Next week sees the return of Colin Keir MSP and Michelle Thomson MP for their surgeries (writes James McGinty). Both attract large amounts of people with their general inquiries.
Colin is on the first Monday of the month whilst Michelle is on the first Friday of the month. We would encourage people to use these services.
To visit their websites click HERE for Colin and HERE for Michelle
‘More Scots voted to keep our kingdom united than have ever voted for any party in any election in Scottish history’ – Prime Minister David Cameron
Speaking one year after the people of Scotland voted to remain part of the United Kingdom, the Prime Minister today said he is focussed on delivering devolution so that the debate can move on from what powers the Scottish Parliament should have, to how they are used to better the lives of the people of Scotland.
He added that the UK government will shortly table an amendment to the Scotland Bill to put beyond doubt that Holyrood is here to stay.
The Prime Minister said:
One year ago Scotland’s majority spoke.
More Scots voted to keep our kingdom united than have ever voted for any party in any election in Scottish history.
They voted decisively for a powerful Scottish Parliament within a strong and secure United Kingdom. We listened.
So let me be crystal clear: Scottish devolution is woven into the very fabric of our United Kingdom.
We will table an amendment to the Scotland Bill so there is absolutely no doubt: Holyrood is here to stay.
Alex Salmond, Nicola Sturgeon and I signed the Edinburgh Agreement which pledged we would all respect the outcome of last year’s momentous vote.
We all agreed – as do the Scottish public – that the independence referendum should be a ‘once in a generation’ or a ‘once in a lifetime’ event.
So now it is time to move on.
Some may want to obsess about separation.
But I am focussed on delivering devolution so that the debate can move on from what powers the Scottish Parliament should have, to how they are used to better the lives of the people of Scotland.
And today, on the anniversary of that historic vote, let me repeat: we are delivering a new, accountable and permanent Scottish Parliament. Holyrood will be one of the most powerful devolved Parliaments in the world.
‘this is a country of extraordinary compassion, always standing up for our values and helping those in need.’ – Prime Minister David Cameron
The Scottish Government has welcomed Prime Minister David Cameron’s announcement that Great Britain is to give refuge to up 20,000 Syrian people and has offered to work with Westminster to tackle the humanitarian crisis.
Speaking in the House of Commons yesterday, the Prime Minister said: “Britain already works with the UN to deliver resettlement programmes and we will accept thousands more under these existing schemes. We have already provided sanctuary to more than 5,000 Syrians in Britain and have introduced a specific resettlement scheme, alongside those we already have, to help those Syrian refugees particularly at risk.
“But given the scale of the crisis and the suffering of the Syrian people it is right that we should do much more. So Mr Speaker, we are proposing that Britain should resettle up to 20,000 Syrian refugees over the rest of this Parliament.
“In doing so we will continue to show the world that this is a country of extraordinary compassion always standing up for our values and helping those in need.”
The Scottish Government has repeatedly called on the UK Government to play a part in a co-ordinated European response to this emergency humanitarian issue and has pledged to take a fair and proportionate share of refugees in Scotland.
Responding to the Prime Minister’s announcement, Scotland’s Minister for Europe and International Development Humza Yousaf said:
“As made clear by the First Minister at last week’s emergency humanitarian summit, Scotland is willing to take our fair share of refugees to help some of the most vulnerable people in need.
“We welcome the Prime Minister’s shift in attitude and late recognition that the UK has a role to play as an important first step. The 20,000 refugees over five years should not be seen as a cap or an upper limit and we must also play our part in responding to the crisis on the southern European coast line.
“We believe that the UK Should opt in to the EU relocation scheme and while the Prime Minister has made clear that the year one resettlement will be funded from the UK international aid budget, we seek urgent clarification on the impact that this will have on the work of existing aid projects.
“The refugee situation is at crisis point now and stretching UK support and refugee intake over the next five years means a number of people who could be helped immediately will be left without the vital help they need.
“We want to work constructively with the UK Government and the First Minister has again, today, written to the Prime Minster outlining the proceedings of Friday’s summit which focused on looking at some of the practical issues involved in integrating those who come here to seek protection.
“Today, I met with the Scottish Refugee Council to discuss the immediate service provision required to take in refugees and tomorrow I will chair the first meeting of the taskforce which will bring together stakeholders from across Scotland in the areas of local government, housing, health services, language support, transport and social services and will co-ordinate Scotland’s humanitarian and practical response.
