In a report published yesterday, the Committee says that without an indication of the potential scale of all costs associated with the Bill, it is difficult to assess whether the proposed National Care Service is either affordable or sustainable.
The cross-party Committee is therefore calling on the Scottish Government to provide “much needed clarity” and to bring forward fully costed plans at least two weeks before the Stage 1 vote on the Bill, scheduled for March 2023.
Finance & Public Administration Committee Convener Kenneth Gibson said: “The Finance Committee has significant concerns over the costings in the Financial Memorandum (FM) to this Bill. The FM in its present form does not provide an overall estimate of the cost of creating a National Care Service.
“A large number of decisions are yet to be made, and no estimate of costings has been provided for VAT liability, transfer of assets and staff, and the creation of a nation-wide digital health and social care record. All of which has the potential to result in significant costs.
“The Committee appreciates the Scottish Government’s intention to co-design the service with those most closely affected. That work could, however, have been undertaken prior to the introduction of primary legislation.
“Major Bills should not be implemented via secondary legislation, or through business cases, which cannot be subject to the same in-depth, formal scrutiny as Financial Memorandums to bills.
“The significant gaps highlighted throughout our report have frustrated the parliamentary scrutiny process.
“We are therefore calling for a revised Financial Memorandum, with detailed costings, at least two weeks before Parliament considers the Bill at Stage 1.”
The Scottish Parliament should introduce proxy voting for those unable to vote due to illness, bereavement or on parental leave.
That’s the view of the Standards, Procedures and Public Appointments Committee which has published a report calling for the introduction of a proxy voting pilot scheme with a view to it being established permanently in the Parliament.
The scheme would allow MSPs unable to vote for agreed reasons to nominate a proxy MSP who would cast their vote according to their wishes.
In a report published earlier this year, on Future Parliamentary procedures and practices, the Committee made clear that a hybrid parliament should be here to stay, including a recommendation to introduce proxy voting for those unable to vote in person.
Speaking on the report’s publication, Committee Convener Martin Whitfield MSP, said: “Our Committee is unanimous in their support for the introduction of a proxy voting scheme.
“We think Scotland’s democracy and its people are best served by ensuring that MSPs can still cast their votes even if they are unable to participate in parliamentary business due to the very human reasons of bereavement, illness or parental leave.
“We believe this is a positive, progressive step for the Parliament as we look to continue to evolve and to make the Parliament as accessible and inclusive as possible.”
Deputy Convener Bob Doris MSP added: “As a Parliament it is vital that we continue to look at ways to modernise and to increase participation in democratic processes.
“The introduction of a proxy voting scheme will ensure that MSPs can represent their constituents whether on parental leave, suffering serious illness or bereavement.
“We will continue to review current working practices as we look to innovate and improve Parliamentary processes, and to shape a Parliament fit for the future.”
Key points of the proxy voting being proposed:
MSPs may request a proxy vote due to illness, bereavement or if on parental leave;
A Member can designate any other Member as their proxy and it is for the Member to decide who to nominate;
A proxy vote is actioned by informing the Presiding Officer;
The proxy vote has the same status as a vote cast by a Member in person;
The use of a proxy will be recorded in the minutes of a meeting to ensure transparency;
The pilot would remain in force until 31 December 2023.
MSPs on the Economy and Fair Work Committee have called for action to halt the long-standing decline of town centres, as it publishes a new report following an inquiry into the issue.
The Committee’s inquiry concluded that the planning system needs to be strengthened to ensure no new developments unfairly compete with town centre provision. Alongside this, a rebalancing of the cost of doing business to make town centres more competitive including how non-domestic rates currently operate, to support investment in town centres.
Every town in Scotland should have their own Town Plan, a long-term strategic vision for the future that recognises the unique nature of our towns, their histories and the community that brings them together. It should be driven locally by communities and not imposed from the top down. Transparency of ownership and powers to tackle derelict or dangerous buildings also need further action.
