Lorna Slater, the Scottish Green MSP for Lothian, has urged the Scottish Government to support tenants by maintaining protections that are set to expire next month.
In 2022 the then Green Minister, Patrick Harvie, introduced a temporary cap on most in-tenancy rent increases. Since the end of the cap in March 2024, there has been a temporary rent adjudication system in place, also introduced by Mr Harvie, that has kept rents down for some tenants.
At the time, the Scottish Government said that the system was to support the transition away from the rent cap to a system of permanent rent controls and to protect tenants from excessively large rent hikes.
The Scottish Government has said that these temporary restrictions will not be renewed at the end of next month.
The cost of renting a two bedroom home in Edinburgh is now £1358 which is an increase of 104% since 2010. [1]
Lorna Slater MSP said: “Rents across Edinburgh have skyrocketed. Renters have paid the price, while private landlords have lined their pockets. And whilst there is legislation on the way to introduce permanent rent controls at last, these won’t come into force until 2027.
“Right now, renters are protected by temporary controls that were introduced by the Scottish Greens. But these protections are set to expire in a matter of weeks, exposing households across the city to extortionate rent increases.
“Removing these protections without replacing them would create a cliff edge that risks throwing households and familiesinto financial despair.
“If the Scottish Government is serious about supporting renters then the least they can do is extend these modest measures to help support renters through the ongoing cost of living crisis.”
COSLA is clear that the proposed funding from Scottish Government won’t cover additional Employers National Insurance costs, and councils still face an extremely challenging financial position as they set their budgets.
COSLA Resources Spokesperson, Councillor Katie Hagmann, commented: “We note that the Scottish Government has announced it will fund £144m of the additional direct staffing costs that will result from the UK Government’s policy decision rise to Employers National Insurance. However, this leaves a gap of £96 million Councils will still need to fill within their budgets.
“While we acknowledge that the UK government is still to announce additional resources, it is important to note that there has been no additional funding for commissioned services, the biggest of these being adult social care, which are also vital services and will see significant impacts.
“Given the mounting challenges for local government, this additional funding will not solve the crises councils and communities are facing, which are exacerbated by the Employers National Insurance increase.
“Difficult decisions will still need to be made as councils look to protect essential frontline services.”
For many people, the 2025 Council Elections in England will be the first opportunity in four years to have their say on their local councillor and on who’s been running their Council.
But 16 of the 21 county councils have applied to ‘delay’ their elections due to the UK Labour Government’s devolution plans.
When the Westminster Government first suggested they might allow a delay to elections, it was clear that it would only be for a year. However it’s become increasingly clear that any reorganisation involving these councils will take much longer than 1 year.
The Government now says it expects the new local authorities to be up and running in 2027 and 2028.
That would mean current administrations and councillors on these councils will end up with a 6 or 7 year term!
In effect, elections will be cancelled and voters will have no say on who runs their council or who their councillor is for 2 or 3 more years, when the new local authorities are ready to take over.
Democracy shouldn’t be put on hold in this way – people deserve their vote and their voice!
That’s why Unlock Democracy has started a campaign to ensure elections go forward as normal on May 1st this year. Voters should have their say on what’s going on in their communities and importantly on the local government reforms that are being imposed by the Government.
We have written to the Deputy Prime Minister urging her to ensure elections go ahead.
The Government’s dalliance (and we hope it’s just that) with cancelling elections reveals some much deeper problems at the heart of our democracy. These won’t go away without the kind of major political reforms which Unlock Democracy is campaigning for. Let’s look at those issues –
A gaping hole in our democracy
There’s a serious question as to whether any Government should have the power to delay or cancel elections. At the very least, it should be a power that can only be used in truly exceptional circumstances with strong safeguards. No guardrails exist in our democracy and we should all be worried about that.
Trust in politics
To many, this looks like an attempt to avoid a difficult set of elections this May. It’s not just the Government that might suffer, it’s the official opposition too. When these seats were last fought, the Conservatives were on 43% in the national polls and the Labour Party was on 33%.
Today the Conservatives are polling around 20% worse and the Labour Party around 8% worse. Both face a very challenging election in May and it is potentially politically beneficial for both parties not to go to the polls.
With trust already at record lows, voters are unlikely to give the Government the benefit of the doubt when it tries to justify its decision on this.
The relationship between central and local government
The relationship can be likened to a parent (central government) and child (local government) relationship, but not in a good way. In this relationship, the parent tries to control everything that the child does and thinks that if the child has any freedom bad things will happen.
