Scottish Budget faces difficult choices in challenging circumstances, says Finance Committee

The Scottish Government’s budget for 2024/25 has been set amidst a context of persistently high inflation, low growth and high interest rates amidst deep cuts to capital funding.

In its budget report published on Wednesday, Holyrood’s Finance and Public Administration Committee looks at the choices the Scottish Government has made, including on taxation.

Finance and Public Administration Committee Convener Kenneth Gibson said: “Significant pressure on Scotland’s public finances have presented difficult tax and spending decisions in the budget. Everybody recognises that.

“The Scottish Government priorities are based on delivering its three ‘missions’ of equality, opportunity and community.  However, there was a great divergence in views from witnesses on what those priorities should be, with the focus understandably in areas where budgets will be reduced rather than increased.

“The committee is unclear how spending has been prioritised towards a fair, green and growing economy.

“Regarding taxation, there is uncertainty about the behavioural impact on taxpayers earning more than £75,000 per year and when there will be a fundamental review of the council tax.

“The Scottish Government needs to deliver long-term financial planning. At present it gives the impression that it’s procrastinating on important decision-making that would help the sustainability of Scotland’s public finances, albeit in the medium and longer-term.

“The Committee is also disappointed at continuing cuts to the capital budget by the UK Government which restricts the Scottish Government’s ability to invest in capital projects, achieving net zero and growing the economy.”

On public service reform Mr Gibson added: “The Scottish Government’s public service reform programme is critical to the sustainability of the Budget and ensuring effective delivery of public services.

“While the government has set out principles and objectives for its reform programme there are few other signs of progress. This is disappointing given the urgent need for reform.

“We need to see the government develop and deliver its reform programme at a quicker pace in the months and years to come.”

The report also says that the Scottish Government must explain why it has delayed:

  • the public sector pay policy 2024-25
  • an updated infrastructure project pipeline and
  • a financial strategy for public service reform.

Party leaders discuss climate ambitions for Scotland

First Minister chairs cross-party meeting on net zero

First Minister Humza Yousaf chaired a cross-party discussion on Scotland’s climate change ambitions at Holyrood yesterday.

Inviting party leaders to discuss how we can all address the climate crisis, the First Minister highlighted the Parliament’s shared goal of securing a future that is fair and just for all.

He urges all parties to lead and promote behaviour change from everyone in society.

Chris Stark, Chief Executive of the independent UK Climate Change Committee (CCC), presented information on where Scotland is in its journey to net zero.

Speaking ahead of yesterday’s meeting, the First Minister said: “Tackling the climate and nature crises is the collective fight of our lifetime, with implications for generations to come.

“The discussion will focus both on the challenges and opportunities we face in reaching net zero. We collectively made a commitment to deliver on net zero when Parliament backed the Act on a cross-party basis.

“There must be a recognition from across the political divide that we require bold action to tackle the scale of the climate crisis, and meet our ambitions on net zero.

“In addition to our Climate Change Plan, we are developing the first set of Just Transition Plans to set out how these changes impact different parts of society and how we can promote a fair path to a net zero and climate resilient Scotland.

“We will continue to implement net zero policies and deliver funding to where it is needed the most – with the highest impact.

“From today’s meeting, I am hopeful that we can continue to work together to implement net zero policies – thereby helping to create a better and more sustainable planet for us all.”

Choudhury: Third sector community organisations crying out for support

A Labour MSP for Lothian has rung alarm bells about the barriers to funding for small, community-based organisations.  

Foysol Choudhury yesterday (17th January) hosted a roundtable at the Scottish Parliament for third-sector community organisations to discuss the current funding model, barriers to access for smaller organisations, and what lessons could be learnt. 

 The roundtable attendees and MSPs heard from Citadel Youth Centre, Edinburgh and Lothians Regional Equality Council (ELREC), EVOC, North Edinburgh Arts and The Larder.  

Mr Choudhury is Chairperson of ELREC and will be well aware of the challenges faced by third sector organisations.