Claire Baker MSP, Convener of the Economy and Fair Work Committee said: “This report should signal a line in the sand for how we support, develop and prioritise investment in our town centres. We all know a town centre that has empty shops, a lack of investment and few thriving businesses.
“Throughout this inquiry we heard that although the pandemic accelerated trends towards online shopping, people really care about the future of their town centre and what is on their doorstep. The positive benefits that a thriving town centre can bring are clear – not just economically but socially and culturally as well.
“As we move into a challenging period of our retail sector, our Committee is unified in its call that vibrant, thriving town centres must be prioritised. This report recognises that the only way to do that is through changing how we support these developments through various measures from planning to non-domestic business rates.
“This report signals that change is needed. We know there is no quick fix but unless we start now, then we won’t be able to halt the accelerated decline of recent years we’ve seen already in too many communities across Scotland.”
Specific measures include:
Strengthening the National Planning Framework 4 (NPF4) to ensure that any proposed developments can demonstrate that town centre sites have been pursued and thoroughly evaluated and that developments will have no adverse impact on town centres and will not compete with town centre provision.
The overarching principle must be rebalancing the cost of doing business in town centres versus out-of-town sites. Approaches that could be considered include giving Councils the power to levy an out-of-town development premium or a business rates surcharge which could then be used for town centre regeneration.
The current non-domestic rates (NDR) system acts as a disincentive when trying to attract businesses back to our town centres. For businesses already located in town centres, the current NDR system acts as a disincentive to invest in already occupied property, as any investment leads to an increase in NDR. The Committee consistently heard that the current system works against investment and growth in town centre retail and that the NDR system should be rebalanced to support town centre development.
There is strong demand amongst Scotland’s smaller retailers for more and better support to build their online presence and to be able to take advantage of platforms that already exist. A broader range of opportunities must be made available to upskill, strengthen and future-proof our retail workforce.
Transparency of beneficial ownership of town centre property and land and absentee owners can still be a problem, particularly where an individual lives or is based overseas. It is the Committee’s strong view that all property and landowners should be contactable and there should be clarity on who the owner is. The Scottish Government has said its focus is on Compulsory Purchase Orders. The Committee is of the view that the Scottish Government’s actions may be insufficient and that more may need to be to address this problem.
Local authorities have a range of powers available to them to tackle derelict or dangerous buildings but they are not used as frequently or proactively as we would like. There can be a reluctance to resort to those statutory powers, in part due to a lack of resources to carry actions through. The Committee welcomes the Scottish Government’s commitment to reform and modernise the compulsory purchase orders.
The Committee recognises the value of, and increased demand for, online and e-commerce activities and the importance of increasing the use of technology as a driver of increased productivity. A strategically driven action plan should be developed by the Scottish Government to support the take-up of training and capacity building to support Scotland’s eCommerce activity.
An inquiry has been launched into the impact of Part 2 of the Community Empowerment Act (2015) (“the Act”) on community planning and how Community Planning Partnerships (CPPs) can respond to significant events such as the Covid-19 pandemic and the current cost-of-living crisis.
The Committee is seeking views from organisations directly involved in Community Planning Partnerships as well as communities and individuals about the impact the Partnerships have had.
Community Planning aims to improve how organisations such as local government, health boards, and the police work together with other partners to improve local outcomes in an area.
Commenting, Committee Convener Ariane Burgess MSP said: “The Community Empowerment Act recognised in 2015 how important community planning is to improving people’s lives across Scotland and our inquiry will seek to understand how successful the Act has been in bringing partners together to deliver better services that make a real difference to people’s lives.
“We want to understand how effectively Scotland’s Community Planning Partnerships have been able to respond to challenges such as the current cost crisis and unprecedented events such as the COVID-19 pandemic.
