First Minister Nicola Sturgeon welcomed Michelle O’Neill MLA to Bute House today (Friday 20 May).
The meeting, which was arranged at the request of Michelle O’Neill, provided an opportunity to discuss shared areas of interest including the current cost of living crisis, the importance of the Northern Ireland Protocol negotiated with the EU and the prospects for the formation of a new Northern Ireland Executive.
First Minister Nicola Sturgeon said: “Today’s meeting was an excellent opportunity to discuss some of the shared challenges Scotland and Northern Ireland face and I thank Michelle for reaching out and enabling us to discuss these extremely important issues in person.
“It was a particularly timely conversation which provided an update on the ongoing developments around establishing the Northern Ireland Assembly and Executive following elections earlier this month.
“We also discussed the Northern Ireland protocol – most notably the extremely concerning announcement by the UK Government that they intend to legislate to enable unilateral action to dis-apply parts of the protocol – and the incredibly damaging effects this would have in communities right across the UK.
“In a cost of living crisis and teetering on the edge of recession, pitching us into a trade dispute with the EU could be what tips us over.
“Intergovernmental relations are essential when it comes to tackling shared challenges and it is clear that much more needs to be done by the UK Government to ensure a rapid and effective response to the devastating cost of living crisis facing households across these islands. No one should ever have to make a choice between heating and eating.
“Today’s meeting was a further example of the close relationship between Scotland and Northern Ireland. In that spirit, I have written today to the leaders of the DUP and Alliance parties with an offer to meet to discuss these important matters.”
The First Minister today wrote to the other main political parties in Northern Ireland to make them aware of the meeting and offer a similar engagement, should they wish it.
The UK Government last night doubled the amount of additional funding available for the governments in Scotland, Wales and Northern Ireland to tackle Covid – but First Minister Nicola Sturgeon is querying the Treasury’s announcement.
The Treasury says this means the Devolved Administrations can now spend an additional £860 million, increased from the initial £430 million announced earlier last week.
Chancellor Rishi Sunak confirmed the increased funding following discussions with the Devolved Administrations. This will continue to ensure the Devolved Administrations can take the Covid precautions they feel are necessary to keep people safe.
The additional amounts now being provided to each government on top of their Autumn Budget 2021 funding (my italics – Ed.) are:
Scottish Government – £440 million
Welsh Government – £270 million
Northern Ireland Executive – £150 million
These amounts will continue to be kept under review.
These are additional amounts on top of the combined £77.6 billion confirmed for this year at the Autumn Budget 2021. It means that the Devolved Administrations have the certainty they requested to spend additional funding now rather than waiting for Supplementary Estimates in the new year.
Chancellor Rishi Sunak said:“Following discussions with the Devolved Administrations, we are now doubling the additional funding available.
“We will continue to listen to and work with the Devolved Administrations in the face of this serious health crisis to ensure we’re getting the booster to people all over the UK and that people in Scotland, Wales and Northern Ireland are supported.”
However First Minister Nicola Sturgeon continued to query the additional funding in a series of tweets last night.
The First Minister tweeted: “: “Before we get spin on ‘doubling’, the £220m announced last week was NOT new or additional (it was actually £48m less than we had been expecting). Seeking confirmation if this new £220m is additional (tho if so £48m will just make up last w/k loss) & if it has to be repaid to the extent it is new/additional, @scotgov will make sure it goes in full to helping business and the overall Covid effort.”
She added in another tweet: “As infections soar and businesses suffer, we still need much more urgency in action/support from UK Gov – so that devolved gov hands not tied. To that end, it was disappointing and frustrating that neither the PM nor the Chancellor attended this evening’s COBRA.“
Additional funding from the UK reserve will be made available to the governments in Scotland, Wales and Northern Ireland to progress their vaccine rollout and wider health response, the UK Government has confirmed today.
While the devolved administrations are well-funded to continue their response to Covid-19, and have their own reserves and contingency funds, any additional in-year Barnett funding will not be confirmed until early 2022 through the Supplementary Estimates process.
HM Treasury has therefore announced that additional funding will be made available to the devolved administrations to provide greater certainty and allow them to plan as they tackle Covid-19 during the crucial weeks ahead.
HM Treasury will set this amount of additional funding in the coming days and will keep it under review in the following weeks.
