RCN Scotland planning for strike action in the NHS continues after members in Scotland rejected a revised NHS pay offer. The union will announce dates for strike action early in the New Year.
An overwhelming 82% of members who voted rejected the offer in the consultative ballot which closed at midday on Monday.
Commenting on the result, Julie Lamberth, RCN Scotland Board Chair, said: “It was the right thing to ask our members whether to accept or reject this offer.
“It directly affects their lives and each eligible member needed to be given the chance to have their say. And the result could not be clearer – we have forcefully rejected what the Scottish government said is its ‘best and final’ offer.
“Make no mistake – we do not want to go on strike. Years of being undervalued and understaffed have left us feeling we have no alternative because enough is enough. The ball is in Scottish government’s court if strike action is going to be avoided.
“Members can be reassured that planning for strike action will be thorough. The safety of patients and of our members are paramount and we will be working hard to ensure that while any strike action is disruptive, it does not put patients or our members at risk.
“I would urge members to make sure their membership details with the RCN are fully up to date, including place of employment and name of employer. That way you will be able to continue to receive important updates from the RCN.”
More than 90 dentists withdrew from NHS Lothian dental list from 2021 to June 2022, a Freedom of Information request submitted by the Scottish Labour has revealed.
Sarah Boyack warns of a health crisis as waiting times for A&E and NHS dentistry continue to spiral, while delayed discharges have gone up.
Scottish Labour’s FOI request revealed that between 2021 and June 2022, 92 dentists withdrew from NHS Lothian dental list. As at beginning of June this year, out of the 163 general dental practices in Lothian, only 51 confirmed that they are accepting patients, with some accepting children only.
Since 8th May 2022 and up until 11th December, there has been only one week during which the percentage of people seen within Scottish Government’s 4-hour target was above 70 per cent – in the week ending 11th December more than 1,756 people were stuck in A&E for more than four hours – only 63.6 per cent of those attending NHS Lothian’s emergencies were seen within 4 hours. In the same week, 353 people were stuck in A&E for more than 12 hours.
This comes as the recent monthly report on delayed discharge shows rates in NHS Lothian for October 2022 soaring to 1,644 compared to 1,420 in September 2022.
This makes NHS Lothian the second-worst performing health board in Scotland, only topped by NHS Greater Glasgow and Clyde, with 3,848 delayed discharges in October 2022.
October recorded the highest average number of beds occupied per day due to delayed discharges in Scotland since the current guidance came into place in July 2016.
Scottish Labour MSP for Lothian Sarah Boyacksaid: “Another month, another set of damning statistics from NHS Lothian.
“On top of the cost of living crisis, which is taking its toll on people’s mental and physical health, we see piling pressure on our NHS, worsening patients outcomes and huge waste of public money.
“With the freezing cold, people will get sick and they will require care. That’s why we need support to GPs to allow them to respond to the rising demand and handle cases, whenever possible, at primary care level.
“These are not just figures – it is someone’s dad, friend or life partner; it’s the NHS staff who is overworked and underpaid; it’s the people who left our health service because they simply couldn’t cope.
“With a general election approaching, now is the time focus on what really matters and make a difference for millions of people.”
Fuel Insecurity Fund extended to help fuel poor households
Thousands of vulnerable households will be supported by the continuation of the Scottish Government’s uprated £20 million Fuel Insecurity Fund.
Announced as part of last week’s Scottish Budget 2023-24, the investment will enable third sector partners to continue to provide support to households who are at risk of self-disconnection or self-rationing their energy use.
While the Scottish Government remains committed to engaging with the UK Government to deliver a referendum on Scottish Independence, funding that was originally earmarked for a referendum in 2023 will now be used to help tackle fuel poverty.
Last week’s Scottish Budget included additional steps to address inequality while tackling the climate emergency including increased investment of over £366 million next year to support the delivery of the Heat in Buildings Strategy. It forms part of a package of measures introduced by the Scottish Government to protect the most vulnerable households from the impact of the current cost of living crisis.
The decisions taken through the Emergency Budget Review in November enabled the Scottish Government to provide additional immediate support to people most impacted by the cost of living crisis, specifically rising energy prices, by doubling the Fuel Insecurity Fund to £20 million this year. The Scottish Budget is now protecting that investment into 2023-24.