“By hearing directly from organisations involved in Community Planning Partnerships as well as from communities and individuals about the impact the Partnerships have had we can understand what further improvements may be required to truly empower communities, tackle inequalities and bring about real change.”
Environmental campaigners have said that while the new National Planning Framework 4 is a step in the right direction in tackling the climate emergency it is seriously undermined by an over reliance on unrealistic techno-fixes.
The updated NPF4, laid in the Scottish Parliament today, sets out to tackle the climate and nature emergency. It gives Councils much needed tools to prioritise sustainable transport, has a greater emphasis on the reduction and reuse of materials, and reduces the risk that vast swathes of the country will be opened up for dodgy carbon offsetting schemes.
However, the Scottish Government has failed to rule out new fossil fuel infrastructure in the planning framework which prioritises controversial technologies and so-called negative emissions technologies (NETs) such as carbon capture and storage and hydrogen.
The NPF4’s reliance on NETs is in contradiction to the Scottish Government’s own Climate Change Plan monitoring report which states that there has been: ‘No public commitment to date by a commercial operator to employ a NETs model for a single large power station in Scotland. Given lead in times for development of such a facility and proposals for CCS deployment for the Peterhead CCGT power project, it is unlikely that a new NETs power facility will be developed in the 2020s.‘
Friends of the Earth Scotland’s head of campaigns Mary Church said: “While the emphasis on tackling the climate and nature emergencies is welcome, this is a real missed opportunity by the Scottish Government to rule out any more infrastructure for the fossil fuels that are driving us to extinction.
“This plan sets out what developments are going to be prioritised over the next decade and it’s absolutely crucial that we transition away from fossil fuels over that same period.
“Despite this, there are some welcome improvements to the planning framework including much needed tools for local councils to prioritise sustainable transport, a greater emphasis on the reduction and reuse of materials, and the reduced risk that vast swathes of the country will be opened up for dodgy carbon offsetting schemes.
“The overall direction of travel is seriously undermined by continued over reliance on so-called negative emissions technologies like carbon capture and costly, inefficient hydrogen. The longer the Scottish Government falls for industry spin and the fantasy that we can solve the climate crisis without ending our use of fossil fuels, the harder it will be to deliver a just transition to a renewable energy economy.
“This plan puts some important policies on the table, but due to the urgency of the climate crisis, the time for half measures has long since passed.”
The new NPF4 is published as world leaders meet in Sharm El-Sheikh for the annual UN climate negotiations.
The UN Secretary-General António Guterres said that investing in new fossil fuel infrastructure was ‘ moral and economic madness’.
Planning for net zero
Plan for future developments ‘will help combat climate change’
Developments which reduce carbon emissions to tackle climate change and restore nature would be promoted under finalised proposals for long term planning reform.
The revised draft National Planning Framework 4 (NPF4) sets out sustainable policies against which planning applications would be assessed for the next decade.
It has been tabled in the Scottish Parliament against the backdrop of crucial intergovernmental climate talks at COP27 in Egypt and seeks to deliver a new and bold direction, with a shift in culture and approach to planning in Scotland.
Proposals in NPF4 include:
enabling more renewable energy generation, outside National Parks and National Scenic Areas, to support the transition away from reliance on fossil fuels
supporting emerging low-carbon and zero emissions technologies – including hydrogen and carbon capture – and developments on land that unlock the transformative potential of offshore renewable energy, such as expansion of the electricity grid. Waste incineration facilities would be highly unlikely to receive permission
facilitating creation of cycling or walking routes, low carbon transport, more green spaces and opportunities for play, culture and tourism
helping rural communities grow by enabling more local homes and encouraging a more diverse rural economy
regenerating city and town centres to help them adapt to economic change while enabling people to access shops, schools and workplaces within a 20 minute walk or cycle
adopting a planned and evidence-based approach to delivering good quality and affordable homes that benefit communities.
Planning Minister Tom Arthur said: “The window of opportunity to act to reduce emissions and adapt to already locked in changes is narrowing. Our statutory and moral obligation to tackle climate change means change is necessary and urgent.