It’s the equivalent of saying, if I give my child pocket money, they might spend it on drugs, so I won’t give my child any pocket money!
Over the last few decades, this is where central government has got to with local government. To a significant degree, it’s what we’re seeing in this Government’s devolution plans. Central government can dictate whether councils even exist, they can dictate what powers they have and they control the money. As discussed, it can even dictate whether elections can even take place!
This is not to say that local government has been perfect over the decades. At times Councils have wasted money and taken decisions that have not been in their residents’ best interests. But the same thing can equally be said about central government – HS2 is an obvious example of this.
This is a dysfunctional relationship and needs a reset.
How can we fix it
One of Unlock Democracy’s founding goals is to secure a Written Constitution. It’s the rulebook that our political system is lacking and it’s the guarantee of people’s rights and our democracy.
A written constitution would include rules about elections – when they happen, who can vote and on what grounds, if any, they can be postponed. No Government could ignore a written constitution.
A written constitution, developed with the input of ordinary citizens, would be a major start to restoring trust in our politics. It would contain rules that would ensure that no Government or Prime Minister can ignore. It would restore the checks and balances that have been too easily overridden in recent times.
Finally a written constitution would clearly define the powers of both central government and local government. It would give local government the legal standing it lacks. It will enable a partnership between central and local government in building a better future for their citizens.
People on most, if not all, sides of the political divide agree that our political system isn’t working the way it should. A written constitution should be a key plank in a long overdue reform programme designed to fix things.
We will continue to fight for this, whilst at the same time calling for this year’s elections to go ahead.
A Bill that would allow all pupils in state and grant-aided schools to have at least four nights and five days of residential outdoor education during their school career has been supported by a Holyrood committee.
Following a vote, members of the Education, Children and Young People Committee agreed with the general principles of the Schools (Residential Outdoor Education) (Scotland) Bill. However, the Committee unanimously agreed that concerns related to the costs, provision for pupils with additional support needs and the impact on teachers need to be resolved if the Bill is to become law.
The Bill was introduced by Liz Smith MSP against a backdrop of declining provision of residential outdoor education, with only a quarter of Scotland’s primary pupils and a third of secondary pupils having the chance to attend.
During evidence the Committee heard strong arguments for the Bill based on the “life-changing benefits” residentials have on pupils’ confidence and resilience. Several witnesses also spoke about the positive impact this can have on pupil-teacher relationships and attainment.
The Committee heard that residential outdoor education could be particularly beneficial to pupils from more deprived areas, however these pupils were often not able to go on trips as they were unaffordable for many parents.
The Committee identified several practical concerns that would need to be overcome though for the Bill to be delivered, with costs proving a significant barrier.
Estimates suggest delivering the Bill would cost the Scottish Government between £20 million and just over £40 million a year. However, in its report, the Committee says that national funding of residential outdoor education is a good example of preventative spend where the benefits are well documented.
The report also raises concerns about staffing, which currently is provided by teachers on a voluntary basis. While teachers were positive about their experiences, if residential education became statutory it might lead to a renegotiating of teachers’ terms and conditions, adding further barriers to delivering the Bill.
Douglas Ross MSP, Convener of the Education, Children and Young People Committee: “Throughout this inquiry we heard about the hugely positive impact that outdoor residential education can have on the development and attainment of children and young people.
“While we agree with the general principles of the Bill, there are financial challenges attached to the delivery of outdoor residential education that need to be overcome for it to become law.
“We want to see the Scottish Government and the Member who introduced the Bill, Liz Smith MSP, work together to resolve these.”
Open Letter from SHONA McCARTHY, Chief Executive, Edinburgh Festival Fringe Society
What a fantastic week for the cultural sector of Scotland. All the lobbying, advocacy and effort from so many, for so long, has resulted in some desperately needed stability and longer-term security; and Culture Counts did a sterling job in leading the charge.
It has been uplifting and joyful to see so many brilliant theatres, companies, community art centres, creatives and festivals across Scotland, invested in, and supported to make new work and do ambitious things.
A special nod to the success of our sister festivals – the Film, Children’s, Art, Book and Jazz festivals; and with over £5million in public sector support per year, the Edinburgh International festival will be enabled to undertake some truly wonderful commissions and programming. Perhaps this will be the moment for some shared resource into a collaboration of all six summer festivals to create a spectacular, free-to-access opening and closing of the whole season for Edinburgh’s residents. Exciting times and I look forward to the imaginative programming to come.
