Tag: Politics

Scotland to receive £780 million for coronavirus response

The UK Government will provide at least £1.5 billion to the devolved administrations for their COVID-19 response, it was announced yesterday.

  • this means £780 million for the Scottish Government, £475 million for the Welsh Government and £260 million for the Northern Ireland Executive
  • this adds to the support people across the country will receive through UK-wide measures tackling the impact of COVID-19 including extending Statutory Sick Pay

The Devolved Administrations will receive at least £1.5 billion from the UK Government to make sure they have the resources they need to support people and businesses through COVID-19. This will mean they can increase funding for the NHS and provide grants to businesses.

Through the £1.5 billion package, the Scottish Government will receive £780 million, the Welsh Government £475 million and the Northern Ireland Executive £260 million – worked out through the Barnett formula.

This funding is in addition to the UK-wide support that people in all four corners of the country will receive from the UK Government. This includes extending Statutory Sick Pay, making it easier and quicker to access benefits, and providing a Business Interruption Loan Scheme, among other measures.

Chancellor of the Exchequer, Rishi Sunak, said: “We will do what is right to help businesses and individuals in every part of the UK. That is why we announced a special funding package at the Budget last week to support those affected by COVID19.

“Today I am confirming this additional funding that will ensure the devolved administrations can support vulnerable people, businesses and vital public services, including the NHS, in Scotland, Wales and Northern Ireland.

Scottish Secretary, Alister Jack, said: “The UK and Scottish Governments are working closely together in the fight against COVID – 19 as we do all we can to delay the spread and alleviate pressure on our public services, people and businesses.

“The £780 million for the Scottish Government announced today is in addition to the £1.9 billion spending increase for 2020-21 confirmed at the Budget last week. This will help ensure the Scottish Government has the resources it needs to support those affected by COVID-19.”

This £1.5 billion announcement is part of the £12 billion response plan announced last week to support public services, people and businesses through the disruption caused by COVID-19.

This included a £5 billion COVID-19 Response Fund for the NHS and public services, a £500 million local authority hardship fund, business rates reliefs and £3,000 grants for the smallest businesses – all of which cover devolved policy areas meaning additional funding is being made available for the devolved administrations.

The UK government will continue to work closely with the devolved administrations as the situation develops to ensure they have the funding needed to tackle the impacts of COVID-19.

 

Briggs: Health Secretary ‘misled Scottish Parliament’

On Tuesday this week, Miles Briggs MSP asked Jeane Freeman MSP what her response was to concerns raised by the former chair of NHS Lothian regarding the new Royal Hospital for Children and Young People.

http://www.parliament.scot/parliamentarybusiness/report.aspx?r=12568&i=113612

The Cabinet Secretary for Health stated: “I stress that, on 4 July, I took the decision to halt the move. Mr Houston next met me on 18 July. At no point in the intervening period did he – the chair of a major NHS board – feel that it was incumbent upon him to contact me, as the cabinet secretary, to discuss what might have gone wrong or what should be done next and where the board should be involved.”

It has since transpired that the Cabinet Secretary for Health was contacted by Mr Houston by email on 12 July, despite Parliament being repeatedly told otherwise.

The Scottish Government have refuted that Parliament had been misled on the grounds that the email by Mr Houston did not refer to specific issues.

The correspondence from Mr Houston referred to the “RHCYP/DCN situation” as well as assurances that himself and the board were handling the situation and an offer to meet for a 1 to 1 chat prior to the meeting on the 18th July.

Scottish Conservative Health Spokesperson, Miles Briggs, said: “It truly beggars belief that while Jeane Freeman was answering allegations of lying, she misleads the Scottish Parliament.

“The Health Secretary’s transparent attempts to smear Mr Houston have been exposed for what they are.

“The truth is that Jeane Freeman simply refuses to take responsibility for the mess at the Sick Kids hospital and continues to blame everyone but herself.

“It is clear that Mr Houston did attempt to contact the Cabinet Secretary for Health prior to the 18th July, but was ignored by her, as he has been since Ms Freeman took up the post.”

Chancellor delivers Coronavirus Budget

The Chancellor yesterday set out a £12 billion action plan in response to the economic impact of the coronavirus (COVID-19) outbreak, as part of a Budget that ‘delivers historic levels of public investment, levels up the country and lays the foundations for a decade of growth’.

Chancellor of the Exchequer Rishi Sunak said Britain will rise to the challenge of COVID-19, with a package of measures to support public services, individuals and businesses that may be affected by the outbreak.

In addition to responding to the immediate impact of COVID-19, the Chancellor pledged to put hardworking people first, put more money in their pocket, invest a record amount in infrastructure, boost public services, back business and set out a vision for a greener future.

A record half a trillion pounds (£640 billion) will be invested in Britain’s roads, railways and digital networks to give us the infrastructure that will support economic growth.

The Budget also provides billions of pounds to support our world-class public services; with funding for 50,000 more nurses and 50 million more GP surgery appointments a year.

Millions of families will have more cash to spend thanks to tax cuts through an increase in National Insurance thresholds and a cash boost to the National Living Wage (NLW). The Budget also takes action to support businesses of all sizes and accelerates the UK’s progress towards a greener economy. The Comprehensive Spending Review, which will set out the government’s detailed spending plans for this Parliament, was also launched today and will conclude in July.

Delivering the budget in Parliament Chancellor of the Exchequer Rishi Sunak said: “This Budget responds, at scale, to the immediate threat of Coronavirus and it reports on an economy whose foundations are strong. It is a Budget that provides for security today.

“This is a Budget that will deliver on our promises to the British people and it is the budget of a government that gets things done.

“We’re at the beginning of a new era in this country. We have the freedom and the resource to decide our own future.”

COVID-19

The Chancellor pledged to do ‘whatever it takes’ to support the economy through the disruption caused by COVID-19 with a £12 billion package of targeted measures. It included a £5 billion emergency response fund to support the NHS and other public services, £40 million of new funding for rapid research into COVID-19 and a commitment of up to £150 million to the International Monetary Fund’s Catastrophe Containment and Relief Trust.

To support people affected, the Chancellor announced the government would be extending Statutory Sick Pay (SSP) for all those who are advised to self-isolate and their carers – even if they haven’t yet presented with symptoms. Statutory Sick Pay costs for businesses with fewer than 250 employees will be met by the government in full for up to 14 days.