The UK Government has already provided the devolved administrations with an extra £12.6 billion through the Barnett formula this year – this includes £1.3 billion confirmed at the recent Autumn Budget and takes their total funding this year to £77.6 billion.
This is on top of UK Government spending on vaccines and tests for the whole of the UK and UK-wide support for businesses and jobs.
Chancellor Rishi Sunak said:“Throughout this pandemic, the United Kingdom has stood together as one family, and we will continue to do so.
“We are working with the governments in Scotland, Wales and Northern Ireland to drive the vaccine rollout to all corners of the United Kingdom and ensure people and businesses all across the country are supported.”
If the amount of funding provided up front to each devolved administration is more than the Barnett consequentials confirmed at Supplementary Estimates then any extra amount will be repaid in 2022-23, or over the Spending Review period if necessary.
If the Barnett consequentials are higher than the amount provided up front the devolved administrations will keep the extra funding.
The news was released as First Minister Nicola Sturgeon was updating MSPs on the latest coronavirus restrictions.
Prime Minister Boris Johnson’s statement at yesterday’s press conference on health and social care:
Good afternoon, I’m joined by the Chancellor of the Exchequer and the Secretary of State for Health and Social Care, because today we’re setting out our plan to help our NHS recover from the pandemic and build back better by fixing the problems in health and social care that governments have avoided for decades.
We all know someone whose test, scan or hip replacement was delayed or who helped to protect the NHS amid the immense pressures of Covid by putting off treatment for a new medical condition.
And now, as people come forward again, we need to pay for those missed operations and treatments; we need to pay good wages for the 50,000 extra nurses we are recruiting, we need to go beyond the record funding we’ve already provided to the NHS, and that means going further than the 48 hospitals and 50 million more GP appointments.
So today, following the most successful vaccine programme in the world, we’re beginning the biggest catch-up programme in the history of the NHS, increasing hospital capacity by 110 per cent, and enabling 9 million more appointments, scans and operations.
I have to level with people – waiting lists will get worse before they get better, but compared with before Covid, by 2024/25 our plan will allow the NHS to aim to treat 30 per cent more patients who need elective care – like knee replacements or cancer screening.
A recovery on this scale cannot be delivered by cheese-paring budgets elsewhere and it would be irresponsible to cover a permanent increase in health and social care spending with higher day to day borrowing.
For more than 70 years, we’ve lived by the principle that everyone pays for the NHS through our taxes, so it’s there for all of us when we need it.
In that spirit, from April we will have a new UK-wide 1.25 per cent Health and Social Care Levy on earned income, with the money required by law to go directly to health and social care across the whole of our United Kingdom, and with dividends rates increasing by the same amount.
This will raise almost £36 billion over the next three years, not just funding more care but better care, including better screening equipment to diagnose cancer earlier and digital technologies allowing doctors to monitor patients in their homes.
The levy will share the cost as fairly as possible between people and businesses: because we all benefit from a well-supported NHS and all businesses benefit from a healthy workforce.
And those who earn more will pay more, including those who continue to work over the State Pension Age.
The highest earning 14 per cent of the population will pay around half of the revenue raised; no-one earning less than £9,568 will pay a penny, and most small businesses will be protected, with 40 per cent paying nothing extra at all.
And this new investment will go alongside vital reform, because we learned from the pandemic that we can’t fix the NHS unless we also fix social care.
When Covid struck, there were 30,000 hospital beds in England occupied by people who would have been better cared for elsewhere, and the inevitable consequence was that patients could not get the hip operations or cancer treatment or whatever other help they needed.
And those people were often in hospital because they feared the costs of care in a residential home.
If you suffer from cancer or heart disease, the NHS will cover the costs of your treatment in full.
But if you develop Alzheimer’s or Parkinson’s, then you have to pay for everything above a very low threshold.
Today, 1 in 7 of us can expect to face care costs exceeding £100,000 in our later years, and millions more live in fear that they could be among that 1 in 7.
Suppose you have a house worth £250,000 and you’re in a care home for eight years, then once you’ve paid your bills, you could be left with just £14,000 after a lifetime of work, effort and saving – having sacrificed everything else – everything that you would otherwise have passed on to your children – simply to avoid the indignity of suffering.
So we are doing something that, frankly, should have been done a long time ago, and share the risk of these catastrophic care costs, so everyone is relieved of that fear of financial ruin.
