£144 million does not fully fund a council tax freeze, COSLA Resources Spokesperson Councillor Katie Hagmann has explained.
Ms Hagmann said: “Disappointingly the Scottish Budget has not provided our local authorities with a fully funded council tax freeze as expected.
“The Scottish Government has set aside £144m stating this will ‘fully fund’ a council tax freeze – this would only provide the income equivalent to a 5% rise.
https://twitter.com/i/status/1744409879027110392
“However, Local Government’s core revenue budget was cut by £63m from the outset, essentially leaving just £81m compensation for a council tax freeze. As a result, Local Government is faced with the reality that the funding offered for a council tax freeze only equates to a 2.8% rise.
“This significantly adds to the pressures faced by councils – a recent LGIU survey found that 83% of Scottish councils were looking at a minimum increase of 5%.”
All living former First Ministers of Scotland – Nicola Sturgeon, Alex Salmond, Jack McConnell and Henry McLeish – have agreed to give oral evidence to Westminster’s Scottish Affairs Committee as part of its ongoing inquiry into intergovernmental relations.
The inquiry, named Intergovernmental Relations: 25 years since the Scotland Act 1998, is looking closely at the structures which underpin relations between the UK and Scottish Governments, including the new IGR framework introduced in 2022.
In sessions due to take place in the first half of 2024, MPs will have the chance to question Nicola Sturgeon, Alex Salmond, Jack McConnell and Henry McLeish on their experiences of intergovernmental relations between Edinburgh and London during each of their tenures as First Minister.
The witnesses led the Scottish Government during significant political events, including the 2014 independence referendum and the UK’s exit from the EU. The Committee will also be taking evidence from a number of former Secretaries of State for Scotland who have held the post since 1998.
So far, the inquiry has received written evidence from Tony Blair and Lord David Cameron, as well as hearing from former UK Government ministers and senior civil servants to assess whether the intergovernmental processes have delivered on the aspirations of politicians in 1998.
The Committee also questioned leading academics at the University of Glasgow and University of Stirling for their expert views on whether current intergovernmental processes are working effectively.
Alex Salmond will be questioned by the Committee on Monday 19 February.
The date of the other former First Ministers’ appearances will be confirmed in due course.
Chair of the Scottish Affairs Committee, Pete Wishart, said: “It’s a clear demonstration of the importance of this work that all living former Scottish First Ministers have agreed to appear in front of the Committee as part of the inquiry into relations between the UK and Scottish governments since 1998.
“Given that we will hear from all living former First Ministers of Scotland, we will be inviting all former UK Prime Ministers who have been in power since the implementation of the Scotland Act to appear in front of the Committee.
“I sincerely hope they will match the commitment of their Scottish Government counterparts and accept our invitation.”
Housing Secretary launches a consultation proposing new legal requirements for England’s social landlords to address hazards including damp and mould quickly
plans to clamp down on rogue social landlords who fail to provide safe homes have been announced today, supporting the Government’s pledge to deliver Awaab’s Law.
The two-year-old from Rochdale died from a respiratory condition caused by extensive mould in the flat where he lived, and the Government is taking action to introduce lifechanging reforms in social housing to prevent future tragedies.
The Awaab’s Law consultation has been launched by the Housing Secretary, which proposes introducing new strict time limits for social housing providers and force them to take swift action in addressing dangerous hazards such as damp and mould.
It proposes new legal requirements for social landlords to investigate hazards within 14 days, start fixing within a further 7 days, and make emergency repairs within 24 hours. Those landlords who fail can be taken to court where they may be ordered to pay compensation for tenants.
Landlords will be expected to keep clear records to improve transparency for tenants – showing every attempt is made to comply with the new timescales so they can no longer dither and delay to rectify people’s homes.
Housing Secretary, Michael Gove said:“The tragic death of Awaab Ishak should never have happened. His family have shown courageous leadership, determination and dignity to champion these changes and now it’s time for us to deliver for them through Awaab’s Law.
