Credit unions will be encouraging children to manage their money through new Junior Savers Schemes, Communities Secretary Angela Constance has announced. Ten credit unions working in areas like Aberdeen, Dumfries and Galloway, West Lothian and Stirling are set to receive a share of nearly £200,000 to set up new projects in schools. Continue reading Investing in junior savers
First Minister Nicola Sturgeon has announced measures to support and stimulate the economy in the wake of the EU referendum.
Capital spending on projects to support and create employment will be accelerated, starting with an additional £100 million of funding in this financial year. The capital funding will be used to speed up delivery of health and other infrastructure projects.
Projects will be assessed for accelerated funding against a range of criteria including how quickly work can start, the number of jobs that will be supported or created, the likely impact on the supply chain and geographic spread.
The Scottish Government will also set up a new dedicated service to provide information and support to businesses affected by the EU referendum, while a new Post-Referendum Business Network will work closely with the main business bodies, the STUC and the Scotland Office.
The plans were announced at the Golden Jubilee which will receive an extra £5 million to bring expansion of its elective centre forward from 2018-19 to this year.
Further details of the Capital Acceleration Programme, including the projects to be supported by the initial £100 million of additional funding and details of funding for future years, will be announced in due course.
The First Minister also called on the UK Government to give early certainty about EU Structural Funds and to urgently announce its own economic stimulus package, which would enable the Scottish Government to do even more to accelerate capital spending.
The First Minister said: “As I have made clear since the EU referendum, the Scottish Government will pursue all possible options to protect Scotland’s relationship with the EU and ensure that our voice is heard.
“However, it is also important to act now to support and stimulate the economy.
“Scotland is and remains an attractive and stable place to do business – however, there is no doubt that the referendum outcome has created deep and widespread uncertainty, with the impact on jobs and investment already being felt.
“The UK Government has not yet taken any meaningful action to alleviate uncertainty or to boost confidence.
“Scotland is and remains an attractive and stable place to do business – however, there is no doubt that the referendum outcome has created deep and widespread uncertainty, with the impact on jobs and investment already being felt.
“The UK Government has not yet taken any meaningful action to alleviate uncertainty or to boost confidence, and there are very real concerns that the damage to the economy and to jobs will be severe and long lasting.
“It is against this background that the Scottish Government is announcing early action to boost confidence, stimulate economic activity and support business.
“Our Infrastructure Investment Plan is already delivering major infrastructure improvements, with projects worth almost £6 billion currently under construction – we will now inject a further £100 million of spending this year to accelerate planned projects.
“We will also provide business with wider support to help them navigate the uncertainty caused by the referendum result. Business organisations have asked for a single point of contact and we will shortly launch a new Business Information Service that will provide up-to-date information and advice, and answer questions from individual businesses, going some way to alleviate business concerns about the future.
“We will also establish a new Post-Referendum Business Network, to work more closely and collaboratively with the main business bodies, the STUC and the Scotland Office to help shape future policy and support for business.
“These three initial measures will help support new and existing jobs and alleviate business concerns at this difficult time.
“However, it is important that the UK government also acts and I am calling today for urgent action on two fronts – firstly, early assurance about EU Structural Funds and, second, a UK wide stimulus package which, through consequential funding, would enable the Scottish Government to do more to accelerate capital spending.”
The STUC has welcomed the announcement. STUC General Secretary Grahame Smith said: “The STUC strongly endorses the approach set out by the First Minister today. The Scottish economy, already weak due to the downturn in the oil and gas sector, risks falling into technical recession as a result of Brexit induced uncertainty. In this context it is important that the Scottish Government accelerates capital projects where feasible in order to support employment.
“The First Minister is also entirely justified in calling on the UK Government to act swiftly to help minimise the economic consequences of their calamitous handling of the referendum and its aftermath. With borrowing costs at a historic low, now is the time to invest to support jobs in the present and increase the economy’s capacity to grow sustainably in the future.
“The STUC looks forward to making a positive contribution as a member of the new Post Referendum Business Network.”
Employers organisation CBI Scotland also welcomed the infrastructure investment. Hugh Aitken, CBI Scotland Director, said: “We welcome the Scottish Government’s commitment to boosting growth through infrastructure spending and look forward to seeing more details.
“Progress on the Glasgow airport link, together with improvements to the A82, A96 and A9 are projects previously identified by businesses as vital, alongside advances in digital infrastructure.
“Firms will also be encouraged by the Scottish Government’s pledge to work closely with the Scotland Office as it engages with firms following the EU Referendum.
“Our members stand ready to work alongside both the Scottish and the UK Governments as companies seek clarity on trade, regulation, access to talent and protection for the economic and social benefits of EU funded projects.
“As options for the future take shape, it will be more important than ever for both governments to partner with businesses in navigating their approach.”
