Scotland Act Order approval will increases borrowing resource to fund vital public services including schools, hospitals and key infrastructure to boost growth
More money to fund vital public services will be at the disposal of the Scottish Government after a motion passed in the House of Commons yesterday that will see their borrowing powers increased in line with inflation.
Scotland Office Minister John Lamont secured the approval of a Scotland Act Order that increases the Scottish Government’s resource borrowing limit from £1.75 billion to £1.78 billion and the capital borrowing limit from £3 billion to £3.05 billion in 2024-25, enabling them to invest further in schools, hospitals, roads and other key infrastructure that will help to grow the economy and create better paid jobs and opportunity in Scotland.
The move upholds the UK Government’s commitment to the new Fiscal Framework agreed in August 2023 between the UK and Scottish governments which included annual uprating and gives the Scottish Government certainty over borrowing limits for the 2024/25 financial year.
UK Government Minister for Scotland John Lamont said: “We have listened to calls from the Scottish Government for greater certainty and flexibility to help them manage their budget. This is a great example of devolution in action and how we can deliver for people of Scotland when our two governments work together.
“The wider Fiscal Framework deal – worth billions of pounds to Scotland over the coming years – builds upon work to support economic growth and provide more high-skill jobs, investment and future opportunities for local people, such as through Investment Zones and Freeports in Scotland.
“The UK Government has made great strides in growing the economy and by halving inflation sooner than forecast. With our direct investment in Scotland now standing at more than £3billion, we are creating opportunities right across the UK.”
In addition to the changes made to the cumulative borrowing limits through today’s Order, the Fiscal Framework agreement also saw the permanent doubling of the resource borrowing annual limit from £300 million to £600 million.
Limits on how much can be withdrawn from the Scotland Reserve to spend in future years was also removed. This boosts spending through borrowing by £90 million in 2024/25. All future limits will increase in line with inflation.
The new arrangements compare with the previous Fiscal Framework, where the Scottish Government’s capital borrowing limit was £450 million per year within a £3 billion cap, as well as receiving a Barnett-based share of UK Government borrowing. Going forward these amounts now rise with inflation instead, which supports additional investment across Scotland and lays the foundations for economic growth.
The funding arrangements for tax continue, with the Scottish Government continuing to keep every penny of devolved Scottish taxes while also receiving an additional contribution from the rest of the UK.
Background:
Scotland act orders in the UK Parliament fully support devolution by facilitating amendments to be made to UK legislation affecting Scotland, to enable Scottish legislation to have full effect, or additional powers to be transferred to Scottish Government ministers.
On average, seven Scotland Act Orders are made each year and more than 250 have been passed since the start of devolution.
The target date for the order to come into force is 17 June 2024, subject to the date of signing.
First Minister John Swinney is to set out the priorities that will underpin the work of his government today (Wednesday, 22 May), focused on a central mission to eradicate child poverty.
In a statement to Parliament, the First Minister is expected to commit the Scottish Government to eradicate child poverty and to work with business and industry to grow the economy, invest in net zero and deliver stronger public services.
The First Minister will also make clear the need for bold and collaborative action across the Parliament, focused on the priorities of people in Scotland.
Ahead of the statement, the First Minister will meet pupils at a new breakfast club in Kirkcaldy in Fife. There he will see the impact of innovative school-age childcare services in contributing to the eradication of child poverty and growing the economy – by helping parents and carers access vital childcare to help find and sustain good jobs.
The First Minister said: “Eradicating child poverty will be the single most important objective of my government – and work in other priority areas will support and drive that mission.
“I intend to build on our record of delivery. Since 2007, economic growth, per head, and productivity have been stronger in Scotland than the rest of the UK, Scotland’s core A&E units are the best performing in the UK, and measures such as our Scottish Child Payment are estimated to keep 100,000 children in Scotland out of relative poverty this year.
“I am acutely aware of the economic and fiscal realities that we face and I want to take forward measures that will help people and their families to get on in life: to enable the people of Scotland to live happier, healthier lives.
