Sturgeon: UK Budget will hit Scotland’s poorest children

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.”

Craigroyston praised at Holyrood!

Education Minister congratulates our local community high school

The fantastic improvement of education standards at Craigroyston Community High School was acknowledged this week by Cabinet Secretary for Education and Lifelong Learning Angela Constance MSP.

Ms Constance made her comments following questions from Edinburgh Western MSP Colin Keir – the school sits within Mr Keir’s constituency.

Craigroyston has seen a dramatic improvement in HMIE results as well as using innovative practices within the curriculum.

Colin Keir said: “The way Craigroyston Community High School has improved is a credit to the pupils, staff and the Headteacher Steve Ross. Partnership working, enthusiastic ideas and the will to get better results for the students is driving this school community forward and should be seen as a source of pride for the whole community”.

The parliamentary exchange:

School Leavers (Positive Destinations)

Colin Keir (Edinburgh Western) (SNP): To ask the Scottish Government how it ensures that school leavers are given the best opportunity to go on to a positive destination. (S4O-04498)

The Cabinet Secretary for Education and Lifelong Learning (Angela Constance): As I said earlier, the proportion of young people who left school and who have sustained a positive destination has reached a record 91.7 per cent. Curriculum for excellence offers young people learning that promotes academic and vocational qualifications that are informed by the needs of our employers. “Developing the Young Workforce—Scotland’s Youth Employment Strategy” sets out our aim to further the links between education and industry.

Our opportunities for all commitment ensures that an offer of further learning or training is in place for all young people until their 20th birthday. Young people are better supported than ever to make the most of the opportunities that are available to them. That includes better career information, advice and guidance so that they can make informed learning and career choices based on labour market demand.

Colin Keir: Does the cabinet secretary agree that the actions that have been taken at Craigroyston Community High School in my constituency, which has had a magnificent improvement in Education Scotland reports through enlightened changes to its curriculum as well as partnership with local businesses, should be seen as an excellent model for preparing students for life beyond school as well as a source of pride for the local community?

Angela Constance: Yes. I have visited Craigroyston Community High School on two occasions, the first of which was for the launch of the report of the commission for developing Scotland’s young workforce.

I congratulate the headteacher, staff and pupils of Craigroyston on the improvements that they have made.

Education Scotland has identified key strengths in the school, such as its co-ordinated and high-quality support for young people and their families and the shared vision that is securing positive destinations for young people. Those are key aspects of raising attainment. I know that the headteacher shared his curriculum model with other secondary headteachers at a national conference on Curriculum for Excellence earlier this year.

Qatar: pressure on First Minister to raise human rights concerns

Concerns at Holyrood over human rights issues

Alison Johnstone, Scottish Green MSP for Lothian, has written to First Minister Nicola Sturgeon raising human rights concerns ahead of the planned football match between Scotland and Qatar at Easter Road tomorrow.

Ms Johnstone, a member of Holyrood’s cross-party group on human rights and co-convenor of the cross-party group on sport, highlights the widespread concern over the unprecedented number of deaths among workers building the infrastructure for the Qatar World Cup 2022 and urges the First Minister to consider how to address ongoing human rights abuses.

Edinburgh North & Leith MSP Malcolm Chisholm will today also ask the Scottish Government to speak out about human rights abuses in Qatar before tomorrow’s friendly match.

The Green MSP said: “I have sympathy for those who suggest the friendly match should be cancelled in order to send a strong signal to the footballing authorities that the current situation is unacceptable, not least while allegations of corruption surrounding World Cup bidding processes await resolution.

“However, I also understand the view that such a course of action may simply punish the Qatari athletes who are entirely innocent in all of this, while failing to address the matters at hand in a way that can have a meaningful impact on relevant Qatari officials and world football’s governing bodies.

“This is an opportunity to establish what action by the Scottish Government will be helpful in such cases where matters of political integrity and sport overlap. It is important that we adopt a stance that can be consistently applied to the one-off friendly match against Qatar, the qualification campaign for Qatar 2022 itself – and indeed Russia 2018, and the upcoming 2015 European Games in Baku, Azerbaijan. All of these events are set to take place against the backdrop of serious human rights concerns, and all deserve our attention.

