In a wide-ranging report on the Scottish Budget 2025-26 published today – ahead of two parliamentary debates on the Scottish budget – the committee emphasises the need for more detail on behavioural responses to tax policy, the impact of Employer National Insurance Contributions and rising social security spending.
The cross-party committee also highlights the need to help Scotland’s educational institutions and businesses drive investment and growth, while urging the Scottish Government to publish its over-due infrastructure plan and ‘hit the ground running’.
Repeated delays and unanswered concerns are indicative of a lack of medium and long-term financial planning, says the committee’s report.
Finance and Public Administration Committee Convener Kenneth Gibson MSP said:“As the Scottish Government is aware, we are strongly of the view that more research is needed on behavioural responses to tax policy.
“We also set out in this report recommendations which we consider would help to support growth in earnings and revenues in Scotland.”
On Employer National Insurance Contributions, Mr Gibson added: “The Committee is aware that the expected shortfall in UK funding for increased Employer National Insurance Contributions for the direct costs to the public sector will be significant and we ask what plans the Scottish Government has in place to meet these.”
Rising social security costs are of concern. He commented: “Given that the Scottish Government has not included any funding in the 2025-26 Budget to cover the lifting of the two-child cap, the Committee asks for details of where this funding will be found if it’s introduced early, as well as potential impacts on other areas of spend.
“The Committee also seeks greater transparency around the overall public sector pay bill.”
On growing the economy and capital spending, the convener said:“We look forward to receiving evidence from the Cabinet Secretary on the sustainability of higher education and work to improve the flexibility and responsiveness of the college sector to enable skills to match the needs of business and the economy.
“We note the creation of a Cabinet Sub-Committee on Investment and Economy to ‘help create a business environment that drives investment and growth.’
“The Committee ask the Scottish Government how it is maximising opportunities to enable Scotland’s universities and the high-performing sectors of the economy to be globally competitive.
“The significant increase in capital spending in 2025-26 allows the Scottish Government to restart paused capital projects and make some new commitments.
“We strongly urge the Scottish Government to prioritise its capital commitments to ensure it’s in the best possible position to ‘hit the ground running’ with infrastructure projects from the start of the next financial year.”
On delays to key strategic financial documents, Mr Gibson concluded: “Regarding delays in publishing key strategic financial documents, the committee repeatedly expressed concerns. This is indicative of a wider problem where vital medium and longer-term financial planning within the Scottish Government is lacking.”
Report warns service provided to customers is a mixed bag with levels of fraud remaining unacceptably high
Disability benefits claimants receive an unacceptably poor level of service from the Department for Work and Pensions (DWP). In a report published today, the Public Accounts Committee (PAC) warns that the DWP’s understanding of vulnerable customers’ experience is not good enough, with how it provides customer service overall also falling short.
The report finds that benefit claimants received over £4bn less than they were entitled to in 2023-24. This increases the risk of financial hardship for the people losing out. This figure of underpayments has risen from £3.5bn in 2022-23. Underpayment rates are highest for disability benefits, such as Personal Independent Payment (PIP) and Employment and Support Allowance (ESA).
The inquiry heard that disabled peoples’ experiences of the benefit system are often negative due to issues with the design of the system and how DWP communicates, with evidence that 43% of claimants with complex disabilities do not have their needs met through DWP’s communications.
Not informing DWP of a change in circumstances is the most common reason for underpayments – the report notes that many claimants need to call DWP to do so, but a significant proportion of calls go unanswered.
The PAC is warning that DWP does not understand well enough the experience of vulnerable customers and customers with additional or complex needs, and should gather the data it needs to gain this understanding.
The DWP conceded to the PAC that, while it had been using artificial intelligence to help identify vulnerable customers at the time of the Committee’s inquiry, it did not have a system to identify such customers on the telephone.*
The report raises continuing concerns about the potential negative impact on protected groups and vulnerable customers of DWP’s use of machine learning to identify potential fraud, and seeks reassurance from Government that claimants are not being treated unfairly through its use.
Recipients of PIP and ESA, the report finds, receive an unacceptably poor service from DWP. ESA claimants have to wait an average of nearly 30 minutes for DWP to answer their calls (compared to approximately 2 minutes for Universal Credit claimants). For new PIP claimants, only half of these are processed on time (as compared to 96% of new State Pension claims).
While benefits underpayments are climbing, the report also warns that overpayments are also on the rise, with £9.5bn of benefit expenditure (excluding State Pension) overpaid in 2023-24 – up from £8.2bn in 2022-23.
The report calls out DWP’s defence of its current performance: by referring to the challenge of working against a “headwind” of an increasing propensity for fraud in society. The PAC sees this as a dangerous mindset, stressing that it is the DWP’s job to improve its defences and ensure benefit claimants receive the right amount of money.
Sir Geoffrey Clifton-Brown MP, Chair of the Committee, said: “Our report’s disheartening findings illustrate the stark disparity of experience between claimants for disability benefit and other users of the system.
“In some cases, claimants are literally calling for help and receiving no answer, resulting in increasing risks to their financial security. The British public would be forgiven for thinking the state is AWOL just when it needs it most.
“The DWP must do more to ensure that claimants are reunited with the money to which they are entitled, as well as to understand the needs of vulnerable claimants.
“Our Committee is closely scrutinising the use of AI in Government. While this Committee would welcome the use of AI for the benefit of the public, the onus is also on the DWP to prove it is using these powerful tools in a safe and fair manner.
!We are also as concerned at the picture of growing underpayments as we are with overpayments, and have little sympathy for the DWP’s argument that this rise is driven by a growing propensity for fraud in society.
“This amounts to saying that the DWP’s job is too hard to do well – not a defence that this Committee is prepared to accept.”
Chancellor unveils new plans to deliver the Oxford-Cambridge Growth Corridor that will boost the UK economy by up to £78 billion by 2035
Rachel Reeves will today vow to go ‘further and faster’ to deliver the government’s Plan for Change to kick start economic growth and put more pounds in people’s pockets.
Chancellor to unveil plans to unleash the potential of the Oxford-Cambridge Growth Corridor that will add up to £78 billion to the UK economy according to industry experts, catalysing growth of UK science and technology.
Comes after Chancellor last week announced National Wealth Fund and Office for Investment will take new approaches to spur regional growth across the UK.
Chancellor Rachel Reeves will today vow to go “further and faster” to kick start the economy, as she unveils new plans to deliver the Oxford-Cambridge Growth Corridor that will boost the UK economy by up to £78 billion by 2035 according to industry experts.
In a speech in Oxfordshire, the Chancellor will tell regional and business leaders that economic growth is the number one mission of this government and its Plan for Change. She will declare that Britain’s economy has “huge potential” and is at the “forefront of some of the most exciting developments in the world like artificial intelligence and life sciences.”
She will back the redevelopment of Old Trafford and will review the Green Book – the government’s guidance on appraisal – in order to support decisions on public investment across the country, including outside London and the Southeast.
