Budget reaction

Reaction to George Osborne’s summer budget:

This is a Budget for the whole of the UK. It rewards work, backs aspiration and ensures fairness for taxpayers across the UK. We’re moving towards a lower tax, higher wage and lower welfare economy. And within the welfare system, we continue to protect the most vulnerable.

The economy is growing. We are taking more people out of tax. Jobs are being created. The deficit is coming down . Our economic plan is working.

The UK currently has 1 per cent of the world’s population, but 7 per cent of the world’s welfare bill. That cannot be right and is not sustainable.

Work is the best route to a secure future, and the peace of mind which that brings . We are making sure we have a welfare system which always rewards work, while making sure the most vulnerable are protected.

The National Living Wage is an essential part of the move from a low wage, high tax, high welfare society to a higher wage, lower tax, lower welfare society. It ensures that work pays, and reduces reliance on the State topping up wages through the benefits system.

There is no sensible person who suggests the deficit we inherited should not be tackled. Even our opponents agree with us on that. It would be wrong to burden our children and grandchildren – the next generations – with debt run up by previous governments in this generation.

This is part of being a responsible, responsive Government.

David Mundell MP, Scottish Secretary

The Chancellor is giving with one hand and taking away with the other. Massive cuts in support for working people will hit families with children hardest.

The Chancellor has finally woken up to the fact that Britain needs a pay rise. The TUC has long campaigned for the minimum wage to rise faster and the Chancellor has listened to us at last.

For young people, it was all bad news as they will not get the minimum wage boost and will suffer from cuts to higher education grants and housing benefit. And it was not a one-nation budget for public sector workers who will face years more of cuts to real wages.

Massive tax cuts for the wealthiest show the Conservatives are still the party of the inheritors, rather than the workers.”

TUC General Secretary Frances O’Grady

This is a double edged Budget for business. Firms will welcome measures to balance the books and boost investment, but they will be concerned by legislating for wage increases they may not be able to deliver.

Firms have been unwavering in their support for the Chancellor’s deficit reduction plans and will welcome the clarity that the new fiscal rules provide. Other standout measures include making the Annual Investment Allowance permanent at £200,000, which the CBI called for, as well much-needed investment in our roads network.

The further reduction in corporation tax is a welcome surprise but tax reductions for employers don’t appear to match the businesses most affected by a rise to £7.20 in the National Minimum Wage next April – a 7% increase.

The CBI supports a higher skilled, higher wage economy, but legislating for a living wage does not reflect businesses’ ability to pay. This is taking a big gamble that the labour market can absorb year-on-year increases of an average of 6%.

Firms want to play their part in training up more apprentices but an apprentice levy is a blunt tool. A volunteer army is always better than conscription but the CBI will work with the Government to make the best effect of this measure.

These new (fiscal) rules strike the right balance between getting down our national debt as share of GDP and ensuring we can respond to future shocks in the economy.”

On the introduction of the National Living Wage:

Small shops, hospitality firms and care providers are the businesses that will face real challenges in affording the National Living Wage.

Delivering higher wages can only be done sustainably by boosting productivity. Bringing politics into the Low Pay Commission is a bad idea.

On changes to Corporation Tax:

The Chancellor has provided clarity on the future direction of corporation tax rates for the remainder of this Parliament. Combined with a welcome commitment to publish a business tax roadmap in April 2016, which was called for by the CBI, this must provide businesses of all sizes with the certainty they need to invest.”

On the apprenticeship levy:

In the past, the training delivered by levy approaches has often been costly and not linked to the needs of businesses and learners. The real solution to more quality apprenticeships lies in giving greater control over content to businesses working together in partnership.”

On reducing the bank levy and introducing an 8% surcharge:

By phasing out the bank levy, the Chancellor has tackled an issue that was making the UK uncompetitive for global banks headquartered here. But the proposed new banking profits surcharge will need careful examination to avoid unintended consequences and ensure it doesn’t stifle choice in the banking sector.”

On further tax avoidance measures:

We support efforts to counter tax avoidance and evasion, such as increasing HMRC resources, and we look forward to consulting closely with the relevant authorities on a number of matters to ensure they are well designed.”