“Today is about stronger and more robust action against social landlords who have refused to take their basic responsibilities seriously for far too long. We will force them to fix their homes within strict new time limits and take immediate action to tackle dangerous damp and mould to help prevent future tragedies.
“Alongside Awaab’s Law, our landmark Social Housing Act will drastically improve the quality of life in social housing, granting residents a proper voice to fight those who think they can cheat the system and ensuring rogue landlords face the full force of the law.”
Faisal Abdullah, Awaab’s father. said:“We hope that Awaab’s Law will stop any other family going through the pain that we went through.
“Landlords need to listen to the concerns of tenants and we support these proposals.”
Social Housing campaigner, Kwajo Tweneboa said:“As we know many families across the country are still living in homes with damp and mould, creating misery but more worryingly risks their health and safety.
“I’m pleased to see Awaab’s Law reach the consultation phase and hope that it goes far enough to prevent other families going through the tragedy Awaab’s family have had to. It’s crucial the government are able to make sure this law has teeth and is enforced for it to work as intended.”
Through the measures announced today tenants will be able to take their landlords to court if they fail to fix dangerous hazards. This builds on the progress already made to drive up standards in social housing.
The UK Government says there has been consistent improvement in the quality of social homes since 2010 – with a reduction in non-decent social homes from 20% in 2010 to 10% last year – but recognises ‘there is more work to do’.
The Social Housing (Regulation) Act, which became law last year, will equip the Regulator of Social Housing and tenants with stronger powers and rights to hold the small minority of rogue landlords accountable.
New enforcement powers will also be available for the Regulator to weed out bad landlord practices – including issuing unlimited fines and entering properties with only 48 hours’ notice to make emergency repairs in the most severe cases.
As part of changes to deliver Awaab’s Law, the Government recently consulted on what more tenants need to better understand their rights and challenge social landlords when things go wrong – the direction to the Regulator will be published in the coming weeks.
This is the latest step in addressing systemic issues identified following the Grenfell Tower fire – not just the safety and quality of social housing but how tenants are treated by their landlords.
Awaab’s Law consultation will be open for eight weeks and further details on how to respond can be found here
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.”
27 million people across the UK will benefit from a yearly tax cut worth hundreds of pounds from today, meaning a household with two average earners will save nearly £1,000 per year.
27 million people to get tax cut from today as the main rate of employee National Insurance will be cut by two percentage points, from 12% to 10%.
Change in gear for government, cutting taxes for ‘hard working people’ so they have more money in their pocket.
Online tool launched to help workers estimate their savings.
The main rate of National Insurance has been cut by 2p from 12% to 10% today (Saturday 6 January 2024). This reduces National Insurance by more than 15%, saving £450 this year for the average salaried worker on £35,400.
Millions of people working different jobs across hundreds of industries will now be better off. An average full-time nurse will save £520, a typical junior doctor £750 and an average teacher £630.
In the past year, inflation has halved; the economy has recovered more quickly from the pandemic than first thought; and debt is on track to fall. With a renewed focus on the long-term decisions to strengthen the economy, the government is changing gear and cutting taxes for hard working people, giving them the opportunity to build a wealthier, more secure life for themselves and their families.
Prime Minister Rishi Sunak said: ““We have made tough decisions on the economy, supporting people through global shocks such as the pandemic and Putin’s illegal invasion of Ukraine. It is because of the tough decisions this government has taken that today we are able to cut taxes for 27 million people across the UK.
“Today’s tax cuts will directly reward hard working people, putting £450 back in the pocket of the average worker and helping them make ends meet.”
Chancellor of the Exchequer Jeremy Hunt said: ““With inflation halved, we’ve turned a corner and are cutting taxes – starting with today’s record cut to National Insurance worth nearly £1,000 for a household.
“From nurses and brickies, to cleaners and butchers, 27 million hard-working Brits will have a little more cash in their pockets.”
