Prime Minister Boris Johnson gave a press conference at COP26 yesterday:
Before heading back to London last week, I warned of the need to guard against false optimism and to not allow ourselves to think that the progress we need would be easy.
And today, having spoken with the Secretary-General, and having met negotiating teams, heads of delegations and others here at COP, it’s clear that after the surge of really positive, game-changing announcements last week on methane, on finance, on forests in particular, we are now firmly in the hard yards, the nuts and bolts of international climate diplomacy.
And the negotiations are getting tough.
And with just a few days remaining, there is still a huge amount to do.
We’ve made a difference, we hope, for our planet and our people.
We’ve moved the ball a long way down the pitch.
But now we’re stuck in a bit of a rolling maul to mix my football and rugby metaphors.
The line is in sight, but if we’re going to get there, we need a determined push to get us there.
We need to be more ambitious with better, more credible plans for implementation.
We have to bridge the gap between where we are and where we need to be if we’re going to cut emissions in half by 2030.
And we need to pull out all the stops if we’re going to do what we came here to do and that’s keep 1.5 alive and make Paris the success the world needs it to be.
Because while that 2016 agreement was a significant moment in the fight against climate change, it was ultimately a pledge of action still to come.
And it is very frustrating to see countries that have spent six years conspicuously patting themselves on the back for signing that promissory note in Paris quietly edging towards default now that vulnerable nations and future generations are demanding payment here in Glasgow.
And there really is no excuse because we know what is at stake here. We’ve been hearing it all week.
We heard it from the President of Palau, Surangel Whipps Jr, who told me he spent five days travelling seven and a half thousand miles across nine time zones to make sure the voice of his people was heard.
The least we can do is pay attention when he says that if the big economies don’t do more we “might as well bomb” his islands.
We heard it from Simon Kofe, from the government of Tuvalu, who spoke to us not from a podium in a cosy conference room but knee-deep in a steadily rising Pacific Ocean.
And we heard it from Prime Minister Mia Mottley of Barbados who so moved the opening ceremony when she warned that we are digging our own graves and asked when are the leaders finally going to lead.
And if you stood and applauded her, then you cannot now sit on your hands as the world asks you to act.
Because the world knows the mess our planet is in. The world has heard leaders from every country, every continent stand here and acknowledge the need for action. And the world will find it absolutely incomprehensible if we fail to deliver that.
The backlash from our people will be immense and it will be long-lasting. And frankly, we will deserve their criticism and opprobrium.
Because we know what needs to be done. We agree on what needs to be done. We just need the courage to get on and do it.
So this is the time for everyone to come together and show the determination needed to power on through the blockages.
To look at the science with dispassionate eyes and think about how we can compromise, how we can be flexible to meet the needs of the planet.
And for world leaders who are back in their capitals to pick up the phone to their teams here and give them the negotiating margin, give them the space they need in which to manoeuvre so we can get this done.
Here in Glasgow, the world is closer than it has ever been to signalling the beginning of the end of anthropogenic climate change.
It’s the greatest gift we can possibly bestow on our children and grandchildren and generations unborn.
It’s now within reach, at COP26 in these final days, we just need to reach out together and grasp it.
And so my question for my fellow world leaders this afternoon as we enter the last hours of COP is will you help us do that? Will you help us grasp that opportunity or will you stand in the way?
FIRST MINISTER Nicola Sturgeon has clearly enjoyed rubbing shoulders with world leaders on the international stage during COP26.
It’s quite possible there may be some new global ambasadorial role when she decides it’s time to move on, but in the meantime Ms Sturgeon is urging world leaders to go further.
Responding to the publication of the first draft agreement at the COP26 summit in Glasgow, First Minister Nicola Sturgeon said: “The draft cover text is a start, but it must be the floor – not the ceiling. The imperative for leaders now – on climate finance and the pathway to 1.5 degrees – is to negotiate the ambition significantly upwards.
“It must not be watered down. It is vital that the world emerges from COP 26 with 1.5 degrees well and truly alive, and closing the finance gap is key to that. It is also a moral obligation developed countries owe to those less developed and most vulnerable to the impact of climate change.
“I welcome the Prime Minister’s return to Glasgow today, and urge him to stay for as long as necessary until a deal is done. As has been the case all along, I will do everything I can to assist and support these efforts.
“This is a moment that future generations will judge. Either we will be judged to have failed in the face of climate catastrophe or, alternatively, to have taken a decisive step towards sustainability for our planet.
“It must be the latter. In the words of a Marshall Islands minister I met yesterday – “for countries like mine, we don’t have many COPs left – the time to act is now.””
Almost 100,000 people in Scotland have reported that they’re suffering with long Covid but it has taken until today (Tuesday 9 November) for the Scottish Parliament to debate this important issue.
I led this debate in Parliament yesterday because no matter how much campaigners and MSPs raise the issue, the SNP Health Secretary is just not listening.
It is shameful that it has taken an opposition party debate for the plight of long Covid sufferers to be heard in Parliament.
The SNP/Green Government’s action plan on long Covid is totally unfit for the scale of this challenge. Many Scots would be better off moving to England where there are well-established clinics and a care pathway.
We need to do much more to help long Covid sufferers. That is why I am calling on the SNP/Green Government to:
Have specialist long Covid clinics in every health board
Train more long Covid community nurses to offer in-home support
Give everyone who needs it access to physiotherapy and rehab treatment
Make sure long Covid sufferers are not penalised financially because they are absent from work for longer periods
You can join me in calling for action from the Scottish Government by signing up to my plan for long Covid here:
Prime Minister Boris Johnson will call on ministers and negotiators to come together and bridge the gaps remaining to reach consensus at COP26, as he travels to Glasgow in the final days of the climate summit today (Wednesday 10 November).
The COP26 Glasgow visit will come as welcome diversion for Mr Johnson, who has been heavily criticised for his handling of Tory Party sleaze and corruption allegations over the last week.
Negotiators from 197 parties are in intensive talks to reach agreement on a range of key issues, including a common time frame for national commitments on emissions reductions and agreed methodology for countries to report on their climate action. These important technical points will help to ensure that commitments are translated into action.
They are also working to agree progress on finance for nations most vulnerable to climate change and to address the issue of loss and damage in developing countries.
The negotiations run alongside a series of government and private sector commitments on coal, cars, cash and trees made by throughout the two weeks of COP26 under the UK’s presidency, with the goal of keeping the 1.5C target alive.
Prime Minister Boris Johnson said: “Negotiating teams are doing the hard yards in these final days of COP26 to turn promises into action on climate change.
“There’s still much to do. Today I’ll be meeting with ministers and negotiators to hear about where progress has been made and where the gaps must be bridged.
“This is bigger than any one country and it is time for nations to put aside differences and come together for our planet and our people.
“We need to pull out all the stops if we’re going to keep 1.5C within our grasp.”
The Prime Minister will be joined by the UN Secretary General Antonio Guterres in Glasgow and will meet with representatives from the heads of delegations’ negotiating teams and the observer groups, which represent a cross-section of civil society.
The third Diwali in the series of Diwalis started by the Scotland Chapter of Hindu Forum Britain was celebrated in the UK Government Hub in Edinburgh on 1st November 2021 (writes Ms RICHA SINHA).
The first Diwali was celebrated by the Hindu Forum Britain in the Scottish Parliament in 2019 and the second one was a Virtual Diwali Hosted Online due to Covid-19.
With a view to supporting COP26, , which started on the same day on 1st Nov 2021, HFB Scotland Chapter celebrated Eco-Diwali, highlighting through Diwali event, the salience that Hindu ethos places on respecting and protecting the environment.
The Eco-Diwali was celebrated at Queen Elizabeth house, sponsored by Ministers of the Office of the Secretary of State for Scotland.
As the UK secretary of state for Scotland was busy with Cop26 conference the event was hosted by Hon Lord Offord of Garvel, Parliamentary Under Secretary of State.
The event was attended by numerous faith Leaders and Cabinet Secretary for the Constitution, External Affairs and Culture Mr Angus Robertson and MSPs including Alex Cole-Hamilton and Pam Gosal.