“Amnesty International has shown that abuse and exploitation of migrant construction workers remains a serious issue. We must consider how Scotland’s voice can aid the growing worldwide effort to tackle dangerous working conditions ahead of 2022, and human rights abuses more generally. Boycotts can be an important way of demonstrating concern, but we must consider whether and how boycotts should form part of a wider strategy, and whether we need to establish criteria by which to accept or extend invitations to play or to host sporting events in the first place.”

Holyrood set to rock!

A nation-wide competition to find the best new musical talent in Scotland, whilst encouraging young people to use their vote in the 2016 Holyrood election, was been launched in the Scottish Parliament yesterday.

Presiding Officer, the Rt. Hon Tricia Marwick MSP was joined by the First Minister Nicola Sturgeon and the other Holyrood party leaders to announce details of the competition. David Hershaw and Sandie Forbes from Fife-based contemporary folk band The Dandylions were also on hand to lend their support and to encourage bands from across Scotland to apply.

Taking place throughout October, the competition will comprise eight regional heats. Forming part of the Rocktober Festival of events, the heats will take place in community spaces and venues in constituencies across Scotland. The final, Holyrood Rocks, will be staged at the Scottish Parliament on Saturday 31 October.

A panel of MSPs and industry experts will be invited to select one act from their regional heat to go through to the final and the winning act will be given the opportunity to record with an XFM producer at their studios in London’s Leicester Square.

Presiding Officer, Rt. Hon Tricia Marwick MSP said: “This competition is an exciting and innovative way to support musical talent whilst also encouraging the participation of young people in the political process.

“MSPs from across the political spectrum are delighted to be involved and I look forward to welcoming the best of Scotland’s emerging musical talent to Holyrood this October.”

The competition is organised in association with the Scottish Political and Cultural Partnership (SPCP) and also aims to raise awareness of the career opportunities available in Scotland across the creative industries and to emphasise the importance of these industries to the economy.

Fraser Paterson of The Scottish Political and Cultural Partnership commented:
“We’re delighted to have the full backing of the Scottish Parliament for what promises to be a fantastic project. We can’t wait to take Holyrood Rocks across the country, hearing the views of Scotland’s young people and encouraging them to make their voice heard.”

Entries are welcome from unsigned acts whose members are all over 16 years of age. There is no upper age limit.

Visit www.scottish.parliament.uk/holyroodrocks for the most up to date information on the Roctober Festival and Holyrood Rocks events and also for information on how to apply to take part.

Holyrood comes to Craigmillar!

Jack Kane Centre to host Scottish Parliament Day

People living in Craigmillar are being asked how changes to the benefits system have affected them as the Scottish Parliament visits the regeneration area on the south east side of the city tomorrow (Monday 18 May).

Holyrood’s Parliament Day initiative, introduced by the Presiding Officer, Rt Hon Tricia Marwick MSP, aims to take the Parliament out into communities around Scotland, encouraging local people to take an interest in and engage directly with the Parliament and its work.

The Welfare Reform Committee, which was set up to examine the impact of changes to benefits and welfare introduced by the UK Government, will hold a ‘Your Say’ session from 2 – 4.30pm.

Members of the local communities, including those from Craigmillar, Niddrie and Portobello are invited to come along and get involved.

In the evening, local people are also invited to a relaxed, informal Q&A session at 5:30pm, hosted by the Presiding Officer, where they can quiz MSPs about how their Parliament works for them. MSPs Gavin Brown, Kezia Dugdale and Kenny MacAskill will also be in attendance.

The Presiding Officer said: “We know that the people of Scotland want to be involved in the political process and that is why the Parliament is going out across Scotland and right into our communities.

“I would like to encourage as many people as possible to join us at the Jack Kane Centre. Together with my fellow MSPs we are looking forward to hearing about what matters to local people.”

Committee Convener Michael McMahon MSP said: “The Welfare Reform Committee was set up to examine the welfare reform programme and its impact on Scotland. Our research has shown Portobello/ Craigmillar to be the worst hit area of Edinburgh in terms of the welfare changes.

