Tag: Poverty Alliance

A Budget to ‘fix the foundations’ and deliver change for Scotland?

Chancellor ‘takes long-term decisions to restore stability, rebuild Britain and protect working people across Scotland’

  • No change to working people’s payslips as employee national insurance and VAT stay the same, but businesses and the wealthiest asked to pay their fair share.
  • Record £47.7 billion for the Scottish Government in 2025/26 includes £3.4 billion through the Barnett formula.
  • Funding for Green Freeports, City and Growth Deals, GB Energy and hydrogen projects to fire up growth and deliver good jobs across Scotland.

The Chancellor has ‘delivered a Budget to fix the foundations to deliver on the promise of change after a decade and a half of stagnation’. She set out plans to rebuild Britain, while ensuring working people across Scotland don’t face higher taxes in their payslips.

The UK Government was handed a challenging inheritance; £22 billion of unfunded in-year spending pressures, debt at its highest since the 1960s, an unrealistic forecast for departmental spending, and stagnating living standards.

This Budget takes ‘difficult decisions’ to restore economic and fiscal stability, so that the UK Government can invest in Scotland’s future and lay the foundations for economic growth across the UK as its number one mission.

The Chancellor announced that the Scottish Government will be provided with a £47.7 billion settlement in 2025/26 – the largest in real terms in the history of devolution. This includes a £3.4 billion top-up through the Barnett formula, with £2.8 billion for day-to-day spending and £610 million for capital investment.

Secretary of State for Scotland Ian Murray said: “This is a historic budget for Scotland that chooses investment over decline and delivers on the promise that there would be no return to austerity.

“It is the largest budget settlement for the Scottish Government in the history of devolution, including an additional £1.5 billion this financial year and an additional £3.4 billion next year through the Barnett formula. That money must reach frontline services, to bring down NHS waiting lists and lift attainment in our schools.

“It will also bring a new era of growth for Scotland and the whole UK, confirming nearly £890 million of direct investment into Freeports, Investment Zones, the Argyll and Bute Growth Deal, and other important local projects across Scotland’s communities, as well as £125 million next year for GB Energy and support for green hydrogen projects in Cromarty and Whitelee.

“The increase in the minimum wage will also mean a pay rise for hundreds of thousands of workers in Scotland, with the biggest increase for young workers ever. This is on top of our employment rights bill which will deliver the biggest upgrade in workers’ rights in a generation. The triple lock means an increase in the state pension by £470 next year, on top of £900 this year for a million Scottish pensioners.

“The budget protects working people in Scotland, delivers more money than ever before for Scottish public services and means an end to the era of austerity.”

Protecting working people and living standards

While fixing the inheritance requires tough decisions, the Chancellor has committed to protecting the living standards of working people. The decisions taken by the Chancellor to rebuild public finances enable the UK Government to deliver on its pledge to not increase National Insurance or VAT on working people in Scotland, meaning they will not see higher taxes in their payslip.

  • The National Living Wage will increase from £11.44 to £12.21 an hour from April 2025. The 6.7% increase – worth £1,400 a year for a full-time worker – is a significant move towards delivering a genuine living wage.
  • The National Minimum Wage for 18 to 20-year-olds will also see a record rise from £8.60 to £10 an hour.
  • Working people will benefit from these increases, with there estimated to be over 100,000 minimum wage workers in Scotland in 2023.
  • The Chancellor has made the decision to protect working people in Scotland from being dragged into higher tax brackets by confirming that the freeze on National Insurance Contributions thresholds will be lifted from 2028-29 onwards, rising in line with inflation so they can keep more of their hard-earned wages.
  • The Chancellor is also protecting motorists by freezing fuel duty for one year – a tax cut worth £3 billion, with the temporary 5p cut extended to 22 March 2026. This will benefit an estimated 3.2 million people in Scotland, saving the average car driver £59, vans £126 and Heavy Goods Vehicles £1,079 next year.
  • To support Scottish pubs and smaller brewers in Scotland, the UK Government is cutting duty on qualifying draught products by 1p, which represent approximately 3 in 5 alcoholic drinks sold in pubs. This measure reduces duty bills by over £70 million a year, cutting duty on an average strength pint in a pub by a penny. The relief available to small producers will be updated to help smaller brewers and cidermakers.  
  • Over 1 million Scottish pensioners will benefit from a 4.1% increase to their new or basic State Pension in April 2025. This is an additional £470 a year for those on the new State Pension and an additional £360 a year for those on the basic State Pension.
  • Households eligible for Pension Credit will get £465 a year more for single pensioners and up to £710 a year more for couples due to a 4.1% increase in the Pension Credit Standard Minimum Guarantee, benefitting 125,000 pensioners in Scotland.
  • Around 1.7 million families in Scotland will see their working-age benefits uprated in line with inflation – a £150 gain on average in 2025-26.
  • Reducing the maximum level of debt repayments that can be deducted from a household’s Universal Credit payment each month from 25% to 15% will benefit a Scottish family by over £420 a year on average.