On transport and energy commitments:

The Chancellor is right to address the £8bn black hole in the existing road budget through the creation of the new Roads Fund. However there’s more to do to reverse rather than simply halt the decline in road funding.

The CBI has long argued that the current business energy efficiency regime is far too complex and burdensome and so we welcome the review announced. Better designed green taxes and regulation will drive business investment.”

On boosting local growth:

New enterprise zones, city and county deals, smart transport investments and science and innovation audits provided further detail on the Northern Powerhouse agenda. Business wants to work with Government to ensure new powers boost job creation and business investment.”

On further pensions changes:

The Chancellor is right to tread carefully in reforming the taxation of pension saving. Previous mis-steps in this area have damaged our savings culture. Any future measures should not damage the attraction of saving in a workplace pension for employees –this remains the best way of preparing for retirement.

John Cridland, Confederation of British Industry (CBI)

(On the announcement that automatic entitlement to housing benefit is to be cut from 18-21 year olds): This is a youth tax and a shameful decision which is unjustified and cruel. It completely removes the safety net that is in place to protect young people whose circumstances often prevent them from staying in or returning to the family home.

Whether it’s someone fleeing an abusive relationship or thrown out of their home, or someone caught between jobs a long way from home, we have a duty to support young people.

Cutting this vital lifeline for many thousands of young people is simply wrong and I fear that, despite Shelter Scotland and other support service’s best efforts this will cause very hard times and lead to a rise in homelessness among young people.

Short-sighted cuts like this do nothing to fix the root cause of the housing benefit bill – which has grown due to the chronic shortage of affordable homes, a growing reliance on the private rented sector and sky-high rents. That’s why the reduction in the benefit cap doesn’t make sense as it will drive those affected by it out of their homes for not being able to pay their rent, in effect, clearing out people who rely on housing benefit from high rent areas.

In Scotland, we need to build at least 10,000 new homes for social rent each year for the foreseeable future to tackle the shortage of affordable housing. By investing in affordable housing, not only would this bring hope to the 150,500 households on council waiting lists, it would also gradually reduce the housing benefit bill, which in turn would leave more funds available for investment in housing.

Graeme Brown, Shelter Scotland

There was further support to reduce corporation tax, fix the annual investment allowance and boost regional growth, where investment in roads will be particularly well received. We agree with the focus on productivity but need to see the details to raise skills through the apprenticeship levy on large firms. Planning reforms are also critical to raising productivity and again we look forward to seeing the proposals on Friday.

However, even though offset by a welcome increase in the employment allowance, some will find the new National Living Wage challenging. Changes to the treatment of dividends will also affect many of our members.

Commenting on specific areas detailed in the Budget:

The National Living Wage
The introduction of a new National Living Wage for over 25 year olds, set at £7.20 an hour from next April, will pose significant challenges for many small firms, particularly those in the hospitality, retail and social care sectors. We have been supportive of gradual increases in the National Minimum Wage in recent years, to reflect the
improvement in the economy. However, we believe annual increases should be set according to the recommendations of the independent Low Pay Commission (LPC). We support the idea of giving employers a clearer indication of where minimum wages are heading in the medium term, but we note this move risks undermining the independent
status of the Commission.

Employment Allowance

The increase in the Employment Allowance to £3000 is welcome although, for many small businesses, it is unlikely to fully off-set the increase in costs brought by the new over 25s National Living Wage rate. FSB’s research shows that in the past the Employment Allowance has enabled members to increase wages and spending on staff
training. Going forward we expect the allowance to primarily be used to meet higher wage costs, as a result of the new National Living Wage.

Annual Investment Allowance

The Annual Investment Allowance has been an important incentive for people investing in the future growth and productivity of our small businesses. We have long called for the Allowance to be set permanently and at a reasonable level. Small firms will therefore
welcome the move by the Chancellor to do just that by setting the Allowance permanently at £200,000.