“Our Committee has put personal experiences at the heart of our work and we want to sit down with local people who have been affected by or are worried about changes to the benefits system.”

Welfare Reform Committee: ‘Your Say’ Informal Meeting

Jack Kane Community Centre, 208 Niddrie Mains Road
From 2- 4:30pm
Free entry, free refreshments

Local residents are encouraged to come along and talk to MSPs and others in an informal, welcoming setting about the changes to benefits that matter to you.

Public Meeting with the Presiding Officer and local MSPs

Jack Kane Community Centre, 208 Niddrie Mains Road
5:30pm
Free entry, free refreshments
Q&A session with MSPs

For more information, visit www.scottish.parliament.uk/parliamentdays

First Minister meets Prime Minister – no meeting of minds but progress made

First post-election talks are ‘constructive and helpful’

More powers for the Scottish Parliament and tackling austerity were on the agenda as First Minister Nicola Sturgeon met Prime Minister David Cameron at Bute House yesterday.

During their first face-to-face talks since the general election, the First Minister welcomed a commitment by the Prime Minister to look at proposals from the Scottish Government to extend Holyrood’s power beyond the plans outlined in the Smith Commission.

Ms Sturgeon also welcomed the Prime Minister’s agreement that legislation currently being drafted to take forward further devolution would implement in full the Smith Commission proposals and also take account of the report published by the Scottish Parliament’s Devolution Committee earlier this week.

The discussions, described by the First Minister as “constructive and helpful”, also covered her desire to tackle austerity, with further proposals on how this could be achieved within the UK Government’s own fiscal mandate now to be submitted by the Scottish Government and considered by the Prime Minister in due course.

To take forward these points, the First Minister and Prime Minister also agreed to much closer contact between their respective governments, with a commitment to increasing the number of bilateral meetings between the pair.

First Minister Nicola Sturgeon said: “I was pleased to welcome the Prime Minister to Bute House for what were constructive and helpful talks on a range of issues following the outcome of the UK general election.

“During the meeting, we had a productive discussion about the Smith Commission proposals and where we might go beyond them. From that, two things of importance were agreed. Firstly, there was a commitment from the Prime Minister that the legislation being drafted will fully implement the Smith Commission proposals and take account of the conclusions of the Holyrood committee report that was published yesterday.

“Secondly, the Prime Minister agreed that he would look at proposals the Scottish Government will bring forward on how we go beyond the Smith Commission in various important areas. There was no agreement on the substance of that, but the Prime Minister has said he will consider our proposals and there will be a meeting, in the first instance, between the Deputy First Minister and the Secretary of State for Scotland to look at how we take that further forward.”

The First Minister continued: “The Prime Minister and I have agreed to meet more regularly, which is a good step forward. We have also agreed to much closer contact between Ministers in the Scottish and UK governments to discuss issues of common interest and policies that impact on Scotland at a much earlier stage – that’s all very positive.

“David Cameron and I are a world apart politically but, where we can, I’m determined that we do business in the interest of people in Scotland and across the UK and I’m determined to have a constructive and business-like relationship.

“I hope that the Prime Minister can now show he can respond and deliver a better deal for Scotland, with an empowered Scottish Parliament with the powers over business taxes and employment law, the minimum wage and welfare that enables us to grow our economy, get more people into jobs, and lift people out of poverty. Because, ultimately, that is what this process is all about.”

The First Minister confirmed that discussions had also covered austerity and public spending across the UK. She said: “The Prime Minister has a fiscal mandate, but even within that that I believe there is enough flexibility to ease the pain of austerity, invest in the things that matter while still getting the debt and deficit down. We have agreed to send our analysis and proposals to the UK Government and he has agreed to look at them. I have a duty as First Minister of Scotland to stand up for the things I believe the people of Scotland want and I will not shy away from doing that.”The visit came within a week of the election result, and the Westminster government says this underlines the Prime Minister’s commitment to renewing and refreshing the United Kingdom and the importance he places on the respect agenda.

Speaking before the meeting, Prime Minister David Cameron said: “I am here today to underline my commitment to our United Kingdom and Scotland’s important place within it.

