Holyrood needs to define more clearly its scrutiny role in response to Brexit, according to a new report to be discussed by the Finance & Constitution Committee this week.
A panel of fiscal, economic and constitutional experts says devolution is now much more complex, with its recent fiscal powers and post-Brexit changes, that the Scottish Parliament must change its approach to scrutiny after the 2021 election.
The panel recommends that to support this work a short, tightly focused independent review of the committee structure should be established, to report back to Parliament as soon as possible.
The focus of the review should be on committee remits in the next Parliament and should include consideration of the fiscal and Brexit-related issues raised by the experts, along with the legacy reports of other committees.
Holyrood’s Finance & Constitution Committee, who commissioned the expert panel’s analysis, will consider the findings this week.
Expert panel member Professor James Mitchell, University of Edinburgh said:“Devolution is now much more complex and challenging to understand with the powers of Scottish Ministers shared with UK Ministers in many significant policy areas.
“For example, in relation to income tax and in many policy areas previously within the competence of the EU. This means that the Parliament will need to be much more aware of how UK legislation impacts on devolved areas including the extent to which it constrains the powers of Scottish Ministers.
“At the same time the Parliament will need to continue to scrutinise policy developments at an EU level. Both in terms of the on-going impact of the UK-EU trade agreement on devolved areas and the extent to which the keeping pace power is used.”
Setting out the expert panel’s recommendations, Charlotte Barbour, Director of Taxation, The Institute of Chartered Accountants of Scotland said:“The Panel’s view is that if there is to be meaningful scrutiny of Brexit-related developments, the Parliament cannot merely continue with the existing approach to its scrutiny function.
“The future scrutiny burden arising from Brexit is so great that if it is carried out in an ad-hoc manner it is unlikely that it will be done effectively.
“Instead, a more systematic and carefully planned approach is required, albeit with a need for flexibility in order to react to changing circumstances. The Panel, therefore, recommends that Parliament in consultation with the Scottish Government needs to clearly define its scrutiny role in response to Brexit.
“To support this work, we propose that a short and tightly focused independent review of the committee structure should be established forthwith and report to the Parliament as soon as practically possible.
“The focus of the review should be on committee remits in the next Parliament and should include consideration of the issues raised in this report and the legacy reports of other committees.
“The review findings should help to inform the agreement of the committee structure and committee remits for Session 6.”
The expert panel also made recommendations for the committee that will succeed the Finance & Constitution Committee after the May 2021 election:
• The Panel’s view is that there is likely to be an increased demand for parliamentary time to consider tax legislation and therefore the ongoing work of the Devolved Taxes Legislative Working Group should be an early priority in Session 6.
• The Panel agreed the successor committee should explore how COVID-19 has impacted the taxation system and consider options for a restructuring of the taxes which are devolved including a human-rights based approach. The Panel recommends that this inquiry should be a priority for the successor committee.
Finance & Constitution Committee Convener Bruce Crawford MSP said: “The calibre of our expert panel speaks volumes. I welcome this insightful, authoritative analysis.
“There is much for our committee and the rest of the Parliament to consider. I am sure it will be influential on the establishment of committees in the new Parliament.”
• The devolution of further powers through the Scotland Act 2016, following the recommendations of the Smith Commission. • The operation of the UK/Scottish Government’s Fiscal Framework including in response to COVID-19. • The constitutional impact of Brexit on devolution.
The panel members, in alphabetical order, are:
• Charlotte Barbour, Director of Taxation, The Institute of Chartered Accountants of Scotland • Douglas Fraser, Business & Economy Editor, BBC Scotland • Professor Michael Keating, Centre on Constitutional Change • Professor James Mitchell, University of Edinburgh • Christine O’Neill QC, Chairman, Brodies LLP • Mairi Spowage, Deputy Director, Fraser of Allander Institute • Mark Taylor, Audit Director Audit Scotland • Dr Hannah White, Deputy Director, Institute of Government.
They were joined by Professor Tom Mullen, Professor Kenneth Armstrong and David Phillips who are Advisers to the Finance & Constitution Committee. Dr Jim Johnston, Clerk to the Committee, chaired the panel and support was provided by parliament officials.
Find more information about the Finance & Constitution Committee here.
Finance Secretary doubles funding for councils to respond to local needs
Payments to support businesses affected by the coronavirus (COVID-19) pandemic increased following the tightening of essential public health measures at Christmas.
New statistics show businesses have received £276 million through the Strategic Framework Business Fund (SFBF), the hospitality, leisure and retail top up payments and the Taxi and Private Hire Driver Support Fund since November 2020.
