First Minister John Swinney has written to the Conveners of the Scottish Parliament’s cross-party groups on India and Pakistan to express his support in light of the recent tensions between the two countries, following the terrorist attack in Pahalgam.
In his letter, the First Minister said: “For many in the community, this may be a worrying time, and my thoughts are with those who have family and friends in the region. Scotland’s Indian and Pakistani communities enrich Scotland socially, culturally, and economically.
“I have called upon leaders in the region to choose dialogue, diplomacy, and shared humanity ahead of force and bloodshed. There can be no winners from further military escalation. Protecting civilians is urgent and paramount.
“My officials are in contact with various stakeholders in the communities, as well as with Police Scotland, Universities Scotland, and diplomatic missions. I would urge you to support that dialogue and bring to us any concerns you hear from Scotland’s Indian and Pakistani communities.”
This week the First Minister John Swinney unveiled an earlier than usual Programme for Government covering the final year of this parliament ahead of Scottish elections in May 2026 (write Fraser of Allander Institute’s MAIRI SPOWAGE and EMMA CONGREVE).
The rationale for the Programme for Government is that it sets out the parliamentary programme for the year ahead. The FM said that this is being presented now to ensure a “year of delivery” in the run up to the election.
Since the last PfG, there have been a number of changes to this programme with some dropped (Misogyny Bill), some being substantially re-drafted ahead of being introduced (Heat in Buildings Bill) and others that are already going through Parliament being substantially scaled back (National Care Service Bill). As such, it makes sense for the government to be updating how it intends to make the best use of the scarce parliamentary time in the year ahead.
However, this also provides a convenient time to make some noise about the good things the government is doing in Scotland. The timing, shortly after was expected to be, and indeed was, a difficult week for Labour and Conservatives in elections in England, doesn’t feel entirely accidental. But enough of the politics – what was in the substance of what was discussed?
What were the top priorities?
The key themes of the programme for Government are growing the economy, eradicating child poverty, tackling the climate emergency and ensuring high quality and sustainable public services.
On the economy, the First Minister was keen to first set out the measures that the Scottish Government had pursued to reduce the cost of living for citizens in Scotland, in particular focussing on the decision to partially reinstate the winter fuel payment given it is now a devolved benefit. He also referenced global economic developments, and announced a new “Six Point Export Plan”, which will focus on unlocking target markets. It will be good to examine in the coming months how this lines up with previous efforts such as the Trading Nation Strategy.
The FM was keen to reiterate that eradicating child poverty was at the heart of the SG’s programme, and highlighted the impact that the Scottish Child Payment was directly having on child poverty. The modelling suggests that the measure reduces child poverty by 4 percentage points in 2025-26, which represents about 40,000 children in Scotland. Having said that, as we covered extensively recently, the SG have missed their interim statutory child poverty targets. If these statutory targets are to be met, the child payment will not be sufficient on its own.
Tackling the climate emergency did not feature prominently in the FM’s speech, but there is more in the document on this than was presented in the chamber. The removal of peak fares was presented as a cost of living measure, but is also discussed as a measure likely to support modal shift.
This announcement is interesting in the context of the Government ending the pilot of peak fare removal in September 2024, as (according to the government’s evaluation) it didn’t encourage enough modal shift to pay for itself, and generally helped out those from better off households, rather than those in the poorest households.
Finally, there was the section on public services, which had as the headlines the commitments on the health service that had been well-trailed, including an extra 100,000 GP appointments.
While this had been covered as dealing with the “lottery of the 8am call”, it would appear to be a more general commitment to increase capacity, which the government will hope will improve the way that people experience their interactions with primary care.
The Programme for Government’s claim that additional GP appointments will “address the root causes of ill health” appears to contradict much of the Scottish Government’s own public health messaging—as well as broader expert consensus—which emphasises the importance improving living conditions (also known as Primary Prevention) as the key to improving health outcomes, rather than relying on healthcare services alone. A new Population Health Framework is due to be published in the next month – we’ll have to wait and see how this all fits together.
It goes without saying that none of these issues can be solved in 12 months. And while they may be government priorities, we do not have the detail on delivery. A high-level document is not the place to be setting out the nuts and bolts of this, but the concern is that rather than sparing us the detail, the government lacks the enough of a grasp on the issue to solve it and has even less of a plan on how progress will be measured and evaluated.
For example, on GP appointments. How many GP services are unable to meet demand? Why are some having to operate restrictions on appointment booking and others are not? How will the government monitor whether additional resource allocated is making a difference? How is this compatible with some GPs currently not able to take on staff because of funding restrictions?
To be clear, allocating additional resources to a problem is not the same as delivering an improvement.
Fiscal pressures limit ambition
The PfG usually comes out a few months before the Scottish Budget meaning that pledges set out by the First Minister could then make their way into the budget process with money allocated and available for the start of the next financial year.
With the Scottish budget likely to be at least 6 months away, and the next financial year 11 months away, this PfG had to fit into the fiscal envelope already set. And this is an envelope already under pressure, with more potentially to come.
The Scottish Government has got less than it wanted from the UK Government to compensate for the increase in employer National Insurance Contributions, and this money will need to be found within existing budgets for 2025-26.
We are also yet to see the conclusion of pay deals for 2025-26, an issue that has seriously derailed government budgets in previous years; and there was no provision for the likely progression of staff on pay scales, which will add further pressure.
Unfortunately, the Cabinet Secretary for Finance has said today that the Medium-Term Financial Strategy (MTFS), which should normally kick off the year-round budgeting process (see here for more MTFS chat), has been delayed until the end of June. Shona Robison has said in a letter to the Scottish Fiscal Commission, released this afternoon, that it is due to the timing of the UK Spending Review. This has been known for some time and a further delay to the MTFS is disappointing.
What was missing?
As mentioned, the Heat in Buildings Bill is being revised and this involves taking out some of the more ambitious elements related to mandating replacement of domestic heating systems. Other, non-legislative but still PfG relevant, pledges around reducing car use have been dropped recently following an Audit Scotland report citing minimal progress towards its target.
