COSLA is clear that the proposed funding from Scottish Government won’t cover additional Employers National Insurance costs, and councils still face an extremely challenging financial position as they set their budgets.
COSLA Resources Spokesperson, Councillor Katie Hagmann, commented: “We note that the Scottish Government has announced it will fund £144m of the additional direct staffing costs that will result from the UK Government’s policy decision rise to Employers National Insurance. However, this leaves a gap of £96 million Councils will still need to fill within their budgets.
“While we acknowledge that the UK government is still to announce additional resources, it is important to note that there has been no additional funding for commissioned services, the biggest of these being adult social care, which are also vital services and will see significant impacts.
“Given the mounting challenges for local government, this additional funding will not solve the crises councils and communities are facing, which are exacerbated by the Employers National Insurance increase.
“Difficult decisions will still need to be made as councils look to protect essential frontline services.”
Councillor Mandy Watt, Finance and Resources Convener, looks ahead to Council Budget day on Thursday 20 February:
Very soon, councillors will be making tough financial decisions to balance the council’s budget and set the rate at which Council Tax will be charged.
Given the increasing need for investment in infrastructure and services, we’ll have to raise Council Tax, parking charges and other fees to fund the delivery of services we all rely on. We are considering a recommended 8% rise in Council tax.
An 8% increase adds £9.65 per month to a band D property and would provide a total of £26 million across all bands for investment and service priorities.
A huge amount of work has already been done to consider options, with detailed proposals considered yesterday at a Special meeting of the Finance and Resources Committee. This has been informed by a huge consultation exercise with residents, and I want to thank all 3,260 people who took part.
We know from the consultation responses that people are aware of the financial challenges we face following years of underfunding, and many are open to a fair rise to Council Tax after last year’s freeze.Other councils are proposing increases of 10% and above, but we’re trying to keep Edinburgh’s increase lower because that’s what the majority of residents would prefer.
Residents also told us they’d like to see Councillors focus on several key priorities when setting this year’s budget. These include spending on education, investing in local facilities and upgrading our roads and pavements. We’ll use the money from an increase in Council Tax to protect and improve these services.
Investment proposals include continuing the extra £12.5 million for roads and pavements that was added last year, with a further £5 million for road safety, especially around schools. There will be five new schools and five extensions of existing schools and £26 million for special needs infrastructure. Fox Covert Joint Campus will be replaced and there’s £15 million for permanently replacing Blackhall Library.
The decision to recommend an 8% Council Tax increase was not taken lightly. Over the last decade cuts in core grant funding of over £400 million have been mitigated by council staff continually delivering more with less resources.
This year’s financial challenges are the UK Government’s increase in national insurance, costing the council £9 million and the Scottish Government changing the stability funding floor, taking away £6.3 million. Fortunately, the UK Government passed on £18million of pEPR (‘producer pays’) funding, which filled those gaps.
While we can expect a slightly better government grant this year following yesterday’s Scottish Parliament budget, the consequences of last year’s cuts to affordable housing remain clear to see.
Huge pressures on health and social care remain unaddressed by national governments. Yet again, Edinburgh is expected to be the lowest funded local authority in Scotland per head of population and we’ll still need to find best value efficiency savings to deal with service pressures of £40million and keep the books balanced this year.
Finance Secretary calls for clarity as local authorities set their budgets
The employer National Insurance increase must be fully funded to ensure local authorities have the resources they need to serve their communities, Finance Secretary Shona Robison has said.
Ahead of an appearance before the local government committee next week, Ms Robison again called on the UK Government to provide urgent clarity over the funding to help the Scottish Government and local authorities finalise their budgets.
The Finance Secretary said: “Scotland’s public services face a bill of more than £700 million as a result of the UK Government’s increase in employer National Insurance Contributions.
“There have been indications of likely funding reported in the media, but these fail to take account of the fact that we have a larger public sector per person than other parts of the UK, leaving us some £300 million short.