We’re setting a limit to what people will ever have to pay, regardless of assets or income.
In England, from October 2023, no-one starting care will pay more than £86,000 over their lifetime.
Nobody with assets of less than £20,000 will have to pay anything at all, and anyone with assets between £20,000 and £100,000 will be eligible for means-tested support.
And we’ll also address the fear many have about how their parents or grandparents will be looked after.
We’ll invest in the quality of care, and in carers themselves, with £500 million going to hundreds of thousands of new training places, mental health support for carers and improved recruitment, making sure that caring is a properly respected profession in its own right.
And we’ll integrate health and social care in England so that all elderly and disabled people are looked after with the dignity they deserve.
No Conservative Government wants to raise taxes, but nor could we in good conscience meet the cost of this plan simply by borrowing the money and imposing the burden on future generations.
So I will be absolutely frank with you: this new levy will break our manifesto commitment, but a global pandemic wasn’t in our manifesto either, and everyone knows in their bones that after everything we’ve spent to protect people through that crisis, we cannot now shirk the challenge of putting the NHS back on its feet, which requires fixing the problem of social care, and investing the money needed.
So we will do what is right, reasonable and fair, we’ll make up the Covid backlogs, we’ll fund more nurses and, I hope, we will remove the anxiety of millions of families up and down the land by taking forward reforms that have been delayed for far too long.
Chancellor Rishi Sunak’s statement on health and social care, delivered on 7 September 2021
Good afternoon.
I want to address straight away the following question:
Why do we need to raise taxes?
Three reasons.
First, we need to properly fund the NHS as we recover from the pandemic.
Senior NHS leaders have made clear that without more funding we will not properly be able to address the significant backlog…
…in people’s cancelled operations, delayed treatments, or missed diagnoses.
To get everyone the care they need is going to take time – and it is going to take money.
The second reason is that social care plans announced today have created an expanded safety net.
Instead of individuals having to bear the financial risks of catastrophic care costs themselves, we as a country are deciding to share more of that risk collectively.
This is a permanent, new role for the Government.
And as such we need a permanent, new way to fund it.
The only alternative would be to borrow more indefinitely.
But that would be irresponsible at a time when our national debt is already the highest it has been in peacetime.
And it would be dishonest – borrowing more today just means higher taxes tomorrow.
The third reason we need to raise taxes is to fund the Government’s vision for the future of health and social care.
Properly funded, we can tackle not just the NHS backlog and expand the social care safety net, we can afford the nurses pay rise;
Invest in the newest, most modern equipment;
Prepare for the next pandemic;
And provide one of the largest investments ever to upskill social care workers.
In other words, we can build the modern, more efficient health and social care services the British public deserves.
To fund this vital spending, we will introduce a new UK-wide Health and Social Care Levy.
From next April, we will ask businesses, employees and the self-employed to pay an extra 1.25% on earnings.
All the money we raise will be legally ringfenced, which means every pound from the Levy will go directly to health and social care.
The Levy is the best way to raise the funds we need.
It is fair: the more you earn, the more you pay.
It is honest: it is not a stealth tax or borrowed – the Levy will be there in black and white on people’s payslips.
And it is UK-wide, so people in England, Scotland, Wales and Northern Ireland will all pay the same amount.
To make sure everyone pays their fair share, we will also increase dividend tax rates by the same amount.
And, from 2023, people over the age of 66 will be asked to pay the Levy on their earnings too.
No Government wants to have to raise taxes.
But these are extraordinary times and we face extraordinary circumstances.
For more than 70 years, it has been an article of faith in this country that our national health service should be free at the point of use, funded by general taxation.
If we are serious about defending this principle in a post-Covid world …
… we have to be honest with ourselves about the costs that brings …
… and be prepared to take the difficult and responsible decisions to meet them.
Thank you.
PM Boris Johnson’s letter to the First Ministers of Scotland, Wales and Northern Ireland and Deputy First Minister of Northern Ireland on the new health and social care reform:
National Insurance Contributions increase ‘adds insult to injury’ for families facing devastating cut to Universal Credit
New Joseph Rowntree Foundation analysis estimates that around 2 million families on low incomes who receive Universal Credit or Working Tax Credit will pay on average around an extra £100 per year in National Insurance contributions under the Government’s proposed changes.