The cut means that for those on average salaries, personal taxes would be lower in the UK than every other G7 country, based on the most recent OECD data. The UK also has the most generous starting allowances for income tax and social security contributions in the G7.
To mark the tax cut, HMRC have launched an online tool to help people understand how much they could save in National Insurance this year.
The tool will use salary information to give employees personalised estimates of how much they could save because of the government’s changes, and will be hosted on the government’s cost of living support website on GOV.UK.
The last major cut to the current personal tax system of today’s magnitude was when the National Insurance personal allowance increased from £9,880 to £12,570 in July 2022. This was the largest ever cut to a personal tax starting threshold, allowing working people to hold on to an extra £2,690 free from tax whilst taking 2.2 million people out of paying tax altogether.
Today’s tax cut combined with above-inflation increases to tax thresholds since 2010 means that the average earner will pay over £1,000 less in personal taxes than they otherwise would have done.
At the Autumn Statement the Chancellor Jeremy Hunt announced the biggest package of tax cuts to be implemented since the 1980s. In addition to today’s action, the Chancellor also announced a National Insurance cut for 2 million self-employed people, which will take effect on 6 April 2024 and is worth £350 for the average self-employed person on £28,200.
He also announced the biggest ever increase to the National Living Wage, effectively cut corporation tax by more than £55 billion as he made full expensing permanent to help businesses invest for less, froze alcohol duty for six months and extended cuts to business rates relief for the high street.
Today’s ‘historic’ National Insurance cut takes effect following the government stepping in to support households during the Covid-19 pandemic and throughout Putin’s barbaric war in Ukraine.
The government ‘took the decision to manage the public finances responsibly by not saddling future generations to help pay down debt’.
Westminster committee urges UK Government to act with urgency to tackle global deforestation
UK consumption is unsustainable, with the nation’s appetite for commodities including soy, cocoa, palm oil, beef and leather putting enormous pressure on forests, Westminster’s Environmental Audit Committee (EAC) warns today.
Forests host 80% of the world’s terrestrial biodiversity, support the livelihoods of 1.6 billion people and provide vital ecosystem services to support local and global economies. Deforestation threatens irreplaceable biodiverse habitats and contributes 11% of global carbon emissions.
The intensity of UK consumption on the world’s forests – its footprint per tonne of product consumed – is higher than that of China.
The EAC is calling on Ministers to develop a Global Footprint Indicator to demonstrate this impact to the public, and a target to reduce the UK’s impact on global deforestation. Such a measure will only be meaningful if sufficient monitoring and reporting is embedded for forest risks – including mining – so EAC recommends that the Government work with international partners to improve oversight in the UK and globally.
Through legislative provision in the Environment Act, the Government has committed to establishing a regime to require forest-based commodities to be certified as ‘sustainable’ if they are to be sold into UK markets. At COP28 the Government announced that the first four of these commodities are to be cattle products (other than dairy), cocoa, palm oil and soy, which the EAC was pleased to see.
While the Government’s intention to tackle sustainability concerns of products is welcome, EAC is concerned over the seeming lack of urgency about the implementation of this regime, given global commitments to halt and reverse current deforestation trends by 2030.
For instance, no timeline has been offered as to when this important legislation will be introduced, and its phased approach of incorporating products gradually into the regime does not reflect the necessity of tackling deforestation urgently.
The Government should also bring other forest-risk commodities, such as maize, rubber and coffee, into the certification regime as soon as possible to be ‘sustainable’.
The Committee recommends that the Government strengthens the existing legislative framework so as to prohibit financial sector businesses from trading or using commodities linked to deforestation.
At global COP summits, the UK has been instrumental in delivering ambitious agreements to address global deforestation. However, despite this, the world does not appear to be on track to halt deforestation by 2030: a key commitment made during COP26 and at the Kunming-Montreal COP15 summit in December 2022.