It is also wonderful to see Hidden Door secure some core support – its devolved curatorial approach and fusions of genre and imagination have brought something new to the whole festivals landscape. Congratulations are due all-round and hats off to the Scottish Government for recognising the value of the arts to the heart and soul of the nation, to job creation, well-being and the economy. All of this in the same week that the Fringe Society has had its own news to share, with the announcement of our new Chief Executive coming in to post in April this year.
However, I hope support can also be found for those who didn’t make the list this time.
The Fringe is a different beast. It is complex, but only if you want it to be. However, its complexity should not be a reason not to support the very event that gives Edinburgh’s festivals their global brand, economic success and enormous impact for the performing arts across Scotland, the UK and the world. It truly is an access point for so many artists and audiences alike, into the arts.
Here’s where we are:
The Edinburgh Festival Fringe is made up of thousands of moving parts. All of those are important and are what make it unique. The Fringe is not a funded, curated arts festival, it is a platform and a marketplace that is open to anyone. Every artist or show that comes to Edinburgh does so at their own financial risk, and with their own set of objectives for what they want from participating in the Fringe. There are many producers who will annually develop and support a selection of shows to present at the Edinburgh Fringe, who share the risk with their artists. The venues that host them are all different models, but many of them also take significant risk, or share risk with producers and artists.
Then there is the Fringe Society – the small charity that is made up of Fringe members and provides core services to the festival: artist support, box office, marketing, promotion, and audience navigational tools. Income generated from participants through registration fees and box office commission pays for these services. The Fringe Society delivers a whole programme of added value that is designed to remove barriers to participants and audiences and ensure inclusion. This work isn’t financed by income from the Fringe, but is supported by donations, fundraising and ring-fenced public funds for projects. In keeping costs to participants low or frozen for 18 years, the income generated from registration fees and tickets, has long-since come far short of covering the costs of services to the Fringe.
Once upon a time the Fringe was a self-financing ecosystem with a collective effort from all the fringe-makers on keeping it affordable for artists and audiences. However, the well-documented economic context of recent years changed that. In this moment, if Edinburgh, Scotland and the UK wants to keep the Edinburgh Festival Fringe, then the whole thing needs support, and that has to come from multiple sources and has to support both the Fringe and the Fringe Society.
The Fringe Society needs core annual public sector support if it is to continue to provide services to the Fringe at an affordable level. It also needs to be able to adjust its fees to meet some of the rising costs too. A stable Fringe Society can continue to play a positive convening role for the wider Fringe community and in recent recovery years we have been able to redistribute some £6.3million out through the Fringe ecology in funds for artists, producing venues and support for Scottish work, to help it survive and stabilise.
The Fringe Society will continue to use its convening role to raise funds to support artists through the Keep it Fringe fund and Made in Scotland. We must also ensure that the essential digital infrastructure that supports festival systems – online tools and wayfinding, are future-proofed, and will seek support and donations to retain our 32 community partnerships across the city so that they can continue to experience their Fringe their way, both during August and year-round.
What could a whole Fringe support strategy look like.
For a stable, healthy Fringe we need a joined-up investment strategy that includes the Scottish Government, the City of Edinburgh Council and the UK Government. We have continuously made the case and both UK and Scottish Governments have recognised the unique place that the Fringe occupies as a platform, a showcase, a marketplace and global expo. There is nothing else like it on these islands, and it offers something unique in the world as an annual global meeting place to celebrate the performing arts in all their glory and for the business of the performing arts to be done.
We of course need a stable Fringe community with companies, producers and theatres able to produce work, and the investment from the Scottish Government last week goes a long way towards this. We will continue to lobby until Scotland is on a par with the best of Europe.
The Fringe Society’s new year-round Fringe Central secured a capital grant that will create new affordable rehearsal spaces for artists, and also unlocked £1million in Keep it Fringe funds for direct bursaries to 360 artists over 2024 and 2025.
The Fringe Society are aiming to sustain the Keep it Fringe fund in some form, and producer James Seabright has already committed financial support.
Investment in the Fringe Society from the Scottish Government is needed to ensure the charity can continue to provide core services to this vital event.
The Scottish Government have recognised that this organisation falls between the cracks and have made the commitment to support, and this is a work in progress. Scottish artists, companies and many local producing theatres and venues are supported through the multi-year funding programme, the Open Fund, and the Made In Scotland showcase at the Fringe and this helps. Yet there is still a gap in support for the whole Fringe operation, and there is a continuing disparity between the infrastructural needs and financial support made available for major sport events as opposed to the investment in sustained, annual arts events with longitudinal impact, like the Edinburgh Fringe.
