Work to establish a Scottish National Investment Bank took a step forward today with the launch of a public consultation on the details of the Bank’s operation. Continue reading First Minister launches consultation on Scottish National Investment Bank
Keith Brown: ‘Ambitious’ city deal will deliver opportunities across Edinburgh, the Lothians, Fife and the Borders.
Continue reading ‘Ambitious’ City Deal to bring 21,000 jobs to Edinburgh
Scotland’s economy has returned to growth. Latest figures show an encouraging 0.8% growth in the first quarter of 2017. This improvement follows two periods of decline which some economists believed would result in Scotland moving into recession. Politicians from both sides of the border have welcomed the figures – but Holyrood and Westminster have different interpretations as to why the Scottish economy is showing signs of improvement. Continue reading Scottish economy bouncing back?
Plans by Australian financial services company Computershare to open a new technology centre of excellence in Edinburgh, creating 300 jobs, have been welcomed by First Minister Nicola Sturgeon.
The company secured a £2 million grant from Scottish Enterprise and has worked closely with Scottish Development International (SDI) to develop the project.
The expansion plans were announced on the same day SDI annual results were published, which showed 7,839 jobs were secured in Scotland through new and existing investors – an increase of 10% on the previous year.
The First Minister visited Computershare’s new office in the city centre which is being fully refurbished and will open next year. She said: “This announcement, with the creation of 300 highly skilled technology jobs and investment in the city centre, is fantastic news for Edinburgh’s economy.
“Scotland is open for business and continues to be a very attractive location for investment, as evidenced by the recent EY Attractiveness survey, which noted that Scotland was the top UK location for foreign direct investment outside London for the fifth consecutive year.
“Together with the inward investment figures published by SDI, this offers further evidence that we have the skills and expertise to attract and retain global companies like Computershare.”
Stuart Irving, global President and CEO of Computershare said: “As a truly international capital city, Edinburgh has a bright future and is a natural home for a global company. As a growing business we need the skills and hard work we see on offer in this city.
“We are grateful to the Scottish Government, Scottish Enterprise and Scottish Development International for helping us with our plans and are looking forward to our continued partnership.”
Neil Francis, operations director at SDI, said: “When a company like Computershare chooses to invest in Scotland, it sends a message to the rest of the world that Scotland is a first-class destination.
“We have a clear focus on winning the right kind of investment for Scotland – which is secured because of our skills base, science and research excellence and our connected business infrastructure, and this investment by Computershare is an example of this.
“We’re thrilled to have secured these new jobs for Edinburgh; it’s a ringing endorsement of our offering to international investors and we look forward to working with the Computershare team to help them fulfil their growth ambitions in Scotland.”
Computershare was founded in Melbourne in 1978 and its existing Edinburgh operation was established in 1998, serving locally-based clients and those further afield. From its current base in Edinburgh Park, the company provides relationship management and registry services to around 150 listed companies – from FTSE100 to AIM – many of whom are registered in Scotland.
The UK’s weak economic outlook and the UK Government’s austerity policies will hit low income family incomes hardest, according to Scottish Finance Minister Derek Mackay.
Analysis by the Institute for Fiscal Studies (IFS) shows that as a result of this slowdown, by 2021 incomes across the UK will still be lower than they were in 2008. That implies 13 years without any growth in real wages – the longest period of stagnant wages since World War II.
Meanwhile, the Office of Budgetary Responsibility (OBR) has set out the detrimental impact that Brexit and the UK Government’s approach to the negotiations is having on the economy. They expect that the uncertainty generated will lead to investment being postponed or cancelled; higher inflation squeezing households’ real incomes; and that trade with the EU will be reduced.
Analysis of the Chancellor’s Autumn Statement has also shown that the measures he announced will do little to offset the cuts to social security already put in place by the UK Government. For example, the Resolution Foundation estimate that a dual earning family with three children on low incomes will still be £3,650 worse off by 2020 as a result of the changes to the economic outlook and policy measures being introduced in this parliament. Likewise, they expect some lone parents to be up to £2,640 a year worse off.