Rishi Sunak also set out plans to support the self-employed, those earning below the Lower Earnings Limit of £118 per week and a new £500 million Hardship Fund to directly support vulnerable people. The government will also increase the Business Rates retail discount to 100% for one year and expand it to the leisure and hospitality sectors.

Public services

By the end of the Parliament, day to day spending on public services will be £100 billion higher in cash terms than it is today. This Budget commits more than £6 billion of new funding in this Parliament to support the NHS, including to create 50m more GP surgery appointments, ensure there are 50,000 more nurses. The NHS Settlement provided the largest cash increase in public services since the Second World War – an additional £33.9 billion per year by 2024.

Levelling up and getting Britain Building

Billions of investment will be provided across the length and breadth of the country to support communities poorly served by old roads, communications and housing:

  • more than £27 billion will be spent on upgrading strategic roads and £2.5 billion will be spent on fixing potholes
  • £5 billion will go towards the rollout of gigabit-capable broadband in the hardest to reach areas
  • following the recent floods, which devastated parts of the UK, the Chancellor has pledged a record £5.2 billion over six years for flood defences

Cost of living

The Chancellor also put more money into the pockets of 31 million working people thanks to National Insurance Contribution thresholds increasing to £9,500, saving the typical employee around £104 a year from April, while the National Living Wage will increase to £8.72. This is on top a freeze in Fuel Duty, for the tenth consecutive year, and a freeze in duty rates for beer, cider and spirits, while the ‘Tampon Tax’ will be scrapped.

Backing Business

From April, small businesses will benefit from an increase to the Employment Allowance, reducing their employer National Insurance bills by £850 on average and there will be fundamental review of business rates.

Greener economy

To accelerate the UK’s progress towards net zero carbon emissions by 2050 and protect the environment for future generations, the Chancellor announced £500 million for electric car charging infrastructure, to ensure drivers are never further than 30 miles away from a rapid charger. Tree planting in England will increase by 600% and to tackle the scourge of single-use plastics, a consultation will be launched on introducing a Plastic Packaging Tax.

Support for the regions and nations

The Chancellor has also pledged to level up all parts of the UK, with measures to spread opportunity and ensuring everyone benefits from growth. He announced the West Yorkshire Devolution Deal, which will help the region boom through the creation of a Mayoral Combined Authority, while a government economic decision-making hub will be created in the North of England.

As a result of the budget:

  • the Scottish Government will benefit from a £640 million funding boost
  • the Welsh Government a £360 million funding boost
  • the Northern Ireland Executive a £210m funding boost

Scottish Secretary Alister Jack said: “This is a great budget for Scotland. Decisions taken by the UK Government over the last year will deliver an almost £2 billion funding boost for the Scottish Government.

“People and businesses right across Scotland will see the benefits – more than £5 billion for broadband and 4G connectivity, an increase in the national living wage, £22 billion for research and development across the UK, and a freeze in fuel duty.

“The Scotch whisky industry gets a welcome boost, with a freeze on spirits and a review of alcohol duty, and £10 million help to develop green technology. We will also invest £1 million in promoting Scottish produce to overseas markets.

“We will continue our extensive investment in growth deals across Scotland, now at almost £1.5 billion, with confirmation of £25 million UK Government funding for Argyll and Bute. Every part of Scotland will be covered by growth deals, with investment to be announced soon for Falkirk and the Scottish islands.”

Following decisions taken at this Budget, notably on funding for health business rates relief and roads, the Scottish Government’s resource and capital budgets in 2020-2021 will increase by over £220m and £410m respectively with a total increase of more than £640m.

The additional funding, when combined with the £1.3bn funding in 2020-21 provided at the Spending Round 2019, results in the largest year-on-year real-terms funding increase for the Scottish Government in a decade.

Further measures announced by the Chancellor can be found in this factsheet.

BUDGET REACTION

Rapid joint engagement is needed on funding for the COVID-19 response in Scotland following the UK Government’s Budget, Holyrood Finance Secretary Kate Forbes said.

Responding to the UK Budget, Ms Forbes said: “While I’m pleased to see the UK Government’s economic response to coronavirus following my calls for this at the UK Treasury yesterday, we need confirmation on what this will mean for Scotland.

“We require urgent clarification on what funding Scotland will receive from the announcements made by the UK Government, at a time when the prospects for the economy and public finances remain very uncertain as the short term impacts of COVID-19 unfold.

“It is vital that our businesses, employees, health service and the most economically vulnerable in our society are all protected through this time, and this additional funding will help us in our response.

“I will ensure that businesses in Scotland are supported and will work with the business community to identify the most effective measures available to us, when we have more clarity on the funding available.

“We expect full consequentials from this additional funding and need urgent clarification to provide clarity for Scottish businesses and NHS Scotland to ensure we can respond effectively.

“The Barnett consequentials announced today are in line with the assumptions that underpinned the Scottish Budget and Budget Bill passed by the Scottish Parliament last week. While this funding is welcome, our resource budget is still lower in real terms than it was in 2010/11.”

Rebecca Long-Bailey, Labour’s Shadow Business Secretary, commenting on the failure to tackle the climate crisis in the Budget, said: “By ducking the bold measures needed to tackle the climate emergency, the Chancellor has blown the biggest opportunity for national renewal since the post-war era, betraying current and future generations.

“This Budget piles investment into new motorways without bringing down the cost of public transport, and offers only derisory support for electric vehicles. There is no sign of the Tory manifesto commitment to invest £9.2 billion to lower energy bills, and the proposal to load the costs of carbon capture and storage onto consumer bills is particularly concerning.

“Elsewhere the Budget sets out a series of measures that seem designed to let our biggest emitters off the hook.

“The Chancellor says people in this country voted for change, but nobody voted for catastrophic climate change.”

Dame Carolyn Fairbairn, CBI Director-General, said: “In deeply challenging times the Chancellor has worked against the clock to deliver two budgets in one: a first for national resilience today and a second for economic ambition tomorrow. It’s a bold Budget at scale, coordinated with the Bank of England, which will help people and business through tough times.

“As the UK responds to the immediate challenge, people are the first priority. So the measures to expand and ease access to sick pay and benefits are vital to protect people’s health and livelihoods.

