Treasury figures published today show breakdown of the record £41 billion per year settlement for the Scottish Government
Scottish Government receives £126 per person of Barnett-based funding for every £100 per person of equivalent UK Government spending in England and Wales
Figures reaffirm UK Government’s commitment to levelling up across the whole of the UK
Figures released today by the Treasury set out how the UK Government will provide a record level of funding to the Scottish Government over the next three years – worth £41 billion a year.
The Block Grant Transparency publication provides a detailed breakdown of the funding settlements announced for Scotland, Wales and Northern Ireland at Spending Review 2021.
The £41 billion annual funding settlement is the largest, in real terms, since devolution more than 20 years ago. It ensures that the Scottish Government are well-funded to improve public services such as education, housing, health and social care, and will support the UK Government’s mission to level up the UK and build back better and greener from the pandemic.
In addition to Block Grant funding, the UK Government is also making direct investments in Scotland, such as committing more than £170 million through the Levelling Up Fund and the Community Ownership Fund, which will help to improve local infrastructure, regenerate town centres, and could even help to buy your local pub or community sports club.
Scotland will also benefit from cuts to Air Passenger Duty to improve connectivity and support jobs at Scottish airports.
UK Chief Secretary to the Treasury, Simon Clarke said:“We’re committed to ensuring Scotland receives its fair share, and the latest Spending Review has provided a record £41 billion a year to the Scottish Government.
“This is funding substantial additional spending on key public services – as set out in last week’s Scottish Budget.
“We’ve also ensured people in Scotland have been supported throughout the pandemic, and the UK Government’s schemes have supported around one in three Scottish jobs. Now we’ll continue to work with the Scottish Government as we progress our recovery.”
Scottish Secretary Alister Jack said:“Funding for the Scottish Government is the highest it has ever been, at a record £41 billion a year.
“The block grant settlement comes on top of significant direct UK Government investment in Scotland. We are committed to levelling up right across the UK, and are working with the Scottish Government and local councils to improve communities the length and breadth of Scotland.
“We recently announced a £191 million boost for Scottish community projects, on top of the £1.5 billion we are investing in City Deals in Scotland.
“For almost two years, the UK Government has been focused on protecting people’s lives, livelihoods and jobs. We will continue to tackle the pandemic while building a brighter future with a strong economy for people in every part of the UK.”
At Budget 2017, the Treasury committed to publish an annual Block Grant Transparency publication after each UK Government Budget to show a breakdown of changes to the devolved administrations’ block grant funding.
This report is intended to support greater transparency and accessibility to the people of Scotland as to how the UK Government provides funding to the Scottish Government
Families on low incomes are facing a worrying winter ahead as today’s figures show inflation has hit 5.1%. The rising cost of utilities are especially challenging given they take up such a large share of low-income families’ budgets.
The Government recently announced that benefits will be uprated by 3.1% in April which will close some of the growing gap between people’s incomes and their costs. However, this does not address the immediate hardship families are experiencing this winter.
In October, the Office for Budget Responsibility projected inflation to peak at 4.4% by April but today’s 5.1% exceeds that level.
New JRF analysis based on OBR forecasts shows that should inflation be 4.4% by next April:
Around 100,000 individuals are at risk of falling into deep poverty (below 50% of median income after housing costs) due to benefit uprating being less than inflation in April
Around 7 in 10 of whom live in households that contain children
Around half live in working households
Given today’s high inflation figures, this could be an underestimate and even more individuals may be at risk of deep poverty.
The outlook is especially stark for people who are out of work and reliant on social security to make ends meet. These families have already experienced a £20-a-week cut to Universal Credit. This also comes after a decade of cuts and freezes to social security which has left the system wholly unable to provide the support millions of people need.
Katie Schmuecker, Deputy Director of Policy & Partnerships at the Joseph Rowntree Foundation, said:“It is deeply concerning that families on low incomes, who are already struggling to make their budgets stretch, are at risk of being pulled deeper into poverty. Prices are rising sharply and support available to people is inadequate.
“Everyone in our country should be able to afford the basics yet there is no sign of any respite on the horizon for families struggling to keep their heads above water. Too many people who are being hit by rising energy bills and increasing food prices are forced to ask themselves what essentials they will go without this winter.
“In a country like ours, social security should, at a bare minimum, enable people to meet their needs with dignity. Unless the Government urgently strengthens support, we will see more and more people being pulled deeper into poverty and debt in the months ahead. This is not only harmful but also completely avoidable.”
The City of Edinburgh Council has set out its plans for a Stronger, Greener, and Fairer economy.
After months of consultation with the city’s businesses, citizens, key partners and stakeholders, the refreshed Edinburgh Economic Strategy sets out the actions the Council will take to support the economy, and a clear direction for the priorities on which it will collaborate with partners across the city.
Agreed at yesterday’s (30 November 2021) Policy & Sustainability committee, the strategy sets a vision for the Edinburgh’s economy to be:
1. Stronger: so that Edinburgh businesses recover from the pandemic and create an economy that is more resilient, flourishing, and innovative than ever before.
2. Greener: so that Edinburgh’s transition to net zero brings local jobs and high skilled opportunities which people from all backgrounds can access though education and retraining.
3. Fairer: so that everyone in Edinburgh has the opportunity to access fair work that provides dignity and security of income.
Key highlights for delivery by the Council during the first year of implementation of this strategy in 2022 include (full list included in the full strategy report):
Increasing the number of people helped into work, learning or training through Edinburgh Guarantee For All and our funded employability programmes
Encouraging 100 businesses per year to become accredited Real Living Wage employers, through our work with the Edinburgh Living Wage City Action Group
Supporting the launch of new programmes to help businesses thrive in a net zero economy, including proposals for a new Green Innovation Challenge Fund
Establishing a business led Just Transition Economic Forum to convene the city’s business community to provide leadership on the just economic transition to a net zero city.
A new ‘Edinburgh Means Business’ annual conference programme will also be launched by the Council. This will bring together existing business networks and everyone with a stake in the development of Edinburgh’s economy. Convened by the Council Leader, the conference will share latest evidence on the progress of the city economy and delivery of this strategy, celebrate successes and identify challenges for city wide action, and build the networks and relationships needed for a Stronger, Greener, Fairer economy.
Council Leader, Adam McVey said: “There has been a lot of work and collaboration over the past months as we have listened to the valuable insights and data from businesses to deliver a robust plan of actions to support businesses, protect and create jobs. Despite the extreme challenges, this plan continues to progress to ensure a just transition to a net-zero economy and a fairer economy at its heart.