First Minister Nicola Sturgeon and Minister for Zero Carbon Buildings Patrick Harvie met with people on the frontline of tackling fuel poverty, while visiting the Wise Group in Glasgow, a social enterprise working to lift people out of poverty by providing mentoring support to help with employment and life skills and offering energy advice.
First Minister Nicola Sturgeon said: “People across our country are paying a steep price for the economic mismanagement of the UK Government, with the cost of living forcing many to choose between heating their home or eating – the Fuel Insecurity Fund aims to stop that happening.
“The Scottish Government has, and always will, use its currently limited powers to the maximum extent in order to meet the challenges being faced by the people of Scotland right now. Powers relating to energy markets are reserved to the UK Government, so I am renewing my call for further and more urgent action, to support the most vulnerable households.
“With this intervention – as with many others the Scottish Government has set out – we are having to divert funding into policies that aim to minimise the impact on people as a direct result of UK Government policy.
“The full powers of independence would enable us to make different choices and help people facing the devastating consequences of the cost of living crisis.”
Minister for Zero Carbon Buildings and Tenants’ Rights Patrick Harvie said: “Everyone needs a safe, warm and affordable place to call home and yet despite this we know that many people are struggling under the weight of their energy bills and wider cost of living pressures.
“Last week, the Scottish Budget confirmed £366m for insulating homes and buildings and tackling fuel poverty as part of our £1.8 billion commitment to Heat in Buildings over this Parliament.
“That is essential work to make sure that Scotland has warmer homes which are cheaper to heat for decades ahead. We also need the full range of powers on matters like energy pricing, consumer protection and energy supply to make the biggest possible difference.
“But right now, the Fuel Insecurity Fund is a lifeline to many people struggling most with fuel poverty which is why we have made the commitment for next year.”
Figures from the UKs largest veterinary charity, PDSA, have revealed that more than a quarter (28%) of owners in Scotland are worried about affording vet bills – leaving them facing potentially heart-breaking decisions should their pet become ill or injured.
We are a nation of animal lovers – 83% of owners in Scotlandi say their pet makes them feel less lonely. But, as the cost of living crisis continues to hit households hard, stats from PDSA show that 7% Scotland-based pet owners would consider rehoming their pet if they were unable to afford the treatment needed should they become ill or injured.
PDSA has cautioned that these concerning findings reflect the forgotten victims of the cost-of-living crisis, as prices for essentials such as fuel (diesel – 26%, petrol – 13%), energy (80%) and food (17%) increase. This is only at risk of worsening as we head further into the frosty winter months.
Increasingly stretched finances could be putting UK pets in a potentially fatal situation, with a staggering 930,000iipets at risk of being put to sleep if their owners were hit with unexpected veterinary bills.
Research found that a third of owners (33%) turning to PDSA for help in October this year said that the cost-of-living crisis was a key factor in registering their pet with the charity, and an overwhelming are 98% concerned how the crisis will affect them and their family.
For many, the vital services provided by PDSA are the only difference between keeping their pet with the family, rehoming or euthanising; as owners struggle to choose between eating, heating their home, or treating their pet.
When surveyed, 81% of PDSA clientssaid they would prioritise paying for their pet’s emergency veterinary care over household bills should the situation arise. Meanwhile, 85%vi would put their pet’s need for things such as food and veterinary care over their own needs, such as food or heating.
This comes as the number of people claiming Universal Credit soared by nearly 100,000 between August and October, reaching its highest level of the year in October 2022 – more than 5.7 million people – and the highest number of claims this year.
PDSA Veterinary Surgeon Lynne James said: “The rising cost of living is a cause of real concern for Scotland families, but even more so for the most vulnerable, who often rely on the companionship of a pet – particularly during what can be the coldest and most lonely time of year.
“More than half of those who rely on PDSA services are aged 55 and over, and 37% are disabled or living with a serious health condition – making our Pet Hospitals a lifeline for hundreds of thousands of vulnerable owners and their pets.
“In 2021, we treated over 370,000 pets and saved the lives of 134,000 animals – ultimately keeping furry family members united with their owners, which we know is a lifeline for many. As families continue to be stretched financially, demand for our support shows no signs of abating.
“Sadly, it’s not always possible to predict when a pet might become unwell or injured, making it extremely difficult for owners to prepare for such an event – especially for the 19% of Scotland-based owners already living in poverty[vii].