“The Chancellor’s actions on business rates, emergency funds and loans will help ensure firms can weather the storm, especially smaller firms. Larger firms may also need support as the situation develops.

“Covid19 will bring new challenges daily which will need to be resolved, at speed. “Today’s impressive economic response should now evolve with business insight to become as agile as our approach to public health.

“While the response to Covid19 is urgent, it is very good to see this Budget’s focus on innovation and infrastructure. The Chancellor has listened to many calls from CBI members, with decisive action on vital long-term issues.

“The significant uplift in R&D funding, creation of a UK version of ARPA, a fundamental review of business rates and spending promises on infrastructure will all bring real benefits to people, business and communities.

“The Chancellor has set out some powerful incentives to get businesses investing, increasing the R&D tax credit and the Structures and Buildings Allowance. The £5bn of new export loans will encourage the best of UK business to look to new global markets.

“The next few months will bring opportunities for the Government to make major decisions that they have understandably had to put to one side today. Some gaps still need to be filled in around skills, energy efficiency and powering the UK’s low carbon future.

“Overall, today’s budget is a powerful signal to firms at home and abroad that the UK can and will manage the immediate challenges and long-term opportunities in parallel.”

TUC General Secretary Frances O’Grady said: “The government’s coronavirus plans will leave millions of workers behind. Without urgent action, too many will be plunged into poverty and debt.

“Today’s announcements won’t help the nearly 2 million people who miss out on sick pay because they don’t earn enough. Telling them to turn to the broken benefits system isn’t good enough. We need decent sick pay for all.

“Ministers must now urgently bring together unions and employers to talk about how to support jobs, including through wage subsidies for short time working schemes, and further help for public services – especially social care.”

On investment announcements, she added: “This spending u-turn is badly overdue. The priority now must be to repair the damage of ten years of Tory devastation.

“Helping working families and rebuilding public services must come first. And we need to see concrete action on the challenges of the future.

“This means banning zero hours contracts, sorting social care, ending the UK’s dire regional inequalities, setting out a credible plan to achieve net zero, and getting an EU trade deal that supports jobs and workers across the UK.”

Fraser Sime, regional director for Scotland at Bank of Scotland, said: “The announcement of £1m support towards Scottish food and drink exports is extremely encouraging.

“We have a team of relationship managers that work specifically with this industry across Scotland to support growth, both at home and overseas, and today’s development will further help local firms capitalise on new opportunities.

“With 120 active distilleries in Scotland, the investment of £10m into the research and development of more sustainable practices will assist the industry in reducing the environmental impact of our national tipple. To support this, our Clean Growth Financing Initiative also offers discounted lending to introduce measures to create more renewable energy sources for businesses.”

Jonathan Carr-West, Chief Executive of LGiU, said: “Understandably, this budget was dominated by the Government’s response to coronavirus. No one could argue with that, but for councils across Scotland it provides more questions than answers.

“Social care has been all but absent in the response to Covid-19. Hospitals will not be able to cope if large numbers of older sufferers cannot be discharged because of a lack of social care provision and social care providers will not be able to cope if a fifth of their already stretched workforce is off sick. This could create a dangerous and vicious circle. Mr Sunak promised “whatever it takes” for the NHS, but once again, risks forgetting the symbiotic relationship between health and social care.

“The Growth Deal in Argyll and Bute, help for whisky distillers and support for a campaign to promote Scottish food and drink will be welcomed by local government across Scotland, but many will be concerned that these are only small steps being taken to reverse the decade of funding cuts experienced in Scotland.

“Elsewhere in the budget, announcements on infrastructure, science, further education and research and innovation all look to a longer term future. Local government must have a role to play in making these happen but there remain questions about its capacity to do so after a decade of contraction.

“So, we had a budget designed to cope with an immediate crisis whilst also setting out significant spending and a vision for a long term economic transformation. Councils will be at the front line of our response to coronavirus and will be a crucial player in this transformation. However, local government may feel that it has dropped through the middle somewhat as the Government attempts to get so many other things done.”

Commenting on the UK Government’s Budget yesterday, Scotland Director for CAMRA Sarah Crawford said: “CAMRA welcomes the freeze in beer duty – which is a UK-wide tax – but we want to make sure brewers and pub companies pass on any savings on to pub-goers. 

“In the upcoming review of alcohol taxation we will be arguing for a cut in beer duty for beer served on tap, which would be the best way to support community pubs.

“Yesterday’s Budget also sees cuts and reliefs to the burden of Business Rates for pubs in England. CAMRA is calling on the Scottish Government to introduce further support and pub-specific rate relief schemes here to help our pubs cope not only with the short-term impacts of coronavirus, but also with the year-round effect that business rates have on the ability of our locals to stay open and thrive. We’d also like to see fundamental changes to the Business Rates system to make sure it is fairer to pubs.

“Cutting duty for draught beer in pubs and changing the Business Rates system are both vital steps to saving community pubs across Scotland from closure.”

Nimesh Shah is a Partner at leading accounting and tax advisory firm Blick Rothenberg. He summed the Budget:

“Today marked the first Budget for the new Government, the first for a new Chancellor who has only been in the job a few weeks and the first for almost 18 months. It could, however, be the first of several budgets in 2020.

“In a Budget overshadowed by COVID-19, the Chancellor started by announcing a package of measures aimed at easing the burden for individuals and businesses, including extending Statutory Sick Pay, offering a reduction to Business Rates for small businesses and allowing more time to pay taxes.

“The Chancellor’s hands seemed to be slightly tied, and the only notable change for workers was an increase to the National Insurance threshold to £9,500 providing a £100 annual saving.

“For the first time in 10 years, there was no increase to the personal allowance, which remained at £12,500. In fact, there were no changes to the majority of the personal tax thresholds with the basic rate band, inheritance tax nil rate band and the high-income child benefit threshold all untouched.

“In a measure aimed at appeasing NHS doctors and consultants, the pensions annual allowance will only begin to reduce for individuals with income above £240,000 (currently £150,000). However, at the other end of the spectrum, the minimum pensions annual allowance will be reduced to £4,000 (currently £10,000), affecting individuals with income above £300,000.

