Tag: devolution

Burnham hands England’s mayors share of income tax to make lives better ‘in every postcode’

The Prime Minister has launched ‘the biggest transfer of power from Westminster in a generation’, giving England’s communities greater control over the decisions that shape jobs, transport, housing and public services in their area

  • Biggest transfer of power, funding and responsibility from Westminster in a generation
  • Mayors to keep a share of income tax and business rates revenues so communities directly benefit when their economy grows, with new powers for communities still on the road to devolution
  • Taking a tried and tested approach nationwide – delivering better transport, more homes and skills training matched to local jobs

The Prime Minister yesterday launched ‘the biggest transfer of power from Westminster in a generation’, giving communities greater control over the decisions that shape jobs, transport, housing and public services in their area.

As part of the largest package of financial powers ever offered to English mayors, mayors will receive a share of income tax revenues for the first time.

This means when places create jobs and grow their economies, they will now keep more of the rewards – giving local leaders new powers to invest in what matters most locally.

The government wants every community to benefit from stronger local decision-making. Areas without a mayor will still be supported to establish strategic authorities and gain greater control over local priorities.

In his second week in office, the Prime Minister told his Cabinet that it is time to launch a new era of devolution – taking power and decision-making out of SW1 and putting it closer to people’s lives.

Prime Minister Andy Burnham said: “I said we’d take power out of Westminster and carry it into every postcode in the country. Today, we make good on that promise.

“Under our plans, more of the taxes raised in a community will stay in that community. Soon, every local leader will have the power and resources to improve public transport, build homes and create jobs.

“I know what it’s like to be ignored by politicians in Westminster. I’m not going to make that same mistake now I’m PM.

“The whole of government will now pull together behind the people and places that desperately need our support. This is how we’ll bring back hope and bring power home to you.”

The plans will end the Whitehall-first culture that has held back local areas for decades, forcing departments to justify why powers should stay in Westminster rather than be handed to local leaders.

By shifting power, funding and decision-making closer to people, the changes will give every part of the country the tools to create strong local economies, improve public services and shape its own future.

Chancellor of the Exchequer, John Healey MP said: “The people who best understand what skills employers want, what transport an area needs and where investment can make the biggest difference are those who live there.

“For the first time we’re giving Mayors a share of income tax so communities directly benefit when their economy grows – passing power out of Westminster and driving growth in every postcode. 

“This is the way we start to build new hope and advance the working people of this country.”

From next spring, mayors will begin retaining a greater share of locally generated revenues, starting with business rates. Further details on this and on income tax retention will be set out in a roadmap at the Budget and will be underpinned by the government’s firm commitment to fiscal discipline.

Over time, local areas will move away from dependence on Whitehall grants and towards funding that rewards local growth.

The ambition is to extend the benefits of devolution across the whole UK, working with devolved governments and local leaders to give communities more control over their future.

Secretary of State for Housing, Communities and Local Government Angela Rayner said:  “This is the first step in our plan to rewire this country and build a better future, where power is no longer hoarded in Westminster but is put back in the hands of local people – where it belongs.

“Our devolution revolution is about bringing an end to the begging-bowl culture of the past, and instead making sure our local leaders have the tools they need to drive the change that communities have been crying out for.

“We need every region to be firing on all cylinders if we want good growth in every postcode, and we will do everything in our power to make that a reality.”

The reforms will be driven by a strengthened No10 North operation, working with mayors, local leaders and other partners to remove barriers to growth, accelerate delivery and ensure government is better connected to communities across the country.

Local leaders will gain greater control over the services that shape people’s lives, including housing, transport, skills, employment support and public services.