“This final version of the Framework makes clear that we won’t compromise on climate change. It also clarifies what is to be delivered, and how. And it is now clear through the weighting to be applied to different policies, that the climate and nature crises are the priority.
“It is timely that we have tabled final proposals during COP27, as we set out to do when Glasgow hosted COP26 last year. This shows that Scotland’s ambition and commitment to delivering on international calls for action is unwavering.
“There is now a clear expectation of the role that planning must play in delivering the expansion of renewable energy needed to realise the just transition from reliance on fossil fuels.
“This Framework creates the foundation upon which to build the fairer, greener Scotland we want to see for the benefit of future generations.”
A Holyrood committee has warned of difficult tax and spending decisions in the budget if the Scottish Government is to balance the books and address both the cost of living crisis and the lasting impact of Covid.
In a report published today, the Finance and Public Administration Committee’s says an ‘open and honest debate’ with the public needs to be fostered on how to balance spending priorities and taxation.
In its report, the Committee notes that public sector pay rises will be funded, at least in part, through a headcount reduction in the public sector, but calls on the Scottish Government to ensure this is done in a co-ordinated way that minimises the impact on public services.
The report adds it is also now time for the UK Government to concentrate on putting in place measures to bring more stability to the UK economy and recognise the impact of inflation on the Scottish block grant.
Finance and Public Administration Committee Convener Kenneth Gibson said: “Our Committee accepts that the Scottish Government faces difficult choices in balancing its approaches to spending and taxation – especially if it’s to maintain financial sustainability and support households and businesses through the cost of living crisis.
“An open and honest debate with the public about how services and priorities are funded is now needed, including on the role of taxation in funding wider policy benefits for society.”
On the challenges facing the public sector, Mr Gibson said: “We acknowledge the challenge the Scottish Government faces in identifying additional money to fund public sector pay rises which respond to inflation.
“The UK Government should also recognise the impact of inflation on the Scottish block grant.
“We ask for assurances from the Scottish Government that it will approach reducing the public sector headcount in a systematic, transparent, and co-ordinated way. This should be done in tandem with the public service reform agenda, with a view to minimising any impact on the delivery of public services.
“As we say in our report, it is now time for the UK Government to concentrate on putting in place measures to bring more stability to the UK economy.”
This week, Thursday 3rd November, at the Scottish Parliament Lothian MSP, Miles Briggs, sponsored a Members Debate to highlight the work of Cancer Card, a charity set up to give a single source of information to people who have been diagnosed with Cancer.
Cancer Card was founded by Jen Hardy, an Edinburgh resident who has stage 4 incurable breast cancer.
Jen was diagnosed on 18th October 2017 after having a CT scan to find out the cause of her paralysed vocal cord.
Whilst searching for more cancer support, Jen noticed there was no single place to go that listed the hundreds of different services, support providers, information channels and free gifts.
The aim of cancer card is to assist the NHS by supporting everyone affected by cancer, enabling them to directly access relevant information, services, support and products.
Cancer Card founder Jen Hardy and CEO Ian Pirrie were in the Scottish Parliament to watch the members debate on Cancer Card, describing the debate as a “proud moment” for Cancer Card.
Following the debate, Lothian MSP, Miles Briggs, said:“The significance of a cancer diagnosis on an individual’s life is immense, with the potential to render them feeling lost, frustrated, fatigued, isolated or financially disadvantaged when trying to obtain information of a non-medical, but nonetheless essential, nature.
“At a time when cancer patients and their families need the most support, it can often be difficult to find the right information at the right time, for the right person.
“That is where Cancer Card is so wonderful – it recognises the questions and support needs to reach more than just the person living with cancer – but indeed their partners, families, friends, employers and professionals.”
Cancer Card founder Jen Hardy said:“I can’t thank Miles Briggs MSP enough for securing this debate and bringing Cancer Card to the attention of the Parliament.
