safely out of the pandemic, urgently confronting climate change, driving a green, fair economic recovery, and boosting opportunities for children and young people are among the core priorities in this year’s Programme for Government (PfG), published yesterday.Oh … and there’s a referendum in there, too …
The programme sets out plans for a record increase in frontline health spending, new legislation for a National Care Service, a system providing low-income families with free childcare before and after school and during holidays, and actions to drive forward Scotland’s national mission to end child poverty.
The programme also includes plans to help secure a just transition to net zero – creating opportunities for new, good and green jobs, making homes easier and greener to heat, and encouraging people to walk, wheel or cycle instead of driving.
Speaking in Parliament, the First Minister said: “This programme addresses the key challenges Scotland faces, and aims to shape a better future.
“It sets out how we will tackle the challenge of Covid, and rebuild from it. It outlines how we will address the deep-seated inequalities in our society. It shows how we will confront with urgency the climate emergency, in a way that captures maximum economic benefit. And it details the steps we will take to mitigate, as far as we can, the damaging consequences of Brexit while offering a better alternative.
“In the face of these challenges, our ambition must be bold. This programme sets out clear plans to lead Scotland out of the greatest health crisis in a century and transform our nation and the lives of those who live here.
“We will deliver a National Care Service; double the Scottish Child Payment; and invest in affordable, energy efficient homes and green travel. We will ensure that businesses have the support, and people have the skills, to succeed in the low carbon economy of the future. We will show global leadership in tackling the climate crisis. And we will offer people an informed choice on Scotland’s future.
“To that end, I can confirm that the Scottish Government will now restart work on the detailed prospectus that will guide the decision. The case for independence is a strong one and we will present it openly, frankly and with confidence and ambition.
“This programme addresses our current reality, but it also looks forward with confidence and ambition to a brighter future. It recognises that out of the many challenges we currently face, a better Scotland – as part of a better world – is waiting to be built.”
Building on the progress from the first 100 days of this government, with the co-operation agreement with the Scottish Green Party at its heart, the PfG sets the scene for the next five years.
Key commitments for over the course of this Parliament include:
increasing frontline health spending by 20%, leading to an increase of at least £2.5 billion by 2026-27
undertaking the biggest public service reform since the founding of the NHS – the creation of a National Care Service – with legislation brought forward by June next year
improving national wellbeing with increased direct mental health investment of at least 25%, with £120 million this year to support the recovery and transformation of services
investing £250 million to tackle the drugs deaths emergency over the next five years
expanding the Scottish Child Payment to under-16s by the end of next year and doubling it to £20 a week as soon as possible after that, with a £520 bridging payment given to every child in receipt of free school meals this year
investing a further £1 billion to tackle the poverty-related attainment gap and providing councils with funding to recruit 3,500 additional teachers and 500 classroom assistants
providing free childcare to low income families before and after school and during holidays, and expanding free early learning and childcare to one and two year olds
investing £100 million over the next three years to support frontline services for preventing violence against women and girls
providing £1.8 billion to make homes easier and greener to heat, as part of a commitment to decarbonise 1 million homes by 2030
ensuring that at least 10% of the total transport budget goes on active travel by 2024-25, helping more people to cycle, wheel or walk instead of drive
delivering a revolution in children’s rights, including across the justice system
supporting a just transition to a low-carbon economy for people and businesses, including a £500 million Just Transition Fund for the North East and Moray
investing an additional £500 million to support the new, good and green jobs of the future, including by helping people access training
delivering 110,000 affordable homes by 2032 and investing an additional £50 million to tackle homelessness and rough sleeping
taking forward the democratic mandate for a referendum on independence to be held within this Parliament and, if the Covid crisis is over, within the first half of this Parliament, while providing the people of Scotland with the information they need to make an informed choice on their future.
Commenting on yesterday’s Programme for Government announcement, Chris Birt, Associate Director for Scotland at the Joseph Rowntree Foundation said:“Alarm bells should already be ringing in both the Scottish Government and Parliament that we are currently set to miss our child poverty targets, with no clear plan on how to achieve them.
“The Programme for Government published today pushes that plan further down the road, both to the budget later in the year and next year’s Tackling Child Poverty Delivery Plan.
“Time is running out on the targets. Families on low incomes across Scotland are experiencing growing financial pressure and uncertainty . They will hope the commitment to double the child payment “sooner rather than later” happens very soon and that our national mission to end child poverty gathers urgency and scale.”
The STUC welcomed the Scottish Government’s Programme for Government, specifically highlighting the commitments from the First Minister to implement national bargaining in the care sector, additional funding for the health service, gender recognition reform and justice for Scotland’s miners wrongfully arrested in the 1980s.
STUC General Secretary, Roz Foyer said: “Reform of our care sector cannot come quick enough and the STUC will engage fully in this legislation, campaigning for a National Care Service based on sectoral collective bargaining and not for profit delivery.
“The commitment of the First Minister to National Bargaining is therefore very welcome. However, the £800 million additional funding announced over the course of the Parliament is less than a quarter of the expenditure which the Feeley Review said was necessary for the social care sector.
“Yet we still have concerns that the Programme of Government tries too hard be all things to all people. It is simply not credible to raise the levels of investment required to tackle climate change, reduce inequality and create jobs while at the same time boasting about the lowest business taxes in UK and freezing income tax rates for the duration of the Parliament.
“The same lack of ambition is reflected in today’s Scottish Government response to the report of the Just Transition Commission which leaves much to be desired on future job creation and ensuring the burden of climate change is not carried by workers and the less well off.
“Fighting discrimination and inequality is at the heart of trade unions, we know trans people are some of the most disadvantaged and discriminated people in Scotland and the gender recognition bill is therefore extremely welcome in enabling trans people to access their human rights.
“Finally, I welcome the proposed Miners’ Strike Pardon Bill. It has been all too clear for decades that the miners were the victims of a politically inspired political attack and that organs of the state, including the police, were used to repress their legitimate industrial action.
“This Bill will help provide some relief to the thousands of lives were wrecked by wrongful arrest and is a testament to years of campaigning by working class families who refused to give up.”
GMB Scotland Secretary Louise Gilmour said:“The need to tackle the crisis in care is accepted, but the challenge is to end years of exploitation by giving care workers substantial pay increases. That’s how we’ll confront the understaffing crisis and transform the sector.
“It’s why GMB is campaigning for £15 an hour minimum for care workers. The prospect of staff remaining mired in wages of just under or over £10 an hour isn’t credible.