Peter Matejic, Deputy Director of Evidence & Impact at JRF said:“We are concerned that around two million families on low incomes who receive Universal Credit or Working Tax Credit will pay on average around an extra £100 per year in national insurance contributions under the Government’s proposal.
“This extra cost adds insult to injury for these families who are facing a historic £1,040 cut to their annual incomes when Universal Credit and Working Tax Credit are reduced in less than a month on 6 October. If it presses ahead, this Government will be responsible for the single biggest overnight cut to social security ever.
“With inflation rising, the cost of living going up and an energy price rise coming in October, many struggling families are wondering how on earth they will be expected to make ends meet from next month.
“The Chancellor is in denial if he seriously believes this cut will not impose unnecessary hardship on millions of families – the majority of whom are in low-paid work.
“Any MP who is concerned about families on low incomes must urge the Prime Minister and Chancellor to reverse this damaging cut, which will have an immediate and devastating impact on their constituents’ living standards in just a few weeks’ time.”
RCEM welcomes Government funding, but warns it won’t be enough
Responding to the announcement of an extra £5.4 billion of funding for the NHS, Dr Katherine Henderson, President of the Royal College of Emergency Medicine, said: “The announcement of this additional funding for the NHS over the next six months is very welcome.
“It comes at a crucial time when the health service enters what will likely be its most challenging winter ever, as it exits the pandemic, seeks to recover the elective backlog and faces the worst ever levels of performance in the summer.
“It is particularly welcome to see the investment in improving infection prevention control measures in hospitals, as this will continue to be of the utmost importance in the coming months. It is also pleasing to see funding to continue to improve the timely discharge of hospital patients. It is vital for Emergency Care that there is good flow throughout the hospital, which includes making sure patients have a smooth discharge from the hospital.
“While this short-term funding is appreciated, there must also be an adequate response to the sharp increase in demand and equivalent deterioration in performance. It is unlikely that this funding will be enough to help enable longer term recovery.
“The challenges that our Emergency Departments face stem from workforce shortages and capacity issues. A shortage of beds can lead to crowding, corridor care and poor flow through the hospital. Workforce shortages spread existing staff thinly and put them under severe pressure.
“These are long term issues and the only way to tackle them will be via a long-term funding plan for the health service, including a workforce plan to recruit nurses and doctors by expanding student medical and nursing places and training places.”
Dr Katherine Henderson, commenting on the announcement of a three-year settlement for health and social care, continued: “The three-year funding settlement announced for health and social care is welcome.
“But the scale of the challenges faced across the health and social care service at a crucial time of recovery mean this will likely not be enough – and the government must be realistic in the colossal task ahead for the health and social care service. It is essential that a plan to address the workforce crisis is prioritised.
“It is also welcome to see the long overdue the first steps towards a plan for social care. There has been a crisis within social care for some time, so it will be good to see the government fulfil its pledge to reform and tackle the social care crisis.
“For that to happen, it is vital that an adequate proportion of the settlement is allocated to social care.”
Commenting on Tuesday’s social care announcement by the Prime Minister, TUC General Secretary Frances O’Grady said: “We need a social care system that delivers high-quality care and high-quality employment.
“New funding for social care is long overdue. But today’s announcement will have been deeply disappointing both to those who use care, and to those who provide it.
“The Prime Minister promised us a real plan for social care services, but what we got was vague promises of money tomorrow.
“Care workers need to see more pay in their pockets now. Nothing today delivered that. Instead, the only difference it will make to low-paid care staff is to push up their taxes.
“This is so disappointing after the dedication care workers have shown during this pandemic keeping services running and looking after our loved ones.
“Proposals to tax dividends should have been just once piece in a plan to tax wealth, not an afterthought to a plan to tax the low-paid workers who’ve got us through the pandemic.
“We know social care needs extra funding. But the prime minister is raiding the pockets of low-paid workers, while leaving the wealthy barely touched.
“We need a genuine plan that will urgently tackle the endemic low pay and job insecurity that blights the social care sector – and is causing huge staff shortages and undermining the quality of care people receive.”
The TUC published proposals on Sunday to fund social care and a pay rise for the workforce by increasing Capital Gains Tax.
The union body says increasing tax on dividends is a welcome first step to reforming the way we tax wealth, but that it won’t generate the revenue needed to deliver a social care system this country deserves.