The FM reiterated the government’s commitment to ending the two-child limit on benefits, but there was little extra detail on the delivery timetable for this given the repeated statements the FM has made on introducing this before April 2026 if possible.
As the nation marks VE Day, remembering the triumph of our values and the sacrifices made to secure them eight decades ago, the Prime Minister will share his vision for working people, once again, to feel the benefit of Britain stepping up.
As the nation marks VE Day, PM will deliver keynote speech at the London Defence Conference
He is expected to say that the benefits of boosting defence investment in a changing world must be felt directly in the pockets of working people
Seizing on the conference theme of Alliances, he will set out how state, businesses and society must join hands on security and prosperity
He will also unveil a £563 million contract for Rolls-Royce, becoming the latest investment in Britain’s first class engine building industry
As the nation marks VE Day, remembering the triumph of our values and the sacrifices made to secure them eight decades ago, the Prime Minister will share his vision for working people, once again, to feel the benefit of Britain stepping up.
Delivering the keynote speech at the London Defence Conference this morning, he will describe the government’s task to seize upon the ‘defence dividend’ presented by our increased investment in defence, in order to create jobs, wealth and opportunity in every corner of the country.
In doing so he will highlight how the government’s boost to defence spending – the highest since the Cold War – will not only provide safety and security for the United Kingdom, but also cement the UK’s status as a defence industrial leader, with more high skilled jobs for people proud to keep our country safe.
Prime Minister Keir Starmer is expected to say: “Our task now is to seize the defence dividend – felt directly in the pockets of working people, rebuilding our industrial base and creating the jobs of the future.
“A national effort. A time for the state, business and society to join hands, in pursuit of the security of the nation and the prosperity of its people.
“An investment in peace, but also an investment in British pride and the British people to build a nation that, once again, lives up to the promises made to the generation who fought for our values, our freedom and our security.”
The Prime Minister will use his speech to deliver a tribute to the bravery of the veterans who secured victory 80 years ago and the remarkable men and women who carry the vital task of protecting our security today.
It follows a street party on Downing Street on Monday where the Prime Minister welcomed Second World War veterans and cadets from across the country, and comes ahead of his attendance at the service at Westminster Abbey this afternoon.
He will say: “Britain’s victory was not just a victory for Britain. It was a victory for good against the assembled forces of hatred, tyranny and evil, for the light of our values – in a world that tried to put them out.
“Now, as you know, there are people who would happily do likewise today. Our values and security are confronted on a daily basis. We must use this moment to deliver security and renewal for our country.”
At the Conference the Prime Minister will address policymakers, military figures, defence firms and academics from around the world.
In the face of global instability, he will reflect on how the conference theme ‘Alliances’ should mean not only our iron-clad commitment to NATO and Western Values but also an opportunity to double down on efforts to work hand-in-hand with business and society to make the UK better off and more secure.
He will announce the latest significant investment in British expertise with a £563 million contract for Rolls-Royce for the maintenance of Britain’s fleet of Typhoon fighter jets. The work to maintain 130 Typhoon engines will take place at Rolls-Royce’s sites, supporting hundreds of jobs in Bristol and beyond.
The announcement supports the government’s priority of continuing the UK’s great tradition of building the ships, missiles, artillery, vehicles, aircraft and more that keeps us safe – cementing the British defence industry’s place as the engine of national renewal.
It comes less than a week after the Prime Minister hailed the RAF’s new UK-made StormShroud drones.
The groundbreaking new technology will make the RAF’s world-class combat aircraft more survivable and more lethal by delivering high-tech signal jammers to disrupt enemy radar at long ranges, protecting our aircraft and pilots.
The UK has secured ‘the best deal India has ever agreed’, providing businesses with security and confidence to trade with the fastest-growing economy in the G20.
The Prime Minister spoke to the Prime Minister of India Narendra Modi yesterday.
The leaders began by celebrating the landmark UK-India Free Trade Agreement announced today – a deal which will add billions to the UK economy, boost wages and deliver on this government’s Plan for Change.
In a huge economic win for the UK, delivering for working people and British businesses, the Prime Minister underscored the need to go further and faster to get things done, to secure and renew our country.
Through pragmatism and purpose, the leaders noted that this historic deal is the biggest the UK has done since leaving the EU, and the most ambitious India has ever done. Prime Minister Modi also thanked the Prime Minister for his decisive leadership in getting the deal over the line.
Turning to the terrorist attack in Jammu and Kashmir last month, the Prime Minister reiterated his deep condolences at the tragic and senseless loss of life.
Finally, Prime Minister Modi extended an invitation to India, which the Prime Minister was pleased to accept and said he looked forward to visiting India at the earliest opportunity.
UK-India Free Trade Deal: A Deal For Growth
The UK has secured the best deal India has ever agreed, providing businesses with security and confidence to trade with the fastest-growing economy in the G20.
Delivering Economic Growth
The core mission of this Government is to deliver economic growth that raises living standards and puts money in people’s pockets, and that is exactly what this deal will do. We estimate that it will increase bilateral trade by £25.5 billion, add £4.8billion a year to our economy and boost wages by £2.2 billion every year in the long run.footnote 1 This is the best deal India has ever agreed to.
It delivers on our manifesto commitment to create trade relationships that unlock new opportunities for businesses across all our nations and regions.
Case study – Standard Chartered
Standard Chartered is a leading UK-based international banking group with a presence in 53 of the world’s most dynamic markets. It is the largest and oldest foreign bank in India, acting as a ‘super connector’ of cross-border trade and investment by driving commerce and prosperity through its unique diversity for more than 165 years.
Saif Malik, CEO, UK and Head of Coverage, UK, Standard Chartered, said: “The UK-India Free Trade Agreement is a significant achievement. It will create new opportunities for UK and Indian businesses, enable greater access to one of the world’s largest and most dynamic markets, and drive growth and innovation across the UK-India corridor.
“We welcome this strong commitment to partnership and prosperity.”
Case study – UPS
UPS is one of the world’s largest companies, with 2024 revenue of $91.1 billion, and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories, including connecting the United Kingdom and India.
