Gordon Macdonald MSP said the Scottish Budget an “enormous step forward” in achieving the Scottish Government’s mission of eradicating child poverty in Edinburgh as progress begins in ending Labour’s two-child cap.
The two-child cap was introduced by the Tories as part of their programme of austerity and has been subsequently adopted by Labour as one of their policies, despite their previous promises to scrap it.
Across Scotland the cap impacts 83,000 children and 26,000 households – that’s 1,600 families in Edinburgh alone. By ending it the SNP government will lift 15,000 children out of poverty.
Commenting, the SNP MSP for Edinburgh Pentlands said: “The two-child cap is an abhorrent policy that has harmed 1,600 households in Edinburgh.
“Yet it is another Tory policy which Labour has adopted as one of their own.
“With 83,000 children across Scotland impacted, it is right that this SNP Government has made the decision to end the cap once and for all – lifting 15,000 children out of poverty and making progress on the key mission of this government: to eradicate child poverty once and for all.
“It is disappointing that the Labour UK government has chosen to maintain the cap, and I would urge their colleagues in the Scottish Parliament to choose differently and back this budget; made for Scotland, by Scotland.”
It was a Scottish Budget where what was left unsaid was just as consequential as what Shona Robison mentioned in her 30-minute statement to the Scottish Parliament (writes the staff team at FRASER of ALLANDER INSTITUTE).
The Scottish Government will be hoping for many of the headlines to focus on the mitigation of the effect of the two-child limit from 2026-27. The Finance Secretary left this until last in the order to ensure maximum impact.
A very political announcement, then, given the timing of the election, and one that has no money attached to it (as far as we can tell) in the 2025-26 financial year – the year this Budget actually refers to. See more on this below.
There were also significant announcements on health spending, which is forecast to rise by 3.6% in real terms – significant growth, although as we have said frequently, how and where it is spent matters just as much as the envelope. There were also increases to the affordable housing supply programme, which was cut by a quarter last year but is now just only 2.5% below 2023-24 in real terms.
At this point, we must welcome the change in presentation of the Scottish Government’s plans, which are now compared with their best estimate of the position for the current financial year. This has helped us meaningfully scrutinise plans, although some wrinkles remain to be ironed out such as in-year transfers to local government, and which we hope will be baselined in future.
Two-child limit
The biggest surprise in the budget (although social media had got wind of it slightly ahead of time) was the promise to ‘mitigate, as far as possible, the impacts of the two-child limit from 2026.’
This was clearly a last-minute addition to the budget. The Scottish Fiscal Commission (SFC) stated they received it too late to add to their figures, and too late for any analysis to be included in the budget document itself or the Equality and Fairer Scotland Budget Statement. This lack of detail is troubling given the potential cost of funding this is likely to be in the region of £200m. There are far too many unknowns to say anything conclusive about impact, but there is no doubt that it would boost efforts towards the statutory child poverty targets (albeit not by nearly enough to meet them by just doing this alone).
How will the Scottish Government fund this? Well, they may be hoping that they won’t have to, and the UK Government will announce the abolition of the policy UK wide (which is widely expected to happen at some point) before the Scottish Government have to put their hands in their pocket.
Whilst early 2026 is their target date, this was heavily caveated in the statement as being dependent on the UK Government giving the Scottish Government the data to allow them to operationalise it. Given recent experience of rolling out the Scottish Child Payment, which took years, there are plenty of reasons why this may take longer than those target timescales set out. Yet in the meantime, the Scottish Government can take the moral high ground.
Relief for hospitality businesses
The Finance Secretary announced a 40% relief for small hospitality businesses that at first glance could appear very similar to the 40% relief offered by Rachel Reeves for retail, hospitality and leisure (RHL) businesses. However, it is a much more limited measure than the one offered in England – just for hospitality only, and only for those businesses who are “small” i.e. have a rateable value of less than £51,000.
To give a sense of scale, the SFC have estimated that this relief will cost £22m: far short of the Barnett funding generated by the measure in England of £147m.