The speech comes after the Chancellor last week announced a new approach for the National Wealth Fund (NWF) and the Office for Investment (OfI) to work with local leaders to build pipelines of incoming investment and projects linked to regional growth priorities. This includes the NWF trialling Strategic Partnerships in Greater Manchester, West Yorkshire, West Midlands, and Glasgow City Region and the OfI piloting an approach in the Liverpool City Region and the North East Combined Authority to connect their regions to central government and industry expertise in order to unlock private investment.
Reeves will say “low growth is not our destiny, but that economic growth will not come without a fight. Without a government that is on the side of working people. Willing to take the right decisions now to change our country’s course for the better.”
The Chancellor is expected to say:“Britain is a country of huge potential. A country of strong communities, with local businesses at their heart.
“We are the forefront of some of the most exciting developments in the world like artificial intelligence and life sciences. We have great companies based here delivering jobs and investment in Britain.
“And we have fundamental strengths – in our history, our language, and our legal system – to compete in a global economy.
“But for too long, that potential has been held back. For too long, we have accepted low expectations, accepted stagnation and accepted the risk of decline. We can do so much better.
“Low growth is not our destiny. But growth will not come without a fight. Without a government that is on the side of working people. Willing to take the right decisions now to change our country’s course for the better.
“That’s what our Plan for Change is about. That is what drives me as Chancellor. And it is what I’m determined to deliver.”
In her speech the Chancellor will announce:
The Environment Agency has lifted its objections to a new development around Cambridge that could unlock 4,500 new homes and associated community spaces such as schools and leisure facilities as well as office and laboratory space in Cambridge City Centre. This was only possible as a result of the government working closely with councils and regulators to find creative solutions to unlock growth and address environmental pressures.
That the government has agreed for water companies to unlock £7.9bn investment for the next 5 years to improve our water infrastructure and provide a foundation for growth. This includes nine new reservoirs, such as the new Fens Reservoir serving Cambridge and the Abingdon Reservoir near Oxford.
Confirming funding towards better transport links in the region including funding for East-West Rail, with new services between Oxford and Milton Keynes this year and upgrading the A428 to reduce journey times between Milton Keynes and Cambridge.
Prioritisation of a new Cambridge Cancer Research Hospital as part of the New Hospitals Programme bringing together Cambridge University, Addenbrookes Hospital and Cancer Research UK.
Support for the development of new and expanded communities in the Oxford-Cambridge Growth Corridor and a new East Coast Mainline station in Tempsford, to expand the region’s economy.
That she welcomes Cambridge University’s proposal for a new large scale innovation hub in the city centre. As the world’s leading science and tech cluster by intensity, Cambridge will play a crucial part in the government’s modern Industrial Strategy.
A new Growth Commission for Oxford, inspired by the Cambridge model, to review how best we can unlock and accelerate nationally significant growth for the city and surrounding area.
Appointment of Sir Patrick Vallance as Oxford-Cambridge Growth Corridor Champion to provide senior leadership to ensure the Government’s ambitions are delivered.
The Chancellor is expected to say:“Oxford and Cambridge offer huge economic potential for our nation’s growth prospects.
“Just 66 miles apart these cities are home to two of the best universities in the world two of the most intensive innovation clusters in the world and the area is a hub for globally renowned science and technology firms in life sciences, manufacturing, and AI.
“It has the potential to be Europe’s Silicon Valley. The home of British innovation.
“To grow, these world-class companies need world-class talent who should be able to get to work quickly and find somewhere to live in the local area. But to get from Oxford to Cambridge by train takes two and a half hours.
“There is no way to commute directly from towns like Bedford and Milton Keynes to Cambridge by rail. And there is a lack of affordable housing across the region.
“Oxford and Cambridge are two of the least affordable cities in the UK. In other words, the demand is there but there are far too many supply side constraints on economic growth in the region.”
Designed to take advantage of the region’s unique strengths and potential, the announcements are further evidence of the government’s modern Industrial Strategy in action as it seeks to create the right conditions to increase investment in our leading growth sectors like life sciences, artificial intelligence and advanced manufacturing.
She will add: “Taken together, these announcements show that for the first time a government is providing real leadership to deliver this project with a clear strategy for the entire region backed by funding for the housing and infrastructure we so badly need.“
The speech comes after the Chancellor last week announced a package of investment reforms to spur regional growth across the UK.
Rachel Reeves set out a new approach for the National Wealth Fund (NWF) and the Office for Investment (OfI) to work with local leaders to build pipelines of incoming investment and projects linked to regional growth priorities.
Putting local knowledge and leadership at the forefront, there will be tailored strategies for each region to ensure investment matches local needs and drives sustainable growth.
Putting the government’s Plan for Change into action, the Chancellor set out that the goal is to harness growth everywhere to rebuild Britain and usher in a decade of national renewal. Measures included the NWF trialling Strategic Partnerships in Greater Manchester, West Yorkshire, West Midlands, and Glasgow City Region and the OfI piloting an approach in the Liverpool City Region and the North East Combined Authority to connect their regions to central government and industry expertise in order to unlock private investment.
Science Minister, Lord Patrick Vallance said: “The UK has all the ingredients to replicate the success of Silicon Valley or the Boston Cluster but for too long has been constrained by short termism and a lack of direction.
“This government’s Plan for Change will see an end to that defeatism. I look forward to working with local leaders to fulfil the Oxford-Cambridge corridor’s potential by building on its existing strengths in academia, life sciences, semiconductors, AI and green technology amongst others.
“Together we will build the infrastructure and partnerships needed to join up this region’s academia, investors and business so that we can boost growth, deliver innovations and create new jobs that improve all our lives.”
Transport Secretary, Heidi Alexander said: “Well connected communities are a cornerstone for growth. East West Rail will not only provide better links and lasting benefits to Oxford and Cambridge, but to all the surrounding areas.
“I’m also delighted to announce a brand new station at Tempsford, which will be game changing for the region – allowing a new community and businesses to grow, unlocking faster and smoother access to opportunities, and delivering on the Government’s Plan for Change.”
S2G4KH Starling murmuration at RSPB Ham Wall, Avalon Marshes, Somerset
Responding to Rachel Reeves’ speech today on economic growth Roger Mortlock, CPRE countryside charity chief executive, said:
On airport expansion and the Lower Thames Crossing
‘The single biggest threat to the countryside is climate change. If the government expands Heathrow, Luton, City and Gatwick airports, the increase in carbon emissions will make a mockery of its commitment to reaching net zero by 2030.
‘Airport expansion will do nothing to boost UK growth. There has been no net increase in air travel for business purposes or in jobs in air transport since 2007. Recent research from the New Economic Foundation indicates that airport expansion will drive significant tourism revenue abroad, not bring it to the UK. To create the jobs of the future we need investment in low-carbon industries and transport, not more unsustainable expansion of the UK’s airports.
‘CPRE local groups in Bedfordshire, Hertfordshire, London and Sussex have been at the forefront of campaigns to prevent further airport expansion. If implemented, these proposals would have a devastating impact on some of the UK’s most valuable agricultural land, vital wildlife habitats and green spaces close to millions of people’s homes.’
On the Lower Thames Crossing
‘The proposed Lower Thames Crossing would also drive-up levels of unsustainable travel at a time when funding should be directed into sustainable public transport instead. CPRE Kent has highlighted how the crossing’s environmental and economic impacts on the local area would far outweigh any supposed benefits.’
