Most vulnerable households will get over £1000 of help with cost of living

MORE SUPPORT NEEDED, SAYS SCOTTISH FINANCE SECRETARY

The most vulnerable households across Scotland will receive support of over £1,000 this year, including a new one-off £650 cost of living payment
Universal support increases to £400 across Great Britain, as the October discount on energy bills is doubled and the requirement to repay it over 5 years scrapped
This new £15 billion support package is targeted towards millions of low-income households and brings the total cost of living support to £37 billion.
New temporary Energy Profits Levy on oil and gas firms will raise around £5 billion over the next year to help with cost of living, with a new investment allowance to encourage firms to invest in oil and gas extraction in the UK.

Millions of households across the UK will benefit from a new £15 billion package of targeted UK government support to help with the rising cost of living, the Chancellor announced yesterday.

The significant intervention includes a new, one-off £650 payment to more than 8 million low-income households on Universal Credit, Tax Credits and legacy benefits to be made in two tranches starting in the summer, with separate one-off payments of £300 to pensioner households and £150 to individuals receiving disability benefits – groups who are most vulnerable to rising prices.

Rishi Sunak also announced that the energy bills discount due to come in from October is being doubled from £200 to £400, while the requirement to pay it back will be scrapped. This means the vast majority of households will receive a £400 discount on their energy bills from October.

The new Cost of Living Support package will mean that the most vulnerable households in Scotland will receive over £1,000 of extra support this year.

To ensure there is support for everyone who needs it, Mr Sunak also announced a £500 million increase for the Household Support Fund. This brings the total Household Support Fund to £1.5 billion.

To help pay for the extra support – which takes the total direct government cost of living support to £37 billion – Mr Sunak said a new temporary 25% Energy Profits Levy would be introduced for oil and gas companies, reflecting their extraordinary profits. At the same time, in order to increase the incentive to invest the new levy will include a generous new 80% investment allowance. This balanced approach allows the government to deliver support to families, while encouraging investment and growth.

The Chancellor of the Exchequer Rishi Sunak said: ““I know that people in Scotland are anxious about keeping up with rising energy bills, which is why today we have introduced measures which will take the support for millions of the lowest income households over £1,000.

“As a nation we have a responsibility to help the most vulnerable, which is why this support is mostly targeted at people on low incomes, pensioners and disabled people. But we understand that all households in Scotland will be concerned about the rise in energy costs this Autumn, so every household is set to get £400 off their energy bills from October, with no repayments necessary.

“It is right that companies making extraordinary windfall profits from rising energy prices should contribute, and I’m introducing a temporary energy profits levy to help pay for this support, while still encouraging the investment that generates jobs in Scotland.”

Scottish Secretary Alister Jack said: “Global issues are causing real pressures in the cost of living for UK families. We understand how tough it is at the moment for many households, which is why the Chancellor has today announced a further £15 billion support package.

“A total of £400 per household towards fuel bills will help protect families from rising energy costs. Cash payments of £650 for low-income households on means tested benefits will target support at the most vulnerable in our society at this difficult time. This comes on top of our existing £22bn support package.

“Some of these measures will be paid for by a temporary levy on oil and gas companies – one which incentivises investment in the UK’s energy security.”

There is now more certainty that households will need further support, with inflation having risen faster than forecast and Ofgem expecting a further rise in the energy price cap in October.

So as part of the UK government’s targeted support, the Chancellor announced that around eight million of the lowest income households on Universal Credit, Tax Credits, and legacy benefits will receive an automatic £650 cost of living payment in two instalments via the welfare system this year.

Yesterday’s announcement is on top of the government’s existing £22 billion cost of living support which includes February’s energy bills intervention and action taken at this year’s Spring Statement including a £330 tax cut for millions of workers through the NICs threshold increase in July and 5p cut to fuel duty.

Energy Profits Levy

Surging commodity prices, driven in part by Russia’s war on Ukraine, has meant that the oil and gas sector have been making extraordinary profits. Ministers have been clear that they want to see the sector reinvest these profits in oil and gas extraction in the UK.

In order both to fairly tax the extraordinary profits and encourage investment, the Chancellor announced a temporary new Energy Profits Levy with a generous investment allowance built in. This nearly doubles the tax relief available and means the more investment a firm makes, the less tax it will pay.

The new Levy will be charged on oil and gas company profits at a rate of 25% and is expected to raise around £5 billion in its first 12 months, which will go towards easing the burden on families. It will be temporary, and if oil and gas prices return to historically more normal levels, will be phased out.

The new Investment Allowance, similar in style to the super-deduction, incentivises companies to invest through saving them 91p for every £1 they invest. This nearly doubles the tax relief available and means the more a company invests, the less tax they will pay.

The government expects the combination of the Levy and the new investment allowance to lead to an overall increase in investment, and the OBR will take account of this policy in their next forecast.

The Levy does not apply to the electricity generation sector – where extraordinary profits are also being made due to the impact that rising gas prices have on the price paid for electricity in the UK market, which has also been making extraordinary profits partly due to record gas prices but also due to how the market works.

As set out in the Energy Security Strategy the government is consulting with the power generation sector and investors to drive forward energy market reforms and ensure that the price paid for electricity is more reflective of the costs of production.

The Chancellor announced yesterday that the Treasury will urgently evaluate the scale of these extraordinary profits and the appropriate steps to take.

During the announcement, the Chancellor also set out the government’s strategy to control inflation through independent monetary policy, fiscal responsibility, and supply side activism – a plan he said that should see inflation come down and returning to its target over time.

Finance Secretary Kate Forbes has welcomed the short term action announced by the Chancellor of the Exchequer, but warned more support is needed for households and businesses as the cost of living crisis worsens.

Following calls from the Scottish Government, the UK Government has taken steps to ensure that cash grants, rather than loans, are provided to those on lowest incomes. Ms Forbes has also cautiously welcomed the decision to introduce a Windfall Tax on energy companies benefiting from significant profits but commented that it means Scottish industry is disproportionately funding interventions across the UK.

Responding to the Chancellor’s statement, Ms Forbes has said UK Ministers should have acted earlier and gone further to provide more support that would make a real long term impact, including following the Scottish Government’s lead by doubling the Scottish Child Payment to £20 per week – which is due to increase to £25 from late 2022 helping lift an estimated 50,000 children out of poverty in 2023-24.

Ms Forbes said: “Many households will be relieved to see the support belatedly announced today, but we still need a long term solution to the cost of living crisis and reassurance that the UK Government is going to tackle long term inequalities rather than provide one-off bursts of crisis support.

“Rather than listen to our plea for a comprehensive funding package that fully addresses the unprecedented rise in the cost of living and uses the full £30 billion of fiscal headroom, this piecemeal approach makes it highly likely that more support will be needed later when energy prices rise significantly in the autumn.

“There is also a severe lack of support for businesses – many of them are still struggling to recover from the pandemic and now face crippling increases in energy costs and the damaging impacts of Brexit on supply chains and the labour market. Without urgent economic support there is a real risk that the UK economy is heading for a recession.