“It’s PDSA’s mission to keep families together. We would encourage anyone who is struggling to afford the cost of veterinary treatment to find out if they are entitled to access our services by visiting the eligibility checker on our website. We also have lots of free advice on how to reduce the cost of caring for pets, while ensuring they remain healthy and happy.”
PDSA relies on donations to deliver vital treatment to hundreds of thousands of pets across its 48 Pet Hospitals in the UK. To keep families together this winter, the charity is urgently calling on the public’s support more than ever to prevent vulnerable people having to make a truly heartbreaking decision.
This winter we’ve seen hundreds of thousands of workers taking industrial action – or striking – to defend their pay and conditions (writes TUC’s Alex Collinson).
These are individual disputes, and it’s important to understand the details in different workplaces. But there is a common cause: a pay disaster that means workers are being paid less in real terms now than they were 14 years ago.
First things first – what’s a strike?
Trade unions exist to defend their members’ jobs, pay and conditions. Normally they try to do that through negotiations with employers, through a process called collective bargaining. But when those negotiations break down, workers have the right to collectively withdraw their labour to help bring the employer back to the bargaining table.
In Britain, the right to strike is governed by complex and restrictive industrial action laws. In summary, to count as ‘protected industrial action’, a strike must:
relate to a work dispute with your own employer
be supported by a valid secret postal ballot with independent scrutiny, in which at least of half the balloted workers have voted (in other words, “not voting” counts as a vote against the strike)
be carried out with notice
In addition, since the Tories’ 2016 Trade Union Act strikes involving workers who provide what the government calls an “important public service” can only be lawful if at least 40% of the workers balloted over the action vote in favour of it.
How much has strike activity increased?
The number of strikes has been on the rise in recent months. The latest data shows that the 417,000 days were lost due to strike action in October 2022, the highest it’s been in 11 years. Some are estimating that this December will see over a million days lost to strike action for the first time since 1989.
But it’s important to put the recent rise in strike action into context. While the number of days lost due to strike action is relatively high compared to the past couple of decades, they’d be fairly standard in any decade before the 1990s.
If more than one million working days are lost due to strikes in December, it’ll be the first time it’s happened since July 1989. But between 1970 and 1989, there were 47 months when this happened. And the 417,000 days lost due to strike action in October 2022 may be the fifth highest on record since 1990, but we regularly saw far higher figures pre-1990.
So what’s behind the rise?
Each individual strike will have different reasons behind it, but there’s some common factors behind the recent rise.
Work has been getting worse for many – lower paid, worse conditions, increasingly insecure. At the same time as workers have seen pay and conditions get worse, businesses have been giving more and more money to shareholders, with dividends paid out to shareholders growing three times faster than wages over the past decade.
And the government has been refusing to properly fund pay rises for public sector workers, failing to introduce a proper minimum wage, and attacking trade union rights, and failing to introduce a proper minimum wage.
The government’s minimum wage remains below the Real Living Wage set by the Living Wage Foundation, and, even with next year’s rise, will be £4.58 below a £15 per hour minimum wage.
Pay
We’ll start with pay. Average real pay (that’s wages once you take inflation into account) is lower now than it was in 2008. It’s not expected to go back above 2008 levels until 2027. This 19-year pay squeeze is longer than any pay squeeze we have official records for, and likely the longest since Napoleonic times.
If wages had grown in line with pre-2008 trends over the past fourteen years, they’d now be £291 per week higher than they currently are.
Over a decade of stagnant pay has directly contributed to the current crisis, leaving many people unable to cope with a sudden rise in prices. While the cost of living crisis is often presented as a recent problem, it’s been building for years.
The situation was already dire before energy bills began to rise. As we went into the pandemic, the number of people in poverty was at a record high, with the majority of those in poverty living in a working household.
The recent rise in prices has made the situation even worse. After years of stagnant pay, workers are now facing double-digit inflation while being offered single-digit pay rises. The latest data shows that, in October, nominal pay rose by 6.4 per cent, while inflation hit 11.1 per cent. Real pay has fallen by £111 per month in the past year alone.
This is particularly bad in the public sector, where pay is rising by just 3.8 per cent, and average real pay has fallen by £185 per month in the past year.