“It feels like Scotland is now being punished for having decided to employ more people in the public sector and to invest in key public services.
“We know local authorities are already under significant financial pressure. This will only continue to build unless the UK Government reimburses us in full for their tax increase. Councils are in the process of setting their Budgets now, so the sooner we have clarity over this issue the better – this is needed urgently.
“The Scottish Government will continue to work closely with COSLA to press the UK Government to provide the funding needed to support public services in Scotland.”
The First Minister and President of COSLA wrote to the Chancellor on 3 January, supported by 48 public and voluntary sector organisations to raise concerns at the impact of the increase to employer National Insurance contributions and to seek clarity on funding.
Preliminary Notice of Anti Cuts Conference – Saturday 18th January 2025
Augustine United Church – George IV Bridge Edinburgh
9.30 am – Doors Open – Tea/Coffee and Biscuits
10.00am – 1pm Conference
The Conference is being convened by Edinburgh Trade Union Council and the Scottish Trades Union Congress (STUC).
The purpose of the Conference is to consider how best to fight the social care and health service cuts that are being planned by the Edinburgh Integration Joint Board (EIJB).
Crucial budget decisions are going to be made by the Scottish Government and the City Council over the next two or three months which will determine the level of cuts.
The conference will discuss how best to lobby to obtain the resources needed to meet service demands. This will include the services provided by the 64 third sector organisations Edinburgh that are threatened with cuts and redundancies.
The conference is open to the public. The agenda will be an introductory session, workshops and a final plenary session. The conference will have input from speakers from the STUC. We will invite a speaker from amongst the Councillors on the EIJB and a speaker representative of Edinburgh community health organisations.
We hope the conference will be able to draw up a City wide plan for lobbying and campaigning.
More details of the conference will be circulated on Monday 6th January 2025. Any comments or queries in the meantime will be responded to on 23/12/24 and 27/12/24.
The financial situation of the Edinburgh Integration Joint Board (EIJB) is very challenging. In 2025/26, the IJB seek to realise around £51m of savings. Future years will see further savings required, currently estimated to be £76m in 2026/27 and £105m in 2027/28.
These savings will be difficult and their impact will be substantial. So, managing change, and ensuring key services are delivered to communities will require collaboration by the IJB and city partners, including the Third Sector.
Reference Group
On November 1 2024, Third Sector representatives presented deputations to the EIJB challenging proposals around the Third Sector Grants Programme and an in-year cut (2024/2025). The IJB did not approve the proposal for the in-year cut with an alternative proposal being approved.
Following that meeting, the IJB invited Third Sector representatives to talk through concerns and identify areas to work together. To inform those meetings, EVOC and their TSI partners collaborated with the Edinburgh Community Health Forum and representatives of other Third Sector interests across the city to create a Reference Group.
The purpose of the Reference Group is to:
inform governance and city partnerships
assert the value of the Sector
shape investment
support change
distil the voices of the Third Sector to effectively represent the sector on the IJB
EIJB Engagement and Proposals
The Reference Group has rapidly considered the short-term issues around funding, and the longer-term issues of future partnership models, sharing a briefing note with the IJB on issues and options in early December. The engagement with EIJB has been positive given the difficult circumstances, and this positive engagement has resulted in an EIJB paper to the December Board which recommends:
That the Health Inequalities grants programme, due to end on 31 March 2025 should be extended for three months into 2025/26 which will help provide time for the organisations affected to adapt.
The Board support work currently underway to undertake a series of collaborative workshops which will inform some of the savings proposals and invest-to-save opportunities that will be submitted for consideration by the EIJB in March 2025.
In the current landscape this is a positive outcome for the Third Sector, informed directly by the voice, needs and priorities of the Sector.
City of Edinburgh Council Engagement and Proposals
Given the challenges to funding for the Third Sector and the impact cuts will have to the viability of Third Sector Organisations, the Reference Group have also argued the need for a cross city partnership approach to investment.