Opposition parties do not believe the stimulus is enough, however. Scotland Secretary David Mundell said Ms Sturgeon should rule out a second independence referendum to restore business confidence, while Labour’s Jackie Baillie said the £100 million commitment ‘feels like a drop in the ocean‘.
Scottish Labour Economy spokesperson Jackie Baillie said: “It is welcome that the First Minister has agreed with Labour’s calls to bring forward infrastructure spending to stimulate the economy, although the SNP could be much bolder with this investment.
“For context the SNP announced £100 million today – the Queen Elizabeth University Hospital in Glasgow cost £850 million and the Queensferry Crossing will cost over £1 billion. Any investment is welcome but this feels like a drop in the ocean.
“Labour outlined a series of policies in our Brexit Action Plan two weeks ago including the establishment of a Brexit support fund for at risk sectors. The SNP Government should adopt this Labour policy to give support to key industries.
“Today’s announcement must be only the start of the increased investment. Nicola Sturgeon must stop the cuts her government is imposing on public services in Scotland. The SNP Government is cutting hundreds of millions of pounds from schools and local services, our police force is facing cuts and our health boards are tens of millions in the red. It is not sustainable. Any post-Brexit stimulus from both the SNP and Tory Governments must include an end to austerity.
“Labour will continue to make the case to use the new tax powers of the Scottish Parliament to invest in our economy and stop the cuts to public services. The recent interventions from senior SNP figures like Kenny MacAskill show that a debate about tax is very much back on the agenda.”
You can read Labour’s Post Brexit Action Plan here
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GMB Scotland is among the organisations who will lobby Holyrood this afternoon and call on the Scottish government to end the eight-year Council Tax freeze. Continue reading Protest at parliament over council tax freeze
On the eve of Edinburgh’s crucial budget meeting, JIMMY BURNETT argues that the SNP government must end the Council Tax freeze – NOW
Local Government is in crisis. And it is a crisis for which councils bear little or no responsibility.
The Scottish Government has made successive cuts in support for local government, culminating in this year’s savage £550 million reduction. This coupled with the continuing imposition of the SNP-enforced nine year long council tax freeze, has forced local councils, like Edinburgh, into implementing cuts on a scale, never before envisaged.
And to make matters worse, the council tax freeze has seen the better off benefit by three times as much as people at the bottom of the scale – and of course the poorest section of society, who receive full or partial council tax relief, save not one penny.
In addition, as pointed out by Unison, councils, in dire need of alternative resources, have partially plugged the gap, by increasing service charges. Charges which of course, hit the lower paid harder, as the recent “ Close the Gap” report highlighted.
Since 2007, 40,000 jobs have gone in local authorities across Scotland.
Vulnerable and older peoples service have been particularly hit. 13,000 fewer people receive a Home Care Service than was the case a mere six years ago. Service charges for vulnerable people have risen by 11.5 million since 2010.
Here in Edinburgh, the Council is being forced to inflict almost £90 million cuts on crucial services. Yet they cannot even consider raising their council tax , without immediately receiving further cuts in resources from the Scottish Government.
Lets have a quick look at the figures. A council tax rise of 3% in Edinburgh would raise 7 million, a relatively small sum, but still enough to make some contribution to saving crucial services. This would cost Band A households 45p per week, Band D householders 67p per week and Band H householders – those in the highest valued houses – £1.35 per week.
Surely not too much to ask, when people are dying in Edinburgh while waiting for care packages to be provided?
But there is a catch. A 3% rise would in reality, unless the Scottish Government chose to lift their penalty system, would raise precisely nothing for services: the Scottish Government would immediately claw back £7 million from the council. So much for local democracy and accountability!
Since 2,007, the Scottish Government, have chosen to earmark a staggering £2.5 billion to finance the council tax freeze. This is public money. Money being spent on services , but only if councils agree to freeze their council tax. As a result councils across Scotland have been denied their democratic right to raise taxes locally and be accountable to the electorate for that rise.
So the council tax freeze is unfair. The better off have had savings three times the level of the less well off.
The council tax freeze has deprived councils of their democratic right to raise much needed resources for local services.
The Scottish Government-imposed council tax freeze is anti democratic, as it removes local accountability.
Even at this late stage, the Scottish Government, AT NO COST TO THEM WHATSOEVER, could choose to end this unfair freeze. And they could, and should, allow councils to raise their tax with no penalty clawback.
But they are unlikely to do so. And have said as much. This is an election year, and therefore, it appears, that because they believe the freeze to be popular, they are prepared to see services sacrificed, jobs lost and people suffer.
And the irony is that they appear to be able to do so, with virtually no criticism, whilst it is councils, who they are forcing to make cuts, who are bearing the brunt of the ire of the general public!
Jimmy Burnett was Housing and Finance Chair of Edinburgh District Council
Let them know what matters to you!
Time’s running out to have your say on the city council’s budget proposals – the consultation closes on Thursday 17 December. Continue reading Have your say on city’s budget
