Tag: Politics

Chancellor on China: ‘Stable relationship that supports secure growth is in our national interest’

  • Chancellor visiting Beijing for the first UK-China Economic and Financial Dialogue since 2019 – seeking stability in relationship with world’s second largest economy to achieve secure and resilient growth.
  • Visit delivers on commitment to explore deeper economic cooperation made by Prime Minister and President Xi at G20 in November.
  • Reeves will also raise difficult issues, including China’s support for Russia illegal war in Ukraine and concerns over constraints on rights and freedoms in Hong Kong.

Making working people across Britain secure and better off is ‘at the forefront of the Chancellor’s mind’ while in Beijing this weekend for a UK-China Economic and Financial Dialogue (EFD).

Rachel Reeves will meet with her counterpart, Vice Premier He Lifeng, in the Chinese capital today for a series of conversations around the financial services relationship between the two countries, support for safe trade and investment and the importance of cooperation on global issues like climate change.

She will be joined by Bank of England Governor Andrew Bailey, Chief Executive of the Financial Conduct Authority Nikhil Rathi, and senior representatives from some of Britain’s biggest financial services firms as she seeks outcomes that benefit our businesses, support secure and resilient growth in the UK, and finance tackling shared global challenges.

The Chancellor’s visit follows a meeting between Prime Minister Keir Starmer and President Xi Jinping at the G20 Summit last autumn, where they discussed deepening the economic and trade relationship shared by the UK and China, in order to yield mutual benefits, support growth, and have candid discussion on issues where our views differ. As part of this, the Chancellor is expected to raise constraints on rights and freedoms in Hong Kong and to urge China to stop its material and economic support for the Russian war effort in Ukraine.

This is part of the consistent, long term and strategic approach that the government is taking in managing the UK’s relations with China, rooted in UK and global interests. The government will co-operate where it can, compete where it needs to, and challenge where it must, including to protect our values and national security as the first duty of government.

Ahead of her visit, Chancellor of the Exchequer Rachel Reeves said: “Growing the economy and raising living standards is front and centre of this government’s Plan for Change. That growth must be secure, resilient, and built on stable foundations, including through careful pragmatic cooperation with international partners.

“By finding common ground on trade and investment while being candid about our differences and upholding national security as the first duty of this government, we can build a long-term economic relationship with China that works in the national interest.”

While in Beijing, the Chancellor will also visit Brompton’s flagship store. The enduring British bike brand is celebrating its 50th anniversary year, and its flourishing community in the Chinese capital as its foremost market is a major success story for UK exports to China.

In addition to building on the financial services relationship, the EFD will also seek to bring down barriers that British businesses face when looking to export or expand to China, supporting them to seize growth opportunities and follow in the footsteps of brands like Brompton, and other cornerstones of British culture and industry like Jaguar Land Rover, Unilever and Diageo – three companies whom Reeves will also meet with during her visit.

Reeves is also to visit Shanghai on Sunday to engage with representatives across British and Chinese business. Alongside London, the city is a leading global financial centre which has long been important for UK-China economic and financial links, including in financial services with the landmark financial market connectivity initiative between the London Stock Exchange and the Shanghai Stock Exchange entering its sixth year.

China is the world’s second largest economy and the UK’s fourth largest single trading partner, with a trade relationship worth almost £113 billion, and with exports to China supporting over 455,000 jobs in the UK in 2020.

UK stagflation crisis threat demands action

The UK economy is staring down the barrel of the stagflation gun, with stagnant growth and persistent inflation combining to create one of the most challenging financial environments in over a decade. 

This is the stark warning from Nigel Green, CEO of deVere Group, as this week the 30-year gilt yield hit a staggering 5.25%—its highest point since the 2008 financial crisis—underscoring the scale of the issue. 

He says: “Stagflation’s grip on the UK has been exacerbated by weak domestic growth, which under normal circumstances would prompt the Bank of England to lower interest rates. 

“However, with inflation still uncomfortably high, policymakers find themselves in a precarious position, hesitating to make moves that could further weaken the pound and worsen price pressures. 

Nigel Green continues: “For Chancellor Rachel Reeves, the situation is particularly dire. Her key fiscal rule—eliminating all non-investment borrowing by 2029—now hangs in the balance, as rising interest payments on debt eat into the Treasury’s capacity to act. 

