Funding for Scotland falls behind UK Government departments
The UK Spending Review fails to deliver for Scotland, Finance Secretary Shona Robison has said.
Spending levels for public services will fail to offset the impact of proposed cuts to welfare support and the rise in National Insurance contributions, the Finance Secretary warned in response to the Chancellor’s statement.
Shona Robison said: “This Spending Review is business as usual from the UK Government, which is yet again treating Scotland as an afterthought and failing to provide us with the funding we need.
“Today’s settlement for Scotland is particularly disappointing, with real terms growth of 0.8% a year for our overall Block Grant, which is lower than the average for UK Departments. Had our resource funding for day-to-day priorities grown in line with the UK Government’s overall spending, we would have £1.1 billion more to spend on our priorities over the next three years. In effect, Scotland has been short-changed by more than a billion pounds.
“This all comes on top of the UK Government’s failure to fully fund their employer National Insurance increase, depriving us of hundreds of millions of pounds in funding, and their proposed cuts in support for disabled people that will push 250,000 people into poverty, including 50,000 children.
“It is also disappointing that despite apparent briefing to media in advance, we are still awaiting clarity on funding for the vital Acorn project in the North East of Scotland.
“We made extensive representations to the UK Government on our priorities for the Spending Review, including calls for an end to spending that bypasses devolution, but there has been limited opportunity to engage with them.
“It appears that the continuation of local growth funding – which fails to match the European Structural Funds it was supposed to replace – will come directly from Whitehall, yet again bypassing devolved governments.
“We will now take the time to digest the detail of this statement and will set out our formal response on 25 June as part of the Medium Term Financial Strategy.”
UK Government’s Plan for Change delivers record settlement for Scottish Government with an extra £9.1 billion over the SR period to deliver public services
Working people across Scotland will benefit from significant investment in clean energy and innovation, creating thousands of high-skilled jobs and strengthening Scotland’s position as the home of the United Kingdom’s clean energy revolution.
The UK Government has confirmed £8.3 billion in funding for GB Energy-Nuclear and GB Energy in Aberdeen. This is alongside an increased commitment to the Acorn Carbon Capture, Usage and Storage project, which will receive development funding.
The Spending Review, outlined yesterday, Wednesday 11 June, announces targeted investment in Scotland’s most promising sectors to grow the economy and put more money in working people’s pockets. It delivers an extra £9.1 billion over Phase 2 of the Spending Review, through the Barnett formula.
The government also confirmed £25 million for the Inverness and Cromarty Firth Freeport.
These investments are part of a wider package, with funding for hydrogen production projects at Cromarty and Whitelee.
Secretary of State for Scotland, Ian Murray, said: “Putting more money in the pockets of working Scots by investing in the country’s renewal is at the heart of this Spending Review and our Plan for Change.
“The Chancellor has unleashed a new era of growth for Scotland, confirming billions of pounds of investment in clean energy – including new development funding for Acorn – creating thousands of high-skilled jobs.
“Scotland’s leading role at the heart of UK defence policy has been strengthened and there is also significant investment in our trailblazing innovation, research and development sectors.
“And the Scotland Office will work with local partners to ensure hundreds of millions of pounds of new targeted support for Scottish communities and businesses goes to projects that matter to local people. This means that the UK Government is now investing almost £1.7 billion in dozens of important growth schemes across Scotland over 10 years.
“To maximise the benefit of recent trade deals with India, US and the EU we are continuing the Brand Scotland programme to promote inward investment opportunities boosting Scottish exports of our globally celebrated products.
“And we are delivering a record real-terms funding settlement for the Scottish Government with an extra £9.1 billion over the Spending Review period through the Barnett formula. That’s more money than ever before for them to invest in Scottish public services like our NHS, police, housing and schools.
“This is a historic Spending Review for Scotland that chooses investment over decline and delivers on the promise that there would be no return to austerity.”
Investment in Scotland to strengthen UK defence
Speaking in the House of Commons yesterday, the Chancellor reaffirmed the government’s commitment to increase defence spending to 2.6% of GDP by April 2027, backing our Armed Forces, creating British jobs in British industries, and prioritising the security of Britain when it is most needed.
The long-term future of the Clyde is secured through an initial £250 million investment over three years which will begin a multi-decade, multi-billion pound redevelopment of HM Naval Base Clyde through the ‘Clyde 2070’ programme.
Investing in innovation and R&D
Scotland will also become home to the UK’s largest and most powerful supercomputer, with up to £750 million committed to its development at Edinburgh University. This world-class facility will give scientists across all UK universities access to extraordinary computer power, further strengthening Scotland’s research and innovation capability.