ScotWind funding (partially) restored
Early in her statement, the Finance Secretary announced that some of the ScotWind funding that had been drawn down to fill gaps in spending in the statement in September has not been used for day-to-day spending, and instead will be retained for capital spending in 2025-26 – “for exactly the kind of long-term investment it should be spent on.”
ScotWind monies are revenues generated from the sale of offshore wind licences to energy companies. As they are one-off windfall payments from the exploitation of Scotland’s resources, they should really be used to invest in infrastructure to ensure that Scotland’s economy benefits on an ongoing basis from this sale. In particular, it should be focussed on capital spending that helps with the energy transition.
However, it is still the case that some of this fund has been used to plug gaps in day-to-day spending, even if some of the money has now been returned. The Scottish Government has used £160 million for resource funding in 2024-25. Now, in 2025-26, the Scottish Government plans to use ScotWind mostly to support £326 million of capital spending, with £10 million still used for resource.
This leaves a remaining balance of £219 million to support capital or resource spending in future years. Here’s hoping it is explicitly set aside for investment spending.
Lessons learned?
A surprising decision was to not account for the certain increase in employment costs due to the employer National Insurance Contributions that will come into effect on 1 April. As we mentioned in the last few days, we expect this will cost around £500m, and it will be an ongoing cost as the increase is permanent.
The Scottish Government doesn’t yet have confirmation as to how much they will receive from the Treasury in compensation, but any of the figures discussed in the media will be below that amount – perhaps around £300m. This means that the Scottish Government has a £200m shortfall in funding – perhaps more if it decides to compensate arms-length organisations providing public services.
What we have learned from the SFC’s documents, however, is that this shortfall remains unaccounted for in the Scottish Government’s budgeting. This is an extremely risky approach, and one which sets up a possible need for further emergency measures during the course of the next financial year – leaving us wondering whether any lessons have been learned from going into a new year without fully setting aside budget cover for what are known costs, as highlighted by the recent Audit Scotland report.
Beyond next year, there are some difficult news on the income tax forecast as well. The Scottish Government is looking at a £700m negative reconciliation in 2027-28, largely due to a much larger deduction to the block grant related to 2024-25 than that which was built into that year’s budget. This is still an early forecast, and much might change until then – reconciliations have changed significantly in the past. But if it comes to pass, it’ll be at a point when growth in funding for public services will be slowing– meaning that difficult decisions have been kicked into the future rather than planned for.
IMPROVING NHS, SCRAPPING TWO CHILD CAP AND DELIVERING UNIVERSAL WINTER SUPPORT
The SNP Government’s Budget will deliver progress for Scotland, by Scotland – after listening carefully to the people of Scotland and taking action on their concerns.
SNP MSP for Edinburgh Pentlands Gordon Macdonald highlighted key SNP policies which will be taken forward in the Budget which will benefit people in Edinburgh including:
· Record levels of NHS funding – throwing the weight of the government behind NHS improvement
· Reintroducing universal winter heating payments for pensioners after they were axed by the UK Labour Government
· Scrapping Labour’s Two Child Cap – lifting 15,000 children out of poverty
· Increased investment in housing, supporting the delivery of 8,000 homes
· Delivering a fair tax system – meaning the majority of people in Scotland pay less tax than in the rest of the UK
Commenting Gordon said: “I am delighted at the support John Swinney’s first Budget is offering for people in Edinburgh. It will deliver real progress on people’s priorities – and will offer hope, putting in place the investment for Scotland to in the future.
“The First Minister has listened to what people have told him on the NHS – that’s why he is investing record amounts and throwing the whole weight of the government behind improving the health service, making it easier for people in Edinburgh to see their GP, bringing down waiting times, and funding the replacement of the Eye Pavilion in Edinburgh.
“People across Edinburgh have been let down by the UK Labour Government. While the UK Government’s Budget treated Scotland as an afterthought – this is a Budget that puts the people of Scotland first.