Introduction of an apprenticeship levy

The increasing focus on vocational on-the-job training is the right approach but we must not let the drive for greater numbers come at the expense of quality. Encouraging small businesses to take on an apprentice is the only way to deliver the Government’s
target of three million apprenticeships. While we welcome the exclusion of small firms from the proposed apprenticeship levy, we urge Government to talk further with businesses about the wider implications and implementation of the levy.

Productivity and infrastructure

Closing the productivity gap is the best way to boost the long term health of the UK economy. It’s the key to reducing the budget deficit, delivering higher wages, and improving living standards. Solving the productivity puzzle requires long-term effort and focus, and we look forward to seeing the Chancellor’s thinking when he publishes his
productivity plan later this week. Among the range of measures we will be looking for are proposals to address longstanding planning issues, ending delays in infrastructure investment, and giving young people the skills businesses really need to grow and for them to have successful, rewarding careers.

The new road fund announced today will be particularly welcome for small businesses which are heavily reliant on the road network for the success of their businesses.

Tax simplification

Working out just what tax you owe can be a huge headache for small businesses. Getting it right costs unnecessary time and money. Businesses want a much simpler system, which is why they will welcome the greater resources and new statutory footing
awarded to the Office of Tax Simplification (OTS) and the greater resources to support its work. To deliver simplification, it is critical Ministers implement the recommendations the OTS has already made. Working with stakeholders, they also need to present a clear
roadmap on how they will take simplification forward in the future. This should be done with a clear regard to boosting productivity and growth.

Fuel duty

Small firms, especially those in rural areas are disproportionately hit by the cost of fuels. Continuing to freeze fuel duty will be welcomed by small firm still struggling with the cost of fuel at the pump.

John Allan, Chairman, Federation of Small Businesses

For the first time the Chancellor has finally admitted that his attack on the poorest and most vulnerable people in our communities isn’t actually about tackling the deficit. It’s all part of his push for a low tax low welfare society.

This is the work of an economically-illiterate Chancellor who is dead set on cutting, freezing and scrapping welfare to reach his target of £12bn cuts.

He’s demonstrating a cruel disregard for the impact this will have on hundreds of thousands of people’s lives. The sad truth is that far too many people can’t afford to feed and clothe themselves and their families, or keep a roof over their heads.

Taking money from the pockets of our poorest people will only plunge them deeper into poverty and increase inequality which will be a drag on the economy.

Setting the new statutory living wage at £7.20 for next year when the recommended living wage is currently £7.85 is just a headline-grabbing con. Combined with tax credit cuts it means that people will be worse off and only the Treasury will benefit.

The Chancellor and Prime Minister’s war on tax credits will back fire and will worsen poverty levels in the UK. We’re a rich country. It’s utterly senseless that we’re treating people like this.

John Downie, Director of Public Affairs, Scottish Council for Voluntary Organisations (SCVO)

Greens on Greece: ‘a crisis caused by the rich’

Greens stand with people of Greece as economic crisis deepens

The Scottish Greens have pledged to stand shoulder to shoulder with the Greek people in their fight against austerity. They have also urged both the UK and Scottish governments to put pressure on financial institutions to negotiate a fair debt restructure for Greece.

City councillor Maggie Chapman, Co-Convenor of the Scottish Green Party, said:
“We are in the midst of a crisis caused by the rich. The great economic challenge of our time is ending their power to punish the rest of us for a crisis we did not cause. Austerity is the mechanism they use and the place that has borne the brunt of austerity more than anywhere is Greece.

“We know austerity is doomed to fail, but in that failure it will only extend the economic pain felt by the most vulnerable people in society. All around Europe we must stand with the people of Greece in their stand against austerity, for a decent future and for democracy.

“The election of an anti-austerity SYRIZA led government in January was a clear signal that the people of Greece have rejected austerity. Greece’s creditors, represented by the so-called Institutions – the European Commission, the European Central Bank and the International Monetary Fund – are trying to subvert that democracy. Their actions have been counterproductive and destructive.

“After five and a half years of brutal austerity Greek debt is higher, while the Greek people have suffered untold harm.