“This is first and foremost a humanitarian crisis and it requires a humanitarian response. The overwhelming support we have seen from the Scottish people over the past few days shows our willingness to help the most vulnerable in the world.”
Chisholm condemns Westminster inaction
SNP MSP Colin Keir has welcomed the launch of the ‘Scotland Supports Refugees’ initiative. The volunteer-led organisation has been set up to raise awareness about the refugee crisis in Europe, campaign for action and raise funds to support humanitarian relief.
Following First Minister Nicola Sturgeon’s comments on the refugee crisis at FMQs Colin Keir SNP MSP for Edinburgh Western said: “Daily we see people driven by desperation drowning in the Mediterranean Sea while the UK government remains unwilling to act responsibly and welcome refugees fleeing Syria and other war torn nations.
“I warmly welcome the formation of the ‘Scotland Supporting Refugees’ initiative and support wholeheartedly their aims. It is a gross dereliction of its humanitarian responsibilities to act in the way the UK government currently is.
“I call on Prime Minister David Cameron to recognise that he is increasingly out of step with public opinion and change the UK position now. He should join Scottish First Minister Nicola Sturgeon in welcoming refugees.”
Earlier today local MSP Malcolm Chisholm also welcomed the Scottish Government’s commitment to support those in desperate need. He said: ” Magnificent leadership from NicolaSturgeon and Kezia Dugdale on refugees at First Minster’s Questions. Shame on David Cameron and the UK Government.”
Education set to be key battleground in next year’s Holyrood elections
First Minister Nicola Sturgeon has placed education at the heart of her Programme for Government, outlining how her vision of a fairer and more prosperous society can be achieved through helping Scotland’s young people.
Unveiling the Scottish Government’s plans for the final year of this parliamentary term, the First Minister announced a new National Improvement Framework that will help close the gap in attainment and ensure all children are being equipped with the skills they need.
The framework will help track the progress of all children, introducing a national system of standardised assessment in P1, P4, P7 and S3 that will bring consistency to the assessment of literacy and numeracy and tracking of progress across Scotland.
A wide-ranging legislative programme will see eight new bills introduced, with measures included to strengthen the law on harassment and sexual offending; increase security for private tenants, protecting against excessive rents; and implement the recommendations made by the Infant Cremation Commission.
The First Minister also announced additional support for Scotland’s kinship carers, with additional funding to local authorities to increase financial support for kinship carers to the same level as foster carers.
Outlining her plans for Scotland’s public services, the First Minister announced plans to complete the integration of health and social care by April 2016 and test new models of primary care in ten sites across Scotland. She also announced that policing would be strengthened by a national review of police governance and a new requirement on the Chief Constable to submit to local public scrutiny sessions.
Ms Sturgeon proposed that the next Scottish election to follow the 2016 poll will be held in 2021, as she confirmed that the Scottish Elections (Dates) Bill would be brought forward in the forthcoming session.
And she confirmed that the Scottish Government would begin to implement the additional powers to be devolved following the Smith Commission process, with a planned cut in air passenger duty to be brought in from 2018, and a Scottish rate of income tax to be set for 2016/17 in the forthcoming budget.
The First Minister said: “Improving school attainment is arguably the single most important objective in this Programme for Government. “Improving it overall and closing the gap between children in our most and least deprived areas is fundamental to our aim of making Scotland fairer and more prosperous.
“To address it, we need to be open to innovation and new practice – that’s the purpose of our £100 million Attainment Fund.
“But we also need to have better information about attainment so that we measure progress consistently and drive change. We need to be able to see what’s working and where we still need to improve.
“So I can confirm that we will establish a new National Improvement Framework – a draft of it is being published today. We will introduce new national standardised assessments for pupils in primaries 1, 4, 7 and in the third year of secondary school.
“The new assessments will focus on literacy and numeracy. They will be piloted next year in schools participating in the Attainment Challenge and then introduced in all schools in 2017.
“The new national assessments – which we will develop in partnership with local government, teachers and parents – will replace the variety of different assessments already used by local authorities. So they will not increase teacher workload – indeed, as a government, we are mindful of the need to reduce bureaucracy so that teachers can focus on what they do best: helping children to learn.
“These new assessments will introduce greater consistency to Curriculum for Excellence. They will provide reliable evidence of a child’s performance or progress – but they will not be the sole measurement. This is not about narrowing the curriculum or forcing teachers to “teach to a test”. It is not a return to the national testing of old. And the assessments will inform teacher judgment – not replace it.
