Finance Secretary Kate Forbes – The NEN

First Minister outlines his ambitions for Scotland’s economy

The First Minister has set out his ambitions for Scotland’s economy during a speech in Glasgow.

Speaking at the Barclays Campus in Glasgow’s financial district on Friday, First Minister John Swinney outlined his government’s approach to economic policy making.

Mr Swinney said poor decision-making at UK level, typified by Brexit and immigration policy, means the Scottish Government must work even harder with its limited powers to help businesses and workers thrive.

The First Minister stated his determination to bring hope and optimism and said he will “go all out” to encourage economic investment.

John Swinney said policy making will be governed by:

Moderate left of centre, progressive values
A partnership approach with unions and business
A focus on actions
Problem solving based on evidence

The First Minister will highlight significant announcements in Scotland’s renewable energy sector this week and actions the Scottish Government is taking to boost high growth businesses.

The First Minister said: “My goal is to help people live happier and healthier lives with higher living standards and to help businesses boost profitability.

“The evidence shows that independent countries that are comparable to Scotland are wealthier and fairer than the UK.

“Scotland has the talents and resources to match that performance with independence but in the here and now and in the face of Brexit we must work even harder to help Scotland’s economy with the powers we have.

“I will go all out to encourage investment in Scotland and I will ensure people know my government is a firmly pro-business administration.

“A partnership with trade unions and business will be at the core of my approach and through that approach and given our resources, not least incredible renewable energy, we should look to the future with hope and optimism.”

ANALYSIS: FRASER of ALLANDER INSTITUTE

New FM – new approach on the economy?

Today, the new First Minister John Swinney set out his broad economic aspirations for Scotland (write MAIRI SPOWAGE and EMMA CONGREVE).

In a speech at the impressive Barclays Glasgow Campus (which he said embodied the ambition he wished to have for the economy), he set out the vision he had for Scotland to have a strong, successful, innovative and dynamic economy.

For people who were after specific policy actions, the speech was light on detail, but it was not perhaps fair to expect the FM to outline these sorts of specifics in a speech like this.

The FM also had a difficult line to tread, given (as he himself pointed out) that he has been a Minister in government for 16 of the last 17 years and wanted to talk about successes in a record he is “immensely proud of”. At the same time, he needed to recognise that there were failings in the previous administration that had led to him being in office as First Minister.

Economic Growth is front and centre

The First Minister had said as he took office that eradicating child poverty was his key policy objective. This morning he was keen to set out that there is no conflict between eradicating child poverty and boosting economic growth – rather, they go hand in hand. He set out that boosting the economy will create opportunities for people and raise living standards and that reducing poverty raises spending power and boosts productivity. This is to a large degree true, but there will at times be trade-offs that will require one to be prioritised over the other.

Given the key stakeholders from businesses and business organisations in the room for his speech today, he was very keen to set out that his government was going to work collaboratively with businesses and other organisations to design and implement policies to strengthen the economy. Even more broadly, the FM said that he wished to bring more consensus building back into Scottish politics to try to achieve outcomes – to “build up, not tear down” as he put it.

There was a clear “Scotland is open for business” from the FM today. Supporting more investment in Scotland (particularly related to the Energy Transition and Housing) is clearly a priority for this new administration. This featured heavily in this speech and has been supported by some of the policy announcements made earlier this week.

We will do, rather than write strategy documents

A widely welcomed aspect of the speech is likely to be the FM’s acknowledgment that his government could probably do with carrying out “more concrete actions and fewer strategy documents”.

We have been on record a number of times as saying that the Scottish Government produces too many and too weighty strategy documents. So this is a crowd pleaser to a room of people who are likely to want to see action rather than just warm words and have seen endless strategies come and go.

However, it is important to remember what the problem sometimes was with these documents. Sometimes, in the case of recent economic strategy documents, the problem is that they aren’t really strategies – if they set out high-level principles that no one can disagree with, but don’t provide a meaningful framework for prioritisation and dealing with trade-offs, then they aren’t particularly useful.

In other cases, even where strategies are set, they can often gather dust on a shelf rather than meaningfully drive activity in government.

All of this from the FM is likely to be broadly welcomed – it’s an easy sell to say there will be less bureaucracy. But let’s not forget that we still need a clear economic strategy from the FM and the DFM – and that a strategy is not a strategy unless it rules some things out and recognises trade-offs and carries through into day-to-day activity. This clarity and policy stability is what is likely to be required to inspire the confidence in investors that this new administration would like to see.

Looking forward, not back

Many of the questions from journalists in the room today were designed to get the FM’s views on what went wrong with economic policy under the previous leadership, In addition, he was asked what his government was likely to do on policies like rent controls, short term lets legislation, and tax increases (specifically income tax) that have been put in place at the past budgets. Essentially, people were keen to hear what, in these specific areas, might change under a John Swinney government.

The FM said clearly that he was “looking forward, not back” in response to the question about what went wrong under Humza Yousaf.