Instead, by taxing wealth and assets at the same level as income tax, the government could raise up to £17bn a year to invest in services and give all care staff a minimum wage of £10 an hour.
TUC analysis shows that seven in 10 social care workers earn less than £10 an hour and one in four are on zero-hours contracts.
Polling published on Sunday by the TUC showed that eight in 10 working adults – including seven in 10 Conservative voters – support a £10 minimum wage for care workers.
The competition is now live and applications are encouraged from towns and cities across the UK
Winner will have baton passed to them from Coventry – UK City of Culture 2021
UK Culture Secretary Oliver Dowden has today launched the competition to find the UK’s next City of Culture.
The competition, delivered by the Department for Digital, Culture, Media and Sport (DCMS) in collaboration with the devolved administrations, will use culture as a catalyst for levelling up areas outside London and put culture at the heart of their plans to recover from the impact of the pandemic.
The new winner will take on the baton from Coventry and be at the centre of the UK’s cultural spotlight for a year.
For the first time, groups of towns will now be able to join together and apply for the title to be awarded to their local area – widening the scope of which areas of the country could benefit.
Towns and cities will need to articulate a strong and unique vision for their future growth, celebrating local heritage and using culture to bring communities together, build a sense of place and inspire local pride.
Bidders will also be asked to demonstrate how investment in culture and creativity will drive growth, how they will open up access to culture and to develop partnerships and celebrate links with places across the UK.
UK Culture Secretary Oliver Dowden said: “UK City of Culture is a fantastic showcase of the huge impact culture has in towns and cities across the country. From Derry-Londonderry, to Hull and Coventry, previous winners have shown how the competition can deliver greater cultural participation, drive economic regeneration and boost local pride.
“I encourage towns and cities across the UK to put forward bids for 2025 and champion their local arts and culture scene. I’m also delighted to confirm the competition will run in future years, as a sign of our commitment to levelling up culture across the whole of the UK.
Scottish Culture Minister Jenny Gilruth said: “I encourage Scottish towns and cities to take this opportunity to celebrate their local culture and consider bidding to be UK City of Culture in 2025.
“The competition can have a transformational impact on host communities and has the potential to bring a major boost to Scotland as we look ahead to the recovery and renewal of the culture sector.
UK Government Minister for Scotland Iain Stewart said: “The UK City of Culture competition offers a wonderful opportunity for the winning city to make its mark on the UK’s cultural landscape.
“Through raising a city’s creative and cultural profile and drawing in visitors, winning this prestigious title can also provide a real social and economic boost.
“It would be brilliant to bring the prize to Scotland for the first time and I’d strongly urge Scottish towns and cities to get involved.”
The future for the competition has also been confirmed, with Oliver Dowden announcing today that UK City of Culture will become a regular event in the country’s cultural calendar – running in 2029 and beyond.
The first city to take up the mantle was Derry-Londonderry in 2013, followed by Hull in 2017. The City of Culture title attracted millions of visitors and drew in significant investments for both cities. The cultural programmes have had a lasting positive impact on local people, with surveys showing that communities felt prouder and more positive about the place they live after their City of Culture year.
Bidding for the title in its own right can have a hugely positive impact on a place – helping to bring partners together and develop strategic cultural leadership. To encourage as many places as possible across the UK to bid and to benefit from the UK City of Culture process, DCMS will offer funding of up to £40,000 to up to six longlisted places to help develop their applications.
Coventry City of Culture 2021 is already providing a blueprint for how culture can be at the heart of social and economic recovery.
It is expected that Coventry’s status as UK City of Culture will see a significant boost in visitor numbers and economic investment with over £110 million in additional investment secured over the 2018-22 period. The programme aims to attract around 5,000 volunteers and create more than 900 jobs.
The bids for the 2025 title will be assessed by an independent panel chaired by Sir Phil Redmond. He is joined this year by Claire McColgan, Director of Culture Liverpool, as Deputy Chair.
The panel of 11 members will include representatives for Scotland, Wales, Northern Ireland and England. It will visit each of the shortlisted cities, to be announced later this year, before each city or town makes a final pitch to become the next UK City of Culture.
The formal application process for the 2025 competition is now open. The winning city or town will be announced in Spring 2022. Prospective bidders will be invited to join a two day workshop in Coventry which will provide further detailed information and advice on the bidding process.
Sir Phil Redmond, UK City of Culture Chair, said: “I am delighted with the announcement of the competition for 2025, with its expected continuance as a regular feature in our cultural calendar.