Following the November 1 EIJB meeting, the TSI wrote to the Chair of the EIJB, the Chief Executive of City of Edinburgh Council and NHS Lothian asserting the need to [a] reset investment [b] reform ways of working [c] repair relationships. In the immediate term, a key priority is to secure a commitment from City of Edinburgh to invest to mitigate the risks to critical and anchor organisations.
On December 10 the Council Policy and Sustainability Committee considered and approved a proposal that recognised that the Council may need to provide core or foundational funding to stabilise vital third sector organisations. The TSI with ECHF collaborated to present a joint deputation, welcoming the Council proposal, and offering support.
Council officers were instructed to:
Work on a briefing paper for the Council’s political groups on what the Third sector needs now, specifically transitional funding, medium term, ahead of the Council setting its budget in February;
Undertake a review of all grant funding, exploring the provision of longer term, sustainable funding;
Work with the Edinburgh Partnership and Third Sector to co-design solutions, and agree terms of reference for a short life group and report back to Policy and Sustainability Committee in March.
Priorities: December EIJB meeting and Future Planning
The Reference Group will continue to meet and shape the next steps. An immediate priority is to agree on Terms of Reference and confirm representatives in the Group. We will be sharing a set of proposals before Christmas for your consideration.
A strong voice is essential to shape the long-term relationship with the EIJB and in particular the workshop series in spring 2025.
The Edinburgh TSI with EVOC and others from the Reference Group will support the paper to the EIJB on December 17 on progress on the Third Sector Grants Programme and the next steps in working collaboratively with the Sector, and also with the City of Edinburgh Council.
If you need any further information in advance of the IJB meeting tomorrow (Tuesday 17 December), please get in touch with us or reach out to any member of the Reference Group.
We will also provide regular briefings on progress, through the fortnightly EVOC E-news and targeted updates on key information as necessary.
NHS Lothian has taken the difficult decision to withdraw joint funding from a service that provides support to veterans in Lothian, following a stark financial review.
The health board has told Veterans First Point Lothian staff and patients that it can no longer provide its share – £214,778 – of the total budget required, to maintain the service amid the significant financial challenge facing health boards.
Veterans First Point Lothian was jointly funded by Scottish Government and NHS Lothian as a “one-stop shop” offering support, advice and mental health care for veterans. It is a multi-award-winning service that has provided support to over 2500 different veterans throughout the last 15 years.
By April 2025, the service will cease to exist in its current form and a significant redesign and move of premises is planned by March 2025.
It comes as NHS Lothian is forced to review all services and departments in a bid to make efficiency savings of seven per cent following the budget allocation made earlier this year.
Further reductions in part of the mental health budget of 4.6 per cent means that the health board can no longer continue to find its share of this service.
Tracey McKigen, Director of Royal Edinburgh Hospital and Associated Services, NHS Lothian, said: “This has been a really difficult decision and we apologise to all of our patients and staff who are affected. We would like to thank the team for their dedication and commitment to supporting our veterans over the years.
“This is no reflection on the quality of the Veterans First Point Lothian service, but it does serve as a stark reminder of the extremely difficult choices that we are facing every day as we balance the need to provide safe and effective healthcare while meeting the severe financial challenges facing health board and other public sector organisations.”
Scottish Government will allocate its 40 per cent share of the funding and NHS Lothian is currently reviewing the future service provision possible within the remaining budget.
However it does mean that Veterans First Point Lothian will no longer be able to accept new referrals or commence any new episodes of treatment. Veterans, who are impacted by the change, are urged to contact the team to discuss alternative support.
If veterans feel they need help or support and are not already part of Veterans First Point Lothian, they should contact their GP during the day, and at evenings and weekends they should contact NHS 24 on 111.
£500 million in savings to ease ‘enormous’ pressure on public finances
Holyrood’s Finance Secretary Shona Robison has outlined the urgent action being taken to balance the 2024-25 Scottish Budget in the face of “enormous and growing pressure on the public finances”.