Weak pay growth in the public sector is down to the government refusing to give proper pay rises to workers that kept the country running during the pandemic. Look at health workers, for example. TUC analysis of NHS pay scales shows that:
Nurses’ real pay fell by £1,800 over the last year
Paramedics’ real pay fell by £2,400 over the last year
Midwives’ real pay fell by £2,400 over the last year
This is after a decade of pay suppression by government that has led to nurses earning £5,000 a year less in real terms than they were in 2010. For midwives and paramedics this rises to over £6,000.
Working conditions and job losses
But it’s not just about pay. Many of the current strikes happening aren’t just about getting pay rising, but also protecting jobs, fighting against worsening working conditions, and putting an end to insecure contracts and outsourcing.
Fighting for pay itself is often a fight to improve working conditions. Better pay helps with recruitment and retention of staff.
It’s a political choice
The government spent months clapping for key workers, but now refuses to give them a fair pay rise. This is a political choice. The government could avoid, for example, rail workers, nurses, teachers, paramedics striking by getting around the negotiating table and offering a decent, fair pay rise.
Instead, it continues to offer real pay cuts to public sector workers, often hiding behind pay review bodies while it does. And when it comes to rail workers, the government is actively blocking deals being made. This is all part of wider cuts to public services that have left them understaffed and underfunded.
The government doesn’t agree pay deals in the private sector, but it can set a positive example to employers by offering decent pay rises. It also has the power to deliver increases to the minimum wage that get it to £15 an hour.
But instead, the government has repeatedly attacked trade union rights, making it harder to strike and therefore harder to negotiate for better pay.
Workers are winning
There’s another reason behind the rise in the number of people gaining confidence to take action: workers are winning. People are winning better pay deals and working conditions by joining together and standing up for themselves. Striking workers have won themselves double-digit pay rises across a range of different jobs, from bus drivers to BT engineers, as well as better conditions and an end to outsourcing.
If you aren’t in a union yet, there’s never been a better time to join – talk to your mates and talk to a union. And to learn more on how the TUC is supporting union disputes, see our solidarity hub here.
UK Government launches ‘It All Adds Up’ campaign with simple actions to cut bills by bringing down the amount of energy needed to keep homes warm and stay safe
‘It All Adds Up’ energy saving campaign launched today by government with advice that could help UK households cut hundreds of pounds off their bills this winter
Campaign features tips on simple, low or no-cost actions that households can take to immediately cut energy use and save money while ensuring people are able to stay safe and warm this winter
Advice also available on longer-term measures to improve the energy efficiency of homes that can bring down bills not just this winter but in years to come
Simple advice, with no or very low-cost actions that households can take to reduce their energy use and bills this winter, is now available to the public under a new government information campaign being launched today.
The £18 million ‘It All Adds Up’ energy saving campaign will raise public awareness of straightforward actions that people can take to cut their bills by bringing down the amount of energy needed to keep their homes warm and stay safe this winter.
The guidance focuses on simple measures which are not already adopted by the majority of households in the UK. How energy use can be reduced may be different for each individual household, but simple measures in the campaign can offer significant financial savings this winter without reducing comfort or putting people’s health at risk.
The ‘It All Adds Up’ campaign has been launched on a new website and promotes some of the government’s top recommended actions to help households save money on their energy bills at no or little cost, including:
reducing the temperature a boiler heats water to before it is sent to radiators (known as the boiler flow temperature) from 75⁰C to 60⁰C, which will not reduce the temperature of your home but could save around £100 annually
turning appliances off at the plug, which could save approximately £70 per year
reducing heating loss from the property such as putting draught excluders around doors or by adding clear film across windows, which could save around £60 a year
Business and Energy Secretary Grant Shapps said: “No-one is immune to rising energy bills this winter, so it’s in everyone’s interest to use every trick in the book to use less energy while keeping homes warm and staying safe.
“For very little or no cost, you can save pounds. It all adds up, so I urge people to take note of the advice in this new campaign and follow the easy steps to cut your fuel bills.”
Information on the ‘It All Adds Up’ campaign can be found at a new GOV.UK website, which will run alongside the government’s wider ‘Help for Households’ campaign. The new energy saving campaign will feature adverts across TV, radio, digital platforms and on digital billboards, with a television advert rolled out in the coming weeks.
In addition to these simple tips, there is also advice on other actions that households can take to improve the energy efficiency of their homes, as well as further details of government funding schemes to improve the energy efficiency of households across the country.