The Government has announced large sums for programmes on climate and nature, amounting most recently to £11.6 billion with £1.5 billion earmarked for deforestation.
However, the Committee has heard concerns that there is a lack of transparency over how this investment will be spent. The Committee is therefore calling for clarity from Ministers as to how the money will be used to support activities to halt and reverse deforestation.
The Committee was alarmed to hear from Global Witness that one person is killed every other day defending land and the environment. Indigenous peoples are protectors of the world’s forests and can possess detailed knowledge on biodiversity and ecosystem trends. It is therefore critical that they are facilitated to participate fully in negotiations to address deforestation activity.
To fulfil its commitment to put environmental sustainability measures at the heart of global production and trade, the Government must ensure that biodiversity considerations are more consistently applied into its trade agreements and operations.
EAC therefore repeats its earlier calls for sustainability impact assessments to be conducted for all future trade agreements. Ministers must also develop strategies to monitor effectively and deliver environmental net gains in the UK’s international activity, including gains through halting and reversing deforestation.
Environmental Audit Committee Chair, Rt Hon Philip Dunne MP, said: “UK consumption is having an unsustainable impact on the planet at the current rate. UK markets must not be flooded with products that threaten the world’s forests, the people whose livelihoods rely on them and the precious ecosystems that call them home.
“Yet despite the recent commitment before and at COP28 to invest more in reforestation measures and The Amazon Fund to help halt the speed of global deforestation, the UK needs to take tangible steps to turn the dial at home.
“The Government’s ambition and stated commitment at COP26 to halt deforestation by 2030 was very welcome: but it is not on track now. Its legislation for a regime to require certain products to be certified as ‘sustainable’ before they can be sold in UK markets was welcome: but the implementing legislation has still not come forward. There is little sense of urgency about getting a rapid grip on the problem of deforestation, which needs to match the rhetoric.
“Countries all around the world contribute to deforestation, and the international community of course needs to do much more to tackle deforestation. Yet on some measures the intensity of UK consumption of forest-risk commodities is higher than that of China: this should serve as a wake-up call to the Government.
“To demonstrate genuine global leadership in this critical area, the UK must demonstrate domestic policy progress, and embed environmental and biodiversity protections in future trade deals.”
Scottish Labour MSP Foysol Choudhury has implored the Scottish Government to make housing a priority in 2024.
Mr Choudhury has raised concerns over the festive period that hundreds could sadly be faced with rough sleeping this winter, with many more at risk of homelessness or living in what he says is unsuitable temporary accommodation.
Mr Choudhury says he is often inundated with casework where constituents are in poor quality temporary housing and are concerned about the lengthy waits for housing.
It is reported that there could be almost 30,000 people facing homelessness this year. Recent budget plans, however, will see a real-terms cut in homelessness prevention funding for local authorities of £500,000. Mr Choudhury says that this is unacceptable and that the Scottish Government must make it a priority in 2024 to give local authorities sufficient funding.
Mr Choudhury said: “I am reiterating my plea yet again this festive season to the Scottish Government to increase funding to local authorities, so that Councils can ensure that they can meet the demand for housing and have the capacity to build more social housing.
“We also must ensure that Councils have enough funding to make improvements and upgrades to current properties such as retrofitting, which could help improve conditions such as mould and damp which my constituents often report to me.
“Nobody in Scotland should be forced into homelessness or have to endure seemingly endless waiting in unsuitable housing.
“I am imploring the Scottish Government to ensure fair funding for local authorities so that they can invest what is needed in our social housing sector and I will continue to make it a priority to campaign for this in 2024.”
Happy New Year, everyone. I hope you had a great Christmas.
We can look back on a pretty momentous year. We’ve delivered record funding for the NHS and social care. Schools in England are surging up the global league tables.
We’re getting the economy growing. We’ve cut inflation in half. We’ve delivered the biggest business tax cut in modern British history.