Rebuilding Britain

This UK Government will not make a return to austerity and will instead boost investment to rebuild Britain and lay the foundations for growth in Scotland. This includes £130 million of targeted funding for the Scottish Government, of which £120 million is in capital investment.

  • The Budget delivers on the first step to establish Great British Energy by providing £125 million next year to set up the institution at its new home in Aberdeen – helping to develop new clean energy projects in Scotland and across the UK. 
  • The UK Government will deliver £122 million for City and Growth Deals, including the continuation of its contribution to the Argyll and Bute Growth Deal which delivers £25 million of investment in the region over 10 years. This Deal will be supported by a rigorous value for money assessment as part of the review of the business cases for projects within it, to ensure best value is being delivered.
  • The Budget gives certainty to local leaders and investors, confirming funding for the Investment Zones and Freeports programmes across the UK – including Scotland’s Green Freeports. 
  • The Chancellor committed the UK Government to working closely with the Scottish Government on the Industrial Strategy, 10-year infrastructure strategy and the National Wealth Fund – to ensure the benefits of these are felt UK-wide and as part of the relationship reset between governments. These will mobilise billions of pounds of investment in the UK’s world-leading clean energy and growth industries.
  • To support economic growth and promote Scottish culture, products and services through diplomatic and trade networks, the UK Government is allocating £750,000 for the Scotland Office in 2025/26 to champion Brand Scotland as was committed in the manifesto.
  • We are supporting Scotland’s world-renowned Scotch Whisky industry by providing up to £5 million for HMRC to reduce the fees charged by the Spirit Drinks Verification Scheme and by ending mandatory duty stamps for spirits on 1 May 2025.
  • Two electrolytic hydrogen projects in Scotland have been selected for UK Government revenue support through the first Hydrogen Allocation Round: Cromarty Green Hydrogen Project and Whitelee Green Hydrogen. Both projects will bring in significant international investment and create good quality, local jobs.
  • An extension of the Innovation Accelerators programme will support the high-potential innovation cluster in the Glasgow City Region.
  • A corporate tax roadmap will provide businesses with the stability and certainty they need to make long-term investment decisions and support our growth mission. It confirms our competitive offer, with the lowest Corporate Tax rate in the G7 and generous support for investment and innovation. 
  • The UK Government will also proceed with implementing the 45%/40% rates of the theatre, orchestra, museum and galleries tax relief from 1 April 2025 to provide certainty to businesses in Scotland’s thriving cultural sector.

Repairing public finances

The Chancellor has made clear that, whilst protecting working people with measures to reduce the cost of living, there would be difficult decisions required. The Budget will ask businesses and the wealthiest to pay their fair share while making taxes fairer. This will go directly towards fixing the foundations of the UK economy.