“One of the benefits of long service in politics is having witnessed the Scottish Parliament when it is functioning at its very best. That happens when parties work constructively together.
“My government will do everything in our power – working with Members from across parties – to make child poverty a thing of the past.”
The Scottish Liberal Democrats formally announce the selection of Mike Andersen as their candidate for Edinburgh North and Leith in the upcoming general election. Originally hailing from South Africa, where he practiced as a litigation attorney, Mike now lives in Canonmills with his husband and their dog.
Mike’s passion for his chosen country and his commitment to community service led him to join the Liberal Democrats, where he has become an active and engaged member.
“I love having the opportunity to get out on the streets of Edinburgh North and Leith to connect with constituents, listen to their views, and understand their concerns.
“I am additionally immensely proud to stand shoulder-to-shoulder with the committed Liberal Democrat Councillors of Edinburgh North and Leith. Their relentless dedication mirrors our party’s steadfast commitment to serving the community and driving real, positive change.”
Raised in a household where service and community were paramount values, Mike’s upbringing instilled in him a profound sense of duty and accountability.
“From a young age, with my father serving in the military, I can remember being taught to do the right thing and not only the easy thing. I resolutely believe that ethics and accountability in public service are non-negotiables. Ethics should not only be talked about but should be seen and shown in action.”
Mike’s decision to stand as a candidate reflects his desire to enact meaningful change, placing the needs of Edinburgh North and Leith front and centre. He envisages a future where promises are kept, voices are heard, and every individual has an opportunity to reach their potential, embodying the core principles of the Liberal Democrats.
“Scotland is filled with talented, good, hardworking people. People who are simply seeking a fair deal in life, the deal they were promised through their hard work. The Liberal Democrats are the only party working to fulfil this promise of a fair deal.”
As the candidate for Edinburgh North and Leith, Mike presents a vision of a United Kingdom that embraces a role as a global leader in human rights and culture, while fostering an environment where both individuals and businesses can flourish.
“We can have a UK that is again proud to hold its head high on the global stage, as both a voice for Human Rights and a cultural superpower. We can have a UK which helps the vulnerable in society while providing the space for people and businesses to flourish.
“We can have a UK where voices are heard and Scotland sits as an equal partner. It is this vision I am fighting for and it is a vision which can become a reality but only if we vote for actual change”
Mike Andersen embodies the spirit of change, offering a fresh perspective and a steadfast commitment to Edinburgh North and Leith, Scotland and the United Kingdom, say the Lib-Dems.
The First Minister has set out his ambitions for Scotland’s economy during a speech in Glasgow.
Speaking at the Barclays Campus in Glasgow’s financial district on Friday, First Minister John Swinney outlined his government’s approach to economic policy making.
Mr Swinney said poor decision-making at UK level, typified by Brexit and immigration policy, means the Scottish Government must work even harder with its limited powers to help businesses and workers thrive.
The First Minister stated his determination to bring hope and optimism and said he will “go all out” to encourage economic investment.
John Swinney said policy making will be governed by:
Moderate left of centre, progressive values
A partnership approach with unions and business
A focus on actions
Problem solving based on evidence
The First Minister will highlight significant announcements in Scotland’s renewable energy sector this week and actions the Scottish Government is taking to boost high growth businesses.
The First Minister said: “My goal is to help people live happier and healthier lives with higher living standards and to help businesses boost profitability.
“The evidence shows that independent countries that are comparable to Scotland are wealthier and fairer than the UK.
“Scotland has the talents and resources to match that performance with independence but in the here and now and in the face of Brexit we must work even harder to help Scotland’s economy with the powers we have.
“I will go all out to encourage investment in Scotland and I will ensure people know my government is a firmly pro-business administration.
“A partnership with trade unions and business will be at the core of my approach and through that approach and given our resources, not least incredible renewable energy, we should look to the future with hope and optimism.”
ANALYSIS: FRASER of ALLANDER INSTITUTE
New FM – new approach on the economy?
Today, the new First Minister John Swinney set out his broad economic aspirations for Scotland (write MAIRI SPOWAGE and EMMA CONGREVE).