“Through our new business conference programme we’ll be engaging in real and meaningful discussions to help tackle our key challenges as a city while driving practical solutions.
“We hope that through these regular opportunities to come together we can make sure that we work in partnership with business across our Capital to recover and grow our economy in a sustainable, stronger and fairer way for everyone.”
Council Depute Leader, Cammy Day said: “Our refreshed Edinburgh Economic Strategy falls quickly on the back of our city gaining Living Wage City accreditation and stating our ambition to get over 40,000 people out of in-work poverty.
“This was one of the key recommendations of the Edinburgh Poverty Commission, which I co-chaired, and through this strategy we hope to build on existing commitments, tackle the fall out of how the pandemic has changed our business landscapes, while setting out actions to support and collaborate with businesses to radically increase the number of workers who can rely on fair work and real living wages.”
Christine McCaig, Living Wage Projects Coordinator at the Poverty Alliance said:“It’s fantastic that employers from a range of sectors and industries, including the City of Edinburgh Council are working together on Making Edinburgh a Living Wage City, and it is further encouraging to see efforts to increase the number of workers earning at least the real Living Wage embedded in to new economic strategy for Edinburgh.
“The real Living Wage is an important benchmark for decent pay and fair work, which are central to inclusive and thriving local economies.”
Liz McAreavey, Edinburgh Chamber of Commerce Chief Executive, said: “This is a strong and fair vision for the city and establishing an effective public/private collaborative partnership will give us the best chance of delivering a successful economic future for Edinburgh.
“Business engagement and knowledge sharing is critical to making this vision a reality.”
COSLA says urgent action is needed to address the consequences of real term cuts to the core budgets of Scotland’s 32 Councils in recent years.
The call comes as Finance Secretary Kate Forbes prepares to lay out the government’s spending plans in the Scottish Budget on December 9.
COSLA says Local Government can no longer continue to be the ‘poor relation’ it has been in recent Budgets and that December 9 presents a perfect opportunity to reset Scottish public spending in a way that empowers councils to achieve their ambition for our communities.
Speaking at a virtual news conference in Edinburgh, the COSLA President, Councillor Alison Evison, said: “Enabling people to ‘Live Well Locally’ is a shared ambition across Scottish Government and Local Government, but the resources must be provided to deliver this at a local level in line with local democratic choice.
“Sadly cuts to Councils’ core budgets over recent years have not allowed us to fully realise this shared ambition.”
COSLA’s Vice President, Councillor Graham Houston, said: “The fact is that Scotland’s Councils are key to creating the conditions for people within our communities to ‘Live Well Locally’, whether that’s on a remote farm or in a city centre.
“People’s local environment has become even more important during the pandemic and Local Government must be empowered and funded properly to allow us to create the environment for people to ‘Live Well Locally.’ Recovery needs to start locally to tackle the key issues facing our communities and local leadership is needed for that.”
COSLA’s Resources Spokesperson, Councillor Gail Macgregor, added: “Tackling the economic and health challenges created by the pandemic needs a local dimension – all the evidence and research backs this up.
“We fully support Scottish Government’s ambitions around economic transformation but that starts in every community.
“Local Government has been the poor relation of recent Budgets and our local knowledge and links need to be used fully before we are past the point of no return. Our communities are starting to show the neglect of an under-funded Local Government.
“Quite simply, what we need from this Budget is proper funding to provide the everyday services our communities need and deserve.”
Chancellor to set out plans for UK to be the world’s first net zero aligned financial centre, calling for other countries to follow suit
Over $130 trillion – 40% of the world’s financial assets – will now be aligned with the climate goals in the Paris Agreement, thanks to climate commitments from financial services firms
New UK climate finance projects funded from the UK’s international climate finance commitment will help developing countries to fund green growth and adapt to the changing climate
The Chancellor will set out the UK’s plans to become the world’s first net zero aligned financial centre and welcome “historic” climate commitments from private companies covering $130 trillion of financial assets as he hosts Finance Day at COP26 today (3 November 2021).
These commitments will help to create a huge pool of cash that could fund our net zero transition, including the move away from coal, the shift to electric cars, and the planting of more trees.
Convening the largest ever meeting of finance leaders on climate change, Rishi Sunak will set out the UK’s “responsibility to lead the way” and unveil a fresh push to decarbonise our world-leading financial centre.
Under the proposals, there will be new requirements for UK financial institutions and listed companies to publish net zero transition plans that detail how they will adapt and decarbonise as the UK moves towards to a net zero economy by 2050.
To guard against greenwashing, a science-based ‘gold standard’ for transition plans will be drawn up by a new Transition Plan Taskforce, composed of industry and academic leaders, regulators, and civil society groups.
In his opening keynote at Finance Day, Mr Sunak will hail the progress made to “rewire the entire global financial system for net zero” under the UK’s leadership of COP and reveal that over $130 trillion – around 40% of the world’s financial assets – is now being aligned with the climate goals in the Paris Agreement, including limiting global warming to 1.5C.
These commitments come from over 450 firms from all parts of the financial industry, based in 45 countries across six continents, and have been delivered through the Glasgow Financial Alliance for Net Zero (GFANZ), which was launched by the UK to harness the power of the financial sector in the transition to net zero.
The UK has also worked as chair of the G7, and in partnership with other G20 countries, to ensure all economic and financial decisions take the risks of climate change into account. The UK has convened over 30 advanced and developing countries from across 6 continents and representing over 70% of global GDP to back the creation of a new global climate reporting standards by the IFRS Foundation to give investors the information they need to fund net zero.
Celebrating this progress, the Chancellor will urge financial firms to “mobilise private finance quickly and at scale” and call on governments to enact bold climate policies to take advantage of these enormous financial resources.
Reiterating the importance the UK COP Presidency has placed on getting finance to the most vulnerable countries, Mr Sunak will also highlight that the $100 billion climate finance target will be met by 2023 and urge developed countries to boost their support to developing countries – including by helping them tap into the trillions of dollars committed to net zero by the private sector.
The UK will seek to address barriers to finance faced by developing countries with a series of new green initiatives funded from its international climate finance (ICF) commitment, including £100 million to respond to recommendations from the UK co-chaired Taskforce on Access to Climate Finance to make it faster and easier for developing countries to access finance for their climate plans.