“The Chancellor wielded an axe on Entrepreneurs’ Relief without going as far as abolishing it completely. In an overnight move (which has its own complexities), the Entrepreneurs’ Relief lifetime allowance was slashed from £10 million to £1 million, reducing the tax saving to £100,000. Apparently, the reduced limit should only affect 20% of entrepreneurs while raising £6.3 billion for the Treasury in the process over the next five years.

“Entrepreneurs’ Relief has gone full circle, as the limit was £1 million when first introduced in 2008 and worth £80,000. At a time when all UK businesses are facing hugely uncertain futures, it was disappointing that the Chancellor, only a few weeks into the job, decided to make the move without any review or consultation.

“For the first time in many years, there were few changes to property taxes, with the Government moving ahead with a 2% SDLT surcharge for overseas buyers, which will take effect from April 2021 (presumably to encourage overseas buyers to transact before a higher SDLT cost applies).

“However, it’s worth noting that several property tax changes are due to take effect from 6 April 2020, including a reduction to main residence relief, the mortgage interest relief restriction taking full effect and reducing the timeframe in which capital gains tax should be paid to 30-days when selling a residential property.

“The only giveaway for savers was an increase to the Junior ISA limit to £9,000. At a time when the stock markets have tumbled and interest rates cut, pensioners and savers may have been looking to the Government for some help.”

This year’s winners and losers: who will be better off?

George Parker and Harriet James are Assistant Managers at leading accounting and tax advisory firm Blick Rothenberg

Winners

All earners

An increase in National Insurance Contribution (NIC) thresholds is a welcome move for all employees and the self-employed. The threshold will increase from £8,628 to £9,500, resulting in an annual NIC saving of £104 for employees and £78 for the self-employed.

Saving for retirement

From 2020-21, the thresholds used to calculate the tapering of the annual allowance will be increased so that workers with ‘adjusted net income’ of below £240,000 are not affected by the reduced limits.

The annual allowance is the total amount an individual and employer can contribute into their pension fund without incurring a tax charge.

Children under 18 years old

Junior ISA and Child Trust Fund annual subscription limits will increase by £4,632 from £4,368 to £9,000 – a massive uplift.

Losers

Entrepreneurs

Entrepreneurs Relief (ER) Lifetime Allowance will be reduced from £10m to £1m affecting an estimated 20% of business owners. Going forward, only the first £1m of capital gains arising on the sale of an individual’s business will be taxed at 10%, with the remaining gain being taxed at 20%. Harsh anti-avoidance rules have also been introduced, backdated from April 2019.

Top earners

Currently individuals with an ‘adjusted net income’ in excess of £210,000 have their annual allowance tapered to £10,000. From April 2020, the allowance will be tapered to £4,000 for individuals with total income above £300,000. Any excess contributions over the new tapered annual allowance will be subject to tax at 45%.

Companies investment in plant and machinery

The favourable – yet temporary – Annual Investment Allowance (AIA) of £1million will come to an end on 31 December 2020, reducing by 80% to £200,000 per year.

Pensioners

The forgotten in this Budget are pensioners. With no reforms or simplification to Inheritance Tax announced, with the personal allowance and income tax thresholds remaining unchanged, and as they do not pay NIC, inflation will drag more pensioners into higher taxes. Based on forecasted inflation at 2%, many pensioners will be worse off in real terms.

Alex Salmond set to stand trial on sex offence charges

Alex Salmond stands trial today on allegations that he sexually assaulted ten  women while serving as Scotland’s First Minister. Mr Salmond will face 14 charges at the High Court in Edinburgh this morning.

The charges – which the former First Minister says he will vigorously defend –  include allegations of ten sexual assaults, two indecent assaults, one attempted rape and an assault with intent to rape.

Mr Salmond has pled not guilty to all charges and the trial before judge Lady Dorrian is expected to last for four weeks.

MSPs to grill Scottish Secretary

Holyrood’s Culture, Tourism, Europe and External Affairs Committee will today question the Secretary of State for Scotland Alister Jack (above) about the Withdrawal Agreement and the future relationship between the European Union and the UK.

In recent weeks the Committee has taken evidence from a wide range of experts with regard to the Northern Ireland protocol and the likely priorities of the EU and the UK Government in the forthcoming future relationship negotiations.  The Committee has also taken evidence from the Cabinet Secretary for Constitution, Europe and External Affairs, Michael Russell MSP.

Committee Convener Joan McAlpine said: “The clock is ticking for the UK to agree to its future relationship with the EU and we continue to lack clarity on the form that relationship will take.  

“The future relationship between the EU and the UK will have a significant impact on the day to day lives of people in Scotland. Thursday’s session – the first occasion the Secretary of State has provided evidence in the Scottish Parliament – will hopefully provide some clarity on what that future relationship will be.”

Deputy Convener, Claire Baker said: “Evidence that the Committee has taken in recent weeks has highlighted that considerable detail requires to be worked out regarding the operation of the Northern Ireland protocol, whilst the form of the future relationship with the EU remains highly uncertain, with leaving without a trade deal still a distinct possibility.

“The Secretary of State for Scotland has serious concerns to address so that we can avoid 9 months of further uncertainty.”

See the committee papers for Thursday here.

The UK Government risks “breaching the basic premise of the Union” in EU-UK negotiations if it fails to respect the Scottish legal system, Constitution Secretary Michael Russell (above) warned MSPs yesterday.

In a statement updating the Scottish Parliament on the Brexit negotiations, Mr Russell said the Scottish Government and Parliament must be involved in deciding the UK negotiating stance on devolved matters such as fisheries, the environment and justice, as well as the many other issues that will affect Scotland.

He added that the UK Government was intent on a hard Brexit which “will result in the people of Scotland being worse off financially, cut off practically and turned off politically from the European mainstream”.

Mr Russell said: “Devolved issues such as agriculture, environment and fisheries will be at the heart of these negotiations. As the legally and politically responsible body this (Scottish) Parliament and this Government must be involved in deciding on what stance to take.

“The UK Government must respect and take full account of the Scottish legal system – our separate courts, prosecution system and police. To fail to do so would be a breach not just of convention, nor even of the devolution settlement, but of the basic premise on which the Union is founded, for that includes protection for our legal system.

“No-one speaks for us, and no-one speaks about us, without us.