In a speech at the impressive Barclays Glasgow Campus (which he said embodied the ambition he wished to have for the economy), he set out the vision he had for Scotland to have a strong, successful, innovative and dynamic economy.
For people who were after specific policy actions, the speech was light on detail, but it was not perhaps fair to expect the FM to outline these sorts of specifics in a speech like this.
The FM also had a difficult line to tread, given (as he himself pointed out) that he has been a Minister in government for 16 of the last 17 years and wanted to talk about successes in a record he is “immensely proud of”. At the same time, he needed to recognise that there were failings in the previous administration that had led to him being in office as First Minister.
Economic Growth is front and centre
The First Minister had said as he took office that eradicating child poverty was his key policy objective. This morning he was keen to set out that there is no conflict between eradicating child poverty and boosting economic growth – rather, they go hand in hand. He set out that boosting the economy will create opportunities for people and raise living standards and that reducing poverty raises spending power and boosts productivity. This is to a large degree true, but there will at times be trade-offs that will require one to be prioritised over the other.
Given the key stakeholders from businesses and business organisations in the room for his speech today, he was very keen to set out that his government was going to work collaboratively with businesses and other organisations to design and implement policies to strengthen the economy. Even more broadly, the FM said that he wished to bring more consensus building back into Scottish politics to try to achieve outcomes – to “build up, not tear down” as he put it.
There was a clear “Scotland is open for business” from the FM today. Supporting more investment in Scotland (particularly related to the Energy Transition and Housing) is clearly a priority for this new administration. This featured heavily in this speech and has been supported by some of the policy announcements made earlier this week.
We will do, rather than write strategy documents
A widely welcomed aspect of the speech is likely to be the FM’s acknowledgment that his government could probably do with carrying out “more concrete actions and fewer strategy documents”.
We have been on record a number of times as saying that the Scottish Government produces too many and too weighty strategy documents. So this is a crowd pleaser to a room of people who are likely to want to see action rather than just warm words and have seen endless strategies come and go.
However, it is important to remember what the problem sometimes was with these documents. Sometimes, in the case of recent economic strategy documents, the problem is that they aren’t really strategies – if they set out high-level principles that no one can disagree with, but don’t provide a meaningful framework for prioritisation and dealing with trade-offs, then they aren’t particularly useful.
In other cases, even where strategies are set, they can often gather dust on a shelf rather than meaningfully drive activity in government.
All of this from the FM is likely to be broadly welcomed – it’s an easy sell to say there will be less bureaucracy. But let’s not forget that we still need a clear economic strategy from the FM and the DFM – and that a strategy is not a strategy unless it rules some things out and recognises trade-offs and carries through into day-to-day activity. This clarity and policy stability is what is likely to be required to inspire the confidence in investors that this new administration would like to see.
Looking forward, not back
Many of the questions from journalists in the room today were designed to get the FM’s views on what went wrong with economic policy under the previous leadership, In addition, he was asked what his government was likely to do on policies like rent controls, short term lets legislation, and tax increases (specifically income tax) that have been put in place at the past budgets. Essentially, people were keen to hear what, in these specific areas, might change under a John Swinney government.
The FM said clearly that he was “looking forward, not back” in response to the question about what went wrong under Humza Yousaf.
With regards to specific policies where regulation was impacting businesses, he said his Cabinet colleagues were looking at lots of areas of policy and that more details on specific policies would be following in the weeks and months to come.
On tax, he was more forthcoming – acknowledging that the higher tax rates on above-median earners in Scotland are an important component of raising revenue in straitened fiscal times, but also saying that “we can’t keep raising taxes”. It will be interesting to see how this approach to tax is reflected in the Government’s Draft Tax Strategy, which is due alongside the Medium Term Financial Strategy (date currently tbc). That is if these two documents survive the cull of strategies …
Evidence-based approaches
The FM today said a number of times that the government he leads will be more practical and will be driven by the evidence of “what works”. We are very supportive of this, of course, and hope it signals a shift of more meaningful appraisal and assessment of policy options within the Scottish Government, with the associated investment in evaluation.