  • The rate of Employers’ National Insurance will increase by 1.2 percentage points, to 15%. The Secondary Threshold – the level at which employers start paying national insurance on each employee’s salary – will reduce from £9,100 per year to £5,000 per year.
  • The smallest businesses will be protected as the Employment Allowance will increase to £10,500 from £5,000, allowing Scottish firms to employ four National Living Wage workers full time without paying employer national insurance on their wages.
  • Capital Gains Tax will increase from 10% to 18% for those paying the lower rate, and 20% to 24% for those paying the higher rate.
  • To encourage entrepreneurs to invest in their businesses Business Asset Disposal Relief (BADR) will remain at 10% this year, before rising to 14% on 6 April 2025 and 18% from 6 April 2026-27.
  • The lifetime limit of BADR will be maintained at £1 million. The lifetime limit of Investors’ Relief will be reduced from £10 million to £1 million.
  • The OBR say changes to CGT raise over £2.5 billion a year and the UK will continue to have the lowest CGT rate of any European G7 country.
  • Inheritance Tax thresholds will be fixed at their current levels for a further two years until April 2030. More than 90% of estates each year will be outside of its scope. From April 2027 inherited pensions will be subject to Inheritance Tax. This removes a distortion which has led to pensions being used as a tax planning vehicle to transfer wealth rather than their original purpose to fund retirement.
  • From April 2026, agricultural property relief and business property relief will be reformed. The highest rate of relief will continue at 100% for the first £1 million of combined business and agricultural assets, fully protecting the majority of businesses and farms. It will reduce to 50% after the first £1 million. Reforms will affect the wealthiest 2,000 estates each year. Inheritance Tax reforms in total are predicted by the OBR to raise £2 billion to support stability.
  • From 2026-27 Air Passenger Duty (APD) for short and long-haul flights will increase by 13% to the nearest pound, a partial adjustment to account for previous high inflation. For economy passengers, this means a maximum £2 extra per short haul flight and tickets for children under the age of 16 remain exempt from APD. APD for larger private jets will be increased by a further 50%. Passengers carried on flights leaving from airports in the Scottish Highlands and Islands region are exempt from APD.
  • The rate of the Energy Profits Levy will increase to 38% from 1 November 2024 and the levy will now expire one year later than planned, on 31 March 2030.  The 29% investment allowance will be removed.
  • To provide long-term certainty and to support a stable energy transition, the UK Government will make no additional changes to tax relief available within the EPL and a consultation will be published in early 2025 on a successor regime that can respond to price shocks. Money raised from changes to the EPL will support the transition to clean energy, enhance energy security and provide sustainable jobs for the future.

The Budget also announced a package of measures that disincentivise activities that cause ill health, by:

  •  Renewing the tobacco duty escalator which increases all tobacco duty rates by RPI+2% plus an above escalator increase to hand rolling tobacco (totalling RPI+12%).  
  • Introducing a new vaping duty at a flat rate of 22p/ml from October 2026, accompanied by a further one-off increase in tobacco duty to maintain financial incentive to choose vaping over smoking. 
  • To help tackle obesity and other harms caused by high sugar intake, the Soft Drinks Industry Levy will increase to account for inflation since it was last updated in 2018, and the duty will rise in line with inflation every year going forward.
  • The UK Government will also uprate alcohol duty in line with RPI on 1 February 2025, except for most drinks in pubs.

The UK Government has set out the next steps to deliver its tax manifesto commitments in the July Statement. Having consulted on the final policy details where appropriate, this Budget delivers the UK Government’s manifesto commitments to raise revenue to pay for First Steps, with reforms that are underpinned by fairness, and tackle tax avoidance by:  

  • A new residence-based regime will replace the current non-dom regime from April 2025 and will be designed to attract investment and talent to the UK.
  • Offshore trusts will no longer be able to be used to shelter assets from Inheritance Tax, and there will be transitional arrangement in place for people who have made plans based on current rules.
  • The planned 50% reduction for foreign income in the first year of the new regime will be removed.
  • Reforms to the non-dom regime will raise a total of £12.7 billion according to the OBR.
  • The tax treatment of carried interest will be reformed by first increasing the Capital Gains Tax rates on carried interest to 32% and then, from April 2026, moving to a revised regime – with bespoke rules to reflect the characteristics of the reward.

The Chancellor also ‘doubled down’ on fiscal responsibility through two new fiscal rules that put the public finances on a sustainable path and prioritise investment to support long-term growth, and new principles of stability. Spending Reviews will be held every two years, setting plans for at least three years to ensure public services are always planned and improve value for money.

One major fiscal event per year will give families and businesses stability and certainty on tax and spending changes, while giving the Scottish Government greater clarity for in its own budget-setting.  A Fiscal Lock will also ensure no future government can sideline the OBR again.

Budget marks ‘step in right direction’

Scotland’s Finance Secretary responds to Budget

Finance Secretary Shona Robison has welcomed additional funding in the Autumn Budget, but said the Scottish Government will still face “enormous cost pressures” despite the measures.