Mr Mackay said: “Brexit has blown a huge hole in the UK economy – and the Chancellor’s Autumn Statement is an admission of that. With real wages forecast to still be lower in 2021 than they were prior to the financial crisis, Brexit is driving a decline that will be felt for generations.
“Meanwhile, the OBR has said that leaving Europe will create a £58 billion hole in the public finances, and unfortunately it’s families that are having to pick up the tab.
“Scotland did not vote for Brexit yet this renewed economic squeeze is going to hit hard-working families here who are already struggling to make ends meet.
“The tax and welfare reforms being introduced by the UK Government during this parliament are highly regressive, with those on the lowest incomes seeing the largest losses in both cash terms and as a share of their incomes.
“And I am deeply worried by reports that UK changes to tax and welfare through to 2020 will result in the poorest families with children seeing their incomes fall by up to £3,300 according to the IFS – that is a cut of nearly 18%. But we have seen no reversal on the UK Government’s damaging austerity agenda – in fact the Joseph Rowntree Foundation has highlighted that changes to universal credit are dwarfed by the existing UK cuts to social security.
“The Scottish Government, in contrast, is taking a very different approach to growing our economy, building a fairer welfare system and protecting our relationship with Europe. I was disappointed to see the Chancellor failing once again to commit to the single market instead pandering to the hard-Brexit agenda that is damaging our economy.
“I look forward to publishing the Scottish Draft Budget next month that will support our economy, tackle inequality and provide high quality public services for all – underlining once again the stark contrast between our two governments.
“Our overriding focus must now be on safeguarding Scotland’s place in Europe and continued membership of the single market, to protect us from the disastrous economic impact of Brexit, which is becoming clearer by the day.”
First Minister Nicola Sturgeon has announced measures to support and stimulate the economy in the wake of the EU referendum.
Capital spending on projects to support and create employment will be accelerated, starting with an additional £100 million of funding in this financial year. The capital funding will be used to speed up delivery of health and other infrastructure projects.
Projects will be assessed for accelerated funding against a range of criteria including how quickly work can start, the number of jobs that will be supported or created, the likely impact on the supply chain and geographic spread.
The Scottish Government will also set up a new dedicated service to provide information and support to businesses affected by the EU referendum, while a new Post-Referendum Business Network will work closely with the main business bodies, the STUC and the Scotland Office.
The plans were announced at the Golden Jubilee which will receive an extra £5 million to bring expansion of its elective centre forward from 2018-19 to this year.
Further details of the Capital Acceleration Programme, including the projects to be supported by the initial £100 million of additional funding and details of funding for future years, will be announced in due course.
The First Minister also called on the UK Government to give early certainty about EU Structural Funds and to urgently announce its own economic stimulus package, which would enable the Scottish Government to do even more to accelerate capital spending.
The First Minister said: “As I have made clear since the EU referendum, the Scottish Government will pursue all possible options to protect Scotland’s relationship with the EU and ensure that our voice is heard.
“However, it is also important to act now to support and stimulate the economy.
“Scotland is and remains an attractive and stable place to do business – however, there is no doubt that the referendum outcome has created deep and widespread uncertainty, with the impact on jobs and investment already being felt.
“The UK Government has not yet taken any meaningful action to alleviate uncertainty or to boost confidence.
“Scotland is and remains an attractive and stable place to do business – however, there is no doubt that the referendum outcome has created deep and widespread uncertainty, with the impact on jobs and investment already being felt.
“The UK Government has not yet taken any meaningful action to alleviate uncertainty or to boost confidence, and there are very real concerns that the damage to the economy and to jobs will be severe and long lasting.
“It is against this background that the Scottish Government is announcing early action to boost confidence, stimulate economic activity and support business.