“And there is a growing consensus supporting that view, including among Cabinet Secretaries as the Greens committed to a £15 minimum in their recent manifesto, so we need to make it happen.
“If we are prepared to be bold and deliver proper value for workers across the social care sector then there is a huge opportunity to be grasped, everyone will benefit and Scotland will be fairer for it.”
Joanne Smith, policy and public affairs manager for NSPCC Scotland, said: “Recovery and reform are very much needed as we move forward from the pandemic, and this year’s Programme for Government is the first step in this journey.
“For children in Scotland to have the best start in life, it is vital that all families can access holistic support, where and when they need it, and so we are heartened by the Scottish Government’s announcement of a Whole Family Wellbeing Fund.
“In line with the Promise’s recommendations we would like to see that national spending prioritises early, preventative support for families, therefore stripping out demand for crisis-led services.
“We are also greatly encouraged by the Scottish Government’s commitment to review and redesign the Children’s Hearing System. Through our work with very young children and families in Glasgow, we see the limitations of current justice processes in meeting the distinct needs of infants and their families.
“Given that around a third of children who come into care in Scotland are under the age of five, we need to ensure justice processes are better aligned with infants’ developmental timescales. We look forward to working alongside the Review team to ensure that the rights of infants are upheld throughout the process.”
Mary Glasgow Chief Executive of the charity Children 1st said: “Today’s Programme for Government has rightly prioritised the right of children and their families to know they can access the help and support they need whenever they need it.
“Children 1st have long called for a transformation in the support available to families, which must be based on learning from the – often difficult – experiences of children and their families when they have needed practical, emotional or financial help.
“The proposed £500m investment in a ‘Whole Family Wellbeing Fund’ is a hugely welcome step forward and we are committed to working alongside children and their families, and the Scottish Government, to turn this significant investment into practical action.”
Tracy Black, CBI Scotland Director, said:“With Glasgow hosting COP26 later this year, the Scottish Government is right to focus on its plans for a net zero economy. Yet given the need to cement Scotland’s economic recovery post-pandemic, businesses will feel there ought to have been a greater focus on boosting growth. While there were encouraging mentions of greater access to finance, the devil will be in the detail.
“Firms are already decarbonising their operations, and, by working alongside government, can help urgently transform net zero ambitions into action. Reforming the planning and business rates systems – enabling much needed in investment in low carbon infrastructure – would help achieve ambitious climate targets.
“The First Minister is also right to highlight that COVID hasn’t gone away. Scottish firms have worked tirelessly throughout the crisis to keep staff and customers safe. Businesses are not calling for a rushed return to the workplace, though employers will rightly be speaking with their employees about a gradual return in line with the latest guidance.
“As the economy reopens, skills shortages remain a key concern, so employers will be frustrated not to hear more about plans for upskilling and retraining.
“Business investment is absolutely vital to Scotland’s economic recovery, and the government should do everything in its power to attract – not repel – investment and the very best talent. Ultimately, by working more closely with business to create sustainable economic growth, ministers will be able to achieve their goals of improving people’s living standards and public services.”
STUC General Secretary Roz Foyer has written to CBI Scotland calling on the organisation to reconsider its public call for a return to offices for non-essential workers.
The letter takes the business organisation to task for contradicting the Scottish Government’s view (shared by the STUC) that there should be a pause in any return to offices where working from home is possible:
First Minister confirms relaxation of restrictions from Monday
The legal requirement for physical distancing and limits on gatherings will be removed on 9 August when all venues across Scotland are able to re-open.
Some protective measures will stay in place such as the use of face coverings indoors and the collection of contact details as part of Test and Protect. Capacity limits of 2000 people indoors and 5000 people outdoors will also remain in place although some exceptions may be possible on a case by case basis. These will be reviewed on a three weekly basis to ensure they remain proportionate.
Adults identified as close contacts of someone who has tested positive for Covid-19 will also no longer be automatically required to self-isolate for 10 days from 9 August. Anyone who is double-vaccinated with at least two weeks passed since their second dose and who has no symptoms will be able to end self-isolation if they return a negative PCR test.
The same conditions will also apply to anyone aged between five and 17 years old, even if they have not been vaccinated. The requirement to take a PCR test will not apply to children under the age of five.
Test and Protect will also implement revised guidance for under 18s. This means that the blanket isolation of whole classes in schools will no longer happen and a targeted approach, that only identifies children and young people who are higher risk close contacts, will be adopted.
Fewer young people will have to self-isolate, and most will be asked to self-isolate for a much shorter period of time. To allow time to monitor the impacts of these changes, the majority of the mitigations that were in place in schools in the previous term will be retained for up to six weeks. This will help support a safe and sustainable return to education after the summer break.
While the gateway condition on vaccination has been met, with 92% of those over the age of 40 protected by two doses of the vaccine, there are still many more people who have not had the vaccine, cannot have it, or are not yet eligible for it.
Invitations for vaccines are now going out to 12 to 17 year olds with specific health conditions that make them more vulnerable to Covid. This follows the recent advice from the Joint Committee on Vaccination and Immunisation. We expect to have offered first doses to this group by the end of August.
First Minister Nicola Sturgeon said: “The move beyond level 0 will entail the lifting of most of the remaining legally imposed restrictions – most notably, on physical distancing and limits to the size of social gatherings. It also means that from 9 August, no venues will be legally required to close.
“This change is significant and it is hard-earned. The sacrifices everyone has made over the past year and a half can never be overstated. However, while this move will restore a substantial degree of normality, it is important to be clear that it does not signal the end of the pandemic or a return to life exactly as we knew it before Covid struck.
“Declaring freedom from, or victory over, this virus is in my view premature. The harm the virus can do, including through the impact of long Covid, should not be underestimated. And its ability to mutate may yet pose us real challenges.”
Gregor Scotland, CBI Scotland Head of Policy, said:“Moving beyond level zero to remove the vast majority of Covid restrictions creates a much-needed platform for kickstarting Scotland’s economic recovery.
“Ending social distancing requirements is a vital step that boosts business capacity just when firms need it most. For struggling retailers, getting more customers through the door is just the tonic they need to make the most of the final weeks of summer and trade their way to recovery.
“There will also be a sigh of relief that double-jagged staff will finally no longer have to self-isolate if they test negative once contacted by NHS Test & Protect. Across the economy absences have been hitting businesses hard, as well as exacerbating existing skills shortages that threaten to put the brakes on recovery.
“However, with so many restrictions lifting, businesses will be confused why the Scottish Government is continuing to advise people to work from home.