“They will provide robust and consistent evidence to help teachers judge whether or not a child is achieving the required level of Curriculum for Excellence”.
The First Minister concluded: “This ambitious and reforming Programme for Government speaks to our aspirations. It sets out how this Government will work – now and in the long term – to achieve our vision for Scotland’s future.
“And it demonstrates how enduring values – a belief in enterprise, a faith in the value of education, a commitment to fairness and solidarity, and a passion for democratic engagement – can be applied to make Scotland a fairer and more prosperous country.”
Scottish Labour leader Kezia Dugdale said the SNP government’s record on education was not one to be proud of and called for more investment in front-line staff.
She said: “Almost half of the poorest kids leaving primary school are unable to write properly or to count properly. “That should shame us as a nation.”
Ms Dugdale added that instead of putting money into recruiting ‘attainment advisers’, the government should invest in teaching staff.
She went on: “Let’s see money invested in the teachers who are working with those pupils who face the biggest barriers to educational achievement.
‘We know who they are and where they work. We know so many of those teachers already defy the odds daily and help their pupils to shine.
“We can reward these teachers, we can give them more classroom assistants, we can bring in a new Enhanced Teacher Grade to raise the skills and rewards of those teaching in the most challenging classrooms.”
The Scottish Greens welcomed intention to tackle inequality, introduce rent controls for private tenants and oppose anti-union legislation – but are challenging ministers on climate change, education, health and land reform.
The Green say the First Minister made no mention of climate change despite the government’s failure to meet emissions targets four years running, but it did contain further support for oil and gas extraction and cutting air passenger duty. They added that the First Minister’s statement provided no clarity for communities concerned about fracking and underground coal gasification.
Patrick Harvie, Scottish Green MSP for Glasgow, said: “This final list of legislation before the 2016 election shows a Scottish Government that remains cautious in most areas but on housing it’s welcome to see ministers responding to the growing calls for greater security for tenants. Bringing in controls in areas where rents are spiralling beyond people’s means is something I have long advocated, and I look forward to seeing the detail of the Bill.
“On welfare, we know the UK Government intends to cut a further £12 billion as part of its cruel austerity agenda. Today’s comments from the First Minister on the creation of a Scottish Social Security system are welcome, as is her understanding that we must restore dignity to the welfare state.
“On land reform, we must see the proposed Bill toughened up if we genuinely aspire to a more democratic system of land ownership. And the lack of action on climate change must be challenged in light of four years of failed targets and the opportunity to create many more jobs in low carbon industries.
“Critically, the SNP must put an end to its contradictory positions on fracking and similar environmental threats – voters next year deserve to know what the SNP actually intend to do on this contentious issue.”
Alison Johnstone, Scottish Green MSP for Lothian, said: “On education, we know that class sizes have gone up, spending per pupil has remained flat, and college places have been cut. So the move towards standard testing seems a strange priority, and ministers will have their work cut out convincing people that it will help.
“A better focus would be support for teaching staff by reversing cuts to Additional Support Needs, an area that is vital to giving every child the best chance to succeed. And the same goes for Adult Learning, an area that needs real investment if we want a more equal society.
“On health, we know too many people are experiencing lengthy waits for treatment and our NHS staff are under pressure due to tight budgets, rising costs and more complex health needs. We need better connections within the NHS and more focus on preventative spending, and Green MSPs will continue to press for these priorities.”
‘ a real diamond route’ – Colin Keir MSP
Colin Keir MSP for Edinburgh Western has welcomed the announcement by Delta Airlines/Virgin that their joint venture will launch a new Edinburgh to New York service from May 2016.
Mr Keir said: “All new routes from Edinburgh are welcome as they boost employment and tourism opportunities, something that is vital to the Edinburgh and wider Scottish economy.
“With direct flights to New York, Edinburgh will link with the most influential global financial centre. Add to this the tourism potential and it makes this a real diamond route.
“Well done to Edinburgh Airport CEO Gordon Dewar and his team for securing this route and to Delta and Virgin for identifying Edinburgh as a positive destination.”
New definition hides true extent of child poverty
Around 120,000 children will be ‘cast adrift’ if the UK Government changes its definition of child poverty, Social Justice Secretary Alex Neil has said.
In a letter to the Secretary of State for Work and Pensions, Mr Neil urged the UK Government to focus on tackling the root causes of child poverty instead of redefining the way it is measured.