On zonal planning reforms
‘We welcome the government’s plan to support the construction of more homes close to existing transport hubs, particularly in our towns and cities. Provided that they are genuinely affordable and built on brownfield land, these homes could help unlock growth by providing sustainable places to live close to where people already live, work and go to school.
‘Building more homes close to transport hubs must not be allowed to undermine the Green Belt, one of this country’s most successful spatial protections with huge potential to help address the climate and nature emergencies.’
On the planning regime for Nationally Significant Infrastructure Projects
‘It’s clear we’ve got to build a clean energy grid fit for the future but the best way to achieve this is with local communities involved from the start.
‘To speed up the planning system, the government should deliver on its commitment to fund hundreds of new planning officers.
‘The UK could learn from countries such as Ireland and Australia, which involve communities in decision making from the beginning, reducing the need for lengthy and expensive legal processes without eroding democracy. For everyone’s sake, we should be building consensus, not dismissing people with real ideas and solutions as ‘blockers’.
New funding agreed for bus fares, drug services and free school meals
Agreements have been reached separately with the Scottish Liberal Democrats and Scottish Green Party to support the SNP’s 2025-26 Budget.
Finance Secretary Shona Robison has announced she will table amendments to the 2025-26 Budget Bill to allocate £16.7 million funding to: • Bolster drug and alcohol services, including £1 million for specialist support for babies born addicted to drugs • Begin a £2 bus fare cap pilot in one regional transport area • Further strengthen support for hospices from £4 million to £5 million • Increase Nature Restoration by £3 million to its highest ever level • Invest in targeted support for the College sector and protect Corseford College • Extend free school meal eligibility in S1-S3 in eight local authority areas for pupils in receipt of Scottish Child Payment • Offer flexibility for Orkney Island Council in terms of capital and resource funding
Ms Robison said: “We are determined to deliver on the issues that matter most to the people of Scotland – and that is why this Budget invests in public services and in eradicating child poverty, acts in the face of the climate emergency, and supports jobs.
“The First Minister was clear that we would bring forward a budget by Scotland for Scotland, and the negotiations we have taken forward have been in that spirit. These additional initiatives demonstrate the value of a progressive approach and dialogue.
“During every stage of this process the Liberal Democrats and the Greens have engaged in our discussions in a positive and constructive manner.
“Through seeking compromise I believe we are delivering a budget that will strengthen services and support our communities. With the agreements with these two parties now in place this will secure a majority in parliament in support of the Budget Bill.”
The Scottish Greens will support the forthcoming budget, following confirmation that the Scottish Government have agreed to the party’s proposals on record climate funding, the expansion of free school meals and trialling a £2 cap on bus fares.
As a result of proposals tabled by Scottish Green negotiators, the Government’s budget will now be changed to include the roll-out of free school meals to thousands more young people and a year-long regional trial of a £2 cap on bus fares.
Other Green proposals accepted include increasing funding for nature restoration to a record £26m, more free ferry travel for young island residents, free bus travel for asylum seekers and help for first time home buyers by increasing tax on the purchase of second/holiday homes.
The Scottish Greens have confirmed they’ll be backing the Scottish Government’s budget@Ross_Greer says it follows promises on school meals, a £2 bus fare cap trial and more money for nature restoration pic.twitter.com/rvtCo7W1pv
Scottish Greens finance spokesperson Ross Greer MSP said: ““The Scottish Greens put climate action, tackling child poverty, cheaper buses and ferries and funding for schools at the heart of our budget negotiations. We have delivered progress on all of these fronts, so our MSPs will be voting for the budget.
“No young person should be sitting in school hungry. As a result of our work, thousands more pupils in S1-S3 will now receive a free school meal. This will build on the success of expanding free school meals in primary schools, a policy delivered by the Scottish Greens a few years ago.
“Our Green MSPs have also secured a year-long regional trial where bus fares will be capped at £2, because we know the cost of public transport needs to come down. This also builds on the success of free bus travel for young people, another Scottish Green policy we made a reality.
“With climate chaos all around us, we have worked to deliver record funding for nature restoration and our environment. These Green projects are creating well-paid jobs in communities across the country, particularly in rural areas.
“From schools to libraries to social care to bin collections, our councils deliver the services we all depend on. We have worked with Scottish Green councillors to ensure that this year’s budget delivers a fair deal for local councils, including an end to the Council tax freeze.
“These changes secured by Scottish Green MSPs will lift more children out of poverty, reduce the cost of public transport, create good quality jobs, tackle the climate crisis and protect local services. That’s in stark contrast to Labour, who agreed to let the SNP’s budget pass without making any attempt to improve it. If you want action to help people and planet, voting Scottish Greens is the best way to deliver it.”
As a result of Scottish Green negotiations, this budget includes:
Making public transport cheaper: A year long regional trial of capping bus fares at £2 starting 1st January 2026, free bus travel for people seeking asylum and free inter-island ferry travel for young island residents
Action to tackle child poverty: The expansion of free school meals to thousands of S1-S3 pupils who receive the Scottish Child Payment, starting with eight councils areas in August 2025.
Record climate action: A record £4.9bn of funding for climate action and nature restoration.
Progressive taxation to support public services: Increased tax on the purchase of second or holiday homes and moving forward with proposals for a Cruise Ship Levy, the consultation for which will launch in February
Protecting local services: A real-term funding increase for local councils, and progress on giving councils more direct power through a consultation on devolving Parking Charge Notices (parking fines)
Commenting on the deal, Scottish Lib Dems leader Mr Cole-Hamilton said:“We have today reached an agreement with the Scottish Government. There is a long list of policies and projects that we’ve won for our constituents, and for Scotland as a whole, and so we will be voting for the Budget.
“In a Parliament of minorities Scottish Liberal Democrats will always act responsibly and try to find common ground.
“As a result, Lib Dem priorities will now be backed by hundreds of millions worth of government investment. I am pleased that we have secured money for new drug and neonatal services. As a former youth worker I know how important it is to give children the best start in life and few have it tougher than babies who are born addicted to drugs.
“Alongside the long list of Lib Dem demands baked into the first draft of the budget, we have also secured additional money for new college programmes focused on care and offshore wind, more money for hospices, and backing for the young people attending Corseford College.
“Scottish Labour’s decision to abstain on the Scottish Budget confirmed once and for all that there would be no early election. This was always very unlikely and that’s why all along Scottish Liberal Democrats have sought to shape the budget to unpick some of the damage caused by years of SNP neglect.
“This budget shows that by backing the Liberal Democrats you get a local champion focused on the issues that matter the most.”
As there will be no early election, the budget is a means to unpick some of the damage caused by SNP neglect.
From a new Belford Hospital in Fort William to a new Eye Pavilion in Edinburgh, you can already see significant Liberal Democrat demands baked into the budget. pic.twitter.com/2cdFBlUCRI
Prime Minister and Chancellor to tell leading CEOs that Britain is back and open for business.
Changes to pension rules will allow trapped surplus funds to be invested in the wider economy, fuelling economic growth.