For the UK Government – the Edinburgh Fringe hosts artists from all over the UK, with over 2,000 shows coming from England alone every year; with producers and promoters bringing work to be showcased and booked for onward opportunities. The Fringe ecosystem needs support to host all of this.
The UK Government have so far provided a Capital Grant to the Fringe Society to create a year-round Fringe Central space, and we have been making the case to build on this investment for the whole ecology. This could happen in several ways:
Theatre Tax Relief could be extended to support the venue infrastructure set up at the Fringe that is undoubtedly part of the production process
The Fringe should be supported by UK Government for its role as a driver of the Creative industries – Industrial strategy, and well-positioned for support from the £65 million recently announced by Secretary of State Lisa Nandy
It should be recognised as a Major Event for the UK, and its operating structures supported as would so readily be done with a sporting event of this scale and reach, such as an Olympic or Commonwealth Games
Arts Councils across UK should be investing in their artists to support them coming to the Fringe, as international showcases already do
The City of Edinburgh Council is crucial in providing a supportive operating context:
The Fringe will generate over £1million in Visitor Levy – this money should be ring-fenced to be redistributed in supporting the event
Affordable accommodation is the single biggest barrier to making the Fringe truly inclusive for creatives, workers and audiences. There are three ways this could be alleviated
Exemptions on home-letting and home-sharing being real, effective and immediate
A mechanism for HMOs (houses of multiple occupancy) privately run student accommodation to be made available to artists during the summer months
A map of accommodation capacity within a one-hour commute of Edinburgh and the supporting transport routes to make that underused capacity viable
New structures have already been set up to create this joined up approach through a National Festivals Partnership and a Festival City Infrastructure group. Let’s hope these structures can finally bring a strategic and supportive approach, to enable the Fringe to sit comfortably within Scotland’s national cultural asset base whilst also being properly enabled to welcome the emerging performing artists and breakthrough work from across the UK and the world.
The Edinburgh Fringe is unlike any other cultural event in the world, in that it is largely self-financed by those who take the risk to make and show work. It is made up of hundreds of parts, all of which are important. It is a wonderful balance of ticketed venues, street performance, free shows and pay what you want shows; from new discoveries to world-class and established artists.
It is the sum of these parts that makes it distinctive, inclusive, extraordinary and with something to say in the world. The stability of the Fringe is dependent on a recognition by everyone involved in it; that it is not owned by anyone – no organisation, group, or collective. It has no super league or participant base that is any more important than any other. It is a platform for freedom of expression like no other – ever evolving, growing, contracting and contorting.
It is not stuck in any one period of time, and should never allow any single interest group or sense of entitlement to derail its beautiful, messy and joyful mission for inclusion and cultural democracy
Its mantra is to give anyone a stage and everyone a seat – and that’s a mantra worth protecting and championing. That’s the Fringe. What a welcome it would be for the incoming CEO of the Fringe Society, if this extraordinary event was set on a new foundation stone where both the Fringe itself and the charity that supports it are validated and supported. With that support and validation, the whole Fringe community can move forward together collaboratively to secure the future of this vital event.
The cultural sector review will perhaps take a closer look at why the Edinburgh Fringe doesn’t sit comfortably within the established mechanisms of investment in the cultural sector, and a new way may be found to give it investment and support. Edinburgh is a city that has given huge recognition to new infrastructure and investment in classical music and the classic artforms.
It would be wonderful to see some validation of the forms of creative expression, such as comedy and street performance, which allow a significant point of access into the arts, and anyone to step into the opportunity to perform.
Often all that is required is space, a microphone and a story to tell.
Shona McCarthy, Chief Executive, Edinburgh Festival Fringe Society
PARENTS in Edinburgh have called for urgent action after new figures emerged it could take 25 YEARS to clear a road safety backlog unless budgets are increased.
Parent Councils from 53 primary and secondary school from across the city have written to all their MSPs and Councillors calling for an increase in road safety funding, which they say is needed to keep children safe.
The Freedom of Information (FoI) statistics were gathered after a child was killed on their way to school in North Edinburgh last year.
In the FoI response, parent council’s discovered that, as of June 2024, there are 96 red flag sites on Edinburgh City Council’s speed reduction list.
Shockingly, despite this, only 19 roads have been improved in the last five years. At this rate, it would take 25 years to act on all the Edinburgh roads currently on the list.