Proposals set out in the Welfare Reform and Work Bill would mean the UK Government would no longer be required to take action to reduce the number of people living on low incomes. Instead, the focus would move to ‘worklessness’ and ‘educational attainment’, ignoring the increasing problem of in-work poverty which affects 120,000 children in Scotland.
UK Government figures, released in June, showed an increase in the number of children living in poverty to 3.71 million after housing costs were taken into account. Of this total 65 per cent of the children were from families where at least one parent was working. This highlights the fact that progress in reducing child poverty, and improving the chances for all children, will be difficult without improvements to the living standards of working families. However these figures will not be taken into account if the Bill is passed.
Mr Neil said: “By changing the definition of child poverty the UK Government is hiding the true extent of the problem and casting adrift the 120,000 Scottish children whose parents are working on low incomes and struggling to pay their bills.
“The Secretary of State for Work and Pensions must rethink these flawed plans. They will only gloss over the impact of the UK Government’s austerity agenda and fail to show the shocking reality of its inexcusable attack on low-paid families.
“The Scottish Government will continue to measure and report on the wide range of factors that drive child poverty including income, educational attainment and health outcomes. Our sophisticated measurement framework was developed with experts and leading children’s organisations and is helping us to understand the full scale of the problem and find the most effective ways to address it.
“Around 210,000 children are living in relative poverty after housing costs are paid, but these numbers are likely to soar in coming years because of cuts to social security. Reforms to tax credits alone will reduce the incomes of between 200,000 and 250,000 households in Scotland, with families facing almost £700 million of cuts.
“We recognise that any serious attempt to tackle inequality has to focus on in-work poverty, which remains very high. That’s why we are calling for powers over the minimum wage, employment policy and working-age benefits to be devolved to Scotland.
“We have invested £296 million in welfare measures and around £329 million over two years to expand free early learning and childcare, including extra provision for disadvantaged children, while our work to encourage employers to pay the Living Wage is also helping to increase income levels in Scotland. We have appointed our first Independent Adviser on Poverty and Inequality who will be looking at what more we can do to address inequalities.”
Photography in sharp focus at the Scottish Parliament
World-leading photojournalism takes centre stage at the Scottish Parliament this summer as two inspirational exhibitions are unveiled today.
The World Press Photo (WPP) Exhibition 2015 is an international contest for photojournalists and features 130 moving and thought provoking images taken during the course of 2014. Once again the Scottish Parliament is the only Parliament in the world to host the exhibition.
Michael Peto: Politics in Focus includes photographs by Michael Peto – the celebrated Hungarian-born photographer who witnessed some of the most historic moments of the 1950s and 1960s. The exhibition includes a number of unseen photographs of some of the world’s most iconic figures. People who have shaped and changed the way we see the world including Nelson Mandela, Winston Churchill, Indira Ghandi and Jennie Lee.
Both exhibitions are free to visit and will be on display in the Scottish Parliament’s Main Hall and Burns Room (Committee Room 1) until Saturday 22 August.
The Presiding Officer, the Rt Hon Tricia Marwick MSP said: “The photographs in these two exhibitions show photojournalism at its finest. The images may be split by decades but what they have in common is their quality and thought provoking nature. They capture moments of time and make us look at who we are and what we do in a different way.
“I am proud that the Scottish Parliament is once again home to remarkable photography exhibitions that offer the people of Scotland the chance to see these images in their Parliament.”
Award-winning actor Brian Cox, Rector at the University of Dundee and Patron of the Peto collection, added: “From humble beginnings Michael Peto grew into an incredible artist and photographer. With an intense interest in the variations of human form he had a talent for capturing his subjects in their natural environment.
“This collection is an extraordinary gift he has left us, so please learn, appreciate, enjoy.”
“The Budget today puts security first. The economic security of a country that lives within its means. The financial security of lower taxes and a new National Living Wage.
“The national security of a Britain that defends itself and its values. A plan for working people. One purpose. One policy. One nation. And I commend this Budget to the House.” – Chancellor of the Exchequer George Osborne
Every Chancellor loves a little drama; that opportunity to produce a rabbit from a hat and wrong-foot political opponents and leave them floundering. George Osborne took centre stage today, delivering the first Conservative budget since 1996, and in the finest traditions of vaudeville conjurers he kept something up his sleeve, saving the best ’til last – the big finish.