“Achieving this goal will demand either politically challenging tax increases or deep public spending cuts. Both measures will hurt economic growth, amplifying the stagflationary spiral. 

“The rise in gilt yields signals growing investor caution about the UK’s economic outlook. 

“Higher borrowing costs are creating ripple effects across sectors, from property to retail, as businesses and consumers alike face higher for longer interest rates. At the same time, the weakening pound, spurred by fears of stagnation, makes UK assets more attractive to international investors.

“For global investors, the UK’s predicament is not just a warning—it’s a call to action. Stagflation may erode domestic purchasing power, but it also opens the door to undervalued opportunities in key sectors, particularly for those with a long-term strategy. 

“Fixed-income securities are more appealing given their higher yields, especially for those seeking safe havens in a turbulent global economy.”

While stagflation is a daunting challenge, it also forces innovation and adaptation. 

“For investors with ties to Britain, this is the time to reassess portfolios, hedge against inflation, and identify sectors that can thrive in a stagflationary environment. History teaches us that industries such as energy, healthcare, and tech have shown resilience, even in periods of economic stagnation.

“The gilt market itself is worth watching closely. The recent yield spike suggests a shift in sentiment, but for those who act decisively, these higher yields could lock in significant returns over the medium term. 

“Similarly, the weakening pound, while a burden for imports, is a boon for exporters and foreign investors looking to acquire UK assets at a relative discount.”

Nigel Green concludes: “The looming spectre of stagflation may sound like a warning bell, but it’s also a call for decisive action. The UK’s challenges are real, but so are the prospects for those who think globally and act strategically.”

Choudhury leads Holyrood debate on access to diabetes technology

“TYPE 1 DIABETES DOES NOT CHANGE ONCE YOU CROSS THE BORDER, WHY SHOULD TYPE 1s IN SCOTLAND MISS OUT AND RECEIVE WORSE CARE BASED ON WHERE THEY LIVE?”

Scottish Labour MSP for Lothian Region, Foysol Choudhury, led the Scottish Parliament’s first Member’s Business of 2025 on one of Scotland’s most pressing healthcare technology issues – access to medical technology for diabetic patients.

This debate comes after much campaigning from both in and outside of parliament, including groups like iPAG (Insulin Pump Awareness Group), Diabetes Scotland, and MSPs like Mr. Choudhury, fellow Lothian MSP Sarah Boyack and Labour’s health spokesperson, Jackie Baillie.

Access to diabetes technology is crucial for people with Type 1 diabetes (T1D), an incurable autoimmune condition that requires lifelong insulin therapy and constant management, including making up to 180 more daily decisions about their health to balance blood glucose levels.

Access to diabetes technologies is essential to reducing the physical and mental burden of type 1 diabetes and preventing serious complications like seizures, heart disease, blindness, kidney failure, and death.

The physical and mental toll of T1D is immense, often causing symptoms like lethargy, nausea, and anxiety, as well as diabetes distress, but tailored treatments and access to current technologies are critical to easing this burden and improving quality of life.

This push for access to technology comes not only from campaign groups and politicians but also from those suffering long wait times to access HCL systems, with Scottish Labour figures showing about 3,000 patients waiting across Scottish health boards. Nearly 1,000 are waiting in Lothian alone, with some in Scotland waiting over five years for an insulin pump.

In June 2024, the Scottish Government announced “up to” £8.8 million to improve access to diabetes technology, including pumps and continuous glucose monitors. Yet health boards are still facing significant pressures to fund diabetes technology with the ongoing cost of managing and replacing these devices.

Some have stated that patients outside the identified priority groups will not have access to this technology for the foreseeable future. As of November, NHS Lothian has stated that there has been no additional funding for dieticians, diabetes nursing, and administrative costs from the Scottish Government.

As a result, these constraints are driving a shift toward less suitable options, such as systems that prevent carers from monitoring glucose levels remotely. Families report being offered Freestyle Libre 2+ or Freestyle Libre 3 as standard, with little consideration for individual needs.

This approach poses significant safety risks, particularly for young children and individuals unable to manage their own systems. This goes against SIGN 170, a toolkit published by NHS Health Improvement Scotland and the Scottish Intercollegiate Guidelines Network.