The programme commenced with the Ceremonial Eco Lamp Lighting ceremony by the Guests
Mr Puneet Dwivedi, Vice president HFB with the help of his Team of Volunteers organized the most colourful celebrations and with sacred chants, traditional Indian dances, followed by speeches by dignitaries.
There were slide shows highlight community works by the temples in Scotland, spotlighting the environmental action being undertaken by the Hindu temples and organisations.
Puneet Dwivedi welcomed guests byhighlighting the contribution of Scottish Hindu Community during COVID crisis be it amazing frontline workers like doctors and nurses to the temples who opened the kitchen to feed the vulnerable and support the key workers.
He explained how Hindu philosophy consists of eco-friendly principles and practices and has been passed down through generations.
Puneet also highlighted small and sustainable steps taken by Hindu community to protect mother earth e.g. HFB officially launched its Hindu Environmental Task Force (HETF) on 18th September to raise awareness and to support its member organisations to become increasingly more environmental; ISKCON Scotland launched the Cow care project, where Cows and Bulls will be cared for till their natural death.
This project serve as an example of sustainable agriculture by working with bulls, and most temples in Scotland signed the Environmental Charter.
Lord Offord gave the beautiful message of hope with the vaccine of light driving away the disease of darkness.
He was happy to greet his colleagues from Holyrood and pledged towards one common goal which was betterment of people of every political stride and every religion.
He had visited Mumbai recently and recollected his time when tattoo met Bollywood with dancers mixing up and thanked Hindu Forum Britain for bringing the event to Queen Elizabeth House and wished them well in future endeavours.
Cabinet Secretary Mr Angus Robertson started by passing his best wishes from Nicola sturgeon and mentioned how he attended every single Diwali Reception when in Westminster.
He added that the Hindu traditions have deep reverence to the natural world and reminds us our actions have consequences. He Congratulated Hindu Forum Britain’s Hindu environmental task forces and said that the government was indebted for the work done by the Hindu community who have so many in the vital front line services.
Sister Jayanti From BrahmaKumari made reference to Goddess of wealth Lakshmi, and said the word comes from ‘Lakshan’ which means virtues and reminded us of the wealth of virtues.
As much as we clean home we should clean our Inner beings and environment of pollution so wealth of virtues can come to our lives to create a better world. She ended her speech with ‘Om Shanti’ which means lets there be world peace.
Lord Wallace, moderator of the Church of Scotland spoke of the Vigil that took place in George Square and common hope and congratulated all faith organisations to come together to spread the message of hope.
Maulana Imam Syed Razazvi thanked HFB president Mrs Trupti Patel and Hindu community and reiterated that we are friends and we can always rely on each other.
The program was interspersed by elegant and graceful Indian classical Dance performances by Theiya Arts, where the performers (Ms Himadri Madan, Ms Nandini Manjunath, Ms Karen Watts & Ms Tharanga Wickramsinghe) presented an Indian and Sri Lankan classical forms dedicated to mother earth and our environment: this dance form has evolved from the natural world around us, as a way to embody nature and our environment and incorporate it into our being and storytelling.
HFB president Ms Trupti Patel, sent video message as she couldn’t attend the event. In her video message she highlighted the connection between celtic people and vedic people and how Scottish Hindu Community can work together by taking steps to preserve our environment.
Mr Mithilesh Vaddiparthi, who holds a guinness world records in singing sung the beautiful devotional song “Vaishnav Jan To..” and ended his singing with traditional rendition and the foot tapping “Jai ho “
MSP Alex-Cole Hamilton, who has become quite the favourite of the Hindu Diaspora in Edinburgh, with his past heartfelt speeches lured the audience with his Indian greeting of ‘Namaste’ ‘Om Shanti ‘ and Jai Shri Ram. He highlighted that Diwali is also time to triumph of light over ignorance over climate change.
Pam Gosal in her speech mentioned how the first 2 Indian Scottish Ministers joining the Scottish Parliament and the First Hindu Minister in Sandesh Gulhane has added to the Diversity in Parliament.
Finally HFB Scotland Chapter Diwali brochures were launched by the Minsiters, Cabinet Secreteary, MSP & Armed forces officials
The vote of Thanks was given by Richa Sinha who spoke about what it means for her to be a Scottish Hindu and thanked the leadership in creating an atmosphere where she could take pride in her Scottish Hindu Identity and contribute to the diversity of this great nation.
Hindu Forum Britain are proud to carry out the 3rd consecutive Diwali Celebration and hope the tradition will continue in the years to come and bring the Diverse Scottish Hindu community together with all faiths working together for the betterment of the nation.
This Diwali reception by Hindus in Scotland hosted by HFB Scotland is the only event that encompasses and invites members and peers from all political parties to share the colourful and wondrous Diwali celebration with Hindu community leaders, religious leaders and leading figures from businesses across Britain.
The spirit of hope, friendship, religious tolerance peace and harmony that Deepavali embodies is really quite profound and resonates with people of all faiths.
An inquiry has been launched into the health and wellbeing of children and young people by a Scottish Parliament Committee.
The Health, Social Care and Sport Committee is seeking to find out the key issues around health and wellbeing for children and young people in Scotland. They will investigate what the challenges and opportunities are for improving their health and wellbeing, and how addressing poverty can lead to improved health and social care outcomes.
The inquiry will focus on 4 key areas:
• Child poverty (including the Scottish Government’s current child poverty delivery plan), inequality and adverse childhood experiences; • Issues affecting care experienced young people; • Mental health, access to Child and Adult Mental Health Services (CAMHS) and the importance of early intervention; • Health and wellbeing in schools
Speaking as the inquiry launched, Gillian Martin MSP, Convener of the Health, Social Care and Sport Committee, said: “There are a whole host of factors which impact the health and wellbeing of our children and young people, and our Committee will consider these in detail.
“The physical and mental toll of the pandemic on children and young people cannot be overstated and we know that prior to this pandemic there was already a high and increasing demand for youth mental health services in Scotland.
“As we emerge from the pandemic and with the Scottish Government’s current child poverty delivery plan due to run until 2022, our inquiry comes at a pivotal time. We are determined to find out how children and young people can best be supported to live healthy and flourishing lives.”
Devolved governments, regions and cities from across the globe will today send a strong message to world leaders by committing to achieve Net Zero by 2050.
First Minister Nicola Sturgeon will tell the General Assembly of the Under2 Coalition that by signing up to the pledge in a new memorandum of understanding, they will be signalling the level of ambition required of COP26 to keep global warming to 1.5°C.
Promising Scotland’s continued support for the coalition, which has 260 members representing 1.75 billion people and 50% of the global economy, the First Minister said: “Everyone knows what is required for this summit to be a success.
“COP26 must secure the commitments that will limit global warming to 1.5°C or, at the very least, the near term commitments that will keep that objective alive.
“It must also deliver a fair financial settlement for developing countries, one which takes account of the loss and damage caused by climate change.
“There’s no doubt that over the past week we have seen progress. But it’s also clear that we’ve not yet seen enough.
“Over the coming days, world leaders – and the biggest emitters and potential funders especially – must step up. That is essential.
“But governments like ours must continue to play our part because, while none of us are at the negotiating table, our influence and our example will be crucial in building the momentum. That’s why we are placing so much value on our coalition’s revised memorandum of understanding.
“As we move further into this decisive decade, our coalition must be ready for the challenges ahead. As European co-chair, that will be my focus.
“Scotland is determined to play its part in ensuring the long-term strength of this coalition because we recognise its enormous value and its potential to achieve even more.”
The 2021 Under2 Coalition Memorandum of Understanding will be signed by delegates during today’s General Assembly at Strathclyde University.
Foysol Choudhury MSP has called on the Scottish Government to be ambitious in its approach to Social Security.
During a Holyrood debate ‘’Accessing Scottish Social Security Benefits’’, he called for the rise of the Scottish Child Payment to £40 a week in 2022/23, given that over a quarter of Scottish children now live in poverty in Scotland. He also called for a raise to the 20-metre rule. Currently, if you can walk one step over 20 metres you cannot access the enhanced rate of mobility support.
MS Society Scotland has also called for the extension of the rule say that it has acted as a barrier to people with MS accessing social security benefits.