“The reality is that many firms are well-advanced in their plans and are proceeding with hybrid working models, just as the government advises. It’s up to employers to engage positively with staff to shape new ways of working that work for them, while remaining as safe as possible.
“The Scottish Government should now work with business to instil a sense of confidence in the reopening. Only by bolstering public and business confidence can we really begin to live with the virus and deliver a strong recovery.”
STUC General Secretary Roz Foyer said: “There is a long way to go before this virus is behind us. Vaccination does not provide total security from infection and we know that long COVID can affect people of all ages.
“Using terminology such as beyond level zero is confusing. This along with some parts of the media’s irresponsible use of the term ‘Freedom Day’ risks sending messages that all caution can be put to one side whereas in reality there are a whole range of mitigations and safety measures that remain in place.
“We recognise that the First Minister has tried to remain cautious despite some significant moves to open up Scotland socially and economically. We are supportive of keeping mitigation measures such as face coverings and social distancing. Many workers particularly in areas such as health and social care remain concerned at the lifting of self-isolation restrictions for the double vaccinated – both workers and the wider public. We know that the asymptomatic can still transmit the virus.
“As we move away from legal requirements to recommended approaches the duty on employers to keep staff and the general public safe will increase. There is a clear steer from the First Minister that there should be no rush back to office working.
“This is particularly important in larger offices with poor ventilation and high staff numbers. We cannot overestimate the importance of requiring decent ventilation in schools, colleges, universities and other places of work.
“We still need rigorous risk assessments and urge all employers to consult with unions and workers and to be sensitive of the very genuine fears some workers will have. In this, both governments have a role to play. Ongoing support for workers and businesses is vital to persuade employers not to become less cautious and open up too quickly.
“We support the First Ministers call for an extended and more generous furlough scheme and for the Scottish Government to intervene to continue business support.”
City of Edinburgh council leader Council Leader Cllr. Adam McVey said: “The latest announcement from the First Minister will be extremely welcome news for many, not in the least the businesses across the city who have shown an enormous amount of skill and resilience over the last year and a half.
“The removal of physical distancing and changes to rules on self-isolation will of course impact on Council services too and allow the return of more normality to local services. Over the coming days and weeks we’ll be drawing up plans to support services to respond to this and to further assist our economy’s recovery.
“However, the COVID virus is very much still with us and I appreciate the First Minister’s careful and steady approach. We need to do everything we can to limit its continued spread and we all have our part to play.
“For everyone eligible to get vaccinated, please do so if you haven’t yet. With vaccinations now being given to everyone aged 18 and over, it’s essential that young people get theirs as well if we are to keep enjoying this gradual return to normality.
“The NHS has made getting a vaccination quick and easy wherever you are in the city. We’ll be working with the NHS to drive home the importance of getting both jabs and helping inform people about the easiest way to get them.”
Additional Information:
Further detail about measures announced today and updated guidance for the education sector will be published shortly.
Further guidance will be provided to businesses to help them adopt measures to mitigate risks, including ensuring good ventilation; maintaining good hand hygiene; practising respiratory hygiene; getting vaccinated; and continuing to engage with Test and Protect.
Some baseline measures will remain in place:
it will continue to be the law, subject to exceptions, that face coverings must be worn in indoor public places and on public transport
Test & Protect will continue to contact-trace positive cases. To assist with this there will be a continued requirement for indoor hospitality and similar venues to collect the contact details of customers. Anyone who is required to self-isolate will, if eligible, continue to have access to support
we will work closely with local incident management teams on appropriate outbreak control measures
we will continue to use travel restrictions, as and when necessary, to restrict the spread of outbreaks and protect against the risk of importation of new variants
for now, we will continue to advise home working where possible, recognising that some staff will start to return to offices in line with staff wellbeing discussions and business need. we will encourage employers to consider for the longer term, as the Scottish Government is doing, a hybrid model of home and office working – which may, of course, have benefits beyond the need to control a virus
we will, for a limited period, keep in place a gateway process through which organisers of outdoors events of more than 5000 and indoor events of more than 2000 will have to apply for permission. This will allow us and local authorities to be assured of the arrangements in place to reduce risk
we will continue to issue appropriate guidance to assist individuals and businesses to reduce the risk of transmission as much as possible, such as rigorous hygiene, including regular hand washing
First Minister’s statement – 3 August 2021
Thank you Presiding Officer
In updating Parliament today on the Government’s decisions about further easing of Covid restrictions, I will confirm that from next Monday, Scotland will move beyond the current level 0 restrictions, and I will set out the basis for that decision.
However, in line with the cautious approach we have taken throughout this pandemic, I will also set out a number of mitigation measures that will remain in place.
I will then outline changes to the requirement for self-isolation of close contacts of positive Covid cases.
And finally, I will summarise the key points from new guidance being published today on arrangements for the start of the new school year.
However, let me start by summarising today’s statistics.
The total number of positive cases reported yesterday was 1,016 – which is 8.1% of all tests.
There are 406 people receiving hospital care – one fewer than yesterday.
And 61 people are receiving intensive care, which is one more than yesterday.
Sadly, nine further deaths were reported over the past 24 hours, taking the total number of registered deaths, under this daily definition, to 7,952.
And as always, I want to convey my sincere condolences to everyone who has lost a loved one.
I can also report that 4,014,212 people have now received a first dose of vaccine.
And 3,231,331 have now had both doses of vaccine.
So all of these figures are broadly in line with the trend that has been evident for the past four weeks.
The number of new cases in Scotland reached a peak in early July.
At that time, more than 400 new cases per 100,000 of the population were being recorded each week.
That has now fallen by two thirds – from 425 per 100,000 at the peak to 144 now based on our most recent figures.
And although as we can see today this fluctuates on a daily basis, the average proportion of tests that are positive has also fallen – from more than 10%, to now less than 6%.
Thankfully, the number of people in hospital with Covid is also falling – in the past two weeks it has reduced from 529 patients to 406.
And the number of people in intensive care also now seems be declining, albeit gradually, as well.
So all of this is good news. And I think it demonstrates the value of taking a careful and steady approach to easing restrictions.
Another reason for this progress is, of course, the continued success of the vaccination programme.
All over 18-year-olds have now had the opportunity to receive at least one dose of the vaccine.
And all over 40-year-olds have been offered both doses. These were key milestones for moving beyond level 0.
These milestones have been met. And take-up of vaccination has been exceptional by any previous standard, or indeed by comparison with our expectations.