And in just the last few weeks, we’ve seen an incredible £60 billion of investment into the UK. So my New Year’s resolution is to keep driving forward. In six days’ time, we’ll deliver a tax cut for 27 million people, worth on average £450.
Inflation is set to fall further, cutting the cost of living for everyone. And we’re not stopping there.
We’re going further to grow our economy by reducing debt, cutting taxes, and rewarding hard work, building secure supplies of energy here at home, backing British business and delivering world class education. And we’re taking decisive action to stop the boats and break the business model of the criminal gangs.
From our incredible armed forces and NHS staff who take care of all of us. To our tech experts, scientists and innovators who are putting our economy at the global cutting edge.
We should look forward full of pride and optimism for what we can do together to build a brighter future for everyone. That’s what I’m determined to do, and I wish you all a very happy 2024.
Next year will see 11% real-terms rise in unsecured debt with household debt hitting record levels in 2026
Britain “cannot afford the Tories” – TUC General Secretary to warn in New Year Message
Paul Nowak calls for early general election to “end years of national decline”
The TUC has warned that families are facing a “debt timebomb”. The warning comes as new analysis from the union body reveals that unsecured debt (loans credit cards, purchase hire agreements) is set to increase by £1,400 in real terms next year, on average, per household.
The analysis of official statistics shows that in 2024 household unsecured debt is forecast to rise by 11%.
And over the course of the next parliament unsecured debt is set to rocket by £6,000 (+43%), on average, per family.
The union body warned that unsecured debt per UK household is on course to reach a record level of £17,200 by 2026 – exceeding the previous high of £16,800 set in 2007.
By 2028 unsecured debt per household is set to top £19,000.
Unsecured debt includes credit cards, loans and purchase hire agreements, and excludes mortgages. The TUC excluded student loans from the analysis.
Families left exposed
The TUC says working people have been left brutally exposed to rising costs after years of pay stagnation.
UK workers are on course for two decades of lost living standards with real wages not forecast to recover to their 2008 level until 2028.
The TUC estimates that the average worker would now be £14,800 better off if their pay had kept up with pre-crisis real wage growth trends since 2008.
The union body says the sharp spike in debt, along with stagnant living standards, will “more than wipe out” any gains from the Chancellor’s cut to national insurance tax and leave many families “under the cosh”.
The Office for Budget Responsibility says the period between 2021 and 2024 will be the worst for living standards (real household disposable income per person) since records began in 1955.
New Year’s Message
TUC General Secretary Paul Nowak warns that Britain “cannot afford the Tories” in his annual New Year Message. Calling for an early general election, he said: “Every month the Tories stay in office the more families will be pushed into debt.
“This party of out-of-touch millionaires is more focussed on clinging to power than on growing our economy and getting living standards rising again. If something doesn’t change, real wages won’t recover to their 2008 levels until 2028.
“These 13 years of economic stagnation have left working people brutally exposed to the cost of living crisis. We cannot afford a Tory government for one day longer.”
Highlighting the choice on offer at the next election, Nowak said: “After years of national decline, Labour’s New Deal for Working People would be a gamechanger. It would be the biggest expansion of workplace rights in a generation.
“No more zero-hours contracts and no more fire and rehire. Employment rights from day one. Union rights to access the workplace. New fair pay agreements. Repealing the attacks on the right to strike.
“And more than that, the prospect of a new era of a grown-up, constructive approach to industrial relations, where disputes are solved through negotiation.
“And a clear commitment to put unions and employers at the heart of a modern-day industrial strategy.”
Highlighting the TUC’s ongoing campaign against the government’s new anti-strike laws, Paul Nowak said: “Nobody withdraws their labour lightly. It is the last resort when employers refuse to talk and refuse to compromise.
“The action taken by union members [in 2023] forced bosses across the country back to the negotiating table and secured better deals. Unions will do everything in our power to defend that right to strike. It is a cornerstone of our democracy.