Mr Choudhury asked if the Government was prepared to change the eligibility criteria.
Commenting after the debate, Foysol Choudhury MSP said: “Scotland needs to be ambitious. The devolution of welfare powers gives us the chance to shape what kind of society do we want to be.
‘’The chance to restore dignity and respect to the heart of the social security system, yet now we know that the delay of the SNP has only halted the progress and affects the potential benefit takeup for Scotland.’’
Foysol Choudhury’s speech in full:
Thank you Presiding Officer and it gives me great pleasure to speak in today’s debate.
Presiding Officer, the devolution of welfare powers gives us the chance to shape what kind of society do we want to be. The chance to restore dignity and respect to the heart of the social security system, yet now we know that the delay of the SNP has only halted the progress and affects the potential benefit takeup for Scotland.
There can be no doubt that Covid-19 has hit low-income families and the most vulnerable disproportionately hard, deepening poverty and dragging more families into financial insecurity. Today half of the families in poverty have a member who is a disabled person and even before the pandemic, child poverty rates were high and projected to rise further.
The over next decade, Scotland must be bold, must be willing to use the full levers of powers to transform if we are to meet our targets on child poverty and live up to our ambitions of being a nation that respects, protects and fulfils human rights and where we can all achieve our potential.
We can start of course with the Scottish Child payment, something that has continued to be on the minds of the chamber thanks to the efforts of my friend and colleague, Pam Duncan Glancy.
Just over a quarter of Scottish children live in poverty in Scotland. 260,000 children, right now in 2021. That’s something that should shame us all. We talk a lot, but this Parliament needs to seriously get ambitious for Scotland’s children.
Let’s raise the Scottish Child Payment to £40 a week in 2022/23. Let’s ensure that every kid in Scotland have a good quality of life, without the people that love them having to worry about where the money is coming from.
Even with the full rollout, the Scottish Government is likely to miss their interim child poverty target by six percentage points – leaving an extra 50,000 children in poverty. From the end of the furlough, the cruel cut to Universal Credit thanks to the Tories, and the Scottish Government delays to rolling out and increasing the Child Payment have squeezed Scottish family incomes when they are already having to deal with the economic shocks dealt by the pandemic. We can and must do better.
Presiding Officer, for those with lifelong conditions, they look to this chamber and ask, ‘how are you going to defend me’?
Those with MS for example are looking for hope. The MS Society, Labour and many organisations are all calling for the removal of the 20-metre rule from the proposed Adult Disability Payment. The Scottish Government are replacing PIP with ADP and as part of this new benefit, the Government has largely replicated the PIP eligibility criteria, including retaining the 20-metre rule as part of the assessment criteria for ADP.
A Citizens Advice Scotland Survey in 2021 found that a majority of Bureaux advisers working to help people with disabilities navigate the social security system agree that the 20 metre rule should be extended to 50 metres.
Presiding Officer, for those who don’t know that the 20-metre rule is, it was introduced as part of the eligibility criteria to access Personal Independence Payment. Under the rule, if you can walk one step over 20 metres you cannot access the enhanced rate of mobility support.
Fatigue, both physical and mental is one of the most debilitating symptoms of MS and other neurological conditions. The rule does not consider the severity of fatigue many will experience after walking 20 metres.
So, I would be grateful if the Government can respond to concerns raised by those who have MS. Is the Government prepared to change the eligibility criteria. Because those claiming disability payments deserve dignity and respect.
Presiding Officer, the social security system we shape in this Parliament must ensure no one is held back by poverty and inequality. Scottish Labour would use all the powers we have here in Scotland to make sure that people have the support they need to participate fully in society.
The social security system Labour would build to secure the wellbeing and human rights of everyone and seek to guarantee a Minimum Income Standard that no one would fall below. Having a strong, adequate and automated SSS will lead to higher levels of takeup.
Scottish Labour will build a social security system based on the principles of Adequacy, Respect and Simplicity. Those are the principles that will guide me as we come together to shape our Social security for Scotland to ensure it works for all.
Landmark climate agreement – but Australia, India, the USA and Poland don’t sign up
The end of coal – the single biggest contributor to climate change – is in sight thanks to the UK securing a 190-strong coalition of countries and organisations at COP26, with countries such as Poland, Vietnam, Egypt, Chile and Morocco announcing clear commitments to phase out coal power.
Thanks to a package of support from the UK and our international partners, a 190-strong coalition has today agreed to both phase out coal power and end support for new coal power plants
the UK’s campaign sees major banks commit to end financing coal, on top of China, Japan, Korea and the G20 commitments to end overseas finance for coal generation by the end of 2021, effectively ending all public financing of new unabated coal power
agreed under the UK’s COP26 Presidency, countries pledge to accelerate coal phase out and rapidly scale up deployment of clean power generation, marking a momentous turning point in the global clean energy transition
Wednesday’s commitments, brought together through UK-led efforts including the new ‘Global Coal to Clean Power Transition Statement’, encompass developed and developing countries, (some- Ed.)major coal users and climate vulnerable countries.
This includes 18 countries committing for the first time to phase out and not build or invest in new coal power, including Poland, Vietnam, and Chile, marking a milestone moment at COP26 in the global clean energy transition.
This statement, launched yesterday, commits nations across the world to:
end all investment in new coal power generation domestically and internationally
rapidly scale up deployment of clean power generation
phase out coal power in economies in the 2030s for major economies and 2040s for the rest of the world
make a just transition away from coal power in a way that benefits workers and communities
This is on top of China, Japan and Korea, the three largest public financiers of coal, committing to end overseas finance for coal generation by the end of 2021, announced in the last year during the UK’s incoming COP26 Presidency.
Agreements at the G7, G20 and OECD to end public international coal finance send a strong signal that the world economy is shifting to renewables. This could end over 40GW of coal across 20 countries, equivalent to over half of the UK’s electricity generating capacity.
Business & Energy Secretary Kwasi Kwarteng said: “Today marks a milestone moment in our global efforts to tackle climate change as nations from all corners of the world unite in Glasgow to declare that coal has no part to play in our future power generation.
“Spearheaded by the UK’s COP26 Presidency, today’s ambitious commitments made by our international partners demonstrate that the end of coal is in sight. The world is moving in the right direction, standing ready to seal coal’s fate and embrace the environmental and economic benefits of building a future that is powered by clean energy.”
To meet the goals of the Paris Agreement to limit global temperature rises to 1.5 degrees, the global transition to clean power needs to progress 4 to 6 times faster than at present. With coal being the single largest contributor to climate change, phasing it out and delivering a rapid, inclusive transition to clean energy is essential if we are to keep 1.5 degrees alive.
Twenty-eight new members have today signed up to the world’s largest alliance on phasing out coal, the Powering Past Coal Alliance launched and co-chaired by the UK. Chile, Singapore and Durban have today joined over 150 countries, sub-nationals and businesses, including finance partners NatWest, Lloyds Banking, HSBC and Export Development Canada. This accounts for over $17 trillion assets now committed to PPCA coal phase out goals.
There has also been a 76% cut in the number of new coal plants planned globally over the last 6 years which means the cancellation of 1000GW of new coal plants since the Paris Agreement, roughly equivalent to around 10 times the UK’s total peak generating capacity.
Today’s global agreement to move away from coal to clean power has been made possible thanks to a number of other UK-convened initiatives, including:
No new coal power
The end of new coal power construction is in sight. The launch of the No New Coal Power compact by 6 countries at the UN High Level Dialogue in September, followed by the commitments in the Global Coal to Clean Power Transition Statement. This means that by the end of this year, all new public finance for unabated coal power plants will have stopped, with investments increasingly focused instead on accelerating the transition to clean energy sources such as wind and solar power, now cheaper than coal generation in most countries. This accelerates the growing global momentum to end new coal power, demonstrated by the 76% collapse in the global pipeline of proposed coal power plants since the Paris Agreement in 2015.
Supporting emerging economies
In addition, major emerging economies have announced plans to accelerate a just transition from coal to clean power. This includes a South Africa Just Energy Transition Partnership worth $8.5 billion, as well as Indonesia and the Philippines agreeing a ground breaking new partnership with the Asian Development Bank to support the early retirement of existing coal plants. Further financing announcements are expected today at COP26.