Markus Kessler, Managing Director, UPS UK, Ireland and Nordics, said: “We welcome the announcement of this important agreement between two countries that are both vital markets in our global network.
“We look forward to continuing to help businesses of all sizes across the UK reach new customers in one of the world’s most populous and dynamic countries.”
Future-Proofing Our Economy
This deal gives UK businesses first-mover advantage with a new economic superpower. Currently the biggest country in the world by population, India is projected to move from its fifth-largest global economy to third in the next three years, thanks to the highest growth rate in the G20.
By the end of the decade, it will be home to an estimated 60 million middle-class consumers, whose numbers are projected to grow to a quarter of a billion by 2050. And by 2035, their demand for imports is on course to top £1.4 trillion.
The enormous scope of this market, where British goods and services are already sought after, represents an equally huge opportunity for UK businesses in the decades to come.
Case study – John Smedley Ltd
Established in 1784 in Lea Mills, Derbyshire, John Smedley Ltd is a UK-based manufacturer and retailer of luxury knitwear.
Bill Leach, Global Sales Director, John Smedley Ltd, said: “India is one of the fastest growing luxury markets in the world, and we are very excited about the UK- India Free Trade Agreement coming to fruition.
“John Smedley knitwear is already sold in over 50 countries around the world, and now that the FTA has been finalised, we shall very much look forward to ensuring that an ever-increasing number of discerning luxury consumers in India will enjoy greater access to The World’s Finest Knitwear.
“We are thankful to DBT for their significant efforts in bringing this FTA to successful conclusion.”
Cutting costs for UK-India trade
From day one, this deal will support businesses across the United Kingdom by making it cheaper, easier, and quicker to trade with India. The deal will slash costs on UK exports, including whiskies and gin, cosmetics, medical devices, advanced machinery and lamb.
Based on current trade alone, India’s tariff cuts amount to £400m in the first year, going up around £900m after 10 years. And that’s before factoring in the savings from speedier and easier trade from improved customs and digital commitments. This immediate relief represents a major advantage our businesses will enjoy over their international competitors, helping them to invest, expand, and support more high-quality jobs.
Case study – Smith+Nephew
Smith+Nephew designs and manufactures technology that takes the limits off living. Smith+Nephew’s products include: Advanced Wound Management; orthopaedics and a robot assisted surgery system; and joint preservation and soft tissue orthopaedics.
Deepak Nath, Chief Executive Officer, Smith+Nephew, said: “Given the size of the Indian economy and its healthcare system, India is an important location for Smith+Nephew. The Free Trade Agreement offers the potential to build trading links in the healthcare sector.
“We hope that the Free Trade Agreement will enable Smith+Nephew’s innovative medical technologies to support more healthcare professionals to return their patients to health and mobility.”
Delivering opportunities for High-Growth Sectors
This deal supports the UK’s world-leading high-growth sectors identified in the Industrial Strategy, including:
Slashing tariffs for UK’s large and varied advanced manufacturing sectors, including for automotives, electrical machinery and high-end optical products.
Giving the clean energy industry brand new and unprecedented access to India’s vast procurement market, as India makes the switch to renewable energy, alongside their growing energy demand.
Unlocking new opportunities for medical devices firms within the life sciences sector, with reduced tariffs and rules of origin that factor in the UK’s complex supply chains and ensure that businesses can reap the benefits.
Enshrining copyright protections for the creative sector, enabling our exporters to feel confident exporting to India with a commitment that works will continue to be protected for at least 60 years. India will also commit to engaging on aspects of Copyright and Related Rights. This deal addresses the interests of UK creators, rights holders, and consumers, including around Public Performance Rights and Artist Resale Rights, which acknowledge the importance of payment rights. India will also conduct an internal review of their copyright protection terms.
Guaranteeing access for the UK’s world-class financial and professional business services sectors to India’s growing market. This is on top of securing India’s foreign investment cap for the insurance sector, ensuring UK financial services companies are treated equally to domestic suppliers, and encouraging the recognition of professional qualifications.
Securing India’s best ever commitments on digital trade for our Digital and technology sectors, such as promoting digital systems and paperless trade, helping UK businesses of all sizes take the opportunities on offer in this huge and rapidly expanding market.
Case study – Premier League
The Premier League is the world’s most-watched football competition, reaching 1.6 billion viewers in 189 countries around the world. The global success of the Premier League makes it one of the UK’s most significant soft power assets, amplifying British cultural values and generating economic growth and inward investment.
Premier League Chief Executive Richard Masters said: “India continues to be incredibly important to the Premier League and its clubs. It is a vibrant country that presents exciting opportunities and significant potential.
“The Premier League’s recent announcement of an office opening in Mumbai demonstrates our commitment to build on longstanding work to engage local fans, develop grassroots and elite football and further promote the game in India.
“The continued growth of the Premier League and UK businesses in India will have a positive impact on our domestic economy and we welcome the news of this new trade deal secured by Government, which will support UK businesses operating in India.”
Case study – EY
EY teams work across a full spectrum of services in assurance, consulting, tax, strategy and transactions. Fuelled by sector insights, a globally connected, multidisciplinary network and a diverse ecosystem of partners, EY teams provide services in more than 150 countries and territories.
Rohan Malik, EMEIA and UKI Government & Public Sector Managing Partner, EY, said: “This agreement is poised to accelerate an economic partnership that is already thriving, with the value of total trade between the UK and India having more than doubled from £16.6bn to £40bn over the last decade.
“British businesses stand to benefit substantially from enhanced access to one of the world’s largest export markets and a skills pool that can fuel strategically important UK sectors, including professional services and emerging industries based around data and AI.”
Case study – Concrete Canvas Ltd
Concrete Canvas Ltd is a Wales-based low-carbon concrete manufacturer.
William Crawford, Director of Concrete Canvas Ltd, said: “India is a dynamic and vibrant economy and an increasingly important market for Concrete Canvas products.
“A UK-India FTA will help to accelerate our plans for growth by reducing trade barriers and making us more competitive.