The Finance Secretary said: “We called for increased investment in public services, infrastructure and tackling poverty. This budget is a step in the right direction, but still leaves us facing enormous cost pressures going forwards. The additional funding for this financial year has already been factored into our spending plans.

“By changing her fiscal rules and increasing investment in infrastructure, the Chancellor has met a core ask of the Scottish Government. But after 14 years of austerity, it’s going to take more than one year to rebuild and recover – we will need to see continued investment over the coming years to reset and reform public services.

“Indeed, there is a risk that by providing more funding for public services while increasing employer national insurance contributions, the UK Government is giving with one hand while taking away with the other.

“We estimate that the employer national insurance change could add up to £500 million in costs for the public sector unless it is fully reimbursed – and there is a danger that we won’t get that certainty until after the Scottish budget process for 2025/26 has concluded.

“With the lingering effects of the cost of living crisis still hitting family finances, it is disappointing that there was no mention of abolishing the two-child limit, which evidence shows would be one of the most cost-effective ways to reduce child poverty. Neither was there mention of funding for the Winter Fuel Payment.

“As ever, the devil is in the detail, and we will now take the time to assess the full implications of today’s statement. I will be announcing further details as part of the Scottish Budget on 4 December.”

Child Poverty Action Group: Chancellor misses golden chance to scrap two child limit

  • 16 000 more children will now be pulled into poverty by time new UK child poverty taskforce reports in spring
  • “Good news on universal credit deductions, but no bold action on child poverty” 
  • Barnett consequentials must now be prioritised to fund action on child poverty in Scotland

Responding to the UK Chancellor’s Budget, John Dickie, Director of the Child Poverty Action Group (CPAG) in Scotland, said; “The Chancellor brought good news on universal credit deductions, but this was not a Budget of bold action on child poverty.  She missed a golden chance to scrap the two-child limit, a policy that will pull 16,000 extra children into poverty by the time the government’s child poverty taskforce reports in spring.

We welcome the new UK government’s ambition on child poverty but this budget played for time, time that children and families can’t afford. The UK spending review next spring will have to deliver much more to make a significant difference for children in poverty.”

Mr Dickie continued: “Here in Scotland and looking ahead to the Scottish budget it is vital that wider Barnett consequentials are now used to fund the action needed to deliver on the First Minister’s number one priority of ending child poverty.

“That must include funding a real terms increase to the Scottish child payment, expanding childcare provision, delivering on free school meal promises and increasing the supply of affordable family housing.”

POVERTY ALLIANCE:

Responding to today’s UK Budget, Poverty Alliance chief executive Peter Kelly said: “People across the UK believe in a nation based on justice and compassion. Today’s Budget was an opportunity for the Chancellor to turn those values into action, and to rebuild trust in government. Despite some welcome changes, there is still some way to go.

“Boosting the minimum wage is welcome, because for decades workers have been getting less and less from our growing economy. This increase will go some way to making up the gap, particularly for younger workers. But we need to remember that today’s Budget will still leave the legal minimum wages far lower than the real Living Wage rate – the only wage rate that is solely based on the cost of living – of £12.60 per hour, or £13.85 per hour in London.

“We know that too many people on Universal Credit find themselves pushed into destitution when they are chased for debt by public bodies, so it’s good that the maximum amount of benefit that can be taken from them has been reduced. But the Chancellor could have gone further, by strengthening our social security with a boost to Universal Credit that would guarantee that households can afford life’s essentials.

“She could have made it clear that every child matters, by scrapping the unjust and ineffective two-child limit, and ditching the unfair benefit cap which stops households getting all the support they are entitled to.

“There was a welcome focus on the importance of our public services to our shared prosperity and wellbeing. But the Chancellor could have done more to use our country’s wealth to tackle poverty and invest in a better society. Even with today’s changes, people who earn money from selling shares and business assets will pay Capital Gains Tax at a lower rate than workers pay in Income Tax. That’s just wrong.

“Freezing fuel duty and keeping the previous cuts in place will cost the Exchequer billions of pounds a year. It’s bad value for money, benefits the wealthiest in society most, and does little to make the transition to the green economy. The money would have been better invested in affordable, accessible, and sustainable public transport for all.