In doing this, unintended consequences, whether economic or otherwise, are more likely to be identified and can be proactively mitigated, and/or it can allow the government to change course at an earlier stage.
In addition, progress and continuous improvement can only happen in a culture of meaningful evaluation and being prepared to learn from what worked and what didn’t work.
For example, how well has the policy on rent freezes and caps worked to date? It would initially appear from rental costs that it has had the opposite effect on rents than the government presumably desired, and it would also appear to have had an impact on investor confidence in the sector. Given the FM’s focus on housing in his speech today, and his commitment to be evidence-based, it will be interesting to see how this policy area progresses.
Is this a meaningful shift in approach?
With his speech today, that is certainly what the FM is trying to convey. He was saying many of the right things to hearten those who want to see the government focus on economic growth.
However, the proof will be in the policy action that is actually taken. So, let’s wait for these details in the weeks to come.
A search for local heroes from communities across Scotland is underway as the Scottish Parliament announces plans for a special commemorative anniversary event to take place on Saturday 29 June.
Every Member of the Scottish Parliament is being asked to nominate one of their constituents who have made an extraordinary contribution to their communities, their local hero. They will be invited to attend the event on the Saturday 29 June alongside their MSP.
The event will mark almost 25 years to the day since the Scottish Parliament was officially opened on 1 July 1999. Taking place in the Debating Chamber, the day will mark the achievements of the Parliament over the last 25 years as well as being a celebration of Scottish culture.
Presiding Officer of the Scottish Parliament, Rt Hon Alison Johnstone MSP said: “As we prepare to mark 25 years of the first sitting of The Scottish Parliament, it reminds us of the significant political journey that the Scottish people have been on and the progress that’s been made since 1999.
“Our event in June is an opportunity for people from across Scotland to celebrate with us. To reflect on the role that MSPs and the Parliament have had over the past 25 years and the importance of continuing our commitment to our founding principles.
“A cornerstone of this commemorative event will be recognising the extraordinary contribution people from across Scotland make to their communities.
“I look forward to welcoming people from all over Scotland for a day of reflection and celebration.”
Local Heroes have taken part in the opening ceremonies of the Scottish Parliament in 2007, 2011, 2016 and 2021.
The Scottish Parliamentary Corporate Body securely processes journalists’ data for the purpose of enabling reporting on the work of the Scottish Parliament, in line with current data protection requirements.
Scottish Conservative and Unionist MSP for Lothian Miles Briggshas criticised the Scottish government on what he calls its ‘shameful’ record regarding the reduction of specialist music teachers in primary schools across Scotland.
It comes following a question asked by Mr. Briggs in the Scottish Parliament on Thursday afternoon about the impact on children and young people of the decline.
In Lothian local authorities, there are 4 teachers in Edinburgh City and 2 in West Lothian, while East Lothian and Midlothian have none between them.
In 2013, there were 5 in Edinburgh City, 5 in West Lothian and 0 in both East Lothian and Midlothian.
There are only 37 teachers for 32 local authorities in Scotland, down from 98 in 2008 – the first year in which the SNP was in power in Scotland – and down from 108 in 2011, when the SNP formed a majority government.
The reduction in specialist music teachers at primary schools threatens to extend the gap in opportunities between state and private education.
Mr. Briggs called on the Scottish government to put aside its pursuit of independence and focus on more pressing matters.
Lothian MSP Mr. Briggs said:“This is another example of the SNP government’s mismanagement of a sector, this time regarding specialist music teachers in primary schools.
“For a country with such a rich musical tradition as Scotland to have just 37 specialist music teachers for primary schools across the country is shameful and something the Scottish government should be embarrassed about.
“In my own region of Lothian, there are just 6 – down from 10 a decade ago – and with none in East Lothian or Midlothian at all.
“No doubt, however, the SNP’s spin doctors will be pinning the blame on Westminster and informing us of how an independent Scotland would be the sound of music.
“They have let down the country, they have let down the voters, and now they have let down the children.