The Parent Councils have now written to Edinburgh and Lothian MSPs and City of Edinburgh councillors demanding that budget makers prioritise road safety around schools.
In that letter, they point out that it’s only a matter of time before another tragedy occurs.
The parents say that an increased road safety budget is needed to tackle the backlog and ensure that future changes are made within a year of a site being identified for speed reduction measures.
Another FOI response showed that, in 2023/24, the road safety budget was £1.5m which was just 1% of the total road and transport budget for that year.
Kim Pratt, vice chair of the Davidson’s Mains Primary School Parent Council, said: “A 25 year backlog in speed reduction measures is condemning every child in Edinburgh to navigating unsafe roads for the rest of their school days.
“No child should be risking their life when traveling to school and it’s unacceptable that safety recommendations are being ignored.
“We do understand that the council is under financial pressure but getting children to school safely must be a priority.
“The call from parent councils from across Edinburgh shows that this is a systemic problem. Politicians in Edinburgh have the power to protect our children by increasing road safety funding and by making road safety around schools a priority in all future road developments.”
Lynsey Houston, chair of Craiglockhart Parent & Carer Council said: “I know that since Craiglockhart parents first raised concerns about road safety, some of the children have now graduated high school!
“A potential timescale of 25yrs is ridiculous but highlights the desperate need for more resources. After all, when we ask for improvements, we are asking for our council and government to prevent a tragic outcome.”
THE LETTER READS:
Monday, 3rd February 2025
To all Edinburgh and Lothian MSPs and City of Edinburgh Councillors,
INCREASE THE CITY’S ROAD SAFETY BUDGET TO KEEP EDINBURGH CHILDREN SAFE
We represent parents of children who attend schools across Edinburgh and we are calling on you, as our political representatives with control over the City of Edinburgh Council’s budget, to increase funding for road safety.
Our children are being harmed on their way to and from school. Last year, a child was killed on their way to school in Edinburgh and we believe, in the current situation, it is only a matter of time before this happens again.
A response to a Freedom Of Information request has shown that, as of June 2024, there are 96 sites on the Council’s speed reduction list and only 19 roads have been improved in the Last five years. At this rate, it will take 25 years to act on all the roads currently on the list.
This is unacceptable to many parents, whose children will grow up and leave school before changes are acted on. Our children are navigating unsafe roads now.
Whilst we understand that the Council is under huge pressure around funding, we believe that road safety, particularly around schools, should be more of a priority than it currently is.
Another FOI response showed that, in 2023/24, the road safety budget was £1.5m which was just 1% of the total road and transport budget for that year. You must increase Edinburgh Council’s road safety funding to reduce the backlog in speed reduction improvements and make future changes in a reasonable and responsible time period. We believe that, once a site is identified for speed reduction measures, improvements should be completed within a year and the Council should be funded appropriately.
All road budget spending should consider how safety around a school can be built into improvements.
We look forward to your response.
Yours faithfully,
Kim Pratt, Davidsons Mains Parent Council On behalf of the following Parent Councils of Edinburgh:
Davidson’s Mains Primary School Parent Council
Gilmerton Primary School Parent Council
Craigour Park Primary School Parent Teacher Council
Craiglockhart Parents & Carers Council
Canaan Lane Primary School Parent Council
Flora Stevenson Parent Council
Cramond Primary School Parent Council
James Gillespies Primary School Parent Council
Nether Currie Primary School Parent Council
James Gillespie’s High School Parent Council
Royal High School Parent Council
Preston Street Primary School
Clermiston Primary Parent Council
Trinity Primary Parent Council
Duddingston Primary Parent Council
Dalry Primary Parents and Carers Council
Chomhairle Phàrant Bhun-Sgoil Taobh na Pàirce
Bruntsfield Primary School Parent Council
Longstone Primary School Parent Council
Blackhall Primary School
Forthview Primary School Parent Council
Stockbridge Primary School Parent Council
Pentland Primary School Parent Council
Leith Walk Primary School Parent Council
Granton Primary School Parent Council
Castleview Primary School Council
East Craigs Primary Parent School
Craigentinny Primary School
St Andrew’s Fox Covert RC Primary School
Fox Covert Primary School
Gylemuir Primary School Parent Council
St Peter’s RC Primary School Parent Council
Oxgangs Primary School Parent Council
Roseburn Primary School Parent Partnership
St Thomas of Aquins Parent Council
Frogston Primary School Parent Council
Royal High Primary School
Bonaly Primary School
Holyrood RC High School
South Morningside Primary School Parent Council
St. Catherine’s RC primary school
Kirkliston Primary School Association
Currie Community High School Parents in Partnership
Budget Deals, Budget Revisions, and Budget Pressures
There was a lot of focus this week on the Budget deal struck by the Scottish Government, which will allow the Budget to be supported by the Scottish Green Party and the Scottish Liberal Democrats (write Fraser of Allander Institute’s MAIRI SPOWAGE and SANJAM SURI).