In total, the UK will spend £576 million on a package of initiatives to mobilise finance into emerging markets and developing economies, including £66 million to expand the UK’s MOBILIST programme, which helps to develop new investment products which can be listed on public markets and attract different types of investors.
And in a further advance towards the $100 billion goal, the Chancellor will announce the launch of an innovative new financing mechanism – the Climate Investment Funds’ Capital Markets Mechanism (CCMM) – that will boost investment into clean energy like solar and wind power in developing countries.
The UK is already the biggest donor to the multilateral Climate Investment Funds, having contributed £2.5 billion, and will now give the returns from its investments (known as reflows) to CCMM. This new fund will use reflows to help it issue green bonds worth billions of pounds in the City of London – the world’s leading green finance centre – and could leverage an extra $30-70 billion from other sources for specific clean energy projects.
Janine Hirt, Chief Executive Officer, Innovate Finance said:“As the voice of UK FinTech, we passionately support the development of the UK as the first net zero aligned financial centre.
“Net Zero transition will be driven by finance and capital markets and it will be enabled by technology and data. As a leading global centre for financial services and for financial technology and innovation, the UK can and should lead the way in rewiring the entire global financial system for net zero.”
Dr Ben Caldecott, Director, UK Centre for Greening Finance and Investment (CGFI) Chief said:“This is huge. The world’s largest international financial centre will become the world’s first net zero-aligned financial centre.
“This is underpinned by world-leading regulation and the economy-wide adoption of net zero transition plans. This will spur demand for green finance and accelerate decarbonisation, not just in the UK but wherever UK firms do business.
“This will make a real difference and means the UK financial services sector will play an even larger role in providing the capital and financial services required to deliver net zero globally.”
“The UK Centre for Greening Finance and Investment is excited to act as the secretariat, together with E3G, for the new Transition Plan Taskforce to develop a ‘gold standard’ for transition plans and associated cutting edge metrics.
“We are the UK’s national centre established to accelerate the adoption and use of climate and environmental data and analytics by financial institutions internationally.”
Julie Page, Chief Executive Officer, AON said:“We welcome and support the Chancellor’s plans for the UK to be the world’s first net zero aligned financial centre.
“All industries have an important role in helping to achieve this goal and through Aon’s own 2030 net-zero commitment, we will contribute to this historical commitment and help lead the way towards a net zero economy.”
Dr Rhian-Mari Thomas OBE, Chief Executive, Green Finance Institute said:“Today marks the day that green finance has reached a point of critical momentum. The amount of capital committed to the transition to net zero has reached unprecedented levels.
“The task before us now is to come together in radical collaboration to unlock investment opportunities at speed and scale so we can channel this wall of capital into real economy outcomes that not only positions the UK as the world’s first net zero financial centre but also delivers a just and resilient net-zero global economy”
Kay Swinburne, Vice Chair of Financial Services, KPMG UK said:“This announcement will provide the financial services industry with a valuable set of unified metrics to measure progress towards decarbonisation and it is brave to put a gold standard in place for all companies raising funding.
“We’re pleased to see the UK lead by example by not only establishing the GFANZ initiative, but also expanding private sector commitments and supporting a science based approach to reporting standards.”
James Alexander, Chief Executive, UK Sustainable Investment and Finance Association (UKSIF) said:“We warmly welcome the Chancellor’s ambition to make the UK the world’s first net-zero aligned financial services centre.
“As the first major economy to legislate to cut emissions to net zero by 2050, this is a natural step in the UK’s climate leadership journey and recognises the central role of the sustainable finance sector in addressing the climate crisis.
“UKSIF and our members look forward to actively engaging in these next steps, particularly helping to build a shared definition of a good quality transition plan and more broadly a net-zero finance sector.
“Government and regulators should work closely with the financial services industry to identify the policies and actions required to progress our sector towards this world-leading ambition.”
Investing to tackle climate change
The crucial role of private investment in efforts to achieve net zero will be set out by First Minister Nicola Sturgeon later today (Wednesday) as part of Finance Day at COP26.
The First Minister will join the Mayor of London Sadiq Khan at the opening session of a Green Investment Showcase to detail how private investors can help drive the green industries of the future.
The First Minister will emphasise Scotland’s role as a world leader in sustainable industries and highlight the associated investment opportunities that exist, including through Scotland’s Green Investment Portfolio – now valued at £2 billion and which is expected to reach £3 billion in 2022.
The Showcase, hosted by Scottish Enterprise, will be attended by international and UK-based institutional investors, along with climate and clean tech companies seeking investment.
The First Minister said: “COP26 provides what is possibly our best chance to advance the societal and economic change that is demanded by the climate emergency, delivering lasting action towards net zero and a climate-resilient future.
“By grasping the opportunities provided by green industries and supply chains, we can create the good green jobs of the future and secure a just transition away from fossil fuels.
“The role of private capital is fundamental to achieving this and governments must do what they can to channel investment into areas supporting transformational change.
“Through our Green Investment Portfolio, which is already valued at £2 billion, the Scottish Government highlights a range of exciting, commercially assessed investment propositions to investors and showcases businesses in Scotland as world leaders in innovative green industries of the future.”
Mayor of London Sadiq Khan, said: “COP26 is a landmark moment in the fight against climate change. We need to take bold action now or we will face catastrophic consequences in the years to come.
“Climate action and economic growth must go hand in hand – in London I’m investing in green technology which generates good quality jobs, for Londoners and across the UK. Turning the tide on climate change will require record investment and coordinated action from everyone – cities, businesses, governments and communities.
“That’s why I am committed to working with the Scottish Government in pioneering green investment and I’m proud to announce that I will be committing over £30 million in additional funding in London which will help encourage up to £150 million of private investment in low carbon projects and create jobs that will help achieve our 2030 net zero target.”
Finance Secretary Kate Forbes has written to Chancellor of the Exchequer Rishi Sunak calling for additional spending to support households and businesses who are facing a perfect storm of rising prices, reduced support and increasing shortages.
Writing ahead of the UK Autumn Budget and Comprehensive Spending Review, Ms Forbes urged the Chancellor to at least match the Scottish Government’s £500 million Just Transition Fund for the North East and Moray and increase the Scottish Government’s borrowing powers to enable greater investment in decarbonisation schemes.