“This is welcome news for both UK and Indian businesses!”
Case study – Biopanda
Biopanda is a Belfast-based medtech manufacturer which exports in vitro test kits for clinical laboratories, veterinary practice, and food safety laboratories.
Philip McKee, Sales Manager at Biopanda, said: “Biopanda have been supplying a range of diagnostic products to the Indian market throughout the past ten years.
“We value the business we have done already throughout India and with the introduction of the UK-India FTA this should benefit in increased trade with the removal of export barriers.
“This will hopefully increase the market access, allowing our distributors throughout India to provide a larger range of our highly accurate clinical diagnostic products at a lower price to the consumer.”
Unlocking Opportunities Nationwide
Through our Plan for Change, this government will raise living standards in every part of the United Kingdom. This deal supports that goal, unlocking new opportunities in every region and nation.
This deal also opens a huge new market for iconic UK brands, securing India’s best ever tariff offer and providing access to India’s growing middle-class consumer base, which will give iconic UK brands the opportunity to expand their reach and influence.
This access includes cutting tariffs on whiskies from 150% to 75% at entry into force, following to 40% after 10 years, as well as on other agri-food products such as soft drinks dropping from 33% to 0% after seven years, and lamb dropping from 33% to 0% at entry into force.
Separately high-end cars will benefit from a drop from over 100% to 10% under a quota. We have also secured India’s best ever agreement on Rules of Origin, which enables UK businesses to take advantage of these new lower tariffs.
This deal will also support consumers as they benefit from the best of India and greater variety as our trading relationship grows, including clothing, footwear, and iconic food and drink. New commitments will also help protect consumers from spam texts from India, which could include requiring opt-out or prior consent.
Case study – Chivas Brothers Ltd
Chivas Brothers Ltd is part of the Pernod Ricard group of companies and exports over £2bn of Scotch whisky and gin every year, including brands like Chivas Regal, Ballantine’s, The Glenlivet and Beefeater.
India is amongst Chivas Brothers’ largest export markets and the biggest consumer of whisky worldwide by volume.
The UK-India trade agreement will help solidify and potentially expand on Pernod Ricard’s existing investments, which includes a €200m distillery construction in the Indian state of Maharashtra and £100m in bottling facilities in Dumbarton, Scotland.
Jean-Etienne Gourgues, Chivas Brothers Chairman and CEO, said: “The announcement of a free trade agreement in principle between the UK and India is a welcome boost for Chivas Brothers during an uncertain global economic environment.
“India is the world’s biggest whisky market by volume and greater access will be a game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine’s.
“The deal will support long term investment and jobs in our distilleries and bottling plants in Scotland, as well as help deliver growth in both Scotland and India over the next decade. Slàinte to the UK Ministers and officials who steered the deal though long negotiations.
Case study – Diageo
Diageo is a global leader in beverage alcohol with a collection of brands across spirits and beer categories sold in more than 180 countries around the world. These brands include Johnnie Walker, Crown Royal, J&B and Buchanan’s whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.
Diageo is a leading player in India’s beverage alcohol sector and is among the top 10 fast-moving consumer goods companies in India by market capitalisation.
Diageo has 50 manufacturing facilities across India, employs over 3,300 people directly in market with a further 100,000 jobs supported throughout its value chain. India is one of Diageo’s largest markets globally and accounts for almost half of its total global spirits volume.
Diageo Chief Executive Debra Crew said: “The UK-India Free Trade Agreement is a huge achievement by Prime Ministers Modi and Starmer and Ministers Goyal and Reynolds, and all of us at Diageo toast their success. It will be transformational for Scotch and Scotland, while powering jobs and investment in both India and the UK.
“The deal will also increase quality and choice for discerning consumers across India, the world’s largest and most exciting whisky market.”
Enhancing Security through our partnership
The UK and India already enjoy a deep and broad partnership built on our shared principles as two democracies, our commitment to the rules-based international order, strong ties in areas including culture, education, food, and sport, and of course through our living bridge – with some 1.9 million people with Indian heritage calling the UK their home.footnote 6
This agreement encourages collaboration between our two complementary economies. It creates a framework to promote closer ties on innovation – including on new technologies in areas like agriculture, health, advanced manufacturing, and clean energy. And our agreement on business mobility will help experts on both sides deliver their services, enabling us to capitalise on the economic transformation that technology will bring over the course of this century.
Through this deal, we are showing the world that we stand for free, fair, and open trade. In an increasingly unstable and volatile world, this provides businesses with the confidence that they need to grow and expand. And as India’s approach to global trade changes, so can this deal. We have agreed in numerous areas that, if India offer a better deal to a different country, we can come back to the table to renegotiate for the UK.
Case study – Coltraco Ultrasonics
Coltraco Ultrasonics are high-exporting advanced manufacturers of ultrasonic instrumentation and systems, exporting 90% manufactured output to 120 countries. Coltraco have twice won the Queen’s Award for Enterprise in International Trade and have exported to India for 30 years.
Since 2019, Coltraco have won the contract for nearly 200 ships of the Indian Navy and Coast Guard and support in-service use and maintenance of their ultrasonic watertight integrity instrumentation on board.
Professor Carl Stephen Patrick Hunter OBE, Chairman Coltraco Ultrasonics Limited & Director-General The Durham Institute of Research, Development & Invention, said: “Coltraco Ultrasonics is strongly supportive of the India FTA Trade Agreement and proud to have modestly contributed to and advising the British negotiating team on various chapters.
“The UK private sector can now, because of the India FTA, the Windsor Framework CPTPP, and a variety of other UK FTAs, look out to the world, balancing our exporting and investment opportunities between the USA, the EU and Asia Pacific.
“It is a tremendous success and we thank British and Indian Civil Servants for their public service in the UK-India FTA.”
Unlocking Access to India’s Untapped Procurement Market
For the first time, UK businesses will have guaranteed and unprecedented access to India’s vast procurement market, covering goods, services and construction. UK businesses will be granted brand new access to approximately 40,000 tenders with a value of at least £38 billion a year.