“We are now entering an even more difficult phase of the Brexit process which, if handled the way the UK Government proposes, will have severe negative impacts for the vast majority of people in Scotland. I continue to urge the UK Government to move back from its current aggressive rhetoric and ideological obsession with a very damaging hard Brexit.

“But I also urge this chamber to speak up for Scotland and put differences aside to do so.”

Green light for Scottish budget

Finance Secretary Kate Forbes has reached an agreement with the Scottish Green Party to ensure the passage of the Scottish Government’s budget.

The final agreement will increased support for young people, police, climate action and local government.

Thanking all who took part in discussions, Ms Forbes said that while she had reached agreement with the Scottish Greens, the budget delivered on key issues raised by all parties in the parliament and called on all MSPs to unite behind the budget today (Thursday).

The agreement which builds on key Scottish Government commitments to invest £15 billion in health and care services, deliver a child poverty payment and to expand early learning and childcare, will:

  • deliver a National Concessionary Travel scheme offering free bus travel for 18s and under. The Scottish Government will undertake work on design and due diligence with a view to introducing such a scheme in January 2021
  • ensure a total uplift for the police service of £60 million in the next financial year with £13 million of additional investment in frontline services and a further £5 million of additional capital investment, on top of the £42 million already committed
  • support local services with £95 million of further funding for local government, taking total additional Scottish Government support for local authorities to £589 million

To further support Scotland’s efforts to end our contribution to climate change a £45 million package of investment in low carbon projects has been agreed including:

  • £25 million of additional investment in local energy efficiency projects
  • £15 million for local authority investment in active travel, taking the total investment in active transport in the next financial year to £100 million
  • £5 million to further develop options for enhanced rail services

As part of the agreement, the Scottish Government has confirmed that the Infrastructure Investment Plan, which will be published later this year, will be aligned with the Infrastructure Commission’s call for all future projects to be compatible with the Scottish Government’s net zero target and the Climate Change Act.

Confirming the agreement, Ms Forbes said: “I am pleased to have reached an agreement to pass the Scottish budget and deliver certainty for communities, businesses and our vital public services – especially in face of the uncertainty created by the UK Government’s decision to delay its budget.

“I want to thank all parties for the constructive way in which they have approached this year’s discussions. While it is not possible to meet every party’s demands in full, I believe in reaching formal agreement with the Green Party, I am also delivering on key asks from every party and I encourage all MSPs to consider giving their support to Scotland’s budget.

“This budget invests a record £15 billion in health and care services, delivers Scotland’s unique child payment to lift our youngest out of poverty, transfers £3 billion of social security spending, supports our efforts to tackle the climate crisis and the creation of a Scottish National Investment Bank.

“The Scottish Government had already backed Police Scotland with a budget increase of £42 million. We will now increase that support to £60 million overall with £50 million of investment for frontline services.

“And we will deliver in full the support Cosla and others have asked for with £95 million for local government.

“We have made significant investments to tackle the climate crisis, with funding for a green deal, low carbon travel and £1.8 billion of low carbon infrastructure.

“To further increase our action to tackle climate change and to support young people across Scotland, we will take steps to introduce a National Concessionary Travel scheme providing free bus travel for Scotland’s 18s and under.

“We will begin the work now to ensure such a scheme is legally compliant and that it meets young people’s needs with the aim of introducing it from January 2021. Alongside the £500 million bus infrastructure fund, this will help deliver a step change in the use of public transport.

“I will also increase funding for walking, cycling and safer streets to £100 million for the first time and boost support for energy efficiency measures as part of our focus on reaching net-zero.

“When I presented the budget I said that every penny had been spent and that remains the case. In the absence of proposals to change spending, this additional investment will be funded through limited amounts of underspend, taking a multi-year approach to issues around non-domestic rates without impacting on local authority revenues, and additional consequentials from the fossil fuel levy. While this increases the financial exposure of the government it ensures that social security payments can be made and public services properly funded.”

The Scottish Greens say free bus travel for young people is a ‘transformational step’ towards tackling the climate emergency.

Young people aged 18 and under are set to get free bus travel in Scotland, thanks to the Scottish Green Party.

The Scottish Government has agreed to work to implement free bus travel for young people in Scotland, in a major win for the Scottish Greens as part of the Scottish budget process.

This means from 2021 young people across Scotland should be able to travel for free on bus routes, in a similar way to the entitlement currently held by over-60s.

The budget deal also puts an additional £95m towards local services across Scotland such as schools and libraries.

Scottish Green co-leader Patrick Harvie said: “Free bus travel for young people is a transformational step towards tackling the climate emergency. This scheme will benefit young people starting college and families, some of whom stand to save thousands of pounds a year, and encourage whole generations of public transport users.

“Buses are the backbone of local public transport and the key to employment and training opportunities for so many of those starting out in life.

“Yet again it’s the Scottish Greens who have engaged constructively in the budget process to deliver for communities in Scotland. 

Clearly, a Green budget would do even more to tackle the climate emergency, but securing this important free bus travel deal for the next generation builds on the powers we won for local councils to take control of local bus services. It is the Scottish Greens who are leading the change.

“And as we have done in every year we have struck a deal, the Greens have prioritised funding for local government, securing an additional £95m for libraries, schools and other local services.”

As part of the deal, Scottish Greens have also secured additional funding for vital low carbon capital projects across Scotland, including commitments to explore reopening the Dunfermline to Alloa rail link and improve the Milngavie rail line, increasing the cycling and walking budget to £100m and £13m for community safety and crime prevention.

Widening free bus travel to those 18 and under is estimated to cost around £60m a year from 2020:  

–    A student travelling from Castle Douglas to study at Dumfries College is set to save around £1,231 per academic year

–    A student travelling from Bathgate to Edinburgh College’s Granton campus is set to save around £1,216 per academic year

–    A student going the Moray campus of the University of the Highlands and Islands from Inverness is set to save around £945 per academic year

–    A family in Edinburgh can save £304 a year on their child going to and from school if they need to take the bus

–    It will save a family of four £22.70 on a trip from Keith to Inverurie Trampoline Park.

Scottish Green MSPs, Alison Johnstone and Andy Wightman, have also hailed the deal struck by the party to deliver free bus travel for young people aged 18 and under as “transformational”.

Alison Johnstone MSP said: “Free bus travel for young people is a transformational step towards tackling the climate emergency. This scheme could save young people and families thousands of pounds a year, and encourage whole generations of public transport users.