She also called for an extension of the reduced 12.5% VAT rate for the hospitality sector, which is due to end on 31 March 2022, for a further year, a reversal of the decision not to award the Scottish carbon capture, utilisation and storage project Track-1 status and for the UK Government to “prioritise spending that supports the financial security of low-income households, the wellbeing of children and young people and delivers good, green jobs and fair work.”
The letter states:
Dear Rishi,
I am writing to you in advance of the UK Government announcing the Autumn Budget and Comprehensive Spending Review on 27 October, with a view to constructively progressing the recent dialogue with the Chief Secretary to the Treasury and the First Minister’s meeting with the Prime Minister.
I am conscious that over recent days there has been wide media coverage in relation to Budget and Spending Review content. The reports have contained differing degrees of detail and a lack of clarity on how much of the predicted spend is new. In the absence of direct engagement, I have not reflected this information.
The Scottish Government will work to ensure that our responses to the unprecedented public health, economic and wider challenges presented by Covid deliver for the benefit of all of Scotland. This environment is compounded by the complexity and financial detriment to Scotland of the UK Government’s decision to leave the European Union against the will of the Scottish people, while we continue to work urgently to address the needs of climate change. These challenges will require short and long-term solutions and I set out below how the UK Budget and Spending Review can support priorities in Scotland.
Net Zero
COP 26 in Glasgow will focus international attention on the urgent action needed to tackle the global climate emergency. As outlined in the joint nations letter, and by the UK Climate Change Committee, significant investment is required from the UK Government in reserved areas to meet the Scottish Government’s ambitious emissions reduction targets. Given the requirement for co-ordinated action to address this challenge, it was disappointing that the UK Net Zero Strategy was launched without any meaningful engagement. The UK Net Zero Strategy provides some encouragement in key areas, but overall does not go far enough in many of the critical elements for ensuring the deep decarbonisation that the Scottish Government has repeatedly called for action in.
In Scotland, our climate change targets set their own pace and scale, requiring us to avail ourselves of every lever at our disposal. However, many levers remain at UK level, even where they affect Scotland directly. Following on from our recent meetings, it is worth highlighting again those actions which would most benefit our delivery in relation to funding key climate change commitments:
Removal of the capital borrowing cap, replacing this with a prudential borrowing scheme to help leverage the greater volume of capital investment required;
Agreement that all new spending will reflect the devolution settlement, enabling us to address Scotland’s specific challenges in making the transition to net zero (such as the needs of rural populations);
Meaningful and consistent dialogue between UK Government and Devolved Governments to allow consideration of all relevant input in advance of key green policy and regulatory decisions;
Engagement in relation to the net zero roadmap and other key strategies.
The Scottish Government has committed to working with partners, communities and other stakeholders to take forward a ten-year £500m Just Transition Fund for the North East and Moray. Given the UK Treasury has, over decades, benefited from billions of pounds of revenue from activity in the North Sea, I ask that you at least match our commitment to help secure jobs the North East of Scotland, support the energy transition, and reduce emissions.
There are a number of areas where we need the UK Government to take more action and act faster, including support for carbon capture, utilisation and storage (CCUS). Scotland represents the most cost-effective and deliverable opportunity for CCS in the UK by the mid-2020s. Therefore, the recent UK Government announcement failing to award the Scottish Cluster clear and definitive Track-1 project status as part of your CCUS cluster sequencing process is illogical.
We have previously advised the UK Government that we would help to support the Scottish Cluster, and stand ready to do so. However, we do not hold all the necessary legislative and regulatory levers which are retained by the UK Government. We are therefore calling upon the UK Government to reverse this decision, and accelerate the Scottish Cluster to full Track-1 status without delay.
Health & Social Care
I welcome the approach from UK Government officials to Scottish Government equivalents to form a working group in relation to the implementation of the levy, however this rise will have a notable impact on taxpayers in Scotland. Without necessary investments in supporting low-income households, this regressive approach to revenue generation will further compound the financial hardship many families already face as detailed above.
Whilst the UK Government has provided indications of the consequentials we will receive as a result of this tax rise, I remain concerned that reductions will be made in other areas giving rise to negative consequentials overall, and ask that this is ruled out in the forthcoming Budget and spending review. As part of this, I expect the allocation to devolved administrations will cover the full costs of the levy that will be incurred by our public sector employers including local government.
It is imperative that the UK budget delivers on your commitment to ensure that the NHS receives whatever support it needs throughout this pandemic. While the Health and Social Care Levy will go some way to supporting services, it is clear in particular that this will be insufficient to address the scale of social care pressure and consequent impact on NHS services.
I reiterate my previous call for a comprehensive package of investment, taking the whole health and social care system into account, both in terms of delivery of services and addressing specific Covid-19 pressures. I would also reaffirm the need for increased transparency of UK Government spending arrangements, so that the Scottish Government is clear on the funding that will arise from key programmes such as testing and vaccinations.
As I have previously highlighted, it will continue to be necessary for the UK Government to accommodate flexibility across the UK in these programmes of activity, so that devolved administrations can deploy resources in a manner that best meets spending profiles and specific needs in Scotland.
Recovery from the Combined Impacts of Covid and EU Exit
The Barnett guarantee provided in 2020-21 was a successful demonstration of the benefits of fiscal flexibility. UK fiscal policy and any new fiscal rules should be flexible as well as credible. This is something the Institute for Fiscal Studies has recently advocated to ensure fiscal policy can continue to respond to temporary economic shocks and help ensure fairness across generations. It is essential that the UK Government adopt such an approach.
As I have previously communicated, the Scottish Government is strongly opposed to any return to austerity and strongly urge you to reinstate the £20-per week uplift to Universal Credit. A real cost-of-living crisis is emerging as a result of this cut, combined with the escalating energy costs and upcoming rise in National Insurance Contributions. The Universal Credit cut alone will push an extra 60,000 people in Scotland, including 20,000 children, into poverty and hundreds of thousands more into hardship, whilst also reducing social security expenditure in Scotland by £461m by 2023-24.
I cannot accept that these cuts to individual income, alongside other poverty-inducing policies such as the benefit cap, or the two child limit for child tax credit are justifiable at this time. The UK Budget must prioritise spending that supports the financial security of low-income households, the wellbeing of children and young people, and delivers good, green jobs and fair work.
The choices made by the UK Government following Brexit are contributing to labour and skills shortages in Scotland. As predicted by Scottish Government modelling, severe impacts are disproportionately concentrated on the food and drink sector, particularly seafood, meat and dairy, as well as beverages and textiles. Evidence is mounting, including from BICs and HMRC Regional Trade Statistics to illustrate the detrimental impact on our trading performance, and supporting my call for the UK Government to re-engage in good faith with the EU and find pragmatic solutions to the blockages confronting businesses.