The ‘It All Adds Up’ campaign highlights longer-term energy efficiency upgrades, including installing loft and wall insulation or fitting double glazing, that people can make to their homes to save their energy use and bring down bills.
Richard Neudegg, director of regulation and policy at Uswitch.com said: “We know many households are actively looking to find safe ways to reduce their energy use to save on bills, and there are straightforward steps to take by making small changes at home. So we welcome renewed efforts to highlight practical tips that can make a real difference.
“Keeping track of energy usage can help people understand what’s most driving their bills and help identify where to make changes. To support households, Uswitch has developed Utrack, a free app which can help people see exactly what they are using and highlight ways to save money.”
Juliette Sanders, Director of Strategic Communications at Energy UK, said: “Energy UK welcomes the Government’s efforts in helping people to improve their energy efficiency.
“Many people are struggling to pay their energy bills and whilst additional support is available from both Government and energy suppliers, taking steps to cut down wasted energy will enable people to lower their bills immediately. We’re also pleased that advice on long-term energy efficiency measures is part of the campaign.
“It’s essential that this goes hand in hand with policies that will enable delivery to as many homes as possible, and with the roll out of smart meters so people can manage their energy use, and use it at times it is cheapest.”
Jonathan Brearley, the CEO of Ofgem, said: “I very much welcome the launch of the ‘It All Adds Up’ campaign. We know from the analysis we’ve seen that even small things, such as turning off radiators in rooms that are not in use and adapting boiler flow, can have a big impact, not only on customer bills, but in boosting our wider security of supply.
“This will complement Ofgem’s Energy Aware campaign, which provides information on ways to reduce energy use, cut costs, and points consumers towards financial schemes and other avenues of support that can help them through this difficult winter.”
Dame Clare Moriarty, Chief Executive of Citizens Advice, said: “This winter, many people will be worried about how much they might have to spend to heat their homes. These tips should help cut down the cost of staying warm.
“However, we know lots of people are living in cold, dark homes because they’re stretched to their limit and simply have nothing left to cut back on. If you’re in this situation, speak to your energy supplier or contact Citizens Advice for support. We’re here to help you find a way forward.”
Making homes and businesses more energy efficient and so bringing down fuel bills is part of the Government’s wider long-term commitment, announced as part of the Autumn Statement, to reduce the UK’s final energy consumption from buildings and industry by 15% by 2030 against 2021 levels.
Improving the energy efficiency of homes is the best long-term method of cutting household energy use and bringing down bills. That is why the government is accelerating the pace of upgrading the energy efficiency of housing with £6 billion of funding committed to 2028 in addition to £6.6 billion in this parliament.
A further £4 billion has been committed through ECO4 scheme, which is delivering home insulation measures to low income and more vulnerable households, and the £1 billion ECO+ scheme, which will install measures in households who have previously not been able to access support through the Energy Company Obligation scheme.
The ‘It All Adds Up’ campaign comes in addition to an unprecedented package of government support that is helping households meet their energy costs this winter, including the Energy Price Guarantee, saving a typical household over £900, the Energy Bills Support Scheme providing a £400 discount to millions and the most vulnerable receiving £1,200 each this year.
To publicise the launch of the new energy saving campaign website further, Business and Energy Minister Lord Callanan held a roundtable meeting on Friday 16 December with energy suppliers and consumer groups.
SNP MSP Gordon Macdonald has welcomed the announcement of a new Winter Heating Payment from the Scottish Government.
Around 27,500 households across the city are set to receive the new payment which replaces the old Cold Weather Payment from the UK government which relied on the temperature dropping to a certain level before payments were triggered.
The Scottish Government’s Winter Heating Payment will pay a flat-rate of £50 in February, no matter the temperature, to people on low-incomes who qualify.
Commenting, Gordon said: “The Winter Heating Payment will be the 13th social security benefit set up by the Scottish Government and demonstrates what we can do with limited powers to build a fairer, more equal Scotland.
“It is a welcome step that the new payment will move away from the UK government’s system of issuing support when the temperature drops to a certain level. This will provide a reliable payment for households every winter.
“The new payment is another social security payment that is unique to Scotland and builds on support already available through game-changing benefits such as the Scottish Child Payment – the only payment of its kind in Britain.
“However, the Scottish Government continues to act with one hand tied behind its back. Only with the full powers of independence can we truly provide a system that works for the people of Scotland, not against them.”