“It was wonderful to hear such positive support from Miles, the Cabinet Secretary Humza Yousaf, Kenneth Gibson MSP, Jackie Baillie MSP and Graham Simpson MSP, each recognising the impact of Cancer Card.”
Cancer Card Chief Executive Ian Pirrie said:“Our online support hub gives easy access to reliable, relevant information, all in one place.
“With access to local and national cancer support charities and services, our advanced search and filtering options allow users to create a bespoke search based on their individual needs.
“Cancer Card helps you find the support you need when cancer affects your life.”
Full copy of Miles Briggs’ speech :
Presiding Officer.
Can I start by thanking Members for supporting my Motion for debate today.
I’d also like to invite and highlight to Members the photocall at the bottom of the garden lobby steps at 1:35 following the debate. I hope Members will be able to join us.
Presiding Officer, One of the greatest honours of being an MSP is the opportunity it presents you to meet remarkable people.
One such person is Jen Hardy. And I’m delighted Jen has joined us today in the Public Gallery alongside Ian Pirrie the new CEO of Cancer Card.
I first met Jen back in March 2018 when she successfully campaigned alongside women with incurable breast cancer and the charity Breast Cancer Now to help deliver access to the secondary breast cancer drug – Perjeta.
Jen was diagnosed with stage 4 incurable breast cancer on the 18th October 2017 after having a CT scan to find out the cause of her paralysed vocal cord.
Whilst searching for cancer support, Jen noticed there was no single place or online resource that listed the hundreds of different services, support providers, information channels and free experiences available to people and their families living with cancer.
It was this realisation that prompted Jen (who has an IT background) to work to establish Cancer Card, to help create that single place, single online point of access for anyone affected by cancer to find the help and support they need.
Cancer Card launched in May of this year and provides a detailed index of support services available, helping individuals navigate what can often be a complicated and complex world of cancer.
It’s actually hard to believe that Cancer Card hasn’t existed until now…
I know that it is incredibly hard to have the difficult conversations with someone living with cancer about their treatment journey – and indeed the many and often personal questions a wife, husband, mother, father, sister, brother, daughter, son or friend wants to ask.
That is where Cancer Card is so wonderful – it recognises the questions and support needs to reach more than just the person living with cancer – but indeed their partners, families, friends, employers and professionals.
And is available any time of day or night when questions will be asked or answers and support sought.
It also acts as a directory with key contacts for all UK cancer charities and support services.
Presiding Officer.One in two of us will develop cancer in our lifetimes – that’s of us sitting in this Chamber right now.
In my time over the last 6 years as Co-Chair of the Parliament’s Cross-Party Group on Cancer alongside Anas Sarwar and Jackie Bailie it has been a regular ask of many charities and groups to improve access to help make support services more readily available.
The significance of a cancer diagnosis on an individual’s life is immense, with the potential to render them feeling lost, frustrated, fatigued, isolated or financially disadvantaged when trying to obtain information of a non-medical, but nonetheless essential, nature.
At a time when cancer patients and their families need the most support, it can often be difficult to find the right information at the right time, for the right person.
Cancer Card seeks to address this through an online support hub where those affected by cancer can find valuable insights from the Cancer Card community and access to local and national cancer support charities and services (including access to financial help, exercise classes, counselling, and local support networks).
The advanced search and filtering options allow users to create a bespoke search based on their individual needs.
For those who have not yet had an opportunity to see for yourself or find out more then please visit: cancercard.org.uk
Presiding Officer, I want to take this opportunity to also pay tribute and thanks to all those charities and organisations which provide information, help, and advice to people and families living with cancer. We owe these organisations a huge debt and they are making such a vital difference to people living with cancer and their families right now.
I believe Cancer Card can and will indeed elevate cancer support charities and services and help promote their invaluable offering.