Supporting coal-intensive economies
Countries with significant coal power generation and mining face large social and financial challenges in the transition from coal. The UK’s COP26 Energy Transition Council (ETC) mobilises and coordinates the assistance required to enable coal intensive economies to equitably transition from coal, bringing together 20 governments and over 15 international institutions to accelerate the transition from coal to clean power as part of a green economic recovery.
For example, the Energy Transition Council’s Rapid Response Facility delivers fast-acting technical, regulatory and commercial assistance to countries and has already responded to 24 requests in a range of areas, including energy efficiency in the Philippines and grid management in Egypt.
Ensuring a just transition
Today the UK government has also launched a new International Just Transition Declaration, ensuring the move away from coal high carbon industries results in a sustainable, green and fair future, and one that creates high quality new jobs and champions local social dialogue in developing and emerging economies. Coordinated by the UK government, so far, 12 countries have signed as well as the UK and EU Commission, covering a broad spectrum of the world’s donor funding, now driving towards a just transition for communities around the world.
Clean Growth, Energy and Climate Change Minster Greg Hands said: “As the host of COP26 and through committing to phasing out coal by 2024 and the UK’s global leadership has sent a clear signal across the world that clean energy is the way forward.
“By continuing to drive forward clean, green innovations at home and abroad, I look forward to stepping into this new chapter, united with the rest of the world in our efforts to consign coal to the history books, as we build back greener.”
FCDO Minister for Africa, Vicky Ford said: “A just and inclusive transition to clean energy is a win-win for the UK and Africa. Phasing out coal is a central objective of the UK’s COP Presidency and will support a cleaner, greener future for British people while creating hundreds of thousands of green jobs across the developing world.
“This new funding will transform the support on offer for African countries transitioning to renewable energy. The Africa Regional Climate and Nature Programme will support green electricity networks across Africa, benefitting more than 4 million people, and the Transforming Energy Access platform will see 25 million more people across the developing world access clean energy.”
The UK is already delivering many of the most ambitious clean power commitments among the world’s largest economies, committing to phase out coal power completely by 2024, driving forward renewable power generation with a decarbonised power system by 2035, and demonstrating that tackling climate change does not need to be at the expense of a growing economy.
Between 1990 and 2019, the UK’s economy grew by 78% while carbon emissions fell by 44%, the fastest reduction in the G7 – coal power makes up less than 2% of power generation compared to 40% almost a decade ago.
These achievements follow the publication of the UK’s landmark Net Zero Strategy last month, which outlines measures to support businesses and consumers to transition to clean energy, while supporting hundreds of thousands of well-paid jobs and leveraging up to £90 billion of private investment by 2030.
Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All and Co-Chair of UN-Energy, said: “Energy Day at COP 26 is an important milestone for building momentum on Sustainable Development Goal 7 and the just, equitable clean energy transitions it can support.
“We are the architects of a sustainable future for all. Today I call on all governments to raise the level of ambition necessary to fill the financing gaps and to ensure an energy future that truly leaves no one behind.”
The Honourable Steven Guilbeault, Minister of Environment and Climate Change in Canada and co-chair of the Powering Past Coal Alliance, said: “It is imperative that we phase out coal-fired electricity as a critical step to keep global temperatures from rising above 1.5ºC and prevent the most severe impacts of climate change.
“In four years, the Powering Past Coal Alliance has united a diverse and growing number of highly ambitious members, all committed to a clean energy transition that will make coal a relic of the past.
“Whether sharing solutions or providing financial support to developing countries to help them succeed, Alliance members are driving change through this global collaboration.”
Secretary of State for Scotland, Alister Jack, said: “As one of the first countries to commit to ending coal power, the UK is leading the world in moving away from fossil fuels and it’s fantastic to see so many other countries making that commitment at COP26 in Glasgow.
“Scotland has a massive part to play in the transition to clean, green energy. On offshore wind, for which Scotland has huge potential, our commitment is to quadruple capacity. Today’s news signals tremendous progress – we must continue to move forward.”
Sharan Burrow, General Secretary of the International Trade Union Confederation, said: “Before 2030 we need Just Transition plans in place in every country with decent and quality jobs at the heart.
“Workers and their unions are needed at the table through a genuine social dialogue process that ensures that transformative action moves our economies and societies to stabilise our climate and keep global warming under 1.5°C.
“The union movement is keen to work with all the governments and institutions that sign this declaration to make this happen.”
Michael R. Bloomberg, UN Special Envoy for Climate Ambition and Solutions and founder of Bloomberg L.P. and Bloomberg Philanthropies, said: “Success in the fight against climate change depends on ending coal-fired power – the largest driver of carbon emissions and the target of a major new initiative that Bloomberg Philanthropies expanded this week at COP26.
“Together with our international partners, we welcome the work of more allies dedicated to moving beyond coal and accelerating the clean energy transition we urgently need,
Minister Schulze, German Minister of the Environment, Nature Conservation and Nuclear Safety, said: “Phasing out coal is essential to reach our climate targets. In the near future, we will have left behind all fossil fuels and live in a new and sustainable energy world based on renewable energies.
“In order to get there, we need to actively shape the potential social impacts and support the affected regions in creating good sustainable new jobs. This means ensuring a just and inclusive transition together with all relevant stakeholders.
“Germany is willing to share its experiences with changing economic patterns and is thus supporting the Coal to Clean Statement and the Just Transition Declaration. Germany is underlining its commitment to further support the pathway towards a safe, sustainable and climate friendly energy future globally.”
The French Ministry for Europe and Foreign Affairs said: “Striving to achieve universal access to affordable, reliable, sustainable and modern energy for all and in line with the objectives of the Paris agreement is a priority for France.
“In 2020, the French Development Agency Group committed 1.5 billion euros in the energy sectors to support developing countries for energy transition planning, access to electricity, energy efficiency and renewable energies.
“The partnership announced between South Africa, France, Germany, the United States, the United Kingdom and the European Union is a testament that France stands ready to support a just transition which is socially inclusive and creates local economic opportunities.
UK Government will provide a record £41 billion per year to the Scottish Government.
Scotland will also benefit from UK-wide support for people and businesses, green jobs and investment to level up opportunities.
Targeted funding will support local projects across Scotland, including road and infrastructure improvements, investment in local communities and funding for businesses.
The Chancellor today announced Barnett-based funding for the Scottish Government of £41 billion per year – delivering the largest annual funding settlement, in real terms, since devolution over 20 years ago. This includes a £4.6 billion per year spending boost – as part of a Budget and Spending Review that delivers a stronger economy for the whole of the UK.
Rishi Sunak set out a plan to deliver the priorities of the British people by investing in stronger public services, levelling up opportunity, driving business growth and helping working families with the cost of living.
As part of the significant spending plans, Scotland will receive an average of £41 billion per year in Barnett-based funding representing a 2.4% rise in the Scottish Government’s budget each year. The Scottish Government will now receive around £126 per person for every £100 per person of equivalent UK Government spending in England.
Chancellor of the Exchequer, Rishi Sunak said: “This is a budget for the whole of the UK. We’re focused on what matters most to the British people – the health of their loved ones, access to world-class public services, jobs for the future and tackling climate change.
“By providing record funding, the Scottish Government can tackle backlogs in the NHS and ensure people in Scotland get the support they need as we recover from the pandemic.
“The UK Government continues to level up opportunities across all parts of the UK, with investments in green jobs and high-speed internet access for thousands more homes in Scotland through Project Gigabit.
Scottish Secretary, Alister Jack said: “The Budget delivers for people in Scotland, and right across the UK.
“The Scottish Government’s block grant, boosted by an additional £4.6 billion a year due to spending in England, means that the funding for the Scottish Government is the highest it has ever been.
“It demonstrates our commitment to level up right across the UK. The Budget ushers in an era of real devolution, ensuring money is spent on projects that matter most to people in Scotland.
“The UK Government made a clear commitment to maintain Scotland’s level of funding following the vote to leave the EU, and we have delivered on that promise. We are taking decisions in the UK rather than in Brussels and dealing directly with local authorities who know their communities best.