Yes, there was the expected £12bn cut to welfare – although over a longer time frame – and there were small giveaways here and clawbacks there, nothing too remarkable or unexpected. And then …
“In the last five years we’ve taken the tough choices to drive down our borrowing, make our business taxes competitive and reform welfare.
“It’s because we’ve taken these difficult decisions, and overcome the opposition to them, that Britain is able to afford a pay rise.
Because let me be clear: Britain deserves a pay rise and Britain is getting a pay rise.
I am today introducing a new National Living Wage.”
Now you can call it a new National Living Wage if you want, or just an increase to the National Minimum Wage if you prefer, but whatever you choose to call it, it’s a sizeable hike: more than either Labour or the SNP offered in their respective manifestos, the government has set it to reach £9 an hour by 2020.
Working people aged 25 and over will receive it, starting next April, at the rate of £7.20p.
Along with the slashing back of public expenditure through swingeing cuts to the welfare budget, the setting of a compulsory ‘National Living Wage’ is clearly designed to get the message out that this government intends to make work pay. The announcement delighted the massed Tory ranks, with architect of the benefits reforms Iain Duncan Smith (below) particularly enthusiastic. Rarely has the ‘quiet man’ been quite so animated!
Responding for the Labour Party, acting leader Harriet Harman said: “When you’re in opposition, the temptation is to oppose everything the government does – and believe me, I feel that temptation. But we best serve this country by being a grown-up and constructive opposition.
“So while we will fiercely oppose policies that hit working people, and we will expose policies that are unworkable, where the government comes forward with ideas that are sensible we will be prepared to look at them.”
On Scotland, Mr Osborne said very little: “But what really drives this government, is building up other parts of our United Kingdom, as a balance to London’s strength.
“For Scotland, we’re now delivering – as promised – major devolution of tax and welfare powers.
“The Scottish Government will soon have to answer the question; “you’ve got the powers, when are you going to use them?””
And that was it.
Scotland’s Deputy First Minister John Swinney called the Budget a ‘con trick’ which particularly hits low income households and young people.
He said the announced freeze in working age benefits and cuts to tax credits will see the most vulnerable in our society continue to be hit the hardest whilst the revised minimum wage fails to deliver a real living wage.
Mr Swinney said: “The reality is this budget is an attack on the low paid, the young and those entering the jobs market. This budget is a series of con tricks to try and hide the fact that individual households will now bear the brunt of austerity cuts.
“I support a meaningful living wage paid for by business – one that pays what people need to live, not one that fails to compensate for cuts to valuable tax credits.
“The Chancellor has not even promised to meet the current living wage of £7.85 and under 25’s will face the brunt of cuts but receive no increase in wages.
“As the Resolution Foundation – cited by the Chancellor – make clear the real living wage is based on people receiving tax credits and housing benefit so any new living wage must be far higher to compensate for it. The Chancellor’s con trick does not come close to meeting those costs.
“The Chancellor is cutting from the poor whilst paying out to the rich, he is short changing those on low incomes whilst giving tax breaks to the better off.
“There has been no easing up on austerity – he has simply shifted some of the balance from public services to the public themselves. The Scottish Government has faced a 10% cut in our overall budget for the last five years and the Chancellor today said deficit reduction would take place at the same pace in the future. Overall the scale of austerity being imposed by this UK Government remains unchanged.
“Despite revising down productivity and export figures in each of the next four years there was little in this budget to boost productivity or to set out a strategy for growth.
“The reality is that in delivering his emergency budget the Chancellor has simply exacerbated the emergency situation faced by many on low pay and low incomes.”
The Budget in summary:
1. Introducing a new National Living Wage of over £9 an hour by 2020
From April 2016, a new National Living Wage of £7.20 an hour for the over 25s will be introduced. This will rise to over £9 an hour by 2020.
2. The government will run a surplus in 2019-20
The deficit will be reduced by around 1% of GDP (the value of the economy as a whole) on average in each year, which is the same pace as over the last 5 years. This means a surplus (where more tax is raised than is spent) will be achieved in 2019-20, and debt will fall in every year. Included in this is:
Plans for the remaining savings will be set out in the autumn following the spending review.
3. The tax-free Personal Allowance will be increased from £10,600 in 2015-16 to £11,000 in April 2016
The tax-free Personal Allowance – the amount people earn before they have to start paying Income Tax – will increase to £11,000 in 2016-17.