This includes powers to:

  • Bring rail and bus services under greater local control, helping introduce integrated ticketing and more reliable services.
  • Build more homes where they’re needed and unlock stalled development sites by giving local leaders stronger planning and regeneration powers and more devolved funding.
  • Give more control over large local transport schemes, trams and metros to Mayors by removing and streamlining Whitehall.
  • Give mayors control over 16-19 funding and employment support, so young people can train for the jobs local employers need and people out of work can get tailored support back into employment.
  • Back local industries and innovative businesses, and attract investment, creating more well-paid jobs.
  • Where power is devolved, Whitehall resource will follow, giving devolved leaders the resources they need to drive change closer to home

Reforms will remove barriers that prevent locally led transport projects from going ahead, handing over new planning powers for mayors and give local areas greater flexibility over how funding is spent.

Under a new “local first” principle, ministers will be expected to justify why powers should remain in Whitehall rather than being devolved.

The United Kingdom has invested less in its future than any other G7 country over the past three decades. Giving local leaders greater control over funding and investment decisions will help unlock opportunities that have too often been overlooked by a Whitehall-led approach.

The Prime Minister believes the country’s towns, cities and communities can drive far more growth and opportunity if they are given the tools to do so.

Where local leaders have been trusted with greater responsibility, they have already delivered results:

  • In West Yorkshire, a Housing Investment Fund of up to £334 million is helping unlock land for development and bring forward stalled sites, supporting the delivery of thousands of new homes.
  • In the Liverpool City Region, local leaders are transforming transport through the rollout of Tap and Go ticketing on Merseyrail, bringing the bus network into local control later this year and taking rail services back into public ownership by 2028.
  • In the North East, 65,000 residents have been supported to gain qualifications, opening up new employment opportunities in sectors including construction and childcare.

The UK cannot rely on success in a small number of places alone. By giving more communities the tools to succeed, these reforms will help spread opportunity more widely, raise living standards and ensure more people feel the benefits of economic success in their everyday lives.

As powers move out of Westminster, the Civil Service will become smaller and more strategic, focusing on the responsibilities that are best exercised at a national level.

Making Britain Better, or just a gimmick? No10 North opens for business

Andy Burnham yesterday became the first Prime Minister to work from No10 North, declaring ‘the days of power being hoarded in SW1 are over’

  • Burnham throws open the doors to No10 North, marking a new era of power flowing out of Whitehall and into every postcode
  • PM revives the National Economic Council in Manchester, bringing ministers and regional mayors around the table to drive devolution from week one
  • Comes as PM gives families and business owners breathing space with VAT off electricity bills, £2 bus fare cap restored, and a 20% business rates cut for pubs, clubs and music venues

Andy Burnham yesterday became the first Prime Minister to work from No10 North as he declared the days of power being hoarded in SW1 are over.

Operating from Heron House in Manchester’s city centre, No10 North will be the government’s new situation room for growth. It brings the levers of local economic growth and devolution together under one roof for the first time.

The Prime Minister is expected to work from No10 North each week so that decisions about the country’s economic future will no longer exclusively be made in Westminster. Other ministers will also work from No10 North on a regular basis, underlining this Government’s determination to do things differently. 

The Prime Minister will chair the first meeting of the revived National Economic Council at No10 North today (Friday), bringing together senior ministers and regional mayors to put devolution at the centre of the Government’s mission to make Britian better. 

The National Economic Council was first established in 2008 to provide a national response to an economic emergency. Its revival reflects the Prime Minister’s belief that delivering economic growth now requires the same level of urgency, focus and collective action, bringing together other government departments and local leaders.

Regional mayors will be invited to sit around the table, cementing devolution at the centre of economic decision-making and backing the Prime Minister’s pledge to rewire Britain so that decisions are taken with local leaders, not just for them.

Prime Minister Andy Burnham said: “For 40 years, power and resources have been sucked into the centre, and too many communities have felt forgotten, without the attention and investment they deserve.

“No 10 North will change that by putting more power into every postcode across the entire country.

“It will be the situation room for making Britain better – the place we use to get power out of Westminster, into the hands of people at a local level, so that they can turn things around.

“The days of Whitehall resisting devolution are over, for good.”

Ahead of the first meeting of the National Economic Council, the Prime Minister will speak to leading Business Representative Organisations including the Federation of Small Business, CBI and the BCC to discuss how Government and business can work together to unlock growth, investment and create jobs across the country.