“Inflation is at its highest levels in 40 years and the UK Government’s failure to fully invest in increasing incomes, tackling inequality and boosting economic competitiveness will only risk pushing households into further debt and poverty

“The UK Government has almost £30 billion of fiscal headroom, spending only half of this during a cost of living crisis does not go far enough, especially when a further £5 billion from the Windfall Tax will be raised.

“The introduction of a windfall tax is a start, but as a stand-alone measure this means Scottish industry is carrying the weight of UK-wide interventions.

“The removal of the £20 Universal Credit uplift last year was a hammer blow to hard pressed families and the Chancellor’s failure to restore it and increase it to £25 only places a disproportionate burden on the shoulders of those who need help most. The statement was also worryingly silent on public-sector pay with no related consequential funding, when the lowest paid need urgent assurance in the face of rising inflation.

“The refusal to reverse the National Insurance increase implemented in April and temporarily suspend VAT on household energy bills will also cost families hundreds of pounds annually at a time when their budgets have never been more squeezed.

“The Scottish Government has already taken action to support people, communities and businesses as much as possible, with almost £770 million per year invested in cost of living support. We have increased eight Scottish benefits by 6%, closer to the rate of inflation, and introduced a range of family benefits not available elsewhere in the UK.”

Commenting on the government’s cost of living support package announced today (Thursday), TUC General Secretary Frances O’Grady said: “Unions have repeatedly called for an Emergency Budget to help families, and a windfall tax on energy companies.

“The Chancellor should have acted far sooner after his inadequate Spring Statement. His dither and delay has caused unnecessary hardship and worry for millions.

“While today’s intervention is badly needed, we should have never been here in the first place.

“Years of attacks on wages and universal credit have left many households on the brink.

“The government still doesn’t have a plan for giving families long-term financial security.

“With energy bills rising 23 times faster than wages we urgently need to get pay packets rising and to pay universal credit at a permanently higher rate – not just a one-off boost.

“That’s the best way to protect livelihoods and to support the economy.”

Cost of Living Support: Sunak acts

£5 BILLION WINDFALL TAX ANNOUNCED

Madam Deputy Speaker, The high inflation we are experiencing now is causing acute distress for the people of this country. I know they are worried, I know people are struggling. I want to explain what is happening, why it is happening, and what we propose to do about it.

I trust the British people, and I know they understand no government can solve every problem, particularly the complex and global challenge of inflation.

But this government will never stop trying to help people, to fix problems where we can, to do what is right – as we did throughout the pandemic.

We need to make sure that for those whom the struggle is too hard…and for whom the risks are too great…they are supported.

This government will not sit idly by whilst there is a risk that some in our country might be set so far back… they might never recover.

This is simply unacceptable. I will never allow that happen.

And I want to reassure everybody – we will get through this.

We have the tools and the determination we need to combat and reduce inflation.

We will make sure the most vulnerable and the least well off get the support they need at this time of difficulty.

And we will turn this moment of difficulty into a springboard for economic renewal and growth.

With more jobs, higher skills, greater investment – our plan for a stronger economy.

Madam Deputy Speaker, Before I turn to the details of our plan, let me put into context for the House, the challenge we face.

This country is now experiencing the highest rate of inflation we have seen for forty years.

The Bank of England expect inflation to average around 9% this year.

Our exposure to global shocks continues to explain most of the inflation above the 2% target.

Supply chain disruption as the world reopened from Covid…

…combined with Russia’s invasion of Ukraine…

…and potentially exacerbated by recent lockdowns in China…

…are all contributing to significant price increases for goods and energy.

However, over the course of this year, the situation has evolved and has become more serious.

There are areas of particular concern.

Even excluding energy and food, core inflation has become broader based and elevated.

Of the basket of goods and services we use to measure inflation, a record proportion are seeing above average price increases.

Also, we are acutely exposed to the European energy price shock and, like the US, we have a tight labour market.

Make no mistake – the lowest unemployment in almost 50 years, just months after averting a jobs crisis during the pandemic, is good news.

But combined with the shock to European energy prices, it does contribute to the UK’s relatively high rate of inflation.

And lastly, as the Bank have noted, longer-term inflation expectations have risen above their historical averages, by more than they are in the US and Europe.

We cannot and must not allow short term inflationary pressures to lead people to expect that high inflation will continue over the long term.

Because Madam Deputy Speaker

We can get inflation under control.

It is not some abstract force outside our grasp.

It may take time, but we have the tools we need and the resolve it will take to reduce inflation.

Madam Deputy Speaker,

We have three specific tools available to combat and reduce inflation – and we are using them all.

Independent monetary policy. Fiscal responsibility. And supply side activism.

First, our primary tool is a strong, independent monetary policy.

Since control of monetary policy was taken out of the hands of politicians 25 years ago, inflation has averaged precisely 2%.

It is right the Bank of England are independent.

And I know the Governor and his team will take decisive action to get inflation back on target and ensure inflation expectations remain firmly anchored.

Second, we need responsible fiscal policy.

That means providing fiscal support where required but not making the situation unnecessarily worse…causing inflation, interest, and mortgage rates to go up further than they otherwise would.

Excessively adding fiscal stimulus into a supply constrained economy…

…especially one in which households and businesses have built up over £300 billion of excess savings…

…risks being counterproductive and increasing inflationary pressures.

In other words, fiscal support should be timely, targeted, and temporary.

Timely, because we need to help people when the shock is at its worst.

Targeted, because unconstrained stimulus will make the problem worse.

And temporary, because if we do not meet our fiscal rules, and ensure the public finances are resilient in the longer run…

…we create even greater risks on inflation, interest rates, and the trend rate of economic growth.

And third, we are taking an activist approach to supply side reforms.

This will increase our productive capacity, ease inflationary pressures, and raise our long-term growth potential.

The PM’s energy security strategy will, over time, reduce bills by increasing energy supply and improving energy efficiency.

The W&P Secretary is moving half a million jobseekers off welfare and into work…

…and doing more to support older people back into the jobs market.

The Home Secretary is making our visa regime for high-skilled migrants one of the most competitive in the world.

And, in the autumn, we will bring forward tax cuts and reforms to encourage businesses to invest more, train more, and innovate more – the path to higher growth.

So, independent monetary policy.

Fiscal responsibility.

Supply side reform.

The country should have confidence, that using these three tools…

…we will combat inflation – and reduce it over time.

But of course, we know that households are being hit hard, right now.

So today, Madam Deputy Speaker, we will provide significant support to the British people.

But as I have said, a critical part of how we are dealing with inflation is responsible fiscal policy.

What this means in practical terms is that as we support people more, we need to think about the fairest way to fund as much of that cost as possible.

The oil and gas sector is making extraordinary profits.

Not as the result of recent changes to risk taking or innovation or efficiency.

But as the result of surging global commodity prices – driven in part by Russia’s war.