Deputy First Minister John Swinney laid out “a different, more progressive path for Scotland” as he presented the Scottish Budget 2023-24.
He promised to strengthen the social contract with the people of Scotland and pledged to do everything possible to shield families from the welfare cuts and austerity policies of the UK Government
Supporting sustainable public services through the cost of living crisis is a priority – including more than £13.7 billion for NHS boards and £2 billion to establish and improve primary healthcare services in communities, as well as £1.7 billion for social care and integration, paving the way for the National Care Service. This record investment goes well beyond any previous commitment to pass on all consequentials to health and social care, and delivers a £1 billion uplift to the health budget.
Having already increased the unique Scottish Child Payment to £25 per week as part of a drive to eradicate child poverty, the Budget invests £428 million to uprate all other devolved benefits in April 2023 by September’s Consumer Price Index inflation level of 10.1%. It commits £20 million to extend the Fuel Insecurity Fund to provide a lifeline for households, including the most vulnerable, against rising energy prices.
Scotland’s transition to net zero is boosted with increased investment to over £366 million in delivering the Heat in Buildings Strategy in 2023-24. This will help tackle fuel poverty as part of a £1.8 billion commitment over this Parliament to improve energy efficiency and decarbonise more than a million Scottish homes by 2030.
The Budget commits £50 million to the Just Transition Fund for the North East and Moray – more than double the 2022-23 allocation – to diversify the regional economy away from carbon-intensive industries and capitalise on the opportunities presented by new, green industries.
Strengthened by the agreement between the Scottish Government and the Scottish Green Party, the 2023-24 Scottish Budget also includes:
around £1 billion investment in high quality early learning and childcare provision, with a further £22 million invested in holiday food provision and expanding support for school-age childcare
£50 million for the Whole Family Wellbeing programme for preventative co-ordinated family support and a further £30 million to keep The Promise to care experienced children and young people
£80 million capital funding to support the expansion of free school meals
going beyond existing commitments with more than £550 million additional funding to Local Government
£165 million additional funding for frontline justice services and to continue with transformational reforms
a £46 million increase in resource funding to universities and colleges to ensure a highly qualified and highly skilled workforce for Scotland
Mr Swinney said: “The Scottish Government, like governments all over the world, is faced with a difficult set of choices. Through this Budget we are facing up to our responsibilities while being honest with the people of Scotland about the challenges which lie ahead.
“To govern is to choose and the Scottish Government has made its choice.
“Within the powers available to us, we will choose a different path. A path which sees the Scottish Government commit substantial resources to protect the most vulnerable people of Scotland from the impact of decisions and policies made by the UK Government. We choose to stand firmly behind the Scottish people, investing in our public services and doing everything possible to ensure that no one is left behind.
“This Budget strengthens the social contract between the Scottish Government and every citizen of Scotland for the wider benefit of society. This social contract means that people in Scotland continue to enjoy many benefits not available throughout the UK – including free prescriptions, free access to higher education and the Scottish Child Payment.
“Because we know this progressive model works, we choose the path where people are asked to pay their fair share, in the knowledge that in so doing they help to create the fairer society in which we all want to live”.
Responding to the Scottish Government Budget, STUC General Secretary Roz Foyer said: “It’s clear that Scotland’s trade union movement has made progress in winning demands from the Scottish Government.
####2Raising taxes on those most able to pay, including second homeowners, are key demands in our ‘Fairer Taxes’ report. We hope reform of the Small Business Bonus Scheme will leave it fairer and less of a drain on public resources and the piloting of scrapping peak rail fares is also a step in the right direction.
“However, we needed strides, not steps. We cannot pretend this is the radical, redistributive budget working people in Scotland needed – it isn’t. We can – and will – demand the government to go much further and deliver the substantial reforms needed to our economy including introducing wealth and further property taxes called for in our report.
“The Finance Secretary has more to do and we welcome his constructive engagement with our movement. This budget leaves the door open for public sector workers to negotiate the inflation level pay rises they so desperately need. We intend to use it.”
Responding to the Scottish Budget delivered by the Deputy First Minister, Dr Liz Cameron CBE, Chief Executive, Scottish Chambers of Commerce, said:“Whilst the backdrop for today’s statement was already set by the Chancellor Jeremy Hunt in the Autumn Statement, today’s Scottish Budget will not bring much Christmas cheer.