During the debate, MSP Choudhury emphasised: “Type 1 diabetes does not change once you cross the border, why should type 1s in Scotland miss out and receive worse care based on where they live?

“Diabetes technology is genuinely preventative care which will save the NHS money in the long term.”

Mr. Choudhury concluded: ““I want to finish by asking members to place themselves in the shoes of a type 1. Knowing the technology to change your life is available, but there is no political will to ensure you get it soon. Imagine the frustration you would feel day by day. We cannot just tell people to wait.”

Online activist and T1 diabetic, Lesley Ross, contributed online: “We shouldn’t have to fight for the best possible care when we are struggling to manage our condition.”

Chair of iPAG Scotland, Mary Moody contributed online: “We know that diabetes teams across Scotland want to do the best for their patients but are restricted by administrative and budgetary constraints.

A toolkit to assist decision-making is published by NHS Health Improvement Scotland and the Scottish Intercollegiate Guidelines Network,

(SIGN 170 – https://www.sign.ac.uk/our-guidelines/optimising-glycaemic-controlin-people-with-type-1-diabetes/)

but may be disregarded with people being given equipment that does not meet their exact needs and may put them at risk. This has got to improve. Patient safety has to come first.”

Following the debate, MSP Choudhury concluded: ““I want to thank the campaigners and type 1s who have been advocating and contributing to this discussion and thank them for their hard work.”

UK Government crackdown on explicit deepfakes

Predators who create sexually explicit ‘deepfakes’ could face prosecution as the Government bears down on vile online abuse

  • Government to make creating sexually explicit ‘deepfake’ images a criminal offence
  • Perpetrators to face up to two years behind bars under new offences for taking an intimate image without consent and installing equipment to enable these offences
  • Package delivers on UK Government’s Plan for Change and manifesto commitment to protect women and girls

Predators who create sexually explicit ‘deepfakes’ could face prosecution as the Government bears down on vile online abuse as part of its mission to make our streets safer.

The proliferation of these hyper-realistic images has grown at an alarming rate, causing devastating harm to victims, particularly women and girls who are often the target.

To tackle this, the government will introduce a new offence meaning perpetrators could be charged for both creating and sharing these images, not only marking a crackdown on this abhorrent behaviour but making it clear there is no excuse for creating a sexually explicit deepfake of someone without their consent.

The Government will also create new offences for the taking of intimate images without consent and the installation of equipment with intent to commit these offences – sending a clear message that abusers will face the full force of the law.

 Victims Minister Alex Davies-Jones said: “It is unacceptable that one in three women have been victims of online abuse. This demeaning and disgusting form of chauvinism must not become normalised, and as part of our Plan for Change we are bearing down on violence against women – whatever form it takes.

“These new offences will help prevent people being victimised online. We are putting offenders on notice – they will face the full force of the law.”

While it is already an offence to share – or threaten to share – an intimate image without consent, it is only an offence to take an image without consent in certain circumstances, such as upskirting.

Under the new offences, anyone who takes an intimate image without consent faces up to two years’ custody. Those who install equipment so that they, or someone else, can take intimate images without consent also face up to two years behind bars.

The move delivers on the Government’s manifesto commitment to ban the creation of sexually explicit deepfakes as well as recommendations from the Law Commission relating to intimate images.

Alongside existing offences of sharing intimate images without consent, this will give law enforcement a holistic package of offences to effectively tackle non-consensual intimate image abuse.

Baroness Jones, Technology Minister, said: “The rise of intimate image abuse is a horrifying trend that exploits victims and perpetuates a toxic online culture. These acts are not just cowardly, they are deeply damaging, particularly for women and girls who are disproportionately targeted.

“With these new measures, we’re sending an unequivocal message: creating or sharing these vile images is not only unacceptable but criminal. Tech companies need to step up too – platforms hosting this content will face tougher scrutiny and significant penalties.”

Campaigner and presenter Jess Davies said: “Intimate-image abuse is a national emergency that is causing significant, long-lasting harm to women and girls who face a total loss of control over their digital footprint, at the hands of online misogyny. 

“Women should not have to accept sexual harassment and abuse as a normal part of their online lives, we need urgent action and legislation to better protect women and girls from the mammoth scale of misogyny they are experiencing online.”