There is no cost to users or charities for the services listed and indeed for local groups this presents a great opportunity to highlight what is available locally in difference parts of the country.
Presiding Officer.To close.
The Scottish Government is currently undertaking work on the new Scottish Cancer Strategy – I believe this presents an opportunity to reset and reconsider how support and advice is provided and how especially during and following the pandemic – how access has shifted online – and I hope the new strategy will embrace Cancer Card and this fresh and new approach to providing information and advice services.
The Scottish Parliament’s COVID-19 Recovery Committee has called on the Scottish Government to clarify whether the cost crisis will affect the funding of Scotland’s Covid Recovery Strategy.
Following pre-budget scrutiny of how the Scottish Government plans to fund its Covid Recovery Strategy and the ongoing costs associated with the pandemic, the Committee have written to John Swinney MSP, Cabinet Secretary for Covid Recovery, asking for the Committee’s views to be considered when preparing the budget.
The impact of the cost crisis was highlighted during the Committee’s evidence sessions, including concerns from witnesses over how this could affect the funding and delivery of the Covid Recovery Strategy, with some saying the crisis will pose more significant challenges for organisations, service providers and individuals than even those faced during the pandemic.
The Covid Recovery Strategy was published in October 2021, before the scale of the emerging cost-of-living crisis was apparent.
The Strategy sets out the Scottish Government’s vision for recovery, focusing on efforts to tackle inequality and disadvantage arising from the COVID-19 pandemic and states that progress towards public service reform and a well-being economy is necessary to tackle these inequalities.
Commenting, Siobhian Brown MSP, Convener of the COVID-19 Recovery Committee, said:“During our pre-budget scrutiny, we heard that the Scottish Government’s budget is approximately £1.7 billion less than it was worth in December 2021 due to inflationary pressures.
“The Committee, therefore, are seeking clarity on how this will impact the Scottish Government’s priorities and ability to deliver the outcomes as set out in the Covid Recovery Strategy and whether it intends to refresh the strategy to reflect any policy changes in light of the cost-of-living crisis.
“As the budget doesn’t commit to specific spending on COVID-19 or Covid Recovery, it’s important that there is greater clarity provided on how much funding the Scottish Government intends to commit to achieving the outcomes identified in its Covid Recovery Strategy within the upcoming budget.”
The Committee’s pre-budget scrutiny also set out the evidence gathered on costs associated with the Strategic Framework.
These included future pandemic preparedness, vaccinations, testing and surveillance, personal protective equipment, monitoring Covid-19 recovery and Scottish Government progress towards developing a well-being economy.
A newly established Citizens’ Panel will meet for the first time this weekend (28th – 30th October) in the Scottish Parliament to help shape how Parliament engages with the people of Scotland.
The Citizens’ Panel, comprised of 22 people broadly reflecting the demographic make-up of Scotland, will come together to deliberate how the Scottish Parliament can best work with communities to ensure their needs are reflected in its work.
The Citizens’ Panel will meet for two full weekends at the Scottish Parliament and three shorter evening sessions online.
Earlier this year, the Citizen Participation and Public Petitions Committee launched an inquiry into Public Participation, looking at how people’s voices are heard in the work of the Parliament.
The Citizens’ Panel will assist the inquiry by making recommendations on improving how Holyrood’s work involves, reflects, and meets the needs of the full range of communities it represents, focusing on improving engagement for those currently under-represented.
Throughout the sittings, the Citizen’s Panel will have the opportunity to hear from MSPs and leading academics about democracy and public participation to help facilitate discussion and inform their findings.
Citizen Participation and Public Petitions Convener Jackson Carlaw, MSP, said:“Our inquiry into Public Participation is important because we know that the Parliament doesn’t hear enough from some groups and communities.
“We want to make sure that the views and opinions of everyone in Scotland are included in the work of the Parliament, and the Citizens’ Panel will be crucial to helping us understand how we can improve this.