“That means remaining true to the promise we made to implement the all-party Smith agreement to make Scotland one of the most accountable and powerful devolved parliaments in the world.

“It also means recognising those things which unite us in these islands: the achievements we have made together, the institutions we have built together, our great social history, the common economic challenges we face today, and the strength which comes from pulling together for the common good in the future. This is our one nation agenda in action.

“Scotland has two governments and it is the duty of the First Minister and myself to respect each other’s roles and responsibilities and to work together for the benefit of all the people of Scotland.

“As more powers are devolved to Scotland, it is time to move beyond the debate about processes and focus on those bread and butter issues that affect every family in our United Kingdom – jobs, homes, good schools and strong public services, and dignity and respect in retirement. These are the building blocks we need to provide a brighter future for people in every part of our country.”

Taxi! Keir calls for tighter legislation

‘Public safety is everything’ – SNP MSP Colin Keir

SNP MSP for Edinburgh Western Colin Keir has called for tighter legislation of taxis and private hire cars during a Holyrood debate on the Air Rifles and Licensing Bill.

Mr Keir is supporting moves to introduce a test for Private Hire Car drivers as well as tightening the legislation on booking offices. He also called on vehicles which are currently exempt from the licensing system to be included on the grounds of public safety.

Mr Keir said: “The legislation which deals with taxis and private hire cars was drawn up as a part of the 1982 Civic Government Scotland Act and needs to be amended. The use of mobile phones and apps were not known years ago and the law and the trade have to adapt to modern circumstances.”

Mr Keir added: “Everyone who uses a taxi or private hire car must know that it is safe to get into a vehicle and must have confidence that there’s a fit and proper person behind the wheel – public safety is everything.”

Babies will receive Meningitis B vaccine ‘as quickly as possible’

Vaccine to be part of Scottish childhood immunisation programme

All infants in the UK are to be offered a vaccination against meningitis B following a deal struck between the Westminster government and drug manufacturing giant GlaxoSmithKline. The agreement was also reached on behalf of the Scottish Government and Scotland’s health secretary Shona Robison said the vaccine will be offered here ‘as quickly as possible’.

The NHS will now introduce the vaccine, Bexsero, to the immunisation programme for infants. Vaccination will prevent the life-threatening strain of meningitis to all infants – around 1,200 people, mainly babies and children, get meningitis caused by the meningococcal group B bacteria each year in the UK, with around one in 10 dying from the infection.

The vaccination will be given in three doses at two, four and 12 months, with all babies in Scotland aged two months at the point of introduction being eligible. The Joint Committee on Vaccination and Immunisation (JCVI) has also advised that when the programme starts there should be a one-off, catch-up programme for babies aged three and four months of age.

Health Secretary Shona Robison said: “The Scottish Government has been consistent in its support for the introduction of the Meningitis B vaccine, Bexsero. We will now work to roll out the vaccination programme as quickly as possible.

“The Meningitis B vaccine will now form part of the routine childhood immunisation programme in Scotland, underlining our commitment to ensuring the health and wellbeing of our children.

“Meningitis B is life-threatening and can affect people of any age, but is most common in babies and young children. By offering this vaccine as part of the routine programme we will be able prevent this and save lives. This disease can be devastating for children and their families and I’m very pleased we can now take the necessary steps to tackle its effects.”

Britain: The Comeback Country?

“Never has the gap between the chancellor’s rhetoric and the reality of people’s lives been greater” – Labour leader Ed Miliband

“Mr Deputy Speaker, five years ago I had to present to this House an Emergency Budget. Today I present the Budget of an economy stronger in every way from the one we inherited. The Budget of an economy taking another big step from austerity to prosperity.

We cut the deficit – and confidence is returning.

We limited spending, made work pay, backed business – and growth is returning.

We gave people control over their savings and helped people own their own homes – and optimism is returning.

We have provided clear decisive economic leadership – and from the depths Britain is returning.

The share of national income taken up by debt – falling.

The deficit down.

Growth up.

Jobs up.

Living standards on the rise.

Britain on the rise.

This is the Budget for Britain. The Comeback Country.”