90% of over 18 year olds have now had at least one dose of the vaccine, and 72% of all 18 year olds have had both doses.
93% of over 40 year olds have had both doses of the vaccine. And indeed for those over 60, take-up for both doses is as close to 100% as could reasonably be hoped for.
There is of course still more to do, and I want to stress this point, especially amongst 18- to 29-year-olds. Take-up in that age group has been good, relative to our initial expectations, but we want it to be better.
That is why, for example, we are deploying walk-in and mobile vaccination centres across the country.
I can also confirm that preparatory work is underway for the next phases of vaccination.
Invitations for vaccines are now going out to 12- to 17-year-olds with specific health conditions that make them more vulnerable to Covid. And this follows recent advice from the Joint Committee on Vaccination and Immunisation. And we expect to have offered first doses to this group by the end of August.
In addition, I can advise Parliament that we are hoping to receive in the next few days updated advice from the JCVI on possible vaccination of others in the younger age groups.
And we stand ready to implement any recommendations as soon as possible.
And we are also preparing to deliver booster jags during the autumn for those already vaccinated, if that is indeed recommended.
The vaccination programme, therefore, is likely to continue for some time to come. It may become a feature of life. But it has already saved many lives, and achieved a huge amount of success. And I am grateful to everybody who has and continues to help deliver it.
Presiding Officer, Ii is the combination of the steady decline in cases, the success of vaccination helping to weaken the link between cases and serious illness, and of course our understanding of the social, health and economic harms that continued restrictions cause – all underpinned by our obligation to ensure that any restrictions that remain in place are lawful, in other words that they are both necessary and proportionate – that forms the basis for our decision today to move beyond level 0.
The move beyond level 0 will entail the lifting of most of the remaining legally imposed restrictions – most notably on physical distancing and limits to the size of social gatherings.
It also means that from 9 August, no venues will be legally required to close.
This change is significant and it is hard-earned. The sacrifices everyone has made over the past year and a half can never be overstated.
However, while this move will restore a substantial degree of normality, it is important to be clear that it does not signal the end of the pandemic or a return to life exactly as we knew it before Covid struck.
Declaring freedom from, or victory over, this virus is in my view premature.
The harm the virus can do, including through the impact of long Covid, shouldn’t be underestimated. And its ability to mutate may yet pose us real challenges.
So even as we make this move, care and caution will still be required. Which is why I now want to focus on the protections and guidance that will remain in place after 9 August.
Firstly, it will continue to be the law, subject to existing exemptions, that face coverings must be worn in all the same indoor settings as is the case now.
We will keep this under review, but my expectation is that face coverings are likely to be mandated in law for some time to come.
Second, Test & Protect will continue to contact-trace positive cases.
To assist with this, there will be an ongoing requirement for indoor hospitality and similar venues to collect the contact details of customers.
And while – as I will set out shortly – there will be a change in the approach to self-isolation for close contacts of positive cases, anyone who is required to self-isolate will, if eligible, continue to have access to support.
Thirdly, we will continue to work closely with local incident management teams on appropriate outbreak control measures, including the use of localised restrictions in future if necessary.
We will also continue to use travel restrictions, as and when necessary, to restrict the spread of outbreaks and protect against the risk of importation of new variants.
Fourthly, we will continue to advise home working where possible for now. I know most businesses are not planning a wholesale return to the office, but recongise that a return for some staff will be beneficial to them and to employers. But it is vital that this gradual approach continues.
We will also encourage employers to consider for the longer term, as indeed the Scottish Government is doing, a hybrid model of home and office working – which may, of course, have benefits beyond the need to control a virus.
Fifth, while we expect to see the careful return of large scale events, we will for a limited period, keep in place the processes through which organisers of outdoor events of more than 5,000 and indoor events of more than 2,000 will have to apply for permission. And this will allow us and local authorities simply to be assured of the arrangements in place to reduce the risk of large scale gatherings.
And last – but by no means least – we will continue to issue clear guidance to assist individuals and businesses to reduce the risk of transmission as much as possible.
Rigorous hygiene, including regular hand washing, will continue to be essential.
Good ventilation will also be important. I will set out shortly our intention to strengthen guidance on ventilation in schools, but we will also work across the public and private sectors to ensure an approach to improved ventilation.
And even though the law will not stipulate physical distancing from Monday, we will continue to advise the public that – especially indoors – keeping a safe distance from people in other households and avoiding crowded places will minimise risk.
We will also engage with businesses – and issue guidance as necessary – to ensure that safe environments for staff and customers are provided, and that all reasonable steps are taken to reduce the risk of outbreaks.
Presiding Officer, I can also confirm that we continue to consider very carefully the possible, albeit limited, use of Covid status certification for access to certain higher risk venues in future.
We are currently developing an app to make access to Covid status certificates – which will include vaccination details – easier for international travel. This will be launched next month.
The app will have functionality to support the use of such certificates for domestic settings should we decide that this is appropriate.
However, I want to assure Parliament that we do not underestimate the ethical, equity and human rights issues associated with Covid status certification, and we will keep members updated and consulted on our thinking on this issue.
The decisions I am confirming today reflect the fact that – principally due to vaccines – we are now in a different stage of this pandemic.
Vaccination has weakened the link between case numbers and serious health harms, and that means it is no longer appropriate or necessary – and therefore not necessarily even lawful – for us to rely as heavily as we did previously on blanket rules and regulations.
That’s something that will be welcome for many, but a source of anxiety for some.
The Chief Medical Officer will be writing to those who have been at the highest risk from Covid – who might previously have been asked to shield – to provide advice and information, and to give assurance that they too can return to a much greater degree of normality. The needs and concerns of this group will not be ignored, now or in future.
I want now to turn to the change that we propose to the current rules on self-isolation – to ensure that they remain reasonable and proportionate.
Let me be clear at the outset that those who have symptoms of, or who test positive for, Covid will still be required to self-isolate as now.
However, from 9 August, an adult who is identified as a close contact of someone who has tested positive for will no longer be required automatically to self-isolate for 10 days.
Instead, if someone is double-vaccinated – with at least two weeks since the second dose – and if they have no symptoms, they should get a PCR test as soon as possible. And if the PCR test is negative, self-isolation can then be ended.
And as PCR results come back quickly – frequently within 24 hours – this will greatly reduce the amount of time that many people will need to spend in self-isolation.
We are proposing a similar change for people aged 17 or under – most of whom, of course, are not yet eligible for vaccination.