These new offences follow the Government’s action in September 2024 to add sharing intimate image offences as priority offences under the Online Safety Act. This put the onus on platforms to root out and remove this type of content – or face enforcement action from Ofcom.

The new offences will be included in the Westminster government’s Crime and Policing Bill, which will be introduced when parliamentary time allows. Further details of the new offences will be set out in due course.

Further information:

  • The sexually explicit deepfakes offences will apply to images of adults. This is because the law already covers this behaviour where the image is of a child (under the age of 18).
  • It is already an offence to share or threaten to share intimate images, including deepfakes, under the Sexual Offences Act 2003, following amendments that were made by the Online Safety Act 2023.
  • The Government will repeal two existing voyeurism offences that relate to the recording of a person doing a private act, and recording an image beneath a person’s clothing.
  • They will be replaced with a range of new offences:
    • Taking or recording an intimate photograph or film without consent or reasonable belief in it
  • Taking or recording an intimate photograph or film without consent and with intent to cause alarm, distress, or humiliation
  • Taking or recording an intimate photograph or film without consent or reasonable belief in it, and for the purpose of the sexual gratification of oneself or another
  • We will also introduce new offences that criminalise someone if they install or adapt, prepare or maintain equipment, and do so with the intent of enabling themselves or another to commit one of the three offences of taking an intimate image without consent.

Sick pay decision for two million low-paid workers could have huge impact on families’ living standards

How much should someone receive when they are off sick from work?

This is the question that ministers were considering over Christmas. And the answer they arrive at will have a huge impact on many households’ budgets (writes TUC’s TIM CLARK).

For the majority of workers today the answer to that question is straightforward: when they are ill they simply receive their normal salary for a period.

Others, particularly many low-paid workers get less-than-generous statutory sick pay (SSP), currently £116.75 a week, if they are ill. But this only kicks in from the fourth day of absence.

More than a million workers wouldn’t receive anything when absent because they earn too little to qualify under current rules. They are often part-time workers and are predominantly women.

This means many workers face hardship if they suffer illness or injury or risk spreading illness in their workplace by attending while sick.

This could change as ministers implement their promise that “no one should be forced to choose between their health and financial hardship”. 

Measures in the Employment Rights Bill being considered by MPs will scrap the qualifying earnings test and sick pay will be paid from the first day of absence in future.

The options on the table

But how effective these changes will be rest on the percentage rate to be paid to low earners. 

A government consultation on the rate closed earlier this month.

Among the options modelled was an SSP payment as low as 60 per cent of wages.

This would be the entitlement for the lowest paid 2.3 million workers,

Under the current proposals, this could lead to some 1.1 million workers who are currently entitled to full SSP eligible for less under the new system because they currently get full SSP, albeit at less than £117 a week.

The TUC is urging the government to ensure that workers receive the lower of their earnings or statutory sick pay. At the very least they should receive 95 per cent of pay to reflect the payments received by the lowest-earning workers who currently qualify for SSP. 

For this is not a cold exercise in abstract numbers. There is a risk that some low earners could miss out the equivalent of a family’s food budget if ministers opt for lower pay-outs. 

Scenarios set out below show the potential real-world impact of ministers’ decisions.

Scenario one

Rita works 10 hours a week (two hours a day) in an office canteen on the national minimum wage. Her partner is a sales assistant earning £25,000.    

One weekend, Rita sprains her foot and is unable to work that week.

She has no access to occupational sick pay and currently would be unable to claim SSP as she earns under the lower earnings limit of £123 required to qualify. This means that the household income is cut by £114.40 a week. 

She struggles to give her three children money for their daily school meals and out-of-school sports activities and has to use money set aside for the next energy bill.

Under the new system, if the rate is set on the basis of the lower amount of earnings or SSP she would receive £114.40. 

However, a 60 per cent rate, one of the options modelled by the government in its latest consultation would mean she only receives £68.64. This cut of £45.76 is close to what a family spends on school meals for three children every week. 

Scenario two  

Sam is a single parent earning the national minimum wage at a food factory – working part time for nine hours Monday to Wednesday and gets paid weekly. 

Sam catches a nasty cold and is unable to work Monday to Wednesday. She has no access to occupational sick pay, and, under the current system doesn’t earn enough to qualify for SSP.