“As a democratic party and a party opposed to austerity the Scottish Greens stand with the people of Greece. As Co-Convener of the Scottish Greens I stand in solidarity with my SYRIZA & Ecologist Greens comrades in the the Greek Government as they lead Europe’s opposition to austerity. We call on the Scottish and UK Governments to intervene with the Institutions to secure the substantial restructuring of Greece’s debts and an end to austerity.”

Budget is ‘last chance to change flawed economic policy’

Today’s UK Budget provides the last opportunity for the Chancellor to scrap his failed austerity measures Deputy First Minister John Swinney said today. He said the final budget ahead of the General Election should be focused on delivering economic growth by tackling inequality.

In his final call to the Chancellor ahead of the Budget the Deputy First Minister urged him to scrap his failed economic policy. In the June 2010 Budget, the Chancellor stated that the UK Government was ‘on track to have debt falling and a balanced structural current budget by the end of this Parliament’. He has failed on both measures. Rather than debt falling as a share of GDP in 2014-15, it is now forecast to continue rising. Likewise, instead of running a structural current budget surplus in 2014-15, the UK Government is now forecast to run a structural current deficit of almost £50 billion (2.7% of GDP).

Speaking ahead of the UK Budget John Swinney said: “The current UK Government’s economic policy is fundamentally flawed and is damaging Scotland’s recovery. Despite the deep spending cuts we have seen, the Chancellor has not achieved the deficit reduction targets he set himself in his first budget in 2010.

“Between 2009/10 – 2014/15, Scotland’s budget has fallen by around 11% in real terms, within this capital expenditure has fallen by around 34%. This means our budget has been cut by a staggering £3.5 billion in real terms since 2009/10.

“And it doesn’t stop there. Scotland’s cumulative share of the cuts to day-to-day public spending over the 5 years to 2019-20 is forecast to be worth around £14.5 billion compared to 2014/15 levels.

“There is an alternative. George Osborne can use today’s budget to stop these deep cuts and grow our economy instead.

“The Scottish Government is doing all it can, within its limited powers, to support Scottish finances. The latest Scottish GDP figures show the economy grew by 3.0 per cent over the year to Q3 2014 – the fastest annual rate of growth in seven years – while the number of people in employment has risen by 180,000 since its post-crisis low in Spring 2010 and is now at a record high of over 2.6 million.

“However, successive UK budgets and Autumn Statements have undermined the Scottish Government’s ability to support economic revival, particularly through the significant cuts the Chancellor has made to capital investment over the spending review period and, in some cases, the in-year reductions he has made to the Scottish Government’s published spending plans.

“In addition to our proposals on austerity, the Budget must also deliver a permanent shift to a more competitive and predictable north sea oil tax regime, which will allow investors to shift their focus away from fiscal risk and towards the significant investment opportunities that remain in the North Sea.

“The Scottish Government has set out three key priorities for fiscal reform at this Budget:

an immediate reversal of the 2011 increase in the Supplementary Charge;
an investment allowance to provide a simple, stable and more competitive fiscal regime; and
an exploration tax credit to help increase exploration and sustain future production.

“I hope that the Chancellor will have listened to reasoned proposals ahead of delivering his budget and that economic growth and tackling inequality will be given equal representation in this final budget before the General Election.”

The Chancellor will deliver his budget speech at 12:30.

Rise in Minimum Wage is coming – but it’s not enough, say campaigners

‘The Low Pay Commission should do what it says on the tin – and fight for the low paid’ – GMB General Secretary Paul Kenny

The Low Pay Commission LPC) has recommended to the Government that the adult rate of the National Minimum Wage should rise by 3 per cent to £6.70 from October – but trade union leaders and anti-poverty campaigners argue the increase simply isn’t enough

The LPC’s aim is to advise on a rate that protects as many low-paid workers as possible without damaging jobs or the economy. The Commission says it has carefully weighed the risk of doing too little to raise the earnings of the lowest paid against the risk of recommending more than business and the economy can afford.