A total of £244 million was paid by these three funds in January alone, including £4.7 million paid to taxi and private hire drivers in the first 10 days of claims. Statistics relating to other live funds will be published in due course.
Welcoming the figures, Finance Secretary Kate Forbes also confirmed that the Local Authority Discretionary Fund will be doubled to £120 million to allow councils to respond further to local economic pressures.
Ms Forbes said: “Since the start of the pandemic we’ve done everything in our power to protect people’s livelihoods with business support accounting for over a third of total COVID-19 spend. Today’s figures demonstrate how closely we are working with colleagues in local government to ensure businesses in Scotland get the help they need.
“We understand the concerns of businesses unable to access the Strategic Framework Business Fund and that is why we are doubling the Local Authority Discretionary Fund to £120 million. This will further enable councils to respond to local economic needs and support businesses in their area.”
Ahead of this year’s Scottish Parliament elections, we’ve launched our manifesto, Standing Up for Scotland’s Mental Health, calling for radical action in order to combat a growing mental health crisis in Scotland.
Informed by over 2,500 people across Scotland, many of whom have lived experience of mental health problems, our new manifesto sets out 38 actions to make mental health a national priority.
We want to see real change, as part of this we want to see redoubled efforts on suicide prevention, action now to support children and young people and rapid access to psychological wellbeing support for adults.
In the last twelve months, Scotland has seen its population’s mental health and the mental health systems designed to support it challenged like never before. With these pressures likely to continue well into the next parliamentary term, it makes the current picture on mental health even more concerning:
One in five children referred to specialist mental health services are still being turned away
A quarter of those referred for psychological therapies wait at least four months to be seen
Deaths by suicide have risen over the last two years.
It’s clear that mental health must become a real national priority following the May elections.
Billy Watson, Chief Executive at SAMH said: “Scotland’s mental health deserves better. A growing number of people across the country are facing mental health problems and are struggling to access help. There have been too many promises on mental health and not enough action. With the added pressure brought about by the pandemic, we need a radical new plan.
“We must now, more than ever, see political and government commitment to make mental health a priority. That’s why today SAMH is launching our manifesto, urging the next Scottish Government to put the mental health of the nation first. It’s time to listen to the hopes, fears and needs of people with mental health problems.
“The next Scottish Parliament will see many new MSPs, as well as experienced members returning for a further term. We hope we can rely on each and every one of them to Stand up for Scotland’s Mental Health.”
The Standing Up to Scotland’s Mental Health manifesto reflects the real life experiences of people across Scotland. Stephanie, 19, struggled to access the support she needed through CAMHS.
Stephanie said: “After being put on the waiting list for CAMHS, it was many months before I was contacted and learnt that I’d have to go through a whole process to actually be seen.
“Eventually I ended up being rejected as I was on holiday when the letter came in about arranging my first appointment. There was a deadline that you had to get in contact by to arrange this but because I was away I ended up missing it. I got in touch but the only support and advice they could give was for me to go through the full ordeal again.
“I felt helpless and had no idea what I was supposed to do. I was reaching out which is what they said to do, but I was still being shut down. I was terrified and I didn’t know what was going on. I was thinking, ‘What if I don’t get the help, what will happen to me? Will things get worse?’ – It felt like a really big ball of emotions. The whole referral process just felt exhausting. It took a further toll on my mental health and how I dealt with it in the future, and I became closed off once again.”
The research and experiences which lie at the heart of our new manifesto shows that when people are given the support they need quickly, they can flourish.
After a suicide attempt, Robert, 39, reached out for support. This led him to ‘The Changing Room’, a SAMH project which uses the power of football to get men in their middle years talking about mental health.
Robert said: “Early on I remember thinking I’m worth my place in this group, not only is it helping me feel better but I’m going to be part of making other people in this group feel better. I felt like I was worth a lot, and for a long time I didn’t feel like I was worth much.
“Local community support is so important because shared experiences help, having someone you can relate to from a similar background makes it much more organic.”
“Many people feel isolated when they are having suicidal thoughts, I had family all around me, but I still felt isolated, because no one knew what was going on, so then being around people who understand what you’re going through can really make a big difference.”
To find out more about Standing Up for Scotland’s Mental Health, to read our full manifesto and find out how you can help drive real change for mental health, visit samh.org.uk/standup
More than one million people at greatest risk from Coronavirus (COVID-19) in Scotland have had their first dose of the vaccine.
The landmark of one million was reached on Wednesday 10 February. 69 year old John Loch from Bearsden was among those vaccinated on the day the milestone was reached. The retired businessman received his first dose at NHS Louisa Jordan in Glasgow.
The programme has now reached more than a fifth (22%) of the 4.5 million people who will be offered a vaccine.