“Buses are the backbone of local public transport and the key to employment, training, sports and social opportunities for so many young people.”

The Scottish Greens have also secured an additional £95 million for vital local services, and an additional £13 million for community policing and prevention work.

Andy Wightman MSP added: “Since the 2016 election the Scottish Greens have pushed the Scottish Government to provide councils with a fairer share of funding.

“I’m delighted that this year Greens have been able to deliver over £7.4 million more for Edinburgh, £1.5 million more for Midlothian, £1.8 million more for East Lothian, and £3.2 million more for West Lothian, to help protect vital local services like community centres, and speed up the delivery of much-needed new schools.

While the Greens hail their contribution to tackling climate change, the local government umbrella body COSLA says the budget will do NOTHING to tackle the environmental emergency. 

The Scottish Government’s 2045 Climate Change Targets will not be met as local authorities will be forced to use ageing, high-emission vehicles on a daily basis, councils have warned.

The Scottish Government draft budget falls far short of what COSLA considers a fair settlement for Local Government.  It results in a £95m (£300m real terms) cut to revenue and £117m (£130m real terms) cut to capital budgets. The impact of these cuts will continue to be felt.

COSLA Environment and Economy Spokesperson Councillor Steven Heddle said: “This budget in no way recognises that we are facing a climate emergency nor the role of Local Government in addressing the challenges.

“The risks are clear. This is a budget which heavily impedes our ability to help Scotland meet these targets. If the Government are serious about addressing climate change then protecting services such as school and community transport, waste collection, gritting, and roads maintenance should be top of their agenda.

“Cuts to council budgets means cuts to public transport – forcing more people to travel by car and an end to critical investment in active travel.

“To truly tackle the climate emergency, we need to provide services in a different way, Local Government is eager to be a leader in the fight to tackle climate change, but resources are needed.

“Instead of additional resource to allow investment in emission-reducing infrastructure, energy efficiency measures and digital services delivery, we have seen a cut to the Local Government budget. This must be addressed if we are serious about tackling climate change.

“We are calling on the Government and the Parliament to address these concerns, listen to our asks and allow investment in essential council services which can make a real difference in the fight against climate change.

Edinbirgh SNP MSP Gordon MacDonald has welcomed an agreement to pass the Scottish Government that will see the capital receive an additional £7.43 million in the next year.

Police will benefit from a total uplift of £60 million in the next financial year, with £13m of additional investment in frontline services and a further £5m of additional capital investment, on top of the £42m already committed.

SNP MSP for Edinburgh Pentlands, Gordon MacDonald, said: “This budget invests a record £15bn in health and care services, delivers Scotland’s unique child payment to lift our youngest out of poverty and supports Scotland’s world-leading efforts to tackle the climate crisis.

“The Scottish Government had already backed Police Scotland with a budget increase of £42m.  That will now increase that support to £60m overall with £50m of investment for frontline services.

“Edinburgh will benefit from our share of an extra £95m for local government – with an extra £7.43 millon of investment.

“We have made significant investments to tackle the climate crisis, with funding for a green deal, low carbon travel and £1.8bn of low emission infrastructure.

“The introduction of free bus travel for those aged 18 and under will make an enormous difference to young people – and alongside the £500 million bus infrastructure fund will help deliver a step change in the use of public transport.

“This budget is a good deal for Edinburgh and a good deal for Scotland – and I’m delighted it is now set to receive the support of the Scottish Parliament.”

 

Disgraced David Steel to quit House of Lords following Child Abuse report

HOUSE OF SHAME

The Independent Inquiry into Child Sexual Abuse has published it’s Westminster report, which finds political institutions have SIGNIFICANTLY FAILED in their responses to allegations of child sexual abuse for decades.

This includes failing to recognise abuse, turning a blind eye to it, covering up allegations and actively protecting high-profile offenders, including politicians.

On the publication of the damning report former Liberal leader David Steel  announced he would quit the House of Lords – something he should have considered a long, long, time ago. Indeed, it’s a damning indictment of the ‘jobs for the boys’ mentality of the Palace of Westminster that he ever sat in the Upper House at all.

Steel was condemned by the inquiry for failing to alert authorities to the brutal crimes of paedophile MP Cyril Smith.

During three weeks of public hearings last year, the Inquiry heard from survivors, whistleblowers, cabinet ministers, MPs and police officers among others.

There has clearly been a significant problem with deference towards people of public prominence, from the Whips’ offices to the police and prosecutors, although the investigation found no evidence of an organised paedophile network at the heart of government.

For example, in the 1970s and 1980s, MPs including Sir Cyril Smith and Sir Peter Morrison were known to be active in their sexual interest in children, but were protected from prosecution.

Giving evidence, former Liberal Party leader Lord Steel said that because allegations against Smith had arisen before he joined the party, he saw “no reason, or no locus to go back to [it]”. This failure to recognise the risks was an abdication of responsibility, and the fact the offences were non-recent was irrelevant.

Incredibly, despite knowing that Smith was guilty of serial child sex abuse, Steel nominated deviant Smith for a knighthood – and later went on to receive high honours himself.

‘Sir’ Cyril Smith died in 2010 and never faced justice for his crimes.

Steel was appointed a Knight Commander of the Order of the British Empire (KBE) in 1990 and was later ‘ennobled’,becoming a life peer with the grand title of Baron Steel of Aikwood. Steel also enjoyed the trappings of office as the Scottish Parliament’s first Presiding Officer. Now, given Steel’s role in this murkiest of affairs, it can only be hoped that his high-falutin titles will swiftly be withdrawn.

Steel may be the most high profile, but he is not the only politician to be exposed by the report.

Senior officials within the Conservative party knew about allegations concerning Peter Morrison for years but did not pass them on to police. Instead, he became Margaret Thatcher’s Parliamentary Private Secretary in 1990 and was knighted a year later.

Victor Montagu, the former MP for South Dorset and 10th Earl of Sandwich, was let off with a caution after a 10-year-old boy alleged he had indecently assaulted him. Montagu’s son Robert, who he also sexually abused for over five years, said the decision not to prosecute was “entirely wrong and very indicative of the attitude towards people in public positions”.

The report concludes that these are examples of a political culture which values its reputation far higher than the fate of the children involved.