With inflation now forecast at 0.5 per cent, this recommendation would, if accepted by the Government:

be the largest real-terms increase in the NMW since 2007, taking its estimated real value three-quarters of the way back to its highest ever level.
increase the NMW to its highest value relative to other wages. Its bite – the value as a proportion of typical wages – is already at its peak. This would increase it further. Influential in our recommendation has been evidence of strong employment growth in low-paying sectors and firms of all sizes.
expand coverage of the number of jobs covered by the main rate of the minimum wage to an estimate of over 1.4 million (PDF, 1.87MB, 13 pages) . This compares with 900,000 at the start of the downturn in 2008, as the minimum wage has risen in relation to median earnings.

Commenting on the recommendation, David Norgrove, Chair of the LPC said: “Last year we were pleased to recommend the first real terms increase in the value of the minimum wage since the recession. We argued that the minimum wage had proved its worth over the course of the slowdown, increasing relative to earnings generally and protecting the low paid during the downturn in a way not seen before albeit, as with wages for all other workers, its real value fell.

“Sharp increases in the minimum wage would put jobs at risk – not least bearing in mind pressure on low-paying sectors and small firms. We do believe however that the continued recovery, and in particular the impressive growth in employment of the low paid, should this year allow a further increase in the real and relative value of the minimum wage.

“An increase of 3 per cent to £6.70 is a larger real terms increase than last year and, on the basis of the most recent Bank of England inflation forecast, should restore three-quarters of the fall in the real value of the NMW relative to its peak in 2007.

“We judge that the improved economic and labour market conditions mean once again that employers will be able to respond in a way that supports employment. However, our recommendation this year is predicated on a forecast which foresees lower costs for business in fuel and energy, a strong economic performance, significant recovery in earnings across the economy and rising productivity. If these expectations are not borne out over the year we will take this into account when considering next year’s recommendation”.

As well as its recommendation for the adult rate, the Low Pay Commission has also recommended:

an increase of 3.3 per cent to £5.30 in the Youth Development Rate, which applies to 18-20 year olds;
an increase of 2.2 per cent to £3.87 in the 16-17 Year Old Rate;
an increase of 2.6 per cent to £2.80 in the Apprentice Rate, which applies to all apprentices in year one of an apprenticeship, and 16-18 year old apprentices in any year of an apprenticeship;
an increase of 27 pence in the accommodation offset to £5.35. The offset is the one benefit-in-kind that can count towards the minimum wage. This is the maximum daily sum employers who provide accommodation can deduct towards those costs.

However some argue that the increase doesn’t go far enough. The GMB trade union has called on Vince Cable to revise the LPC’s proposal of £6.70 National Minimum Wage from October to make up ground lost during the recession. The GMB says the rate should be at least £6.99 per hour.

Paul Kenny, GMB General Secretary, said “This is a missed opportunity by the Low Pay Commission to uprate the national minimum wage to the real term rate that it was before the recession hit in 2007. Vince Cable should revise the proposal.

“With the economic recovery under way there is no justification for the national minimum wage not going back to where it was in real terms before the recession.

“The Low Pay Commission should have recommended a rate of at least £6.99 per hour from October 2015 to make up the ground lost since the rate was fixed at £5.65 from 1st October 2006 before the recession.

“The Low Pay Commission should do what it says on the tin – and fight for the low paid.

“There has to be a concerted effort to make work pay. If this was done, staff would not need their meagre wages to be topped up by taxpayers with family tax credits and housing benefits so as to make ends meet.

“GMB members tell us that in their experience at least £10 an hour and a full working week is needed to have a decent life free from benefits and tax credits. Less than £10 an hour means just existing not living. It means a life of isolation, unable to socialise. It means a life of constant anxiety over paying bills and of borrowing from friends, family and pay day loan sharks just to make ends meet.”

The Poverty Alliance is spearheading the campaign for a living wage in Scotland.

“The Scottish Living Wage Campaign believes that a job should help you out of poverty, not keep you there.

“The National Minimum Wage is not enough for individuals in Scotland to access the essentials of everyday life. £6.50 per hour will just never be enough to cover the day to day basics, nevermind to save some money or plan for emergencies.

“Hundreds of thousands of workers are being paid wages that basically equate to poverty pay. This is simply not right.”

The end of Poll Tax debt

Scottish Parliament passes Community Charge Debt Bill

Proposals to end the collection of the historic Poll Tax debt have been approved today with a new law being passed by the Scottish Parliament.