She claims Universal Credit and by notifying the DWP about a drop in earnings in the next assessment period could receive a higher universal credit payment. But this wouldn’t be paid out for more than a month, leaving her immediate bills to pay.

But if payouts were the lowest of SSP and actual earnings Sam would have received £102.96 in wages.

A 60 per cent rate would mean getting only £61.78. This £41 drop is more than the typical £35.40 that a family in the lowest income decile spends on groceries and non-alcoholic drinks (families overall spent on average £63.50 a week according to the official figures from 2023). 

This means that Sam and her two children would struggle to buy food that week, although they would be better off than currently. 

Scenario three  

Raj works two jobs. On Monday to Tuesday he works part time at a retail store for three hours a day. He works at a florist on Wednesday and Thursday for two hours. 

This is to fit in with caring responsibilities for three children with his wife who works at the local biscuit factory from Monday to Friday (9-5pm). She earns slightly above the national minimum wage, and both Raj’s jobs are on the minimum wage. 

Due to a car accident, he is unable to work for three months – this causes immense pressure on the family finances as during this period Raj receives no earnings.

If he received SSP based on his actual earnings this would have been £114.40 a week.

But at a 60 per cent rate he would receive £68.64 a week. This would mean that over the course of 12 weeks he would receive£549.12 less than if he was getting his normal earnings.

This is equivalent to almost two years’ worth of spending on clothes and footwear for a family in the lowest income decile at £5.60 a week.

Conclusion 

The coronarvirus outbreak showed the dangers of an inadequate sick pay system.

Lots of frontline workers were forced to choose between falling into poverty because they got no or little sick pay, or continue to work and risk spreading the virus.

Four years on and many workers continue to face similar dilemmas every week.

The government is making the right choice in extending sick pay to all workers, without an income test.

But when ministers announce payouts for low-paid workers in the coming weeks, they should peg them to SSP or wages, whatever is the lower. And no-one should be entitled to less after the changes, than they are now.

Then the next stage will be ensuring that the headline rate of SSP is improved.

Development Minister to give evidence on UK aid spending

TOMORROW (Tuesday 7 January), the International Development Committee will question Anneliese Dodds, Minister for Development, on her priorities in office.

Upon being appointed, the Minister said she aimed to make the world a safer, more prosperous place and to unlock opportunity for everyone. The FCDO’s development mission would be to “create a world free from poverty on a liveable planet”.

Members are likely to ask the Minister how the Government will meet its ambitions with a reduced foreign aid budget, and whether concrete plans are yet in place to reduce spending foreign aid on refugees within the UK.

Members may also question the Minister on the UK’s humanitarian response to the conflicts in Gaza and Sudan. The UK’s foreign aid spending to support women and girls, and adaption and mitigations for climate change, may also be discussed.

Prior to the Minister’s appearance, MPs will also hear from the FCDO’s two Permanent Under-Secretaries, Sir Philip Barton and Nick Dyer, on the department’s accounts.

At 2.00pm in the Wilson Room, Portcullis House

From 2.00pm

  • Sir Philip Barton KCMG OBE, Board member and Permanent Under-Secretary
  • Nick Dyer, Second Permanent Under-Secretary, Foreign, Commonwealth & Development Office

From 3.15pm

  • Rt Hon Annaliese Dodds MP, Minister of State for Development
  • Melinda Bohannon, Director General, Humanitarian and Development at Foreign, Commonwealth & Development Office.

MPs to question the Electoral Commission as inquiry into UK election kicks off

Westminster’s Public Administration and Constitutional Affairs Committee (PACAC) will hold the first public evidence session of their inquiry into the 2024 general election on 7 January.  

The inquiry, which was launched by the Committee in December 2024, will review the administration, process and conduct of the most recent national election. 

The Chair and Chief Executive of the Electoral Commission will answer questions on the Commission’s report evaluating the general election and May local elections.  

The report, published in November of this year, highlighted ‘a number of significant improvements necessary to support participation and trust in future elections’. 

The report references issues with postal voting, overseas voting, and intimidation of candidates and campaigners. The Committee are likely to explore the scale and context of these issues. 