“It’s right that big companies pay their fair share towards building a strong society, but the Chancellor must urgently consider how increases to employer National Insurance will hit charities and community groups.

“The support and advice provided by these organisations is vital for people who have been pushed into poverty, but too many are already struggling through a lack of fair funding, and this NI increase could push many over the edge.

“That would be a disaster for our communities, and leave more low-income households facing destitution and despair.”

TUC: Labour’s investment budget has begun process of “repairing and rebuilding Britain”

Union body says budget is a vital first step towards the growth, jobs and living standards working people desperately need

Commenting on Wednesday’s budget statement from the Chancellor Rachel Reeves, TUC General Secretary Paul Nowak said: “The Chancellor was dealt a terrible hand by the last Conservative government – a toxic legacy of economic chaos, falling living standards and broken public services. 

“But with today’s budget the Chancellor has acted decisively to deliver an economy that works for working people. 

“The government’s investment plans are a vital first step towards repairing and rebuilding Britain – securing the stronger growth, higher wages and decent public services that the country desperately needs. 

“Tax rises will ensure much-needed funds for our NHS, schools and the rest of our crumbling public services, with those who have the broadest shoulders paying a fairer share. The Chancellor was right to prioritise hospitals and classrooms over private jets. 

“There is still a lot more work to do to clean up 14 years of Tory mess and economic decline. – including better supporting and strengthening our social security system. But this budget sets us on an urgently needed path towards national renewal.” 

Shelter Scotland has responded to the UK budget set out this afternoon by Chancellor Rachel Reeves.

The housing and homelessness charity urged the Scottish Government to commit to investing any new capital funding into delivering the social homes needed to end the housing emergency. 

However, it also expressed disappointment at the continuation of the two-child limit and ongoing freeze to Local Housing Allowance.

Shelter Scotland Director, Alison Watson, said: “Having declared a housing emergency it’s clear that the Scottish Government must back words with actions.

“It is vital that any capital funding which becomes available as a result of the Chancellor’s investment plans is in turn used by Scottish Ministers to deliver social homes here, but we also need to see growth in the capital budget over a sustained period to support continued investment.

“Delivering more social homes remains the single most effective way to tackle the housing emergency in Scotland, and only the Scottish Government can decide how much of its budget it commits to that endeavour. 

“However, we can’t ignore the role that austerity has played in exacerbating Scotland’s housing emergency.

“The freeze on local housing allowance and the two-child limit has forced thousands into poverty; they will continue to do so as it seems the Chancellor has chosen to keep them in place.” 

COSLA:

ONE PARENT FAMILIES SCOTLAND:

Scotch Whisky industry says UK government has broken commitment to ‘back Scotch producers to the hilt’

Chancellor increases discrimination of Scotch Whisky and other spirits in on-trade

The Scotch Whisky Association (SWA) says the Chancellor’s decision to further increase duty on Scotch Whisky has broken the Prime Minister’s commitment to ‘back Scotch producers to the hilt.’

In her first Budget, Chancellor Rachel Reeves announced an RPI inflation increase to alcohol duty, but cut duty on draught products in the on-trade by 1.7%. Scotch Whisky and other spirits are excluded from this tax relief. 

The SWA had called on the new Chancellor to take the opportunity to reverse the damage done by the 10.1% increase in August 2023. Instead, the damage done to the industry and to government revenue has been compounded by further increasing the tax burden on the sector, which is already the highest in the G7.

Spirits revenue fell by hundreds of millions of pounds as a result of the 10.1% duty increase last year, and the industry has warned that this further tax hike will not deliver the revenue ministers have been promised but will hurt businesses, the hospitality sector and hard-pressed consumers.

Commenting on the Budget, Chief Executive of the SWA Mark Kent said: “This duty increase on Scotch Whisky is a hammer blow, runs counter to the Prime Minister’s commitment to ‘back Scotch producers to the hilt’ and increases the tax discrimination of Scotland’s national drink.

“On the back of the 10.1% duty increase last year, which led to a reduction in revenue for HM Treasury, this tax hike serves no economic purpose. It will damage the Scotch Whisky industry, the Scottish economy, and undermines Labour’s commitment to promote ‘Brand Scotland’.