The biggest vaccination programme ever undertaken is now moving at pace through the 70-79 age group following the opening of new mass vaccination centres at Edinburgh International Conference Centre (EICC) and P&J Live in Aberdeen and other large sites across the country.
The programme remains on track to complete first doses for all those in this age group by the end of this week. Those aged 65 and over are also receiving invitations for their appointment.
Health Secretary Jeane Freeman said: “This is an important milestone in the biggest vaccination programme ever delivered in Scotland and I would like to thank everyone involved and all those who have taken up their offer of a vaccine.
“We have now given first doses to more than a million people in the groups which were prioritised to address 99 per cent of preventable deaths associated with COVID-19. These include elderly care home residents and staff, frontline health and social care workers and those who are at risk of serious harm and death from this virus.
“Scotland’s COVID-19 vaccination programme is delivering ahead of our expectations. Our aim is to vaccinate as many people as possible with both their first and second doses as quickly as possible but the speed at which we can do this depends on supply and we expect a dip in supplies UK wide towards the end of this month.
“We hope to see a significant drop in the disease due to the vaccination programme, however this will take a number of months to evaluate fully. In the shorter term, we are monitoring the uptake rate but we also have a comprehensive surveillance system in place to monitor outcome of vaccine efficacy and disease reduction.
“Each health board is working hard to get the vaccine into people’s arms as quickly as possible, and everyone eligible will be offered the vaccine as we work our way through the priority groups.”
“We continue to urge everyone to take up their appointment when they are offered one. The vaccination programme is one of three key ways we are working to beat this virus, along with our expanded testing programme to identify cases and break chains of transmission and the important lockdown restrictions everyone in Scotland must follow. All these measures work to greatest effect when they work together.”
John Loch said: “I am delighted to have received my vaccine, particularly on the day Scotland reached a million doses. It is exciting to be a part of this milestone moment.
“I would like to thank all the staff at the Louisa Jordan for being so reassuring and making the process so simple and straightforward.”
NHS LOTHIAN VACCINATION FIGURES
Lothian MSP, Miles Briggs, said yesterday: “It is positive that we have seen the number of people vaccinated increase by over 50% since the introduction of mass vaccinations centres last week.
“There are some concerns that NHS Lothian is behind other health boards in the percentage of people vaccinated, but it is important that we keep up the momentum.
“The sooner the people who are most vulnerable to Covid-19 are vaccinated the sooner we can get pupils back to school and reopen the economy with confidence.
“A huge thank you to all NHS Lothian staff working tirelessly in getting the vaccine rolled out and to members of the public for keeping social distanced to suppress the virus, whilst vaccines are rolled out.”
A Health and Sport Committee report into the future of social care has said those delivering and receiving care must be at the heart of social care reform with the current model described as unsustainable.
The Committee say a national conversation on the future of social care is needed and that the myriad issues facing staff must be addressed in the development of any new system. The Committee’s report says the problems faced by the care sector have been compounded by the COVID-19 pandemic.
The Committee express concern over the lack of value placed on social care and social care staff, in stark contrast to NHS staff. The report emphasises the ongoing difficulty the sector faces in attracting and retaining staff; citing a lack of training and staff development opportunities, alongside low pay as the key reasons for this.
A number of problems with the current care model are highlighted by the Committee including the continued lack of progress on health and social care integration. They also recommend the Scottish Government seek alternative models of commissioning and procurement with the current ones described as ‘counter-intuitive’.
The Committee describe the current model of crisis driven, reactive care as unsustainable and say more must be done to shift the focus to a preventative model, involving local communities in the future planning of health and social care services.
Lewis Macdonald MSP, Convener of the Health and Sport Committee, said: “Throughout this inquiry the message we have been given from those receiving care, and from paid and unpaid carers, is that they have not felt listened to and have been undervalued. That’s why it is essential that they are at the centre of much needed reform of the social care system.
“There is no doubt the current model of care is unsustainable, with some of the issues facing the sector exposed by the pandemic. We want to see a nationwide conversation held into the future of social care and we hope that the findings of our report, and the independent review, can help in shaping this future.
“We are grateful to all of those from across the care sector who provided evidence to our inquiry and gave their keen insight into how it is experienced in Scotland.
“I’d like to put on record our thanks to the tireless and passionate workforce, both paid and unpaid, who undoubtedly deserve better.”
Cllr Sue Webber is the Edinburgh Conservatives’ Transport Spokesman in Edinburgh Council and candidate for Edinburgh Western in the Scottish Parliamentary elections:
In May 2020, the SNP-Labour Council used emergency Covid-19 powers to rush through several road closures, an unnecessary Low Traffic Neighbourhood in East Craigs and the widespread introduction of segregated cycleways along Comiston Road and Duddingston Road.