If a young person aged 5 to 17 is identified as a close contact, they will need to take a PCR test – but they can end their self-isolation if they test negative. Children under the age of five will be encouraged but not required to take PCR tests.
In addition, Test and Protect will implement revised guidance for under 18s, including in schools.
This means that the blanket isolation of whole classes will no longer be routine. Instead a more targeted approach will identify close contacts at highest risk of infection.
So fewer young people will be asked to self-isolate, and most will be asked to self-isolate for a much shorter period of time.
Obviously his is especially important as we approach the start of the new school year. So let me turn to the wider arrangements for the return of schools. And updated guidance is being published today.
As a consequence of the new approach to self-isolation – which is important to minimise disruption to education – and in line with advice from our Expert Advisory Sub-Group on Education, we have decided to retain, for the first six weeks of the new academic term, most of the other mitigations that are currently in place in schools.
This also reflects the unique environment of schools, where large numbers of unvaccinated children and young people mix with adult staff.
So for up to six weeks – subject then to review – there will be a continued requirement for staff to keep at least a metre distance from each other and from children and young people while on the school estate.
And we’ve also decided, after careful consideration, to retain the current requirements for face coverings in schools for staff and for children aged 12 or over. That includes asking young people and staff in secondary schools to wear face coverings during lessons, and while inside school buildings.
I am acutely aware that many, many young people find this difficult – and it will be kept under review. But for now, we consider this an important protection for them, and for others in the school.
The Expert Advisory Sub-Group has also emphasised the importance of good ventilation, and we are therefore strengthening guidance in this regard.
Many local authorities have already taken steps to improve ventilation in the school estate, and this work has highlighted the value of CO2 monitors.
These devices are useful in assessing how well ventilated a space is, and therefore how likely it is that the virus could be present.
The new guidance, published today, makes clear that all schools and daycare services for children must have access to CO2 monitoring – through either fixed or mobile devices – and that these should be used to assess the quality of ventilation in schools and childcare settings, and identify any necessary improvements.
These assessments will be ongoing obviously over the coming weeks, but we expect them to be completed – and necessary improvements identified – by the October half term.
And I can also confirm today that we are making available to local authorities an additional £10 million to support this work.
Ventilation is one of the most important ways in which the risk of Covid transmission can be reduced – and so improving it will be vital, now and in the future, to ensure that schools and childcare centres are as safe as possible.
Finally, local authorities and schools will ask all secondary pupils, and all school staff, to take a lateral flow test one or two days before returning after the holidays, and then to take tests twice a week after that.
This continues to be an important additional way in which Covid can be identified, even in people who do not have symptoms.
We are also working with the further and higher education sector on plans for the year ahead. Specific guidance on operating beyond Level 0 for universities and colleges has now been published. In addition, students will be encouraged to take a PCR test before any move to term-time accommodation, and then to test twice a week after that.
Presiding Officer, the last year and a half has been – and this inevitably will be an understatement – it has been difficult and stressful for children and young people, parents, and all staff working in education settings. I am so grateful to them for the understanding and cooperation shown. The new school and academic year will still bring challenges, I think there is little doubt of that. But I hope it will also bring fewer disruptions, and also allow a much more normal learning environment for young people.
Presiding officer, today’s decisions are – in my view, and I hope those listening will agree – positive. They are possible only because of vaccination and the prolonged sacrifices of people across the country. Once again, I want to convey my deep appreciation of that to everyone across the nation.
The last year has reminded all of us just how precious some of the simplest things in life really are, and many of us I suspect will resolve not to take them quite so much for granted in future.
Undoubtedly, the best way of doing that in the short term is to continue to be careful, cautious and sensible, even as legal restrictions are lifted. The government will continue to provide guidance to help get that balance right.
We all hope – I know I certainly do – that the restrictions we lift next Monday will never again have to be re-imposed. But no-one can guarantee that.
This virus remains a threat – and as we enter winter, it may well pose challenges for us again.
So as we have done throughout, the government will seek to take whatever action is necessary to keep the country safe.
But as has also been the case throughout, we all have a part to play in keeping the virus under control.
And as always, although counter-intuitive perhaps, it is when we lift restrictions – and inevitably give the virus more opportunities to spread – that it becomes even more important for us to remember the basic actions that can reduce risk.
So I want to end by stressing again what all of us can do to help ensure that this next step forward is a sustainable one.
The first and most important thing is to get vaccinated. If you haven’t done so already – particularly if you are in these younger age groups, looking forward to resuming a more normal social life – then please do so. You can register through the NHS Inform website, or by going to a drop-in centre.
Second, please test yourself regularly. Free lateral flow tests are available by post through NHS inform, or collection from test sites and local pharmacies.
If you test positive through one of these – or if you have symptoms of the virus – you should still self-isolate and get a PCR test.
Third, stick to the rules which remain in place – for example, on face coverings. And keep being sensible about the things we know can help to keep ourselves and each other safe.
Meet outdoors as much as possible – especially for as long as we have reasonable weather. If you are meeting indoors, open windows – the better ventilated a room is, the safer it will be.
Remember that keeping some distance from people in other households and avoiding crowded indoor places – even if no longer legally mandated – these are still sensible precautions.
And continue to wash your hands and surfaces as much as possible.
In short, enjoy being able to do more and meet up more. We’ve all waited a long time for that. But please protect yourself as you do so, principally through vaccination, and continue to take the greatest of care.
If we all do that, we will increase our chances of keeping the virus under control. We will protect ourselves and our loved ones.
And we will safely and securely return to the ways of life that we all value so much.
Significant new investment to drive economic recovery, bolster public services and support families underpins the Scottish Government’s spending and taxation plans for the coming year.
Presenting the Scottish Budget 2021-22 yesterday, Finance Secretary Kate Forbes announced support for jobs and skills totalling around £1.1 billion.
Job creation is a priority, with measures including a commitment to launch a new Green Workforce Academy to help people secure work in the low carbon economy, a £100 million Green Jobs Fund over the next parliament, £7 million towards making Scotland a world class hub for digital business and an additional £125 million for the Young Person’s Guarantee, employability and skills.
Health receives record funding of over £16 billion, an increase of 5.3% on 2020-21, along with a further £869 million to continue tackling coronavirus (COVID-19), including funding for the vaccination and test and trace programmes. This means that, over the course of this parliament, investment in health has increased by £1.8 billion in real terms – more than tripling the commitment to increase health funding by £500 million more than inflation.
To support family budgets, £90 million is being made available for local authorities to freeze council tax.