Increases to the Personal Allowance since 2010, when it was £6,475, mean that a typical taxpayer will be £905 a year better off in 2016-17.
The government has an ambition to increase the Personal Allowance to £12,500 by 2020, and a law will be introduced so that once it reaches this level, people working 30 hours a week on the National Minimum Wage won’t pay Income Tax at all.
4. Protecting defence spending
The Ministry of Defence’s budget will rise by 0.5% (above inflation) each year to 2020-21. Up to an additional £1.5 billion a year will also be available by 2020-21 to fund increased spending on the military and intelligence agencies.
The government will meet the NATO pledge to spend 2% of national income on defence every year of this decade.
5. Reforming the welfare system to make it more affordable
The welfare system will be reformed to make it fairer for taxpayers who pay for it, while continuing to support the most vulnerable. Changes include:
6. Reforming Dividend Tax
The dividend tax credit (which reduces the amount of tax paid on income from shares) will be replaced by a new £5,000 tax-free dividend allowance for all taxpayers from April 2016. Tax rates on dividend income will be increased.
This simpler system will mean that only those with significant dividend income will pay more tax. Investors with modest income from shares will see either a tax cut or no change in the amount of tax they owe.
7. Taking the family home out of Inheritance Tax
Currently, Inheritance Tax is charged at 40% on estates over the tax-free allowance of £325,000 per person. Married couples and civil partners can pass any unused allowance on to one another.
From April 2017, each individual will be offered a family home allowance so they can pass their home on to their children or grandchildren tax-free after their death. This will be phased in from 2017-18.
The family home allowance will be added to the existing £325,000 Inheritance Tax threshold, meaning the total tax-free allowance for a surviving spouse or civil partner will be up to £1 million in 2020-21.
The allowance will be gradually withdrawn for estates worth more than £2 million.
8. The amount people with an income of more than £150,000 can pay tax-free into a pension will be reduced
Most people can contribute up to £40,000 a year to their pension tax-free. From April 2016, this amount will be reduced for individuals with incomes of over £150,000, including pension contributions.
9. The higher rate threshold will increase from £42,385 in 2015-16 to £43,000 in 2016-17
The amount people will have to earn before they pay tax at 40% will increase from £42,385 in 2015-16 to £43,000 in 2016-17.
10. Corporation Tax will be cut to 19% in 2017 and 18% in 2020
The main rate of Corporation Tax has already been cut from 28% in 2010 to 20%, in order to boost UK competitiveness. It will now fall further, from 20% to 19% in 2017, and then to 18% in 2020, benefiting over a million businesses.
11. The annual investment allowance will be set at its highest ever permanent level at £200,000
The annual investment allowance, which has previously been increased temporarily, will be set permanently at £200,000 from January 2016.
The allowance means businesses can deduct the full value of certain items, including equipment and machinery, up to a total value of £200,000 from their profits before tax. This helps them with cash flow because it means the full tax relief is given in the year items are purchased, rather than over several years.
This permanent increase will help businesses plan their spending on longer-term investments.
12. The Employment Allowance will increase by a further £1,000 to £3,000
Businesses will have their employer National Insurance bill cut by another £1,000 from April 2016, as the Employment Allowance rises from £2,000 to £3,000. The Employment Allowance gives businesses and charities a cut in the employer National Insurance they pay.
This means, next year, businesses will be able to employ 4 people full time on the National Living Wage and pay no National Insurance at all.
13. The standard rate of Insurance Premium Tax will increase to 9.5%
From November 2015 the standard rate of Insurance Premium Tax will be increased from 6% to 9.5%. Households’ insurance prices are falling and the standard rate remains lower than that of many other EU countries.
14. Clamping down on nuisance calls from claims management companies
The amount that can be charged by claims management companies – such as those that encourage claims for payment protection insurance (PPI) or personal injury insurance – will be capped, reducing nuisance calls to potential customers.
15. Restricting tax relief for wealthier landlords
Currently, individual landlords can deduct their costs – including mortgage interest – from their profits before they pay tax, giving them an advantage over other home buyers. Wealthier landlords receive tax relief at 40% and 45%. This tax relief will be restricted to 20% for all individuals by April 2020.
In addition, from April 2016, the ‘wear and tear allowance’, which allows landlords to reduce the tax they pay (regardless of whether they replace furnishings in their property) will also be replaced by a new system that only allows them to get tax relief when they replace furnishings.