This will unlock significant opportunities spanning a range of sectors, including transport, healthcare and life sciences and green energy. Alongside this UK firms will, for the first time, have access to India’s procurement portal, connecting them to the information they need to make the best out of these opportunities – which will grow as India builds the infrastructure necessary for an economic superpower with the world’s largest population.
UK companies will also get exclusive treatment under the ‘Make in India’ policy, which currently provides preferential treatment for federal government procurement to businesses who manufacture or produce in India. However, this unprecedented treatment will mean that if at least 20% of a company’s product or service is from the UK, they will be treated as a ‘Class Two local supplier’– granting them the same status that is currently only ever given to Indian businesses.
Case study – Arup
Arup is an employee-owned business that provides engineering and technical and advisory services dedicated to sustainable development. It is headquartered in the UK and operates globally with around 18,000 members. It is a trusted partner of the government in India and has delivered a wide range of projects including the Bangalore international airport, the iconic Statue of Unity, and the Indian Railways Station Redevelopment programme.
Paula Walsh, Managing Director, UK, India, Middle East and Africa, said: “Arup supports the UK–India Free Trade Agreement and the powerful role this will play in boosting investment, jobs and growth.
“It is an important opportunity to deepen our collaboration with partners in India, sharing UK skills and technical expertise to deliver resilient and future-focused solutions across transport, energy, and the built environment.
“We are proud to have been part of a recent delegation to India, sharing renewable energy expertise with government representatives and look forward to continuing this critical partnership.”
Protecting Our Values
Throughout the negotiations, we have championed our values – securing India’s first ever chapters on anti-corruption, consumer protections, labour rights, the environment, gender equality, and development.
We have protected the NHS, defended the UK’s interests, ensured the points-based immigration system is not affected, upheld our high food standards, and maintained our animal welfare commitments throughout.
This deal demonstrates our commitment to both workers and businesses, staying true to our values while driving economic growth.
Yesterday (6th May 2025), Edinburgh North and Leith Labour MP Tracy Gilbert, urged the UK government to officially recognise the state of Palestine, warning that any further delay could result in the loss of a viable Palestinian state, that includes Gaza.
The call followed announcements from the Israeli Security Cabinet over the weekend to expand and intensify Israel’s military operation across the entire Gaza Strip, potentially leading to a full military occupation.
In a statement made in the House of Commons by the Minister for the Middle East, Hamish Falconer MP, Gilbert said, “Now I fear that if we do not recognise a Palestinian state, there will be no Palestinian state that includes Gaza left to be recognised.”
Ms Gilbert’s position has been reinforced by her visits to Israel and Occupied Palestine, which have deepened her belief in the urgency of recognition as part of the process to secure a ceasefire and lasting peace through a two-state solution.
Palestine Red Crescent Society teams and volunteers provide first aid services and psychological first aid to families returning on foot to northern Gaza. PRCS volunteers are also distributing water and leaflets to raise awareness about unexploded objects.
Following the statement, Tracy Gilbert MP said, “I know that the actions of the Israeli government in this conflict have alarmed my constituents.
“I have seen first-hand the state of ruin that large parts of Gaza are now left in. And after two months of blockading vital aid, essential supplies of food and medicine are low, leading to a humanitarian crisis.
“Recognising the state of Palestine is an essential step in helping to bring about the conditions for a ceasefire and long-term security through a two-state solution. I will continue to urge the UK government to recognise Palestine immediately and to place further pressure on the Israeli government to bring them to the negotiating table.”
Poverty Alliance: ‘People in Scotland are demanding better’
The NHS will deliver 100,000 additional GP appointments and Scotland will have a ‘best in UK’ cost-of-living guarantee, including the permanent abolition of peak rail fares, First Minister John Swinney announced as he set out a Programme for Government against a backdrop of global economic challenges.
Speaking one year since he was elected First Minister and one year before the end of this Parliament, Mr Swinney committed to a package of cost-of-living initiatives for households and businesses and a new Six Point Export Plan to unlock target markets.
He set out plans to strengthen the NHS with the delivery of extra GP appointments for key health risks such as high blood pressure, and 150,000 more NHS appointments and procedures, including a 50% increase in surgical procedures such as hip and knee replacements.
Key announcements include:
100,000 enhanced service GP appointments by March 2026 for key risk factors including high blood pressure, high cholesterol, high blood sugar, obesity and smoking as well as more than 150,000 extra appointments and procedures, including surgeries and diagnostic tests, and target cancer pathways to tackle backlogs against the 62-day referral to treatment standard
The cost-of-living guarantee which includes ongoing free prescriptions, eye exams, bus travel for 2.3 million people, free tuition for students and more than £6,000 in early learning and childcare support for each eligible child
ScotRail peak rail fares abolished and the general alcohol ban on ScotRail trains removed and replaced with time and location restrictions
Winter fuel payments for pensioners restored
A new Six Point Export Plan, with a focus on actions to unlock target markets, and showcase Scotland to global buyers
A national regeneration fund that will support at least 26 projects to renew and restore communities, with a focus on delivering more local jobs
More rights and stronger protections for tenants, helping deliver more than 8,000 affordable homes, including for social and mid-market rent, and removing barriers on stalled building sites with the potential to deliver up to 20,000 new homes
The First Minister said: “This Programme for Government is focused on providing the best cost-of-living support across the UK, as well as delivering a renewed and stronger NHS.
“When I became First Minister a year ago, I heard loud and clear people’s concerns about the NHS which is why I am taking serious action to ensure the NHS meets the needs of the public.
“This PfG also shows decisive action to protect Scotland’s economy and maximise our economic potential in the face of global challenges.
“It is being published earlier than usual, in part because it allows a clear year of delivery on the NHS and other public services, but also due to the scale of the looming economic challenge.
“It is a programme for a better Scotland, for a stronger NHS and a more resilient and wealthier Scotland. It is a Programme for Government that gets our nation on track for success.”