“We won’t be intimidated by this government, and we won’t be bullied. The Tories’ Strikes Act is toxic, unworkable, undemocratic and likely illegal. And it’s a brazen attempt to try stop working people winning better pay and conditions.
“The entire trade union movement will rally behind any worker who is sacked for exercising their right to strike.”
As another New Year dawns, I’d like to pass on my best wishes for 2024 to my fellow Scots at home and abroad.
As we get ready to make our resolutions for the year to come, it is also time to take stock of the departing 12 months.
Looking back, we have worked hard on our mission to level up communities across Scotland.
Creating equality of opportunity for all – regardless of background – has been our ambition. Our levelling up initiatives are doing this by helping people and their neighbourhoods flourish.
Listening to local communities – and working closely with the Scottish Government and councils – is bearing fruit on our investments.
In 2023 we broke through the £2.9 billion barrier when it comes to UK Government levelling-up investment in Scotland.
Among the highlights of the last 12 months have been the creation of two Freeports with a UK Government investment of £26 million each, one on the Firth of Forth and the other on the Cromarty Firth.
These were followed by the establishment of two Investment Zones in Glasgow and the North East, both of which are benefitting from up to £160 million each from the UK Treasury.
Businesses in these areas will get special tax breaks and other support to help them flourish and create jobs.
Seven Scottish towns are receiving £20 million each as part of our Towns Fund. Levelling Up Partnerships have also been set up which will result in Dundee, the Western Isles, Argyll and Bute and Dumfries and Galloway receiving £20 million each. This funding will help transform these communities, boosting investment and jobs.
And 2023 saw the announcement of two further rounds of the Levelling Up Fund, which will pay for multi-million-pound community investment right across Scotland.
Along with my ministerial colleagues in the Scotland Office, Malcolm Offord and John Lamont, it has been great to visit many of these projects and see for ourselves the difference they are making.
Reflecting on 2023, it would be remiss of me not to mention the Scottish Government’s Gender Recognition Reform legislation.
The decision to issue a Section 35 Order for the first time in the history of devolution was not one which I took lightly. But when faced with proposals that would have an adverse impact on reserved equalities legislation I felt there was little option other than to act. I strongly believe the comprehensive judgement issued by Lady Haldane in the UK Government’s favour entirely justifies this stance.
Scotland is famous across the world for our culture and sport. We were delighted to contribute to the arts scene by contributing almost £9 million to the world-famous Edinburgh festivals.
I was thrilled that Scotland’s men’s team qualified for next year’s European Championships. It was a pleasure to welcome Steve Clarke to Dover House when we hosted a reception marking the 150th anniversary of the Scottish Football Association. Like all Scotland fans I’m tremendously excited by the thought of our team going to Germany in 2024.
A highlight of 2023 for so many was the Coronation of King Charles III. As Scottish Secretary I was greatly honoured to play a small part in an uplifting and moving ceremony which marked the beginning of a new era in the history of the United Kingdom.
I know that for many people the last few years have been extremely difficult. We are still feeling the impact of the Covid pandemic and Vladimir Putin’s illegal war in Ukraine has put pressure on our economy. Under the leadership of Rishi Sunak, the UK Government has made great strides in bringing inflation down.
And just as the broad shoulders of the UK Treasury provided unprecedented support during Covid, we have provided unprecedented financial help to tackle the cost of living crisis. Our £105 billion funding package is providing each household with an average of £3,700 in support.
By working together as one United Kingdom we can withstand the challenges the coming months and years throw at us.
And, looking ahead to 2024, my resolution is to keep working to bring more prosperity and jobs to Scotland. With that in mind, I’m looking forward to the opening of the Perth Museum, backed by £10 million from the UK Government and which will be a splendid new home for the Stone of Scone.
We will also see the signing of the full growth deals for Falkirk and Argyll and Bute, partnerships in which we will invest £40 million and £25 million respectively. And yet more money for community projects as we continue our levelling up mission.
