Tag: Economy and Fair Work Committee

Holyrood committee: Lack of detail and narrow criteria hamper proposed mental health debt relief

A Scottish Parliament committee has expressed its concern with proposals to support people experiencing mental health issues and struggling with debt.

The Bankruptcy and Diligence (Scotland) Bill proposes introducing a “mental health moratorium” – meaning people suffering from poor mental health would be protected from some debt recovery action while their health improved.

However, the Bill proposes that only those subject to compulsory mental health treatment would be protected.

The Parliament’s Economy and Fair Work Committee has called on the Government to extend the criteria to include more people experiencing a mental health crisis, so vulnerable people are not left behind by the new scheme.

Economy and Fair Work Committee Convener Claire Baker said: “The Committee is broadly supportive of this Bill and its aims. The idea of a mental health moratorium will be very helpful to those who need it.

“However, we are concerned that the proposed narrow criteria will mean this Bill does not help enough people, and the Bill should be looked at again with this in mind.

“We are calling on the Scottish Government to extend the criteria to allow more people experiencing a mental health crisis to lean on this support.

“Experts suggested various alternative approaches, and we hope the Government will listen to their views.

“We also believe that this is an opportunity to increase the amount protected for debtors during an earnings arrestment, and further protect vulnerable people from destitution.”

The Committee also criticised the lack of detail around the proposals made available while it was taking evidence.

Crucial information concerning how the moratorium would work was not made available when the Bill was introduced, and more detail won’t be available until the Government sets it out in regulations.

The Committee heard from Minister for Community Wealth and Public Finance Tom Arthur that the Government would “endeavour” to produce draft regulations ahead of stage 3. 

Ms Baker added: ”The Committee looks forward to working with the Government further on these proposals. The Government has indicated they will bring forward draft regulations, and the Committee will look carefully at these.

“It is vital that the Committee has a chance to scrutinise these regulations before the Bill is passed, so that the detail of these proposals can be fully examined.”

Community must be at the heart of just transition in Grangemouth, says Holyrood Committee

The transition to a low carbon economy offers huge opportunities for the town of Grangemouth – but work must be done to ensure that local people and businesses aren’t left behind.

That’s the verdict of a Holyrood committee, which yesterday released the result of its inquiry into a Just Transition for the Grangemouth Area.

The Economy and Fair Work Committee took evidence from local residents, representatives from industry, trade unions and the Scottish and UK Governments as part of a wide-ranging inquiry into how the transition should be managed.

The report makes several key recommendations ahead of the Scottish Government’s own “dedicated and focused Grangemouth just transition plan.” These include a call for the plan to map the transition for the whole area rather than just the industrial site.

Committee Convener Claire Baker MSP said: “Scotland’s just transition to a low-carbon economy presents significant opportunities – not just for the economy, but also for our communities. Nowhere is that clearer than in relation to the Grangemouth Refinery.

“It is clear from the response from the local community that any just transition must maximise opportunities for the town itself, and ensure that the benefits are felt widely.

“The potential for significant regeneration and improvement is on the town’s doorstep, and it is now down to the UK and Scottish Governments, as well as INEOS, to make sure it is fully realised.”

The Committee wants the Government to meaningfully engage with the community and co-design its plans, allowing the community to have a direct impact in the future direction of their town.

The report also stresses the importance of the Acorn Project for carbon capture, which aims to capture and store up to one million tonnes of CO2 by 2027. The Acorn Project is a “critical enabler” for INEOS’ ambitions for the Grangemouth site, according to the report.

Funding for carbon capture lies with the UK Government. Minister Graham Stuart MP told the Committee that while the project was not selected to receive funding in the first round in October 2021, Grangemouth was in “pole position” for future rounds. An update is expected in the summer.

Claire Baker MSP continued: “While the Committee welcomes the sentiment that Grangemouth is well placed to receive funding for carbon capture, these warm words must now be backed up with a commitment. Funding the Acorn Project will truly unlock the potential of the site and must be a priority.”