POVERTY ALLIANCE: Government programme misses need for fundamental change
Commenting on the Programme for Government, Poverty Alliance chief executive Peter Kelly said: “Many of today’s announcements are welcome, but the package doesn’t go far enough towards creating a just and compassionate Scotland where people have what they need to build a life beyond poverty.
“More and more people in Scotland believe the system is rigged against them and their families. And they’re right.
“Scrapping peak rail fares for good will help many people on low incomes, but many, many more are still being left with unaffordable buses that don’t meet their needs.
“It’s welcome that this programme turns its back on previous cuts to affordable homes, but we urgently need more investment to create a social housing programme that will bring the scandal of child homelessness to an end.
“Reversing the effect of the unjust two-child limit for households in Scotland is the right thing to do, but there was no sign of a pledge to raise the Scottish Child Payment – never mind raising it to the £40 a week that we know is needed to meet our legal child poverty targets.
“And it was good to hear the First Minister talking about sharing Scotland’s growing wealth more fairly, but the Government simply can’t do that without using its powers over investment and taxation.
“People in Scotland are demanding better, and they want a Scottish Govt that will make the big, fundamental changes that will empower households to build a better life for themselves and a better future for all of us.”
STUC: Scrapping peak fares is a victory for workers in Scotland
Commenting on the scrapping of peak rail fares within the Scottish Government’s Programme for Government, STUC Deputy General Secretary Dave Moxham said:“This is deeply welcome news that, whilst long overdue, shows the strength of campaigners and rail unions in demanding an affordable and accessible rail network that is fit for the future.
“This is a clear victory for workers in Scotland and it’s commendable the Scottish Government has listened to the voices of our movement – and listened to their own evidence – which showed the positive impact of scrapping peak fares.
“Peak fares were, simply put, a tax on workers that hit commuters directly in the pocket. We can now ensure we build an interconnected, cheaper and greener rail networks that puts people before profit and puts peak fares out of commission for good.”
Children First: First Minister missed another chance by not increasing Scottish child payment
Children First statement on Scottish Government Programme for Government
Mary Glasgow, chief executive of Children first, said: “We hoped the First Minister would bring bold, ambitious plans to tackle the crippling levels of child poverty in Scotland. Instead, the Programme for Government, while well-intentioned, lacked real action. The First Minister missed another chance to help families by not increasing the Scottish Child Payment to £40.
“While we recognise the Scottish Government’s commitment to eradicating child poverty, supporting whole families and improving mental health support for young people, we are deeply concerned that it lacks urgency and the necessary financial resources and policy ambition.
“Scotland is facing a childhood emergency. The children and families we support cannot wait another 12 months for yet another fresh approach.
“They need action now.”
ALBA Party: Scotland “won’t accept” the Scottish Government’s decision to omit independence from its Programme for Government, says Ash Regan
For the second year in a row First Minister John Swinney has failed to mention independence in his Programme for Government with the document not setting out any plans to give Scots a choice on their future in the remainder of the current Parliament.
The SNP were re-elected in 2021 promising a referendum would be held during the life of the current Parliament but after the Supreme Court ruled against the Scottish Parliament’s ability to do so the Scottish Government have taken no action to find a path to giving the people of Scotland a choice on their future.
Alba’s Ash Regan wanted to see First Minister John Swinney set out the actions his Government will take to advance the case for Scottish independence in the run up to next year’s Scottish Parliament elections. But she has hit out as the Government has confirmed today that the only action it will take in the next year will be the publication of another independence paper.
The Alba MSP says that the Scottish Government’s plan for how it intends to progress the case for Scottish independence should have featured “front and centre” of John Swinney’s plans and the failure to do so is a “missed opportunity.”
Last year, in his first ever PfG as First Minister, John Swinney did not make reference to independence when he addressed parliament and in his speech today he again failed to reference any actions his Government would take to help deliver independence.
Commenting Alba Party Holyrood leader Ash Regan MSP said: “Last year the word ‘independence’ was not mentioned once in the Programme for Government statement to Parliament. Since then we have witnessed consistent polling showing that at least half the country favour independence.
“The failure to put independence front and centre of today’s Programme for Government is a wasted opportunity. The people of Scotland are now ahead of the SNP when it’s comes to independence and that is why we have seen a separation of support for independence and support for the SNP.
“Scots want to see a drive towards governing competently again and focus to be put back onto the people’s agenda of health, the economy, jobs and the protection of women and children.
“The case for independence has never been stronger, it is now vital we see support for Alba Party on the list to ensure the SNP don’t see out another term of Parliament without taking action on independence.”
RCEM: Scotland’s Programme for Government a ‘missed opportunity’ to tackle UEC crisis
After enduring another challenging winter, Scotland’s Programme for Government has failed to deliver a tangible plan to address the emergency care crisis. That’s the response from the Royal College of Emergency Medicine after the First Minister, John Swinney, delivered a speech today (6 May 2025) which laid out his government’s key pledges for the final year of the Scottish Parliament’s current term.
Reducing time patients wait for treatment by delivering more than 150,000 extra appointments and procedures, including surgeries and diagnostic tests.
Ensuring more people can see their GP and get cared for in the community – reducing pressures in hospitals
Ensuring more people can be cared for at home, reducing pressures in hospitals by expanding the number of Hospital at Home beds to at least 2,000 by December 2026.
Mr Swinney’s speech coincided with the release of new data by Public Health Scotland which revealed in March, there was an average of 1,925 people waiting to be discharged from hospital, despite being deemed medically well enough to go home.
That’s the highest number of so called ‘delayed discharges’ for the month of March since guidelines changed in 2016.
This is often caused due to a lack of social care support. Therefore, the system grinds to a halt, with patients stuck in Emergency Departments, often on trolleys in corridors, facing extreme waits because there’s no in-patient beds available.
Today’s figures, which cover March 2025, also show:
120,143 people attended a major Emergency Department in Scotland – a 17.7% increase when compared to February.
One in three patients waited four hours or more in Emergency Departments, one in 9 waited eight hours or more, and one in 23 waited 12 hours or more.
While waits have slightly improved across the board when compared to February, they are significantly higher when compared to March 2018. The numbers waiting four hours or more has increased by 158%, the numbers waiting more than eight hours by 490%, and the numbers waiting more than 12 hours by 803%.