Following the roundtable, Foysol Choudhury praised the work of these third-sector organisations in working so closely with, and to benefit of, local communities. He said, however, that more could be done to support these vital organisations to be more included in the funding process: 

The third sector in Scotland is a vital contributor to both the economy and society as a whole.   

“The recent Scottish Budget announcements have left many organisations in the third sector unable to be sure of secure funding for the year ahead, directly impacting on their ability to provide vital services to communities when they need it the most post-pandemic and during the cost-of-living crisis.   

It was made clear from today’s discussion that sustained, long-term and fair funding is needed for the sector. 

“Some third sector organisations may be smaller, but they have a big impact and they must be consulted with and represented in the Scottish budget. 

“This is especially true where they cater to minority communities and exclusion from the budget may increase inequalities for those communities.” 

Mr Choudhury says that the conversation at the table today was positive and collaborative but that the organisations were also “crying out for more support and recognition of their vital work”.  

Organisations at the roundtable raised how many smaller organisations were in competition with each other for grants and core funding, so the system should facilitate more collaboration.

Other groups also raised how smaller organisations are missing out on funding because they don’t meet criteria, or don’t have the experience and funds to hire fundraisers to make applications like many bigger organisations do.

Mr Choudhury says he will continue to build on this constructive conversation and represent small third-sector community organisations in the Scottish Parliament, pressing for more funding and consultation wherever possible.

Budgets are about spending priorities, and Labour trails both the SNP and the Conservatives at Holyrood. Elections to the Scottish Parliament will not take place until May 2026.

Of more immediate concern for voluntary sector organisations is the current budget process. The city council (a Labour-led coalition with Lib-Dems and Conservatives) is looking at further cuts as it sets it’s budget for 2024 – 25.

Councils blame the Scottish Government for funding cuts while Holyrood in turn blames the UK Government at Westminster. It’s a blame game that’s gone on for as long as I can remember, and while the politicians bicker, the poorest communities – and the charities and voluntary sector projects that support them – bear the brunt and feel the pain of service cuts.

That’s got to change – but sadly change, if it comes, will come too late for many – Ed.

MSP: Post Office Horizon scandal is “catastrophic miscarriage of justice”

Scottish Labour MSP Foysol Choudhury yesterday (9th January 2024) raised concerns in the Scottish Parliament about the “catastrophic miscarriage of justice” that is the Post Office Horizon scandal.

Between 1999 and 2015, more than 700 sub-postmasters and sub-postmistresses  were convicted after Fujitsu’s faulty Horizon software used by the Post Office made it look like money was missing.

Many maintained their innocence and after decades of campaigning, won the right for their cases to be reconsidered. The scandal is now back in the public spotlight after an ITV drama depicted the case.

In 2020, the Scottish Criminal Cases Review Commission (SCCRC) wrote to at least 73 potential victims of the Horizon scandal in Scotland. However, as of the end of 2023, reportedly only 16 of those had come forward to ask for a review of their conviction. 

Mr Choudhury questioned the Cabinet Secretary for Justice, Angela Constance, on how the Scottish Government will ensure that all others potentially wrongfully convicted are supported in coming forward if they wish for their conviction to be overturned.

Mr Choudhury said afterwards: “There are many people potentially affected by wrongful convictions in this scandal who have not yet come forward to ask for a reconsideration. 

“There are many more who were not convicted but for whom the false accusations severely impacted their reputation, career, relationships and mental health.  

The Scottish Government must continue to liaise with the Crown Office and Procurator Fiscal Service (COPFS) regarding the number of people in Scotland who were prosecuted and how a Scotland-specific response can be established by COPFS, who hold sole responsibility for prosecutions in Scotland .

When I asked the Cabinet Secretary today, she dodged the question about whether the Scottish Government expects to be liable for the compensation costs, instead referring to the UK Government compensation scheme. 

“The Scottish Government must urgently consider what liability Scottish authorities hold for victims in Scotland who were wrongfully prosecuted.

