Strike laws to be passed ‘to protect vital public services over Christmas’

Minimum Service Levels legislation will be passed for rail, ambulance, and border security staff to mitigate disruption if strikes called.
Delivers on manifesto commitment to introduce minimum service levels for rail strikes.
Comes ahead of further consultations to introduce minimum service levels for education, other NHS staff, and fire services.

Minimum service level regulations for rail workers, ambulance staff and border security staff will be laid in parliament to mitigate disruption and ensure vital public services continue if strikes are called, the UK government announced yesterday (Monday 6 November).

The legislation brings us in line with countries like France, Italy, Spain, and the US where public services reliably continue during strikes. The International Labour Organisation also recognises Minimum Service Levels as a sensible solution to protect the public from serious consequences of strikes.

The minimum service levels are designed to be effective and proportionate by balancing the ability to take strike action with ensuring we can keep our borders secure, supporting people to make important journeys including accessing work, education, and healthcare, and allowing people to get the emergency care they need.

Earlier this year, the government consulted widely on proposals to introduce minimum service levels legislation across a range of sectors, under the Strikes (Minimum Service Levels) Act which received Royal Assent in July. The responses to these consultations have been published today with the legislation set to be laid in parliament tomorrow.

For border security, the regulations will apply to employees of Border Force and selected HM Passport Office staff where passport services are required for the purposes of national security. The laws will set out that border security services should be provided at a level that means that they are no less effective than if a strike were not taking place. It will also ensure all ports and airports remain open on a strike.

For train operators, it will mean the equivalent of 40% of their normal timetable can operate as normal and, in the case of strikes that affect rail infrastructure services, certain priority routes can remain open.

Minimum service level regulations for ambulance workers will ensure that vital ambulance services in England will continue throughout any strike action, ensuring that cases that are life-threatening, or where there is no reasonable clinical alternative to an ambulance response, are responded to.

Prime Minister Rishi Sunak said: “We are doing everything in our power to stop unions de-railing Christmas for millions of people. This legislation will ensure more people will be able to travel to see their friends and family and get the emergency care they need.

“We cannot go on relying on short term fixes – including calling on our Armed Forces or civil servants – to mitigate the disruption caused by strike action.

“That’s why we’re taking the right long-term decision to bring in minimum service levels, in line with other countries, to keep people safe and continue delivering the vital public services that hard-working people rely on.”

Where minimum service level regulations are in place and strike action is called, employers can issue work notices to identify people who are reasonably required to work to ensure minimum service levels are met.

The law requires unions to take reasonable steps and ensure their members who are identified with a work notice comply and if a union fails to do this, they will lose their legal protection from damages claims.

Last year, Westminster raised the maximum damages that courts can award against a union for unlawful strike action. For the biggest unions, the maximum award has risen from £250,000 to £1 million.

Transport Secretary, Mark Harper said: “For too long, hard working people have been unfairly targeted by rail union leaders – prevented from making important journeys, including getting to work, school or vital hospital appointments.

“Minimum Service Levels will help address this by allowing the rail industry to plan ahead to reduce disruption for passengers while ensuring workers can still exercise their ability to strike.

“An improved service on strike days will allow passengers to continue with their day-to-day lives and support businesses, particularly in the hospitality sector.”

Earlier this year, the UK government accepted the independent pay review bodies recommendations in full, providing a fair pay deal for all public sector workers.

An agreement between the government and Agenda for Change unions earlier this year saw over one million NHS staff receive a 5% pay rise along with one-off awards worth over £3,000 for the typical nurse or ambulance worker.

For rail workers, there remains a fair and reasonable offer on the table which several unions have already accepted, one which would deliver competitive pay rises of 5% + 4% pay increase over two years.

Home Office staff in delegated grades including Border Force staff have been provided with a pay award averaging 4.5% with an additional 0.5% targeted at the lower grades.

Home Secretary Suella Braverman said: “We must never allow strike action to compromise our border security or cause significant disruption to passengers and goods at our borders.

“The Armed Forces have commendably stepped up to fill vital roles during recent industrial action, but it would be irresponsible to rely on such short-term solutions to protect our national security.

“The minimum service levels announced today will ensure a fair balance between delivering the best possible service to the travelling public, maintaining a secure border and the ability of workers to strike.”

The government continues to recognise the crucial role of NHS staff and remains committed to working constructively to end any disruption for patients, and there are currently no live strike mandates relating to ambulance trusts. However, strikes have already had a significant impact on patients, NHS staff and efforts to cut waiting lists – including over one million postponed appointments and procedures.