Highlighting the continuing effects of Brexit, the COVID-19 pandemic, the war in Ukraine and the cost of living crisis, alongside UK Government spending decisions, Ms Robison said difficult decisions were required.
The total savings, worth up to £500 million, include:
Implementing emergency spending controls across the public sector, particularly targeting recruitment, overtime, travel and marketing
Ending the ScotRail Peak Fares pilot
Mirroring the UK Government’s policy to means test Winter Fuel Payment
Making additional savings across portfolios, including in sustainable and active travel and in health and social care
The Finance Secretary said she was also currently planning to use up to £460 million of additional ScotWind revenue to address in-year pressures in 2024-25.
Ms Robison said: “This Government has consistently warned of the significance of the financial challenge ahead.
Prolonged Westminster austerity, the economic damage of Brexit, a global pandemic, the war in Ukraine, and the cost of living crisis have all placed enormous and growing pressure on the public finances.
“In the last three years alone cumulative CPI inflation has seen prices increase by 18.9%, diminishing how far money will go for households and governments alike.
“In the face of these challenges, the Scottish Government has stepped in to support people and services where it has been needed most: on social security, health and public services. But we have done so without equivalent action from the UK Government, which has repeatedly failed to properly review the adequacy of funding settlements.
“We cannot ignore the severe financial pressures we face. We will continue to be a fiscally responsible government and balance the budget each year, as we have done every year for 17 years and as we will do again this year. But this will mean we must unfortunately take difficult decisions along the way.”
Responding to today’s statement by Scottish Government Finance Secretary Shona Robison, Poverty Alliance chief executive Peter Kelly said: “People in Scotland believe in justice and compassion. They know that we need a strong social foundation so we can look out for each other and help people build a life beyond the injustice of poverty.
“But we’re now being left with holes in the fabric of Scottish society that will likely make life even harder for people on low incomes who are already being pushed towards debt, hunger, homelessness, and destitution. That is completely unjust, irresponsible and unnecessary.
“We are a rich country, and our collective wealth has grown massively over the decades. Past generations used that wealth to plan and budget for the public good, and MSPs and Ministers must now urgently use their powers over tax and investment to build a better, fairer future for all of us – and especially those in poverty. Economic growth will not fix the holes in society, unless it comes along with increased social investment.
“We are very concerned about the effect of cuts to mental health support and adult social care. We know that people in poverty are more likely to need that support, and data shows a growing risk of poverty for disabled people.
“We are deeply disappointed that plans to expand concessionary bus travel to people in the asylum system have been scrapped, along with a return to peak fares on ScotRail. We all need the freedom to travel, but too many of us simply can’t afford the fares.
“Organisations like the STUC and IPPR Scotland have published concrete plans that show how the Scottish Government can use powers over tax to invest billions of pounds every year in our shared society.
“We can build better budgets that give people the means to build a better future, to create a true wellbeing economy that supports fair work, and a just transition to the net zero future that we urgently need.”
Reacting to the Scottish Government’s Pre-Budget Fiscal Statement, STUC General Secretary Roz Foyer:“With every cut announced by the Scottish Government today, workers and communities across Scotland will be scarred for generations to come.
“For over two years now, we’ve told the Scottish Government they had almost £3.7 billion worth of untapped revenue at their fingertips through increasing tax on the rich. They could have acted. They chose not to. We are in no doubt that brutal Tory austerity has had an undeniable impact on Scotland’s finances. But the Scottish Government must take responsibility for their own cuts. They cannot be allowed to escape scrutiny.
“Public sector workers have faced more than a decade of falling real wages, lagging far behind those in the private sector. Those workers not only have the right to demand above inflation pay rises, but, if our public services are to improve, improvements in pay are non-negotiable.
“All eyes now turn to the Chancellor but it’s a shambles that we’re awaiting some form of salvation, if any is forthcoming, from the UK Government when our government in Holyrood could have done so much more.
“The people of Scotland do not want a Scottish Government that administers cuts while annunciating the droopy mantra of ‘it wizny me’. They want politicians that choose to govern – and that means taxing the rich to invest in the services that we all rely on.”