“From the Knoydart community pub, to Dumbarton town centre and the Granton Gasworks – all these projects will bring real, visible improvements for local communities. Special funding for Glasgow’s iconic Burrell Collection and Extreme E will help drive economic growth and jobs on the back of culture and tourism.
“The continuation of the freeze on spirit duty will be a boost to Scotland’s thriving whisky industry.
“Over the past 18 months the UK Government has been focused on protecting people’s livelihoods, their incomes, and their jobs. We now need to look to the future, to build a stronger economy for people in all parts of the UK.”
Targeted funding in Scotland
On top of the record funding for the Scottish Government, Scotland will benefit from the UK Government’s commitment to invest in people, jobs, communities and businesses. Targeted projects in Scotland include:
Over £200 million to be invested in Scotland to boost the post-pandemic recovery and enhance the Scottish economy, including:
£172 million of the Levelling Up Fund for 8 important projects including the redevelopment of Inverness Castle, the much-needed renovation of the Westfield Roundabout in Falkirk, and a new marketplace in Aberdeen City Centre.
Over £1.07 million of the Community Ownership Fund for five projects in Whithorn, Inverie, New Galloway, Kinloch Rannoch and Callander that are protecting valued community assets.
Providing £1.9 billion for farmers and land managers and £42.2 million to support fisheries.
Up to £1 million, to support the delivery of a ‘green’ formula E race showcasing Hebridean Green Hydrogen to a global audience.
Expanding the existing trade and investment hub in Edinburgh to grow trade for Scotland.
Up to £3 million to bring world-class art exhibitions to the Burrell Collection in the heart of Glasgow.
UK-Wide Support
As a result of our strong United Kingdom, Scotland will benefit from:
A 50% cut in domestic Air Passenger Duty for flights between England, Scotland, Wales and Northern Ireland and an additional £22.5 million of new funding in anticipation of the Union Connectivity
Review recommendations where we will work with the devolved administrations on improving UK-wide connectivity.
New funding for the British Business Bank to establish a £150 million fund in Scotland, helping Scottish businesses to get the financing they need.
The new £1.4 billion Global Britain Investment Fund which will support investment directly into Scotland.
A record £20 billion by 2024-25 in Research and Development supporting innovation in Scotland.
Confirmation that total funding will at a minimum match the size of EU Funds in Scotland, each year through the over £2.6bn UK Shared Prosperity Fund, which will invest in skills, people, businesses, and communities, including through ‘Multiply’, a new adult numeracy programme that will provide people across Scotland with essential numeracy skills.
An increase to the National Minimum Wage of £9.50 an hour, with young people and apprentices also seeing increases.
Freezes to fuel duty for the twelfth consecutive year and a freeze on Vehicle Excise Duty for heavy goods vehicles.
A freeze on alcohol duty, which will mean that whisky benefits from the lowest real terms tax rate since 1918.
BUDGET REACTION
Rachel Reeves MP, Labour’s Shadow Chancellor, responding to the Budget, said:Families struggling with the cost of living crisis, businesses hit by a supply chain crisis, those who rely on our schools and our hospitals and our police – they won’t recognise the world that the Chancellor is describing. They will think that he is living in a parallel universe.
The Chancellor in this budget, has decided to cut taxes for banks. So, Madame Deputy Speaker, at least the bankers on short haul flights sipping champagne will be cheering this budget today.
And the arrogance, after taking £6 billion out of the pockets of some of the poorest people in this country, expecting them to cheer today for £2 billion given to compensate.
In the long story of this Parliament, never has a Chancellor asked the British people to pay so much for so little.
Time and again today, the Chancellor compared the investments that he is making to the last decade. But who was in charge in this lost decade? They were.
So, let’s just reflect on the choices the Chancellor has made today – the highest sustained tax burden in peacetime.
And who is going to pay for it?
It’s not international giants like Amazon – the Chancellor has found a tax deduction for them. It’s not property speculators – they’ve already pocketed a stamp duty cut. And it’s clearly not the banks – even though bankers’ bonuses are set to hit a record high this year.
Instead, the Chancellor is loading the burden on working people. A National Insurance Tax rise – on working people. A Council Tax hike – on working people. And no support today for working people with VAT on their gas and electricity bills.
And what are working people getting in return? A record NHS waiting list, with no plan to clear it, no way to see a GP and still having to sell their home to pay for social care.
Community policing nowhere to be seen, a court backlog leaving victims without justice and almost every rape going unprosecuted.
A growing gap in results and opportunities between children at private and state schools. Soaring number of pupils in supersize classes and no serious plan to catch up on learning stolen by the virus. £2 million announced today – a pale imitation of the £15 billion catch up fund that the Prime Minister’s own education tsar said was needed. No wonder, Madame Deputy Speaker, that he resigned.
Now the Chancellor talks about world class public services. Tell that to a pensioner waiting for a hip operation. Tell that to a young woman waiting to go to court to get justice. Tell that to a mum and dad, waiting for their child the mental health support they need.
And the Chancellor says today that he has realised what a difference early years spending makes. I would just say to the Chancellor, has he ever heard of the Sure Start programme that this Tory government has cut?
And why are we in this position? Why are British businesses being stifled by debt while Amazon gets tax deductions?
Why are working people being asked to pay more tax and put up with worse services?
Why are billions of pounds in taxpayer money being funnelled to friends and donors of the Conservative party while millions of families are having £20 a week taken off them?
Madame Deputy Speaker, why can’t Britain do better than this?
The Government will always blame others. It’s business’ fault, it’s the EU’s fault, it’s the public’s fault.
The global problems, the same old excuses. But the blunt reality is this – working people are being asked to pay more for less for three simple reasons:
Economic mismanagement,
An unfair tax system,
And wasteful spending.
Each of these problems is down to 11 years of Conservative failure and they shake their heads but the cuts to our public services have cut them to the bone. And while the Chancellor and the Prime Minister like to pretend they are different, the Budget they’ve delivered today will only make things worse.
The solution starts with growth. The Government is caught in a bind of its own making. Low growth inexorably leads to less money for public services, unless taxes rise.
Under the Conservatives, Britain has become a low growth economy. Let’s look at the last decade – the Tories have grown the economy at just 1.8 percent a year.
If we had grown at the same rate as other advanced economies, we could have spent over £30bn to invest in public services without needing to raise taxes.
Let’s compare this to the last Labour Government. Even taking into account the global financial crisis, Labour grew the economy much faster – 2.3 percent a year.
If the Tories matched our record, we would have spent £30bn more on public services without needing to raise taxes.
It could not be clearer. The Conservatives are now the party of high taxation, because the Conservatives are the party of low growth.
The Office for Budget Responsibility confirmed this today – that we will be back to anaemic growth. The OBR said that by the end of this Parliament, the UK economy will be growing by just 1.3%. Which is hardly the plan for growth that the Chancellor boasted about today, hardly a ringing endorsement of his announcements.
Under the Tory decade we have had ow growth and there’s not much growth to look forward to.
The economy has been weakened by the pandemic but also by the Government’s mishandling of it.
Responding to the virus has been a huge challenge. Governments around the world have taken on debt, but our situation is worse than other countries.
Worse, because our economy was already fragile going into the crisis. Too much inequality, too much insecure work, too little resilience in our public services.
And worse, because the Prime Minister dithered and delayed, against scientific advice – egged on by the Chancellor – we ended up facing harsher and longer restrictions than other countries.
So, as well as having the highest death toll in Europe, Britain suffered the worst economic hit of any major economy.
The Chancellor now boasts that we are growing faster than others, but that’s because we fell the furthest.
And whilst the US and others have already bounced back to pre-pandemic levels, the UK hasn’t. Our economy is set to be permanently weaker.
On top of all of that, the Government is now lurching from crisis to crisis. People avoiding journeys because they can’t fill up their petrol tank is not good for the economy. People spending less because the cost of the weekly shop has exploded is not good for the economy. And British exporters facing more barriers than their European competitors because of the deal that this government did is not good for the economy.