Public sector workers earning up to £25,000 can receive at least a 3% pay increase via a £750 cash underpin, while there is a 1% rise for those earning above that amount, capped at £800 above £80,000.
Economic recovery, supporting public services and helping families are at the heart of this year’s Scottish Budget.
£11.6 billion for local government, which represents a £335.6 million increase in core revenue funding, including the £90 million to compensate local authorities which choose to freeze Council Tax, plus £259 million in one-off funding
£1.9 billion for primary health care to help deliver more services in the community. A further £550 million is earmarked to build new Elective Care Centres and the Baird Family Hospital and Anchor Centre in Aberdeen
£98.2 million to improve Scotland’s digital infrastructure and deliver access to high quality broadband and mobile coverage.
£711.6 million for affordable housing and £68 million for the first full year of the Scottish Child Payment, tackling child poverty
a new £55 million programme to support town centres and community-led regeneration projects
more than £3.1 billion in resource and capital investment for education and skills, and £567 million to provide 1,140 hours of early learning and childcare, supporting implementation of the UK’s most ambitious childcare programme
£1.3 billion for the Scottish Police Authority, including a £60 million increase in Police Scotland’s revenue budget – exceeding an earlier pledge of a £100 million boost over five years
£1.6 billion for rail and bus services and £100.5 million for active travel to consolidate changes to healthy, green travel options seen during the pandemic
doubling the Rural Tourism Infrastructure Fund, helping tourist attractions and local communities make improvements to cope with increased visitors
an additional £27 million to expand woodland creation and the associated infrastructure, supporting green jobs
Business support remains a priority and the Finance Secretary confirmed that the Local Authority Discretionary Fund will be doubled to £60 million in this financial year to allow councils to respond to local needs. In addition, businesses eligible for the Strategic Framework Business Fund will receive full Level 4 payments on 22 February, regardless of any future changes to local restrictions.
The Scottish Government will also increase a scheme which compensates councils for the loss of income from sales, fees and charges due to the pandemic from £90 million to £200 million in 2020-21.
Ms Forbes said: “This budget is being delivered in exceptional circumstances as we continue to battle a pandemic that has shaken our society and economy to the core, and as we face the harmful impacts of Brexit.
“It promotes innovation and reform, new beginnings, new directions. And while it continues to target support in the immediate term, it also tracks a course over the next year to build a fairer, stronger and greener country.
“To help drive our green economic recovery I am providing the stability and certainty that businesses have asked for through the most competitive reliefs packages in the UK. There are innovative measures to promote sustainable growth and we are investing more than £1 billion in jobs and training.
“The budget sets out a distinctive Scottish pay policy that again supports the lowest paid, charting a different course to the ill-judged pay freeze announced by the UK Government. It also bolsters our health service, delivers more affordable homes, provides additional childcare places and helps young people into work.
“Throughout these dark times we have never given up hope. This budget seeks to build on that hope and, by focusing on how we rebuild and renew our country, make the light at the end of the tunnel shine that bit brighter.”
Our budget helps to deliver stability now, but it also looks forward to the future.
Watch Finance Secretary @KateForbesMSP explain our priorities for the coming year ⬇
The STUC has expressed its disappointment at what effectively amounts to a real-terms pay freeze for thousands of public sector workers as the Budget offers 1% for those earning pay above £25,000 per year including most teaching staff, firefighter and civil servants.
The STUC General Secretary, Roz Foyer pointed to the real terms increase in the Scottish Budget of nearly 4% and contrasted that with today’s pay offer.
“Whilst it is right and proper that the pay of low paid workers should be underpinned, for most workers this increase is still below the budget uplift received by Holyrood from Westminster. Far too many of our key workers have been left out in the cold.
While supporting Scottish Government calls for greater borrowing powers, Foyer also questioned whether tax cuts for high earners were the right priority and whether funding for Local Government was sufficient.
“We strongly support the Scottish Government’s calls for greater borrowing powers. However, the Cabinet Secretary has managed to find wiggle room to provide £125 million in blanket tax cuts. She has also reduced income taxes for high earners – a policy that raised £51 million last year. Given this, it is deeply disappointing that she hasn’t been able to better reward key workers.
“While the Cabinet Secretary spoke about an increase in funding for Local Government, it appears this amounts to less than a 1% increase, a level that is nowhere near sufficient to cover gaping cuts to services from years of austerity.”
Responding to the Budget announcement, Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce, said:“The position of Scottish businesses has never been so precarious. The Scottish Government’s announcements today are welcome but do not go nearly as far enough to avoid risk of widespread business collapse and job losses.
“Yes, there is light at the end of the tunnel with the vaccination programme but restrictions to prevent the spread of the virus have been devastating. We understand that the Cabinet Secretary for Finance faces difficult choices in setting the budget particularly ahead of that of the UK, in a time when the country faces extraordinary challenges.
“Business will be disappointed that further details on an economic route map on how we will exit this crisis aligned with the roll out of the vaccine were not provided today. This is a critical component if businesses are to unleash the investment our country so desperately needs.”
On Non-Domestic Rates:
“The Cabinet Secretary has listened to us and has delivered a reduction in the Non-Domestic Rate (NDR) poundage rate. However, longer-term, we believe the system is unfair and needs significant reform.
“Plans for a three months extension of rates relief is a too short a reprieve. We need commitment to a 12-month reliefs package to provide the certainty business needs. Clearly there is more to do, and we await further announcements from the Chancellor to see what further support can be made available and expect Scottish Government to pass on the equivalent consequential funding to businesses.”
On Business Support:
“The doubling of the discretionary fund is good news particularly for those businesses who have fallen through the gaps of other support packages. However, it is imperative that the process for businesses is clear, transparent and quick across all local authorities to ensure funding is available for businesses quickly and immediately.
“Now is the time to pull out the stops and redouble efforts to ensure business support comes through. We need to see a significant ramping up to get those funds that have been promised out the door and to businesses.”
On Infrastructure:
“The Scottish Government’s commitment to infrastructure investment is absolutely necessary for Scotland and the UK to be in a position to build back better and meet net zero ambitions. Now is the time for a vision driven by ambition and a willingness to collaborate like never before. This must be put first and foremost ahead of any political point scoring this year.”
On skills and training:
“SCC welcomes these important steps to support jobs, employment and training. We called for training academies and we are pleased to see the Cabinet Secretary has acted on our recommendations, particularly the focus on green jobs. It is now critical that the government and academia works in partnership with the private sector to ensure benefits are fully realised.”