“Young people and children are the ones that will suffer from this continued reduction in specialist teachers and it is high time the SNP focused on the proper demands of the country and stopped prioritising their independence dream.”
A call for views on the Scottish Government’s proposals for National Outcomes has been launched.
The Scottish Parliament’s Finance and Public Administration Committee will lead Holyrood’s committees in scrutinising the proposed new and revised measures under the National Performance Framework.
Views are being sought from across the public sector, from businesses, the voluntary sector and from communities.
The deadline for submitting views is 28 June 2024.
Finance and Public Administration Committee Convener Kenneth Gibson said:“The Scottish Government must, by law, review the National Outcomes for Scotland at least every five years.
“Earlier this month the government published its proposals for new and revised National Outcomes.
“Our committee will lead the Parliament’s scrutiny of the new proposals and, working with other Committees, consider whether the proposed National Outcomes are the right ones for Scotland, and whether the Government should make any other changes.
“Our Committee, along with others, will also examine whether the 13 proposed Outcomes will lead to better lives for the people of Scotland, as intended by the Scottish Government.”
Call for Views
The committee’s call for views asks nine questions about the proposed National Outcomes.
The Scottish Government explains that the National Performance Framework is Scotland’s wellbeing framework.
The National Performance Framework aims to get everyone in Scotland to work together to deliver on the National Outcomes. This includes:
national and local government
public and private sectors
voluntary organisations
businesses and
communities.
What are National outcomes?
The Government explains that National Outcomes are part of the NPF and are the broad policy aims which, with the NPF, describe the kind of Scotland “in which we all want to live”.
The Scottish Parliament must be consulted on proposed National Outcomes and also considers the consultation the Government has carried out.
The Scottish Government’s Report on proposed National Outcomes and its consultation was published on 1 May 2024.
Committee Scrutiny
The Finance and Public Administration Committee is leading consideration of the proposed National Outcomes, although some other Committees will wish to consider evidence in their areas of interest. There is one consultation for all Committees which seeks views on the Government’s proposed National Outcomes.
What happens next?
Once the consultation has closed, the responses will be analysed, and that analysis will be sent to the relevant Committee to consider.
It will be for each Committee to consider what action they may wish to take, including whether to publish their views in a letter or a report to Parliament.
Lorna Slater, the local Scottish Green MSP for Lothian Region has hailed the transformative impact of free bus travel for everyone under 22 in Edinburgh.
New figures, published by the Scottish Government, show that over 85,314 young people in the capital city are already benefiting from the scheme, allowing them to travel anywhere in Scotland.
This groundbreaking initiative was secured through negotiations between the Scottish Greens and the Scottish Government. Scotland is the only country in the UK that offers free bus travel for all young people under 22.
Over 137 million free bus journeys have been taken across the country, allowing young people to travel for work or education, or simply to visit friends and family.
Ms Slater said: “The free bus travel scheme for under 22s has been transformative, and in some cases life-changing, for young people in Edinburgh.
“Allowing young people to access school, work or leisure for free is helping to support them and their families through a Tory cost-of-living crisis which has hit everyone in Scotland.
“The scheme has opened up huge opportunities for young people across our communities, creating exciting new chapters and helping them to explore the country and develop crucial skills for the future.
“Transport is Scotland’s largest source of carbon emissions. Encouraging people to use public transport rather than take the car is a huge boost for our environment and will reduce the number of cars on our roads.
“Over 85,000 young people in Edinburgh have already signed-up for their free pass, and I urge all those who have not yet registered to do so today at Freebus.scot.”
Deidre Brock MP has called for compensation for the victims of the infected blood scandal to be put in place without further delay.
The Edinburgh North and Leith MP formally handed in a petition to the UK Parliament on behalf of her constituents, prior to the final report of the Infected Blood Inquiry being published on Monday May 20th.
The petition calls on the UK Government to implement the findings of the second interim report published in April 2023, which has already provided recommendations about compensation.
The inquiry Chair Sir Brian Langstaff made clear at the time that the compensation scheme should be set up straight away, to avoid adding to the decades-long delays people had already suffered, yet over a year later there is still no clarity and no timeframe has been set for payments.