And for that reason, I am sympathetic to the argument to tax those profits fairly.

But as ever, there is a sensible middle ground.

We should not be ideological about this…we should be pragmatic.

It is possible to both tax extraordinary profits fairly…and incentivise investment.

And so, like previous governments, including Conservative ones – we will introduce a temporary, targeted, Energy Profits Levy.

But, we have built into the new Levy a new Investment Allowance, similar to the super-deduction…

…that means companies will have a new and significant incentive to reinvest their profits.

The new Levy will be charged on profits of oil and gas companies at a rate of 25%.

It will be temporary, and when oil and gas prices return to historically more normal levels, the Levy will be phased out – and with a sunset clause written into the legislation.

And, crucially, with our new investment allowance, we are nearly doubling the overall investment relief for oil and gas companies.

This means that, for every £1 a company invests, they’ll get back 90 per cent in tax relief.

So the more a company invests, the less tax they will pay.

And we understand that certain parts of the electricity generation sector are also making extraordinary profits.

The reason for this is the way our market works.

The price electricity generators are paid is linked not to the costs they incur in providing that electricity…but rather to the price of natural gas – which is extraordinarily high right now.

Other countries like France, Italy, Spain and Greece have already taken measures to correct this.

As set out in the Energy Security Strategy, we are consulting with the power generation sector and investors…

…to drive forward energy market reforms and ensure that the price paid for electricity is more reflective of the costs of production.

Those reforms will take time to implement.

So, in the meantime, we are urgently evaluating the scale of these extraordinary profits…and the appropriate steps to take.

So, Madam Deputy Speaker,

Our Energy Profits Levy will encourage investment, not deter it.

It raises around £5bn revenue over the next year so that we can help families with the cost of living.

And it avoids having to increase our debt burden further.

Because there is nothing noble in burdening future generations with ever more debt to pay…

…because politicians of the day were too weak to make the tough decisions.

Madam Deputy Speaker,

I know the whole House will agree we have a responsibility to help those who…

…through no fault of their own…

…are paying the highest price for the inflation we face.

To help with the cost of living, we are going to provide significant, targeted support to millions of the most vulnerable people in our society:

Those on the lowest incomes, pensioners, and disabled people.

First, people on the lowest incomes.

Over eight million households already have incomes low enough for the state to be supporting their cost of living through the welfare system.

They could be temporarily unemployed and looking for work.

Unable to work because of long-term sickness or disability.

Or on low pay and using benefits to top up their wages.

Right now, they face incredibly difficult choices.

So, I can announce today we will send, directly to around eight million of the lowest income households, a one-off Cost of Living Payment of £650.

Support worth over £5bn to give vulnerable people certainty that we are standing by them at this challenging time.

DWP will make the payment in two lump sums – the first from July, the second in autumn, with payments from HMRC for those on Tax Credits, following shortly after.

There is no need for people to fill out complicated forms or bureaucracy – we will send the payment straight into their bank accounts.

Our policy will benefit over eight million households in receipt of means-tested benefits, from July.

Uprating, in that time frame, could only be done for those on Universal Credit.

And our policy will provide a larger average payment this year of £650.

Whereas uprating the same benefits by 9% would only be worth, on average, £530.

There are two further groups who will need targeted extra support.

Many pensioners are disproportionately impacted by higher energy costs.

They can’t always increase their incomes through work.

And, because they spend more time at home, and are more vulnerable, they often need to keep the heating on for longer.

And we estimate many people who are eligible for Pension Credit are not currently claiming it…

…which means there will be many vulnerable pensioners not receiving means-tested benefits.

So, I can announce today that, from the autumn, we will send over eight million pensioner households who receive the Winter Fuel Payment – an extra, one-off Pensioner Cost of Living Payment of £300.

Disabled people also face extra costs in their day-to-day lives – like having energy-intensive equipment around the home or workplace.

So, to help the 6 million people who receive non-means tested disability benefits, we will send them, from September…

…an extra, one-off Disability Cost of Living Payment, worth £150.

Many disabled people will also receive the payment of £650 I have already announced, taking their total cost of living payments to £800.

And I can reassure the House that next year, subject to the Secretary of State’s review, benefits will be uprated by this September’s CPI…

…which, on current forecasts, is likely to be significantly higher than the forecast inflation rate for next year.

Similarly, the triple lock will apply for the state pension.

Of course, we recognise the risk that, as with any policy, there may be small numbers of people who fall between the cracks.

For example, it is not possible right now for DWP or HMRC to identify people on Housing Benefit who are not also claiming other benefits.

So, to support them and others, we will extend the Household Support Fund, delivered by Local Authorities, by £500m from October.

This is a significant set of interventions to support the most vulnerable in our country.

We will legislate to deliver this support on the same terms in every part of the United Kingdom – including Northern Ireland.

And, taken together, our direct cash payments, will help one third of all UK households with the cost of living, support worth over £9bn.

So, Madam Deputy Speaker,

We are meeting our responsibility to provide the most help to those on the lowest incomes.

I believe that is fair and I’m confident the House would agree.

But there are many other families who do not require state support in normal times.

They are also facing challenging times.

Is it fair to leave them unsupported?

The answer must surely be no.

While it is impossible for any government to solve every problem, we can and will ease the burden as we help the entire country through the worst of this crisis.

So, we will provide more support with the rising cost of energy – and that support will be universal.

Earlier this year, we announced £9bn to help with the cost of energy.

Including a Council Tax rebate of £150 for tens of millions of households.

And we plan to provide all households with £200 off their energy bills from October, with the cost of that repaid over the following five years.

Since then, the outlook for energy prices has changed.

I’ve heard people’s concerns about the impact of these repayments on future bills.

So I have decided that those repayments will be cancelled.

So, for the avoidance of doubt, this support is unambiguously a grant.

And furthermore, I have decided that the £200 of support for household energy bills will be doubled to £400 for everyone.

We’re on the side of hard-working families, with £6bn of financial support.

So, Madam Deputy Speaker,

To summarise:

Our strategy is to combat and reduce inflation over time through independent monetary policy, fiscal responsibility, and supply side activism.

We are raising emergency funds to help millions of the most vulnerable families who are struggling right now.

And all households will benefit from universal support for energy bills of £400 – with not a penny to repay.

In total, the measures I’ve announced today provide support worth £15bn.

Combined with the plans we’ve already announced…that means we are supporting families with the cost of living to the tune of £37bn or 1.5% of GDP.

That’s higher or similar to countries like France, Germany, and Italy.

And I’m proud to say that around three quarters of the total support will go to vulnerable households.

As a result of the measures we’ve announced today, and the action we’ve already taken this year:

The vast majority of households will receive £550.

Pensioners will receive £850.

And almost all of the eight million most vulnerable households in the country will, in total, receive support of at least £1,200.

Let me put this into context.

The House will have noted the news from Ofgem earlier this week.

They currently expect the energy price cap to rise in October to £2,800.