“While they cut winter fuel payments, the SNP is introducing universal support, while they push kids in Edinburgh into poverty with the cruel two-child cap, the SNP will scrap it and give thousands of kids a better chance in life.
“All this is being achieved while delivering the fairest tax system in the UK – with the majority of people in Scotland paying less tax than south of the border.
“This SNP Government have and will continue to listen to people’s concerns and take strong, decisive action to deliver on their priorities.”
OVER 178 MILLION FREE BUS JOURNEYS MADE IN SCOTLAND IN 2023/24
ENGLAND’S ELDERLY WAIT AN ADDITIONAL SIX YEARS FOR FREE BUS PASS
SNP MSP for Edinburgh Pentlands Gordon Macdonald has welcomed figures showing 35,785,216 free bus journeys have been made in Edinburgh this year, thanks to the SNP protecting free bus passes for the over 60’s and those with disabilities, as well as introducing free bus travel for the under 22’s.
In Scotland, the SNP Government has consistently protected free bus passes for everyone over 60, and disabled people, while also extending the scheme to injured veterans. By contrast, in England, pensioners only receive their free bus pass upon reaching the state pension age of 66 – six years later than is the case in Scotland.
The free bus travel scheme for under 22s, introduced in 2022, is helping young people across Edinburgh access work, education, and further training, free of charge. No equivalent scheme exists anywhere else in the UK.
In Edinburgh 35,785,216 free bus journeys have been made under these schemes in 2023/24, contributing to the over 178 million free journeys recorded across Scotland this year.
Commenting, MSP for Edinburgh Pentlands Gordon Macdonald, said:“The delivery of almost 36 million free bus journeys across Edinburgh this year is a fantastic achievement, that demonstrates the SNP Government’s commitment to improving mobility for our youngest, oldest, and most vulnerable citizens.
“These free bus passes are a lifeline for many, helping people access essential services, education, and employment.
“While the UK Labour Government is determined to strip pensioners of their Winter Fuel Payment – the SNP Government is supporting our pensioners by protecting the free bus pass from age 60 – unlike in England, where it’s issued at age 66.
“While the UK Labour Government is busy increasing tuition fees in England, we’re supporting our young people by introducing free bus passes to support them going to work, school, education or further training.
“The SNP is committed to continuing to support all of Scotland – and it’s important to celebrate the difference that SNP policies are making here in Edinburgh, with 35,785,216 of free bus journeys made this year under the free bus travel schemes – part of over 178 million free bus journeys made across Scotland this year.”
SNP MSP Gordon Macdonald has encouraged those across the city of Edinburgh who have not already applied for pension credit to do so by 22nd September to ensure they receive the Winter Fuel Payment this year.
Across the UK, 37% of those eligible do not claim pension credit, which is now a prerequisite for receiving the Winter Fuel Payment of £300 after the UK Labour government cut its universal provision as part of its austerity agenda.
16th – 22nd September 2024 is qualifying week for those who are eligible for the payment this year, however over 800,000 pensioners across Scotland are now set to lose out.
Commenting, Gordon Macdonald said: “The abhorrent decision by the Labour UK government to cut the Winter Fuel payment has put thousands of pensioners in an unimaginable situation.
“As a result, 67,555 across Edinburgh will miss out on the payment altogether whilst some who are eligible are also in danger of missing out.
“The SNP are clear; this is a cruel and inexplicable decision by the Labour government that leaves pensioners across the city worse off.
“If you have not already done so, please check your eligibility and apply for pension credit by the end of this week to ensure you don’t miss out on vital support this winter.”
Councils will receive a share of an additional £40m this year to increase the supply of social and affordable homes.
The funding, which was confirmed in April and has boosted the affordable housing supply programme budget to nearly £600m this year, will mostly be distributed to the five council areas with sustained temporary accommodation pressures: Edinburgh, Fife, Glasgow, South Lanarkshire and West Lothian.
The money will be used to purchase properties to help reduce the number of families in temporary accommodation or, where appropriate, to bring long term voids back into use.
The remaining 27 local authorities will receive a share of the remaining funding. A further £40m will be allocated to councils next year.