“The UK City of Culture years provide the UK with an opportunity to project its creativity to the world while providing cities the opportunity to revaluate their place in the UK, to come together, forge stronger partnerships and reset both internal and external perceptions as Derry-Londonderry 2013, Hull 2017 and currently Coventry 2021 are experiencing.
“It is the excuse for people to talk to each other, rather than at each other.
Martin Sutherland, Chief Executive of Coventry City of Culture Trust, said: “The impact that winning the UK City of Culture title has on a city is huge.
“Over the last four years in Coventry, we have seen significant investment come into the city as a direct result of being UK City of Culture 2021, leading to an ambitious reimagining of the city’s public realm and cultural infrastructure as well as supporting the extraordinary artists, freelancers, cultural organisations and charities that make this youthful and diverse city so exciting.
“Our year as UK City of Culture has just begun, but we can already sense the long-lasting impact on the city, its business and its communities. We wish the best of luck to those cities, towns and regions who are competing for the 2025 title.”
The UK’s Chief Medical Officers issued a joint statement last night recommending that the UK COVID-19 alert level move from level 3 to level 4:
‘The Joint Biosecurity Centre has recommended that the COVID-19 alert level should move from level 3 (COVID-19 epidemic is in general circulation) to level 4 (COVID-19 epidemic is in general circulation, transmission is high or rising exponentially).
‘The CMOs for England, Scotland, Wales and Northern Ireland have reviewed the evidence and recommend all 4 nations of the UK should move to level 4.
‘After a period of lower COVID cases and deaths, the number of cases are now rising rapidly and probably exponentially in significant parts of all 4 nations. If we are to avoid significant excess deaths and exceptional pressure in the NHS and other health services over the autumn and winter, everyone has to follow the social distancing guidance, wear face coverings correctly and wash their hands regularly.
‘We know this will be a concerning news for many people. Please follow the rules, look after each other and together we will get through this.’
Chief Medical Officer for England, Professor Chris Whitty
Chief Medical Officer for Northern Ireland, Dr Michael McBride
Chief Medical Officer for Scotland, Dr Gregor Smith
Deputy Chief Medical Officer for Wales, Dr Chris Jones
Earlier yesterday the Prime Minister had calls with the First Ministers of Scotland, Wales and Northern Ireland and the deputy First Minister of Northern Ireland about how coronavirus is spreading across the country.
During these calls, the Prime Minister made clear that the rising infection rates are a cause for great concern, which he is taking very seriously.
He reiterated his unwavering commitment to working with the devolved administrations as we continue to tackle the virus. They all agreed to act with a united approach, as much as possible, in the days and weeks ahead.
The Prime Minister invited the First Ministers and the deputy First Minister to attend a COBR this morning to discuss next steps for the country.
Further restrictions are expected to be announced later today.
The UK Government has declined to give evidence to the Scottish Parliament on its UK Internal Market Bill.
The UK Government says it regrets that Secretary of State for Business, Energy and Industrial Strategy, Alok Sharma MP (above) will not be able to appear before Holyrood’s Finance and Constitution Committee on account of the “tight legislative timeline” for the Bill that is currently going through Westminster.
Finance & Constitution Committee Convener Bruce Crawford MSP says he is ‘dismayed’ by the declined invitation.
The UK Government acknowledges “all aspects” of the Internal Market Bill will require the legislative consent of the Scottish Parliament.
Finance & Constitution Committee Convener Bruce Crawford MSP said:“The UK Internal Market Bill will affect many people’s lives and livelihoods in Scotland. It will also have a profound impact on the devolution settlement and on the powers of the Scottish Parliament.
“The UK Government already recognises and accepts that all aspects of this Bill require the legislative consent of the Scottish Parliament.
“I am genuinely dismayed, therefore, that the Secretary of State for Business will not make time to give evidence to our committee, as we consider whether or not to recommend that consent be given to this UK Bill.
“Our report to the Scottish Parliament will not have the benefit of direct evidence from the UK Government and that is a matter of regret, as is the discourtesy that colleagues will infer from the UK Government’s response.”
Mr Crawford added: “Under my convenership, this committee has always set out to engage constructively with the UK Government. Indeed, we will hear from Mr Hands on the Trade Bill next week.