The Department of Health and Social Care is currently seeking evidence on expanding the scope of minimum service levels to cover other urgent and emergency hospital-based services which could include nurses and doctors. The consultation is set to close on the 14th of November.

Health and Social Care Secretary Steve Barclay said: “Patients must be protected and strikes in ambulance services could put the lives and health of the public at risk, given their essential role in responding to life threatening emergencies.

“While voluntary agreements between employers and trade unions can still be agreed ahead of industrial action, these regulations provide a safety net for trusts and an assurance to the public that vital emergency services will be there when they need them.

“We will continue to take steps to protect patient safety and ensure health services have the staff they need to operate safely and effectively, no matter the circumstances.”

The Education Secretary has committed to introduce minimum service levels on a voluntary basis should an agreement be reached with the education unions. If a voluntary arrangement cannot be agreed, a consultation will be launched on introducing minimum service levels in schools and colleges.

Separately, the Department has also committed to launching a consultation on introducing minimum service levels in universities.

The Department for Business and Trade recently consulted on a new draft statutory Code of Practice on the ‘reasonable steps’ a trade union should take to meet the requirements set out in the Strikes (Minimum Service Levels) Act 2023.

They will also launch a consultation on removing regulation 7 across all sectors which prevents employment businesses supplying agency workers to cover the duties normally performed by a worker who is taking part in an official strike or other industrial action. These will be published in due course.

TUC slams government for “unworkable” and “irrational” anti-strike laws

Ministers to lay regulations today for minimum service levels in rail, the ambulance service and border security
Conservatives also looking to overturn ban on use of agency workers during strikes – despite “humiliating” defeat at the High Court in June
TUC accuses government of punishing workers “for daring to stand up for decent pay and better services.”
Union body says new laws are almost certainly in breach of international law

The TUC has slammed the government for trying to railroad through “unworkable” and “irrational” anti-strike laws.

Government ministers yesterday laid regulations for so-called ‘minimum service levels’ in rail, the ambulance service and border security. Ministers have said they will be rushed into force by the end of the year.

This comes despite warnings from unions and employer groups that the plans are unworkable.

The laws will mean that when workers lawfully vote to strike they could be forced to attend work – and sacked if they don’t comply.

TUC research found a massive 1 in 5 workers in Britain – or 5.5 million workers – are at risk of losing their right to strike as a result of the Strikes (Minimum service levels) Act.

Agency worker rules

In addition, ministers will try again to overturn the ban on the use of agency workers during strikes.

In June the government was defeated in the High Court after it rushed through new laws that allowed agencies to supply employers with workers to fill in for those on strike.

The presiding judge scolded ministers for acting in a way that was “unfair, unlawful and irrational” and reinstated the ban on agency staff being used to break strikes.

But despite this rebuke – and strong opposition from unions and employers – ministers are resurrecting the plans with a new consultation.

Commenting on the extension of minimum service levels to rail, the ambulance services and border security, Paul Nowak said: “These anti-strike laws won’t work. The crisis in our public services is of the government’s own making.

“Rather than engaging constructively with unions, they are attacking the right to strike. And they are punishing paramedics and rail staff for daring to stand up for decent pay and better services.

“These new laws are unworkable, undemocratic and almost certainly in breach of international law.

“The UK already has some of the most restrictive trade union laws in Europe.

“It is already harder for working people here to take strike action than in any other Western European country. Now the Tories want to make it even harder for people to win fair pay and conditions.

“Unions will keep fighting this spiteful legislation. We won’t stop until it is repealed.”

In September the TUC reported the government to the International Labour Organization (ILO) – the UN workers’ rights watchdog – over the Strikes Act.

Commenting on the announcement on agency workers, TUC General Secretary Paul Nowak said: “Allowing unscrupulous employers to bring in agency staff to deliver important services risks endangering public safety and escalating disputes.

“Agency recruitment bodies have repeatedly made clear they don’t want their staff to be used as political pawns during strikes. But ministers are not listening.

“Despite suffering a humiliating defeat at the High Court, they are bringing back the same irrational plans.

“This is the act of desperate government looking to distract from its appalling record.”

King’s Speech ‘to deliver a brighter future for the country’

New laws ‘to set the country on the right path for the long-term’ will be revealed in next week’s King’s Speech

New laws to ‘set the country on the right path for the long-term’ will be revealed in next week’s King’s Speech.