These schemes were first introduced as a temporary measure during the pandemic. But the SNP-Labour Council now intends to make these changes permanent.
Local opposition has been substantial but the SNP-Labour Council have continued to ignore residents. One group, Get Edinburgh Moving (GEM), had to resort to threats of Legal Action against the Council to stop the introduction of the LTN in East Craigs.
I have led opposition on the Council, consistently voicing the public’s concerns about the negative impact these immensely unpopular measures are having on livelihoods and local businesses.
From the outset, I demanded greater community involvement and political scrutiny on the schemes. I too have been ignored.
If you oppose the SNP-Labour Council’s undemocratic and reckless changes to our city then please sign below to fight back against the permanent imposition of these measures.
Local vaccination figures show that 80,066 people have been vaccinated in NHS Lothian, equivalent to 10.6% of the population over the age of 16.
Last week NHS Lothian said the Scottish Government vaccination figures were invalid, because they did not include vaccinations that had happened at GP practices in NHS Lothian.
At the Scottish Parliament on Tuesday Health Secretary Jeane Freeman admitted that “we do need to vaccinate faster in Scotland than we have been doing.”
Scotland is lagging behind the rest of the UK in the number of people vaccinated so far, with SNP Ministers rearranging their target for all over 70s to receive a letter to be vaccinated by the end of last week, to end of this week.
The delivery of vaccines to GP practices has been highlighted as a crucial area where the delivery of the vaccines is being held up, with GP practices limited to 100 vaccines doses a week.
Lothian MSP, Miles Briggs, said:“It is worrying that SNP Ministers are lagging behind other parts of the United Kingdom in the Covid-19 vaccine rollout.
“An efficient vaccination rollout is vital for protecting elderly and at risk people from Covid-19, but also so that our schools can fully reopen and businesses get going again.
“Every day that the vaccinations rollout is delayed is another day where pupils aren’t able to get back to school and businesses won’t be making any income.
“In NHS Lothian it is not clear whether GP practice vaccination numbers have been included in the total, and it is very concerning that SNP Ministers don’t know how many people have been vaccinated.”
The Conservative Lothians list MSP also expressed concern over Accident and Emergency waiting times figures released on Tuesday.
They revealed that 83.4% of patients were seen within the 4 hour waiting time target at A&E departments in Lothian, for the December 2020, the latest figures available.
The figure seen within 4 hours is comparable to December 2019, when 80.4% of patients were seen within the 4 hour standard in NHS Lothian, despite attendance dropping from 23,724 to 16,916.
The Royal College of Emergency Medicine warned that staff had been working relentlessly for 11 months and “Studies have shown many have face psychological distress, stress and even PTSD as a result of the pandemic.
Lothian MSP has called on SNP Ministers to step up their efforts to support NHS Lothian frontline staff, and said they that SNP Ministers have not done enough, despite unprecedented funding from the UK government to overcome Covid-19.
Mr Briggs said that members of the public also have a role to play in alleviating pressure on NHS services.
Lothian MSP, Miles Briggs, said:“NHS Lothian frontline staff have been working flat out to overcome Covid-19 for almost a year and we must all do everything we can to alleviate pressure on them as the Covid-19 vaccines is rolled out.
“It is important that people still go to A&E if they have an emergency, and not be put off by Covid-19, but people must make an appointment with their GP if they have a condition which doesn’t need immediate medical attention.”
“SNP Ministers have not done enough to support NHS Lothian frontline staff, despite record funding from the UK Government, with waiting times growing for A&E despite fewer people attending.
“Keeping socially distanced and following Covid-19 rules is crucial for a bit longer, as the vaccines is rolled out, so that our NHS doesn’t get overwhelmed.”
The highest number of vaccinations in one day was recorded on Wednesday: 45,085 people had a jab, taking the total of those who have had a first injection to 694,347.
Details of how £11.6 billion of funding from the Scottish Government will be distributed to individual local authorities in 2021-22 have been published.
The settlement provides councils with an increase in day to day revenue spending of £335.6 million, including £90 million to compensate local authorities which choose to freeze council tax and a further £259 million will be added in one-off funding to support ongoing COVID-19 pressures.
In total, councils will receive additional revenue funding of almost £600 million to support vital local government services in 2021-22.
The Scottish Government will also increase a scheme which compensates councils for the loss of income from sales, fees and charges due to the pandemic from £90 million to £200 million in 2020-21.
Finance Secretary Kate Forbes said: “This budget is being delivered in exceptional circumstances as we continue to battle a pandemic that has shaken our society and economy to the core.