With regards to specific policies where regulation was impacting businesses, he said his Cabinet colleagues were looking at lots of areas of policy and that more details on specific policies would be following in the weeks and months to come.

On tax, he was more forthcoming – acknowledging that the higher tax rates on above-median earners in Scotland are an important component of raising revenue in straitened fiscal times, but also saying that “we can’t keep raising taxes”. It will be interesting to see how this approach to tax is reflected in the Government’s Draft Tax Strategy, which is due alongside the Medium Term Financial Strategy (date currently tbc). That is if these two documents survive the cull of strategies …

Evidence-based approaches

The FM today said a number of times that the government he leads will be more practical and will be driven by the evidence of “what works”. We are very supportive of this, of course, and hope it signals a shift of more meaningful appraisal and assessment of policy options within the Scottish Government, with the associated investment in evaluation.

In doing this, unintended consequences, whether economic or otherwise, are more likely to be identified and can be proactively mitigated, and/or it can allow the government to change course at an earlier stage.

In addition, progress and continuous improvement can only happen in a culture of meaningful evaluation and being prepared to learn from what worked and what didn’t work.

For example, how well has the policy on rent freezes and caps worked to date? It would initially appear from rental costs that it has had the opposite effect on rents than the government presumably desired, and it would also appear to have had an impact on investor confidence in the sector. Given the FM’s focus on housing in his speech today, and his commitment to be evidence-based, it will be interesting to see how this policy area progresses.

Is this a meaningful shift in approach?

With his speech today, that is certainly what the FM is trying to convey. He was saying many of the right things to hearten those who want to see the government focus on economic growth.

However, the proof will be in the policy action that is actually taken. So, let’s wait for these details in the weeks to come.

City council’s commercial property strategy generates £15m for local services

Council sets sights on new business park

Commercial property investment by the City of Edinburgh Council has provided space for local businesses to thrive while raising over £15 million a year for vital public services, reveals a new report.

A revised version of the Council’s Commercial Property Strategy – which supports existing, new, and expanding enterprises across the Capital – has been approved by the Finance and Resources Committee.

It reveals that the Council is the biggest landlord of commercial property in all of Edinburgh, with a portfolio of 949 assets worth in the region of £245m. This has helped the Council generate income to reinvest towards frontline services and make profits from sales, which have helped with budget savings.

The strategy also supports a number of grassroots and community-based clubs and organisations with low-cost lease arrangements.

Under the refreshed plan, the Council will continue to maximise income growth from buildings in the year ahead while also prioritising support for start-ups and the Capital’s ambitious net zero by 2030 climate commitment.

A change to the strategy will also allow the opportunity for funds from property sales to be reinvested back into the portfolio, helping to streamline and make the most of the council’s assets.

This involves a vision for designing inhouse and building a new, sustainable, business park on Council-owned land at Peffermill – mirroring the successful business park launched in East Hermiston in early 2018. Five years on, the East Hermiston Park is providing 16 fully let units in a 1,600sqm modern industrial space yielding an annual income of £185k.

Councillor Mandy Watt, Finance and Resources Convener, said: “I’m pleased that the refreshed strategy has received Committee’s approval and that we’ll be able to improve on the £15m of income already raised from the council’s property portfolio.

“The opportunities available to support even more jobs at the new low carbon business park in Peffermill are exciting, and I’m looking forward to plans being brought forward later in the year.

“Over the last year, the council has used its properties to support the economic success of the city post-Covid and helped budding businesses to thrive, in ways that maximise income for delivering Council services. The results speak for themselves and we’ve seen first-hand the benefits business parks like the existing one at East Hermiston can bring.

“Against a backdrop of reduced government funding, we’ve had to think creatively to make the most of any income that we can raise for council services. This property strategy is a good example of that.”

Kate Forbes: Setting spending priorities for a stronger Scotland

‘We face a very difficult financial position over the new few years’

Prioritising public spending is essential to grow a stronger economy as Scotland recovers from the pandemic and faces up to the cost of living crisis, Finance Secretary Kate Forbes has said.

Speaking ahead of the publication of the Resource Spending Review, Ms Forbes said more focused government and public sector funds would achieve ambitions to tackle child poverty, reach net zero and deliver sustainable services for the future.

The Spending Review will give broad parameters for spending for the next four years and set out a series of government reforms.

Finance Secretary Kate Forbes said: “These are challenging times, and we need to be canny with our spending, but I’m confident that if we work together we can get through this cost of living crisis and still achieve our ambitions.

“That means tackling child poverty, driving our economic recovery from COVID and achieving net zero, while building a stronger public sector that is sustainable for the future.

“We face a very difficult financial position over the next few years with funding increases below inflation levels and the challenge of recovering from the pandemic without the financial tools available to every other government in the world. That means while the spending review is not a budget, it will include difficult decisions, to ensure we can really focus on supporting households and services at this time.