The Speech will focus on putting in the right laws, where we need them, to safeguard the future prosperity of the United Kingdom, seize economic opportunities and deliver a brighter future.

Ahead of the Autumn Statement later this month, the measures in the King’s Speech will build on the Prime Minister’s priority to grow the economy, safeguard our energy independence, ensure the UK is fully securing the benefits of Brexit and build the most competitive and supportive environment for businesses to capitalise on new technologies.

Together they will help ensure our country is more prosperous, more innovative, more secure, and ready to seize the bright future that the British people deserve, the government says.

Prime Minister Rishi Sunak said: “This will be the first King’s Speech in seventy years and the legislation we will bring forward is part of our plan to build a better future for the next seventy.

“Just as I have done with energy security, net zero, illegal migration and HS2, the King’s Speech will take the long-term decisions to address the challenges this country faces, not the easy way out with short-term gimmicks.

“As we take the necessary steps to halve inflation and reduce debt, we will legislate to grow the economy, by supporting innovative businesses and protecting consumers.

“To make the real change this country needs, we will bring forward bills that strengthen our society, help people feel safer in their own communities and give a sense of pride in the place they call home.”

The King’s Speech will also include a package of measures focused on strengthening our society and helping people to feel safe in their communities and will ‘build on progress to date delivering record numbers of police officers and ensuring perpetrators of anti-social behaviour face swift and more visible justice’.

The Westminster government says this is on top of the existing support to the NHS – ‘meaning those who fall sick will get the care they need. With record funding and backing its long-term workforce plan, we will train more doctors, more nurses, more dentists and more GPs than ever before’.

In addition to setting out the legislative programme, the Tory government says the King’s Speech will reconfirm their commitment to promoting and protecting our national interests.

They say last week’s AI Safety Summit showed how the UK is leading the world to ensure the development of safe AI, and that the AUKUS submarine alliance with partners Australia and the United States continues to strengthen global security and will create jobs for people in the UK.

The State Opening of Parliament on Tuesday follows the delivery of 39 Government bills in the last Parliamentary session, including new laws to stop the boats, grow the economy, support families and deliver on the priorities that matter most to the country.

Seven bills will be carried over to complete their passage in the next session. This includes the Digital Markets, Competition and Consumers Bill and the Data Protection and Digital Information Bill which will modernise regulation so firms can grow and boost competition in the UK.

Legislation will also deliver a fairer and higher quality private rented sector for both tenants and landlords with the Renters (Reform) Bill helping ensure people live in decent, safe and secure homes.

The Holocaust Memorial Bill and the Economic Activities of Public Bodies (Overseas Matters) Bill will ensure the Holocaust and its victims are never forgotten and prevent public bodies from implementing their own politically motivated boycotts of foreign countries.

The Conservative Party has been in government for twelve years …

Greens welcome new Active Travel Route in North Edinburgh

Work has begun on the construction of the Western Villages Active Travel Route which is on the boundary of Forth and Almond Wards.

The work is part of the wider regeneration of Granton Waterfront and will improve infrastructure along Marine Drive and West Shore Road between Pennywell Road Roundabout and Gypsy Brae.

Work will include a fully segregated cycle route, improved pedestrian facilities including new footways and pedestrian connections, landscaping improvements including street trees and rain gardens.

This construction is being supported by Sustrans Places for Everyone Programme and is being carried out by CCG (Scotland) Ltd.

Green Councillor for Forth Ward, Kayleigh O’Neill said: “I’m really pleased that these are improvements are on the way. This work will create a coherent active travel network for people in my ward and anyone who wants to travel through.

“It is so important that these improvements are made as we need safe, accessible and well-connected routes for people to walk, wheel and cycle in.”

“Earlier this year the Scottish Government announced the allocation of £20 million as part of its active travel funding. With Greens in the room this issue is being taken seriously and it’s amazing to see on the ground.”

Boyack slams Government over Eye Pavilion ‘flip-flop’

A meeting organised by Sarah Boyack MSP with the Cabinet Secretary for Health, Michael Matheson, to discuss the delayed Edinburgh Eye Pavilion has left patients and campaigners even more concerned about its future.

At the meeting it was confirmed that all previous work on designing and building the Edinburgh Eye Pavilion will be wasted as a new full business case will have to be written, costing many more millions of pounds.