Ms Robison also proposed that the next Scottish Budget takes place on the 4th December, subject to the agreement of FPAC and the Scottish Fiscal Commission.
Tomorrow’s Programme for Government from the Scottish Government must include urgent action to deliver multi-year funding and progress Fair Funding to support voluntary organisations, their staff and their volunteers, and the people and communities our sector works with, says SCVO.
SCVO and colleagues across the voluntary sector welcomed the Scottish Government’s commitment to deliver Fairer Funding for the sector by 2026, including exploring options to implement multi-year funding deals.
Despite this renewed focus, 18 months on from the policy prospectus, there has been little progress.
In the Programme for Government (PfG) action is urgently needed to deliver multi-year funding and progress Fair Funding to support of voluntary organisations, their staff and their volunteers, and the people and communities our sector works with.
Background
For over a decade, the Scottish Government has recognised the need for multi-year funding, committing to longer-term funding for the voluntary sector across multiple government strategies, including within several Scottish Budgets and Programmes for Government, and the Economic Strategy.
In April 2023, the Scottish Government’s policy prospectus, New leadership – A fresh start, renewed these ambitions, committing to delivering Fairer Funding for the sector by 2026, including exploring options to implement multi-year funding deals. This was followed in May 2023 by a commitment in the Medium-Term Financial Strategy to adopt multi-year spending plans.
Despite this renewed focus, 18 months on from the policy prospectus, there has been little progress. The most recent Scottish Budget made no further commitments, deferring action on any multi-year funding to the upcoming Medium-Term Financial Strategy, and making no reference to voluntary sector funding.
The problem
It is widely understood that our sector is facing unprecedented challenges. Years of underfunding and poor funding practices, and crises such as the pandemic, and the cost-of-living crisis have put the sector under increasing pressure, exacerbating financial and operational challenges.
The running costs and cost-of-living crises continue to put pressure on voluntary organisations – with demand for services increasing, costs rising, and financial uncertainty ongoing.
From August 2021 to April 2024, the proportion of voluntary sector organisations reporting financial challenges has increased from 47% to 77%.
Over a third (36%) of organisations have reported having made use of their financial reserves in the 3 months leading into April 2024, a 4% increase compared to the same period in 2023. Depleting reserves for recurring costs is not sustainable, with 60% of the organisations sharing that continuing to use reserves was unsustainable for their organisation.
As costs have risen for voluntary organisations over the past three years, so have demands on the services that they provide for the most vulnerable people in society. In August 2021, 56% of organisations reported an increased demand for core services and activities, rising to 63% by April 2023.
The most recent Third Sector Tracker results were published earlier this month and cover the three months to April 2024.
By April 2024, the Third Sector Tracker found:
62% of organisations believed that rising costs had affected the ability to deliver core services or activities since December 2023.
47% of organisations reported cost increases in their top three challenges.
33% of respondents had not been able to deliver all their planned services in the preceding 3 months.
Only one third (32%) of respondents have been able to meet all of the increased demand for their services in the preceding 3 months. For the organisations who had been unable to meet increased demand, the main difficulties included: staff capacity (54%); raising funds to meet the demand (50%); and volunteer capacity (41%.).
As local councils fund far more voluntary organisations than Scottish government, the fallout from the local government settlement will also have a significant impact on voluntary organisations, further exacerbating these pressures. Similarly, any reduction in local services will result in further increased demand for some voluntary organisations.
The Emergency Budget Response has also left organisations awaiting confirmation of Scottish Government funding vulnerable.
The solution
SCVO and colleagues across the sector welcomed the Scottish Government’s commitment to delivering Fairer Funding for the sector by 2026, including exploring options to implement multi-year funding deals. Without action in the Programme for Government (PfG), achieving this target becomes increasingly unlikely.
A longer-term funding model for the voluntary sector across all Scottish Government departments.
Define multi-year funding for voluntary organisations as a three-year minimum commitment.