“The local government settlement will help to fund those vital public services that are much valued and needed.
“It includes additional funding of £59 million to complete the expansion of early learning and childcare to 1,140 hours a year, £72.6 million for investment in health and social care and £7.7 million to support the inter-island ferries in Shetland, Orkney and Argyll and Bute.
“Just as we have chosen not to increase tax rates, ensuring people pay no more than last year, I have taken the significant step of offering funding equivalent to a council tax increase of around 3% to councils who choose to freeze council tax. I look to local government to join with me in providing the much needed financial reassurance to those who are struggling.
“We need to focus on how we rebuild and renew our country, and the funding I am providing to local authorities reflects the key role that they will continue to play in that journey.”
LOCAL GOVERNMENT FINANCE 2021-22: TOTAL REVENUE SUPPORT
Local Authority
2020-21
2021-22
Change
Change.
£m
£m
£m
%
Aberdeen City
364.6
376.0
11.4
3.1
Aberdeenshire
460.2
479.2
19.0
4.1
Angus
220.2
226.9
6.7
3.1
Argyll & Bute
208.8
213.3
4.6
2.2
Clackmannanshire
103.0
105.7
2.7
2.6
Dumfries & Galloway
306.8
314.6
7.9
2.6
Dundee City
320.1
327.7
7.7
2.4
East Ayrshire
249.9
256.9
7.0
2.8
East Dunbartonshire
202.1
208.0
5.9
2.9
East Lothian
189.2
194.7
5.5
2.9
East Renfrewshire
191.3
196.1
4.8
2.5
Edinburgh, City of
799.6
831.9
32.3
4.0
Eilean Siar
99.8
101.6
1.8
1.8
Falkirk
308.2
315.7
7.5
2.4
Fife
702.4
725.3
22.9
3.3
Glasgow City
1,333.1
1,362.9
29.8
2.2
Highland
493.0
506.3
13.3
2.7
Inverclyde
177.6
181.9
4.3
2.4
Midlothian
178.9
183.7
4.8
2.7
Moray
173.6
180.2
6.6
3.8
North Ayrshire
296.7
303.9
7.2
2.4
North Lanarkshire
673.1
691.2
18.1
2.7
Orkney Islands
78.2
82.7
4.5
5.7
Perth & Kinross
271.0
281.3
10.3
3.8
Renfrewshire
341.9
351.2
9.3
2.7
Scottish Borders
224.0
233.2
9.2
4.1
Shetland Islands
90.0
97.3
7.3
8.1
South Ayrshire
217.4
223.7
6.3
2.9
South Lanarkshire
610.4
625.8
15.5
2.5
Stirling
183.5
188.7
5.2
2.9
West Dunbartonshire
203.0
207.4
4.4
2.2
West Lothian
344.5
353.3
8.8
2.6
Undistributed
51.9
75.1
23.2
44.8
SCOTLAND
10,667.8
11,003.4
335.6
3.1
Speaking after last week’s Budget announcement, COSLA’s Resources Spokesperson, Councillor Gail Macgregor, said: “Given the context this year, perhaps it is not overly surprising that the Budget is very much a mixed bag for Local Government –the main issue is that the overall allocation adds very little into our core financial settlement which has been eroded over the years.
“The Cabinet Secretary, in her speech, recognised Councils’ role as deliverers of vital services and yes on the face of it there is more money but that is predominantly for Government priorities.
“The addition of £259 million flexible funding for 2021/22 will help councils address Covid related costs next year, including providing the support that the most vulnerable in our communities will require but we need solid assurances that if this figure falls short, as is expected, that further funding will be forthcoming.
“To deal with pressures this year, the announcement of an additional £110 million to help compensate Councils for loss of income, which when added to the money we have already had, makes £200 million, is to be welcomed.
“However, for many councils this won’t be enough – income loss will leave a very large hole in their finances for years to come. We welcome that the Cabinet Secretary for Finance has listened to Leaders requests for further funding to cover loss of income but there is still work to do where there is a shortfall.
“We welcome elements of today’s announcement but overall this budget falls short of what we would consider a fair settlement for Local Government. We would anticipate further constructive discussions with the Cabinet Secretary in the next few weeks.”
Significant new investment to drive economic recovery, bolster public services and support families underpins the Scottish Government’s spending and taxation plans for the coming year.
Presenting the Scottish Budget 2021-22 yesterday, Finance Secretary Kate Forbes announced support for jobs and skills totalling around £1.1 billion.
Job creation is a priority, with measures including a commitment to launch a new Green Workforce Academy to help people secure work in the low carbon economy, a £100 million Green Jobs Fund over the next parliament, £7 million towards making Scotland a world class hub for digital business and an additional £125 million for the Young Person’s Guarantee, employability and skills.