If this were a plan, it would be economic sabotage. When the Prime Minister isn’t blagging that this chaos is part of his cunning plan, he says he’s “not worried about inflation.”
Tell that to families struggling with rising gas and electricity bills, with rising prices of petrol at the pump and with rising food prices. He’s out of touch, he’s out of ideas and he’s left working people out of pocket.
Madame Deputy Speaker, Conservative mismanagement has made the fiscal situation tight. And when times are tight it’s even more important to ensure that taxes are fair, that taxpayers get value for money. But the Government fails on both fronts.
We have a grossly unfair tax system with the burden heaped on working people.
Successive budgets have raised council tax, income tax and now National Insurance. But taxes on those with the broadest shoulders, those who earn their income from stocks, shares, and property portfolios have been left largely untouched.
Businesses based on the high street are the lifeblood of our communities and often the first venture for entrepreneurs.
But despite what the Chancellor has said today, businesses will still be held back by punitive and unfair business rates. The Government has failed to tax online giants and watered-down global efforts to create a level playing field.
And just when we need every penny of public money to make a difference, we have a government that is the by-word for waste, cronyism and vanity projects.
We’ve had £37 billion for a test and trace system that the spending watchdog says, ‘treats taxpayers like an ATM cash machine’. A yacht for ministers, a fancy paint job for the Prime Minister’s plane and a TV studio for Conservative Party broadcasts, which seems to have morphed into the world’s most expensive home cinema.
£3.5bn of Government contracts awarded to friends and donors of the Conservative Party, a £190 million loan to a company employing the PMs former Chief of Staff, £30 million to the former Health Secretary’s pub landlord. And every single one of those cheques signed by the Chancellor.
And now he comes to ordinary working people and asks them to pay more. More than they have ever been asked to pay before and at the same time, to put up with worse public services. All because of his economic mismanagement, his unfair tax system and his wasteful spending.
There are of course some welcome measures in this budget today, as there are in any budget.
Labour welcomes the increase in the National Minimum Wage, though the Government needs to go further and faster. If they had backed Labour’s position of an immediate rise to at least £10 an hour then a full-time worker on the minimum wage would be in line for an extra £1,000 a year.
Ending the punitive public sector pay freeze is welcome, but we know how much this Chancellor likes his smoke and mirrors. So, we’ll be checking the books to make sure the money is there for a real terms pay rise.
Labour also welcomes the Government’s decision to reduce the Universal Credit taper rate, as we have consistently called for. But the system has got so far out of whack that even after this reduction, working people on universal credit still face a higher marginal tax rate than the Prime Minister. And those unable to work – through no fault of their own – still face losing over £1000 a year. And for families who go out to work everyday but don’t get government benefits, on an average wage, who have to fill up their car with petrol to get to work, who do that weekly shop and who see their gas and electricity prices go up – this budget today does absolutely nothing for them.
We have a cost-of-living crisis.
The Government has no coherent plan to help families to cope with rising energy prices. Whilst we welcome the action taken today on Universal Credit, millions will struggle to pay the bills this winter.
The Government has done nothing to help people with their gas and electricity bills with that cut in VAT receipts as Labour has called for. A cut that is possible because we are outside the European Union and can be funded by the extra VAT receipts that have been experienced in the last few months.
Working people are left out in the cold while the Government hammers them with tax rises.
National Insurance is a regressive tax on working people, it is a tax on jobs.
Under the Chancellor’s plans, a landlord renting out dozens of properties won’t pay a penny more. But their tenants, in work, will face tax rises of hundreds of pounds a year. And he is failing to tackle another huge issue of the day. Adapting to climate change.
Adapting to climate change presents opportunities – more Jobs, lower bills and cleaner air. But only if we act now and at scale. According to the OBR, failure to act will mean public sector debt explodes later, to nearly 300% of GDP.
The only way to be a prudent and responsible Chancellor is to be a Green Chancellor. To invest in the transition to a zero-carbon economy and give British businesses a head-start in the industries of the future.
But with no mention of climate in his conference speech and the most passing of references today, we are burdened with a Chancellor unwilling to meet the challenges we face.
Homeowners are left to face the costs of insulation on their own, industries like steel and hydrogen are in a global race without the support they need and the Chancellor is promoting domestic flights over high speed rail int he week before COP26.
It is because of this Chancellor that in the very week we try and persuade other countries to reduce emissions, this Government can’t even confirm it will meet its 2035 climate reduction target.
Madame Deputy Speaker, everywhere working people look at the moment they see prices going up and shortages on the shelves. But this Budget did nothing to address their fears.
Household budgets are being stretched thinner than ever but this Budget did nothing to deal with the spiralling cost of living. It is a shocking missed opportunity by a government that is completely out of touch.
There is an alternative. Labour would scrap the business rates and replace it with something much better by ensuring online giants pay their fair share. That’s what being pro-business looks like.
We wouldn’t put up National Insurance for working people, we would ensure those with the broadest shoulders pay their share. That’s what being on the side of working people looks like.
We’d end the £1.7 billion subsidy the Government gives private schools and put it straight into local state schools. That’s what being on the side of working families looks like.
We’d deliver a climate investment pledge – £28bn every year for the rest of the decade. That’s Giga-factories to build batteries for electric vehicles, a thriving hydrogen industry and retrofitting, so we keep homes warm and get energy bills down. That’s what real action on climate change looks like.
This country deserves better but they’ll never get it under this Chancellor who gives with one hand but takes so much more with the other.
The truth is this – what you get with these two is a classic con game. It’s like one of those pickpocketing operations you see in crowded places. The Prime Minister is the front man – distracting people with his wild promises. All the while, his Chancellor dips his hand in their pocket. It all seems like fun and games until you walk away and realise your purse has been lifted.
But people are getting wise to them. Every month they feel the pinch. They are tired of the smoke and mirrors, of the bluster, of the false dawns, of the promises of jam tomorrow.
Labour would put working people first. We’d use the power of government and the skill of business to ensure that the next generation of quality jobs are created right here, in Britain.
We’d tax fairly, spend wisely and after a decade of faltering growth, we’d get Britain’s economy firing on all cylinders.
That is what a Labour budget would have done today.
Edinburgh Pentlands SNP MSP Gordon MacDonald said that the Tory UK Government’s budget makes it clear that “independence is the only way to give Edinburgh a fair recovery from the pandemic.”
Gordon MacDonald said that the budget, described by the head of the Institute for Fiscal Studies as “actually awful” for living standards, is failing the people of Scotland by failing to tackle the cost of living crisis, the Brexit crisis and the climate crisis whilst the Tory Government prioritise cuts to the cost of champagne and giving tax breaks to bankers.
The Edinburgh Pentlands MSP said: “What the Tory UK Government has outlined today does not meet the ambition needed to build a fair and sustainable recovery and to tackle the cost of living crisis.
“It’s painfully clear that there will be no fair recovery from the pandemic under Westminster control.
“This Tory budget fails Scotland as a whole and doesn’t go anywhere near supporting people in Edinburgh, who are being hit by an energy crisis, a Brexit crisis, labour shortages and an inflation crisis under Westminster control.
“The UK Government budget is leaving families in Edinburgh hundreds of pounds worse off next year due to Tory cuts, tax hikes and the soaring cost of Brexit.
“It’s little wonder that, in May’s election, the people of Scotland voted overwhelmingly for a different future when they gave the SNP the highest share of the vote since the dawn of devolution and a clear mandate for an independence referendum – Independence is the only way to keep Scotland safe from Tory cuts.”
“The chancellor admitted that we will have zero pay growth across the economy next year. And he has no plan to get real wages rising for everyone after an eleven year pay squeeze, with average real pay growth over the next four years predicted to be just 0.3 per cent.
“He should have announced fair pay deals for whole industries, negotiated with unions, designed to get pay and productivity rising in every sector.
“Families face a triple whammy of a £1,000 universal credit cut, tax hikes and fast-rising energy and food bills. All the while wages across the economy stand still.”
On the universal credit taper cut, she added:
“Workers on universal credit should always have been able to keep more of their wages. This change does not make up for the £1,000 per year cut to universal credit, and does not help those on universal credit who cannot work.”