“The Resource Spending Review will detail the funding available over the coming years to achieve these goals, and it will be published alongside the Medium-Term Financial Strategy (MTFS) which gives economic context to the challenges and opportunities which lie ahead.”

Ms Forbes will outline the Resource Spending Review to Parliament when it is published tomorrow (May 31).

The Scottish Government says it is doing ‘everything within its powers and fixed budgets to ensure people, communities and businesses are supported as far as possible’, including investing almost £770 million this year in cost of living support and doubling the Scottish Child Payment to £20 per week.

Earlier this year it increased eight Scottish benefits by 6%, the rate of inflation at the time, and introduced a range of benefits not available elsewhere in the UK.

Expanding free school meals and providing £150 council tax payments to low income families are included in further actions to put money back into people’s pockets at a time when they need it most.

Most vulnerable households will get over £1000 of help with cost of living

MORE SUPPORT NEEDED, SAYS SCOTTISH FINANCE SECRETARY

The most vulnerable households across Scotland will receive support of over £1,000 this year, including a new one-off £650 cost of living payment
Universal support increases to £400 across Great Britain, as the October discount on energy bills is doubled and the requirement to repay it over 5 years scrapped
This new £15 billion support package is targeted towards millions of low-income households and brings the total cost of living support to £37 billion.
New temporary Energy Profits Levy on oil and gas firms will raise around £5 billion over the next year to help with cost of living, with a new investment allowance to encourage firms to invest in oil and gas extraction in the UK.

Millions of households across the UK will benefit from a new £15 billion package of targeted UK government support to help with the rising cost of living, the Chancellor announced yesterday.

The significant intervention includes a new, one-off £650 payment to more than 8 million low-income households on Universal Credit, Tax Credits and legacy benefits to be made in two tranches starting in the summer, with separate one-off payments of £300 to pensioner households and £150 to individuals receiving disability benefits – groups who are most vulnerable to rising prices.

Rishi Sunak also announced that the energy bills discount due to come in from October is being doubled from £200 to £400, while the requirement to pay it back will be scrapped. This means the vast majority of households will receive a £400 discount on their energy bills from October.

The new Cost of Living Support package will mean that the most vulnerable households in Scotland will receive over £1,000 of extra support this year.

To ensure there is support for everyone who needs it, Mr Sunak also announced a £500 million increase for the Household Support Fund. This brings the total Household Support Fund to £1.5 billion.

To help pay for the extra support – which takes the total direct government cost of living support to £37 billion – Mr Sunak said a new temporary 25% Energy Profits Levy would be introduced for oil and gas companies, reflecting their extraordinary profits. At the same time, in order to increase the incentive to invest the new levy will include a generous new 80% investment allowance. This balanced approach allows the government to deliver support to families, while encouraging investment and growth.

The Chancellor of the Exchequer Rishi Sunak said: ““I know that people in Scotland are anxious about keeping up with rising energy bills, which is why today we have introduced measures which will take the support for millions of the lowest income households over £1,000.

“As a nation we have a responsibility to help the most vulnerable, which is why this support is mostly targeted at people on low incomes, pensioners and disabled people. But we understand that all households in Scotland will be concerned about the rise in energy costs this Autumn, so every household is set to get £400 off their energy bills from October, with no repayments necessary.

“It is right that companies making extraordinary windfall profits from rising energy prices should contribute, and I’m introducing a temporary energy profits levy to help pay for this support, while still encouraging the investment that generates jobs in Scotland.”

Scottish Secretary Alister Jack said: “Global issues are causing real pressures in the cost of living for UK families. We understand how tough it is at the moment for many households, which is why the Chancellor has today announced a further £15 billion support package.

“A total of £400 per household towards fuel bills will help protect families from rising energy costs. Cash payments of £650 for low-income households on means tested benefits will target support at the most vulnerable in our society at this difficult time. This comes on top of our existing £22bn support package.

“Some of these measures will be paid for by a temporary levy on oil and gas companies – one which incentivises investment in the UK’s energy security.”

There is now more certainty that households will need further support, with inflation having risen faster than forecast and Ofgem expecting a further rise in the energy price cap in October.

So as part of the UK government’s targeted support, the Chancellor announced that around eight million of the lowest income households on Universal Credit, Tax Credits, and legacy benefits will receive an automatic £650 cost of living payment in two instalments via the welfare system this year.

Yesterday’s announcement is on top of the government’s existing £22 billion cost of living support which includes February’s energy bills intervention and action taken at this year’s Spring Statement including a £330 tax cut for millions of workers through the NICs threshold increase in July and 5p cut to fuel duty.

Energy Profits Levy

Surging commodity prices, driven in part by Russia’s war on Ukraine, has meant that the oil and gas sector have been making extraordinary profits. Ministers have been clear that they want to see the sector reinvest these profits in oil and gas extraction in the UK.

In order both to fairly tax the extraordinary profits and encourage investment, the Chancellor announced a temporary new Energy Profits Levy with a generous investment allowance built in. This nearly doubles the tax relief available and means the more investment a firm makes, the less tax it will pay.