“Businesses and households are navigating an extremely challenging period of high energy costs, rising inflation and higher borrowing costs. The specific decision by the Scottish Government to widen the divergence on income tax rates between Scotland and the rest of the UK is exceptionally concerning.
“Many will be left pondering today as to who in the Scottish and UK Governments is standing up for the economy to help businesses survive this crisis and keep people in jobs.”
On taxation:
“The Scottish Government’s move to increase the top and higher rates of income tax will hit taxpayers in Scotland more than other parts of the UK.
“This is a clear disadvantage for Scotland’s businesses and workers and could position Scotland as a less attractive place to live and work. With over 350,000 people alone in the higher rate bracket, questions remain on the impact this will have on talent attraction, retention, consumer confidence and indeed departure of workers to other parts of the UK.
“We urge the Scottish Government to publish its economic modelling of this policy decision, specifically on the proposed impact this could have on future investment decisions by companies.”
On Business Rates:
“As a priority ask from the business community, we welcome the Scottish Government’s decision to freeze the poundage rate and align with the rest of the UK. This will provide relief to ratepayers by reducing the upfront cost burden of non-domestic rates. This was the right decision as is the incentive for businesses to invest in greener plant and machinery which supports net-zero and decarbonisation.
“Looking ahead, businesses need to see widespread reform to the business rates system ensuring it is fit for purpose and aligns with the economic reality that businesses operate in.”
On regulatory legislation:
“The scale of new and incoming regulations are piling additional cost burdens onto firms when they need them least.
“The recent move to delay the short-term lets licensing scheme was welcome and we had hoped for additional signalling from the Deputy First Minister today to delay other burdensome legislation such as the Deposit Return Scheme. This will continue to cause a great deal of frustration for affected sectors and we will therefore continue to represent sector concerns to Scottish Government through the Joint Regulatory Taskforce.”
On Net Zero:
“We welcome the Scottish Government’s intention to accelerate the move to a Net Zero economy. Businesses continue to support this agenda and a clear long-term plan for decarbonisation will support future investment and a just transition.”
Jonathan Carr-West (Chief Executive, Local Government Information Unit Scotland (LGIU) said: “Today’s budget saw Deputy First Minister John Swinney attempting to reach out to local government by promising additional funding and acceding to COSLA’s request to allow councils more freedom over council tax rates.
“Scottish councils will now be poring over the detail to see how much real additional money sits behind the headline of £550 million.
“Moreover, local government in Scotland will still be left wondering how, indeed if, it fits into the Government’s overall vision.
“While Mr Swinney was keen to position his budget in counterpoint to the UK Government, he risks repeating Westminster’s error in protecting the NHS at the expense of local government when we know that the preconditions for good health rely on effective leadership of place and an integration of services that only local democratic institutions can provide.”
The Poverty Alliance says the Scottish Government could do even more to invest in a just and compassionate Scotland:
Tax
Reacting to today’s Scottish Budget announcement, Poverty Alliance Policy and Campaigns Manager Ruth Boyle said: “We welcome the decision to use our tax powers in a progressive way to get more investment for the compassionate Scotland that people want. We hope that this will be the beginning of the Scottish Government’s efforts to use the full range of tax powers at their disposal. In the longer-term, the Scottish Government must reform the basis of our tax system, including implementing the long-awaited reform of council tax, to ensure that our tax system has justice and compassion at its heart.”
Services
“Increased support for the NHS and social care is very much welcomed. However, all of our vital public services are calling out for more investment. This budget raises a number of concerns for the future, and we fear that there will be more cuts to other public services coming down the line. We all rely on these public services, but they are a vital lifeline for people on the lowest incomes.”
Social security
“We are pleased that the Scottish Government have done the right thing and uprated benefits in line with inflation. However, we could go much further. The Finance Secretary stated that a key priority for this budget was tackling child poverty and it is therefore disappointing that the budget failed to uprate the Scottish Child Payment in line with other Scottish benefits. This will mean a real term cut in the value of the payment at a time when families on low incomes need more support to stay afloat. This decision raises particular concern for the poverty of single parents, over 90% of whom are women.”
Transport
“The decision to trial the scrapping of peak rail fares will help people to make ends meet as costs continue to rise. However, evidence shows that people on the lowest incomes are more reliant on buses. There is a need to improve access to affordable transport by extending free bus travel to people on low-income benefits and to those aged under 25.”