Where these create additional new costs or obstacles, I ask that the UK Budget and Spending Review is transparent about the impact and provides additional financial support to help compensate businesses for the losses incurred as a direct result of EU Exit.
Public Sector Pay
Decisions on public sector pay by the UK Government in this Budget and Spending Review are a material factor in setting pay awards for the public sector workforce in Scotland. Any continuation of the UK Government pay freeze has a material impact on our block grant settlement, within which we must balance reward and affordability. Public sector pay awards must be progressive, fair and allow valued workers to maintain their standard of living, as they continue to deliver the strong and innovative public services our people deserve.
Capital Investment
There is much common ground between UK and Scottish Government infrastructure priorities in delivering our net zero targets, delivering new jobs and securing Covid recovery. However, our economic recovery could be damaged if this spend is not prioritised and committed within the UK Budget. The decision taken by the UK Government to disburse the Levelling-Up Fund directly across the UK, despite previous commitments otherwise, impacts on the level of devolved funding available to the Scottish Government for Scotland.
To help achieve our Net Zero aims and grow our economy, I would welcome your assurance that the Scottish Government will receive a fair share of future years’ Capital and Financial Transactions allocations; that the gap in the Scottish Budget resulting from the change in approach to the Levelling Up Fund will be filled and that there will be appropriate governance arrangements for the UK Infrastructure Bank and other partnerships or funding routes to ensure that all interested parties have an appropriate ability to influence and control spend in the relevant areas of the UK.
VAT
I believe that the UK Government must make responsible tax policy decisions that will support the sectors and businesses economy throughout this challenging period, and I welcome measures taken on VAT to date. However, I am convinced that the increase in VAT from 1 October comes too soon.
This will affect many businesses that have been hit hardest by the Covid pandemic, potentially leading to their closure and therefore slowing the economic recovery in Scotland. It is vital that the UK Government takes account of the needs of all parts of the UK when deciding how best to support the recovery through its taxation levers, and I urge you to consider extending the reduced rate of VAT for the next financial year.
Air Passenger Duty
As you will be aware, the Scottish Government has a strong interest in the UK Government’s consideration of next steps for Air Passenger Duty following this year’s consultation on aviation tax reform. We accordingly asked to be fully consulted on any decisions before they are made, to ensure that any implications for devolution and the interests of Scotland are taken fully into account.
In that regard, it is concerning to see that the media appears to have been briefed on those decisions, without any discussion with the Scottish Government having occurred. Moving forwards, I would welcome your full commitment to meaningful dialogue on this, and indeed on all relevant tax matters, in advance of media briefings.
Replacement of EU Funding
In common with my counterparts in the Devolved Administrations, I expect full replacement of EU funds to ensure no detriment to Scotland’s finances, and I expect the UK Government to fully respect the devolution settlement in any future arrangements.
The current approach to the replacement of and participation in EU programmes leaves Scotland worse off. The ability to undertake long-term strategic planning has been significantly undermined as the flexible seven-year multi-annual funding mechanisms of EU funding are being replaced by annually managed allocations. Furthermore, the proposed methodology for determining farm funding allocations effectively penalises the use of the remaining flexibilities from legacy funding. I have written to you jointly with other finance ministers from the Devolved Administrations in order to express our concerns about this methodology and our expectations regarding future allocations.
With regards to fisheries, I consider the existing settlement to be vastly insufficient, given past underfunding and the significant impacts of Brexit on the sector. We provided clear evidence for a multi-year £62m allocation for Scottish fisheries, as opposed £14m allocation we received in the 20/21 Spending Review. Additionally, it appears that the yearly £5.5m top up which was previously provided to Scotland on the basis that the EU EMFF allocation was insufficient will no longer continue, increasing an already significant funding shortfall.
This process seems to mirror our experience with the Bew review, where commitments made in 20/21 are then being downgraded within the life of this parliament. In the case of the Bew review, this was to agree a process of engagement ahead of the upcoming Spending Review to address the issue of Bew funding from 2022/23 onwards. While the initial recommendations of the Bew review have been met, the proposed funding does not include any additional budget cover beyond 2021-22. This leaves Scotland in the same position as in 2019 where the inequality in distribution of land remains an issue.
Further discussions need to take place on the principle of intra-UK allocations in line with the wider observations of the Bew review. In the absence of such a review we would expect at least the £25.7m funding to continue beyond 2021-22 to address the funding inequality included in the previous ceiling levels. A failure to do so would result in a cut of £77.1m in our budget up to 2025. I require assurance that the UK Budget and Spending Review will redress these issues to ensure no detriment to Scotland’s finances.
Internal Market Act
The financial assistance powers in the Internal Market Act (IMA) confer new powers on UK ministers to spend directly in a wide range of devolved matters, bypassing parliamentary scrutiny and accountability at Holyrood. This also, in effect, gives the UK Government the power to bypass the Barnett Formula. Aside from being a profound departure from the existing devolution settlement, it introduces considerable additional uncertainty to future devolved funding and fundamentally alters the devolution landscape.
I ask for assurance that the powers will not be used without the prior consent of the Devolved Governments, and for clarity on how decisions on use of IMA financial assistance powers will be made, and under what circumstances. Without this it is difficult to see how the principles of consent, transparency, and stability and predictability espoused in the Statement of Funding Policy can be met. Moreover, it risks poor value for money as a result of incoherent policy and disjointed spending decisions.
As a minimum I would ask that the forthcoming spending review set out details on any plans to spend under the IMA over the course of the period (and beyond where known), and that the implications for devolved funding arrangements and decision-making are addressed in the planned update to the Statement of Funding Policy.
I trust that you will consider the suggestions made above and that we can work collaboratively to address the matters raised in order to provide certainty to the wider public sector, boost the economy and support our most vulnerable at this challenging time.
Up to 4,000 people will be trained as new HGV drivers to help tackle skills shortages and support more people to launch careers within the logistics sector.
Package of measures includes using MOD examiners to help increase immediate HGV testing capacity by thousands over the next 12 weeks.
Nearly 1 million letters to be sent to all drivers who currently hold an HGV driving licence, encouraging them back into the industry.