Michael Matheson also failed to provide clarity on the timescales expected for the new building, confirming it may not even come in this funding cycle.

Commenting Scottish Labour MSP Sarah Boyack said, “This flip flopping has been going on for too long. One minute the Scottish Government are committed to a new Eye Pavilion, next they are not.

“Michael Matheson’s failure to provide clarity today will leave patients worried, confused and angry.

“It did not have to be this way, if it had been built on time we would have saved many millions of pounds and patients would not be left in the dark.”

Also commenting Sylvia Paton, chair of KEEP said, “While Mr Matheson assured us that a new Eye Hospital would be built at some point, we are very disappointed about the lack of clarity over when.

“The prospect of further delays raise serious concerns about the Scottish Government’s future commitment to the project.”

Holyrood seeks views on Abortion Safe Access Zone Bill

The Health, Social Care and Sport Committee is seeking views on a new Bill which would establish ‘safe access zones’ around locations where abortion services are provided, what it calls ‘protected premises’.

If passed, the Abortion Services (Safe Access Zones) Scotland Bill, introduced by Gillian Mackay MSP, would make it an offence to behave in certain ways within a safe access zone.

Examples of behaviour that could be considered an offence include influencing a person’s decision to access services, preventing them from accessing those services, or causing harassment or distress while doing so.

The Bill also makes it an offence for someone within 200 metres of protected premises but not on public land (and so not within the safe access zone) to act in a way that might result in pressure or distress for someone within a safe access zone who is accessing abortion services.

Fines of up to £10,000 could be issued for those convicted of disrupting people within safe access zones attempting to access abortion services. However, in very serious cases, there would be no limit on the fine.

The Bill also creates provision for future protected premises to be created, and for the safe access zone radius surrounding a protected premises to be extended or reduced, if appropriate.

Speaking as the call for views was launched, Clare Haughey MSP, Convener of the Health, Social Care and Sport Committee, said: “We recognise the strength of feeling about this Bill. As a Committee we always aim to consider any Bill or issue in a careful, balanced and thorough way.

“We are committed to ensuring we scrutinise this Bill in detail so that we can hear and consider all views.

“The Bill’s stated aim is to ensure that people can access abortion services without fear of, and free from, intimidation, harassment or public judgement.

“We want to hear views from individuals and organisations on whether they agree with the proposals within this Bill and if they would welcome the changes it would bring about.”

Give your views to the Committee using the online survey

The call for views closes on 20th December.

Call for funding to support newly recognised refugees

Minister says councils must have UK Government support

Migration and Refugees Minister Emma Roddick has urged the UK Government to provide financial support for local authorities as it presses ahead with plans to close asylum hotels.

In a letter to Immigration Minister Robert Jenrick, Ms Roddick welcomed measures to end the inappropriate use of hotels to accommodate people seeking asylum along with UK Government measures to tackle the backlog in asylum decisions.

However, she said the move was placing further pressure on local services and called for increased funding to enable councils to meet the needs of refugees when they receive a positive asylum decision.

Ms Roddick said: “The Scottish Government has long been clear in our view that hotels are not appropriate accommodation for people seeking asylum.

“While I welcome your recognition that the asylum decision backlog must be tackled, I want to make clear that it is completely unacceptable and reckless for the UK Government to shift a significant burden onto local authorities without providing financial support.

“The UK Government must provide funding to local authorities and work constructively with them to ensure that people receiving a positive asylum decision are supported to move-on from asylum accommodation, without creating unmanageable pressure on housing and homelessness services over a short space of time.

“It is UK Government mismanagement of asylum decision making which has created the backlog and the consequences of that cannot be passed to local authorities without any support to manage them.

“I request urgent provision of funding to local authorities to support move-on associated with the backlog clearance.”

Asylum: letter to UK Government

MSP welcomes new payment for care leavers

Gordon Macdonald MSP has welcomed the announcement that a one-off £2,000 payment from the SNP Scottish Government will be made available to young people who are leaving the care system across Edinburgh.

First Minister Humza Yousaf announced the payment following the Independent Care Review’s findings that those with care experience have an increased risk of poor mental health, addiction, homelessness, and exploitation.

The payment is co-designed with care experienced people to ensure that it meets their needs and helps to reduce some of the financial impediments in their way as they seek to live independently.

Commenting, Gordon Macdonald, SNP MSP for Edinburgh Pentlands said: “The SNP Scottish Government is committed to Keeping the Promise by 2030 to all children and young people leaving care, and part of that is ensuring that they are supported on their journey into adulthood.