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Have your say on new Scottish bankruptcy laws

Thousands of people each year experience severe financial difficulties. If you have ever been in that situation, a Scottish Parliament committee wants to hear from you to find out how the process could be improved. 

The Bankruptcy and Diligence Bill will, among other provisions, create a “mental health moratorium”, meaning enforcement action against someone with serious mental health problems can be stopped.

The Bill will also make changes to the process for recovering money for creditors, including a requirement for creditors to provide a debtor with information about debt advice before enforcement.

Now the Economy and Fair Work Committee wants to hear your views on this Bill – especially if you have lived experience of the issues it covers.

Committee Convener Claire Baker MSP said: “The stress and worry of severe financial difficulties is something that all too many people are facing. The Bill aims to make changes to the bankruptcy process, but we want to know what impact these changes will have on those people affected.

“By sharing their insights, people from across Scotland can help shape a fairer and more compassionate system that addresses the challenges faced by individuals in financial distress.

“We particularly want to hear from people who have been in this situation and experienced significant mental health challenges on the difference the proposed moratorium would have made.”

The call for views will be open until Friday 21 July. People can submit their views on the Scottish Parliament’s website

Views sought on disabled peoples’ experience of the labour market

What are the barriers that disabled people face in finding their ideal job is the question that MSPs on the Economy and Fair Work Committee will be asking as part of work into the issue.

Statistics show that people with a disability in Scotland have a lower employment rate than non-disabled people. The Scottish Government also has a target to half the disability employment gap by 2038 within the Fairer Scotland for disabled people – employment action plan. This work will try and identify what barriers exist and what more can be done to help disabled people and employers.

Claire Baker MSP, Convener of the Economy and Fair Work Committee said: “There have been some really good examples of where employers have put in place measures to make sure that everyone, regardless of their background, is able to get and keep a job.

“But we know that this is unfortunately not the case for every disabled person  who is actively looking for employment.

“We want to hear directly from people about these barriers and what more we as policymakers can do to help make looking for a job a more equitable experience for everyone.”

The Committee is asking for those interested in this issue to give us their views. We’ll be asking for views on the following issues:

What progress has been made to reduce and remove barriers faced by disabled people to access Scotland’s labour market?

What are the remaining challenges, and why has progress been difficult?

What policy measures would you like to see to support disabled people and employers to increase participation rates?

What has been the impact of the Covid-19 pandemic on disabled people’s experience of the labour market?

MSPs call for action to halt decline of our town centres

MSPs on the Economy and Fair Work Committee have called for action to halt the long-standing decline of town centres, as it publishes a new report following an inquiry into the issue.

The Committee’s inquiry concluded that the planning system needs to be strengthened to ensure no new developments unfairly compete with town centre provision. Alongside this, a rebalancing of the cost of doing business to make town centres more competitive including how non-domestic rates currently operate, to support investment in town centres.

Every town in Scotland should have their own Town Plan, a long-term strategic vision for the future that recognises the unique nature of our towns, their histories and the community that brings them together. It should be driven locally by communities and not imposed from the top down. Transparency of ownership and powers to tackle derelict or dangerous buildings also need further action.

Claire Baker MSP, Convener of the Economy and Fair Work Committee said: “This report should signal a line in the sand for how we support, develop and prioritise investment in our town centres. We all know a town centre that has empty shops, a lack of investment and few thriving businesses.

“Throughout this inquiry we heard that although the pandemic accelerated trends towards online shopping, people really care about the future of their town centre and what is on their doorstep. The positive benefits that a thriving town centre can bring are clear – not just economically but socially and culturally as well.

“As we move into a challenging period of our retail sector, our Committee is unified in its call that vibrant, thriving town centres must be prioritised. This report recognises that the only way to do that is through changing how we support these developments through various measures from planning to non-domestic business rates.

“This report signals that change is needed. We know there is no quick fix but unless we start now, then we won’t be able to halt the accelerated decline of recent years we’ve seen already in too many communities across Scotland.”