The new Levy will be charged on oil and gas company profits at a rate of 25% and is expected to raise around £5 billion in its first 12 months, which will go towards easing the burden on families. It will be temporary, and if oil and gas prices return to historically more normal levels, will be phased out.

The new Investment Allowance, similar in style to the super-deduction, incentivises companies to invest through saving them 91p for every £1 they invest. This nearly doubles the tax relief available and means the more a company invests, the less tax they will pay.

The government expects the combination of the Levy and the new investment allowance to lead to an overall increase in investment, and the OBR will take account of this policy in their next forecast.

The Levy does not apply to the electricity generation sector – where extraordinary profits are also being made due to the impact that rising gas prices have on the price paid for electricity in the UK market, which has also been making extraordinary profits partly due to record gas prices but also due to how the market works.

As set out in the Energy Security Strategy the government is consulting with the power generation sector and investors to drive forward energy market reforms and ensure that the price paid for electricity is more reflective of the costs of production.

The Chancellor announced yesterday that the Treasury will urgently evaluate the scale of these extraordinary profits and the appropriate steps to take.

During the announcement, the Chancellor also set out the government’s strategy to control inflation through independent monetary policy, fiscal responsibility, and supply side activism – a plan he said that should see inflation come down and returning to its target over time.

Finance Secretary Kate Forbes has welcomed the short term action announced by the Chancellor of the Exchequer, but warned more support is needed for households and businesses as the cost of living crisis worsens.

Following calls from the Scottish Government, the UK Government has taken steps to ensure that cash grants, rather than loans, are provided to those on lowest incomes. Ms Forbes has also cautiously welcomed the decision to introduce a Windfall Tax on energy companies benefiting from significant profits but commented that it means Scottish industry is disproportionately funding interventions across the UK.

Responding to the Chancellor’s statement, Ms Forbes has said UK Ministers should have acted earlier and gone further to provide more support that would make a real long term impact, including following the Scottish Government’s lead by doubling the Scottish Child Payment to £20 per week – which is due to increase to £25 from late 2022 helping lift an estimated 50,000 children out of poverty in 2023-24.

Ms Forbes said: “Many households will be relieved to see the support belatedly announced today, but we still need a long term solution to the cost of living crisis and reassurance that the UK Government is going to tackle long term inequalities rather than provide one-off bursts of crisis support.

“Rather than listen to our plea for a comprehensive funding package that fully addresses the unprecedented rise in the cost of living and uses the full £30 billion of fiscal headroom, this piecemeal approach makes it highly likely that more support will be needed later when energy prices rise significantly in the autumn.

“There is also a severe lack of support for businesses – many of them are still struggling to recover from the pandemic and now face crippling increases in energy costs and the damaging impacts of Brexit on supply chains and the labour market. Without urgent economic support there is a real risk that the UK economy is heading for a recession.

“Inflation is at its highest levels in 40 years and the UK Government’s failure to fully invest in increasing incomes, tackling inequality and boosting economic competitiveness will only risk pushing households into further debt and poverty

“The UK Government has almost £30 billion of fiscal headroom, spending only half of this during a cost of living crisis does not go far enough, especially when a further £5 billion from the Windfall Tax will be raised.

“The introduction of a windfall tax is a start, but as a stand-alone measure this means Scottish industry is carrying the weight of UK-wide interventions.

“The removal of the £20 Universal Credit uplift last year was a hammer blow to hard pressed families and the Chancellor’s failure to restore it and increase it to £25 only places a disproportionate burden on the shoulders of those who need help most. The statement was also worryingly silent on public-sector pay with no related consequential funding, when the lowest paid need urgent assurance in the face of rising inflation.

“The refusal to reverse the National Insurance increase implemented in April and temporarily suspend VAT on household energy bills will also cost families hundreds of pounds annually at a time when their budgets have never been more squeezed.

“The Scottish Government has already taken action to support people, communities and businesses as much as possible, with almost £770 million per year invested in cost of living support. We have increased eight Scottish benefits by 6%, closer to the rate of inflation, and introduced a range of family benefits not available elsewhere in the UK.”

Commenting on the government’s cost of living support package announced today (Thursday), TUC General Secretary Frances O’Grady said: “Unions have repeatedly called for an Emergency Budget to help families, and a windfall tax on energy companies.

“The Chancellor should have acted far sooner after his inadequate Spring Statement. His dither and delay has caused unnecessary hardship and worry for millions.

“While today’s intervention is badly needed, we should have never been here in the first place.

“Years of attacks on wages and universal credit have left many households on the brink.

“The government still doesn’t have a plan for giving families long-term financial security.

“With energy bills rising 23 times faster than wages we urgently need to get pay packets rising and to pay universal credit at a permanently higher rate – not just a one-off boost.

“That’s the best way to protect livelihoods and to support the economy.”