All in the past? Surely Westminster has cleaned up it’s act? Sadly not.

As recently as 2017, Green Party election candidate Aimee Challenor was able to appoint her father as election agent, despite the fact that he had been charged with sexually assaulting a child and was later convicted.

The Inquiry also investigated the Paedophile Information Exchange (PIE), which campaigned in the 1970s to lower the age of consent, as well as public acceptance of paedophilia.

A number of its members sexually abused children, including Sir Peter Hayman, a former High Commissioner to Canada.

The report concludes that PIE was given foolish and misguided support for several years by organisations who should have known better, such as the National Council for Civil Liberties and the Albany Trust.

The report makes five recommendations, including ensuring all political parties have comprehensive safeguarding policies and procedures. It also calls on the Cabinet Office to re-examine its policy on the posthumous forfeiture of honours.

https://youtu.be/riS9449z_SQ

Chair of the Inquiry, Professor Alexis Jay OBE, said: “It is clear to see that Westminster institutions have repeatedly failed to deal with allegations of child sexual abuse, from turning a blind eye to actively shielding abusers.

“A consistent pattern emerged of failures to put the welfare of children above political status although we found no evidence of an organised network of paedophiles within government.

“We hope this report and its recommendations will lead political institutions to prioritise the needs and safety of vulnerable children.”

allegations-child-sexual-abuse-westminster-investigation-report-25-february-2020

 

We need to talk!

CALL FOR MEETING ON IMMIGRATION PROPOSALS

Following the UK Government’s new immigration proposals, First Minister Nicola Sturgeon has offered to lead a delegation from the Scottish business community in a meeting at Downing Street.

The First Minister has written to Prime Minister Boris Johnson inviting him to meet representatives from key sectors in Scotland to discuss how to ‘prevent serious and lasting harm to Scotland’s economy’.

In the letter, she highlights a number of industries that will be significantly affected by the new immigration policies including the social care sector, food and drink industry and construction sector.

The full text of the letter reads:

Dear Boris
 
The immigration policy announced by your government this week has caused concern in many sectors across Scotland’s economy.  More than half of all roles in Scotland would not meet the salary threshold you have set, rising to as many as 90% in our vital social care sector. 

Many other sectors of the economy are clear that the plan to end free movement and introduce this new system in its place has not been designed with the interests of Scotland in mind, including the production and processing sectors underpinning Scotland’s world-class food and drink industry, the construction sector delivering on investments in housing and infrastructure, and the tourism and hospitality sectors that make Scotland one of the best places in the world to visit.
 
The proposals the Scottish Government put forward last month were intended to provide a basis for discussion on how the UK immigration system could meet Scotland’s needs: a tailored approach for Scotland through a Scottish Visa; a targeted way to encourage migration to remote and rural communities, recommended by the Migration Advisory Committee; and suggestions for reform to UK-wide routes for migration.  The Scottish Government’s position has attracted broad support from business, trade unions, third sector, local government and academic experts 
 
An immigration system which truly delivers for the whole of the UK also needs to deliver for Scotland.  My government has been in contact with representatives of key sectors of Scotland’s economy who would like to join me in a meeting with you, in Downing Street, to discuss the impact your new policy and the changes we believe should be made in order to prevent serious and lasting harm to Scotland’s economy and services as a result of your migration policy.
 
I look forward to your swift response, and to meeting with you alongside representative voices from across Scotland’s economy.
 
NICOLA STURGEON

Scotland’s prisons creaking at the seams

Developing a contingency plan for HMP Barlinnie in the event that it fails must be of the highest priority for the Scottish Prison Service, says Holyrood’s Public Audit Committee.

Given the condition of Scotland’s prisons in general, the Scottish Government and the Scottish Prison Service (SPS) must also develop robust contingency plans in case any other part of the prison estate becomes uninhabitable.

All contingency plans should reflect the immediate capacity issues faced by the SPS and the fact that there is no evidence to suggest that prisoner numbers will decrease in the short term.

In a report published today, the committee says ten years of capital underspend to stay within budget should have raised serious concerns at an early stage given the deteriorating state of prisons. The impact of the delay in the capital programme cannot be overestimated.

Urgent action by the Scottish Government and SPS is needed to address under-lying pressures on the prison service, with solutions required from across the justice system.

The report says this situation is now undermining the Scottish Government’s policy objectives of rehabilitating prisoners and reducing re-offending.

Jenny Marra MSP, Convener of the Public Audit Committee, said: “Audit Scotland says HMP Barlinnie presents the “biggest risk of failure in the prison system” but warns there is no clear contingency plan for accommodating the 1,460 prisoners it currently holds should it fail.

“Developing a contingency plan for Barlinnie in the event that it fails must be of the highest priority. Given the state of prisons generally, the Scottish Government and the SPS must develop robust contingency plans should any other part of the prison estate become uninhabitable.

On underlying pressure on the prison service, Ms Marra added: “It is clear to the Committee that there are significant and wide-ranging challenges both the SPS and Scottish Government must overcome. The SPS is currently accommodating around 500 prisoners above capacity and there is no evidence to suggest that prisoner numbers will decrease in the short term.

“At the same time, the SPS’s revenue budget is down by 12.5 per cent in real terms; the capital programmes for HMPs Barlinnie, Inverness and Greenock are behind schedule and prisoner violence is on the increase. At its core, this situation is undermining the Scottish Government’s policy objectives of rehabilitating prisoners and reducing re-offending.”

The report finds that either the numbers entering prisons needs to be reduced or additional capacity provided to ensure that prisons are a safe and adequate environment for those who live and work in them.

As such, the service should be funded for the population it currently holds and for the expected increase rather than it being assumed that prisoner numbers will fall. Suggestions of doubling up prisoners in individual cells are a backwards step, says the committee.

The report states that action needs to be taken now by both the SPS and the Scottish Government to address these significant pressures. Such action must be based on a whole-system approach, requiring solutions from across the justice system.

On HMP Barlinnie, the report says: ‘Given the history of the prison service capital programme to date, it would seem that further delays in the completion of HMP Barlinnie are likely. It is crucial that the SPS and the Scottish Government anticipate and plan for such delays and put in place robust contingency plans.