Health receives record funding of over £16 billion, an increase of 5.3% on 2020-21, along with a further £869 million to continue tackling coronavirus (COVID-19), including funding for the vaccination and test and trace programmes. This means that, over the course of this parliament, investment in health has increased by £1.8 billion in real terms – more than tripling the commitment to increase health funding by £500 million more than inflation.
To support family budgets, £90 million is being made available for local authorities to freeze council tax.
Public sector workers earning up to £25,000 can receive at least a 3% pay increase via a £750 cash underpin, while there is a 1% rise for those earning above that amount, capped at £800 above £80,000.
Economic recovery, supporting public services and helping families are at the heart of this year’s Scottish Budget.
£11.6 billion for local government, which represents a £335.6 million increase in core revenue funding, including the £90 million to compensate local authorities which choose to freeze Council Tax, plus £259 million in one-off funding
£1.9 billion for primary health care to help deliver more services in the community. A further £550 million is earmarked to build new Elective Care Centres and the Baird Family Hospital and Anchor Centre in Aberdeen
£98.2 million to improve Scotland’s digital infrastructure and deliver access to high quality broadband and mobile coverage.
£711.6 million for affordable housing and £68 million for the first full year of the Scottish Child Payment, tackling child poverty
a new £55 million programme to support town centres and community-led regeneration projects
more than £3.1 billion in resource and capital investment for education and skills, and £567 million to provide 1,140 hours of early learning and childcare, supporting implementation of the UK’s most ambitious childcare programme
£1.3 billion for the Scottish Police Authority, including a £60 million increase in Police Scotland’s revenue budget – exceeding an earlier pledge of a £100 million boost over five years
£1.6 billion for rail and bus services and £100.5 million for active travel to consolidate changes to healthy, green travel options seen during the pandemic
doubling the Rural Tourism Infrastructure Fund, helping tourist attractions and local communities make improvements to cope with increased visitors
an additional £27 million to expand woodland creation and the associated infrastructure, supporting green jobs
Business support remains a priority and the Finance Secretary confirmed that the Local Authority Discretionary Fund will be doubled to £60 million in this financial year to allow councils to respond to local needs. In addition, businesses eligible for the Strategic Framework Business Fund will receive full Level 4 payments on 22 February, regardless of any future changes to local restrictions.
The Scottish Government will also increase a scheme which compensates councils for the loss of income from sales, fees and charges due to the pandemic from £90 million to £200 million in 2020-21.
Ms Forbes said: “This budget is being delivered in exceptional circumstances as we continue to battle a pandemic that has shaken our society and economy to the core, and as we face the harmful impacts of Brexit.
“It promotes innovation and reform, new beginnings, new directions. And while it continues to target support in the immediate term, it also tracks a course over the next year to build a fairer, stronger and greener country.
“To help drive our green economic recovery I am providing the stability and certainty that businesses have asked for through the most competitive reliefs packages in the UK. There are innovative measures to promote sustainable growth and we are investing more than £1 billion in jobs and training.
“The budget sets out a distinctive Scottish pay policy that again supports the lowest paid, charting a different course to the ill-judged pay freeze announced by the UK Government. It also bolsters our health service, delivers more affordable homes, provides additional childcare places and helps young people into work.
“Throughout these dark times we have never given up hope. This budget seeks to build on that hope and, by focusing on how we rebuild and renew our country, make the light at the end of the tunnel shine that bit brighter.”
Our budget helps to deliver stability now, but it also looks forward to the future.
Watch Finance Secretary @KateForbesMSP explain our priorities for the coming year ⬇
The STUC has expressed its disappointment at what effectively amounts to a real-terms pay freeze for thousands of public sector workers as the Budget offers 1% for those earning pay above £25,000 per year including most teaching staff, firefighter and civil servants.
The STUC General Secretary, Roz Foyer pointed to the real terms increase in the Scottish Budget of nearly 4% and contrasted that with today’s pay offer.
“Whilst it is right and proper that the pay of low paid workers should be underpinned, for most workers this increase is still below the budget uplift received by Holyrood from Westminster. Far too many of our key workers have been left out in the cold.
While supporting Scottish Government calls for greater borrowing powers, Foyer also questioned whether tax cuts for high earners were the right priority and whether funding for Local Government was sufficient.
“We strongly support the Scottish Government’s calls for greater borrowing powers. However, the Cabinet Secretary has managed to find wiggle room to provide £125 million in blanket tax cuts. She has also reduced income taxes for high earners – a policy that raised £51 million last year. Given this, it is deeply disappointing that she hasn’t been able to better reward key workers.