Spring Statement: Chancellor vows to ‘stand by hard-working families’

Chancellor expected to unveil Spring Statement that builds a stronger, more secure economy for the United Kingdom.
Rishi Sunak will set out further plans to support people with the rising cost of living and pledge to continue to “stand by” hard-working families during the challenging times ahead.
He will say that freedom and democracy remain the best route to peace, prosperity, and happiness and that a strong economy is fundamental in enabling us to counter the threat Russia poses to our values.

The Chancellor will today deliver a Spring Statement that ‘builds a stronger, more secure economy for the United Kingdom’.

With people across the UK facing growing pressures exacerbated by the war in Ukraine, Rishi Sunak will pledge to continue to “stand by” hard-working families and outline further plans to help with the rising cost of living.

Alongside Britain continuing its “unwavering” support to Ukraine, he will add that a stronger economy is vital in responding to the threat of President Putin and that freedom and democracy remain the best route to peace, prosperity, and happiness.

Delivering the Spring Statement, Chancellor Rishi Sunak is expected to say: “We will confront this challenge to our values not just in the arms and resources we send to Ukraine but in strengthening our economy here at home.

“So when I talk about security, yes – I mean responding to the war in Ukraine. But I also mean the security of a faster growing economy.

“The security of more resilient public finances. And security for working families as we help with the cost of living.”

The Chancellor’s statement is also expected to set out how the government plans to create a new culture of enterprise, with the private sector training more, investing more, and innovating more.

The Spring Statement will build on UK government support worth around £21 billion this year and next to help families with the cost of living.

That includes the £9.1 billion Energy Bills Rebate, putting an average of £1,000 more per year into the pockets of working families via changes to Universal Credit and freezing fuel and alcohol duties to keep costs down.

The Government is also raising the National Living Wage to £9.50 per hour from April, meaning people working full time on the National Living Wage will see a £1,000 increase in their annual earnings.

And the Government’s Plan for Jobs is also helping people into work and giving them the skills they need to progress – the best approach to managing the cost of living in the long term.

Bold action needed to tackle cost of living

The UK Government must take bold and decisive action to help protect people from soaring living costs, according to Holyrood Finance Secretary Kate Forbes.

Speaking ahead of the Spring Statement, Ms Forbes said the Chancellor of the Exchequer must use every tool available to provide support through what is expected to be a turbulent period of economic uncertainty.

Finance Secretary Kate Forbes said: “This is not a time to be ducking the considerable challenges we face, and I expect the Chancellor to use the Spring Statement to outline significant actions to support households and businesses, considering that most of the relevant powers are reserved to the UK Government.

“The Scottish Government is doing all it can to help those most in need. We are uprating eight Scottish benefits by 6% from 1 April as well as doubling our Scottish Child Payment to £20 per week per eligible child. I call again on the UK Government to follow our lead and uprate social security benefits by 6%.”

The Scottish Government has called on the Chancellor to:

increase benefits at a higher rate, closer to inflation
implement business relief on National Insurance contributions
provide immediate funding to sectors directly impacted by the Russia/Ukraine conflict
remove/reduce VAT on household energy bills
take VAT off energy efficient and zero emissions heat equipment and products
provide powers to implement flexible working, to get more people into jobs
deliver two extra Cold Weather Payments – one immediately and another in winter 2022-23 when energy bills will have risen again.

Read the Finance Secretary’s letter in full here.

Commenting on today’s (Wednesday) inflation figures, which show CPI inflation rising to a 30-year high of 6.2% in February, TUC General Secretary Frances O’Grady said: “The Chancellor must respond to high inflation today with much greater help for families with soaring bills and a plan to get wages rising.

“Families need grants, not loans to help with soaring energy bills. These should be funded by a windfall tax on excess profits from gas and oil. Universal credit should get a boost to help families keep up with the rising cost of living.

“And we need a comprehensive plan to get wages rising, including new pay bargaining rights for workers and their unions.”

Kate Forbes: Urgent action needed to tackle cost of living

Scotland’s Finance Secretary writes to Treasury ahead of Spring Statement

People and businesses need urgent UK Government support to mitigate the rising cost of living, says Finance Secretary Kate Forbes.

In a letter to the Chancellor of the Exchequer Rishi Sunak ahead of the Spring Statement, Ms Forbes called on UK Ministers to match the 6% uprate on social security benefits which the Scottish Government is delivering on eight of the benefits it delivers, and for further payments to be made to low income households through the Cold Weather Payment

The letter to the UK Government also calls for:

more targeted funding to business sectors directly affected by the conflict in Ukraine
relief to business on National Insurance Contributions
the removal of VAT from energy efficient and zero emission heat equipment and products
greater powers for the Scottish Government to work with employers to implement flexible working
full replacement of EU funding lost to Scotland as a result of Brexit, as promised by the UK Government

The Scottish Government ‘stands ready’ to work with the UK Government, which holds the powers to tackle the most pressing issues, to put a package of support in place.