Housing Minister Paul McLennan said: “The delivery of affordable homes is the foundation of family life and is fundamental to how we achieve our priorities of eradicating child poverty and growing the economy.
“The key to tackling homelessness and reducing the time spent by families in temporary accommodation is to deliver more affordable homes.
“We have already supported councils to purchase almost 1,500 properties in 2023-24 for use as affordable homes. However, we must do more and, by committing £40m this year, we are accelerating that work.
“This money will help councils provide a warm, safe place that families can call home again.”
MSP for Edinburgh Pentlands, Gordon Macdonald has welcomed the SNP Scottish Government announcement of £40 million for councils across Scotland, including almost £15 million for Edinburgh, to boost the supply of affordable homes.
First Minister John Swinney outlined in the Programme for Government that £600 million would be committed to affordable housing in the current financial year and allocating this £40 million will allow for the purchase of properties to reduce temporary accommodation and bring vacant buildings back into use.
Across Scotland councils have been supported to purchase almost 1,500 properties in 2023-24 for use as affordable homes and the allocation of this £40 million will accelerate that work to ensure that families across Edinburgh have a safe and warm place to call home.
Commenting, Gordon Macdonald said: “Tackling the housing emergency is one of the major issues across the city and one of the key ways we can solve it is by bringing empty and vacant buildings back into use.
“This £40m fund, introduced by the SNP Government as part of the £600m affordable housing budget, will ensure that we can build on the 1,500 properties that were brought into use for affordable housing in the past year and the almost £15m allocated to Edinburgh will have a significant impact in tackling the housing crisis across the city.
“Every family in Edinburgh deserves to have a safe and warm place that they can call home and with the SNP in government that is exactly what they will get.”
Local authorities will receive the following share of funding:
BT ROADSHOW EVENT – 10 JULY from 10am – 3pm NICHOLSON SQUARE
Local SNP MSP Gordon Macdonald is encouraging Edinburgh residents to get informed about the forthcoming changes to landlines across the country.
The existing analogue technology which has supported phone and broadband services for decades is being retired and switched off with the works already underway.
Landline phone calls have traditionally been delivered over a network known as the public switched telephone network (PSTN). This network is old, and becoming harder and more expensive to maintain, so it needs to be replaced.
BT has taken the decision to retire its PSTN by December 2025 and this means other providers that use BT’s network must follow the same timescale. Other companies with their own networks such as Virgin Media plan to follow a similar timescale.
Mr Macdonald recently met with representatives from BT to discuss the changes and how this will affect households.
BT advised they are taking an information roadshow on tour across the country with an event in Edinburgh on 10 July at 25 Nicolson Square between 10 and 3pm where anyone can drop by to find out more about the switch.
Commenting Gordon Macdonald said: “Many people may not even be aware of the plans to switch all telephone lines over to digital, some may have limited knowledge but still have unanswered questions on what it means for them and their telephone service.
“BT’s roadshow event will go some way in addressing any concerns or queries residents have and I would encourage people to drop by on the 10 July to speak to the team from BT about what steps they need to take and how they can be supported in the switchover.”
Edinburgh Pentlands SNP MSP Gordon Macdonald has welcomed the news higher education students can now apply to spread their student financial support package over a 12-month period for the first time this coming academic year.
The year-long package of support will be available for eligible undergraduate students from August 2024. The change will ensure that payments of relevant student loans and bursaries can continue throughout the summer months. This follows a successful two-year programme, which saw care experienced students being given the option of 12-month support.
Care-Experienced students will continue to receive additional support for their living costs under the Summer Accommodation Grant from Summer 2024. Students eligible for the grant – which will replace the Care-Experienced Accommodation Grant – will be entitled to a payment of up to £1,330 to help ensure they do not fall into rent arrears over the summer.
These changes will coincide with the £2,400 increase to the annual support package, which sees the main undergraduate funding package rise up to £11,400.