“Living independently can be a huge adjustment and comes at a pivotal time for young people leaving care across Edinburgh, especially if they don’t have family support.

“The SNP Scottish Government is therefore providing support to care experienced young people across Scotland through the Care Leaver Payment, and this will make a real difference to the lives of young people across the city.”

SHAMELESS: Boris Johnson joins GB News

Former Prime Minister Boris Johnson is joining GB News as a programme maker, presenter, and commentator.

Johnson joins in the new year and will ‘play a key role in the channel’s coverage of both the UK general election and the US elections next year’.

He will create and present a new series showcasing the power of Britain around the world, as well as hosting the occasional special in front of live audiences around the UK.

Announcing his first major broadcast role, Boris Jonson said: “GB News is an insurgent channel with a loyal and growing following. I am excited to say I will be joining shortly – and offering my frank opinions on world affairs.”

He said of the new series: “I will be talking about the immense opportunities for Global Britain – as well as the challenges – and why our best days are yet to come.”

In a video Boris also promised he would “be giving this remarkable new TV channel my unvarnished views on everything from Russia, China, the war in Ukraine, and how we meet all of those challenges, to the huge opportunities that lie ahead for us.”

Editorial Director Michael Booker said: “I’m delighted to say, GB News has got Boris ‘done’!

“We are tremendously proud to have him join the GB News family, particularly as we head into a seismic year for politics both here and across the Atlantic.

“Boris has been the most influential Prime Minister of our generation and his unique insight into domestic and world affairs will be a smash hit with our viewers and listeners.

“As well as his political skills, he’s an incredibly talented journalist and author, so we can’t wait to start working with him on what will be must-see TV.”

They deserve each other …

Boyack: Circular Economy Bill must support councils, not add pressure

On a visit to Kinwegar Recycling Centre on 19^th October to coincide with Recycle Week 2023 Scottish Labour MSP Sarah Boyack has said that the Scottish Government’s proposed Circular Economy Bill must support councils, not ask them to do more with less.

Following discussions earlier in the year with councillors across Scotland Ms Boyack was concerned at the lack and uncertainty of support the Scottish Government is providing councils in planning for and implementing changes to household waste recycling currently indicated in the Bill.

Commenting, Ms Boyack said: “Our visit to Kinwegar Recycling Centre showed first hand the brilliant work many local councils are doing in helping increase recycling and reuse.

“However, it is clear that SNP/Green Scottish Government’s failure to fund our local services properly will jeopardise our goal of reducing waste.

“First we had Lorna Slater’s disastrous handling of the Deposit Return Scheme followed by a UK Tory Government’s abdication of climate responsibility, now councillors are again worried about being asked to do more with less.

“Scottish Labour will take a proactive approach to the Bill to ensure it truly boosts recycling and reuse and delivers a circular economy in our communities.”

Labour councillor for local Preston Seton Gosford ward, Brooke Ritchie said, “East Lothian Council was rightly named in the top ten for waste recycling rates in Scotland, but without additional funding the SNP/Green Scottish Government are putting that at risk.

“It’s time the SNP/Green Scottish Government matched the funding with the rhetoric and funded councils properly.”

Policy announcements at SNP conference: What do they mean for Scotland?

Humza Yousaf addressed the Scottish National Party Conference for the first time as First Minister, in a speech that contained a few new proposals. We’ll take you through some of the main consequences of what was announced (writes MAIRI SPOWAGE, Director of the Fraser of Allander Institute).

Council tax frozen, but at what cost?

The centrepiece announcement was that 2024-25 council tax rates across Scotland would remain the same as in 2023-24. This was a surprise to many – including COSLA – although the Scottish Government has said it “will fully fund the freeze to ensure councils can maintain their services.”

What does that mean in practice? Councils will already have been in the process of deciding what council tax policy will be for the 2024-25 financial year – many of us will have seen consultations and discussions in our local area about this. As they are constrained to fund current spending out of current sources of revenue – of which council tax is a significant component – decisions on spending going forward may have already been taken on the basis of future income from council tax. The First Minister’s announcement changes that prospective revenue.

Whether or not the promise of “fully funding” the freeze in council tax will depend on what the Scottish Government assesses as the counterfactual for what increases in rates would have been – and how that will be put into practice.

Our calculations indicate that accounting for growth in the number of properties expected in 2024-25, total net revenue from council tax will be £2,865m.