“While the Cabinet Secretary spoke about an increase in funding for Local Government, it appears this amounts to less than a 1% increase, a level that is nowhere near sufficient to cover gaping cuts to services from years of austerity.”
Responding to the Budget announcement, Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce, said:“The position of Scottish businesses has never been so precarious. The Scottish Government’s announcements today are welcome but do not go nearly as far enough to avoid risk of widespread business collapse and job losses.
“Yes, there is light at the end of the tunnel with the vaccination programme but restrictions to prevent the spread of the virus have been devastating. We understand that the Cabinet Secretary for Finance faces difficult choices in setting the budget particularly ahead of that of the UK, in a time when the country faces extraordinary challenges.
“Business will be disappointed that further details on an economic route map on how we will exit this crisis aligned with the roll out of the vaccine were not provided today. This is a critical component if businesses are to unleash the investment our country so desperately needs.”
On Non-Domestic Rates:
“The Cabinet Secretary has listened to us and has delivered a reduction in the Non-Domestic Rate (NDR) poundage rate. However, longer-term, we believe the system is unfair and needs significant reform.
“Plans for a three months extension of rates relief is a too short a reprieve. We need commitment to a 12-month reliefs package to provide the certainty business needs. Clearly there is more to do, and we await further announcements from the Chancellor to see what further support can be made available and expect Scottish Government to pass on the equivalent consequential funding to businesses.”
On Business Support:
“The doubling of the discretionary fund is good news particularly for those businesses who have fallen through the gaps of other support packages. However, it is imperative that the process for businesses is clear, transparent and quick across all local authorities to ensure funding is available for businesses quickly and immediately.
“Now is the time to pull out the stops and redouble efforts to ensure business support comes through. We need to see a significant ramping up to get those funds that have been promised out the door and to businesses.”
On Infrastructure:
“The Scottish Government’s commitment to infrastructure investment is absolutely necessary for Scotland and the UK to be in a position to build back better and meet net zero ambitions. Now is the time for a vision driven by ambition and a willingness to collaborate like never before. This must be put first and foremost ahead of any political point scoring this year.”
On skills and training:
“SCC welcomes these important steps to support jobs, employment and training. We called for training academies and we are pleased to see the Cabinet Secretary has acted on our recommendations, particularly the focus on green jobs. It is now critical that the government and academia works in partnership with the private sector to ensure benefits are fully realised.”
On Protecting Jobs:
“We maintain our call to the Chancellor of the Exchequer to extend the furlough scheme beyond April 2021 and outline further initiatives to protect business and jobs at the UK Budget in March.”
On mental health support:
“Business will welcome this as we understand the toll the pandemic has taken on our customers, employees and communities.
“Recovery of our wellbeing is just as important as economic recovery, with many employers investing in their own employee support programmes. This commitment from the Scottish Government will enhance these efforts.”
Responding to Kate Forbes’ announcement that public sector workers on salaries up to £25,000 a year will receive a 3 per cent increase, GMB Scotland Senior Organiser Drew Duffy said: “This will be met with fury among the lowest paid in Scotland’s public sector.
“Kate Forbes was among the many politicians applauding our frontline heroes, now she is saying ‘thank you’ with a rise that won’t amount to more than a tenner a week for most.
“There is no value here, and it’s an insulting response from the Scottish Government to the ongoing struggles of our key workers in this pandemic.”
Tracy Black, CBI Scotland Director, said:“The Finance Secretary is right to put business support and economic recovery front and centre of this year’s draft Budget. With jobs, firms and livelihoods still hanging by a thread, Scotland can’t afford to wait until the pandemic is over before initiating plans for a sustained recovery.
“Health must come first and lowering transmission rates remains the priority. Yet with so many struggling companies across Scotland, it’s only right that proper consideration is given to reopening the economy when it is safe to do so. This should be driven by data and done in dialogue with business.
“The private sector is critical to a successful recovery and moves to protect firms’ immediate futures are welcome. Continuing rates reliefs for the hard-hit hospitality, retail and tourism sectors is welcome, however a three-month window remains a challenging timetable for firms under real pressure. Companies will also be relieved to see a continued commitment to Covid business support and no further changes on income tax.
“The UK and Scottish governments must now work together to provide certainty over business support, ensuring that the firms we need to drive economic recovery survive the tough weeks and months ahead.
“Longer term, the figures from the Scottish Fiscal Commission paint a worrying picture and highlight the scale of the challenge ahead. Maintaining a laser focus on boosting productivity and protecting competitiveness are key.”