On Protecting Jobs:
“We maintain our call to the Chancellor of the Exchequer to extend the furlough scheme beyond April 2021 and outline further initiatives to protect business and jobs at the UK Budget in March.”
On mental health support:
“Business will welcome this as we understand the toll the pandemic has taken on our customers, employees and communities.
“Recovery of our wellbeing is just as important as economic recovery, with many employers investing in their own employee support programmes. This commitment from the Scottish Government will enhance these efforts.”
Responding to Kate Forbes’ announcement that public sector workers on salaries up to £25,000 a year will receive a 3 per cent increase, GMB Scotland Senior Organiser Drew Duffy said: “This will be met with fury among the lowest paid in Scotland’s public sector.
“Kate Forbes was among the many politicians applauding our frontline heroes, now she is saying ‘thank you’ with a rise that won’t amount to more than a tenner a week for most.
“There is no value here, and it’s an insulting response from the Scottish Government to the ongoing struggles of our key workers in this pandemic.”
Tracy Black, CBI Scotland Director, said:“The Finance Secretary is right to put business support and economic recovery front and centre of this year’s draft Budget. With jobs, firms and livelihoods still hanging by a thread, Scotland can’t afford to wait until the pandemic is over before initiating plans for a sustained recovery.
“Health must come first and lowering transmission rates remains the priority. Yet with so many struggling companies across Scotland, it’s only right that proper consideration is given to reopening the economy when it is safe to do so. This should be driven by data and done in dialogue with business.
“The private sector is critical to a successful recovery and moves to protect firms’ immediate futures are welcome. Continuing rates reliefs for the hard-hit hospitality, retail and tourism sectors is welcome, however a three-month window remains a challenging timetable for firms under real pressure. Companies will also be relieved to see a continued commitment to Covid business support and no further changes on income tax.
“The UK and Scottish governments must now work together to provide certainty over business support, ensuring that the firms we need to drive economic recovery survive the tough weeks and months ahead.
“Longer term, the figures from the Scottish Fiscal Commission paint a worrying picture and highlight the scale of the challenge ahead. Maintaining a laser focus on boosting productivity and protecting competitiveness are key.”
Responding to the Scottish Government’s Budget statement delivered today by Finance Secretary Kate Forbes MSP, Director of CAMRA Scotland Joe Crawford said: “Extending the business rates holiday for pubs and social clubs for a further three months into the next financial year is a desperately-needed lifeline for pubs who have struggled for almost a year now.
“But three months won’t be enough. CAMRA will be joining the Scottish Government in calling on the Chancellor to use his Budget on 3rd March to give the Scottish Government enough money to extend this Business Rates holiday for the entire 2021/22 financial year.
“Pub-goers and licensees will now want to see the Scottish and UK Governments work together to make sure pubs and breweries get enough long-term financial support to thrive when they can reopen. This must include grants, furlough support as long as there are restrictions on trading, extending the VAT cut on beer to help pubs that don’t serve food, and cutting tax on beer served in pubs to help them compete with supermarket booze.
“Pubs and social clubs are a force for good in our communities, bringing people together and tackling loneliness and social isolation. They will be a crucial part of our national healing process after COVID and deserve to be supported until they can trade again.”
SLTA Managing Director, Colin Wilkinson said:“The Scottish Licensed Trade Association welcomes today’s announcement by Finance Secretary Kate Forbes that the Scottish Government will extend 100% non-domestic rates relief for retail, hospitality and leisure for at least the first three months of the new financial year. However, it doesn’t go far enough.
“Today’s announcement is good news, as is the promise of further ongoing business support and it gives us a much-needed stay of execution. The reduction in the poundage rate, from 49.8 pence to 49 pence, is also very welcomed.
“Further support from the Westminster Government is crucial and our hope is that UK Chancellor, Rishi Sunak, steps up to the mark by extending the current furlough scheme, committing to retain the Commercial Rates Relief and the temporary 5% reduced rate of VAT for hospitality beyond March 31 and well in to 2022.
“Our sector is battered and bruised and the sooner both the Scottish and UK Governments can provide clarity on support and an indication of an exit strategy out of this pandemic the better.”
Chief Constable Iain Livingstone has welcomed the Scottish Government’s Budget announcement.
Mr Livingstone said: “I welcome the announcement to eliminate the structural deficit in policing’s funding.
“The reform of policing in Scotland has brought many benefits to all communities across the country, while £200m has been returned to the public purse every year compared to legacy arrangements.
“The last 12 months have demonstrated the relentless nature of policing. Our mission to prevent harm, support communities and keep people safe has been evident throughout the pandemic.
“We will continue to enhance capacity and capability to protect the people of Scotland in the public, private and virtual spaces.
“Responsive and accessible local policing is deeply valued by our fellow citizens and will always lie at the heart of Police Scotland’s purpose and approach.”
The Scottish Government’s budget was passed last night with the support of the Scottish Greens. A last minute deal ensured the minority government got their programme through parliament, but the Budget has been criticised by both the Conservatives and Scottish Labour.Continue reading Scottish Budget: “Additional spending on public services”
First Minister Nicola Sturgeon has announced measures to support and stimulate the economy in the wake of the EU referendum.
Capital spending on projects to support and create employment will be accelerated, starting with an additional £100 million of funding in this financial year. The capital funding will be used to speed up delivery of health and other infrastructure projects.
Projects will be assessed for accelerated funding against a range of criteria including how quickly work can start, the number of jobs that will be supported or created, the likely impact on the supply chain and geographic spread.
The Scottish Government will also set up a new dedicated service to provide information and support to businesses affected by the EU referendum, while a new Post-Referendum Business Network will work closely with the main business bodies, the STUC and the Scotland Office.
The plans were announced at the Golden Jubilee which will receive an extra £5 million to bring expansion of its elective centre forward from 2018-19 to this year.
Further details of the Capital Acceleration Programme, including the projects to be supported by the initial £100 million of additional funding and details of funding for future years, will be announced in due course.
The First Minister also called on the UK Government to give early certainty about EU Structural Funds and to urgently announce its own economic stimulus package, which would enable the Scottish Government to do even more to accelerate capital spending.
The First Minister said: “As I have made clear since the EU referendum, the Scottish Government will pursue all possible options to protect Scotland’s relationship with the EU and ensure that our voice is heard.
“However, it is also important to act now to support and stimulate the economy.