Move is part of government action to remove blockages that are stopping growth – from regulation to planning processes.
Working people and businesses are set to benefit from new rules that will give more flexibility over how occupational defined benefit pension schemes are managed, as the government continues to remove blockages that are inhibiting its growth agenda that will improve lives of working people across the UK.
Hosting a meeting with leaders of Britain’s biggest businesses in the City of London today (Tuesday 28 January), the Prime Minister and the Chancellor will set out the details of changes and tell some of the country’s leading CEOs that Britain is back and open for business.
At the roundtable, the PM and Chancellor will outline how restrictions will be lifted on how well-funded, occupational defined benefit pension funds that are performing well will be able to invest their surplus funds.
This follows action taken by the government last week to bring a renewed focus on growth from some of the UK’s biggest regulators, a shake-up to legal challenges on planning applications, and new “brownfield passports” to speed up housing in commuter hotspots.
Prime Minister, Keir Starmer said: “The number one mission of my government is to secure growth, drive higher living standards for everyone, and get more money into people’s pockets.
“To achieve the change our country needs requires nothing short of rewiring the economy. It needs creative reform, the removal of hurdles, and unrelenting focus. Whether it’s how public services are run, regulation or pension rules, my government will not accept the status quo.
“Today’s changes will unlock billions of investment, pushing forward in delivering my Plan for Change.”
Chancellor of the Exchequer, Rachel Reeves said: “I know this government and businesses are united on growth being the top priority for our economy, which is why I am fighting every day to tear down the biggest barriers to growth, taking on regulators, planning processes and opposition to this urgent mission.“
The Prime Minister and Chancellor will tell CEOs from some of the UK’s most successful companies that that the government is seeking to create the best possible conditions for the private sector to thrive.
They will promise to work in partnership with businesses, to deliver high-quality jobs across the country, and the economic growth that will fund the schools, hospitals and roads that we all rely on.
Pension trustees and the sponsoring employers could then use this money to increase the productivity of their businesses – to boost wages and drive growth or unlock more money for pension scheme members.
High growth and more productive businesses boost the size of the economy which in turn will fund our vital public services.
This more efficient approach demonstrates that the government has been listening to business, and will give businesses more flexibility, allowing trapped surplus funds to be invested into the wider UK economy, or given to scheme members as additional benefits.
Where trustees agree to share a portion of scheme surplus with a sponsoring employer, the employer may choose to invest these funds in their core business, for example to purchase equipment or supplies, and/or provide additional benefits to members of the pension scheme.
Approximately 75% of schemes are currently in surplus, worth £160 billion, but restrictions have meant that businesses have struggled to invest them.
These reforms build on the Chancellor’s Mansion House reforms which will create pension megafunds as part of the biggest set of pension reforms in decades, unlocking billions of pounds of investment in exciting new businesses and infrastructure and local projects.
Over £1.1 trillion is held by pension funds in the UK and defined contribution pension schemes are set to manage £800 billion worth of assets by the end of the decade. This Government is determined to encourage these pension funds to deliver investment and drive economic growth – which is the only way to make people better off.
Jonathan Lipkin, Director of Policy, Strategy & Innovation at the Investment Association said: “Unlocking surplus capital from defined benefit schemes has the potential to both boost UK growth by opening up investment opportunities for companies and their stakeholders, as well as the possibility of higher pensions for scheme members.
“With around £1.1 trillion in assets, defined benefit schemes already make a significant contribution to the funding of the UK economy and public services.
With the right guardrails in place, the government’s proposals could help channel more funding into the economy, by enabling schemes to invest more widely and take on greater risk, while allowing for members to receive an uplift to pension benefits.
Zoe Alexander, Director of Policy and A2dvocacy at the Pensions and Lifetime Saving Association, said: “The PLSA backs surplus release, with the right protections in place to ensure member benefits are secure.
“Surpluses could be used to increase DB scheme benefits or could be redirected to fund contributions to sponsoring employers’ defined contribution workplace schemes.
“Lowering the legislative threshold for allowing returns of surplus could potentially encourage trustees, in conjunction with their employers, to adopt a more ambitious mindset and take on slightly riskier investment strategies for their DB assets, including greater investment in UK assets.”
Patrick Heath-Lay, Chief Executive Officer for The People’s Pension, said: “It is positive news to see the government is looking at the pension industry as a whole. This will help unlock more of the £2.9trillion that is held in UK pension savings, to benefit savers and the economy alike.
“We look forward to other pension schemes following our plans and outlining how they will invest in private markets.”
The roundtable discussion will focus on the government’s partnership approach to growth with business, including how regulation can better support the Growth Mission, and the role of business in achieving the UK’s ambitions in AI which the Prime Minister unveiled earlier this month. Every regulator has a role to play in the Growth Mission and the Chancellor is hosting a series of roundtables with the 17 regulators that the Prime Minister wrote to in December, to discuss their proposals to support growth in the coming year.
The meeting with CEOs comes days after the Chancellor’s return from the World Economic Forum, where she pitched Britain’s investment credentials and let global business leaders know that the UK is open for business again.
She championed early reforms to planning, pensions, and regulation that make it easier to do business in Britain and remove barriers investors from overseas face.
On Wednesday, the Chancellor will make a speech where she will set out plans to push through further planning reforms to get Britian building again, rip up regulatory barriers so we can encourage more investment into the UK and announcements to boost trade and investment.
The government will set out the details of the surplus policy in its response to the Options for Defined Benefits consultation, due this Spring.
Chancellor continues ‘bold reform’ of the planning system in England to deliver on the Plan for Change
Chancellor reveals new plans for more houses near commuter train stations to kick start economic growth, as government continues its bold reform of the planning system to deliver on the Plan for Change for working people.
Sweeping reforms under the Planning and Infrastructure Bill will take an axe to red tape that slows down approval of infrastructure projects and the government will work with Parliamentarians to ensure a smooth and speedy delivery.
Chancellor highlights in its first six months the government has already taken 13 planning decisions and approved 9 nationally significant infrastructure projects spanning airports, data centres, energy farms, and major housing developments.
Untapped land near commuter transport hubs will be unlocked to build new housing for working people, as part of ‘bold new steps’ to reform the planning system and unlock growth to deliver win-win outcomes for the country and the economy. The reforms will create secure, high-paying jobs and deliver major infrastructure faster to bolster public services and lower bills.
Ahead of the Chancellor’s speech next week on economic growth, the government has today announced how it will go further and faster to deliver Plan for Change milestones of 1.5 million new homes over five years and 150 decisions on major infrastructure projects by the end of the Parliament.
It follows the ambitious reforms unveiled by the Chancellor in July and delivered by the Deputy Prime Minister at the end of last year through publication of the overhauled National Planning Policy Framework.
The government’s next steps on planning reform include streamlining a set of national policies for decision making to guide planning decisions taken by local authorities and promote housebuilding in key areas.
In a major new growth push, the government will ensure that when developers submit an application for acceptable types of schemes in key areas – such as in high potential locations near commuter transport hubs – that the default answer to development is ‘yes’.