Record progress by collecting and publishing what proportion of grants and contracts are delivered on a multi-year basis and accommodate other essential Fair Funding elements.
To be meaningful and support a sustainable sector, multi-year funding must also recognise and incorporate other essential Fair Funding elements including:
Flexible, unrestricted core funding
Inflation-based uplifts
Accommodate at least the Real Living Wage and uplifts on par with those offered to public sector staff.
Full costs recovery, which includes core operating costs.
Long term funding should also be provided to local authorities, to allow them to enter into multi-year agreements with voluntary organisations. Between one quarter and one third of voluntary organisations receive funding from local authorities.
Without these commitments, achieving “Fairer Funding” by 2026 becomes increasingly unlikely.
To make and monitor progress, it is also essential that the PfG takes action on transparent funding, including developing timelines, goals, and actions to both monitor progress, and ensure progress can be scrutinised by the voluntary sector and Parliament.
Testimonials
“Like all voluntary organisations, we have very short-term funding, so while our contracts are on paper secure, everyone knows their job is only as secure as the current piece of short-term funding” – Registered charity
“Everything we do is dependent on funding, and amounts are often not confirmed until very late in the financial year” – Registered charity
“Due to annual funding from Scottish Government, which doesn’t cover our core costs, recruitment is often on short-term contracts or is subject to ongoing funding, of which there is no guarantee” – Voluntary sector intermediary
Conclusion
Scotland’s voluntary sector is an employer, a partner, and a vital social and economic actor central to delivering on the Scottish Government’s three missions of equality, opportunity, and community.
The Programme for Government is an opportunity for the First Minister and the cabinet team to recognise and support the many contributions of voluntary organisations, their staff and their volunteers across Scotland by making progress towards the Fair Funding our sector desperately needs.
To achieve this the Scottish Government must commit to progressing multi-year funding, develop timelines and goals, and make plans to monitor progress. To support a sustainable sector, multi-year funding must also recognise and incorporate essential Fair Funding elements.
Additional information
SCVO’s full proposals for the 2024/2025 Programme for Government cover two areas and can be found here:
Prime Minister Keir Starmer delivered a speech in the Downing Street garden today on fixing the foundations of our country
When I stood on the steps of Downing Street – just over there – two months ago. I promised this government would serve people like you.
Apprentices. Teachers. Nurses. Small business owners. Firefighters. Those serving our community and our country every day.
I promised that we would get a grip on the problems we face. And that we would be judged by our actions, not by our words.
I said before the election – and I say it again really clearly today: Growth.
And, frankly, by that I do mean wealth creation…
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is the number one priority of this government.
That’s why, in our first few weeks, we set up the National Wealth Fund –
because we want every person and every community to benefit.
It’s why we’ve unlocked planning decisions –
Because we are going to build 1.5 million new homes.
It’s why we’ve set up Great British Energy –
To create good jobs and cut people’s bills.
And it’s why we ended the national strikes that have crippled our country for years.
Because I defy anyone to tell me that you can grow the economy…
when people can’t get to work – because the transport system is broken.
Or can’t return to work – because they’re stuck on an NHS waiting list.
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And these are just the first steps towards the change that people voted for.
The change I’m determined to deliver.
But before the election I also gave a warning.
I said change would not happen overnight.
When there is deep rot in the heart of a structure, you can’t just cover it up.
You can’t tinker with it or rely on quick fixes.
You have to overhaul the entire thing.
Tackle it at root.
Even if it’s harder work and takes more time.
Because otherwise what happens?
The rot returns.
In all the same places.
And it spreads.
Worse than before.
You know that – I know that.
That’s why this project has always been about fixing the foundations of this country.
But I have to be honest with you. Things are worse than we ever imagined.
In the first few weeks, we discovered a £22 billion black hole in the public finances.
And before anyone says ‘oh this is just performative’.
Or ‘playing politics’.
Let’s remember.
The OBR did not know about this.
They didn’t know.