“Scotland is and remains an attractive and stable place to do business – however, there is no doubt that the referendum outcome has created deep and widespread uncertainty, with the impact on jobs and investment already being felt.
“The UK Government has not yet taken any meaningful action to alleviate uncertainty or to boost confidence.
“Scotland is and remains an attractive and stable place to do business – however, there is no doubt that the referendum outcome has created deep and widespread uncertainty, with the impact on jobs and investment already being felt.
“The UK Government has not yet taken any meaningful action to alleviate uncertainty or to boost confidence, and there are very real concerns that the damage to the economy and to jobs will be severe and long lasting.
“It is against this background that the Scottish Government is announcing early action to boost confidence, stimulate economic activity and support business.
“Our Infrastructure Investment Plan is already delivering major infrastructure improvements, with projects worth almost £6 billion currently under construction – we will now inject a further £100 million of spending this year to accelerate planned projects.
“We will also provide business with wider support to help them navigate the uncertainty caused by the referendum result. Business organisations have asked for a single point of contact and we will shortly launch a new Business Information Service that will provide up-to-date information and advice, and answer questions from individual businesses, going some way to alleviate business concerns about the future.
“We will also establish a new Post-Referendum Business Network, to work more closely and collaboratively with the main business bodies, the STUC and the Scotland Office to help shape future policy and support for business.
“These three initial measures will help support new and existing jobs and alleviate business concerns at this difficult time.
“However, it is important that the UK government also acts and I am calling today for urgent action on two fronts – firstly, early assurance about EU Structural Funds and, second, a UK wide stimulus package which, through consequential funding, would enable the Scottish Government to do more to accelerate capital spending.”
The STUC has welcomed the announcement. STUC General Secretary Grahame Smith said: “The STUC strongly endorses the approach set out by the First Minister today. The Scottish economy, already weak due to the downturn in the oil and gas sector, risks falling into technical recession as a result of Brexit induced uncertainty. In this context it is important that the Scottish Government accelerates capital projects where feasible in order to support employment.
“The First Minister is also entirely justified in calling on the UK Government to act swiftly to help minimise the economic consequences of their calamitous handling of the referendum and its aftermath. With borrowing costs at a historic low, now is the time to invest to support jobs in the present and increase the economy’s capacity to grow sustainably in the future.
“The STUC looks forward to making a positive contribution as a member of the new Post Referendum Business Network.”
Employers organisation CBI Scotland also welcomed the infrastructure investment.Hugh Aitken, CBI Scotland Director, said: “We welcome the Scottish Government’s commitment to boosting growth through infrastructure spending and look forward to seeing more details.
“Progress on the Glasgow airport link, together with improvements to the A82, A96 and A9 are projects previously identified by businesses as vital, alongside advances in digital infrastructure.
“Firms will also be encouraged by the Scottish Government’s pledge to work closely with the Scotland Office as it engages with firms following the EU Referendum.
“Our members stand ready to work alongside both the Scottish and the UK Governments as companies seek clarity on trade, regulation, access to talent and protection for the economic and social benefits of EU funded projects.
“As options for the future take shape, it will be more important than ever for both governments to partner with businesses in navigating their approach.”
Opposition parties do not believe the stimulus is enough, however. Scotland Secretary David Mundell said Ms Sturgeon should rule out a second independence referendum to restore business confidence, while Labour’s Jackie Baillie said the £100 million commitment ‘feels like a drop in the ocean‘.
Scottish Labour Economy spokesperson Jackie Baillie said: “It is welcome that the First Minister has agreed with Labour’s calls to bring forward infrastructure spending to stimulate the economy, although the SNP could be much bolder with this investment.
“For context the SNP announced £100 million today – the Queen Elizabeth University Hospital in Glasgow cost £850 million and the Queensferry Crossing will cost over £1 billion. Any investment is welcome but this feels like a drop in the ocean.
“Labour outlined a series of policies in our Brexit Action Plan two weeks ago including the establishment of a Brexit support fund for at risk sectors. The SNP Government should adopt this Labour policy to give support to key industries.
“Today’s announcement must be only the start of the increased investment. Nicola Sturgeon must stop the cuts her government is imposing on public services in Scotland. The SNP Government is cutting hundreds of millions of pounds from schools and local services, our police force is facing cuts and our health boards are tens of millions in the red. It is not sustainable. Any post-Brexit stimulus from both the SNP and Tory Governments must include an end to austerity.
“Labour will continue to make the case to use the new tax powers of the Scottish Parliament to invest in our economy and stop the cuts to public services. The recent interventions from senior SNP figures like Kenny MacAskill show that a debate about tax is very much back on the agenda.”
You can read Labour’s Post Brexit Action Plan here
The Scottish government will introduce a 5p levy on plastic bags from October 2014. Environment Secretary Richard Lochhead said the charge should reduce bag use in Scotland and raise £5m a year for good causes.
Mr Lochhead said: “Discarded carrier bags highlight our throwaway society. We use more carrier bags per head in Scotland than any other part of the UK and this is unsustainable. They are a highly visible aspect of litter and we are taking decisive action to decrease their number. By reducing the amount being carelessly discarded we can cut litter and its impact on our environment and economy. A small charge should also encourage us all to stop and think about what we discard and what can be re-used. This charge is not a tax but will see retailers donating the proceeds to charity – this could be up to £5m per year after retailers have covered their costs.”
Iain Gulland, the director of Zero Waste Scotland, said: “We can all reduce the impact of carrier bags by making sure that when we must take one, we re-use it over and over again as many times as possible and then recycle it at the end of its life.”
Retailers have expressed concerns over the introduction of the charge, however.
A CBI Scotland spokesman said: “Modest economic growth coupled with a continuing shift to internet shopping is making conditions challenging for the high street, which is already feeling the ill-effects of the Scottish government’s £95m retail rates surcharge and its £36m rates levy on empty shops and other premises. The plans for costly additional red tape in the form of an environmental levy on carrier bags, after significant success recently in reducing the use of plastic bags by voluntary means, will only make a difficult situation even tougher for retail businesses.”
The Scottish Retail Consortium says that carrier bag use has already fallen by 40% and there is a need to concentrate on bigger issues. SRC Director Fiona Moriarty said: “The Scottish government has decided that it wants further and faster reductions and the only way it can achieve this is through legislation.
“However, it is our view that if we focus solely on plastic bags we are in danger of being distracted from much larger and more important issues around waste. The SRC will be working with the Scottish government to ensure that the legislation is proportionate and as far as possible consistent across the UK to avoid confusion for customers and businesses.”