Centre for Cities’ Chief Executive Andrew Carter said:“Raising the National Living Wage is a quick win for the levelling up agenda and will have the biggest impact in the places that are crucial to the Prime Minister winning the next election. Four of the five places where the most people will benefit are in the North.
“While a pay increase is good news for people struggling with the cost of living crisis, it does not address the reasons why they live on low pay in the first place: a lack of well-paid jobs in their local area.
“We’ve seen today the beginnings of a plan focused on skills, innovation and infrastructure to address this, but turning it from rhetoric to reality will depend on ministers’ willingness to work with metro mayors and councils on delivering it.
“I am now looking to the delayed Levelling Up White Paper to set out how this will happen.”
Katie Schmuecker, Deputy Director of Policy & Partnerships at JRF said:“This is a tale of two Budgets for families on low incomes.
“For those in work, the change to the taper rate and work allowance, alongside the National Living Wage increase, are very positive steps, allowing low-paid workers to keep more of what they earn. Together these measures improve our social security system for working families and demonstrate a serious intent to turn the tide on the pre-pandemic trend of rising in-work poverty.
“But the reality is that millions of people who are unable to work or looking for work will not benefit from these changes. The Chancellor’s decision to ignore them today as the cost of living rises risks deepening poverty among this group, who now have the lowest main rate of out-of-work support in real terms since around 1990.
“Among the people in our society who cannot work are cancer patients, people with disabilities and those caring for young children or elderly parents.
“Their energy bills and weekly shop are going up like everyone else’s and they face immediate hardship, hunger and debt in the months ahead. The Chancellor had an opportunity to support families on the lowest incomes to weather the storm ahead, and he did not take it.”
New analysis by the independent Joseph Rowntree Foundation reveals that the rising cost of living wipes out much of the financial gain some families will receive from the Universal Credit changes announced today.
Weekly incomes and Costs for 2022/23
Family 1: single adult, no children, not working
Family 2: single parent, with one young child (assume age 5), part-time 16 hours per week
Family 3: couple with two young children (assume 7 and 5). One FT worker
Family 4: single parent, with one young child (assume age 5), full-time 35 hours per week
Family 5: Couple with two young children (assume 7 and 5). 1 FT worker (35 hours), 1 PT worker (16 hours)
Weekly income before new announcements
£77
£278
£433
£333
£489
Weekly gain from taper rate and work allowance
£0
£8
£19
£19
£31
Total loss from higher cost of living due to…
-£13
-£16
-£23
-£18
-£24
1) increase in energy prices
-£7
-£7
-£7
-£7
-£7
2) overall cost of living increase
-£6
-£8
-£13
-£8
-£13
3) increase in National Insurance and impact of inflation on earnings
£0
-£1
-£3
-£3
-£4
Overall weekly gain or loss after measures and cost of living
-£13
-£8
-£4
£1
£7
Note all five families lost £20-a-week in October 2021, due to the cut in the Universal Credit Standard Allowance, so all are worse-off than they would have been in September 2021. All workers are assumed to be paid at the National Living Wage rate, so benefit from its increase.
Peter Kelly,Director of the Poverty Alliance, said: “It is a shameful, unjust decision that makes the Chancellor’s rhetoric about ‘levelling up’ seem as empty as the pockets of the hundreds of thousands of people swept into poverty as a result.”
Finance Secretary Kate Forbes has written to Chancellor of the Exchequer Rishi Sunak calling for additional spending to support households and businesses who are facing a perfect storm of rising prices, reduced support and increasing shortages.
Writing ahead of the UK Autumn Budget and Comprehensive Spending Review, Ms Forbes urged the Chancellor to at least match the Scottish Government’s £500 million Just Transition Fund for the North East and Moray and increase the Scottish Government’s borrowing powers to enable greater investment in decarbonisation schemes.
She also called for an extension of the reduced 12.5% VAT rate for the hospitality sector, which is due to end on 31 March 2022, for a further year, a reversal of the decision not to award the Scottish carbon capture, utilisation and storage project Track-1 status and for the UK Government to “prioritise spending that supports the financial security of low-income households, the wellbeing of children and young people and delivers good, green jobs and fair work.”
The letter states:
Dear Rishi,
I am writing to you in advance of the UK Government announcing the Autumn Budget and Comprehensive Spending Review on 27 October, with a view to constructively progressing the recent dialogue with the Chief Secretary to the Treasury and the First Minister’s meeting with the Prime Minister.
I am conscious that over recent days there has been wide media coverage in relation to Budget and Spending Review content. The reports have contained differing degrees of detail and a lack of clarity on how much of the predicted spend is new. In the absence of direct engagement, I have not reflected this information.
The Scottish Government will work to ensure that our responses to the unprecedented public health, economic and wider challenges presented by Covid deliver for the benefit of all of Scotland. This environment is compounded by the complexity and financial detriment to Scotland of the UK Government’s decision to leave the European Union against the will of the Scottish people, while we continue to work urgently to address the needs of climate change. These challenges will require short and long-term solutions and I set out below how the UK Budget and Spending Review can support priorities in Scotland.
Net Zero
COP 26 in Glasgow will focus international attention on the urgent action needed to tackle the global climate emergency. As outlined in the joint nations letter, and by the UK Climate Change Committee, significant investment is required from the UK Government in reserved areas to meet the Scottish Government’s ambitious emissions reduction targets. Given the requirement for co-ordinated action to address this challenge, it was disappointing that the UK Net Zero Strategy was launched without any meaningful engagement. The UK Net Zero Strategy provides some encouragement in key areas, but overall does not go far enough in many of the critical elements for ensuring the deep decarbonisation that the Scottish Government has repeatedly called for action in.
In Scotland, our climate change targets set their own pace and scale, requiring us to avail ourselves of every lever at our disposal. However, many levers remain at UK level, even where they affect Scotland directly. Following on from our recent meetings, it is worth highlighting again those actions which would most benefit our delivery in relation to funding key climate change commitments:
Removal of the capital borrowing cap, replacing this with a prudential borrowing scheme to help leverage the greater volume of capital investment required;
Agreement that all new spending will reflect the devolution settlement, enabling us to address Scotland’s specific challenges in making the transition to net zero (such as the needs of rural populations);
Meaningful and consistent dialogue between UK Government and Devolved Governments to allow consideration of all relevant input in advance of key green policy and regulatory decisions;
Engagement in relation to the net zero roadmap and other key strategies.
The Scottish Government has committed to working with partners, communities and other stakeholders to take forward a ten-year £500m Just Transition Fund for the North East and Moray. Given the UK Treasury has, over decades, benefited from billions of pounds of revenue from activity in the North Sea, I ask that you at least match our commitment to help secure jobs the North East of Scotland, support the energy transition, and reduce emissions.
There are a number of areas where we need the UK Government to take more action and act faster, including support for carbon capture, utilisation and storage (CCUS). Scotland represents the most cost-effective and deliverable opportunity for CCS in the UK by the mid-2020s. Therefore, the recent UK Government announcement failing to award the Scottish Cluster clear and definitive Track-1 project status as part of your CCUS cluster sequencing process is illogical.
We have previously advised the UK Government that we would help to support the Scottish Cluster, and stand ready to do so. However, we do not hold all the necessary legislative and regulatory levers which are retained by the UK Government. We are therefore calling upon the UK Government to reverse this decision, and accelerate the Scottish Cluster to full Track-1 status without delay.
Health & Social Care
I welcome the approach from UK Government officials to Scottish Government equivalents to form a working group in relation to the implementation of the levy, however this rise will have a notable impact on taxpayers in Scotland. Without necessary investments in supporting low-income households, this regressive approach to revenue generation will further compound the financial hardship many families already face as detailed above.
Whilst the UK Government has provided indications of the consequentials we will receive as a result of this tax rise, I remain concerned that reductions will be made in other areas giving rise to negative consequentials overall, and ask that this is ruled out in the forthcoming Budget and spending review. As part of this, I expect the allocation to devolved administrations will cover the full costs of the levy that will be incurred by our public sector employers including local government.
