Economy – Page 27 – The NEN – North Edinburgh News

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.”

Scottish employment hits record levels

Both UK and Scottish governments have welcomed news that employment in Scotland is at the highest level since records began – but they disagree over what’s best for Scottish jobs and the economy: the union or independence.

Figures published today by the Office for National Statistics show that total employment increased in Scotland by 63,000 over the year to reach 2,594,000 – the highest level since records began in 1992. 73.5 per cent of people are now in employment in Scotland.

Female employment has also reached a new record high with 1,250,000 women in Scotland in employment, an increase of 36,000 over the year.
The figures also show that Scotland’s youth unemployment rate has decreased by 2.9 percentage points over the year and now has a youth employment rate of 55.6%.

The overall employment level has now increased over the quarter for 18 consecutive monthly releases – the longest ever unbroken run of increasing quarterly employment.

Over the year the number of people unemployed fell by 21,000, with the unemployment rate now standing at 6.4 per cent. The number of people claiming Jobseekers Allowance has fallen by 35,500 – or 27.6 per cent – over the last year.

Separately, the Scottish Government has today published its latest Quarterly National Accounts statistics for Scotland, which demonstrate the continued strength of the economy. Over the latest four quarters, total GDP including offshore activity has reached nearly £148 billion, and at around £27,700 per person is 10 per cent higher than the equivalent UK figure.

Cabinet Secretary for Training, Youth and Women’s Employment Angela Constance said: “We know that Scotland’s economy has returned to pre-recession levels and these figures show that our recovery is continuing to gain momentum, with unemployment down and employment at its highest level ever.

“I am pleased to see that youth employment has increased and that fewer young people are now unemployed in Scotland compared to a year ago. It is so important that our young people have the chance to get a foothold in the labour market and we want to see this figure continue to decrease.

“That is why we have extended the Youth Employment Scotland Fund, which now helps employers seeking to recruit those aged 16 to 30. In particular this will help those most at risk of being cut off from the labour market such as young working mums, care leavers and disabled people.

“Our ambitions are greater than this – that’s why we are taking forward the commitments set out by the Commission for Developing Scotland’s Young Workforce to reduce youth unemployment in Scotland by 40 per cent by 2020.

“Female employment continues to increase and now sits at the highest level since records began and the female unemployment rate is at its lowest since May-July 2009.

“This government will always do everything we can to ensure women have the same opportunities in the labour market as their male counterparts, and have access to quality sustained work in careers they choose.

“As part of our recovery we must ensure that everyone is able to benefit from a growing economy. For example, our transformational plans for childcare will not just be good for children, but also their parents, giving them greater opportunities to enter work or training.

“These figures show that Scotland has the economic potential to be an independent country. With the full powers of independence we could do more to get people into work and give employers access to the skills they need to grow their business, strengthening our economy and creating jobs.”

Scottish Secretary Alistair Carmichael also welcomed the latest statistics – but drew different conclusions, of course!

Mr Carmichael said: “Today’s figures show we have a new record high in overall employment. Over the last 12 months Scottish employment has increased by 63,000 and unemployment has fallen by 21,000. This shows that working together as part of the UK with its larger market, stronger and growing economy and stable currency is creating more jobs and better opportunities for Scotland.

“It is also good to see the number of people claiming Jobseekers allowance continues to fall. It is now at its lowest level since October 2008 and is 35,500 lower than one year ago.

“Each one of the figures today represents another person or household getting back into the labour market. It also represents the certainty, stability and security we are creating for businesses by being part of the UK. We will continue with our long term economic plan to ensure that these positive figures are reflected in communities across the length and breadth of Scotland and our business have the confidence to grow and employ more Scots.

The Minister made the comments as he visited Frolick, a Dundee based family run company that specialises in healthy alternatives to frozen desserts. Over the past few months the company has greatly expanded its range.

They have benefited from the New Enterprise Allowance (NEA), an initiative which offers expert mentoring and financial support to people on Jobseeker’s Allowance, lone parents and people on sickness benefits who want to start up their own business. Since its launch in 2011, 3,300 businesses in Scotland have been established thanks to the NEA.

Mr Carmichael added: “It was great to visit this thriving family run business in Dundee. Across the country the New Enterprise Allowance is helping thousands of jobseeking Scots build a career and fulfil their ambitions. The great ideas of these entrepreneurs today may transform into successful Scottish companies which will be the major employers of tomorrow.”

Scottish Government unveils jobs plan

Independence will equip Scotland for the first time ever with a fully-powered economic policy aimed at putting job creation in Scotland first, the Scottish Government says. Published today, A Jobs Plan for an Independent Scotland sets out a long-term, ten-point jobs plan for an independent Scotland.

The paper aims to show how, with control of economic and tax policy – ‘and – crucially – by bringing business, unions, government, and other partners together – we can build on Scotland’s strengths and create more and better job opportunities.’