Ms Forbes said: “In Scotland we are doing all we can to ensure people, communities and businesses are given as much support as possible to deal with the rising cost of living and the potential economic implications of Russia’s illegal invasion of Ukraine.

“However, many of the powers required to really tackle these issues are reserved to the UK Government, which is why I am calling on the Chancellor to take much needed action in his Spring Statement.

“The Scottish Government is uprating eight Scottish benefits by 6% from 1 April as well as doubling our Scottish Child Payment from £10 per week per eligible child to £20. We are using our powers to help those who need us most in these difficult times and it is time for the UK Government to follow our lead and uprate social security benefits by 6%.

“I would also ask for further immediate support to be delivered through the Cold Weather Payment, with an additional payment now and another next winter when we know energy bills will have risen again.”

Read the letter in full here.

CabSeclettertoChancellor-prespringstatement22 Download

Stricter measures to limit the spread of Omicron come into effect today

New guidance to help limit the rapid spread of the Omicron variant in Scotland has been published. This latest guidance took effect from 00.01 this morning (Friday 17 December).

Businesses will now be legally required to take reasonable measures to minimise transmission of coronavirus (COVID-19).

The guidance will support businesses to put in place a range of public health measures that will help keep people safe, including enabling home working for those who are able to work from home – something that is key to breaking chains of transmission.

Masks should be worn in all businesses, and retail and hospitality businesses should consider ‘reasonable measures’ to reduce crowding and manage queues.

Workplace testing is being extended and businesses with more than 10 employees are encouraged to sign up to receive free lateral flow test kits to ensure staff are able to test regularly.

To help mitigate further economic harm as a result of this vital public health guidance, a £100 million financial package for eligible businesses is also being established to support them through this period. £100 million for self-isolation support grants is also being made available to those who need it.

The Economy Secretary is engaging with affected business groups and details of the funding is to be set out shortly.

Economy Secretary Kate Forbes said yesterday: “The Omicron variant is spreading at a rapid pace and we have had to work extremely quickly to get revised guidance in place for businesses, to take effect from 00.01 Friday 17 December.

“It is crucial that everyone follows this guidance to support businesses to keep their premises safe and prevent transmission of Omicron, especially as we ramp up booster vaccinations. Please get your booster, test regularly, follow the guidance, wear a mask and distance from people when you’re out and about. All of these layers of protection will help to limit the spread of Omicron, especially as we approach the festive period.

“I am also making a plea to be considerate to staff who are doing their best during this challenging period.

“In addition to guidance, we know that businesses need financial support now. We are working to get funding out to businesses as soon as we can but the Treasury must also step up and provide urgent funding beyond what we are able to provide.

“I wrote to the Chancellor last night and the First Minister has requested talks with the Prime Minister – this situation is serious and we need the UK Government to engage with us on further support.”

Read the Safer Businesses and Workplaces guidance

Read the Tourism and Hospitality sector guidance

Majority of Scots support immediate doubling of Scottish Child Payment, new poll finds

A majority of people in Scotland support next month’s Scottish Government budget being used to double the Scottish Child Payment immediately, new polling released today has found, as campaigners continue to press for Kate Forbes, Cabinet Secretary for Finance and the Economy, to back the move.

The polling, conducted by Survation for the End Child Poverty coalition in Scotland, revealed that – once ‘don’t knows’ were excluded – 68% of people in Scotland support the immediate doubling of the benefit for low income families.

Among those who voted for the SNP at May’s Holyrood elections, this figure jumped to 74%. Young people aged 16-34 were even more likely to back the call, with that figure reaching 79% in favour.

It comes amid mounting pressure on the Scottish Government to respond with urgency to what campaigners are calling a “rising tide of child poverty” across Scotland. On 18^th November, over 100 organisations from across Scotland wrote to Kate Forbes urging her to “do the right thing” and use December’s budget to double the payment.

While the Scottish Government have said the payment will be doubled ‘as soon as possible’ during the course of this Scottish Parliament, as of yet they have resisted calls to do so immediately. But anti-poverty campaigners have warned that, unless the Finance Secretary uses December’s budget to act immediately, Scotland’s child poverty targets risk failure.

Responding to the poll findings, Peter Kelly (Director, Poverty Alliance) said: “In Scotland, people believe in protecting one another and in doing the right thing. As this new polling makes clear, they overwhelmingly support taking action now to stem the rising tide of child poverty.

“Children and families living in the grip of poverty right now simply cannot wait. Scottish ministers must listen to people across the country who are calling on them to do the right thing, and double the Scottish Child Payment now.”

Polly Jones (Head of Scotland, Trussell Trust) said: “Families across Scotland are facing a really difficult winter. Right now, food banks in the Trussell Trust network in Scotland are giving out a food parcel every three minutes to people in crisis.

“This isn’t right, especially when we have the power to change this. Doubling the Scottish Child Payment now would be a huge boost to Scotland’s struggling families and I hope Ministers will listen to the public and act.”