They wrote a letter saying they didn’t know.
[Please note political content redacted here.]
Even just last Wednesday, we found out that
[Please note political content redacted here.]
We borrowed almost £5 billion more than the OBR expected in the last three months alone.
That’s not performative – that’s fact.
But as well as the things we’ve discovered, we’ve also seen shocking scenes across the nation.
A mindless minority of thugs – who thought they could get away with causing chaos.
Smashing up communities and terrifying minorities.
Vandalising and destroying people’s property.
Even trying to set fire to a building – with human beings inside it.
And as if that wasn’t despicable enough.
People displaying swastika tattoos.
Shouting racist slurs on our streets.
Nazi salutes at the cenotaph –
The cenotaph – the very place we honour those who gave their lives for this country.
Desecrating their memory….
Under the pretence – and it is a pretence – of ‘legitimate protest’.
Now they’re learning that crime has consequences.
That I won’t tolerate a break down in law and order under any circumstances.
And I will not listen to those who exploit grieving families, and disrespect local communities.
But these riots didn’t happen in a vacuum. They exposed the state of our country. Revealed a deeply unhealthy society. The cracks in our foundation laid bare –
Weakened by a decade of division and decline.
Infected by a spiral of populism…
Which fed off cycles of failures
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Stuck in the rut of the politics of performance.
And I saw the beginning of that downward spiral firsthand.
Back in 2011.
When riots ripped through London and across the country.
I was then Director of Public Prosecutions.
And when I think back to that time.
I see just how far we have fallen.
Because responding to those riots was hard – of course it was.
But dealing with the riots this summer was much harder.
In 2011, I didn’t doubt the courts could do what they needed to do.
This time – to be honest with you – I genuinely didn’t know.
Let me tell you this. Every day of that disorder – literally every day – we had to check the precise number of prison places we had and where those places were.
To make sure we could arrest, charge and prosecute people quickly.
Not having enough prison places is about as fundamental a failure as you can get.
And those people throwing rocks, torching cars, making threats.
They didn’t just know the system was broken.
They were betting on it.
Gaming it.
They thought – ‘ah, they’ll never arrest me.
And if they do, I won’t be prosecuted.
And if I am, I won’t get much of a sentence.’
They saw the cracks in our society after 14 years of populism and failure – and they exploited them.
That’s what we have inherited.
Not just an economic black hole.
A societal black hole.
And that’s we have to take action and do things differently.
And part of that is being honest with people – about the choices we face. And How tough this will be. And frankly – things will get worse before they get better.
I didn’t want to release prisoners early.
I was Chief Prosecutor for five years.
It goes against the grain of everything I’ve ever done.
But to be blunt – if we hadn’t taken that difficult decision immediately.
We wouldn’t have been able to respond to the riots as we did.
And if we don’t take tough action across the board. We won’t be able to fix the foundations of the country as we need.
I didn’t want to means test the Winter Fuel Payment. But it was a choice we had to make.
A choice to protect the most vulnerable pensioners. while doing what is necessary to repair the public finances.
Because pensioners also rely on a functioning NHS.
Good public transport.
Strong national infrastructure.
They want their children to be able to buy homes.
They want their grandchildren to get a good education.
So we have made that difficult decision –
To mend the public finances.
So everyone benefits in the long term –
Including pensioners.
Now that is a difficult trade off.
And there will be more to come.
I won’t shy away from making unpopular decisions now…
If it’s the right thing for the country in the long term.
That’s what a government of service means.
This shouldn’t be a country where people fear walking down their street.
Their TVs showing cars and buildings being set on fire.
This shouldn’t be a country where the Prime Minister can’t guarantee prison places.
This shouldn’t be a country where people are paying thousands more on their mortgage.
Or waiting months for hospital appointments they desperately need.
Where our waters are filled with sewage.
Where parents worry that their kids won’t get the opportunities they did.
Where nothing seems to work anymore.
So, when I talk about the inheritance the last government left us…
The £22 billion black hole in our finances…
This isn’t about a line on a graph.