It is imperative that the UK budget delivers on your commitment to ensure that the NHS receives whatever support it needs throughout this pandemic. While the Health and Social Care Levy will go some way to supporting services, it is clear in particular that this will be insufficient to address the scale of social care pressure and consequent impact on NHS services.
I reiterate my previous call for a comprehensive package of investment, taking the whole health and social care system into account, both in terms of delivery of services and addressing specific Covid-19 pressures. I would also reaffirm the need for increased transparency of UK Government spending arrangements, so that the Scottish Government is clear on the funding that will arise from key programmes such as testing and vaccinations.
As I have previously highlighted, it will continue to be necessary for the UK Government to accommodate flexibility across the UK in these programmes of activity, so that devolved administrations can deploy resources in a manner that best meets spending profiles and specific needs in Scotland.
Recovery from the Combined Impacts of Covid and EU Exit
The Barnett guarantee provided in 2020-21 was a successful demonstration of the benefits of fiscal flexibility. UK fiscal policy and any new fiscal rules should be flexible as well as credible. This is something the Institute for Fiscal Studies has recently advocated to ensure fiscal policy can continue to respond to temporary economic shocks and help ensure fairness across generations. It is essential that the UK Government adopt such an approach.
As I have previously communicated, the Scottish Government is strongly opposed to any return to austerity and strongly urge you to reinstate the £20-per week uplift to Universal Credit. A real cost-of-living crisis is emerging as a result of this cut, combined with the escalating energy costs and upcoming rise in National Insurance Contributions. The Universal Credit cut alone will push an extra 60,000 people in Scotland, including 20,000 children, into poverty and hundreds of thousands more into hardship, whilst also reducing social security expenditure in Scotland by £461m by 2023-24.
I cannot accept that these cuts to individual income, alongside other poverty-inducing policies such as the benefit cap, or the two child limit for child tax credit are justifiable at this time. The UK Budget must prioritise spending that supports the financial security of low-income households, the wellbeing of children and young people, and delivers good, green jobs and fair work.
The choices made by the UK Government following Brexit are contributing to labour and skills shortages in Scotland. As predicted by Scottish Government modelling, severe impacts are disproportionately concentrated on the food and drink sector, particularly seafood, meat and dairy, as well as beverages and textiles. Evidence is mounting, including from BICs and HMRC Regional Trade Statistics to illustrate the detrimental impact on our trading performance, and supporting my call for the UK Government to re-engage in good faith with the EU and find pragmatic solutions to the blockages confronting businesses.
Where these create additional new costs or obstacles, I ask that the UK Budget and Spending Review is transparent about the impact and provides additional financial support to help compensate businesses for the losses incurred as a direct result of EU Exit.
Public Sector Pay
Decisions on public sector pay by the UK Government in this Budget and Spending Review are a material factor in setting pay awards for the public sector workforce in Scotland. Any continuation of the UK Government pay freeze has a material impact on our block grant settlement, within which we must balance reward and affordability. Public sector pay awards must be progressive, fair and allow valued workers to maintain their standard of living, as they continue to deliver the strong and innovative public services our people deserve.
Capital Investment
There is much common ground between UK and Scottish Government infrastructure priorities in delivering our net zero targets, delivering new jobs and securing Covid recovery. However, our economic recovery could be damaged if this spend is not prioritised and committed within the UK Budget. The decision taken by the UK Government to disburse the Levelling-Up Fund directly across the UK, despite previous commitments otherwise, impacts on the level of devolved funding available to the Scottish Government for Scotland.
To help achieve our Net Zero aims and grow our economy, I would welcome your assurance that the Scottish Government will receive a fair share of future years’ Capital and Financial Transactions allocations; that the gap in the Scottish Budget resulting from the change in approach to the Levelling Up Fund will be filled and that there will be appropriate governance arrangements for the UK Infrastructure Bank and other partnerships or funding routes to ensure that all interested parties have an appropriate ability to influence and control spend in the relevant areas of the UK.
VAT
I believe that the UK Government must make responsible tax policy decisions that will support the sectors and businesses economy throughout this challenging period, and I welcome measures taken on VAT to date. However, I am convinced that the increase in VAT from 1 October comes too soon.
This will affect many businesses that have been hit hardest by the Covid pandemic, potentially leading to their closure and therefore slowing the economic recovery in Scotland. It is vital that the UK Government takes account of the needs of all parts of the UK when deciding how best to support the recovery through its taxation levers, and I urge you to consider extending the reduced rate of VAT for the next financial year.
Air Passenger Duty
As you will be aware, the Scottish Government has a strong interest in the UK Government’s consideration of next steps for Air Passenger Duty following this year’s consultation on aviation tax reform. We accordingly asked to be fully consulted on any decisions before they are made, to ensure that any implications for devolution and the interests of Scotland are taken fully into account.
In that regard, it is concerning to see that the media appears to have been briefed on those decisions, without any discussion with the Scottish Government having occurred. Moving forwards, I would welcome your full commitment to meaningful dialogue on this, and indeed on all relevant tax matters, in advance of media briefings.
Replacement of EU Funding
In common with my counterparts in the Devolved Administrations, I expect full replacement of EU funds to ensure no detriment to Scotland’s finances, and I expect the UK Government to fully respect the devolution settlement in any future arrangements.
The current approach to the replacement of and participation in EU programmes leaves Scotland worse off. The ability to undertake long-term strategic planning has been significantly undermined as the flexible seven-year multi-annual funding mechanisms of EU funding are being replaced by annually managed allocations. Furthermore, the proposed methodology for determining farm funding allocations effectively penalises the use of the remaining flexibilities from legacy funding. I have written to you jointly with other finance ministers from the Devolved Administrations in order to express our concerns about this methodology and our expectations regarding future allocations.
With regards to fisheries, I consider the existing settlement to be vastly insufficient, given past underfunding and the significant impacts of Brexit on the sector. We provided clear evidence for a multi-year £62m allocation for Scottish fisheries, as opposed £14m allocation we received in the 20/21 Spending Review. Additionally, it appears that the yearly £5.5m top up which was previously provided to Scotland on the basis that the EU EMFF allocation was insufficient will no longer continue, increasing an already significant funding shortfall.
This process seems to mirror our experience with the Bew review, where commitments made in 20/21 are then being downgraded within the life of this parliament. In the case of the Bew review, this was to agree a process of engagement ahead of the upcoming Spending Review to address the issue of Bew funding from 2022/23 onwards. While the initial recommendations of the Bew review have been met, the proposed funding does not include any additional budget cover beyond 2021-22. This leaves Scotland in the same position as in 2019 where the inequality in distribution of land remains an issue.
Further discussions need to take place on the principle of intra-UK allocations in line with the wider observations of the Bew review. In the absence of such a review we would expect at least the £25.7m funding to continue beyond 2021-22 to address the funding inequality included in the previous ceiling levels. A failure to do so would result in a cut of £77.1m in our budget up to 2025. I require assurance that the UK Budget and Spending Review will redress these issues to ensure no detriment to Scotland’s finances.
Internal Market Act
The financial assistance powers in the Internal Market Act (IMA) confer new powers on UK ministers to spend directly in a wide range of devolved matters, bypassing parliamentary scrutiny and accountability at Holyrood. This also, in effect, gives the UK Government the power to bypass the Barnett Formula. Aside from being a profound departure from the existing devolution settlement, it introduces considerable additional uncertainty to future devolved funding and fundamentally alters the devolution landscape.
I ask for assurance that the powers will not be used without the prior consent of the Devolved Governments, and for clarity on how decisions on use of IMA financial assistance powers will be made, and under what circumstances. Without this it is difficult to see how the principles of consent, transparency, and stability and predictability espoused in the Statement of Funding Policy can be met. Moreover, it risks poor value for money as a result of incoherent policy and disjointed spending decisions.
As a minimum I would ask that the forthcoming spending review set out details on any plans to spend under the IMA over the course of the period (and beyond where known), and that the implications for devolved funding arrangements and decision-making are addressed in the planned update to the Statement of Funding Policy.
I trust that you will consider the suggestions made above and that we can work collaboratively to address the matters raised in order to provide certainty to the wider public sector, boost the economy and support our most vulnerable at this challenging time.