Claire Telfer, head of Scotland, Save the Children, said: “This polling confirms what we know and what we’re hearing from parents and families across Scotland: the Scottish Child Payment is making a huge difference but it’s not going far enough and it needs to be doubled.

“Just last week a parent told us ‘Doubling the Scottish Child Payment would make a massive difference, any extra money a week would help.

“We know that many families with young children in Scotland are struggling to make ends meet, parents are going without food or not putting the heating on, to care for their children.

“As a society we can – and must – do better. Next month’s budget is a golden opportunity to act now and support families and drive down poverty by doubling the Scottish Child Payment.”

Green budget deal sealed

More than 200,000 additional children to receive free school meals

More than 200,000 additional primary school children will receive free school meals, including over 17,300 in City of Edinburgh, over 4,900 in East Lothian, over 4,400 in Midlothian and over 8,800 in West Lothian thanks to a budget deal struck between the SNP and the Scottish Greens.

The deal will see free school meals provision expanded to all primary children by next summer, phased in on a timetable agreed with local councils, and ensure that those currently eligible get free meals throughout the school holidays.

The agreement will ensure passage of the Scottish Government’s budget through parliament.

Finance Secretary Kate Forbes has struck a deal which guarantees the Budget Bill can clear its final stages.

It will see the phased introduction of free school meals for all primary pupils, an enhanced public sector pay deal, new Pandemic Support Payments and additional funding to support environmental, active travel and energy efficiency initiatives.

Talks are continuing ahead of tomorrow’s Stage 3 debate with the Scottish Liberal Democrats, who voted for the budget at Stage 1 in exchange for increased spending on mental health, business support and education recovery.

The new commitments build on the budget’s existing measures to address the challenges of the ongoing pandemic and lay the foundations for recovery. These include meeting the main ask of business by extending 100% rates relief for the retail, hospitality, leisure, aviation and newspaper sectors for a further 12 months – considerably exceeding the relief offered in England – supporting families by allocating money for a council tax freeze and providing record £16 billion to the NHS.

The new initiatives will be funded mainly from the unallocated balance of funding from last week’s UK budget.

They include:

Pandemic Support Payments of £130 to households receiving Council Tax Reduction and two payments of £100 to families of children qualifying for free school meals
the phased introduction of free school meals to all primary school children by August 2022
an £800 pay rise for public sector workers earning up to £25,000, and a 2% increase for those earning over £25,000 up to £40,000.
extending free bus travel to under 22s
£40 million to support the green recovery, including a further £15 million for active travel, £10 million for energy efficiency, £10 million for biodiversity and £5 million for agri-environmental measures

Ms Forbes said: “We continue to face unprecedented challenges and I have sought to engage constructively to deliver a budget that meets the needs of the nation.

“I would like to thank all parties for the positive way they have participated in this process. The budget addresses key issues raised by every party and I hope all MSPs feel able to support it. We have reached an agreement with the Scottish Greens and I am hopeful about the outcome of my continuing talks with the Liberal Democrats.

“Today I can announce that we are able to go further in offering a fair and affordable pay settlement to the public sector workers to whom we owe so much through the pandemic, particularly the lowest paid.

“The budget already contains measures to help struggling families, but in this deal we are also announcing details of a £100 million programme of one-off Pandemic Support Payments. And we commit to providing free school meals to every primary school pupil by August 2022, with expansion for P4s starting after this year’s summer holidays.

“A green recovery lies at the heart of the Scottish Government’s policies and today we are delivering significant new investments in energy efficiency and active travel, while providing additional funding to support biodiversity and make our agriculture more environmentally-friendly.

“And, as we rebuild from Covid, we will support our young people by extending our original commitment to concessionary travel for all under 19s to include everyone up to age 22, giving all 18-21 year olds free bus travel.

“Every penny made available to us to tackle the pandemic has been allocated. These remain difficult times, but this budget puts us on the path to a fairer, greener and more prosperous Scotland.”

Scottish Greens Lothian MSP Alison Johnstone said: “I am absolutely delighted that our budget deal ensures that all primary school children will receive free school meals from the summer of 2022, with p4 pupils getting them from this summer and p5 from January.”

“I know this news will be welcomed by the families who will benefit from this forward-thinking policy. Knowing that every primary school child will benefit from a healthy meal every day will make a huge difference to families’ finances and wellbeing.”

All P1-P3 pupils currently get free school meals. The Green deal will expand this to P4 in August 2021, P5 in January 2022, and P6 and P7 children in August 2022.

£49.5m has been allocated to fund this this year, and £112m next year.

Scottish Government ‘no longer clapping for carers’

Responding to the Finance Secretary’s comments to the Finance and Constitution Committee meeting this morning on social care pay, Rhea Wolfson of the GMB Scotland Women’s Campaign Unit said: “On International Women’s Day Kate Forbes has cut a budget deal with the Greens that sells short tens of thousands of women across the social care sector – and what’s worse is the Finance Secretary used our NHS nurses as a reason for not delivering a £15 an hour minimum.