The NEC’s attendees will flex according to the issues under consideration, bringing together business leaders, trade unions and other partners where their expertise can help drive delivery.

Local economic growth, devolution strategy and local growth policy are being brought together so that government departments, mayors, combined authorities and business can work from a single plan rather than competing ones.

First Secretary of State Louise Haigh said: “Today marks a fundamental re-balancing of where power sits in our country. No10 North has been set up to drive economic growth in every postcode and put power in the hands of every community.

“Through this department, this Government will ensure that the places overlooked by Westminster for decades are given a real voice. No.10 North is open for business.”

Chancellor of the Exchequer, John Healey MP added:  “This is a new era for devolution. Never before has a government been so serious about passing on its own power from Westminster in favour of local areas.

“No10 North sits at the heart of that plan. This is the way we signal real change – and the way we get it done.”

The meeting comes off the back of a series of interventions made to ease the cost of living and back local high streets, setting the tone for the PM’s cost-of-living government.

This week the government has announced:

  • The removal of VAT from domestic electricity bills from 1 October, saving a typical household around £45 a year.
  • The £2 cap on bus fares in England will kick in from January 2027.
  • A 20% cut in business rates for pubs, social clubs and live music venues in England from April 2027, benefiting nearly 32,000 venues and worth around £1,100 a year to a typical pub, on top of the 15% relief already in place.

Burnham pledges ‘growth in every postcode’ as he visits Scotland

BUT YER NO’ GETTING ANOTHER REFERENDUM

  • Prime Minister vows to bring back hope ahead of first meeting with First Ministers of Scotland and Wales.
  • Andy Burnham will also attend the opening ceremony of the 2026 Commonwealth Games in Glasgow.
  • Will say devolution has to be about giving local communities power.
  • Comes as the Prime Minister gives families across the nations more breathing space with immediate action on the cost of living.

Prime Minister Andy Burnham will pledge to deliver growth in every postcode across the UK as he visits Scotland during his first week in office.

This afternoon [Thursday 23 July], the Prime Minister will hold meetings in Glasgow with the First Minister of Scotland John Swinney and the First Minister of Wales Rhun ap Iorwerth, before watching the opening ceremony of the 2026 Commonwealth Games later on. 

During his talks the Prime Minister will set out how he plans to work collaboratively with the heads of the Scottish and Welsh Devolved Governments – based on a genuine partnership.  

Prime Minister Andy Burnham said: “When I say we need good growth in every postcode, I mean every postcode across the whole of the UK. Every place and every person matters.

“I’m not focused on point scoring or discussing constitutional changes like referendums, I want practical measures to help people live well and bring back hope. 

“That’s why I’m giving families more breathing space with help on the cost of living, which I have started this week by taking VAT off electricity bills, saving money for millions of households.”

In his first week, the Prime Minister has taken action to give families more breathing space by cutting taxes on energy bills for tens of millions of families this winter.

But this is just the start. As the Prime Minister has said, we need to rewire the Westminster-centric system that has left too many people feeling disconnected from decision making. That’s why he has set up No10 North to spread opportunity and investment more fairly across the UK and put power closer to people’s lives. 

The government says they are building a new economy, re-industrialising the United Kingdom and using public procurement to back our industry and create jobs.

The Prime Minister is expected to meet with the First Minister and Deputy First Minister of Northern Ireland on his tour of the United Kingdom in August, where he will visit places across England, Scotland, Wales and Northern Ireland.

Through this tour, the Prime Minister will hear from people about what is needed in their communities as we restore hope that’s not been there in recent decades.

Reeves Budget ‘tackles cost-of-living and backs Scottish industry’

Scottish families will benefit from a Budget to cut the cost-of-living, create more high skilled jobs and invest in public services, as the Chancellor reaffirmed her commitment to drive economic growth.