“It is implausible why a UK Minister is available for the relatively limited impact on devolution of that Bill, while not being available for the Internal Market Bill which has a potentially huge impact on the people of Scotland.”
The text of the email from Mr Sharma’s office is below.
The declined request cites the Bill’s “tight legislative timeline”, which was set by the UK Government.
Full text of email dated 15 September 2020:
Hi (Name of Clerk to Committee),
Apologies for the delay and thank you for your invitation for the SoS to give evidence to the committee. Given the tight legislative timeline for the Bill, it is with regret that the SoS will be unable to attend this committee session. We look forward to the findings of the Committee’s engagement on the UK internal market Bill.
Thanks, (Name of Private Secretary) Office of Secretary of State for Business, Energy and Industrial Strategy, Alok Sharma MP
More on the Committee’s scrutiny of the Internal Market Bill can be found here.
Finance Ministers’ “deep concern” over UK Internal Market Bill
Spending proposals would “reverse devolution”.
Finance Ministers from Scotland, Wales and Northern Ireland have met to discuss a range of fiscal matters and voiced their collective concerns about the financial implications the UK Internal Market Bill will have on devolved governments.
Kate Forbes, Rebecca Evans and Conor Murphy expressed their joint concerns on the spending powers set out in the Bill which override the existing devolution settlement.
The powers enable the UK Government to undertake spending in devolved areas, including for replacement of EU funding, without any engagement with the devolved nations.
Finance Ministers also voiced concerns about what this could mean for future consequential funding arrangements.
Scotland’s Finance Secretary, Kate Forbes said: “It is entirely unacceptable that – with no prior notice – the UK Government has written provisions into the Bill that presume Whitehall control over the delivery of replacements for the EU funding programme in Scotland – a programme that Scottish Ministers have delivered successfully for decades.
“This Bill would also allow the UK Government to dictate how money is spent in devolved areas without the consent of Scottish Ministers. It puts at risk funding for a whole host of capital programmes – schools, hospitals and infrastructure. It reverses the devolution process and we will oppose any attempt to bypass the Scottish Parliament and Government, which are elected by the people of Scotland.
“Not only is it in contravention of the devolution settlement, but it has the potential to create confusion, duplication and unnecessary additional bureaucracy at a time when economic recovery is paramount.”
Welsh Finance Minister Rebecca Evans said: “I am deeply concerned that the Bill gives UK Ministers, for the first time since devolution, powers to fund activity in areas which are clearly devolved to Wales.
“In Wales funding decisions are taken in partnership with local communities, to ensure that they reflect the needs of the people in Wales. The powers set out in the Bill completely undermine devolution and will see decisions currently taken in Wales, clawed back by the UK Government.”
Finance Minister for Northern Ireland, Conor Murphy said: “The Internal Market Bill will give the British Government wide ranging powers to make funding decisions in devolved areas.
“This is greatly concerning and could have huge implications for the Good Friday Agreement. The British Government should not interfere in funding matters which are currently the responsibility of the Devolved Administrations.
“It is also imperative that they provide details on the scope of the Shared Prosperity Fund. This will be a vital source of replacement funding for devolved areas and the lack of meaningful engagement to date is extremely disappointing.”
As the Chancellor stands up to make his ‘summer statement’ today, families across the country will be facing up to the possibility of unemployment (writes the TUC’s KATE BELL):
The Chancellor has a chance to prevent the devastation of mass unemployment leading to the situation this country saw in the 1980s – young people left on the scrap heap, lives ruined, and communities decimated. But he needs to act fast and decisively.
Here’s the TUC’s plan for decent jobs:
1. Introduce a real jobs guarantee – offering paid jobs for young people who face unemployment
We’ve heard that the Chancellor may invest in apprenticeships, or traineeships – unpaid work placements with some training attached. It’s not clear yet whether these will be voluntary, or how the Chancellor expects people to live while they’re undertaking these. The TUC has always opposed mandatory unpaid work placements. And unpaid work experience is no substitute for a real jobs guarantee.
We want the government to invest in supporting real jobs, paid at least the Real Living Wage, for young people facing the prospect of long-term unemployment. Government funding should support additional jobs in the public and private sector that support regional growth strategies, and provide real benefit, including helping to decarbonise the economy.
That jobs guarantee must go alongside a rapid redundancy response service and investment in jobcentres. And we desperately need an increase in social security payments to stop those who lose their jobs spiralling into debt.