16. Ending permanent non-dom status
Non-domiciled individuals (non-doms) live in the UK but consider their permanent home to be elsewhere. The UK rules allow non-doms to pay UK tax on their offshore income only when they bring it into the UK.
Permanent non-dom status will be abolished from April 2017. From that date, anyone who’s been resident in the UK for 15 of the past 20 years will be considered UK-domiciled for tax purposes.
17. Reforming the way banks are taxed
Following increasing bank profits, and to reflect changes in bank regulation, the government is:
18. 3 million new apprenticeships
3 million new apprenticeships will be created by 2020, funded by a levy on large employers. Firms that are committed to training will be able to get back more than they put in.
19. £30 million of funding for Transport for the North
Cities and counties in the North will be given even more control over local transport. Transport for the North (TfN) will be supported by £30 million in funding over 3 years, and will have more responsibility for setting out policy and investments.
20. 30 hours of free childcare for 3 and 4 year olds
From September 2017, working families with 3 and 4 year olds will receive 30 hours of free childcare – an increase from the 15 hours they’re currently offered.
21. Student maintenance grants will be replaced with loans
From the 2016-17 academic year, cash support for new students will increase by £766 to £8,200 a year, the highest level ever for students from low-income households. New maintenance loan support will replace student grants. Loans will be paid back only when graduates earn above £21,000 a year.
22. Road tax will be reformed and the money raised spent on the road network
The road tax system will be revised to make it fairer and sustainable. From 2017, there will be a flat rate of £140 for most cars, except in the first year when tax will remain linked to the CO2 emissions that cars produce. Electric cars won’t pay any road tax at all and the most expensive cars will pay more.
Existing cars won’t be affected – no one will pay more for a car that they already own. The money brought in from road tax in England will be spent on England’s roads from 2020.
The government will extend the deadline for the first MOT of new cars and motorcycles from 3 years to 4 years.
23. Public sector pay will increase by 1%
Public sector pay will increase by 1% a year for 4 years from 2016-17.
24. Making sure individuals and businesses pay what they owe
The government will continue to clamp down on tax avoidance, planning and evasion, as well as increasing resources for HM Revenue and Customs (HMRC) so they can make sure people pay the tax that’s due. This includes:
Scottish Government figures give ‘frightening indication’ of potential impact of expected tax credit cuts
Expected cuts to the value of tax credits by the Westminster Government in tomorrow’s budget will impact most on the poorest children in Scotland, First Minister Nicola Sturgeon said this morning.
Figures due to be published tomorrow (Wednesday) by Scottish Government analysts show that, if the Chancellor cuts child tax credits back to 2003 levels in real terms as has been reported, the poorest 20 per cent of Scottish families with children will lose on average nearly 8 per cent of their income – a total impact of £425 million lost across the country – with 60% of Scottish children affected by the changes.
First Minister Nicola Sturgeon described the research as “a frightening indication” of the impact of the expected cuts and warned that the UK Government’s approach will “hit Scotland’s poorest children and families hard”.
The First Minister said: “The UK Government has already warned that tomorrow’s budget will continue their austerity approach, which we are clear is not just unfair but damaging to the economy – undermining attempts to stimulate growth.
“Tax credits form an important part of the tax and welfare system, designed particularly to support working families on low incomes.
“More than 500,000 children in Scotland benefit from tax credits. Two-thirds of the £2 billion expenditure on tax credits in 2013-14 went to low-income working families with children and only 5 per cent to households without children.
“If, as we expect, the UK Government targets tax credits for cuts in tomorrow’s budget, it will hit Scotland’s poorest children and families hard. It is a frightening indication of the potential impact of the expected cuts in tomorrow’s UK budget.”
The First Minister went on to describe the austerity approach as ‘economically counter-productive’:
“We want to support people to get into work and to stay in work and the tax credit system provides important practical help to families on low pay.
“These are people who are in jobs and often working very hard for relatively little pay. It is unfair that their children are the people made to pay for the mistakes of the austerity approach – not to mention economically counter-productive.
“When people are in work, they spend their wages in the local economy, leading to a virtuous circle. Cutting child tax credits back to 2003 levels, as we expect the UK Government to do tomorrow, will risk threatening Scotland’s economic recovery.
“The deficit needs to be reduced but this should be done in a more gradual manner with more resources allocated to a programme of additional investment in our economy, rather than risking a financial body-blow to hard-working parents and their children.”