But it we assume councils would have applied the same increases as they did last year (which averaged 5%), revenues would have been £3,013m. And if the proposal for increasing multipliers for the higher bands in the recent council tax consultation had been taken forward revenues would have been higher still, at £3,196m.

In summary then, the freeze in council tax – assuming that councils would have followed the increases from the previous year – will cost £148m. In addition, the decision not to increase the multipliers as has been consulted on will cost £183m.

The true size of the shortfall will depend on what councils were actually budgeting for. If we assumed an 8% increase was being planned – which is lower than some councils implemented last year, and would still not bring much in terms of real increases in funding for local authorities – the total shortfall would be £417m (£229m from the freeze plus £188m from not increasing the multipliers).

How much of the shortfall is covered by the First Minister’s funding pledge will be the subject of a negotiation process with COSLA, and we’ll need to wait to see how it plays out. But ultimately it could lead to councils having less spending power than was expected if the definition of “fully funded” is in dispute.

The Scottish Government was already facing challenges on its budgetary position, given the gap it set out in the Medium Term Financial Strategy in May, of an estimated £1 billion gap between its commitments and likely resources.

Despite a better outturn on income tax than expected, and an increase in borrowing powers, prior to the Programme for Government this was still likely to be around £600m. It is not clear where the extra funding will come from to pay for the council tax freeze – and indeed the announcement on health below.

An “additional” £100m a year to cut NHS waiting lists – but within the fixed envelope

The First Minister also outlined a proposal to spend an extra £100m a year on reducing the NHS waiting lists. The goal is to reduce waiting list by 100,000 by 2026.

As with so many of these proposals, the devil is in the detail, and in this case, the additionality of the pledge is questionable. While the First Minister has announced that more money will be spent on this particular issue, there was no detail where the money was coming from.

With the Scottish spending envelope through the Block Grant largely fixed, spending commitments well ahead of funding sources (as discussed above) for 2024-25, and limited options in terms of yield from tax rises, this announcement seems like it will lead to a reallocation of funding, either from other areas of the health service or from other areas of government spending rather than actual additional spending.

Scottish bonds for capital investments announced – how and why?

The FM announced plans to issue the first-ever government bonds for Scotland to finance infrastructure.

In theory, the power to issue government bonds was devolved as part of the Scotland Act 2012, with the power given full effect in April 2015.

So what would be the process for this? One of the key steps is likely to be establishing a credit rating from major rating agencies. This would provide potential investors with a professional evaluation of Scotland’s creditworthiness.

This process is likely to be fairly involved, consisting of a detailed assessment of Scotland’s economic, fiscal and political environment.

Two questions we’ve been asked already are (i) what will this rating (and therefore the likely interest rate that would have to be paid) be compared to UK government bonds and (ii) to what extent does this tell us about the likely cost of borrowing for an independent Scotland?

The answer to the first question is that there is likely to be a premium to be paid by Scotland compared to UK Government bonds (i.e. it will be more expensive), as a new entrant to the bond market. However, given that ultimately the borrowing is underwritten by the UK Government, it may be that the premium is fairly small. But it will of course depend on the rating and then investors’ reaction to that.

The answer to the second is much more unknown. Given this is underwritten by the UK Government, it is likely that this tells us little about the interest rate that may need to be paid by an independent Scotland.

It is worth underlining that this plan does not increase the borrowing available to the Scottish Government. The annual limit (of £450m in 2023-24 prices) and total cap (of £3bn in 2023-24 prices) will still apply. Rather, it is an alternative to borrowing from the National Loans Fund (essentially from the UKG).

It’s unlikely that the terms of borrowing through issuing bonds will be more favourable than borrowing from the National Loans Fund, which tends to be very close to Bank Rate plus a minimal spread.

Another point to note is that the Scottish Government in recent years has used its capital borrowing powers extensively. In the current year, its debt stock sits at 73% of the debt cap already – forecast to rise to around 80% by the end of the parliament. Therefore the borrowing that will be possible may be more limited by the end of the parliament, particularly as borrowing costs are rising.

The FM set out why they may wish to do this in his speech – focussing on the enhanced profile it could give Scotland internationally, and the additional investment it could attract from international investors. It may be that the process of establishing and issuing the bonds is seen as strengthening the Scottish state in advance of a future independent Scotland.

But in a constrained fiscal environment, it will be fair to ask whether borrowing in a more expensive way makes sense.