2. Invest across the economy to create jobs
We know the country needs an infrastructure upgrade to help drive productivity, and urgent action to tackle the climate crisis. And after a decade of austerity, our public services are desperately overstretched.
Fixing these problems now can help create the jobs we need. Research for the TUC shows that an £85bn investment in green infrastructure could help create 1.24 million jobs in the next two years, including 500,000 jobs through building and retrofitting social housing, and almost 60,000 jobs in electrifying transport.
And we should support our public services by investing in jobs. There are over 100,000 vacancies in social care, and 100,000 more in the NHS – even before we deliver a better system. Local government saw 100,000 redundancies in the past decade, jobs that are needed now to deliver vital services and help tackle the pandemic.
3. Work with unions and business on new rescue plans for hard hit sectors
We’ve seen how the pandemic, and the social distancing measures it requires, has hit some types of business harder than others. Aviation and hospitality have been particularly badly affected. Government needs to come together with unions and businesses to design rescue packages for these sectors – including setting out how those plans can be used to deliver better and greener jobs.
The Job Retention Scheme has done valuable work throughout the crisis in protecting people’s jobs, and is now supporting many people to work part-time. Government should extend it beyond October for businesses that can show they have a viable future but need more time to get back on their feet.
4. Prioritise progress towards equality
We know unemployment is bad for everyone. But those who already face discrimination in the labour market often see their prospects held back even further. BME groups faced higher unemployment in the 2008-09 recession, and still have high unemployment rates.
Research shows that during upturns disabled people are the last to gain employment, and during downturns they are first to be made unemployed. With the childcare sector on the brink of collapse, women’s employment prospects face being put back a generation.
The Chancellor needs to prioritise progress towards equality when he sets out his plans. That means tackling the insecure work that leaves BME workers disproportionately having their hours cut or being let go. It means monitoring the impact of employment programmes on different groups.
And it means the Chancellor needs to protect those who can’t work due to the fact they are shielding or have caring responsibilities from being forced out of work by extending the job retention scheme.
Mass unemployment and a new wave of inequality aren’t inevitable. We can build back better. But the Chancellor needs to be bold and act fast.
Finance Ministers from the devolved administrations are urging the UK Government to ease the financial restrictions imposed on devolved governments so they can better respond to the coronavirus (COVID-19) crisis.
Ahead of the Chancellor’s Summer Statement, Kate Forbes, Rebecca Evans and Conor Murphy are calling for assurances that will give them the freedom to switch capital funding to day-to-day revenue and put an end to the arbitrary limits on borrowing. They are also looking for more clarity on details around the forthcoming Spending Review.
Kate Forbes, Scotland’s Cabinet Secretary for Finance (above), said: “The powers we are seeking will enable the Scottish Government to respond to COVID-19 more effectively and reboot our economy. They are relatively limited powers, but would ease some of the immense pressures on our budget and give us more tools to kick-start our recovery.
“At the moment, any extra money spent bolstering services and supporting the economic recovery must be taken from other areas. That creates risks for our essential public services, jobs and businesses. I am therefore calling on the Chancellor to ease these rigid fiscal rules and give us the flexibility we need to properly address the monumental challenges our economy is facing.
“I also want to see greater ambition in the level of investment in our economy. Last week the Scottish Government set out a proposal for an £80 billion UK-wide stimulus package. What is needed at this time of crisis is bold and practical policies that will boost consumption, promote investment and protect jobs.”
Northern Ireland Finance Minister Conor Murphy said: “It is crucial that the devolved administrations are equipped to respond swiftly and effectively to the challenges arising from COVID-19.
“More financial flexibility can help us deal with these challenges and use our budgets to support public services, protect the vulnerable, and deliver an economic recovery.”
Welsh Finance Minister Rebecca Evans said: “Our response to the COVID-19 crisis has been hampered by UK imposed rules that limit our ability to get more resources to the frontline.
“There is no clear rationale for these rules, which undermine good budget management in Wales.
“The Welsh Local Government Association, Wales TUC, FSB Cymru and Institute for Fiscal Studies and, more recently, the Senedd’s Finance Committee, have all made the same calls for change.
“The crisis has made the issue urgent. It’s time for the UK Government to act and provide the flexibility we need to respond and invest in Wales’ recovery.”