“Our Infrastructure Investment Plan is already delivering major infrastructure improvements, with projects worth almost £6 billion currently under construction – we will now inject a further £100 million of spending this year to accelerate planned projects.
“We will also provide business with wider support to help them navigate the uncertainty caused by the referendum result. Business organisations have asked for a single point of contact and we will shortly launch a new Business Information Service that will provide up-to-date information and advice, and answer questions from individual businesses, going some way to alleviate business concerns about the future.
“We will also establish a new Post-Referendum Business Network, to work more closely and collaboratively with the main business bodies, the STUC and the Scotland Office to help shape future policy and support for business.
“These three initial measures will help support new and existing jobs and alleviate business concerns at this difficult time.
“However, it is important that the UK government also acts and I am calling today for urgent action on two fronts – firstly, early assurance about EU Structural Funds and, second, a UK wide stimulus package which, through consequential funding, would enable the Scottish Government to do more to accelerate capital spending.”
The STUC has welcomed the announcement. STUC General Secretary Grahame Smith said: “The STUC strongly endorses the approach set out by the First Minister today. The Scottish economy, already weak due to the downturn in the oil and gas sector, risks falling into technical recession as a result of Brexit induced uncertainty. In this context it is important that the Scottish Government accelerates capital projects where feasible in order to support employment.
“The First Minister is also entirely justified in calling on the UK Government to act swiftly to help minimise the economic consequences of their calamitous handling of the referendum and its aftermath. With borrowing costs at a historic low, now is the time to invest to support jobs in the present and increase the economy’s capacity to grow sustainably in the future.
“The STUC looks forward to making a positive contribution as a member of the new Post Referendum Business Network.”
Employers organisation CBI Scotland also welcomed the infrastructure investment. Hugh Aitken, CBI Scotland Director, said: “We welcome the Scottish Government’s commitment to boosting growth through infrastructure spending and look forward to seeing more details.
“Progress on the Glasgow airport link, together with improvements to the A82, A96 and A9 are projects previously identified by businesses as vital, alongside advances in digital infrastructure.
“Firms will also be encouraged by the Scottish Government’s pledge to work closely with the Scotland Office as it engages with firms following the EU Referendum.
“Our members stand ready to work alongside both the Scottish and the UK Governments as companies seek clarity on trade, regulation, access to talent and protection for the economic and social benefits of EU funded projects.
“As options for the future take shape, it will be more important than ever for both governments to partner with businesses in navigating their approach.”
Opposition parties do not believe the stimulus is enough, however. Scotland Secretary David Mundell said Ms Sturgeon should rule out a second independence referendum to restore business confidence, while Labour’s Jackie Baillie said the £100 million commitment ‘feels like a drop in the ocean‘.
Scottish Labour Economy spokesperson Jackie Baillie said: “It is welcome that the First Minister has agreed with Labour’s calls to bring forward infrastructure spending to stimulate the economy, although the SNP could be much bolder with this investment.
“For context the SNP announced £100 million today – the Queen Elizabeth University Hospital in Glasgow cost £850 million and the Queensferry Crossing will cost over £1 billion. Any investment is welcome but this feels like a drop in the ocean.
“Labour outlined a series of policies in our Brexit Action Plan two weeks ago including the establishment of a Brexit support fund for at risk sectors. The SNP Government should adopt this Labour policy to give support to key industries.
“Today’s announcement must be only the start of the increased investment. Nicola Sturgeon must stop the cuts her government is imposing on public services in Scotland. The SNP Government is cutting hundreds of millions of pounds from schools and local services, our police force is facing cuts and our health boards are tens of millions in the red. It is not sustainable. Any post-Brexit stimulus from both the SNP and Tory Governments must include an end to austerity.
“Labour will continue to make the case to use the new tax powers of the Scottish Parliament to invest in our economy and stop the cuts to public services. The recent interventions from senior SNP figures like Kenny MacAskill show that a debate about tax is very much back on the agenda.”