  • Chancellor announces fair deal for working families with removal of two-child benefit cap, energy bill saving and fuel duty freeze 
  • Scottish industry backed by investments in Grangemouth, Greenock, Leith and Fife 
  • Public services backed with extra £820 million for Scottish Government

Rachel Reeves recognised Scotland’s huge £204 billion annual contribution to the UK economy with investments in Grangemouth, Greenock, Leith and Kirkcaldy, and provided long-term certainty to the oil and gas industry to support North Sea jobs and investment. 

Despite wages growing more in the first year of this government than at any point in the 2010s, the Chancellor was clear too many families are still struggling with the cost of living which is why the Budget included a range of measures to cut bills and boost pay packets.   

Saying that the fairest way to help people with the cost-of-living was to cut inflation and increase wages, Reeves announced £150 off energy bills, a fuel duty freeze, and national minimum and living wage rises. 

The Chancellor announced the removal of the two-child limit. 95,000 children in Scotland will benefit from this change. Funded by tackling welfare fraud and long-overdue reforms to the Motability scheme, it will result in the biggest reduction in child poverty at any Budget this century.

The Chancellor’s Budget also ensured that Scottish public services are fairly-funded, with an extra £820 million for public services in Scotland through the Barnett Formula, on top of a record settlement in June.

Secretary of State for Scotland, Douglas Alexander MP said: “This is a Budget which delivers for Scotland – raising children out of poverty and helping tackle the cost of living for working families with action on energy bills.

“Scrapping the two-child benefit cap will lift thousands of Scottish children out of poverty. Funded by raising online gambling taxes and tackling welfare fraud, it will result in the biggest reduction in child poverty at any Budget this century.

“The UK Government has backed Scotland’s public services with an extra £820 million — on top of the extra annual £9.1 billion already committed at the Spending Review.

“The £14.5 million announced for Grangemouth is also vital investment in Scotland.”

Ms Reeves also announced reforms to modernise the tax system, asking those with broader shoulders to contribute more through long-overdue fair reforms.

Backing Scottish industry 

  • £14.5 million will back Grangemouth’s transition to a hub for low carbon technologies as the UK Government cements Scotland’s place as the home of the UK’s clean energy revolution. 
  • A further £20 million for Inchgreen near Greenock will upgrade the port’s dry dock, creating up to 1,750 jobs.  
  • Up to £20 million will transform Kirkcaldy town centre and waterfront, including the creation of ‘Adam Smith Growth Works’, boosting local business and tourism.
  • £25 million will be released following the full sign-off of Forth Green Freeport – spanning Leith, Grangemouth and Fife.
  • To support oil and gas workers, the UK Government is introducing ‘Transitional Energy Certificates’ to manage existing North Sea fields for the entirety of their lifespan, and a new Jobs Brokerage Service – offering end-to-end career transition support.

Tackling child poverty, the cost-of-living and economic inactivity

  • 95,000 children in Scotland will benefit from the removal of the two-child limit. 
  • Raising the National Living Wage by 4.1% and the National Minimum Wage by 8.5% —building on April 2025 increases to the National Living Wage and National Minimum Wage that already directly benefitted 220,000 workers in Scotland. 
  • Uprating Universal Credit Standard Allowance by 6.1%, the first ever permanent real terms increase.
  • Increasing the State Pension by 4.8% from April 2026, directly raising incomes for 1.1 million pensioners in Scotland. 
  • Extending the fuel duty freeze and 5p cut, saving the average car driver £49 next year. 
  • Unleashing talent and opportunity with a Youth Guarantee package. This will include ensuring every eligible 18-to-21-year-old who has been on Universal Credit and looking for work for 18 months in Great Britain will get a six-month paid work placement.

Public services investment 

  • The Budget provides an extra £820 million for the Scottish Government to spend on its priorities such as education and tackling NHS waiting times— on top of the extra £9.1 billion already committed during the Spending Review.   
  • The Scottish Government continues to receive over 20% more funding per person than equivalent UK Government spending across the rest of the UK reflecting the real costs of delivering services across Scotland’s diverse geography, from the Highlands to the central belt.