Commenting on the announcement Mr Macdonald said: “Coping financially as a student in Edinburgh can be extremely difficult but the changes announced to the way students can receive their funding will make a huge difference across the summer months.
“This is another example of the actions being taken by the Scottish Government to support students through the cost of living crisis. Scotland already has the lowest student debt levels in the UK, thanks to the commitment to free tuition and enhanced student support.
“We have a record number of students from Scotland’s most deprived areas applying to study at university and these changes to the student support package will contribute further in breaking down barriers and ensuring that access to our world-class institutions is not denied to anyone, whatever their background.”
SNP MSP Gordon Macdonald has welcomed the announcement that veterans and the families of those in the armed forces are to receive more tailored healthcare under a new scheme for GPs.
The General Practice Armed Forces and Veterans Recognition Scheme is now open to GP surgeries across Scotland, including Edinburgh, following a successful pilot. It includes easy access to training materials setting out the specific issues these individuals face in clinical case to aid understanding of specific needs and the range of healthcare support that can be provided.
This will better enable healthcare providers to focus on the specific health challenges they may face following military service.
Commenting, SNP MSP Gordon Macdonald said: “The launch of this scheme will see more tailored, local support delivered across the wider city but is particularly important in the Edinburgh Pentlands constituency given the high numbers of forces families and veterans living there.
“The SNP Scottish Government is taking meaningful action to support those who have served our country and continue to do so, along with their families, and this scheme will go a long way to addressing the specific challenges that these individuals face.
“It is also important to recognise the huge sacrifice that so many have made to keep us safe, particularly as we approach Remembrance Sunday.
“I encourage GPs both in the south west and the wider city who have not already done so to sign up so that more individuals and their families can benefit from this scheme.”
Gordon Macdonald MSP has welcomed the announcement that a one-off £2,000 payment from the SNP Scottish Government will be made available to young people who are leaving the care system across Edinburgh.
First Minister Humza Yousaf announced the payment following the Independent Care Review’s findings that those with care experience have an increased risk of poor mental health, addiction, homelessness, and exploitation.
The payment is co-designed with care experienced people to ensure that it meets their needs and helps to reduce some of the financial impediments in their way as they seek to live independently.
Commenting, Gordon Macdonald, SNP MSP for Edinburgh Pentlands said: “The SNP Scottish Government is committed to Keeping the Promise by 2030 to all children and young people leaving care, and part of that is ensuring that they are supported on their journey into adulthood.
“Living independently can be a huge adjustment and comes at a pivotal time for young people leaving care across Edinburgh, especially if they don’t have family support.
“The SNP Scottish Government is therefore providing support to care experienced young people across Scotland through the Care Leaver Payment, and this will make a real difference to the lives of young people across the city.”
Gordon Macdonald, SNP MSP for Edinburgh Pentlands, has urged residents across the city to take part in the Scottish Government’s consultation on the introduction of the Pension Age Winter Heating Payment.
From winter 2024, the Pension Age Winter Heating Payment, which will be an annual payment, will replace the UK government’s Winter Fuel Payment in Scotland.
The Scottish Government are consulting people across Edinburgh to understand who should be eligible for this payment, when and how it should be delivered, and what measures can be put in place to support those living off the gas grid. The consultation closes on January 15th 2024.
Gordon Macdonald MSP is urging constituents across Edinburgh Pentlands to complete the consultation to ensure the payment is as effective as possible in helping pensioners with their winter heating costs.
Commenting, Gordon said: “The new Pension Age Winter Heating Payment delivered by the SNP Government will help over a million pensioners in Scotland with their heating costs, including thousands across Edinburgh.
“The SNP Government is committed to helping the most vulnerable through the difficult winter period – but it is vital people make their views known of how this payment can best be delivered.
“Since setting up a devolved social security system with compassion, fairness, and respect at its core – 13 benefits, of which 7 are unique to Scotland, have been established.
“Social Security Scotland is set to deliver £5.3 billion in devolved benefits in 2023-24 alone, supporting over 1.2 million peopleas the SNP continues to deliver every day for the people of Scotland.”