In early January, Anas Sarwar announced that Scottish Labour would abstain on the Budget as the Scottish Government were likely to secure support from the budget from one or other of these parties. Of course, this meant that the Scottish Government did not need to secure support from other parties to ensure that the budget would pass.
However, no doubt John Swinney will be pleased that he can demonstrate working across the chamber, and particularly constitutional boundaries, to come to a deal.
On the face of it, the price paid for the support of these parties seems pretty cheap (in the scheme of the SG Budget!), totalling £16.7m.
With the Scottish Liberal Democrats (TOTAL £7.7m):
Increase Drugs and Neonatal Service Investment. +£2.5m
Strengthen support for Hospices. Increase the funding from £4m to £5m. +£1m
Invest in targeted support for the College sector. +£3.5m in creating an Offshore Wind Skills Programme and College Care Skill Programme.
Support the continuation of Corseford College. + 0.7m
Offer flexibility to Orkney Island Council in terms of capital and resource funding.
With the Scottish Greens (~£9m):
Establish a £2 bus fare cap pilot in a regional transport partnership area. +£3m in 25-26 (£10m in total)
Increase Nature Restoration funding. increase from £23 million to £26 million. +£3m
Extend free school meal eligibility in S1-S3 in 8 local authority areas – covering pupils in an urban, rural, semi-urban and island authorities in receipt of Scottish Child Payment. +£3m (although it looks like most costs will fall in 2026/27, so not sure about the exact cost in 2025-26)
The Scottish Government say that this will be funded by another draw down from the Scotwind fund (more on Scotwind below) of £3 million to support the capital spending on nature restoration, and the remaining amendments are funded through debt servicing costs which they expect will be lower than they expected at the Draft Budget in early December.
The Spring Budget Revision changes the picture for 2024-25 considerably
Getting less coverage this week is the Spring Budget Revision, which was laid before parliament on Thursday. This is a pretty technical document, with the “supporting notes” document running to 146 pages. This is for the current year, and now reflects the additional Barnett consequentials which were announced through the UK Budget for 2024-25
[By way of background, these revisions happen twice a year, once in the Autumn and once in the Spring, to update the parliament to changes in the funding positions for the current fiscal year. The Budget bill will normally be passed by late February. The ABR comes in roughly Oct/Nov, then the Spring one in Jan/Feb]
The Government did not include any of these announcements in the baseline comparisons for the Budget in December. When asked about the uplifts for 2024-25 in the wake of the UK Budget, they said that the £1.4bn extra in resource funding for 2024-25 was “in line with internal planning assumptions”. This was in the context of the clear budgetary pressures earlier in the financial year, which lead to the emergency budget announcements in September 2024.
The Scottish Fiscal Commission were not please with this, saying “This is a material limitation to information available to the Scottish Parliament for its scrutiny of the Budget and in the spending analysis we can do.”
The SBR published yesterday shows how this money has been allocated in the current year.
The highlights for us are:
The £338m resource borrowing that had been planned to cover for a forecast error reconciliation will not be necessary (so they had planned that borrowing into the 2024-25 budget due to this negative reconciliation from previous years, and now do not need to use it because of the funding received)
That the planned £424m drawdown for the Scotwind licencing fund will all now be returned (they had already announced that they would reduce this drawdown by £300m at the Budget but now they are returning all of it because of the funding received)
That £103m more than planned will be put into the Scotland reserve.
Two things are demonstrated by where the money has gone – first, that it does not seem credible that it was in line with “internal planning assumptions”, in the context of emergency budget measures prior to the UK Budget followed by cancelling of already planned borrowing. Second, it would have helped scrutiny for the 2025-26 Budget if this had been included in the baseline presented at the Scottish Budget, given the SFC role in assessing borrowing and use of the reserve and the role of the Finance and Public Administration Committee.
The restoration of the Scotwind fund is welcome – let’s hope now it will be exclusively committed to capital/infrastructure spending to support the energy transition. It would be good if this could be formally done so the money cannot be used in this way in the future.