5,000 HGV drivers and 5,500 poultry workers added to existing visa scheme until Christmas 2021 to ease supply chain pressures in food and haulage industries during exceptional circumstances this year.
The UK Government is taking belated action to tackle the shortage of HGV drivers. Industry leaders have warned the government of an impending crisis since before Brexit.
Up to 4,000 people will soon be able to take advantage of training courses to become HGV drivers, as part of a package of measures announced yesterday by the government to ease temporary supply chain pressures in food haulage industries, brought on by the pandemic and the global economy rebounding around the world.
The Department for Education is investing up to £10 million to create new skills bootcamps to train up to 3,000 more people to become HGV drivers. The free, short, intensive courses will train drivers to be road ready and gain a category C or category C&E licence, helping to tackle the current HGV driver shortage.
An additional 1,000 people are expected to be trained through courses accessed locally and funded by the government’s adult education budget.
Fuel tanker drivers need additional safety qualifications, which the government will work with industry to ensure drivers can access as quickly as possible.
To help make sure new drivers can be road ready as quickly as possible, the Department for Transport (DfT) have also agreed to work with Driver and Vehicles Standards Agency (DVSA) to ensure that tests will be available for participants who have completed training courses as soon as possible.
The Ministry of Defence (MOD) has also announced the immediate deployment of their Defence Driving Examiners (DDEs) to increase the country’s testing capacity. MOD examiners will work alongside DVSA examiners, providing thousands of extra tests over the next 12 weeks.
The letter, which will arrive on doormats over the coming days, sets out that the steps the road haulage sector is taking to improve the industry, including increased wages, flexible working and fixed hours.
Alongside this, 5,000 HGV drivers will be able to come to the UK for 3 months in the run-up to Christmas, providing short-term relief for the haulage industry. A further 5,500 visas for poultry workers will also be made available for the same short period, to avoid any potential further pressures on the food industry during this exceptional period.
Recruitment for additional short-term HGV drivers and poultry workers will begin in October and these visas will be valid until 24 December 2021. UK Visas and Immigration (UKVI) are preparing to process the required visa applications, once made, in a timely manner.
However, we want to see employers make long term investments in the UK domestic workforce instead of relying on labour to build a high-wage, high-skill economy.
Visas will not be the long term solution, and reform within the industry is vital. That’s why the government continues to support the industry in solving this issue in the long term through improved testing and hiring, with better pay, working conditions and diversity.
Transport Secretary Grant Shapps said: This package of measures builds on the important work we have already done to ease this global crisis in the UK, and this government continues to do everything we can to help the haulage and food industries contend with the HGV driver shortage.
“We are acting now but the industries must also play their part with working conditions continuing to improve and the deserved salary increases continuing to be maintained in order for companies to retain new drivers.
“After a very difficult 18 months, I know how important this Christmas is for all of us and that’s why we’re taking these steps at the earliest opportunity to ensure preparations remain on track.”
Separately, the government is also bringing in legislation to allow delegated driving examiners at the three emergency services and the MOD to be able to conduct driving tests for one another. This will give the emergency services greater flexibility and help increase the number of tests DVSA examiners can provide HGV examiners.
The government will also provide funding for both medical and HGV licences for any adult who completes an HGV driving qualification accessed through the Adult Education Budget in academic year 2021/22.
Previously, adults who took these qualifications had to pay for their own licences. This change will be backdated and applied to anyone who started one of these qualifications on or after August 1st 2021.
Education Secretary Nadhim Zahawi said: “HGV drivers keep this country running. We are taking action to tackle the shortage of drivers by removing barriers to help more people to launch new well-paid careers in the industry, supporting thousands to get the training they need to be road ready.
“As we build back from the pandemic we’re committed to supporting people, no matter their background, to get the skills and training they need to get good jobs at any stage of their lives, while creating the talent pipeline businesses need for the future.”
Environment Secretary George Eustice said: “It is a top priority to ensure that there are enough workers across the country’s supply chains to make sure they remain strong and resilient.
“We have listened to concerns from the sector and we are acting to alleviate what is a very tight labour market.”
The government has been able to bring forward these solutions in response to a global issue made worse by coronavirus thanks to our existing work in this area. We have already taken a range of steps to support the industry, including streamlining the process for new HGV drivers and increasing the number of driving tests. Our measures provided a rapid increase in capacity and allow for an extra 50,000 tests to take place per year.
Progress has already been made in testing and hiring, with improving pay, working conditions and diversity. We continue to closely monitor labour supply and work with sector leaders to understand how we can best ease particular pinch points. Through our Plan for Jobs we’re helping people across the UK retrain, build new skills and get back into work.
The Food and Drink Federation’s Chief Executive, Ian Wright CBE, said: “We welcome the government’s pragmatic decision to temporarily add HGV drivers and poultry workers to the existing visa scheme.
“This is something UK food and drink manufacturers have asked for over the last few months – including in industry’s Grant Thornton report – to alleviate some of the pressure labour shortages have placed on the food supply chain.
“This is a start but we need the government to continue to collaborate with industry and seek additional long term solutions.”
Elizabeth de Jong, Logistics UK’s Director of Policy, said: “Logistics UK welcomes the government package of measures aimed at improving the ongoing driver crisis. The government’s decision to grant 5,000 temporary visas for HGV drivers to help in the short term is a huge step forward; we are so pleased the government has listened to our calls and has made this bold decision to support the UK economy.
“We are also delighted that DfT have agreed to jointly send nearly 1 million letters to all drivers who currently hold an HGV driving licence. With fantastic HGV driving opportunities available in the logistics industry, now is the perfect time to consider returning to the occupation.”
The Road Haulage Association says there is a shortage of around 100,000 drivers across the UK, with this particularly impacting the food and drink supply chain.
The Road Haulage Association’s Rod McKenzie said: “This is a major win for @RHANews in our long campaign on #lorrydriver shortage – but temp visas won’t solve it. Much more needs to be done on training, apprenticeships, testing and welfare facilities for truckers.”
British Chamber of Commerce President, Baroness Ruby McGregor-Smith CBE said:“Government has made clear its priority is to transition from a reliance on EU workers to a focus on the domestic workforce, and businesses have been ready to participate in this, but it is a long-term project.
“A managed transition, with a plan agreed between government and business, should have been in place from the outset. Instead, the supply of EU labour was turned off with no clear roadmap as to how this transition would be managed without disruption to services and supply chains.