The UK Government is backing Scottish industry with a share of increased UK-wide R&D spending set to grow from £20.4 billion in 2025-26 to over £22.6 billion per year by 2029-30. Scotland will also benefit from a £410 million UK-wide Local Innovation Partnerships Fund.
Targeted support for Scottish communities
The government is also investing £160 million over 10 years for Investment Zones in the North East of Scotland and in Glasgow City Region, and confirming £452 million over four years for City and Growth Deals across Scotland.
A £100 million joint investment for the Falkirk and Grangemouth Growth deal with the Scottish Government (£50 million from UK Government and £50 million from Scottish Government), demonstrating the UK Government’s continued commitment to the Grangemouth industrial area.
A new local growth fund, and investments in up to 350 deprived communities across the UK, will maintain the same cash level as in 2025-26 under the Shared Prosperity Fund. The Ministry of Housing, Communities and Local Government and the Scotland Office, will work with local partners and the Scottish Government, to ensure money goes to projects that matter to local people. This investment will help drive growth and improve communities across Scotland.
Supporting Scottish businesses
The National Wealth Fund (NWF) is trialling a Strategic Partnership with Glasgow City Region to provide enhanced, hands-on support to help it develop and finance long term investment opportunities. The NWF has already made its first investment in Scotland with £43.5 million in direct equity for a sustainable packaging company, which is to build its first commercial-scale manufacturing facility near Glasgow.
Through its Nations and Regions Investment programme the British Business Bank is delivering £150 million across Scotland to break down access to finance barriers and drive economic growth.
The settlement also allocates £0.75 million each year to champion our ‘Brand Scotland’ trade missions to promote Scotland’s goods and services on the world stage and to encourage further growth and investment.
A record settlement for Scottish public services
The Government has been clear that local decision-making against local priorities is central to delivering growth.
The Scottish Government will receive the largest real terms settlement since devolution began in 1998, with an average £50.9 billion per year between 2026-27 and 2028-29, enabling the Scottish Government to deliver for working people in Scotland. This includes £2.9 billion per year on average through the operation of the Barnett formula, with £2.4 billion resource between 2026-27 and 2028-29 and £510 million capital between 2026-27 and 2029-30.
This investment and record settlement is made possible by the ‘tough but necessary’ decisions taken in the October Budget.
Edinburgh North and Leith Labour MP Tracy Gilbert has welcomed the statement. She said: “The Comprehensive Spending Review is good for Scotland’s economy and public Services.
“After several meetings with the Secretary of States for Science, Innovation and Technology and Scotland I’m so pleased to see the announcement of funding for the new Supercomputer to be based at EdinburghUniversity.
“This major investment in Edinburgh positions us at the forefront of computing, and technological innovation, not just in the UK, but globally.”
Not unsurprisingly, the Holyrood SNP Government has a number of issues with the likely impact of the Spending Review on Scotland. Post to follow …
The block grant for the Scottish Government this year is £50 billion following Main Estimates 2025-26 published on Thursday
The Scottish Government already had the largest real terms spending review settlement in the history of devolution of £47.7 billion. Following revisions at the Spring Statement and Main Estimates, the Treasury has now confirmed the latest settlement is £50 billion.
Secretary of State for Scotland Ian Murray said: “The UK Government delivered the largest spending review settlement in the history of the Scottish Parliament, now Scots rightly expect to see that record finding deliver better results like lower NHS waiting lists, better attainment in Schools, more police on the beat and more housing.
“I was very concerned this week to see that attainment targets for Scottish schools have been reduced and housebuilding has fallen by 4,000, meanwhile police officer numbers are lower than when police Scotland was established and 800,000 Scots are on an NHS waiting list.
“Where the UK government has responsibility for public services, we are seeing NHS waiting lists fall, more housing being built and more bobbies on the beat, all part of our Plan for Change. This historic funding deal for the Scottish Government should be delivering similar results.
External Affairs Secretary Angus Robertson has welcomed the closer co-operation between the UK and the EU following a series of new agreements but said not involving the Scottish Government in any negotiations was “an affront to devolution”.
In a statement to the Scottish Parliament, Mr Robertson said the removal of obstacles to food and agricultural exports, greater support for energy trading and the UK rejoining the Erasmus exchange scheme for students, were all positive aspects of the UK-EU agreement.
But Mr Robertson criticised the lack of consultation with the Scottish Government on key aspects of the deal, particularly on fishing.
He said: “The Scottish Government welcomes the agreement as it represents long-overdue momentum in rebuilding our relationship with the European Union. But no agreement can deliver the economic, social and security benefits we lost with Brexit in 2020.