There was a total of 60,129 days spent in hospital by people whose discharge was delayed – a 2.5% increase compared to March 2024 (58,646).
Dr Fiona Hunter, Vice President of RCEM Scotland said, “Today’s Programme for Government is a missed opportunity. It was a moment to resuscitate emergency care but instead, we have been left without a tangible plan.
“You just have to simply look at today’s figures from Public Health Scotland to see the level of pressure our Emergency Departments our under – thousands of people waiting extreme and dangerous long stays, often on trolleys, in corridors, because there are no available beds on wards for them to move to.
“And let’s be clear – these aren’t just numbers, data, statistics. Each is a loved family member – mums, dads, grandparents, sons, daughters.
“While we welcome the government’s commitment to improving access to GPs, this can’t be done in isolation. Equal attention is needed at the ‘back door’ of hospitals – ensuring patients who are well enough to be discharged, can be, with the appropriate social care in place.
“Only then will our patients be able to move as they should throughout the hospital system, rather than experiencing significant delays.
“Our members and their colleagues will be deeply disappointed after enduring another challenging winter. It’s left us asking, when will Emergency Care become a political priority?”
Greens hail peak rail fares U-turn and call for cheaper buses
The Scottish Greens have welcomed the Scottish Government’s decision to finally take forward the Green policy of scrapping peak rail fares for good, and have called for action to make public transport cheaper across the board.
The policy was initially secured by the Scottish Greens through budget negotiations in 2023 before being dropped by the SNP in 2024.
In the 2025 budget the Greens secured a £2 bus fare cap that the Government has committed to rolling out as a regional pilot project by January 2026.
Speaking in the Scottish Government’s Programme for Government 2025-26 debate today at Holyrood, the party’s co-leader, Lorna Slater, said: “I am delighted that the Government has finally committed to the Scottish Green policy of ending peak rail fares for good.
“Earlier this year, they said they wouldn’t do it. They even voted against Green calls to do it. We’ve finally got there.
“More brave decisions are needed to make all public transport cheaper.
“The Scottish Government agreed to Green proposals for a £2 bus cap, only as a local pilot from January 2026, but people all across Scotland need cheaper buses now.
“Will the First Minister avoid the hesitation he showed over peak rail fares, get on with delivering another great Green idea: capping the price of bus fares in Scotland for good?”
Independent Age: No New Support for Older People in Poverty
Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Agesaid: “Today’s Programme for Government announced no new support for older people in poverty.
“Making sure every pensioner in Scotland receives some winter heating support is very welcome, particularly for older people on lower incomes. However, there is more the Scottish Government should do to reduce the growing number of pensioners in poverty.
“With 156,000 older people across Scotland currently living in poverty – an increase of 30% the last decade – the need for a clear strategy to address this is more urgent that ever. Our polling shows that people of all ages in Scotland agree that a strategy to reduce pensioner poverty should be created – with 9 in 10 supporting the idea. Without one, people facing financial hardship in later life will continue to struggle to maintain even the most basic quality of life.
“Poverty at any age is extremely damaging to both mental and physical wellbeing. Our 2025 Index showed that nearly one in five (19%) older people in Scotland have a household income of under £15,000 a year and almost one in three (29%) older people in Scotland have skipped meals in the last 12 months.
“In a compassionate and wealthy society, this shouldn’t be the case. Both the UK and Scottish Governments need to take action. If the Scottish Government wants to make Scotland the best place to grow old and tackle the injustice of pensioner poverty it is essential they have a plan for doing so.”
REFORM UK’s Sarah Pochin won the Runcorn and Helsby by-election by just SIX votes following a knife-edge recount this morning.
Former Conservative councillor Sarah Pochin overturned a 14,696 Labour majority to take the Cheshire seat for Reform UK, originally called the Brexit Party when it was founded in 2018.
Reform UK now has five MPs and the party has made sweeping gains across England in the council elections, winning more seats than any other party in results declared so far.
The Runcorn by-election was called following the conviction of former Labour MP Mike Amesbury, who was captured on film assaulting a constituent.
Petroineos, the company which runs the refinery, has informed staff that all oil refining work at Grangemouth had ended.
Workers were told by email yesterday: ‘With the shutdown of CDU2 today, Grangemouth Refinery will cease processing crude oil and the era of refining at Grangemouth comes to an end.’
The news of the final confirmation of the site has come as a hammer blow to staff and is the latest nail in the coffin of Scottish industry.
Reacting to the news that oil refining at Grangemouth has ended Alba Party Leader Kenny MacAskill said:“This is a dark day for Scotland and a betrayal of the workforce by Labour. At the election, they promised to save the refinery but have gone back on that pledge whilst at the same saving British Steel in Scunthorpe.
“Labour have cynically pocketed the votes of the workers and then abandoned them once elected. This is a betrayal for which Labour will never be forgiven.
“Scotland is now the only major oil producing nation in the world not to have its own refining capacity.
“The skills of the workforce have been sacrificed and Grangemouth reduced to an import export terminal.
“This is the cost of the Union and demonstrates how Scotland is powerless without Independence.
“Independence is required so we can protect what is left of Scottish industry and put Scottish workers first.”
The UK Labour Westminster government and the SNP Holyrood government have yet to make an official statement on the end of oil refining at Grangemouth.
The Presiding Officer visited Mayfield and Easthouses in Lothian yesterday to meet local people to talk about their Scottish Parliament.
The Lothian visit is the last in a series of eight events across Scotland to mark the Scottish Parliament’s 25th anniversary.
The aim of event is to hear people’s reflections on the Parliament and to understand more about what they want from their Parliament in the future. It was also an opportunity to reflect on 25 years of devolution and the impact of the Parliament on local communities.
Yesterday’s event began with a visit to the Mayfield and Easthouses Development Trust. The Presiding Officer, joined by constituency and regional MSPs from the Lothian Region, met with service users, volunteers and staff in their pavilion and café in Mayfield Public Park before visiting their Hub and Pantry.