Employer NICs likely to cause more budget pressures
We’ve covered the impacts that the employer NICS rises could cause to public services in Scotland.
As a reminder, the Chancellor increased both the rate of employer NICS (from 13.8% to 15%) and lowered the threshold at which employers have to start paying NICS (from £9,100 to £5,000). At the time of the Budget, the Treasury said that public sector employers will be compensated – but no amounts were confirmed, which caused the Scottish Government to (quite rightly) raise concerns about the uncertainty that this would cause.
We’ve heard from the Scottish Government that the expected impact is expected to range anywhere between £550m (for public sector workers), and £750m (including indirect employees such as childcare, higher education, social care). We estimated around £500 for the direct public sector. The rumoured amount on the table from the Treasury is £280-300m. Our blog explains the reasons behind these different amounts.
[But, in short, the difference between the SG and the Treasury is what “compensating” the public sector means – the actual cost, or the actual cost if the size and pay bill of the public sector in Scotland was proportionately the same as the UK.]
Whatever the final amount, it is unlikely the whole cost to the public sector will be covered. We said at the time of the Budget that the Scottish Government hadn’t budgeted for this likely shortfall.
Kate Forbes said this week that the public sector in Scotland will have to “absorb” the shortfall- which basically means that the public sector would have to find savings or efficiencies elsewhere to absorb the budgetary impacts of higher NICS.
The confirmation of the compensation will not come until the Supplementary Estimates are published (which might be as late as the end of February). This means that bodies like councils, who are currently trying to set their budgets, will likely have to plan on the basis of absorbing maybe 40-70% of this additional cost until they get confirmation.
Gordon Macdonald SNP MSP has raised serious concerns regarding the upcoming closure of the Bank of Scotland branch in Wester Hailes, warning of the impact of this decision on members of the community who rely on these services.
Lloyds Banking Group have announced that they are closing their Wester Hailes branch on 27 May 2025. This branch provides a crucial service to local residents and its closure risks harming those in the local community who rely on face-to-face banking services.
Gordon Macdonald MSP is therefore seeking a meeting with Lloyds Banking Group to discuss the potential impacts of their decision and to obtain further details regarding support for those most affected.
Commenting, Gordon Macdonald said: “This news will be very worrying for those who rely on the Bank of Scotland branch services at the Westside Plaza Shopping Centre in Wester Hailes.
“I am deeply concerned about the potential impact of this closure on members of the community who rely on these services particularly with the Post Office Branch in Wester Hailes also under review which would leave local customers with no means of face to face banking services.
“I am urgently seeking a meeting with the Bank of Scotland to understand the impact of this decision on my constituents, and my office is on hand to support constituents if needed.”
The locations affected:
· Alexandria (Banking Hub and Enhanced Deposit service to be introduced)
· Annan (Banking Hub to be introduced)
· Barrhead
· Bishopbriggs (Banking Hub to be introduced)
· Edinburgh Corstorphine West (Enhanced Deposit service to be introduced)
· Edinburgh Wester Hailes
· Helensburgh (Banking Hub to be introduced)
· Kirkintilloch (Community Banker service to be introduced)
· Moffat (Community Banker service to be introduced)
· Peebles (Community Banker service to be introduced)
· Pitlochry (Community Banker service to be introduced)
· Sanquhar (Community Banker service to be introduced)
· Thornhill (Enhanced Deposit service and Community Banker service to be introduced)
A law passed by the Scottish Parliament in 2017, has focused minds on work to reduce child poverty, but more collaboration is needed for the Scottish Government to continue to make progress, according to a report from Holyrood’s Social Justice and Social Security Committee.
The Child Poverty (Scotland) Act was passed by the Parliament in 2017 and aimed to tackle, report on and measure child poverty. It also established targets relating to the eradication of child poverty by 2030. The Scottish Government will publish statistics that will outline whether it has met its interim targets in March.
The Committee wanted to understand the impact of the Act, and in particular the difference that has been made by having a framework for reducing child poverty set in law.
In its report on post-legislative scrutiny of the Act, the Committee has found that, while the Act has instilled an appetite and motivation to tackle child poverty, something most clearly demonstrated in the establishment of the Scottish Child Payment, it has not led to sustained progress towards reaching the Scottish Government’s 2030 targets.
The report outlines a series of recommendations that could help the Government make further progress, including encouraging a culture of collaborative working across portfolios and engaging with local authorities to understand whether they can reach the targets and what further resources they might need.