Mr Choudhury also asked the Scottish Government if it has held discussions with the UK Government regarding the responsibility of Fujitsu in this scandal, highlighting that Fujitsu have not faced any financial repercussions and have reportedly been awarded more than 150 Government contracts since the scandal.

The Lothian list Labour MSP says he will continue to fight for justice on behalf of his affected constituents.

Prime Minister Rishi Sunak says the government will bring in a new law to “swiftly” exonerate and compensate victims of the Post Office scandal.

He told MPs at PMQs today that, as part of this, there will be a new up-front payment of £75,000 for 555 former postmasters who brought a group lawsuit.

Holyrood Committee to scrutinise amendment to Gender Representation on Public Boards Act

A change to the Gender Representation on Public Boards Act 2018 will be scrutinised by Holyrood’s Equalities, Human Rights and Civil Justice Committee.

The Gender Representation on Public Boards Amendment (Scotland) (Bill) was introduced by the Scottish Government to amend the 2018 Act. The new Bill will remove the definition of “woman” in section 2 the 2018 Act, following a decision of the Court of Session made on 18 February 2023.

The specific definition that this short Bill will remove is: ““woman” includes a person who has the protected characteristic of gender reassignment (within the meaning of section 7 of the Equality Act 2010) if, and only if, the person is living as a woman and is proposing to undergo, is undergoing or has undergone a process (or part of a process) for the purpose of becoming female”.

The change will be scrutinised by the Committee, before it reports its findings to the Parliament as a whole.

The Committee has today opened a call for views to ensure people can share their views on the proposed change.

Kaukab Stewart MSP, Convener of the Equalities, Human Rights and Civil Justice Committee, said: “This Bill aims to make change the Gender Representation on Public Boards act, ensuring that the Parliament’s statute book is in compliance with recent rulings of the Court of Session.

“We want to ensure that the Government’s approach in this Bill does what it intends to do.

“If you have views on the proposal in the Bill, please share them with us in our call for views.”

The call for views is open today, Monday 8 January 2024, and will close on Monday 29 January 2024: 

https://yourviews.parliament.scot/ehrcj/gender-representation-public-boards-bill

MSP presses for action over ‘staggering’ NHS overtime hours

Scottish Labour MSP Foysol Choudhury has raised concerns about the need to increase support to overworked maternity and midwifery nurses in NHS Lothian. 

Statistics obtained by Scottish Labour have shown that in 2022/23, a staggering 3,366 hours of overtime were worked by staff in maternity and midwifery units in NHS Lothian, which has soared by 117% since before the COVID-19 pandemic.  

Mr Choudhury said: “NHS staff are working tirelessly to provide the care that people need but they should not have to work so much overtime to plug the gaps in staffing. 

“This pressure on staff can lead to burn out- we should not be working our NHS heroes into the ground like this.” 

Mr Choudhury says he had previously received concerns from his constituents about safe and sustainable staffing in maternity settings, which he raised with the Minister at the time, and that discovering these figures about local midwifery and maternity unit workers’ overtime hours now has reignited his concerns.

Mr Choudhury added: “Enough is enough – it’s time for the SNP government to wake up and act before this crisis gets worse. 

“I’ll be making it a priority in 2024 to press for action, for the sake of both NHS staff and patients.” 

Choudhury: ‘Scandalous food poverty levels must be addressed urgently’

NEW analysis by Scottish Labour has revealed that the parcels delivered by foodbanks in the City of Edinburgh has soared by 89% since 2018, with a shocking 94% rise in the number of parcels issued for children in the City of Edinburgh.

For West Lothian, there has been an increase in parcels of 81% since 2018, and a rise of 77% for parcels issued for children. 

In the six months from 1 April to 30 September 2023 alone, there was a shocking 16,038 parcels distributed in the City of Edinburgh Council and 4,250 in West Lothian.  

Foysol Choudhury, a Labour list MSP for Lothian, has raised concerns about the level of foodbank use and says that more urgency is needed to tackle food poverty in Edinburgh, Lothian and the rest of Scotland.