The Committee may also consider the Commission’s earlier report on the requirement for voter ID to be show for the first time at a UK general election. The Committee is also likely to build on previous committees work and consider the overall state of the UK’s electoral law and administration. 

Witnesses:

  • John Pullinger CB – Chair, Electoral Commission  
  • Vijay Rangarajan – Chief Executive, Electoral Commission  
  • Jackie Killeen – Director of Electoral Administration and Regulation, Electoral Commission 

SNP have ‘starved local communities of funding for public toilets’

Scottish Liberal Democrat communities spokesperson Willie Rennie has criticised cuts to local authority funding which have seen the number of public toilets fall by 25% since the SNP came to power and four local authorities no longer having any public toilet facilities.

Analysis of data uncovered through a Scottish Liberal Democrat freedom of information request reveals that:

  • Across the 18 councils which provided data for both 2007 and 2024, there has been a 25% decrease in the number of public toilets during this period.
  • Across the 31 councils which provided data for both 2018 and 2024, there has been an 8% decrease in the number of public toilets during this period.
  • Clackmannanshire, East Dunbartonshire, Falkirk and South Lanarkshire now have zero public toilets.
  • Highland Council has closed the largest number of toilets, with 37 having closed since the SNP came to power. Edinburgh has closed more than half of its public toilets.

Commenting on the figures, Mr Rennie said: “Since the SNP came to power public toilets have been shut down left, right and centre.

“This is not just about public convenience. For some older or disabled Scots, a lack of accessible bathrooms can prevent them enjoying public spaces or getting out and about in their communities.

“That’s a depressing state of affairs for our country to be in but it the inevitable consequence of the decisions that successive SNP First Ministers have taken over the past 17 years.

“Scottish Liberal Democrats want to see local authorities handed real financial firepower to rebuild battered local services like public toilets and other essential amenities like electric charging points and waste disposal points.

“Looking ahead there also needs to be a commitment from the next Scottish Government not to treat local authorities as second-class services.”

Scotland’s dentists respond to damning FOI data

Responding to new FOI data from the Scottish Liberal Democrats, the British Dental Association Scotland has warned lifetime registration figures are effectively meaningless, and that there can be no complacency from government or opposition over the future of the service.

New figures show nearly 40% of Scots registered with a dentist have not seen one in two years. 39.5% of all those registered with a practice have not been to one in 24 months, and that includes 1.8 million adults and 177,318 children. 80,000 children have not seen a dentist in five years. More than a quarter of adults (28.8%) who are registered with a dentist have not seen one in five years.

Reform to the discredited high volume/low margin model of care NHS dentistry in Scotland works to took place in November 2023. However, official data shows access problems remain the norm and the oral health gap between rich and poor is widening.

Research last summer found that no practices were able to take on new adult NHS patients within three months in Argyll and Bute, Dumfries and Galloway, Inverclyde, Orkney, Perth and Kinross and Shetland.

David McColl, Chair of the British Dental Association’s Scottish Dental Practice Committee said: “The Scottish Government likes to talk about registration when what really matters is participation. 

“Scotland faces widening oral health inequalities. There’s no room for complacency from anyone at Holyrood.”

New Year message from Scottish Secretary Ian Murray

Ahead of the Bells, Secretary of State for Scotland Ian Murray reflects on 2024 and looks ahead to 2025

This time of year is a chance for us all to look back and reflect, as well as look forward. 

Looking back, I think we can all agree that 2024 has been quite a year. 

People voted for change. And we are delivering on that with the Prime Minister’s Plan for Change.

Since July’s election we have made huge strides. We have taken the difficult decisions so we could fix the foundations of our economy, dealing with the appalling fiscal and industrial inheritance left by the previous administration. 

We have made great progress in laying the foundations for delivering on our missions. 

We launched the legislation to deliver Great British Energy, which will place Scotland right at the heart of our green energy revolution. We have put in place a £100 million package to support the workers at the Grangemouth refinery and boost the Falkirk and Grangemouth area. 

We have published the biggest upgrade of workers’ rights in a generation. And I was very pleased to be able to support the Dad Shift lobby of Parliament for better paternity rights. 

We have put more money in people’s pockets by increasing the minimum wage, uprating benefits and increasing pensions with the triple lock. Our Child Poverty Taskforce is working with partners to tackle the scourge of children living in poverty. 