That’s about people’s lives.
Your lives.
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This government won’t always be perfect, but I promise you this:
You will be at the heart of it…
In the forefront of our minds…
At the centre of everything we do.
That’s why I wanted to invite you here today.
To show that decent, hard-working people who make up the backbone of this country belong here.
This government is for you.
A garden and a building that were once used for lockdown parties…
Remember the pictures just over there? With the wine and the food.
Well this garden…
And this building…
are now back in your service.
[Please note political content redacted here.]
Those things happened precisely because the government itself lost its focus.
on the hopes and ambitions of working people.
During those recent riots, I made huge asks…
of the police and of the criminal justice system –
People already stretched to the limit.
They knew I was making big asks of them.
And I’m not going to apologise for it.
But let me tell you this – they delivered.
They deserve our gratitude.
And that’s why I went to Southport…
To Lambeth…
To Belfast…
To thank them personally. To shake the hands of the first responders who rose up to the ask I made of them.
They deserve a government that trusts them.
Supports them.
And works with them.
That is the sort of government we will be.
One that works with people, not does things to them.
One that believes in hard graft, not gimmicks.
Honest about the challenges we face…
And working tirelessly to fix them.
That is how we will always work.
Now, next week, parliament returns. The business of politics will resume. But it won’t be business as usual.
Because we can’t go on like this anymore. Things will have to be done differently.
We will do the hard work to root out 14 years of rot. Reverse a decade of decline. And fix the foundations.
Between now and Christmas, we will carry on as we have started. Action not words.
We will introduce legislation and take decisions to protect taxpayers’ money.
To take on the blockers by accelerating planning. to build homes and boost growth.
We’ll move forward this autumn with harnessing the full potential of AI for growth and the public good.
We’ll bring rail service into public ownership, putting passengers first.
The biggest levelling up of workers’ rights in a generation to give people security, dignity and respect at work.
And Great British Energy will be owned by the taxpayer, making money for the taxpayer. Producing clean energy and creating good jobs.
That is our focus for the rest of the year.
But I will be honest with you. There’s a budget coming in October. and it’s going to be painful.
We have no other choice given the situation that we’re in. So those with the broadest shoulders should bear the heavier burden. And that’s why we’re cracking down on non-doms.
Those who made the mess should have to do their bit to clean it up. That’s why we’re strengthening the powers of the water regulator and backing tough fines on water companies that have let sewage flood our rivers, lakes and seas.
But just as when I responded to the riots – I’ll have to turn to the country and make big asks of you as well.
To accept short term pain for long term good.
The difficult trade-off for the genuine solution.
And I know that after all that you’ve been through – that is a really big ask and really difficult to hear.
That is not the position we should be in. It’s not the position I want to be in. But we have to end the politics of the easy answer that solves nothing.
But I also know that we can get through this together.
Because the riots didn’t just betray the sickness. They also revealed the cure.
Found not in the cynical conflict of populism. But in the coming together of a country.
The people who got together the morning after. All around the country. With their brooms, their shovels, their trowels. And cleared up their community.
They reminded us who we really are.
I felt real pride in those people who cleaned up the streets.
Rebuilt the walls. Repaired the damage.
And I couldn’t help thinking about the obvious parallels.
Because imagine the pride we will feel as a nation.
When, after the hard work of clearing up the mess is done.
We have a country that we have built together.
Built to last.
That belongs to every single one of us.
And all of us have a stake in it.
Our hard work rewarded – a dozen times over.
Because we’ll have an economy that works for everyone.
An NHS not just back on its feet, but fit for the future.
Streets that everyone feels safe in.
No longer dependent on foreign dictators…because we’re producing our own clean energy right here.
And giving every child – wherever they come from. Whatever their background.The chance – to go as far as their talent will take them.
I won’t lose sight of that prize. I won’t lose sight of what we were elected to do.
And most importantly – I won’t lose sight of the people that we were elected to do it for.