“Now some action has been taken, but additional testing will take time and the low number of visas offered is insufficient. Even if these short-term opportunities attract the maximum amount of people allowed under the scheme, it will not be enough to address the scale of the problem that has now developed in our supply chains.
“This announcement is the equivalent of throwing a thimble of water on a bonfire.
“Government should be prepared to significantly expand the number of visas issued within this scheme and convene a summit that brings business and government together to find both immediate and longer-term solutions to the many challenges facing firms throughout the UK.
“Without further action, we now face the very real prospect of serious damage to our economic recovery, stifled growth as well as another less than happy Christmas for many businesses and their customers across the country.”
Hannah Essex, Co-Executive Director of the British Chambers of Commerce, said:“Chambers of Commerce have been warning Government about critical labour shortages for months now – not just in the food and haulage industries but in hospitality, construction, the care sector and elsewhere in the economy. Whilst businesses will welcome that government is finally taking action, this scheme does not go far enough.
“BCC data has shown that 76% of hospitality businesses, and 82% of construction firms have faced recruitment difficulties in recent months. At the same time, we found 3 out of 4 exporters reporting no growth in sales in Q2.
“Businesses are facing the most difficult environment for a generation. On top of labour shortages – border delays, increased debt and the rising cost of materials, shipping and energy are all putting huge pressure on firms struggling to recover from the pandemic. All of these issues are hitting smaller firms the hardest.
“Attempts to address the deficit of HGV drivers and poultry workers is a step forward, but these industries are only the tip of the iceberg when it comes to the huge impact of the current labour shortages. Without a comprehensive plan to tackle this issue across the board we are facing a winter of lost opportunities for our businesses, hampering the UK’s economic recovery.”
NEW POLLING reveals the extent to which low-paid workers have borne the brunt of the pandemic
NEW POLLING reveals the extent to which low-paid workers have borne the brunt of the pandemic
TUC analysis shows three industries furthest away from recovery are all low-paid and have highest rates of furlough use
TUC warns the end of furlough and Universal Credit cut will be a hammer blow for low-paid workers
Union body says without an economic reset post-pandemic the government’s levelling up agenda will be “doomed to failure”
The coronavirus crisis has been “a tale of two pandemics”, the TUC said today as it calls for an urgent “economic reset” to tackle the huge class divide in Britain that has been exposed by the pandemic.
The call comes as the union body publishes new polling which shows how low-income workers have borne the brunt of the pandemic with little or no option to work from home, no or low sick pay and reduced living standards, while better-off workers have enjoyed greater flexibility with work, financial stability and increased spending power.
Pandemic class divide
New TUC polling, conducted by Britain Thinks, has revealed the extent of the pandemic class divide with the high-paid more financially comfortable than before, while the low-paid have been thrust into financial difficulty:
Low-paid workers (those earning less than £15,000) are almost twice as likely as high-paid workers (those earning more than £50,000) to say they have cut back on spending since the pandemic began (28 per cent compared to 16 per cent)
High earners are more than three times likely than low-paid workers to expect to receive a pay rise in the next 12 months (37 per cent compared to 12 per cent).
This Covid class divide isn’t just apparent on personal finances. The polling also shows how low-paid workers are markedly more likely to get low or no sick pay compared to higher earners:
Low-paid workers are four times more likely than high-paid workers to say they cannot afford to take time off work when sick (24 per cent compared to six per cent).
Only a third (35 per cent) of low-paid workers say they get full pay when off sick compared to an overwhelming majority of high-paid workers (80 per cent)
The TUC has long been calling for an increase to statutory sick pay, which stands at a derisory £96.35 a week, and from which more than two million low-paid workers – mostly women – are currently excluded because they do not earn enough to qualify.
The union body recently criticised the government decision to “abandon” these two million workers by failing to expand eligibility of sick pay, as they had previously promised.
This lack of decent sick pay is compounded by the fact that low-paid workers are more than three times more likely than high-paid workers to say they their job means they can only work outside the home (74 per cent compared to 20 per cent).
This means that low-paid workers face greater risk of contracting the virus at work, and when ill, often face the impossible choice of doing the right thing but losing income or keeping full pay but potentially spreading the virus.
Low-paid industries lag
New TUC analysis shows that the three industries furthest away from a jobs recovery – arts and entertainment, accommodation and food and ‘other services’ – are all ‘low paid’ industries.
These are also the three industries with the highest furlough rates according to HMRC stats, and three of the highest according to most recent ONS estimate.
The end of furlough poses a serious threat to low-paid jobs in these industries – and combined with the “senseless” Universal Credit cut – will be a hammer blow for low-paid workers and push many further into hardship, the union body says.
Time for an economic reset
The TUC says its analysis and poll findings paint a picture of stark inequality in the UK, which has been further entrenched through the coronavirus crisis, and show that the country needs an urgent “economic reset” post-pandemic.
The union body warns that without such a reset, the government’s levelling up agenda will be “doomed to failure” as ministers risk repeating the same mistakes which followed the financial crisis, allowing insecure work to spiral even further.
To prevent unnecessary hardship in the coming months, the TUC is calling on the government to:
Extend the furlough scheme for as long as is needed to protect jobs and livelihoods and put in place a permanent short-time working scheme to protect workers at times of economic change
Cancel the planned £20 cut to Universal Credit
And as part of a post-pandemic reset, the TUC says ministers must:
Ban zero hours contracts
Raise the minimum wage immediately to at least £10
Increase statutory sick pay to a real Living Wage and make it available to all
Introduce new rights for workers to bargain for better pay and conditions through their unions
TUC General Secretary Frances O’Grady said: “Everyone deserves dignity at work and a job they can build a life on. But too many working people – often key workers – are struggling to pay the bills and put food on the table.
“It has been a tale of two pandemics. This Covid class divide has seen low-paid workers bear the brunt of the pandemic, while the better off have enjoyed greater financial security, often getting richer.
“This should be a wake up call – we need an economic reset. It’s time for a new age of dignity and security at work.
“Without fundamental change, the government’s own levelling up agenda will be doomed to failure. And we risk repeating the same old mistakes of the past decade – allowing insecure work to spiral even further.
“Ministers must start by banning zero-hours contracts, raising the minimum wage with immediate effect and increasing statutory sick pay to a real Living Wage, making it available to all.
“And we know that the best way for workers to win better pay and conditions at work is through their union.”