“We argued for an ambitious package in the interests of people and businesses across Scotland, and there are some positive indicators here, including the agriculture, food and drink agreement which will reduce market barriers; and enhanced cooperation on energy and climate, and a clear intention to rejoin the Erasmus exchange programme.
“The fact that this agreement – not least on fisheries – was reached without the explicit engagement of the devolved governments on the negotiation detail is not just an affront to devolution, it has put at risk, and will continue to put at risk, the benefits of any commitments for the people of Scotland.”
He added: “We still believe Scotland’s best future lies as an independent country within the European Union but we will engage constructively and positively in the next phase of negotiations.
“We also hope to see the UK Government work collaboratively with devolved governments in developing its priorities – as the EU does with its Member States.”
Tracy Gilbert MP Welcomes UK-EU Deal as Major Win for Edinburgh North and Leith’s Young People and Businesses
Tracy Gilbert, Member of Parliament for Edinburgh North and Leith, has welcomed a landmark new agreement between the UK and the European Union.
The Agreement includes:
Trade Boost for Local Businesses: Red tape is being slashed on food and drink exports, helping local producers and potentially lowering prices for families. British steel exports, important to Scottish industry, are now protected from new EU tariffs, saving the sector millions.
Opportunities for Young People: Steps have been taken to rejoin the Erasmus programme and launch a new UK-EU youth mobility scheme, which would allow young people to travel, work, and study more freely across Europe.
Climate and Green Economy Gains: The UK and EU will link their emissions trading schemes, helping British businesses avoid new EU carbon taxes while driving green growth.
Travel Made Easier: UK holidaymakers will benefit from smoother travel with more access to eGates, while a new “pet passport” system will make it easier for families to bring cats and dogs abroad.
Safer Communities: New talks will allow access to EU facial recognition databases, enhancing the UK’s ability to track down dangerous criminals and improve border security.
Tracy Gilbert MP said:“After years of uncertainty for people and businesses following EU exit, this UK-EU Agreement struck by our UK Labour Government brings certainty through a closer relationship with the EU. This new deal strengthens security, supports trade, and opens the door to new opportunities for our young people.
“This deal delivers real, practical benefits for Edinburgh North and Leith whether that be reducing regulation helping businesses to export making it easier for families and holidaymakers to travel across Europe everyone will feel a benefit.
“I welcome the commitment to co-operate further on a Youth experience scheme such as a Youth Mobility Scheme. Such a Scheme would open the opportunity local young people have with countries such as Australia and New Zealand to EU countries. I know my constituents support a Youth Mobility Scheme and I will continue to push for progress.”
UK Government urged to work with Scottish Government on plans
The Equalities Minister Kaukab Stewart has urged the UK Government to rethink its immigration white paper to take account of Scotland’s distinct population needs.
Following publication of new proposals from the Home Office on immigration, the Scottish Government has called on the UK Government to take account of its own proposals on immigration.
The Minister said the UK Government must engage the Scottish Government on its immigration policy, reflecting that migration enriches Scotland’s communities, supports economic growth and addresses population challenges.
Equalities Minister Kaukab Stewart said: “The UK Government’s plans on migration stand in stark contrast to our values and they do not reflect Scotland’s distinct population needs.
“The Scottish Government is proud to welcome and support people from around the world to live, work and build their lives in Scotland. Not only does migration enrich our communities and culture, it is vital for economic growth, public services like the NHS and addressing our population challenges.
“Scotland needs talented and committed people from across the world to live, work and study here without excessive barriers.
“A one-size fits all approach to immigration fails to meet the needs of Scotland and much of the UK. In particular, any plans to end international recruitment of care workers will be devastating for the care sector in Scotland and across the UK.
“We are deeply disappointed that the UK Government’s white paper on immigration fails to take on board our proposals to help meet Scotland’s distinct demographic and economic requirements.
“I call on the Home Secretary to urgently work with us to deliver an immigration system which is reflective of Scotland’s needs, and avoids the harm to our economy, communities, and public services which the policy decisions in the white paper will lead to.
“If it does not, then it becomes ever clearer that Scotland needs full powers over immigration. Independence would give Scotland control over migration policy and provide an opportunity to introduce a new, welcoming immigration system that supports our economy and public services.”
In March, the Scottish Government provided a set of policy proposals to the Home Office during development of its white paper on immigration.
The Scottish Government will shortly publish these proposals online and will write to the UK Government this week to call for meaningful discussions.
To date, there has been no substantive engagement from the Home Office on any of the policy proposals contributed by the Scottish Government during the development of the White Paper.