Holyrood: ‘Chaotic’ UK Budget fails to deliver for Scotland

Finance Secretary responds to Chancellor’s statement

The UK Budget “fails to deliver” for Scotland and will not move the dial on the cost of living for squeezed households, according to Holyrood’s Finance Secretary Shona Robison.

Responding to the Chancellor of the Exchequer’s statement, Ms Robison said: “This Budget has been absolute chaos from start to finish. Westminster has been consumed with leaks, briefings and out and out incompetence – with Scotland left as an afterthought and families left to pay the price.

“We needed a step change from the UK Government with investment in public services, support for jobs and industry in Scotland and serious action on energy bills. Instead, we got a chaotic mess and the increase in funding for the Scottish Government will not even cover half the cost of the employer’s national insurance contributions brought in this year.

“With UK energy bills £340 higher than the Prime Minister promised even after today’s announcement, the UK Government are not even trying to deliver on the their promises. It is insulting to see the UK Government stand up and trumpet a proposed reduction that does not even cover the increase since they came to office.

“It does not come close to meeting the Prime Minister’s pledge on energy bills – they have not even attempted to keep their promises.

“The electric vehicle tax is the wrong decision for motorists, the climate and for Scotland given its disproportionate impact on rural drivers.

“And there is no serious support for jobs and industry in Scotland. The Energy Profits Levy is to remain in place – risking thousands of jobs in Scotland and in the North East in particular. Yet again, Scotland is an afterthought.

“And while the moves on the two child cap are welcome, they are long overdue and the UK Government has been forced into this position by the Scottish Government and other campaigners. And without a simultaneous change to the benefit cap it falls well short of the bold anti-poverty measures we have been calling for from the UK Government.

“But the complete chaos around this Budget gets to the heart of the fact that we should not be leaving crucial decisions around the economy, public finances and household bills in the hands of a deeply incompetent Westminster UK government.  We should take these decisions for ourselves with the fresh start of independence.” 

The impact of the increase Employers National Insurance contributions on public services is forecast to cost the Scottish Government at least £2 billion over the next five years.

Responding to the UK Government’s Budget, Poverty Alliance Chief Executive Peter Kelly said: “The Chancellor’s decision to fully scrap the unjust two-child limit is the right thing to do.

“For eight years, this cruel policy has severed the link between what families across the country need and the support they are entitled to, pushing children into poverty and limiting their potential. Our children deserve better.

“Campaigners across Scotland have been unified in their demand to scrap the two-child limit and we are pleased that the UK Government has listened, sending a strong message that every child in this country matters. The end of this policy must be the starting point of reform which ensures that our social security system truly provides security.

“This decision also frees up money earmarked for the mitigation of the policy in the Scottish Budget. Coupled with the additional £820 million allocated to the Scottish Government in this UK Budget, this will allow further investment in the action we know is needed to meet our child poverty targets, including increases to the Scottish Child Payment.”

Commenting on the UK Government’s Budget response, Debbie Horne, Scotland Policy and Public Affairs Manager for Independent Age said: “The Autumn Budget was an opportunity to address pensioner poverty across the UK. However, the UK Government has sadly missed the chance to take action on an issue that now affects almost two million older people across the UK, including 160,000 pensioners in Scotland. 

“While we welcome the retention of the Triple Lock, this measure alone does not go far enough for older people on the lowest incomes who are living across Scotland in cold homes and with not enough money to live on. 

“We continue to call on the UK Government to increase the Warm Home Discount to ease the burden of escalating bills, to support older private renters by uprating Local Housing Allowance so no one has to make dangerous sacrifices to pay their rent, and to boost income through a comprehensive take-up strategy for entitlements, including Pension Credit. 

“The absence of meaningful action to address later-life poverty will leave many older people on a low income in Scotland feeling forgotten and many will be worried about losing more of it in tax, because of the extension of the freeze on personal tax allowances to 2031, a year longer than was expected. 

“We estimate that without decisive government intervention almost 190,000 pensioners in Scotland could be in poverty by 2040. Worryingly, nothing in this Budget suggests we are being steered away from this frightening outcome.” 