Mr Choudhury, alongside Scottish Labour, has raised concerns that the Scottish Government recently delayed the implementation of the Good Food Nations Act by half a year.

Scottish Labour also says the Scottish Government has repeatedly failed to set out a timeline for enshrining a legal Right to Food in Scots law – something Scottish Labour MSP Rhoda Grant is pursuing in a Member’s Bill. 

Mr Choudhury said: “The levels of food poverty in Scotland are scandalous and the Scottish Government must act urgently.  

“We should not have people in Scotland going hungry, cutting back, choosing between heating and eating or relying on foodbanks. 

“I have met with so many brilliant organisations who work tirelessly to support those in food poverty-organisations like Empty Kitchens, Full Hearts and The Larder. However, they shouldn’t have to fill the gap where legislation and political leadership should be. 

“We need real leadership from both of our governments – but the Tories and the SNP are both missing in action.  

“The Lothian region deserves better than these two failing and out-of-touch governments – we need action at every level to tackle this shameful food poverty crisis and enshrine in law a legal Right to Food.” 

Holyrood Committee Backs Visitor Levy Bill at Stage 1

‘potential to be a positive force for the tourism sector’

The majority of members on the Holyrood Committee considering the Visitor Levy (Scotland) Bill have supported the general principles behind the legislation, which would allow Scottish local authorities to introduce an overnight accommodation levy, following extensive consultation.

Publishing its Stage 1 Report today, the Parliament’s Local Government, Housing and Planning Committee said that a majority of members of the Committee support the general principles of the Bill and a majority of members again found that it was “unlikely that the introduction of a levy in certain local authority areas, assuming a relatively modest rate, would have a deterrent effect on visitor numbers and therefore on the visitor economy in Scotland.

Conservative MSPs Miles Briggs and Pam Gosal did not support several of the report’s conclusions or the general principles behind the Bill.

A majority of members however agreed with evidence from stakeholders which suggested the introduction of a levy has “the potential to bring significant benefits to visitors, the tourism sector and local residents” whilst recognising that not all of Scotland’s local authorities are expected to introduce a levy and therefore benefit directly from the Bill.

Supporting the Bill’s provision to give local authorities the ability to choose whether to introduce a levy and how to apply it locally, a majority of members of the Committee welcome “the degree of flexibility” provided and believe that this will allow councils to “design and implement it in a way that suits local circumstances.

The Committee also recognised business concerns around the timing of the legislation, following the impact of COVID-19 on Scotland’s tourism sector and the increased costs of doing business, as well as recent changes to short-term lets licensing.

The Report also said the Committee was “mindful of the concerns of accommodation providers that the introduction of a levy could result in an additional administrative burden” and welcomed the Bill’s requirements to implement localised monitoring and reporting to ensure transparency and accountability.

Considering if any levy should be a flat or percentage rate, the Committee considered this was “perhaps the most difficult aspect of the Bill in terms of determining what the right approach should be” and invited the Scottish Government to undertake further work on this area of the Bill to find a suitable solution.

The majority of members of the Committee agreed that “meaningful consultation with the tourism and accommodation sector to create a genuine sense of partnership working” would “help alleviate the concerns of many in the sector” and show that a levy should bring “long-term benefits” by improving the experience of visitors to areas where a levy is applied.

The earliest date a visitor levy could be applied by local authorities is 2026, which a majority of members of the Committee considered would provide enough time for any “outstanding issues to be resolved through engagement and consultation” with businesses and other key stakeholders.

However, the Committee also invited the Scottish Government to respond to suggestions from some councils that they should be able to introduce a levy sooner than 2026.

Commenting, Committee Convener, Ariane Burgess MSP said: “In supporting the Visitor Levy Bill at Stage 1, a majority of the members of the Committee recognise its potential to positively impact Scotland’s tourism sector.

“After thorough consultation and consideration, most members of the Committee have supported the core principles of the legislation, emphasising that a well-designed levy, at a modest rate, shouldn’t discourage visitors and should bring benefits for the tourism sector.