THINK TANK AND FORMER COUNCIL CHIEF EXECUTIVES JOIN FORCES
Reform Scotland and the Mercat Group collaborate on ideas for local decentralisation
Former local authority chiefs ask: “Has Holyrood become Scotland’s biggest Council?”
Reform Scotland, the non-partisan think tank, and The Mercat Group, an informal network of former chief executives of Scottish local authorities with over 220 years of public service between them, including 70 years as chief executives, are today announcing a collaboration.
Jointly, Reform Scotland and The Mercat Group will advocate for decentralisation of power from the Scottish Parliament to local authorities, along the lines originally envisaged by the architects of the devolution project.
The collaboration begins today with an article – Parliament or Council?: 25 years of evidence– written on behalf of the Mercat Group by Bill Howat, former Chief Executive of Comhairle Nan Eilean Siar, in which he states that “any reasonable, rational review of that evidence could only conclude that it has not been a success in terms of devolving power beyond Edinburgh”.
Bill Howat, former Chief Executive of Comhairle Nan Eilean Siar said:“Any reasonable, rational review of that evidence could only conclude that it has not been a success in terms of devolving power beyond Edinburgh. In fact, all the evidence points to growing centralisation of power in Holyrood. That is not good for local democracy, nor does it seem like good governance.
“There is now a need to revisit and reset the way all public services in Scotland are organised, delivered and financed. We should create a Scottish Civic Convention to take forward the public conversation necessary to conduct such a review.
“There may be other options but the central aim should be to develop a transition plan to ensure decisions on the delivery of all public services are taken at the lowest local level consistent with democratic and financial accountability.
“Scottish local government is in danger of becoming the delivery arm of the Scottish Government; indeed some would argue we have already reached that position. We might fairly ask: has Holyrood become Scotland’s biggest council?”
Chris Deerin, Director of Reform Scotland, said:“At a quarter-century old, now is the time to re-examine those areas of devolution which have not delivered as we all hoped they would. Local government is one of these.
“Other countries enjoy the benefits of properly empowered local government, fulfilling most of the day-to-day operational roles upon which people depend, with central government adopting a more strategic outlook.
“In Scotland, we are failing to realise the potential of local freedom and diversity. Decentralisation is long overdue, and we are delighted to be teaming up with the Mercat Group to generate the ideas needed to make it happen.”
Bill Howat’s blog – Parliament or Council?: 25 years of evidence – can be read here
Deputy Prime Minister Angela Rayner will pledge to transfer more powers out of Westminster
Deputy Prime Minister Angela Rayner will today (Tuesday 16 July) pledge to kickstart a new devolution revolution to transfer more powers out of Westminster and into the hands of local people.
In her first letter to local leaders, Rayner will urge regions without devolved power to “partner with the government to deliver the most ambitious programme of devolution this country has ever seen”.
She will invite local leaders in devolution deserts – those with local knowledge and skin in the game – to work together to take on powers in areas like transport, adult education and skills, housing and planning, and employment support. These new agreements will mean local leaders can make decisions that benefit their communities better, while boosting economic growth and opportunity.
Devolution is central to the government’s mission to boost economic growth, but only around half of the people in England currently benefit from these arrangements. The letter from the Deputy Prime Minister makes clear that the government’s door is open to areas who want to take on devolution for the first time, with the government committed to encouraging more local authorities to come together and take on new powers.
In the letter, Deputy Prime Minister Angela Rayner said: ‘For too long, Westminster government has tightly gripped control and held back opportunities and potential for towns, cities, and villages across the country.
‘Last week, with the Prime Minister, I had the pleasure of meeting the metro Mayors in England. We discussed how to have a proper, grown up conversations around economic growth, and how to deliver that through better housing, skills, and jobs for local people.
‘I want to work with more places to help them use these enhanced powers and role – because I want to drive growth in every part of the country. For any area considering it, now is the time to take the plunge and speak to us about how we can work with you to transform your regions.’
Greater Manchester, one of the places where devolution has existed for the longest and powers are deepest, has been one of the UK’s fastest growing areas over the last 20 years and is forecast to grow by more than the national average in coming years.
This has been driven by powers allowing the Greater Manchester Mayor to encourage investment into the city, boost skills, and work towards an integrated transport system.
In other parts of the country, Mayors have played a crucial role in attracting new investment – with major manufacturers such as Boeing and McLaren bringing new jobs to South Yorkshire, while West Yorkshire is now home to the UK’s fastest growing digital industry outside London.