This will unlock more housing at a greater density in areas central to local communities, boosting the government’s number one mission to grow the economy. These measures will transform communities, with more shops and homes nearer to the transport hubs that working people rely on day in day out.
As part of these measures, the government will streamline decisions on critical infrastructure projects by slashing red tape in the planning system which is holding up projects. That means looking again at the input from expert bodies who developers are required to consult – and replacing the current systems of environmental assessment to deliver a more effective and streamlined system that reduces costs and delays for developers, whilst still protecting the environment.
The Chancellor also revealed today that she is championing a regeneration project around Old Trafford in Manchester that will see new housing, commercial and public space as a shining example of the bold pro-development model that will drive growth across the region, with authorities exploring setting up a mayoral development corporation body to redevelop the area.
The government is also working with Greater Manchester to release growth-generating land around transport hubs through local development orders, such as around Castleton Station, with the potential for this innovative use of existing powers to kickstart building in these sites to be a blueprint for the rest of the country so that every corner of the UK benefits from growth.
The new proposals tackle the dire inheritance head on. Last year homebuilding fell below 200k and permissions reached their lowest for over a decade, which is why the government is taking radical action necessary to reverse this trend and deliver the homes necessary to reach 1.5 million homes over this Parliament.
This government is turning the page on the decline and decay of the past and choosing growth with a significant number of planning decisions already made by Ministers since July. This includes 13 planning decisions taken by Ministers over 90% of which within the target timeframe, and 9 nationally significant infrastructure projects approved, collectively spanning airports, data centres, solar farms and major housing developments such as the Expansion of London City Airport, a data centre in Buckinghamshire and a new M&S store in Oxford Street, London.
The government has committed to making 150 decisions on these major economic infrastructure applications over this Parliament, more than doubling the decisions made in the previous Parliament and more than 130 made since 2011.
This will unlock the growth necessary to deliver win-win outcomes for the country and the economy – creating stable and high-paying jobs, building more affordable homes, and delivering critical infrastructure faster to bolster public services and lower bills – while improving the environment where it matters most.
Chancellor of the Exchequer, Rachel Reeves said: “I am fighting every single day in our mission to kick start the economy, deliver on our Plan for Change, and make working people better off. That includes avenues that others have shied away from.
“Too often the answer to new development has been “no”. But that is the attitude that has stunted economic growth and left working people worse off. We need to do things differently and that journey began as soon as I started at the Treasury in July. These are our next steps and I can say for certain, there is more to come.”
Deputy Prime Minister and Secretary of State for Housing, Angela Rayner said: “From day one I have been clear that bold action is needed to remove the blockers who put a chokehold on growth. That’s why we are putting growth at the heart of our planning system.
“Growth means higher wages, better living standards, families raising their children in safer homes, and the next generation taking their first steps onto the housing ladder.
“This year we will go even further to make the dream of homeownership a reality for millions and fix the housing crisis we inherited for good – getting more shovels in the ground to build the homes and vital infrastructure that our communities so desperately need.”
Growth is the number one mission of the Labour Government’s Plan for Change, so we can put more money in people’s pocket. Today the Chancellor is setting out further action on the government’s growth mission by announcing the following:
Planning
The Planning and Infrastructure Bill will provide the powers to accelerate the infrastructure and homes needed to deliver on the government’s ambitions – and fast track critical infrastructure such as windfarms, power plants, and major road and rail projects. Today the government is confirming for the first time that the Bill will be introduced in Spring and we will work with Parliamentarians to ensure a smooth and speedy delivery.
Further detail on the Bill is being published today in a working paper on streamlining decisions on nationally significant infrastructure projects, including reducing the burden on developers by making consultation requirements more proportionate, strengthening statutory guidance to ensure they are clear over what is and is not required when submitting planning applications, and ensuring that National Policy Statements are updated at least every five years to give more certainty to developers, speeding up decisions.
Previous working papers have already set out reforms to the operation of planning committees, and an overhaul of the way developers can discharge their environmental obligations so that they can crack on with building.
The Chancellor is today also announcing reform to the statutory consultee system, which requires developers to consult local communities and expert bodies when making planning decisions. This often means too many organisations consulted on too wide a range of issues, clogging up much-needed development.
Today the government has declared a moratorium on any new statutory consultees and the Chancellor and the Deputy Prime Minister will review in the coming weeks the existing arrangements to make sure they meet this Government’s ambitions for growth.
This follows changes announced last week to the rules around challenging major infrastructure projects through the courts – stopping blockers getting in the way of the Government’s Plan for Change and getting nuclear plants, trainlines and windfarms built quicker. Current excessive rules mean unarguable cases can be bought back to the courts three times.
This will be overhauled, with just one attempt at legal challenge for hopeless cases that would previously have caused much more delay.
Environment
The government is also reforming environmental impact assessments, which have strayed from their original purpose of supporting decision making and have become voluminous and costly documents that too often support legal challenges rather than the environment.
They will be replaced by Environmental Outcome Reports which will be simpler and much clearer, which will support growth by saving developers time and money, whilst still protecting the environment. The government will publish a roadmap for the delivery of these new Environment Outcomes Reports in the coming months.
This follows a working paper on development and nature published by the government before Christmas setting out a new approach that will turbocharge the delivery of housing and infrastructure while securing positive environmental outcomes.
Developers will be able to pay into the Nature Restoration Fund which will allow them to discharge relevant environmental obligations for protected sites and species and focus on building, safe in the knowledge that appropriate action will be taken to support nature’s recovery.
Major infrastructure
A working paper is being published setting out the government’s plan for its 10 Year Infrastructure Strategy, which will be focussed on infrastructure’s role in enabling resilient growth, delivering clean energy by 2030 and net zero by 2050 while securing the growth benefits of the transition, and improving public services.
The working paper seeks industry views as part of the government’s continued consultation on the development of the strategy which will be published in late Spring.
Jennie Daly, CEO of Taylor Wimpey said:“We continue to be impressed by the speed with which the government has gripped the need for planning reform to deliver much needed new housing supply. New high-quality housing and the infrastructure it brings are essential drivers of economic growth.
“We welcome the commitment from the government to introduce the Planning and Infrastructure Bill as a priority in the spring, and we look forward to supporting the promised consultation work on reforming the planning system to expedite decisions and overcome local barriers to growth.”
Mark Reynolds, Mace Group Executive Chairman and Co-Chair of the Construction Leadership Council said:“When the government and the Construction sector work in partnership we can unlock growth of up to 2% of GDP.The simplification and streamlining of the planning system is a significant contributor to this so the announcements today are a welcome development which could deliver £2 billion per year in savings once fully implemented.
“In addition the upcoming publication of the 10 year National Infrastructure Strategy is an opportunity to set out plans for ambitious growth and chart a direction for the industry, instilling confidence in businesses to invest in skills, innovation and deliver profitable growth, we look forward to contributing to its success.”
Neil Jefferson, CEO of Home Builders Federations said:“Identifying more land for development and removing the treacle from the planning process that delays applications is essential if we are to increase housing supply.
“The swift moves to address these blocks in the planning system are very welcome and will pay dividends if the other constraints on housing supply can be tackled. Housing delivery is dependent upon a range of factors, of which planning is a major one, and these changes underline the government’s commitment to increasing supply.”