That’s an average increase in people’s bills this year of just under £1,200.

The same amount our policies will provide for the most vulnerable this year.

I know there are other pressures.

I am not trying to claim we have solved the entire problem for everyone.

No government could.

But I hope that when people hear the significant steps we are taking…

…the millions we are helping…

…they will feel some of the burden eased, some of the pressures lifted.

And they will know, this Government is standing by them.

And Madam Deputy Speaker in conclusion,

Supporting people with the cost of living is only one part of our plan for a stronger economy…

…A plan that is creating more jobs…

…Cutting taxes for working people…

…Reducing our borrowing and debt…

…Driving businesses to invest and innovate more…

…unleashing a skills revolution…

…Seizing the benefits of Brexit…

…And levelling up growth in all parts of the United Kingdom.

The British people can trust this government because we have a plan for a stronger economy and I commend this Statement to the House.

GUILTY!

Prime Minister Boris Johnson admits guilt at last – but serial liar refuses to resign

Prime Minister Boris Johnson and Chancellor of the Exchequer Rishi Sunak have both been fined by the Metropolitan Police for breaching Covid regulations.

Prime Minister Boris Johnson made the following statement yesterday:

Today I have received a fixed penalty notice from the Metropolitan Police relating to an event in Downing Street on 19th June 2020, and let me say immediately that I have paid the fine and I once again offer a full apology.

And in a spirit of openness and humility, I want to be completely clear about what happened on that date.

My day began shortly after 7am, and I chaired eight meetings in No10, including the Cabinet Committee deciding Covid strategy, I visited a school in Hemel Hempstead, which took me out of Downing Street for over four hours.

And amongst all these engagements, on a day that happened to be my birthday, there was a brief gathering in the Cabinet Room shortly after 2pm, lasting for less than 10 minutes, during which people I work with kindly passed on their good wishes.

And I have to say in all frankness, at the time, it did not occur to me that this might have been a breach of the rules.

But of course the police have found otherwise and I fully respect the outcome of their investigation.

I understand the anger that many will feel that I myself fell short when it came to observing the very rules which the Government I lead had introduced to protect the public, and I accept in all sincerity that people had a right to expect better.

Now I feel an even greater sense of obligation to deliver on the priorities of the British people:

strengthening our economy,

creating jobs and opportunities,

levelling up the whole United Kingdom,

now, of course, ensuring that Putin fails in Ukraine, and easing the burden imposed on hard-working families caused by higher energy prices.

I will take forward that task with due humility, but with maximum determination to fulfil my duty and do what is best for the country I serve.

Whether this short statement, which addresses transgressions commited on just ONE day during lockdown, will be enough to save his political life is now in the hands of Conservative MPs, and Conservative MPs alone.

If it was left to the people of the country to decide Johnson’s fate – those millions of people who stuck to the Covid rules imposed by this government – there can be little doubt Johnson would be finished.

The Prime Minister said it himself: people had a right to expect better. If he had a scintilla of honour, Johnson would resign without delay.

Tax cut worth up to £1,000 for half a million small businesses starts today

Tax cut worth up to £1,000 for eligible businesses announced by the Chancellor at the Spring Statement takes effect today
Increase in Employment Allowance from £4,000 to £5,000 benefits around 495,000 businesses – 30% of all UK firms
Takes the total number of firms not paying the Health and Social Care Levy to 670,000

Nearly half a million UK businesses will benefit from a tax cut worth up to £1,000 from today (6 April 2022).

The Employment Allowance has risen from £4,000 to £5,000 – meaning smaller firms will be able to claim up to £5,000 off their employer National Insurance Contributions (NICs) bills.

Announced by the Chancellor at last month’s Spring Statement to reduce employment costs, the change takes an extra 50,000 firms out of paying NICs and the Health and Social Care Levy. This increases the total number of businesses not paying NICs and the Levy to 670,000.

Chancellor Rishi Sunak said: “This tax cut for half a million businesses will help them thrive and grow to help drive our economic recovery.

“It comes on top of a suite of wider tax cuts available to firms, including 50% business rates relief, a record fuel duty cut and the super-deduction, the largest two-year business tax cut in our history.”

This is the third time the government has increased the Employment Allowance since its introduction in 2014, demonstrating an enduring commitment to supporting smaller businesses. Firms will be able to employ four full-time workers on the National Living Wage without paying employer NICs at all.

94% of businesses benefitting from the £1,000 increase are small and micro businesses, and the sectors that will see the highest numbers of employers benefitting are the wholesale and retail sector (87,000); the professional, scientific and technical activities industry (63,000); and the construction sector (52,000).

Today’s Employment Allowance change is one of a number of measures on offer to spur business growth, including that:

Last week eligible high street businesses saw the start of a new 50% business rates relief worth almost £1.7 billion, subject to a £110,000 cash cap per business.
Businesses across the board are also benefitting from a freeze to the business rates multiplier, putting the brakes on bill increases and worth £4.6 billion over the next five years.
Businesses are already benefitting from our temporary twelve-month-long 5p cut to fuel duty.
Companies have one year left to make investments that benefit from the super-deduction, the largest two-year business tax cut in modern British history.
Our landmark Help to Grow programmes are supporting SMEs to adopt productivity enhancing software and to get mini-MBAs.
We will ensure that our tax regime for innovation is globally competitive and properly incentivises higher business investment in R&D, with further plans to be set out in the Autumn.

Michelle Ovens CBE, founder, Small Business Britain, said: “The Chancellor’s move to increase the employment allowance is welcome, and will certainty play a role in helping those businesses with employees deal with the huge cost-of-living challenges they are currently facing.

“In particular, it is good to see the immediacy of this rise in employment allowance, which will go towards helping businesses asap.”

Martin McTague, National Chair of the Federation of Small Businesses, said: ““The increase in the Employment Allowance helps small firms do what they do best, creating and sustaining jobs.

“This was FSB’s ‘hero ask’ at the Spring Statement, and we have hugely valued the time taken by Treasury officials to work with us on the positive impact this will have not just on work opportunities, but also training and investment.

“The Chancellor has now raised the Allowance twice since his appointment, stepping up for small businesses.”

Lee Harris-Hamer, from White Horse cleaning services based in Thirsk, North Yorkshire, said: “As a growing company, we appreciate the opportunity to reduce our annual NI liability because this helps us to invest the savings in other areas like staff training and further growth.

“Staff are our key asset and we want to be able to continue recruiting and offering more employment opportunities locally. Government has supported us with the change and we are proud to be members of FSB who championed the increase.”

Jo Bevilacqua, owner of Serenity Loves hair and beauty salon, Peterborough: “This rise in the employment allowance offers welcome breathing space for my small business and others like us across the country.

“In an age where we are all facing increasing costs from all angles and every penny counts, this will help ease some pressure, allowing us to invest more in staff – whether it is increasing salaries or offering training.”