I went to Norway and South East Asia to launch Brand Scotland – our campaign to sell Scotland and Scottish businesses around the world. 

We are doing politics differently. 

We invited MPs and Peers from all parties to come to Dover House to sign White Ribbon Scotland’s pledge to help stop the scourge of violence against women and girls.  

We have reset the relationship with the Scottish Government so that we can work constructively together on the issues that matter to people in Scotland. 

I was very proud that, working with the Scottish Government, we were able to bring 19 female Afghan medical students to Scotland. They are an incredibly brave and inspirational group of women. Now settled at Scottish Universities, they will be a huge contribution to our NHS when they finish their studies. 

And speaking of that important joint working, I want to make a special mention of our Ukrainian friends who have made new homes in Scotland, many of whom I have had the pleasure of meeting in Edinburgh. I have been inspired by their bravery and resilience – and by their overwhelming desire to return home as soon as they can. 

We are determined to make life better for everyone living in Scotland. The Chancellor’s Budget delivered an extra £4.9 billion for the Scottish Government, meaning a record £47.7 billion settlement for them next year, as well as £1.4 billion for local growth projects across Scotland – projects which will help create jobs and improve local communities. 

That is all good progress, but of course it is not enough. 

The UK Government is driving investment and reform to deliver growth. We are rebuilding Britain in a decade of national renewal.

As we look ahead to next year, I and the Scotland Office are focussed on my four priorities – clean energy, economic growth, tackling poverty and rolling out Brand Scotland around the world. 

We will get GB Energy, headquartered in Aberdeen, moving. This will drive our green energy revolution and ensure our energy security. We will bring in our new Skills Passport, to ensure our highly skilled oil and gas workers can transition to new green technologies. Project Willow will set out how we can ensure a sustainable future for the Grangemouth site as part of our clean energy future. 

I intend to take Brand Scotland to new markets this year, to ensure that we attract inward investment to Scotland and help Scottish businesses export. Not just our fantastic products like whisky and salmon, but energy, financial services, culture, technology and manufacturing. 

Our Child Poverty Taskforce – of which I am a member – will publish a comprehensive strategy in the Spring. That will set out how we will work with the Scottish Government and others to make sure that all children and families in Scotland have a decent standard of living and the opportunities they deserve. It will look at how we bring together all different strands of this – including housing, job security, health and education – dealing with the underlying causes of poverty so that children can be lifted out of poverty for good. 

I am confident that, by the end of 2025, we will be making real progress in improving living standards and making life better for people in Scotland. 

So, as we chomp on our black bun and head towards the Bells, may I wish everyone a healthy, happy and prosperous New Year.

COSLA: What does the Scottish Budget mean for councils?

COSLA has shared two new documents setting out high-level analysis of the Scottish 2025-26 Budget and what it means for Councils and essential local social care services.

What does the Scottish Budget mean for councils?

Following the Scottish Budget announcement earlier this month, we shared a short briefing setting out high-level analysis on what the Budget means for Scottish Local Government.

Commenting, COSLA’s Resources Spokesperson, Councillor Katie Hagmann, commented: “This Budget is a welcomed step in the right direction for Local Government and provides a small amount of additional uncommitted revenue and capital funding for 2025/26.

“However, due to the unprecedented financial challenges being faced by our councils, this additional funding may not be enough to reverse planned cuts to vital services across our communities.”

Read the ‘What does the 2025-26 Budget Mean for Councils? document here.

What does the Scottish budget mean for social care?

Our councils have increased real terms spend on social care by 29% since 2010/11 at the expense of other preventative, non-statutory services. However, rising operational costs, escalating demand for services, and high inflation mean that the need for greater funding is more urgent than ever.

The level of funding provided in the 2025/26 Budget will not resolve the unprecedented challenges being faced in local social care services.

COSLA’s Health and Social Care Spokesperson, Councillor Paul Kelly, added:
“Without additional funding to increase capacity across all of our social care services, there is a very real risk that key services will not be able to transform to the scale that our communities require and deserve.

“COSLA and Local Authorities are ready and willing to work constructively to support improvement and reform in social care that is aligned to local needs and priorities, but this should be backed by the much-needed investment.”

Read COSLA’s Social Care Budget Analysis document here.