“Ensuring the Scottish Parliament is accessible to a diverse range of people, particularly when developing new laws or policies that affect them, is essential and the Committee will eagerly anticipate the Citizens’ Panel recommendations.”
Monday morning seems like an age ago, and the political circus is likely to continue into next week (writes Fraser of Allander Institute’s MAIRI SPOWAGE).
On Monday, the new chancellor undid pretty much every tax measure in the ex-Chancellor and soon-to-be ex-PM’s “mini”-budget. Only those already legislated for will proceed (the scrapping of the health and social care levy and the stamp duty cuts in England will still happen).
Although the PM has resigned, it still looks like the Fiscal Plan will be presented on 31st October, which is an interesting political situation given that presumably means that Jeremy Hunt will remain as Chancellor whoever wins the leadership election over the next week. But perhaps the last wee while has taught us that presuming anything is foolish!
For Scotland, the extra funding that was going to be generated by these tax measures for the Scottish Budget has now largely disappeared, with only the stamp duty reductions generating additional funding for Scotland.
This presents significant challenges for the Deputy First Minister in managing an already very stretched budget.
Economic Case for Independence published
Somewhat overshadowed by events at Westminster, the Scottish Government published the third in their series of papers to set out a new case for independence on Monday. This paper, “A stronger economy with independence” was expected to set out the economic case, covering issues such as currency, trade, and public sector finances.
We published analysis of the paper on Monday – and look out for our Guide to the Economics of Independence which we’ll be publishing soon and updating as more information is released by the Scottish Government.
Inflation goes back above 10%
The Office for National Statistics (ONS) published September inflation data, which showed that CPI inflation had gone back into double digits, running at 10.1%.
Underneath the headline rate, food and non-alcoholic beverages inflation is now estimated to be 13.1%. There was a slight downward pressure from motor fuels, as the prices at the pumps fall back from the peaks they reached in July.
These data still do not capture the energy price rises households are now experiencing as of 1st October, so expect there to be further increases in the rate when that data is published next month.
Interestingly (well, if you are interested in economic statistics, come on!) it may be that the change in the way the government is supporting households on energy may change the outlook for inflation. If, as is expected, the help after April is more targeted as cash transfers to those households most in need, then this will not put downward pressure on the actual price of energy.
We’ll be looking out for the OBR and Bank of England’s (3rd November) view on the pathway for inflation given these changes.
New Public Sector Finance Data published this morning (Friday)
ONS have also put out the latest public sector finances release, which contains public finance statistics (including deficit and debt) up to September 2022.
These have the first statistics on revenue generated by the Energy Profits Levy, which shows that £2.7 billion was generated from this tax in the year to date. It will be interesting to get the OBR’s independent view of the likely take from this tax over the next few years – and obviously to see if the Chancellor chooses to extend this in some way in the Fiscal Statement.
More broadly, it contains up-to-date statistics on the size of the UK National Debt. Debt has reached £2.5 trillion, which is equivalent to 98% of GDP – levels not seen since the 1960s.
This reminds us of the challenging fiscal environment, which sets the backdrop for the statement by the Chancellor in 10 days time.
No confirmation on the Scottish Government’s Emergency Budget Review
As we write this, we have no confirmation whether the Scottish Government’s Emergency Budget Review (EBR) will go ahead next week, as previously indicated.
Remember, this review is to look at in-year (2022-23) spending to balance the budget in the face of higher than expected (at the time of the last budget) inflationary pressures, particularly in relation to the public sector pay bill.
We wrote yesterday about employability support, one of the areas that John Swinney has already indicated will be cut. A number of questions remain to be answered. and we hope the EBR will be clear in laying out the evidence considered when deciding where the axe will fall.
The response to whatever is set out by the UK Chancellor on the 31st October will come in the Scottish Government’s draft budget for 2023-24 on the 15th December. For fiscal fans, the fun is due to continue for some months yet!