“The fight for a £15 social care minimum hasn’t been “plucked out of a hat”. What our members are asking politicians to do is support the objective of bringing social care pay into line with the average hourly rate of pay, to help tackle the recruitment crisis in care and to ensure a chronically exploited workforce are properly valued for the work they do.

“The Scottish Government claimed it wanted to put social care on an equal footing with the NHS and the Feeley Review has shown that a significant investment in social care and its workers could have a transformative effect on our economy and society.

“After the tragic events of the last year, a golden opportunity was there to do the right thing by our care workers but instead the Finance Secretary has chosen to pit key worker against key worker to keep one group mired in low-pay.

“It’s clear the Scottish Government is no longer clapping for our carers.”

Responding to the amended Scottish Budget with improvements in public sector pay policy, expanded access to free school meals and additional payments to less well-off households, STUC General Secretary Roz Foyer said: “We have strongly pressed the Scottish Government to reject the real terms pay cuts approach of the Tories at Westminster and we recognise the different course that the Finance Secretary has taken on Public Sector Pay Policy in Scotland.

“We welcome the Scottish Greens’ intervention to press for a better deal for public sector workers, the expansion of free school meal to all primary children and additional payments to poorer households.

“But revising public sector pay policy is less than half of the story. We remain deeply concerned that pay commitments must be funded across the public sector. Local councils continue to be starved of funding despite delivering so many of our essential public services and with so many workers who deliver those services being underpaid and undervalued.

“Nowhere is this more the case than for our social care workers in the public, third and private sectors. The Cabinet Secretary indicated that this will not be the final budget revision of the year and that she will respect the outcome of a collectively bargained pay deal for the care sector.

“To make this commitment meaningful and to address the scandal of low pay, the Government must commit to fund that deal and we intend to campaign hard to hold them to this.”

“The proposed extension of free schools meals to all primary aged children is an important step towards our campaign goal of achieving universal provision for all secondary school, primary school and nursery children. We intend to continue that campaign.”

Non-domestic rates relief extended

Extra money for mental health, education and tackling poverty

Retail, hospitality, leisure and aviation businesses will pay no rates during 2021-22 under proposals outlined yesterday.

It is one of a series of measures proposed by Finance Secretary Kate Forbes following confirmation of a further £1.1 billion of consequential funding arising from UK Government coronavirus (COVID-19) spending.

The move builds on the three month rates relief extension announced in the Scottish Budget and will be taken forward provided the Scottish Government receives the funding already assumed from the UK Budget on 3 March, and that requisite funds are available to maintain existing support into 2021-22.

Newspapers will also continue to benefit from 100% relief for a further 12 months, while charitable rates relief will not be removed from mainstream independent schools until 1 April 2022 due to the ongoing impact of the pandemic.

Other extra spending in 2021-22 arising from the latest consequentials includes:

£120 million for mental health
£120 million for affordable housing
£100 million to support people on low incomes
£60 million for schools to help pupils catch-up on missed education
£60 million for NHS recovery
£45 million for heat decarbonisation, energy efficiency and fuel poverty
£21.5 million for Scottish Enterprise

Separately, local authorities will receive an extra £275 million in the current financial year to address COVID-19 pressures, while a further £40 million is being made available to support the safe reopening of schools.

Ms Forbes said: “When I presented our budget last month I guaranteed to extend non-domestic rates relief further if I was given the necessary resources. I can now deliver on that promise, providing the UK Budget in March delivers the funding we require.

“The other measures I am proposing today, including further support for hospitals, schools and local government and measures to tackle climate change, build on our priorities to ensure a robust recovery for our economy and public services.

“This welcome additional consequential funding was confirmed to us yesterday and I wanted give early notice to parliament and provide clarity to businesses.

“We are still in the throes of a national emergency and it is important Parliament works together to respond. I will continue to work with all parties to help deliver a budget for the nation fit for these times.”

Responding to the Scottish Government’s announcement, CAMRA’s Scotland Director Joe Crawford said: “Extending the business rates holiday for another 12 months is some welcome news for our struggling pubs and gives licensees much needed certainty that they won’t have to find money to pay rates bills this summer.

“But our pubs and clubs will continue to need additional, dedicated financial support in the weeks and months ahead to see them through to the other side of this crisis.

“That’s why CAMRA is urging the Chancellor to use the upcoming Budget to help pubs thrive – by continuing the VAT reduction and extending it to alcohol so traditional locals that don’t serve food can benefit too and keeping furlough as long as trading restrictions are in place – even if that is for longer than it is in England.

“CAMRA also wants to see a lower rate of duty on beer served on tap in pubs and clubs to help encourage people back to their local when they reopen, and level the playing field with supermarkets.”

A copy of the Finance Secretary’s Budget Update statement to the Scottish Parliament is available online.