The 2022 Spring Statement: reaction and implications for Scotland

Analysis by the Fraser of Allander Institute

Many had anticipated that the Chancellor would use today’s Spring Statement to announce a more targeted package of support for lower-income households than he had in February. Instead, the Chancellor used it to reiterate his emphasis on fiscal prudence whilst promising an income tax cut in 2024.

The surprise (1): no targeted support

There was a broad expectation that Sunak would use today’s announcement to announce financial support for lower income households, probably via additional spending on social security. There was certainly a very strong case for him doing so.

Part of the reason why the current spike in inflation is creating a cost of living crisis is that the inflationary rise has happened so suddenly that normal benefit uprating policy is out of touch with reality. Benefits are normally uprated in April each year in line with inflation. But the measure of inflation used is from September the previous year.

In September, inflation was running at 3.1%. By February it was 6.2%. It is forecast to average 7.4% in 2022 (peaking at 8.7%). This means big real terms cuts for benefits in 2022, potentially followed by a big upswing in 2023, as uprating catches up with reality.

Households, particularly low income households, are not well placed to deal with such volatility. But governments are. Addressing this disconnect would have been relatively easy, and fiscally neutral in the medium term.

Surprisingly, the Chancellor offered nothing on social security. The cost of living crisis will affect lower income households much more acutely than those on middle or higher incomes.

Spending on energy and food makes up a higher share of their incomes; they less ability to absorb cost increases via savings; and they have fewer options to make savings by switching to lower priced product lines. There does not appear to be much consideration of the distributional dimension to this crisis.

The only attempt at targeting towards the most financially constrained was an additional £500m for local authorities to distribute to households most in need. The Scottish Government will receive a Barnett consequential as a result (likely to be around £50m). But this is a small amount of support in the context of the scale of the problem.

… but more broad-based support

Instead, Sunak’s support for households was again broad-based. The main element was a 5p cut in fuel duty. This is very weakly progressive as a policy – low income households spend proportionately more of their income on petrol than higher income households – but it provides a larger cash boost to high income households. And, by spreading support so thinly, the £5bn cost of this policy will provide limited relief to households most financially exposed to the rise in the cost of living. (If it provides much relief at all – how much of the 5p cut might be passed on to consumers is unknown).

The Chancellor chose not to postpone the increase in employee and employer NICs that was announced in September. This in itself was sensible – postponing the rise would mainly have benefitted higher earners. Furthermore, there would be a real risk that a one-year postponement could evolve into a permanent postponement as the election gets closer and the memory of the pandemic – used in part as justification for the NICs rise – fades

But what he did do was increase the threshold at which NICs is due, from £9,900 that was pencilled in for 2022 to £12,570 (bringing forward a sensible commitment to align the threshold with the income tax personal allowance). This increase in the threshold is worth just over £300 per year for employees. The effect is to offset the impact of the increase in NICs rate for the majority of earners in 2022. The cost of the measure in 2022 is £6bn.

The surprise (2): Income tax cut in 2024

Chancellors traditionally leave their flagship policy announcement until the end of their speech. Sunak’s flagship today was a promise to cut the basic rate of income tax from 20p to 19p in 2024.

The economic rationale for this is far from clear. The rise in employee and employer NICs (and subsequent health and social care levy) was justified by the need to address long-term fiscal challenges resulting from an ageing population and a smaller economy (thanks to Brexit and Covid).

But the proposed income tax cut will offset most of the impact of the Health and Social Care Levy on revenues. The outcome of the two policies together – the income tax cut and NICs rise – is to transfer the burden of tax from pensioners, landlords and others with unearned income to earners.

The proposed income tax cut will not apply in Scotland (a small caveat to this is that the income tax rate on savings will be cut to 19p UK-wide, since it is not devolved). Instead, the Scottish Government will, in 2024, receive an increase in its block grant which is broadly equivalent to the costs of a 1p reduction in the UK basic rate in Scotland.

The Scottish Government will be free to decide how to allocate this additional resource – whether that be through tax cuts of its own, or higher spending on public services. The politics of this will be interesting.

Summary

This was not the set of measures that many people had expected or hoped for. 2022 is set to see the biggest single-year fall in real household disposable income since records began in the late 1950s, according to the OBR.

The main policy measures announced today for 2022 were the 5p fuel duty cut, which will make little difference to the households most exposed to the crisis; and the rise in the NICs thresholds, which ensures that the government’s tax rise will not add to the cost of living burden this year for most earners.

These policies of course have to be seen alongside February’s £9bn package – which included the £150 grants to households in council tax bands A-D, and a £200 reduction in energy bills in 2022 (repayable in future years).

In combination, the announcements in February and March equate to some £17.6bn of support for household incomes in 2022/23. This includes £3bn on grants via council tax, £2.4bn through fuel duty cuts, £6.3bn through raising the primary NICs threshold, and £6bn of direct support for energy bills which is recouped in the subsequent five years.

On one level this is a generous package of support. But it has to be seen within the context of an substantial and sudden shock to living standards. The government is in a better position to smooth the impacts of this shock that individual households, particularly those on the lowest incomes.

But across the two announcements, there has been no targeted support to the lowest income households. As a result, benefits are set to rise 3.1% in April, against a forecast inflation rate in 2022 of 7.4% – a real terms cut in benefits of 4% (or more, when we factor in low income households higher proportionate spending on energy and food).

This outcome could have been avoided relatively costlessly by adapting standard benefit uprating rules. There is certainly no sense in which such a measure could not have been ‘afforded’, even within the Chancellor’s own fiscal rules.

There was also no extra spending on public services. This means that the cash allocations set out in last year’s Spending Review are now worth less in real terms. Public departments face rising costs of energy too, and meeting these costs within existing budgets will mean less for other things.

Rishi Sunak is rapidly repainting the image he carved for himself during the pandemic. Gone is the priority to ‘do whatever it takes’. It is replaced by a reiteration of his desire to meet his own fiscal rules, whilst pencilling in a flagship cut to income tax.

The political calculation is that the promise of tax cuts and fiscal prudence will appeal to the core elements of the electoral base.

But this may yet prove a risky strategy. In the meantime, 2022 is set to be an extremely tough year for many households.

Chancellor launches efficiency drive to cut £5.5 BILLION of Govt. waste

The Prime Minister and the Chancellor order new crackdown on cross-Whitehall waste to drive efficiency, effectiveness, and economy across government.
The drive will be spearheaded by a new Chancellor-chaired “Efficiency and Value for Money Committee” that will cut £5.5 billion worth of waste – with savings used to fund vital public services.
As part of the crackdown, the annual NHS efficiency target will be doubled to 2.2% and “quangos” will be expected to find at least £800m which will be pumped back into public services.

A CROSS-WHITEHALL efficiency crackdown to cut £5.5 billion of wasteful spending was announced by the Chancellor today (Sunday 20 March).

At the request of the Prime Minister, the Chancellor, Rishi Sunak will spearhead a new drive on efficiency, effectiveness and economy in government spending to ensure departments are delivering the highest quality services at the best value.