You can read Labour’s Post Brexit Action Plan here
Unemployment in Scotland fell by 18,000 in the period March to May, and now stands at 152,000, according to data released today. Continue reading Jobless figures down but economy flat, latest figures reveal
Yesterdays’ Budget statement was a perplexing mix of measures and raft of tax changes which pleased some and angered many more. Supporters hailed the budget as ‘historic’ but Labour leader Jeremy Corbin said the budget ‘has unfairness at its very core – paid for by those who can least afford it’ and the SNP’s John Swinney warned of ‘hidden cuts’. Continue reading Budget: sweet and sour for Scotland
Swinney condemns ‘austerity of choice’
Chancellor George Osborne’s U-turn on tax credits has been widely welcomed, but Scotland’s Deputy First Minister John Swinney has warned that the Scottish Government will see a real terms reduction of almost 6 per cent in the funding for day to day public services over the next four years. Continue reading U-turn welcome but Scotland still faces cuts
‘ … not only are these cuts ideologically driven, they are also unnecessary’ – First Minister Nicola Sturgeon
First Minister Nicola Sturgeon has set out an alternative option for a UK wide fiscal mandate that would ensure sustainable UK public finances while releasing additional investment in public services and infrastructure compared to the UK Government’s planned cuts.
The illustrative figures show that the austerity proposed by the UK Government is not required to secure a current budget balance.
Under an alternative fiscal plan, the UK’s current budget could be balanced from 2019-20, with public sector net investment increased to 2 per cent of GDP over the same period.
As an illustration of the scale of unnecessary reductions being pursued by the UK Government, this would allow an additional £150 billion in cumulative investment in public services across the UK between 2016-17 and 2019-20 compared to the UK Government’s current plans – which could see Scotland receive around £12 billion.
In contrast, the fiscal targets set out by the UK Government in its summer budget require a significant reduction in public spending, with cuts of £12 billion to welfare and potential cuts of around £20 billion to public services expected by 2019-20. UK Government reductions in spending go beyond what is necessary to balance the budget.
The work, published by the Scottish Government yesterday, shows that UK Government plans, which would see a significant reduction in public spending, with cuts of £12 billion to welfare and potential cuts of around £20 billion to public services expected by 2019-20 are not required.
The Scottish Government example would ensure that public sector debt and borrowing were on a downward path every year from 2016-17 to 2019-20. Net borrowing would continue to fall each year from 4.9 per cent in 2014-15 to 2 per cent in 2019-20 – below the average deficit of 3.6 per cent seen in the UK over the past 40 years.
The First Minister said: “This week, the UK Parliament will vote on the Chancellor’s proposals for what are unnecessary and ideological cuts to public spending.
“The pain of the UK Government’s austerity agenda is already having an impact on some of the poorest and most vulnerable in our society, and is beginning to bite across the country. But the UK Government’s latest fiscal targets mean even more painful austerity is ahead for people across the UK, with further cuts to public services and welfare planned over the next four years.
“As our alternative proposals demonstrate not only are these cuts ideologically driven, they are also unnecessary.
“Our paper published today – which updates our fiscal mandate proposals following the UK Government’s summer budget – outlines an alternative to ensure the debt and deficit are put on a downward path while allowing up to an additional cumulative £150 billion of investment across the UK by 2019-20 – with around £12 billion in Scotland.
“The Scottish Government has consistently demonstrated that the deficit and debt can be brought down without the need for the huge public spending reductions that have been set out.
“As this alternative option shows, not only could we maintain investment in public services and protect the poorest and most vulnerable in society, the UK current budget would be balanced by 2020, with limited borrowing set aside for capital investment to increase the country’s productive capacity.
“There is a different path to austerity available – as our alternative option shows, it is a viable path and it is an opportunity that the UK Government should grasp.”
The alternative options are set out in the paper –http://www.gov.scot/Topics/Economy/Publications/Options-for-the-UK-Fiscal-Mandate