Mayor of Greater Manchester, Andy Burnham said: “With our devolved powers we’re mobilising the whole Greater Manchester system to lock in growth for the next decade and reap the rewards for our city-region and UK plc.
“The project around Old Trafford represents the biggest opportunity for urban regeneration this country has seen since London 2012 and is a key part of our 10-year plan to turbocharge growth across Greater Manchester.
“We look forward working with the Government on moving freight away from the site around Old Trafford to new locations to open up capacity our rail network, and unlock massive regeneration potential – delivering benefits across the whole of the North.”
As part of its ‘relentless focus’ to get Britain building and achieve the ambition to build 1.5 million new homes over five years, the government has already:
Overhauled the National Planning Policy Framework, including new and higher mandatory housebuilding targets for councils, a comprehensive modernisation of the Green Belt, and far greater support for growth-supporting development such as labs and datacentres.
Launched a New Homes Accelerator group to unlock thousands of new homes currently in the planning system.
Published a series of working papers on further reforms to the planning system:
‘brownfield passports’, designed to ensure that where planning proposals meet design and quality standards, the default answer to planning permission is ‘yes’,
development and nature recovery, detailing a new approach for developers to discharge environmental obligations through payment into a Nature Restoration Fund which then allows them to crack on with building,
planning committees, proposing a national scheme of delegation to speed up the approval process and provide greater certainty to developers.
Set up an independent New Towns Taskforce, as part of a long-term vision to create largescale communities of at least 10,000 new homes each.
Awarded £68 million to 54 local councils to unlock housing on brownfield sites.
Awarded £47 million to seven councils to unlock homes stalled by nutrient neutrality rules.
Extended the existing Home Building Fund for this year providing up to £700 million of vital support to SME housebuilders, supporting the delivery of around 12,000 additional homes.
Confirmed that government investment in housing will increase to £5 billion for this year, including an extra £500 million in new funding for the Affordable Homes Programme to deliver tens of thousands of new affordable and social homes across the country.
First Minister thanks people for patience as recovery operation continues
A further meeting of the Scottish Government’s Resilience Room (SGoRR) was chaired by First Minister John Swinney last night to coordinate the recovery response to Storm Éowyn.
Due to the severity and impact of the storm, there is significant disruption to parts of the country. This includes around 35,000 properties without power and continued transport disruption with road closures and rail, bus, flight and ferry cancellations. It is expected to take some time to get all services fully restored.
Utility companies, national agencies and local authorities are working at pace to restore power and assess the impact, including responding to significant damage, removing fallen trees and debris, to ensure services can fully resume in the coming days.
The First Minister joined a Ministerial COBR meeting chaired by the Chancellor of the Duchy of Lancaster Pat McFadden earlier on Saturday evening. The First Minister also spoke with the Prime Minister to discuss the ongoing response to Storm Éowyn and the impact on Scotland.
First Minister John Swinney said: “I want to thank everyone who followed Police Scotland advice not to travel and express my sincere gratitude to the emergency services and to those working in the public, private and third sector who are continuing to support people and communities across the country.
“With yellow warnings in place for wind, snow and ice over the weekend, it is clear the severity of Storm Éowyn will continue into next week and this will have an impact on the speed at which utilities and local services can fully resume.
“Given the damage and disruption facing the network across the United Kingdom, utility companies are under significant pressure and are working in challenging conditions.
“I have stressed the importance of getting power restored as quickly as is practically possible and have been assured that assessments are being made at pace to ensure power is restored to affected properties in Scotland as soon as possible.
“Alongside our partners, Ministers are being updated regularly and ensuring all steps are being taken.
“I am pleased at the progress made to restore power to many communities over the course of today however a significant number of properties remain without power. Utility companies are continuing to provide support to customers, including ensuring provisions are in place for the most vulnerable.
“I want to thank people for their continued patience and encourage them to take extra care and look out for each other, particularly those who are supporting vulnerable neighbours and family members.
“As we look ahead to Monday, partners are working at pace to ensure services can resume next week. Local authorities – who are responsible for school closures – will be working to ensure all buildings meet the required safety standards to reopen safely to pupils. We would expect decisions on schools to be clearly communicated by local authorities to parents, pupils and staff, with as much advance warning as possible, and would encourage all parents to follow that advice.
“People should prepare for continued disruption, especially in areas that have been impacted by a loss of power, and I encourage everyone to follow advice being issued by local authorities, as well as continuing to follow updates from national agencies.”
SGoRR was attended by the Deputy First Minister Kate Forbes, Transport Secretary Fiona Hyslop, Justice and Home Affairs Secretary Angela Contance, Cabinet Secretary for Health and Social Care Neil Gray, Education Secretary Jenny Gilruth, Rural Affairs and Islands Secretary Mairi Gougeon, Acting Net Zero and Energy Secretary Gillian Martin and Cabinet Secretary for Constitution, External Affairs and Culture Angus Robertson. They were joined by representatives from the Met Office, Police Scotland, Transport Scotland, SEPA, transport and utilities companies and resilience partners.
The latest Met Office weather warnings are available on the Met Office website.
Flood alerts are issued by the Scottish Environmental Protection Agency and can be viewed on their website.
Follow Traffic Scotland for the most up-to-date information on the trunk roads throughout the warning periods, via their website, social media channels and radio broadcasts. Updates on ScotRail services and road conditions are available online.
To report a power cut or damage to electricity power lines or substations call the SP Networks national Freephone number 105. More information on what to do during a storm can also be found on SP Energy Website.
During a power cut firefighters can be called to fires started by candles or portable heaters. For advice on how to stay safe during a power cut visit Scottish Fire and Rescue Website.
Newly revealed figures have highlighted the scale of sewage pollution in Scotland, with 165 spills recorded at the Seafield sewage treatment works in Edinburgh last year. These spills resulted in partially treated sewage being discharged into the sea for a total of 890 hours, raising serious concerns about environmental protection and public health.
Managed by the French utility company Veolia under a Private Finance Initiative (PFI) agreement with Scottish Water, Seafield is one of nine sewage sites operating under similar contracts.
Across these facilities, more than 500 sewage overflows were reported in 2023, amounting to a total of 3,500 hours of discharge. Major spillages were also recorded at locations such as Newbridge, Blackburn, Whitburn, and East Calder.
Scottish Labour MSP for the Lothian Region, Foysol Choudhury, has called for urgent action to address the ageing infrastructure and improve oversight of sewage discharges.
MSP Choudhury said: “The scale of sewage pollution in Scotland is unacceptable. Communities across the country, including here in Edinburgh, deserve clean beaches, rivers, and waterways.
“The current system is failing, and this must change.”
Mr. Choudhury has seen the Seafield site become a source of concern for residents, particularly after the Scottish Environment Protection Agency (SEPA) issued a warning in July 2023 advising against swimming at Portobello Beach due to high bacteria levels.
In May 2024, residents were encouraged to report odour and noise issues from Seafield via the Leith Links Community Council’s online nuisance report form to ensure complaints are sent directly to elected officials, including MSPs and councillors, to keep the pressure on to address these longstanding problems.