OECD research suggests that if the autonomy of UK cities was to increase to the same level as Helsinki, then productivity would increase significantly.
Agreeing new devolution deals will mark a monumental shift of power away from Westminster into communities – giving those with skin in the game the power to make the best decisions for their people and make a difference to their lives.
The letter comes ahead of the King’s Speech on 17 July 2024, which will build on the momentum of the government’s first week, by setting out how it will make a difference to the lives of working people.
Reflecting on 25 years of the Scottish Parliament as well as a focus on the future will be the central themes of plans announced today to mark the Parliament’s institutions’ quarter century.
The Scottish Parliament plans include a year-long programme of engagement designed to involve people throughout Scotland in a conversation that both reflects on devolution and considers how we can shape the Parliament in future.
A special event will take place on Saturday 29 June at the Scottish Parliament which people across Scotland will be invited to join. Further details will be announced in the coming weeks.
The Presiding Officer will also visit regions all over Scotland, meeting people from all walks of life to hear their views and ideas for the future. These activities, together with other events to be announced, will enable communities up and down the country to help shape the Parliament of the future.
The Presiding Officer, the Rt Hon Alison Johnstone MSP said: “This year we will reflect on the Parliament’s record and the significant political events during 25 years of devolution. While that reflection is welcome, I also want the Parliament’s focus to be firmly on the future.
“I want to use this milestone as an opportunity to engage people all over country about their aspirations for their Parliament.
“I want to continue to build on and strengthen that relationship between people and Parliament and modernise Holyrood to ensure it meets Scotland’s needs for the coming years.”
Further details for our 25th anniversary will be announced throughout the year.
A special 25th anniversary themed Festival of Politics will take place in the Scottish Parliament in August.
The 25th anniversary year will also explore several themes from the Citizen Participation and Public Petitions Committee’s report on public participation.
This work identified a gap in our activities around making the Parliament visible in and engaged with local communities.
JUDGES have ruled that the UK Government’s block of Scottish gender legislation was LEGAL.
The Holyrood parliament passed legislation to make it easier for people to change their sex last year, but the UK Government blocked the law, arguing that Scotland’s gender law would impact on equality laws across all countries of the UK
The Scottish Government challenged Westminster’s action through the courts, but yesterday The Court of Session in Edinburgh upheld the UK Government’s decision.
The Scottish Government is studying the detail of the judgement and has yet to make an official statement, but First Minister said the Supreme Court judgement marks ‘a dark day for democracy’.
Scottish Secretary Alister Jack takes a different view, of course.
The Secretary of State for Scotland, Rt Hon Alister Jack MP said: “I welcome the Court’s judgment, which upholds my decision to prevent the Scottish Government’s gender recognition legislation from becoming law.
“I was clear that this legislation would have had adverse effects on the operation of the law as it applies to reserved matters, including on important Great Britain-wide equality protections.
“Following this latest Court defeat for the Scottish Government, their ministers need to stop wasting taxpayers’ money pursuing needless legal action and focus on the real issues which matter to people in Scotland – such as growing the economy and cutting waiting lists.”
The Scottish Government is unlikely to take Mr Jack’s advice and has 21 days to decide whether to lodge an appeal.
TORIES ‘FAILING’ VULNERABLE UNACCOMPANIED ASYLUM-SEEKING CHILDREN
Deidre Brock MP will use a House of Commons debate today to call on the UK government to devolve immigration powers to the Scottish Parliament so Scotland can create an asylum system based on fairness and dignity.
Leading a Westminster Hall debate, the Edinburgh North & Leith MP will argue that the Tories are failing to protect vulnerable, unaccompanied children seeking asylum in the UK.
She will also outline how the Illegal Migration Bill will make the situation even worse for children who have been separated from their parents and how it significantly encroaches on devolved powers.
Commenting, Deidre Brock MP said: “The Tories have utterly failed in their duty to safeguard the wellbeing of vulnerable unaccompanied children seeking safety and refuge in the UK.
“Hundreds of children have gone missing from Home Office run-hotels, sparking condemnation from the UN that the UK Government is failing in its obligations to prevent the trafficking of children.
The Illegal Migration Bill will make the situation even worse as the door will be slammed in their faces when they arrive in the UK to seek sanctuary.
“I am proud that Scotland has played its part in welcoming refugees who are desperate to rebuild their lives. However, powers still lie with the UK government and their hostile environment policies. Creating safe and legal routes is the only realistic way to disrupt the business model human traffickers use to exploit already vulnerable people.
“Power over immigration should be devolved to the Scottish Parliament so we can build an immigration system that works for Scotland and an asylum system with compassion and respect.”