“A majority of the members of the Committee welcomed and support the flexibility provided by the Bill, which will enable local authorities to customise the levy’s implementation meaning that local levies are designed to suit local circumstances.

“Understanding concerns from businesses and being mindful of possible administrative burdens, a majority of members of the Committee believe that industry worries can be resolved through constructive engagement and consultation at the local level, ahead of any levy being introduced in 2026.

“For the majority of the members of the Committee the Visitor Levy Bill has the potential to be a positive force for the tourism sector, and thank the individuals, organisations and other stakeholders who provided evidence to inform this report.”

Budget 2024- 25: Council Tax freeze MUST be fully funded, warns COSLA

COSLA Vice President Councillor Steven Heddle has sent a strong warning to the Scottish Government that any Council Tax Freeze must be fully funded.

COSLA’s message is a response to comments made to the media by Deputy First Minister Shona Robison on Sunday.

Councillor Heddle said: “There were a few things in the comments made by the Deputy First Minister yesterday (Sunday) that I am uncomfortable with on behalf of COSLA, our member councils and the communities that we represent.

“Firstly, the Deputy First Minister cannot decide or unilaterally say that the ‘Council Tax freeze to stay’- it’s up to 32 individual council to decide if they have a council tax freeze or not, not her government.

“Secondly, unless it is funded with additional money for each council that allows them to fund their planned Council Tax increases, then it is not fully funded, and it will be our service users who will suffer as a consequence.

“The funding for the freeze needs to be transparently additional and consolidated into our Budgets for future years.”

“The DFM also mentioned the ‘Changing shape of public sector workforce’.  Local Government’s workforce has already changed shape drastically. Between 2006 and 2018, the Local Government workforce reduced by 15% (35,000 FTE) before Scottish Government policies such as Early Learning and Childcare added staff back in from 2019.

“The Scottish Government workforce has nearly doubled since 2006; staffing in non-departmental bodies has also doubled and in Scottish Government agencies, staffing has grown by 15%.  These increases have added more than 7,000 FTE staff in just over 15 years.

“The Verity House Agreement was designed to ensure positive working between Scottish Local Government and The Scottish Government, and a focus on better outcomes and person-centred services.

“The VHA has three priorities – to tackle poverty, particularly child poverty; to transform our economy through a just transition to deliver net zero, recognising climate change as one of the biggest threats to communities across Scotland; and deliver sustainable person-centred public services.  

Local Government will be unable to contribute to these if underfunded.

“COSLA knows that Scottish Government is under pressure financially around this Budget. However, the Council Tax freeze came out of the blue and has serious financial implications.

“And any suggestions that Local Government’s workforce needs cut further will have serious consequences for communities.”

Holyrood Committee announces inquiry into Scotland’s Commissioners

DOES SCOTLAND NEED YET MORE COMMISSIONERS?

A new parliamentary inquiry examining Scotland’s Commissioner ‘landscape’ has been announced.

Holyrood’s Finance and Public Administration Committee will investigate whether a more “coherent and strategic approach” is needed for the creation of any further commissioners.

Scotland currently has seven commissioners directly responsible to Parliament. An eighth – the Patients Safety Commissioner – was agreed by Parliament in September 2023.

A further six commissioners have been proposed, or are being considered, that could potentially bring the total number to 14 by the end of this five-year session of Parliament.

Finance and Public Administration Committee Convener Kenneth Gibson said: “Seven commissioners cost £16.6m, according to budget figures for 2023/24.  Each office comes with its own staff and its own running costs. 

“The smallest cost £0.3m and the largest £6.7m.  More are being proposed, or considered, by both the government and by backbench MSPs.

“Our committee believes this inquiry is both timely and necessary.

The Scottish Government has already stated there is very little published research on commissioners in Scotland – or the UK – and little evaluation exploring their pros and cons, powers or ways of working.

“Our committee will therefore investigate whether a more coherent and strategic approach is needed for the creation of such commissioners in Scotland.”

The committee will launch a call for views in January. Oral evidence will be taken in March / April. The committee’s report is expected to be published in May / June 2024.