Choudhury said: “The Seafield Sewage Treatment Works has exposed local Leithers to a series of appalling odour and sewage leaks. What impact does this have on the local environment like the Water of Leith and the Forth?”
“Scotland’s beaches and waterways are among our most cherished natural assets. It’s not enough for operators to claim compliance with licenses— people deserve transparency and action to safeguard our environment and health.”
ACCOUNTABILITY FOR PFI CONTRACTS
The Seafield plant and others like it are managed under PFI contracts, but MSP Choudhury has questioned whether this model delivers for communities. In the Highlands, a PFI sewage plant has already been brought back under public control following the expiration of its contract.
Foysul Choudhury continues to raise questions and engage with local communities to demand greater accountability from operators and stronger action from the Scottish Government when it comes to polluting Scotland’s waterways.
LOOKING AHEAD
The PFI contract for Seafield is due to expire in 2029, at which point the plant will revert to public control under Scottish Water. Mr. Choudhury hopes that this transition is used as an opportunity to overhaul the system, upgrade facilities, and end the cycle of sewage spills polluting Scotland’s rivers and beaches.
A spokesperson for Veolia responded: “We operate the Seafield Waste Water Treatment works in line with the SEPA licence conditions and everything that leaves the plant has been treated.
“Even during significant rainfall, the works are designed and operated to ensure all wastewater goes through our screening, grit removal and settlement processes before being discharged.
“We work with the local community, SEPA and Scottish Water to provide an effective service for residents and the environment and support continuous improvement works. We have a doors open policy where members of the public, councillors, MPs and MSPs can visit the site.”
At the Seafield Wastewater Treatment Plant, there is only one exit point of the plant with two outfalls. This is where final effluent (fully treated wastewater) leaves the facility.
In times of significant rainfall, contents from the settled storm overflow or settled primary overflow tanks would also be discharged from this point.
These discharges are licensed and only take place under significant rainfall events in full accordance with the site’s licence.. All discharges are treated to some extent and no raw sewage is discharged from the plant.
These should not be classed as “dumping events”. Storm discharges are continuously monitored, and the data shared with Scottish Water and SEPA
Veolia did operate a wastewater contract in the Highlands with Scottish Water and at the end of its contract period it transitioned back to Scottish Water as originally agreed after 25 years of successful service. This was not due to any inference of poor performance.
Veolia is required under the licence at Seafield to report data to SEPA and this has always been done in compliance with the licence.
As Veolia is a private company working with Scottish Water, our operations are sampled every day, which is more frequent than regulated water companies.
This is an additional level of scrutiny and gives greater assurances that we are compliant with our SEPA licence.
A package of investment reforms to spur regional growth across the country is being announced to attract investment in all corners of the UK
Ahead of her speech next week on economic growth, the Chancellor has announced a new approach across the National Wealth Fund (NWF) and the Office for Investment (OfI), which will work with local leaders across the UK to support places to build pipelines of incoming investment and projects linked to regional growth priorities.
This new approach will put local knowledge and leadership at the forefront, with tailored strategies for each region, ensuring investment matches local needs and drives sustainable growth. Putting the government’s Plan for Change into action, the goal is to harness growth everywhere to rebuild Britain and usher in a decade of national renewal.
The National Wealth Fund will also trial Strategic Partnerships starting in Greater Manchester, West Yorkshire, West Midlands, and Glasgow City Region. These partnerships will provide enhanced, hands-on support with tailored commercial and financial advice to help regions develop and secure long-term investment opportunities.
This initiative will play a key role in unlocking investment across sectors such as technology, manufacturing, and green energy, helping to fuel the next wave of economic growth.
This builds on the positive impact the NWF has already had in supporting regional growth. In the last six months, the NWF has created 8,600 jobs and unlocked nearly £1.6 billion in private investment across various sectors, including green technologies, digital infrastructure, and manufacturing.
The news comes the same day as Regional Mayors are set to meet with the Deputy Prime Minister and other ministers from MHCLG, HMT, and DWP in Rotherham to discuss key regional priorities and how government can further support them to achieve their growth ambitions. This meeting will inform the government’s ongoing efforts to align national and local growth strategies and unlock investment opportunities in each region.
On top of this, OfI is working closely with local leaders and industry to turn regional growth plans into commercially attractive investment opportunities. Starting with Liverpool City Region and North East Combined Authorities, the OfI will pilot an approach that connects regions to central government and industry expertise to support them in unlocking private investment.
These initiatives will test how government can work in partnership with regions to see where investment can play a meaningful role in driving growth, which is the best way to improve living standards and put more money in working people’s pockets.
Launching this initiative in Scotland comes in recognition of the nation’s potential to drive forward ambitious projects in support of this government’s growth and clean energy missions.
The government is committed to working in close partnership with the devolved governments through the National Wealth Fund to maximise investment opportunities in Scotland’s cities to deliver growth.
Our cities have huge potential to drive improved living standards and spread opportunities across their wider regions. Bringing the productivity of major cities like Manchester, Birmingham, Leeds, and Glasgow to the national average would deliver an extra £33 billion in additional Gross Value Added (GVA) annually, contributing significantly to the government’s Plan for Change economic growth objectives.
The action today comes as the Chancellor returns from Davos, where she has been making the case for investment in the whole of the U.K. Since entering office, the government has been focused on restoring economic stability, which is the foundation of growth, to give businesses the confidence to invest and expand in the UK.
Securing investment is also central to the government’s mission to deliver economic growth which will create jobs, improve living standards, and make communities and families across the country better off as part of our Plan for Change.
Chancellor of the Exchequer, Rachel Reeves MP said: “At Davos I’ve been telling some of the world’s biggest investors that the U.K. is a safe bet for their investments, whether that’s in London or Leeds.
“And in our mission for growth, it’s critical that we are growing every region’s local economy, that’s why we are doing things differently.
“Those with local knowledge and skin in the game are best placed to know what their area needs, and our transformative reforms will put local leaders at the centre of a network that will connect them with investment opportunities, bringing wealth and jobs to their communities.”
Deputy Prime Minister, Angela Rayner said: “Growth is at the top of this government’s agenda, and we want to see that growth in every region across the country. That means giving local leaders the powers they need to get their local economies moving, which is exactly what we are doing with our Devolution Priority Programme.
“Today I am meeting with England’s regional Mayors to talk about how to realise their communities’ huge potential for growth – because they know their areas best.”
Business and Trade Secretary, Jonathan Reynolds said:“The UK is one of the most connected places in the world to do business, and investors should be in no doubt that Britain is back on the global stage, helping attract investment into the most productive parts of the UK economy.
“Our forthcoming Industrial Strategy will supercharge eight key growth sectors in the UK economy, unleashing the full potential of our cities and regions and giving businesses the certainty they need as we lead the charge for the innovation and jobs of the future.”
Scottish Secretary, Ian Murray said:“It’s fantastic to see that Glasgow has been chosen as one of four areas where the UK Government will develop investment pipelines. The move will see us engage with local leaders and tap into their expertise to find out exactly where we can best put to use support from avenues like the National Wealth Fund and Office for Investment.