The petition was led in Edinburgh North and Leith by Deidre Brock’s constituent Justine Gordon-Smith who, together with her sister Rachel lost their father, Mr Randolph Peter Gordon-Smith, to the contaminated blood scandal in deeply traumatic circumstances. They have been tirelessly campaigning ever since.
Ms Brock said: “I am handing in this petition on behalf of everyone in Edinburgh North and Leith who is working so hard for justice – people who received infected blood, their carers and the families of those who have been lost in the worst treatment disaster in the history of the NHS.
‘The moral case for compensation has long been accepted by government, so what are we waiting for? More delays merely worsen people’s suffering.
‘It’s a tragic truth that people who were infected are dying while the government dithers over the justice they and their families deserve.
‘The interim report was clear that they should go ahead with compensation immediately and that was published over a year ago.
“When will they lay out a clear – and short – timeframe for victims to get the compensation they’ve been waiting decades to receive? Or is the UK Government planning to kick this into the long grass again until they are kicked out of office?
‘I commend the efforts of my constituent Justine who has been tireless in her fight for equitable treatment for all those affected. I stand squarely with her, her sister and everyone who has suffered as a consequence of this scandal. They have already struggled enough and this battle for compensation is one they should not have to keep fighting.
‘I urge the government to finally do the right thing and deliver justice to the victims of the infected blood scandal.”
LOTHIAN MSP CALLS FOR CRISIS SUMMIT ON FESTIVAL FUNDING
Foysol Choudhury, list MSP for Lothian and Shadow Culture Minster for Scottish Labour, has today pressed the Scottish Government to heed Scottish Labour’s calls for a crisis summit on festival funding.
Mr Choudhury questioned the Cabinet Secretary for Culture, Angus Robertson MSP, in the Scottish Parliament’s Chamber today (15th May 2024).
MSP Choudhury said: “Although the Scottish Government may claim to support Scotland’s cultural sector, the situation on the ground is very different.
“It is clear that Scotland’s cultural sector is under enormous pressure, with cultural organisations crying out for support and venues and festivals under threat.
“Yet, the Scottish Government still won’t heed Scottish Labour’s calls for a crisis summit on festival funding.
“We need the concrete action of a festivals crisis summit now, not more weak platitudes from the Scottish Government.”
MSP Choudhury also raised concerns about the Scottish Government’s structure and governance and how this is impacting the culture sector.
Mr Choudhury echoed his Labour colleague Neil Bibby’s sentiments, which Mr Bibby raised in the Scottish Parliament today, about the Cabinet Secretary’s conflict of interest.
As Mr Robertson is MSP for Edinburgh Central, and Edinburgh is a major cultural hub, the Labour MSPs argue that the Cabinet Secretary should recuse himself from cultural matters pertaining to Edinburgh.
Something which will be made very difficult, they say, as there is now no specific Culture Minister in John Swinney’s new Scottish Government.
Mr Choudhury said: “Yet again we are seeing the Scottish Government’s contempt for culture as the Culture Minister role has been disposed of-meaning the Cabinet Secretary will have no Minister focused specially on culture to pass Edinburgh based cultural matters to, instead having to rely on the Deputy First Minister to pick up the pieces.
“This is not the first time we have seen the Scottish Government’s poor governance choices impact our cultural sector-whilst Creative Scotland funding is at a standstill level, the Scottish Government have been wasting nearly £2 million on staffing for the “Building New Scotland” Papers.
“Now that the Minister for Independence has been scrapped, which will hopefully stop wasting money which could have been spent to save our cultural sector, I am now also calling on the Scottish Government to scrap the independence papers altogether and reallocate the funds towards culture in Scotland.”
Mr Choudhury says he will continue to pursue the Scottish Government to take concrete action on the crisis hitting the cultural sector in Scotland and to recalibrate their governance priorities, to ensure money spent on party-driven ideologies like independence is instead spent on saving the cultural sector, which he says can benefit the whole of Scotland regardless of party allegiance.