As part of the Bill, the liability to pay the arrears in Scotland ended on February 1, 2015. This was subject to, and has now received, final approval from Parliament.

The Scottish Government brought forward the bill to bring an end to collection of debts under the discredited tax, which was abolished in 1993 after only four years in operation in Scotland.

Speaking after the vote to approve the bill the Deputy First Minister John Swinney said: “The Scottish Government has acted act expeditiously to address the use of information gathered from voter registration to pursue historical debts from a tax that is discredited and which has not been operational in Scotland for more than 20 years.

“People should not fear being on the electoral registers because of decades-old community charge debts.

“Although the amount of Poll Tax arrears collected by local authorities across Scotland has fallen in recent years to less than £350,000 in 2013-14, we will ensure that local authorities are properly compensated in line with current collection rates in respect of outstanding amounts.

“I am proud that the Scottish Parliament has consigned the ‘poll tax’ to history and extinguished any remaining liability for a disgraced and defunct tax.”

Green shoots? Record number of Scots in work

New GDP figures show fastest annual growth since 2007

Both Westminster and Holyrood politicians have welcomed the latest employments statistics published today. Scottish Secretary Alistair Carmichael says the figures show that the UK’s long term economic plan is working, while Cabinet Secretary for Fair Work, Skills and Training Roseanna Cunningham says Scotland continues to outperform the UK.

The number of people in employment in Scotland has increased by 50,000 over the year, reaching a record high of 2,612,000 as new GDP figures show the fastest annual growth since 2007.

ONS Labour Market Statistics released today covering the period September to November 2014 show female employment has also reached a record high and Scotland’s youth unemployment level is at its lowest in five years.

Cabinet Secretary for Fair Work, Skills and Training Roseanna Cunningham has welcomed today’s Labour Market Statistics which show:

The level of unemployment has fallen by 20,000 over the year and by 79,000 since its recession peak in 2010
The Scottish unemployment rate of 5.7 per cent remains below the overall UK rate, with Scotland also having a higher employment rate and lower economic inactivity rate
The number of people claiming Jobseekers Allowance has fallen by 24.9 per cent over the year.

In addition, National Statistics published today by the Scottish Government covering 2014 quarter 3 show that the Scottish economy continues to improve, growing by 3.0 per cent from the same quarter in the previous year. This is the fastest annual growth since 2007 with headline UK annual growth for the same period at 2.6 per cent. Growth over the quarter in Scotland was 0.6 per cent, the ninth consecutive quarter of expansion.

The construction sector again showed its strength, growing by 3.2 per cent over the quarter and 6.6 per cent over the year. The services sector, which accounts for around 72 per cent of the Scottish economy, grew by 0.6 per cent over the quarter with some manufacturing sectors also showing growth.

Ms Cunningham (above) said: “Scotland is again outperforming the UK on employment, unemployment and inactivity rates and a 3 per cent expansion in our economy over the year is a clear demonstration of our growing strength, not least in the construction sector.

“Our work on jobs and growth is continuing to pay off with record employment levels increasing this month and female employment also reaching a record high, welcome evidence of our on-going work on narrowing the gender gap.

“I am particularly pleased to note positive news on youth employment and I am determined that we will maintain our focus on increasing the employment opportunities for our young people. We will continue to work with local government and employers to deliver the recommendations of the Commission for Developing Scotland’s Young Workforce so that we deliver our ambitious programme to develop a world class vocational education system.

“This government is determined to close the attainment gap in our schools and enable the widest possible access to Higher Education so that everyone gets an equal chance at gaining qualifications, and therefore a job, regardless of their background.

“As the economy grows, we must ensure that everyone is able to benefit from our success. We will continue to use all of the powers we have at our disposal to grow the economy, increase employment, lower unemployment and remove barriers to the labour market.

“The Scottish Parliament will shortly have the first reading of the budget bill for 2015/16 which includes £4.5 billion of investment in infrastructure and additional funding for youth employment to secure sustained growth for Scotland.”