Specific measures include:

  • Strengthening the National Planning Framework 4 (NPF4) to ensure that any proposed developments can demonstrate that town centre sites have been pursued and thoroughly evaluated and that developments will have no adverse impact on town centres and will not compete with town centre provision.
  • The overarching principle must be rebalancing the cost of doing business in town centres versus out-of-town sites. Approaches that could be considered include giving Councils the power to levy an out-of-town development premium or a business rates surcharge which could then be used for town centre regeneration.
  • The current non-domestic rates (NDR) system acts as a disincentive when trying to attract businesses back to our town centres. For businesses already located in town centres, the current NDR system acts as a disincentive to invest in already occupied property, as any investment leads to an increase in NDR. The Committee consistently heard that the current system works against investment and growth in town centre retail and that the NDR system should be rebalanced to support town centre development.
  • There is strong demand amongst Scotland’s smaller retailers for more and better support to build their online presence and to be able to take advantage of platforms that already exist. A broader range of opportunities must be made available to upskill, strengthen and future-proof our retail workforce.
  • Transparency of beneficial ownership of town centre property and land and absentee owners can still be a problem, particularly where an individual lives or is based overseas. It is the Committee’s strong view that all property and landowners should be contactable and there should be clarity on who the owner is. The Scottish Government has said its focus is on Compulsory Purchase Orders. The Committee is of the view that the Scottish Government’s actions may be insufficient and that more may need to be to address this problem.
  • Local authorities have a range of powers available to them to tackle derelict or dangerous buildings but they are not used as frequently or proactively as we would like. There can be a reluctance to resort to those statutory powers, in part due to a lack of resources to carry actions through. The Committee welcomes the Scottish Government’s commitment to reform and modernise the compulsory purchase orders.
  • The Committee recognises the value of, and increased demand for, online and e-commerce activities and the importance of increasing the use of technology as a driver of increased productivity. A strategically driven action plan should be developed by the Scottish Government to support the take-up of training and capacity building to support Scotland’s eCommerce activity.
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Holyrood committee to investigate the future of Scotland’s town centres

The future of Scotland’s town centres, and how the changing nature of retail and ecommerce has impacted them, is to be investigated by the Economy and Fair Work Committee.

The Parliamentary Committee is looking to identify the current challenges for high streets, and the barriers to their success, and to explore the extent to which an increasing use of ecommerce is impacting on Scotland’s town centres.  It aims to propose action needed to support modern and thriving town centres.

The Committee’s inquiry has three areas of focus:

  • Keeping town centres alive – including how they have changed over recent years, their strengths and weaknesses, and who or what can drive positive change in Scottish town centres.
  • The new realities of Scottish retail – including how this sector has evolved over the last decade, the impact of these changes on town centres and what role fiscal policy levers should have in supporting this sector.
  • Ecommerce in Scotland – including the implications for businesses of increased online shopping and digital activity, and the role of Scottish SMEs in the ecommerce sector.

Speaking as the inquiry was launched, Claire Baker MSP, Convener of the Economy and Fair Work Committee said: “Scotland’s town centres have traditionally been the heartbeat of our communities bringing people together to live, work, shop and socialise.

“However, traditional town centres are under pressure and under threat, with too many shops closing and too many high streets dominated by ‘to let’ signs.

“Changing retail trends, including the growth in ecommerce and the expansion of retail park alternatives, combined with the impact of the COVID-19 pandemic, continues to create a difficult trading environment.”

The Convener continued: “We want to find out how to diversify and grow high street activity, and are particularly keen to hear from businesses and members of the public on what makes a successful and thriving town centre.

“Our inquiry is seeking to bring forward recommendations to demonstrate how Scotland’s town centres can thrive in this post pandemic world, and be vibrant, resilient and accessible places which meet the economic, social and environmental needs of our communities.”

You can give your views here: https://yourviews.parliament.scot/efw/towncentres

The call for views closes on 16th March.