Mary Glasgow, Chief Executive of Children First, Scotland’s national children’s charity said: “We welcome the UK Government’s decision to scrap the two-child limit as outlined in the Office for Budget Responsibility report. This is long overdue and frees up Scottish Government budget for other crucial support for children and families.  

“Poverty has a devastating impact on children’s mental and physical health, development, happiness and ability to learn that can last a lifetime.   

“Both governments must now work together to build on progress and meet the legal target to reduce child poverty in Scotland. Families need a stronger social security offer, for example, through the Scottish Child Payment and whole family support across Scotland to give every family the financial, practical and emotional help they need to tackle the root causes of poverty.  

“Children can’t wait. The Scottish Government must use this opportunity to go further and faster in their stated mission to eradicate child poverty.”  

Children First’s manifesto for the 2026 Holyrood elections calls on the next Scottish Government to deliver a comprehensive offer of whole family support to tackle child poverty and give every family the emotional, practical and financial support they need. 

Read the manifesto here: 2026 Holyrood Election Manifesto | Children First 

Helen Barnard, director of policy at Trussell, said: “Trussell is delighted to see the Chancellor take this bold step which will protect hundreds of thousands of children from growing up facing hunger and hardship. She has listened to the families and food banks across the UK who have been imploring her to act.

“The cruel two-child limit has driven countless families into hardship, forced to turn to food banks to survive. Today’s announcement of its full and swift removal will help ensure all our children have the best possible start in life, ease pressure on public services, and help to boost our economy.  

“This government came to power promising to end the need for emergency food and reduce child poverty. Removing the two-child limit will make a vital and significant contribution towards delivering on those manifesto commitments.

“This move will pull 470,000 children out of severe hunger and hardship by 2027 and ease pressure on food banks throughout the UK.

“The government has built on positive steps in strengthening support for people facing severe hunger and hardship. But this cannot be the end. Food bank need remains well above levels five years ago and many people are still struggling to afford the essentials.

“We need more bold choices to transform lives across our communities.”

The End Child Poverty Coalition commented:

Shona Robison: “Scotland must not be left as an afterthought yet again in the UK Budget”

Finance Secretary sets out UK Budget hopes

The UK Government must invest in public services, support economic growth and take action on the cost of living, Finance Secretary Shona Robison has said.

Ahead of the UK Budget on Wednesday 26 November, Ms Robison is calling on the Chancellor to:

  • deliver more funding for Scotland’s public services, infrastructure, and cost of living support – including actions to lower household energy bills
  • ensure that any major taxation choices do not see Scotland losing out on vital funding
  • completely reform the Energy Profits Levy and replace it with a sustainable system, to support jobs and investment across Scotland’s energy sector

Finance Secretary Shona Robison said: “The UK Budget process has been chaotic and mired in damaging uncertainty. It is disappointing that neither the Prime Minister nor the Chancellor were able to meet with the First Minister in London this week.

“Given the limited time to consider the implications of any major policy changes between the UK Budget and the Scottish Budget on 13 January, this lack of engagement is a particular concern.

“Last year, the UK Government increased employer National Insurance contributions without any consultation, which led to a funding shortfall of around £400 million for public services in Scotland and acts as a tax on jobs.  We cannot see a repeat this year.

“We need to see a change of course from the Chancellor – with investment in public services and infrastructure, which supports industry and jobs and delivers support on the cost of living challenges people across Scotland are facing.

“Energy bills in particular are a source of real worry for people this winter.  While the UK Government promised to cut energy bills by £300, they have actually risen by almost £200 – so this Budget must provide some relief for households who are struggling.

“The UK Government must also listen to industry concerns around the Energy Profits Levy. This was always supposed to be a temporary measure and it is now affecting investment and jobs in Scotland.

“The UK Government needs to set out how a stable and long-term fiscal regime will be used to treat the offshore energy sector fairly, alongside other parts of the UK economy, and deliver business and investor certainty.

“Scotland must not be left as an afterthought yet again in the UK Budget.”

The 2026-27 Scottish Budget will be published by the Finance Secretary on 13 January.