‘The Scottish Government and the SPS must take all steps to ensure that the proposed timetable for the completion of a replacement for HMP Barlinnie is adhered to because if HMP Barlinnie fails, the whole prison system is at risk’.

Read the Committee’s report here.

Immigration proposals ‘an insult to Scotland’

Home Secretary Priti Patel has launched a new points-based immigration system which will ‘open up the UK to the brightest and the best from around the world’ – but the Scottish Government says the plans completely disregard Scotland’s needs. 

The new system, which takes effect from 1 January 2021, will ‘end free movement, reassert control of our borders and restore public trust’.

It will assign points for specific skills, qualifications, salaries or professions and visas will only be awarded to those who gain enough points.

The government says it has listened to the clear message from the 2016 referendum and the 2019 General Election and will end the reliance on cheap, low-skilled labour coming into the country.

Overall levels of migration will be reduced, with tighter security and a better experience for those coming to the UK.

The new single global system will treat EU and non-EU citizens equally. It will give top priority to those with the highest skills and the greatest talents, including scientists, engineers and academics.

The global talent scheme will also be opened up to EU citizens which will allow highly-skilled scientists and researchers to come to the UK without a job offer.

Home Secretary Priti Patel said: “Today is a historic moment for the whole country. We’re ending free movement, taking back control of our borders and delivering on the people’s priorities by introducing a new UK points-based immigration system, which will bring overall migration numbers down.

“We will attract the brightest and the best from around the globe, boosting the economy and our communities, and unleash this country’s full potential.”

The UK government says the points threshold will be carefully set to attract the talent the UK needs.

Skilled workers will need to meet a number of relevant criteria, including specific skills and the ability to speak English, to be able to work in the UK. All applicants will be required to have a job offer and, in line with the Migration Advisory Committee’s (MAC) recommendations, the minimum salary threshold will be set at £25,600.

The new points-based system will also expand the skills threshold for skilled workers. Those looking to live and work in the UK will now need to be qualified up to A level or equivalent, rather than degree level under the current system. This will provide greater flexibility and ensure UK business has access to a wide pool of skilled workers.

In line with the government’s manifesto commitment there will be no specific route for low-skilled workers. It is estimated 70% of the existing EU workforce would not meet the requirements of the skilled worker route, which will help to bring overall numbers down in future.

Professor Alice Gast, President of Imperial College London, said: “British science is global. The new post-study work and global talent visas will help us to attract the world’s brightest students and researchers, wherever they come from.

“From the race to develop a coronavirus vaccine to clean energy, British science’s international collaborations drive innovation and excellence.”

Student visa routes will also be points-based and be opened up to EU citizens, ensuring talent from around the globe has access to the UK’s world-class universities. Those wishing to study in the UK will need to demonstrate that they have an offer from an approved educational institution, that they can support themselves financially and that they speak English.

In addition, the seasonal workers pilot will also be expanded in time for the 2020 harvest from 2,500 to 10,000 places, responding to the specific temporary requirements of the agricultural sector.

EU citizens and other non-visa nationals will not require a visa to enter the UK when visiting the UK for up to 6 months. However, the use of national identity cards will be phased out for travel to the UK and the Home Office will set out our plans in due course.

Those EU citizens resident in the UK by 31 December 2020 can still apply to settle in the UK through the EU Settlement Scheme until June 2021.

While the points-based immigration system may be welcomed by some, the Scottish Government has lambasted the proposals.

Migration Minister Ben Macpherson said: “The UK Government’s immigration proposals are an insult to Scotland – they completely disregard the needs of our employers, our public services and our communities.

“There is a clear need for a fundamentally different approach to migration policy to reflect Scotland’s distinct demographic and geographical needs. The UK Government promised a system that would deliver for all of the UK including Scotland yet these proposals do not reflect the clear evidence from employers, local authorities, universities and experts about their needs. Indeed there is not a single reference to Scotland in the document.

“Telling employers that they will just need to adjust will be deeply concerning to our agriculture sector; to our care sector; and to our transport sector. We need an evidence based approach to immigration policy which reflects the needs of our economy and has been developed through engagement with employers and communities.

“The Scottish Government put forward a clear, workable proposal of devolving immigration powers by introducing a Scottish Visa, which would allow Scotland to attract and retain people with the skills and attributes we need for our communities and economy to flourish.

“Our proposals have widespread support across the business and third sector communities in Scotland, and it is time the UK Government listened to those voices, instead of ploughing ahead with their deeply damaging proposals which will devastate the Scottish economy and our future prosperity.”

DEVASTATE the Scottish economy? NOT SO, argues Douglas Ross, the UK Government’s Parliamentary Under Secretary of State for Scotland.

“We will build an open, outward-looking United Kingdom – a nation which draws on a global pool of talent and expertise, and values a person’s skills more than what country they come from.

“The new system announced today will make sure our economy attracts and retains the best talent from around the world, welcoming people to Scotland and the whole UK based on how they can help grow our country.

“For our Universities and high-tech sectors, this will open the door to more skilled staff. We have also recently confirmed a new graduate route which will allow international students to stay in the UK for two years after they finish studying. It will make the UK’s offer even more competitive and make it easier for international students to secure skilled jobs in the UK.

“The new system will also reduce the salary threshold, which is again good news for Scotland. As an MP for a rural constituency I know there are challenges that communities in rural Scotland are facing, particularly the reliance on low-skilled and seasonal migrants. Although remote areas are not unique to us in Scotland.

“To further support this sector, we are quadrupling the Seasonal Workers scheme for agriculture from 2,500 to 10,000 places which is important for our vital agricultural sector. Expanding this pilot will help us assess and inform future decisions of our immigration system.

“But we also need to consider why people leave these areas which is more important than bolstering local communities with uncontrolled migration. The Scottish Government has significant devolved tools at its disposal to attract people to parts of Scotland and we encourage them to start delivering on this.

“The Scottish Government have been campaigning for a different immigration system that goes against the recommendations of the independent and impartial Migration Advisory Committee. Applying different immigration rules to different parts of the UK would create additional burdens for business – and build borders within the UK.

“Our points-based immigration system will deliver what businesses in Scotland have asked for and work in the interests of the whole of the United Kingdom.

“What we need to do now is continue to work, with the Scottish Government, to ensure Scotland is an attractive destination for workers from around the world, so that we continue to build our economy.”