The crackdown will be driven by a new Chancellor-chaired Efficiency and Value for Money Committee that will ensure the 5% efficiency target set at the 2021 Spending Review is met across Whitehall and scrutinise strategies to prevent fraud and error. The move will save a total of £5.5 billion with the money being pumped directly back into vital public services.

As part of the renewed drive, the Chancellor said the NHS efficiency commitment will double to 2.2% a year – freeing up £4.75 billion to fund NHS priority areas over the next three years

These savings will be made through a range of programmes including the digitisation of diagnostic and front-line services, which has been shown to reduce cost per admission by up to 13%, improving the efficiency of surgical hubs and developing digital tools to cut time spend by NHS staff on admin tasks.

Surgical hubs improve efficiency by separating emergency and elective care, so more patients can be seen in a given amount of time, improving value for money without impacting patient safety.

This increased efficiency target will ensure that the record funding settlement of £188.9 billion a year by 2024-25 for the Department for Health and Social Care is delivering the best possible value for money for the taxpayer, the money saved will be used to fund front line NHS priorities.

Chancellor of the Exchequer, Rishi Sunak said: “During these challenging times it’s vital that every single penny of taxpayers hard-earned cash is being spent well.

“The current level of waste across government is simply not acceptable – which is why we’re doubling down on wasteful spending and launching an efficiency drive to make £5.5 billion worth of savings.

“That money will then be pumped directly into the world class public services that the British people deserve “

The crackdown will also see a review of Government Arm’s Length Bodies or “Quangos” who will be expected to save at least £800m from their budgets.

The Arm’s Length Body Review will see savings come from better use of property, reduced reliance on consultants, increased digitisation and greater use of shared services, as well as the use of benchmarking to drive efficiencies.

The Treasury will also launch a new Innovation Challenge to crowdsource ideas from civil servants on how government can reduce waste and improve public services, with winners selected this Summer and best ideas becoming Government policy

This new Committee comes ahead of the Chancellor’s Spring Statement on Wednesday (23rd March) where the Chancellor will update Parliament on his plan for the economy in response to the OBR’s latest economic forecasts.

Ukraine crisis: Prime Minister announces further humanitarian aid

PM Boris Johnson announces £40 million of further humanitarian aid to Ukraine

£40m more aid released to provide vital medical supplies and other help to Ukraine
Assistance in addition to wider economic and military support bolstering the Ukrainian resistance to the Russian invasion
Announcement follows PM discussions with President Zelenskyy and meeting with Ukrainian community leaders in London this weekend
The UK has stepped up its support to the people of Ukraine again today (Sunday) with the announcement of £40 million of further humanitarian aid to the country.

The funding will help aid agencies respond to the deteriorating humanitarian situation, creating a lifeline for Ukrainians with access to basic necessities and medical supplies such as medicines, syringes, dressings and wound care packs.

UK Government humanitarian experts have also deployed to the region to support those fleeing the violence in Ukraine.

On Saturday evening the Prime Minister spoke again to Ukrainian President Zelenskyy who updated him on the critical need for humanitarian assistance as people are forced to flee their homes and seek safety.

This evening he met Ukrainian community leaders at the Ukrainian Catholic Cathedral in London to hear their stories about the impact of Russian violence on the people of Ukraine.

In response to the growing concern of Ukrainians living in the UK about their welfare of their families back home, today the Prime Minister also confirmed that any person settled in the UK will be able to bring their Ukrainian immediate family members to join them here. This will benefit many thousands of people who at this moment are making desperate choices about their future.

The UK also continues to support those Ukrainians who wish to remain close to home through logistical and humanitarian support to Ukraine’s neighbours.

The Prime Minister said: “In the last days the world has witnessed awe-inspiring displays of bravery and heroism from the Ukrainian people in response to those who seek to obliterate their freedom by force.

“The UK will not turn our backs in Ukraine’s hour of need. We are providing all the economic and military support we can to help those Ukrainians risking everything to protect their country.”

This latest assistance package brings the total amount of UK Government aid pledged to Ukraine this year to £140 million. Last week the Prime Minister also announced the UK would guarantee up to $500 million of loans to Ukraine through Multilateral Development Banks.

The UK also continues to supply defensive military equipment to the Ukrainian military to bolster their resistance against invading Russian forces.

Foreign Secretary Liz Truss said: “Putin’s regime has undertaken an illegal and violent assault against the people of Ukraine.

“The UK will provide £40 million in aid to help our Ukrainian friends, more funding to tackle what is becoming a humanitarian crisis.

“We stand with Ukraine, shoulder to shoulder, in its hour of need”.

Scotland also sends aid to Ukraine

Scottish Government to provide financial aid and medical supplies to Ukraine following Russian invasion

The Scottish Government will provide both financial aid and medical supplies to Ukraine following the illegal invasion by Russia.

Firstly, an initial £4m in humanitarian aid will be provided. As part of the global humanitarian efforts, this will help provide basic humanitarian assistance, including in health, water and sanitation, and shelter.

Officials are in discussions with humanitarian aid agencies to identify the best route to get this aid most quickly to those affected by the Ukraine crisis, including to those displaced by the invasion.

In addition to financial aid, the Scottish Government will provide medical supplies to Ukraine.

The supplies provided are based on a list of urgently needed medical equipment, supplies and pharmaceuticals provided by the Ukrainian Government via their Edinburgh consulate.

The supplies to be provided will include anaesthetic machines, syringe pumps and bandages.

However, further work is underway to identify what further supplies can be provided and in what quantities, in order that they can be shipped to Ukraine as quickly as possible.

First Minister Nicola Sturgeon said: “Scotland has given its unqualified support for Ukrainian independence, sovereignty and territorial integrity and to the people of Ukraine as they bravely resist the unprovoked and illegal aggression of the Russian regime.

“As a responsible and compassionate global citizen we will help with an initial £4 million in financial aid to provide essential help to those in desperate need.

“And we are also working with the Ukrainian government to provide medical supplies from stocks we hold. We are coordinating with other UK nations to ensure that these supplies get to where they are desperately needed as quickly as possible.

“There will be much more that we need to do in the days to come. But one thing is already clear. Words of support are not enough. Ukraine needs our active help and support now, and we will provide as much practical support as possible, starting immediately.”

Scotland’s Humanitarian Emergency Response Fund is currently assessing the response capacity on the Ukraine crisis.

Further Economic Sanctions Targeted at the Central Bank of the Russian Federation

The UK government has announced its intention to take further restrictive economic measures in response to the invasion of Ukraine by Russia, by targeting the Central Bank of the Russian Federation (CBR).

Following already announced sanctions measures aimed at imposing severe consequences on Russian President Vladimir Putin and the Russian economy, the Chancellor of the Exchequer, in coordination with the Governor of the Bank of England, yesterday announced the UK Government’s intention to take further economic action against Russia by targeting the Central Bank of the Russian Federation (CBR).