“Encouraging regional growth is key to our Plan for Change, to speed up investment in business and industry, creating jobs and opportunity right across the UK.
“The potential for growth in Scotland is phenomenal and we’ll explore every opportunity to maximise that growth, to put more money in people’s pockets and see living standards improved everywhere.”
Further action to drive regional growth will also include a review of the Green Book, the government guidance on value for money, and how it is being used across the public sector to provide objective, transparent advice on public investment across the country. This review will report back at the conclusion of the Spending Review this summer.
There will also be a new senior taskforce, chaired jointly by HMT and MHCLG permanent secretaries, who will work with the Greater Manchester Combined Authority to explore further devolution opportunities in skills, transport, and business support.
The government will expand this engagement to other Mayoral Authorities through senior official working groups, to explore how national government can work with local leaders to ensure they have the appropriate levers available to deliver their Local Growth Plans and unlock economic growth across England.
Mayors are already delivering transformative outcomes, such as Greater Manchester’s Adult Skills Fund, which has supported 17,000 residents in accessing new learning opportunities, and the Bee Network, which is integrating public transport across the region.
This follows the English Devolution White Paper, published at the end of last year, which set out an enhanced devolution framework to ensure strategic authorities have the powers and tools they need to meet local growth ambitions.
Tracy Brabin, Mayor of West Yorkshire said:“This government knows that the best way to achieve its growth mission is by working with mayors and backing our Local Growth Plans to boost the economy in all parts of the country.
“With the National Wealth Fund based here in the heart of the North, driving forward transformational investments in partnership with local leaders, we will deliver the well-paid jobs and the vibrant, well-connected places our communities need and deserve.”
Mayor of Greater Manchester, Andy Burnham said: “Greater Manchester is growing faster than the UK economy but we have got so much more to give to UK plc.
“The reforms announced today will help us to do just that and go much further and faster in support of the national growth mission.
“We particularly welcome the opportunity to work with Government to review the Green Book and how it is used to steer public investment, as the current approach is not working for the North of England.”
Richard Parker, Mayor of the West Midlands said:“This is a great show of faith by the Government in our regions to deliver the growth and high-quality jobs the country needs. The West Midlands is a hotbed of innovation and business talent ready to support the Government’s mission for growth.
“With the Government, I’m focused on delivering growth and with plans for a gigafactory, and three Investment Zones secured, we’re already making progress on creating thousands of new jobs. At the same time I am equipping our people with the skills to succeed in the industries of the future such as advance manufacturing, life sciences and green technology.
“With this new Strategic Partnership, the West Midlands will be one of the best places to do business, with an economy that creates real opportunities and benefits everyone across our communities.”
Cllr Susan Aitken, leader of Glasgow City Council and chair of the Glasgow City Region Cabinet said:“This is welcome recognition of the Glasgow City Region’s role as Scotland’s metro region, a vital motor in delivering prosperity and with a track record of securing and delivering on investment.
“Cities and city regions are the vital engine rooms of local and national economic growth and Glasgow’s selection as one of the four strategic partnerships to work with Government on maximising investment opportunities will, I’m sure, contribute to our ambition to become the most innovative, resilient and inclusive regional economy in the UK.”
Review into business support for disabled and long-term sick
A new “Keep Britain Working” review has been launched today (Friday 24 January) to explore how to urgently support people with long-term illnesses or disabilities back into work, and to stay in work.
Independent review led by former John Lewis boss, Sir Charlie Mayfield, officially underway.
Review to investigate how government and businesses can work together to support ill and disabled people into work, boost living standards and grow the economy as part of Plan for Change.
Intervention comes as government is expected to publish major health and disability benefit reforms this Spring.
Former chairman of John Lewis Partnership, Sir Charlie Mayfield, will lead the Keep Britain Working Review to investigate the factors behind spiralling levels of inactivity, and how government and businesses can work together to turn this around, to get Britain working again.
The review will be the first of its kind, and following the launch of the Get Britain Working White Paper, will be one part of the government’s Plan for Change to kickstart economic growth in partnership with businesses, drive up prosperity and raise living standards across the UK.
With over a third of working age people reporting a long-term health condition and around a quarter classed as disabled, the latter group being three times more likely to be not in work or looking for work, the scale of the challenge is stark.
Beginning today, the review will move at pace concluding in the Autumn, with Sir Charlie Mayfield meeting businesses and health and disability organisations across the country to identify the scale, trends, obstacles and opportunities for companies when recruiting and retaining ill and disabled people.
This phase will conclude in Spring with a report based on the findings from his conversations with company bosses, employees who have been supported to stay in work, and organisations who help those out of work, to inform wider engagement. Recommendations to the government are expected later this year.
This will be part of the government’s plan to boost employment by breaking down barriers to opportunity and improving people’s living standards through work and life-changing support, building on the latest data this week showing real earnings have increased by 2.5% on the year.
Sir Charlie Mayfield, who was also Chair of the British Retail Consortium and Chair of the UK Commission for Employment and Skills, said: “Losing people from the workforce because of ill-health or disability is bad for many of the individuals, for the businesses employing them, and for the wider economy.
“It’s a growing problem for us all and it’s one that’s more likely to be resolved by business and government working together.
“I’m looking forward to engaging closely with businesses, government departments and the many organisations committed to improving our performance here.”
The review, which will identify measures to help ill and disabled people get into work and stay in work, comes ahead of significant reforms to health and disability benefits expected in the Spring.
Work and Pensions Secretary, Rt Hon Liz Kendall MP, said: “Millions of people have been left without support to get into work and on at work, and completely held back from reaching their potential for far too long, and the record-high cost of long-term sickness benefits is evidence of that fact.
“That’s why I am pleased to have Sir Charlie leading this review, bringing a wealth of experience and helping us to get people into work, and most importantly keep them in work, so we can boost living standards and get our economy growing.”
Business and Trade Secretary, Rt Hon Jonathan Reynolds, said: “It isn’t right that too many businesses are missing out on the people they need, while those who want to work can’t because of long-term sickness.
“Solving this problem is one of the greatest challenges facing the labour market, with years of poor support blocking those with great talent from helping drive our economy forward.
“The government is on the side of working people and is unashamedly pro-business. That’s why this review will be critical in getting businesses the people they need to unlock their full potential.”
Rain Newton-Smith, CEO of the CBI, said: “Lower rates of employment for people with long-term health conditions or disabilities is a tragic waste of potential that holds back economic growth and impacts on well-being.
“It denies people the opportunity to improve their personal financial security through work and prevents businesses from using their valuable skills and experience to grow the economy.
“Sir Charlie’s review is a welcome opportunity for business and government to co-design solutions that have a real impact.”
This business engagement is part of the Westminster government’s Get Britain Working White Paper which is currently progressing the biggest employment reforms in a generation so the UK can reach an ambitious 80% employment rate.
As part of the plan, Jobcentre’s are to change their focus from monitoring and managing benefit claims to skills and careers, mental health support will be expanded to reduce waiting lists in areas with the highest levels of economic inactivity, and mayors will be empowered to join up local work, health and skills support to tackle the root causes of inactivity in their areas.