Scottish Secretary Alistair Carmichael (above) also welcomed the latest figures. He said: “Today’s employment figures show a record number of Scots in work, more women in employment than ever before and jobseekers allowance claimants at its lowest level since 2008.

“The UK Government has stuck to its long term economic plan, creating the right conditions to rebuild and rebalance our economy. Together with the safety and security which comes from being part of the UK this has helped our businesses grow and create more sustainable jobs. As a result, over the past four and half years employment has risen by 167,000 and unemployment has fallen by 61,000.

“It’s also welcome news to see Scotland’s economy continuing to grow, building on two successive years of economic growth. The rise in unemployment over the past quarter highlight the challenges which remain. Recent business surveys however show Scotland’s economic growth is set to continue into 2015 and our labour market is expected to build further on the record numbers we have seen. We will take responsibility to help those who fall out of work ensuring they can make the most of the opportunities being created in communities across the country.”

Headline Statistics for the September to November 2014 quarter:

Employment in Scotland increased by 1,000 over the quarter, and increased by 50,000 over the year, to stand at 2,612,000.
The Scots employment rate increased over the quarter to 74.1 per cent. The rate is above the UK average of 73.0 per cent.
Unemployment in Scotland increased by 7,000 over the quarter and fell by 20,000 over the year. The level now stands at 158,000.
At 5.7 per cent, the Scots unemployment rate is just below the rate of 5.8 per cent for the UK as a whole.
Economic Activity increased by 8,000 over the quarter and now stands at 2,770,000. Also, the Economic Activity rate increased over the quarter to stand at 78.7 per cent.
In December 2014, the number of people out of work and claiming Jobseeker’s Allowance (JSA) was 85,000.

Latest Data for Scotland:

Employment

The Labour Force Survey (LFS) indicates that the number of people in employment in Scotland from September to November 2014 was 2,612,000. Employment was up by 1,000 compared to the previous three months, and was up by 50,000 compared to the same quarter last year. The employment rate increased on the previous quarter, and it was up by 1.5 p.p. compared to the same quarter last year, at 74.1 per cent. In comparison, the Scottish employment rate is above the UK average.

Unemployment

Unemployment in Scotland was up 7,000 over the quarter September to November 2014, to 158,000. The level was down 20,000 compared to the same quarter last year. The unemployment rate was up 0.2 p.p. on the previous quarter at 5.7 per cent, which is down 0.8 p.p. over the year.

Claimant Count

The claimant count in Scotland, based on the seasonally adjusted number of people claiming Job Seeker’s Allowance (JSA), fell by 2,100 from November to 85,000 in December 2014. The level is down by 28,200 on December 2013. The claimant count rate fell by 0.1 p.p. over the month at 3.1 per cent, and is down 1.0 p.p. over the year.

Economic Activity

The number of economically active (defined as those in employment or ILO unemployed, and seasonally adjusted) in Scotland in the September to November 2014 quarter was 2,770,000. This was up 8,000 on the previous quarter, and is up 29,000 on the same point a year ago. Among those aged 16-64 the economic activity rate was 78.7 per cent, up 0.3 p.p. on the previous quarter, and up 0.9 p.p. over the year.

Tell George Osborne what he can do with his Budget!

Did you have your say on the city council’s budget proposals? Have you got the taste for balancing the books? Well, you now have the opportunity to give Chancellor George Osborne some timely Budget advice. Read on …

What would you like to see in Budget 2015?

The government is seeking your views on what you would like to see in Budget 2015, which will take place on Wednesday 18 March.

The government encourages open and transparent policy-making, and welcomes original and innovative ideas. Your views will be considered by HM Treasury as part of the policy-making process.

Please submit your representation by filling in our short survey.

If you would prefer to submit your representation as a file attachment, please email budget.representations@hmtreasury.gsi.gov.uk

For information on the correct procedure for submitting your representation, please view the guidance.

To allow for full consideration in advance of the Budget, any submission should be sent to HM Treasury by Friday 13 February

Follow HM Treasury on Twitter for all of our latest news and Budget coverage.

Council budget cuts: meeting at Royston Wardieburn next week

Womens International Group (WIG) are holding a follow up meeting from our 9 December one – the council budget Cuts will be announced soon.