The Committee also calls on the Government to share details on how its own research into child poverty in rural areas and in the islands has impacted on the Scottish Government’s approach.
Collette Stevenson MSP, Convener of the Social Justice and Social Security Committee, said:“Our scrutiny has shown that the Child Poverty Act has helped ensure the Scottish Government keeps its aim of eradicating child poverty focused in people’s minds.
“However, it looks as though more progress can be made towards achieving the targets that were set out in the act, so we are calling for change on a bigger scale to happen.
“We’re keen to hear more from the Scottish Government about how it intends to do this so that it can meet its targets and make a real difference to the daily life of children and families in Scotland.”
Ministers are encouraging UK businesses to work with Jobcentres to fill the thousands of jobs currently vacant as the UK goes for growth, the Work and Pensions Secretary Liz Kendall set out this week
Following the Chancellor’s growth speech this week, Work and Pensions Secretary Liz Kendall visited fast growing UK retailer B&M – who successfully filled almost 3,000 vacancies using local jobcentres in 2024.
The Work and Pensions Secretary has set out overhaul the DWP’s approach to supporting employers to Get Britain Working again as part of Plan for Change.
Comes as just one in six businesses has ever used a Jobcentre to recruit with the latest data showing tens of thousands of vacancies in key sectors.
New DWP team have built partnerships with 37 new industry leaders in just a few week as department transforms Jobcentres.
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It comes as the Work & Pensions Secretary visits B&M – a retailer that has had huge success using the Jobcentre network. As a fast growing UK retailer, B&M has filled almost 3,000 vacancies through the jobcentre network, with over 85% of new recruits coming directly through the DWP – benefiting jobseekers and the businesses’ growth.
The DWP has hit the ground running to reset engagement with employers through new teams to support employers, with dedicated account managers and a focus on growing the number of Jobcentre training programmes tailored to employer’s needs.
As B&M has opened new stores across the country, it has teamed up with the local DWP team to run information sessions – offering interested candidates a guaranteed interview.
Over 73,000 jobs have been added to the labour market since the start of this Parliament according to the ONS, with new announcements in the Chancellor’s speech yesterday expected to add thousands more roles to the UK jobs market – including over 100,000 jobs in the local area around Heathrow.
However, new figures show only 1 in 6 employers surveyed reported using the JobCentre Plus network to hire for their business – highlighting the need for genuine reform.
That’s why as part of the Get Britain Working plan, the government will reform jobcentres by bringing it together with the National Careers Service to ensure people have better access to training and address local skills gaps and help train the workforce businesses need.
The reforms to get Britain working and modernise the employment support offer are just one part of the Government’s Plan for Change, which will lay strong foundations to kickstart economic growth and break down barriers to opportunity across the country.
Work and Pensions Secretary Liz Kendall said: “To get Britain growing again, we need to get Britain working again.
“As the HR department for the Government’s growth mission, our job is to work with businesses to meet their recruitment needs.
“To help employers grow, hire new staff, and boost opportunity in every corner of the country, we are determined to change our approach.
“As part of reforming Jobcentres we will overhaul our service to better meet employer’s needs – turning the DWP into a genuine public employment service. So businesses can fill jobs and people can build a better life for themselves and their families.”
A B&M spokesperson said: “There is a wealth of talent and experience in Jobcentres across the UK. We encourage other businesses to get in touch with their local Jobcentre and discover the talent that’s available in their community.“
The new dedicated team set up to support businesses of all sizes across the country with their recruitment needs has already added 37 new employers to the department’s roster in recent weeks, with notable names including Home Bargains, KFC and Swissport.
In a letter to CEOs from 10 of the UK’s top businesses, DWP ministers said that at a time when recruitment can be a major cost, the DWP “provides a service to help businesses grow and support people into work“.
To help other businesses replicate B&M’s success, the department is transforming its service for employers by:
Hosting summits with employers and stakeholder representatives across sectors crucial to growth – including construction, social care and clean energy in the next three months.
Boosting the number of training programmes in these sectors on offer at Jobcentres to upskill jobseekers and provide employers with the work ready staff they need.
Serving employers through a dedicated team with highly experienced experts to provide recruitment support, including designing tailored campaigns to tackle large numbers of vacancies.
Providing an account manager for employers to get more information about how the JCP can help them and provide recruitment support – following feedback from businesses that they wanted an establish a single contact.
Commissioning Sir Charlie Mayfield to lead an independent review into the role of employers in reducing health-related inactivity and promoting healthy and inclusive workplaces – which is already underway.