So concluded Chancellor George Osbourne at the end of yesterday’s budget statement. Mr Osborne painted a picture of Great Britain brought back from the abyss by a resolute government’s astute economic management. Yes, there were a few pre-election sweeteners in there too but in the main this was a steady-as-you-go budget with one clear message to voters – the job isn’t finished so don’t let Labour loose on the economy; they will wreck the ongoing recovery and undo all the good work of the last five years.

Welcoming the statement Scottish Secretary Alsitair Carmichael said the budget will bring in a range of measures which will support key Scottish business sectors, workers and families across Scotland.

The Chancellor announced significant changes to the tax system which will see 2.33 million people in Scotland take advantage of more generous personal allowances, benefiting by an average of £555 in real terms.

The allowance will increase to £10,800 in 2016-17 and to £11,000 in 2017-18. This means people in Scotland will be able to keep more of their pay before being taxed. This also means 287,000 people in Scotland will have been taken out of paying income tax altogether.

The Scottish Government will benefit from additional funding of £31 million in 2015-16 through Barnett consequentials. This means it has seen additional spending power of £2.7 billion since 2010.

This Budget also delivers a substantial package of support for important Scottish industries including the oil and gas sector, the Scotch whisky industry and the video games industry, much of which is centred in Dundee, will benefit from a £4m support package.

Vehicle owners will also benefit from the cancellation of the September 2015 fuel duty increase. By the end of 2015-16, a typical motorist will have saved £675, a small business with a van £1,400 and a haulier £21,000.

Mr Carmichael said: “This Budget is another positive step forward for Scotland in the wider journey to economic stability which has taken place over the past five years.

It gets the important things right, with a focus on helping create a fairer and more generous personal tax system which will benefit thousands of people in Scotland and giving a helping hand to some of our key business sectors, securing jobs and prosperity for the future.

This progress has been hard-won by this Government and builds a strong base for Scotland’s economic future as part of the UK.”

It wasn’t what was announced, it was the things that weren’t mentioned that worry government critics. Labour leader Ed Miliband said Osborne’s budget statement made ‘no mention of investment in our National Health Service and our vital public services’ and added: “Never has the gap between the chancellor’s rhetoric and the reality of people’s lives been greater.”

Mr Miliband said: “Mr Deputy Speaker, never has the gap between the Chancellor’s rhetoric and the reality of people’s lives been greater than today. This is a Budget people won’t believe from a government that is not on their side. Because of their record, because of their instincts, because of their plans for the future and because of a Budget, most extraordinarily, that had no mention of investment in our National Health Service and our vital public services. It’s a budget people won’t believe from a government they don’t trust.”

He added that the Tories also plan to cut NHS spending – ‘That is the secret plan that dare not speak its name today.’

The Scottish government’s reaction was also less then appreciative. Deputy First Minister John Swinney said: “The Chancellor had every opportunity to end the damaging cuts from the UK Government and has instead turned his back on investment in public services.

“We face the same £30 billion of unfair and unnecessary cuts today as we did yesterday. That is despite the clear admission from the Chancellor that there is headroom to invest to protect our public services.

“If we are to believe the Chancellor that the economy is making such a successful recovery, then there is no justification for the destructive cuts that impact on the most vulnerable in society. That tells you everything you need to know about the values and priorities of this Chancellor.”

Commenting on the ‘U-turn’ on the North Sea fiscal regime, Mr Swinney said:

“Measures to safeguard the North Sea are a step in the right direction for our oil and gas sector. The Scottish Government has been calling for such measures, along with the industry, for some time. Today’s measures are a glaring admission by the Chancellor that his policy for the North Sea has been wrong and the poor stewardship by the UK Government has had a detrimental impact on our oil and gas sector and the many people who work in the industry. It has taken the Chancellor four years to admit the tax rise he implemented in 2011 was a mistake. A heavy price has been paid for this mismanagement.

“Today I cautiously welcome the U-turn by the UK Government to take action on the future of the North Sea. We will study the proposals in detail. It is now essential that work is focussed on boosting investment and growth in the North Sea sector.”

The Scottish Greens also criticised Mr Osborne’s ‘fantasy economy’. They said the Chancellor’s rosy depiction of the economy is not being felt on the ground, with low wages, ins, inecure employment and welfare sanctions continuing to reinforce poverty and inequality in the UK.