The meeting will take place on:

Wednesday 14 January

at Royston Wardieburn Community Centre at 6-30pm.

We are hoping the local councillors will be in attendance to be able to answer questions regarding the cuts .

All welcome

Anna Hutchison (on behalf of WIG)

COUNCIL BUDGET NEWS:

It was announced this week that more than 1,200 council jobs could go over the next three years under proposals to plug the city’s £67m funding gap.

The council insists there will be no compulsory redundancies and said the planned ‘transformation of services’ was designed to make them more efficient and customer focused.

City council Finance Convener Cllr Alistair Rankin said: “Of course change on this scale brings challenges but we need to take decisive action now to meet our targets and create a stronger, leaner, more agile council to better serve the people of Edinburgh.”Among the proposals under consideration are offering more services online, having a neighbourhood approach for face-to-face services and cutting grants to the voluntary sector by as much as 10%.The latest restructuring proposals will be considered by the Finance and Resources committee on Thursday and consultation with staff and trade unions is also being planned.

See below for relevant Council reports:

Item_7.3___BOLD_business_cases___delivering_a_lean_and_agile_Council

Item_8.1___Organise_to_Deliver___Next_Steps

Osborne: pensioner bonds will pay 'best available interest'

Chancellor of the Exchequer George Osborne has announced that that the government’s 65 plus bonds will pay savers the best available interest rates.

One year bonds will pay an annual interest rate of 2.8%, while three year bonds will pay 4% – both rates are significantly higher than any others currently offered in the market.

A key part of the government’s long term economic plan is to support savers at all stages of their lives. That is why the government announced at Budget 2014 that National Savings and Investments (NS&I) will launch two fixed-rate, market-leading savings bonds, which will be available in January 2015.

These bonds, the rates of which were confirmed on Friday, will provide certainty and a good return for those who have saved all their lives and now rely on their savings in retirement.

With an investment limit of £10,000 per bond per person, the government expects that the 65 plus bonds will help an estimated 1 million pensioners. The bonds will be available directly from NS&I by post, phone or online.

The Chancellor made his announcement during a vsit to Eastleigh, where he met with pensioners to discuss the benefits of the 65 plus bonds. The visit formed part of the Chancellor’s tour around Britain aimed at highlighting the policies announced in Autumn Statement 2014.

Mr Osborne said: “A key part of our long term economic plan is to support savers and boost hardworking peoples’ financial security at all stages of life. That’s why the government is introducing savings bonds for people aged 65 and over, and why we’re confirming today that these bonds will pay the best available interest rates. They will give hundreds of thousands of older savers the certainty and comfort of a good return over the life of their investment”.

Investors can hold bonds jointly, but this will still count towards their individual limits – i.e. a couple could hold £40,000 jointly.

There is a minimum investment of £500 per bond.

Visit www.nsandi.com for further details.

Searching for the Great British High Street

High Streets Minister Penny Mordaunt today urged town and cities across Britain to get their applications in for the Great British High Street competition before it closes on 30 August.

The minister has written to all town teams and the local community to encourage them to take part in the competition, run by the Future High Street Forum, to find Britain’s best high streets. Many town teams have already entered the 7 separate categories: city centres, town centres, market towns, coastal communities, villages, parades and London.

The minister said this national competition was a fantastic way to celebrate the nation’s greatest high streets and it was essential that all parts of the United Kingdom are represented.

The winners will win £50,000 of prize money and dedicated support and mentoring from industry experts. This could range from one to one coaching to advice on creating business plans to attending workshops on digital marketing.

The government is committed to high streets as part of it long-term economic plan. It is supporting local shops and businesses with a billion pound package of investment that includes targeted business rate discounts, sensible planning changes and action that reins in over-zealous parking practices.

High Streets Minister Penny Mordaunt said: “This competition is about celebrating the work local people do to make their high streets great places to live, work and shop. Our high streets are bustling again and we want to find the hidden gems the country has to offer and share their tips for success.

So if your area hasn’t entered already then get cracking – don’t miss the chance to be named the Great British High Street.”