UK Government ‘must scrap punitive welfare policies’

Social Justice Secretary urges Chancellor to remove two-child limit and benefit cap

Ahead of a series of meetings in London today with child poverty charities, Social Justice Secretary Shirley-Anne Somerville has urged the UK Government to take action to tackle child poverty in its forthcoming Budget, including immediately scrapping the two-child limit and the benefit cap.

Ms Somerville has called on the UK Government to fully scrap the two-child limit on benefits, which pulls 109 children into poverty every day, while also removing the benefit cap at the same time, which limits the total amount of benefit a person can receive.

Subject to parliamentary approval, the Scottish Government plans to mitigate the two-child limit from March next year, through a new Two-Child Limit Payment worth £292.81 a month for eligible recipients. Estimates show this will keep 20,000 children out of relative poverty next year. 

The Scottish Government is spending £100 million this financial year, through the Discretionary Housing Payment scheme, to mitigate the benefits cap as far as possible within devolved powers.

Ms Somerville said:  “Once again, I am making it clear that the UK Government must fully scrap the two-child limit and the benefit cap as soon as possible. These policies should be confined to the darkest days of austerity and the UK Budget must bring this period to an end.  

“In a country as rich as ours, no child should have to live in poverty. The UK social security system is supposed to be there to ensure a basic standard of living, reduce poverty and inequality and help people through the toughest of times.

“That is why the Scottish Government has made bold decisions – like introducing the Scottish Child Payment and investing in our devolved social security system. Child poverty rates are now lower in Scotland than the rest of the UK and relative child poverty rates in Scotland are at their lowest level in almost a decade.

“I call on the Chancellor to follow our example by scrapping the caps, match the Scottish Child Payment and introduce an essentials guarantee, which would ensure Universal Credit actually covers the costs of life’s essentials, such as food and fuel.”

There have been strong indications that the Chancellor will indeed scrap the Two Child Linit when she announces her Budget later this month.

John Swinney: A Fresh Start with Independence

FM: Scots should make choices that best serve Scotland’s interests

Independence would give the people of Scotland new opportunities to improve their standards of living, according to a new paper published by First Minister John Swinney.

‘A Fresh Start with Independence’ examines how an independent Scotland would be able to improve the economy and the NHS, and tackle issues such as household finances, pensions, social security, migration, energy and defence.

The paper states that the Scottish Government has worked hard to improve the lives of people living in Scotland using devolved powers but it would only be able to fully capitalise on the nation’s potential with independence.

The First Minister said: “I firmly believe that the people who live in Scotland are best placed to make decisions about Scotland. That is the fundamental democratic and practical argument underpinning the case that we make.

“Too many people in Scotland today do not have a decent standard of living and are finding it difficult to make ends meet. That is because standards of living in the UK have improved little in over 10 years, due to a failing economic system and Westminster decisions such as austerity and the disastrous decision to leave the European Union. Scotland did not support austerity and it did not support Brexit. The reality is Westminster is not working for Scotland.

“The Scottish Government works tirelessly to use the powers of devolution to deliver the very best for Scotland. Much good has been achieved through the expansion of early learning and childcare, the introduction of free university tuition, the expansion of the rail network, the introduction of Minimum Unit Pricing of alcohol, the creation of the Scottish Child Payment and many other measures.

“But Scotland needs to be able to improve the opportunities available to our people, our communities and our businesses. Scotland needs to build a stronger, more inclusive economy that works for all. Those possibilities would only be available to Scotland with the fresh start of independence.

“We have shown that when we have the power to decide for ourselves, we find solutions and make choices that best serve Scotland’s interests. I believe Scotland can and will become a successful independent country, with a more dynamic economy and a fairer society.”

The Scottish Conservatives don’t agree, oddly enough:

A Fresh Start with Independence – gov.scot

Scottish Government: Spending Review ‘presents challenges’

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.” 

Spending Review: £ Billions to back Scottish jobs

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 …

Westminster’s Block Grant for Scottish Government hits £50 billion

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.