The Greens are leading a debate in Holyrood today on in-work poverty, and are campaigning for a £10 minimum wage by 2020. Patrick Harvie, Green MSP for Glasgow, said: “This is not a plan to make the UK a fairer or more sustainable society. Instead of an eye-watering £1.3 billion subsidy for fossil fuels, the Chancellor could have provided a gigantic boost to locally-owned clean energy or backed the return of our railways to public hands.

“This Coalition has delivered five years of hacking away at the public good and at the foundations of our welfare state. It’s been a devastating and costly campaign by an elite in Westminster and the prospect of another round should terrify everyone who is fighting for social justice in this country.”

Alison Johnstone, Green MSP for Lothian, said: “The Westminster coalition try to paint a rosy picture but what they describe will seem to many like a fantasy economy, far removed from the reality of rising rents, insecure low paid work and the misery of welfare cuts. The Greens want to see a £10 minimum wage and the small rises announced today are completely inadequate in a world of extreme high pay at the top.”

Wednesday was show day, today is the day the boffins scrutinise the Budget in fine detail. I wonder what they’ll discover as they pick through the bones?

Budget is ‘last chance to change flawed economic policy’

Today’s UK Budget provides the last opportunity for the Chancellor to scrap his failed austerity measures Deputy First Minister John Swinney said today. He said the final budget ahead of the General Election should be focused on delivering economic growth by tackling inequality.

In his final call to the Chancellor ahead of the Budget the Deputy First Minister urged him to scrap his failed economic policy. In the June 2010 Budget, the Chancellor stated that the UK Government was ‘on track to have debt falling and a balanced structural current budget by the end of this Parliament’. He has failed on both measures. Rather than debt falling as a share of GDP in 2014-15, it is now forecast to continue rising. Likewise, instead of running a structural current budget surplus in 2014-15, the UK Government is now forecast to run a structural current deficit of almost £50 billion (2.7% of GDP).

Speaking ahead of the UK Budget John Swinney said: “The current UK Government’s economic policy is fundamentally flawed and is damaging Scotland’s recovery. Despite the deep spending cuts we have seen, the Chancellor has not achieved the deficit reduction targets he set himself in his first budget in 2010.

“Between 2009/10 – 2014/15, Scotland’s budget has fallen by around 11% in real terms, within this capital expenditure has fallen by around 34%. This means our budget has been cut by a staggering £3.5 billion in real terms since 2009/10.

“And it doesn’t stop there. Scotland’s cumulative share of the cuts to day-to-day public spending over the 5 years to 2019-20 is forecast to be worth around £14.5 billion compared to 2014/15 levels.

“There is an alternative. George Osborne can use today’s budget to stop these deep cuts and grow our economy instead.

“The Scottish Government is doing all it can, within its limited powers, to support Scottish finances. The latest Scottish GDP figures show the economy grew by 3.0 per cent over the year to Q3 2014 – the fastest annual rate of growth in seven years – while the number of people in employment has risen by 180,000 since its post-crisis low in Spring 2010 and is now at a record high of over 2.6 million.

“However, successive UK budgets and Autumn Statements have undermined the Scottish Government’s ability to support economic revival, particularly through the significant cuts the Chancellor has made to capital investment over the spending review period and, in some cases, the in-year reductions he has made to the Scottish Government’s published spending plans.

“In addition to our proposals on austerity, the Budget must also deliver a permanent shift to a more competitive and predictable north sea oil tax regime, which will allow investors to shift their focus away from fiscal risk and towards the significant investment opportunities that remain in the North Sea.

“The Scottish Government has set out three key priorities for fiscal reform at this Budget:

an immediate reversal of the 2011 increase in the Supplementary Charge;
an investment allowance to provide a simple, stable and more competitive fiscal regime; and
an exploration tax credit to help increase exploration and sustain future production.

“I hope that the Chancellor will have listened to reasoned proposals ahead of delivering his budget and that economic growth and tackling inequality will be given equal representation in this final budget before the General Election.”

The Chancellor will deliver his budget speech at 12:30.