The aim is to create the conditions where everyone able to work has the opportunity to do so.

Commenting on the plan, Finance Secretary John Swinney said: “Independence is a once in a lifetime chance to shift the balance of opportunity in Scotland’s favour – equipping our country with the powers we need to build secure, stable and rewarding employment for everyone who lives here.

“Independence is not a magic wand but the plan we have published today shows how future governments of an independent Scotland could tailor economic policy to put job creation first and deliver a long-term employment boost. With the right policies in place we could achieve full employment – giving our businesses a competitive edge and incentives to create more and better jobs here in Scotland.

“Few, if any, countries in the world, have the economic potential of Scotland. We have a talented and skilled workforce, world-leading universities, a modern college sector and a successful modern apprenticeship system.

“We have a strong international reputation for producing quality goods and services with notable success in sectors such as food and drink, the creative industries, life sciences and modern manufacturing.

“Our natural and energy resources are unrivalled: in 2012 we produced nearly six times our oil demand and we have huge renewable energy potential.

“With the limited powers of devolution Scotland’s economic performance has improved but far too many Scots still feel they have to leave each year to get a job or further their career.

“Of course many people will always want to travel and work elsewhere – but that must be a choice and not a requisite for those looking to succeed.

“With independence our economic policy would be tailored precisely to our own needs – for example in order to resist the gravitational pull of London, we would be able to cut the headline corporation tax rate by up three per cent which could boost employment by up to 27,000 jobs.

“The gains of independence will only happen if we work hard and use policy wisely. But what is clear is that no-one else is better placed to take decisions about the Scottish economy than the people who live, work and run businesses here.”

The Scottish Government has previously set out how improvements in productivity, employment and population could lead to additional tax revenues of £5 billion a year by 2029-30. The jobs plan will contribute to that increase by:

• Creating an education and training environment to equip our young people to fulfil their potential, with a target of 30,000 Modern Apprenticeship starts per year by 2020;

• Controlling the tax system to provide incentives for companies to base their operations and headquarters in Scotland and create jobs. A three per cent cut in the headline corporation tax rate, in part to resist the gravitational pull of London, could boost employment by 27,000 jobs;

• Using employment policy to bring together employers and unions to boost workforce participation, skills and productivity, in place of the UK Government’s confrontational approach. Boosting productivity by just 1 per cent could increase employment in Scotland by 21,000 jobs over the long term;

• Tailoring policy to boost key job-creating sectors in which Scotland has an international comparative advantage, such as renewable energy;

• Reindustrialising Scotland with a focus on strengthening manufacturing, promoting innovation and encouraging international trade and development;

• Boosting infrastructure and transport by establishing a rule which sets a minimum level for public sector capital spending as a percentage of GDP;

• Establishing a Scottish Business Development Bank as part of a strategy to improve access to finance for growth companies;

• Using a new overseas network of 70-90 embassies dedicated to boosting Scottish international exports. In the long-run a 50 per cent increase in exports could increase employment by over 100,000;

• Increasing opportunities for parents of young families to participate in the labour market by expanding childcare.

• Tailoring immigration policy to retain talented overseas students who want to contribute to the Scottish economy.

Opponents of independence argue that the ten-point plan has no credibility; they say that until the government provides an answer on what Scotland’s currency will be, then savings, pensions, mortgages, rents and jobs are at risk as the government’s economic plans are based on ‘guesswork.’

Carmichael welcomes positive economic report

A report highlighting positive signs for Scotland’s economy has been welcomed by Scottish Secretary Alistair Carmichael.

The Bank of Scotland’s latest Purchasing Managers Index (PMI) survey says business activity rose at the fastest rate in six months in July, supporting continued employment growth. It also reports a ‘robust increase’ in overall new business and adds that Scotland’s private sector output increased at a “sharp and accelerated rate”.

The bank’s Purchasing Managers Index (PMI) – a measure of the month-on-month change in combined manufacturing and services business activity – was at a six-month high of 56.8, up for the second straight month from 55.9 in June and 54.0 in May.

Commenting on the latest economic report, Mr Carmichael said: “Today’s PMI report shows that being part of the UK with its larger market, stronger and growing economy and stable currency is creating more jobs and better opportunities for Scotland.

“As we move into the second half of 2014, this report shows that Scottish employment has grown for the 20th straight month. This builds on the encouraging economic signs so far this year, such as reaching a record high in employment, more Scottish women in work than ever before and the UK’s economy being predicted to grow faster than any other G7 economy.

“It is also very encouraging to see a rise in the number of new Scottish businesses. Backing small businesses is a vital part of the government’s long term economic plan. Since 2010, 3,300 entrepreneurial Scots have moved from Jobseekers Allowance to becoming their own boss and since its introduction in April this year, 57,000 Scottish businesses have already taken advantage of our employment allowance.”