This action is taken in concert with the US and the European Union, to prevent the CBR from deploying its foreign reserves in ways that undermine the impact of sanctions imposed by us and our allies, and to undercut its ability to engage in foreign exchange transactions to support the Russian rouble.

The UK Government will immediately take all necessary steps to bring into effect restrictions to prohibit any UK natural or legal persons from undertaking financial transactions involving the CBR, the Russian National Wealth Fund, and the Ministry of Finance of the Russian Federation.

The UK Government intends to make further related designations this week, working alongside our international partners.

The Chancellor said: “These measures demonstrate our determination to apply severe economic sanctions in response to Russia’s invasion of Ukraine.

“We are announcing this action in rapid coordination with our US and European allies to move in lock step once more with our international partners, to demonstrate our steadfast resolve in imposing the highest costs on Russia and to cut her off from the international financial system so long as this conflict persists.

The Governor of the Bank of England said: “The Bank of England continues to take any and all actions needed to support the Government’s response to the Russian invasion of Ukraine.

“We welcome the steps taken today by the UK Government, in coordination with EU and US authorities, as an important and powerful demonstration of the UK’s commitment to the international rule of law.”

Chancellor: UK will be the world’s first net zero financial centre

COP26: UK firms must plan for low-carbon future

Chancellor to set out plans for UK to be the world’s first net zero aligned financial centre, calling for other countries to follow suit
Over $130 trillion – 40% of the world’s financial assets – will now be aligned with the climate goals in the Paris Agreement, thanks to climate commitments from financial services firms
New UK climate finance projects funded from the UK’s international climate finance commitment will help developing countries to fund green growth and adapt to the changing climate

The Chancellor will set out the UK’s plans to become the world’s first net zero aligned financial centre and welcome “historic” climate commitments from private companies covering $130 trillion of financial assets as he hosts Finance Day at COP26 today (3 November 2021).

These commitments will help to create a huge pool of cash that could fund our net zero transition, including the move away from coal, the shift to electric cars, and the planting of more trees.

Convening the largest ever meeting of finance leaders on climate change, Rishi Sunak will set out the UK’s “responsibility to lead the way” and unveil a fresh push to decarbonise our world-leading financial centre.

Under the proposals, there will be new requirements for UK financial institutions and listed companies to publish net zero transition plans that detail how they will adapt and decarbonise as the UK moves towards to a net zero economy by 2050.

To guard against greenwashing, a science-based ‘gold standard’ for transition plans will be drawn up by a new Transition Plan Taskforce, composed of industry and academic leaders, regulators, and civil society groups.

In his opening keynote at Finance Day, Mr Sunak will hail the progress made to “rewire the entire global financial system for net zero” under the UK’s leadership of COP and reveal that over $130 trillion – around 40% of the world’s financial assets – is now being aligned with the climate goals in the Paris Agreement, including limiting global warming to 1.5C.

These commitments come from over 450 firms from all parts of the financial industry, based in 45 countries across six continents, and have been delivered through the Glasgow Financial Alliance for Net Zero (GFANZ), which was launched by the UK to harness the power of the financial sector in the transition to net zero.

The UK has also worked as chair of the G7, and in partnership with other G20 countries, to ensure all economic and financial decisions take the risks of climate change into account. The UK has convened over 30 advanced and developing countries from across 6 continents and representing over 70% of global GDP to back the creation of a new global climate reporting standards by the IFRS Foundation to give investors the information they need to fund net zero.

Celebrating this progress, the Chancellor will urge financial firms to “mobilise private finance quickly and at scale” and call on governments to enact bold climate policies to take advantage of these enormous financial resources.

Reiterating the importance the UK COP Presidency has placed on getting finance to the most vulnerable countries, Mr Sunak will also highlight that the $100 billion climate finance target will be met by 2023 and urge developed countries to boost their support to developing countries – including by helping them tap into the trillions of dollars committed to net zero by the private sector.

The UK will seek to address barriers to finance faced by developing countries with a series of new green initiatives funded from its international climate finance (ICF) commitment, including £100 million to respond to recommendations from the UK co-chaired Taskforce on Access to Climate Finance to make it faster and easier for developing countries to access finance for their climate plans.

In total, the UK will spend £576 million on a package of initiatives to mobilise finance into emerging markets and developing economies, including £66 million to expand the UK’s MOBILIST programme, which helps to develop new investment products which can be listed on public markets and attract different types of investors.

And in a further advance towards the $100 billion goal, the Chancellor will announce the launch of an innovative new financing mechanism – the Climate Investment Funds’ Capital Markets Mechanism (CCMM) – that will boost investment into clean energy like solar and wind power in developing countries.

The UK is already the biggest donor to the multilateral Climate Investment Funds, having contributed £2.5 billion, and will now give the returns from its investments (known as reflows) to CCMM. This new fund will use reflows to help it issue green bonds worth billions of pounds in the City of London – the world’s leading green finance centre – and could leverage an extra $30-70 billion from other sources for specific clean energy projects.

Final-Fact-sheet-net-zero-financial-centre Download

Janine Hirt, Chief Executive Officer, Innovate Finance said: “As the voice of UK FinTech, we passionately support the development of the UK as the first net zero aligned financial centre.

“Net Zero transition will be driven by finance and capital markets and it will be enabled by technology and data. As a leading global centre for financial services and for financial technology and innovation, the UK can and should lead the way in rewiring the entire global financial system for net zero.”

Dr Ben Caldecott, Director, UK Centre for Greening Finance and Investment (CGFI) Chief said: “This is huge. The world’s largest international financial centre will become the world’s first net zero-aligned financial centre.

“This is underpinned by world-leading regulation and the economy-wide adoption of net zero transition plans. This will spur demand for green finance and accelerate decarbonisation, not just in the UK but wherever UK firms do business.

“This will make a real difference and means the UK financial services sector will play an even larger role in providing the capital and financial services required to deliver net zero globally.”

“The UK Centre for Greening Finance and Investment is excited to act as the secretariat, together with E3G, for the new Transition Plan Taskforce to develop a ‘gold standard’ for transition plans and associated cutting edge metrics.

“We are the UK’s national centre established to accelerate the adoption and use of climate and environmental data and analytics by financial institutions internationally.”

Julie Page, Chief Executive Officer, AON said: “We welcome and support the Chancellor’s plans for the UK to be the world’s first net zero aligned financial centre.

“All industries have an important role in helping to achieve this goal and through Aon’s own 2030 net-zero commitment, we will contribute to this historical commitment and help lead the way towards a net zero economy.”

Dr Rhian-Mari Thomas OBE, Chief Executive, Green Finance Institute said: “Today marks the day that green finance has reached a point of critical momentum. The amount of capital committed to the transition to net zero has reached unprecedented levels.