On the risk to low-paid workers this autumn, Frances said: “The imminent end to the furlough scheme and cut to Universal Credit this autumn will be a hammer blow for low-paid workers and could plunge millions into hardship, many of whom are already teetering on the edge.
“The government must reverse its senseless decision to cut Universal Credit and extend the furlough scheme for as long as is needed to protect jobs and livelihoods.”
Citizens, businesses, and organisations across South East Scotland have helped shape a major consultation on the region’s economic future.
The Regional Prosperity Framework (PDF, 2.59MB) highlights the need to tackle inequalities and climate change, and to prioritise well-being and quality of life alongside economic growth.
The consultation took place over the summer, with public, private and third sector organisations providing their views on issues including transport and housing, education and digital inclusion.
Welcoming the Joint Prosperity Plan, City of Edinburgh council leader CllrAdam McVey said: “Edinburgh and South East Scotland is a central driver of the Scottish economy. It is essential that we use our economic success to deliver on our policies for fair work, provide opportunities to all citizens and communities and support people’s well-being.
“The Regional Prosperity Framework has been developed with input from public, private and third sector organisations and local communities and sets out our collective ambition to combine economic and social success with protecting the planet. We will work together as a region to meet that ambition.”
Garry Clark, Federation of Small Businesses Development Manager for the East of Scotland, said: “For small businesses across the Lothians, Fife and the Borders, the Regional Prosperity Framework represents an important touchstone for the collective economic ambition of the region.
“They will welcome the commitment to fostering and supporting business creation and growth and the recognition of the role that businesses play, not only in our economic prosperity, but also in social and community wellbeing.”
Cllr David Ross, Fife Council’s Co-Leader and Joint Committee Chair for the Edinburgh and South East Scotland City Region Deal, said: “This document sets out long-term aspirations for the region and informs policy development for the next 20 years.
“It has been developed with input from public, private and third sector organisations and aims to address the region’s challenges and opportunities to make Edinburgh and South East Scotland a better place to live, work, study, visit and invest for current and future generations.
“It is focused on tackling the important and pressing challenges of climate change, sustainability, biodiversity loss, inequalities, health and well-being, job creation and achieving a net zero economy.”
The Framework focuses on addressing inequalities and the challenges of creating new jobs and businesses while enabling a transition to a net zero carbon economy.
It does this through a commitment to actions that will deliver a more prosperous, innovative and resilient regional economy.
Other plans include making employment, training and education more accessible through better connected and sustainable transport.
Data-Driven Innovation is also set to play a vital role in strengthening the region’s innovation ecosystem to support organisations, irrespective of where they are based. This will bring the region a step closer to becoming the data capital of Europe.
Another priority is creating ‘twenty minute neighbourhoods’, where residents have closer access to everyday goods, services and amenities. These include seven sites at Blindwells, Edinburgh’s Waterfront, Dunfermline, Shawfair, Winchburgh, Calderwood and Tweedbank.
The Framework builds on, and widens, the partnerships developed through the City Region Deal, paving the way for further collaboration through regional economic plans with shared outcomes, responsibilities, and aligned priorities and resources.
Bank of Scotland’s Business Barometer for August 2021 shows:
Scottish business confidence rises six points in August to 34%
Firms’ hiring intentions jump 13 points with 34% planning to create jobs in the next 12 months
Overall UK business confidence reaches 36% – the highest reading since May 2018 – as all regions and nations report positive confidence levels
Business confidence in Scotland rose six points during August to 34%, according to the latest Business Barometer from Bank of Scotland Commercial Banking.
The full easing of lockdown restrictions in Scotland in August was a clear boost for businesses, with overall confidence in the economy also rising by 20 points to 43%.
Companies in Scotland reported marginally lower confidence in their own business prospects month-on-month, down eight points at 25%. When taken alongside their optimism in the economy, this gives a headline confidence reading of 34%.
The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.
A net balance of 20% of businesses in Scotland expect to increase staff levels over the next year, up seven points on last month.
Overall UK business confidence rose six points in August, reaching 36%, the highest level recorded since May 2018. When asked about their overall trading prospects businesses reported a six-point increase on July’s reading at 34% and firms’ confidence in the economy also increased six points to 39%.
All UK nations and regions had a positive confidence reading in August. The most confident regions were the North West (64%), North East (46%) and London (41%). All bar three areas reported a growth in confidence in August, with the East Midlands (down 10 points to 28%), West Midlands (down three points to 27%) and Yorkshire and Humber (down two points to 26%) reporting marginal falls.
Fraser Sime, regional director for Scotland at Bank of Scotland Commercial Banking, said: “With most of the Covid-19 restrictions easing in August, businesses across Scotland were able to return to normal trading for the first time in 18 months and are feeling optimistic about what this means for the economy.
“With confidence on the up and even more firms are now planning on making new hires, the country is taking great steps towards recovery and growth. We’ll continue to support businesses through the coming months as they aim to capitalise on this positive momentum.”
In sector terms, there was notable strength in sectors benefiting from the further easing of Covid restrictions. Services confidence saw the greatest month-on-month increase, rising by 8 points to 36%, the highest level since January 2018.
Confidence in both manufacturing and construction also picked up (both up 7 points to 40%), led by rises in trading prospects for the year ahead.
The increase in manufacturing confidence came despite ongoing supply disruptions, although the level remains below the high in May. Retail confidence posted a smaller 2-point rise to 34%, remaining below the recent peak in May.
Gareth Oakley, Managing Director for Business Banking, Lloyds Bank, said: “Since the start of the year business confidence has been increasing, and August has been a particularly strong month. Many of the regions have seen significant upticks in confidence and it’s encouraging that Northern Ireland has moved back into positive territory.
“It is clear there is still some level of uncertainty on inflation and the impact of price pressures, but with further boosts to confidence in the services, manufacturing and construction sectors we can be hopeful that demand across all sectors will drive consumption throughout the rest of the year. The last few months of the year will be pivotal to the future of UK economic growth and we remain by the side of businesses as the country continues to reopen.”
Hann-Ju Ho, Senior Economist Lloyds Bank Commercial Banking, said:“Business confidence reaching its highest level in over four years tells a positive story about the country’s economic recovery.
“This confidence is driven by the continued success of the vaccine ollout, the removal of lockdown restrictions and adjustments to self-isolation rules.
“Staff shortages remain a challenge, but as the economy moves back towards pre-pandemic levels we can be optimistic that the momentum for business confidence and economic optimism can be sustained in the months ahead.”