Responding to the Scottish Government’s Budget statement delivered today by Finance Secretary Kate Forbes MSP, Director of CAMRA Scotland Joe Crawford said: “Extending the business rates holiday for pubs and social clubs for a further three months into the next financial year is a desperately-needed lifeline for pubs who have struggled for almost a year now.
“But three months won’t be enough. CAMRA will be joining the Scottish Government in calling on the Chancellor to use his Budget on 3rd March to give the Scottish Government enough money to extend this Business Rates holiday for the entire 2021/22 financial year.
“Pub-goers and licensees will now want to see the Scottish and UK Governments work together to make sure pubs and breweries get enough long-term financial support to thrive when they can reopen. This must include grants, furlough support as long as there are restrictions on trading, extending the VAT cut on beer to help pubs that don’t serve food, and cutting tax on beer served in pubs to help them compete with supermarket booze.
“Pubs and social clubs are a force for good in our communities, bringing people together and tackling loneliness and social isolation. They will be a crucial part of our national healing process after COVID and deserve to be supported until they can trade again.”
SLTA Managing Director, Colin Wilkinson said:“The Scottish Licensed Trade Association welcomes today’s announcement by Finance Secretary Kate Forbes that the Scottish Government will extend 100% non-domestic rates relief for retail, hospitality and leisure for at least the first three months of the new financial year. However, it doesn’t go far enough.
“Today’s announcement is good news, as is the promise of further ongoing business support and it gives us a much-needed stay of execution. The reduction in the poundage rate, from 49.8 pence to 49 pence, is also very welcomed.
“Further support from the Westminster Government is crucial and our hope is that UK Chancellor, Rishi Sunak, steps up to the mark by extending the current furlough scheme, committing to retain the Commercial Rates Relief and the temporary 5% reduced rate of VAT for hospitality beyond March 31 and well in to 2022.
“Our sector is battered and bruised and the sooner both the Scottish and UK Governments can provide clarity on support and an indication of an exit strategy out of this pandemic the better.”
Chief Constable Iain Livingstone has welcomed the Scottish Government’s Budget announcement.
Mr Livingstone said: “I welcome the announcement to eliminate the structural deficit in policing’s funding.
“The reform of policing in Scotland has brought many benefits to all communities across the country, while £200m has been returned to the public purse every year compared to legacy arrangements.
“The last 12 months have demonstrated the relentless nature of policing. Our mission to prevent harm, support communities and keep people safe has been evident throughout the pandemic.
“We will continue to enhance capacity and capability to protect the people of Scotland in the public, private and virtual spaces.
“Responsive and accessible local policing is deeply valued by our fellow citizens and will always lie at the heart of Police Scotland’s purpose and approach.”
Prime Minister’s statement on coronavirus: 26th January 2021
I am sorry to have to tell you that today the number of deaths recorded from Covid in the UK has surpassed 100,000, and it is hard to compute the sorrow contained in that grim statistic.
The years of life lost, the family gatherings not attended and, for so many relatives, the missed chance even to say goodbye.
I offer my deepest condolences to everyone who has lost a loved one: fathers and mothers; brothers and sisters; sons and daughters and the many grandparents who have been taken.
And, to all those who grieve, we make this pledge: that when we have come through this crisis, we will come together as a nation to remember everyone we lost, and to honour the selfless heroism of all those on the front line who gave their lives to save others.
We will remember the courage of countless working people – not just our amazing NHS and care workers, but shop workers, transport staff, pharmacists, teachers, police, armed forces emergency services and many others – who kept our country going during our biggest crisis since the Second World War.
We will commemorate the small acts of kindness, the spirit of volunteering and the daily sacrifice of millions who placed their lives on hold time and again as we fought each new wave of the virus, buying time for our brilliant scientists to come to our aid.
In that moment of commemoration, we will celebrate the genius and perseverance of those who discovered the vaccines and the immense national effort – never seen before in our history – which is now underway to distribute them, one that has now seen us immunise over 6.8 million people across the United Kingdom.
And when those vaccines have finally freed us from this virus and put us on a path to recovery, we will make sure that we learn the lessons and reflect and prepare.
And, until that time, the best and most important thing we can all do to honour the memory of those who have died is to work together with ever greater resolve to defeat this disease.
And that is what we will do.
Keir Starmer, Leader of the Labour Party, said: “This is a national tragedy and a terrible reminder of all that we have lost as a country.
“We must never become numb to these numbers or treat them as just statistics. Every death is a loved one, a friend, a neighbour, a partner or a colleague. It is an empty chair at the dinner table.
“To all those that are mourning, we must promise to learn the lessons of what went wrong and build a more resilient country. That day will come and we will get there together.
“But for now we must remember those that we have lost and be vigilant in the national effort to stay at home, protect our NHS and vaccinate Britain.”