“The task before us now is to come together in radical collaboration to unlock investment opportunities at speed and scale so we can channel this wall of capital into real economy outcomes that not only positions the UK as the world’s first net zero financial centre but also delivers a just and resilient net-zero global economy”

Kay Swinburne, Vice Chair of Financial Services, KPMG UK said: “This announcement will provide the financial services industry with a valuable set of unified metrics to measure progress towards decarbonisation and it is brave to put a gold standard in place for all companies raising funding.

“We’re pleased to see the UK lead by example by not only establishing the GFANZ initiative, but also expanding private sector commitments and supporting a science based approach to reporting standards.”

James Alexander, Chief Executive, UK Sustainable Investment and Finance Association (UKSIF) said: “We warmly welcome the Chancellor’s ambition to make the UK the world’s first net-zero aligned financial services centre.

“As the first major economy to legislate to cut emissions to net zero by 2050, this is a natural step in the UK’s climate leadership journey and recognises the central role of the sustainable finance sector in addressing the climate crisis.

“UKSIF and our members look forward to actively engaging in these next steps, particularly helping to build a shared definition of a good quality transition plan and more broadly a net-zero finance sector.

“Government and regulators should work closely with the financial services industry to identify the policies and actions required to progress our sector towards this world-leading ambition.”

Investing to tackle climate change

The crucial role of private investment in efforts to achieve net zero will be set out by First Minister Nicola Sturgeon later today (Wednesday) as part of Finance Day at COP26.

The First Minister will join the Mayor of London Sadiq Khan at the opening session of a Green Investment Showcase to detail how private investors can help drive the green industries of the future.

The First Minister will emphasise Scotland’s role as a world leader in sustainable industries and highlight the associated investment opportunities that exist, including through Scotland’s Green Investment Portfolio – now valued at £2 billion and which is expected to reach £3 billion in 2022.

The Showcase, hosted by Scottish Enterprise, will be attended by international and UK-based institutional investors, along with climate and clean tech companies seeking investment.

The First Minister said: “COP26 provides what is possibly our best chance to advance the societal and economic change that is demanded by the climate emergency, delivering lasting action towards net zero and a climate-resilient future.

“By grasping the opportunities provided by green industries and supply chains, we can create the good green jobs of the future and secure a just transition away from fossil fuels.

“The role of private capital is fundamental to achieving this and governments must do what they can to channel investment into areas supporting transformational change.

“Through our Green Investment Portfolio, which is already valued at £2 billion, the Scottish Government highlights a range of exciting, commercially assessed investment propositions to investors and showcases businesses in Scotland as world leaders in innovative green industries of the future.”

Mayor of London Sadiq Khan, said: “COP26 is a landmark moment in the fight against climate change. We need to take bold action now or we will face catastrophic consequences in the years to come.

“Climate action and economic growth must go hand in hand – in London I’m investing in green technology which generates good quality jobs, for Londoners and across the UK. Turning the tide on climate change will require record investment and coordinated action from everyone – cities, businesses, governments and communities.

“That’s why I am committed to working with the Scottish Government in pioneering green investment and I’m proud to announce that I will be committing over £30 million in additional funding in London which will help encourage up to £150 million of private investment in low carbon projects and create jobs that will help achieve our 2030 net zero target.”

£150 million budget boost for Scottish small businesses

The Chancellor is expected to announce a new, £150 million fund to help thousands of small and medium sized enterprises in Scotland in tomorrow’s budget – building on the Government’s commitment to level up opportunities across the UK.

The fund will be delivered through the British Business Bank, working closely with local partners, and will help Scottish SMEs to invest and grow. It will build on the success of existing funds in other parts of the UK, which have been shown to support the creation of high-paying high productivity jobs and the upskilling of existing workforces.

Similar existing funds in England and Northern Ireland typically provide loans or invest in local companies – this can be recent start-ups looking to borrow smaller amounts to kickstart activity or established SMEs looking for larger investments to grow their business. Details on how businesses in Scotland can access the fund will be outlined in due course.

Chancellor Rishi Sunak said: “This fund will help thousands of small businesses in Scotland to make ideas a reality and grow their companies . I’m always impressed by the innovation and determination of SMEs and the UK government will continue to support businesses across the UK.”

Since the start of the pandemic the UK Government has spent £352 billion right across the UK on support measures. In Scotland this included protecting more than 900,000 jobs through the furlough scheme, £294 million in self-employment support, help for businesses and the procurement of vaccines.

In addition to the £150 million for Scotland, Wales will benefit from £130 million for a new fund and the British Business Bank will receive an additional £70 million to build on existing programmes in Northern Ireland.

£5 million for cutting-edge treatments for injured veterans

Chancellor expected to provide £5 million at Budget for new UK-wide Veterans’ Health Innovation Fund.
Investment will help to ensure veterans who have suffered injuries or mental health challenges receive the most cutting-edge treatments.
Innovative new surgery techniques and treatment options for amputees and blast victims to receive funding.

Veterans who have suffered injuries or mental health challenges are set to receive innovative and cutting-edge treatments thanks to a new £5 million fund, the Chancellor is expected to announce next week.

At Wednesday’s Budget and Spending Review, Rishi Sunak will unveil the new UK-wide Veterans’ Health Innovation Fund – which will be used to help develop ground-breaking treatments to help veterans with physical injuries, and those with hard-to-treat mental health injuries such as Post-Traumatic Stress Disorder.

Between 2001 and March 2021 there were more than 300 UK service personnel whose injuries included a traumatic or surgical amputation as a result of sustained injuries in Afghanistan.

One in ten serving military personnel were also seen by medics for a mental health-related reason last year, while the number of veterans entering psychological therapies on the NHS increased by around 45 percent between 2014 and 2020.

The Veterans’ Health Innovation Fund will provide grants for research into cutting-edge surgery techniques and treatments for amputees and veterans with blast injuries, new treatments for mental health challenges, and new technology to help injured veterans rebuild their lives and participate in work, education and sport. It will also fund research and treatment options for veterans with mild traumatic brain injury.

Grants could fund research into new surgery techniques such as Direct Skeletal Fixation, which enables artificial limbs to be permanently fixed to bones, removing the need to use traditional socket-based technology.

The Fund will also aim to support drug-assisted therapy trials, currently underway in the US and Israel, which have shown promising results in treating patients suffering with PTSD, and could also help with restoring patients’ function after brain injuries.

Chancellor of the Exchequer Rishi Sunak said: “We hugely value the sacrifices made by so many brave men and women in our Armed Forces. Supporting injured veterans and those with mental health needs is a crucial part of repaying the huge debt we all owe them.

“This new Fund will help ensure veterans get the support they deserve with the very best ground-breaking research and treatments.”

The fund will be distributed by the Office for Veterans’ Affairs (OVA) as part of the Government’s commitment to support veterans.

In addition to the new £5 million Veterans’ Health Innovation Fund, the Government has provided £10 million for veterans with mental health needs in both the 2021 and 2020 budgets. These funds are distributed through the AFCFT.

In September 2021, the Prime Minister also announced that Armed Forces charities would receive £5 million in additional funding to support veterans, including those who may be struggling following recent events in Afghanistan.