Following this there was an event at Mayfield and Easthouses Church Hall where the politicians met representatives from local groups and projects.
The visit ended in Mayfield Community Club where Nourish Scotland hosted a public diner lunch.
Speaking ahead of the visit, Presiding Officer, the Rt Hon Alison Johnstone MSP said: “I’m looking forward to meeting local residents and listening to their thoughts on the Parliament and their hopes for its future.
“We have met people across the entire country to commemorate the Parliament’s 25th anniversary, and visited inspirational community projects, from Shetland to Hawick.
“I’m pleased we’ve partnered with local groups on this visit to Mayfield and Easthouses, and I’m sure we’ll have great discussions about how the Parliament can best represent people in Lothian. I’m also excited to hear more about the various community projects that are taking place here.
“Scotland’s Parliament belongs to its people and it’s vital their voices are heard, to help shape the Parliament’s future.”
Sharon Hill from Mayfield and Easthouses Development Trust said: “We are delighted to be facilitating the visit today.
“Being chosen for the final visit has been lovely for us. We are proud of the community and people we serve in Mayfield and Easthouses and are keen to engage with the Parliament to show them what is being done here and how we are fostering a sense of community pride through that work.
“This is a fantastic opportunity for our community and all the groups and organisations that are active within it to show what they do and how they can be best supported to be even better.”
Abigail McCall, Policy Officer at Nourish Scotland said: “We’re excited to host and join a lunch in Lothian. Food is always a good way to get people talking about the things that matter most to our everyday lives.
“For the past year, we’ve been travelling around Scotland talking with different communities about creating infrastructure for food – public diners – that mean our right to food can be protected and that people can have a hand in shaping their food environment.
“This public diner lunch is a great way to facilitate discussion around issues, but also potential solutions in the local area.”
Recently, John Swinney announced that he would bring the 2025-26 Programme for Government to 6th May, which will situate the PfG exactly one year before the Holyrood election in May 2026 ((writes Fraser of Allander Institute’s MAIRI SPOWAGE)..
Normally, the Programme for Government is the annual opportunity for the Scottish Government to set out its policy priorities and the legislation it plans to pass in the coming year. This is usually published just after the return from the Summer recess, setting out both political statements and policy priorities but also (importantly) the legislation that the Government wishes to progress during the parliamentary year.
The First Minister has said he is bringing the statement forward to “enable a full year of delivery” before the Holyrood election.
The PfG that was set out in September was the first opportunity for John Swinney and Kate Forbes to set out their agenda since taking the leadership in Spring 2024. Our thoughts at the time are here – but broadly we welcomed the clear statement of the government’s prioritisation and what they would put first (tackling child poverty) above all else. Whether the government’s spending and policy decisions have actually been consistent with that may be a matter for debate.
Given the relatively short time that have elapsed since John Swinney’s first PfG as FM, there will be significant scrutiny of the document published on the 6th May – how have the policy priorities changed? What was promised in September which has now been sidelined in the run up to the election? And, given the limited legislative time left between now and March, what legislation has a realistic chance of making it through before the parliamentary session comes to an end.
Look out for our analysis on 6th May on the PfG!
Further fiscal fun in May
The PfG won’t be the last opportunity fo the Scottish Government to set out policy priorities.
On the fiscal side, the SG will publish the Medium-Term financial Strategy (MTFS) on 29th May. This will be accompanied by new forecasts from the Scottish Fiscal Commission, and is the SFC’s opportunity to produce forecasts that are consistent with the OBR forecasts that were produced alongside the Spring Statement in March.
In terms of the forecasts, we can expect (probably) that the view of the SFC on growth prospects for this year are likely to have worsened. The OBR in their forecasts in March cut growth for 2025 from 2% to 1%, and a number of independent forecasters have cut the forecast for the UK significantly. This is because of the impact of global uncertainty and turmoil, but also due to policy decisions by the UK Government such as the employer national Insurance increase.
The MTFS itself aims to focus on the longer-term sustainability of Scotland’s public finances and support a strategic approach to financial planning. The publication of this document alongside the Spring forecast is supposed to support the year round budgeting process in Holyrood, allowing the pre-budget scrutiny of committees in the Summer and Autumn to be based on up to date and meaningful information.
However, the MTFS to date has not really been successful in achieving these aims. It appears to be a strategic document, but has more often than not felt like a political statement, more aimed at managing expectations of what might be funded than in setting out a credible central scenario.
One of the issues with the MTFS is that there is no detail on how the spending projections contained within it are arrived at, and therefore it is impossible to scrutinise the priority of each and how realistic they are. When we come to try and understand the net fiscal position, we are often unable to reconcile the MTFS with any in-year spending changes. This throws into question its usefulness as a document. It is also why it has largely been abandoned by those scrutinising the Scottish Government – especially when it has not always been published when it was due.
See our commentary on the last version of this published in May 2023.
In addition to the MTFS, The Scottish Government said it will publish a Fiscal Sustainability Delivery Plan alongside the MTFS 2025 for the first time. The Government say this will support fiscal transparency and a foundation for longer-term financial planning, and announced this in the Autumn in the run up to a debate about fiscal sustainability in the Scottish Parliament.
The MTFS is supposed to address fiscal sustainability, and the fact that the Scottish Government is creating a separate one casts doubt on the usefulness and the seriousness with which the SG treats the MTFS – and therefore how seriously we should treat it.
However, let’s see what it contains, and we will analyse the contents in detail when it is produced on 29th May. We would expect that it will say something about pay and the size and shape of the public sector in Scotland. Given that around half of Scottish Government current spending is on pay, any long-term-focussed document that does not have a specific view on the size of employment and rate of growth in payroll over a number of years cannot be regarded as credible.
We understand there are also other documents that are likely to come over the summer, such as a plan for Public Service Reform, and a plan for a shift to prevention, particularly on public health.
The issues on pay and public sector size are very relevant to Public Service Reform as well as fiscal sustainability, as it is likely that we will have to drive reform which delivers more productive public services with fewer people than work in the public sector today.