“She has also increased the tax discrimination of spirits in the Treasury’s warped duty system, and with 70% of UK spirits produced in Scotland, that will do further damage to a key Scottish sector.

“The disastrous 10.1% duty hike last year has now been compounded. This further tax rise means the lessons have not been learned, and the Chancellor has chosen continuity with her predecessor, not change.

“We urge all MPs who support Scotch Whisky to vote against this duty hike and tax discrimination of Scotland’s national drink.”

Rain Newton-Smith, CBI Chief Executive, said: “The Chancellor had difficult choices to make to deliver stability for the economy and public finances. A more balanced approach to our fiscal rules which prioritises capital investment should help to unlock private sector investment in our infrastructure and net zero transition over the long-term.

“This is a tough Budget for business. While the Corporation Tax Roadmap will help create much needed stability, the hike in National Insurance Contributions alongside other increases to the employer cost base will increase the burden on business and hit the ability to invest and ultimately make it more expensive to hire people or give pay rises.

“Only the private sector can provide the scale of investment required to deliver the government’s growth agenda.

“To achieve this shared mission of growing our economy sustainably, it’s vital that the government doubles down on its partnership with business to unlock the investment that is needed to drive opportunity around the UK.”

FSB: Employment allowance rise welcome from Chancellor in tax-raising Budget

The Federation of Small Businesses responds to the Chancellor’s Budget statement

Responding to the Chancellor’s Budget statement, Policy Chair of the Federation of Small Businesses (FSB), Tina McKenzie, said: “Increasing the employment allowance for small businesses by a record amount is a very welcome move and we’re pleased the Chancellor has heard us loud and clear.

“More than doubling it, from £5,000 to £10,500, will shield the smallest employers from the jobs tax, therefore is a pro-jobs prioritisation in a tough Budget.

“The decision to protect small businesses from an inflationary hike in business rates – by freezing the small business multiplier – will help small firms with premises across all sectors. Meanwhile, extending business rates relief, albeit at a lower level, for small firms in retail, hospitality and leisure will mitigate a potential cliff-edge tax hike for those in some of the toughest sectors.

“The true test of today’s Budget will be whether small businesses can grow and end the economic stagnation the UK has been stuck in.

“Larger small, and medium-sized, businesses will struggle with the rises on employer national insurance on top of the large costs from the Government’s employment law plans. We’ve been very clear in our warning of the difficulty SMEs will be confronted with in meeting all of these changes at once – and the potential impact on jobs, wages and prices.

“The Budget documents include plans for a small business strategy command paper, which is a welcome signal that ministers appreciate the central role that small businesses play in driving growth and we look forward to working with the Government closely on that.

“Investment in infrastructure is key to future growth, and the Chancellor’s announcement of additional funding for rail projects and fixing potholes is therefore encouraging. Many small firms, meanwhile, will be relieved at the decision not to raise fuel duty. The commitment to prioritise small housebuilders when it comes to housing investment is also welcome.

“Building a business involves a significant element of risk and personal, as well as financial, investment. But for the economy to grow, we need more people to be incentivised to take that leap and, in turn, create jobs, opportunities and prosperity in all communities across the country.

“The right decision has been taken to retain entrepreneurs’ relief (now branded Business Asset Disposal Relief) up to £1million, which is something we have campaigned hard for. Although the level of relief will gradually reduce over time, resulting in more tax being paid in the future on business sales, we’re pleased to see a differential has been kept.

“Against a challenging backdrop, today’s Budget shows a clear direction in business policy now for the whole of this Parliament to target support at small businesses, rather than big corporates – prioritising everyday entrepreneurs working in local communities in all parts of the country.”

UK Budget fails “3 Key Tests for Scotland”, say Alba Party

Scottish Government must now fund universal entitlement to pensioners winter fuel payment

“To gain pass marks the new UK Labour Government had three key tests to meet in Scotland: it had to reverse its plan to cut the universal winter fuel payment; it had to save Grangemouth; and it had to fund a plan to save North Sea Oil and Gas jobs – on all three counts Labour has failed Scotland.” 

This was said today by Acting Alba Party leader Kenny MacAskill reacting to Chancellor Rachel Reeves’ budget. 

Alba Party say that the UK Government had three key tests to meet to deliver for Scotland. Former First Minister Alex Salmond helped launch a campaign to save the winter fuel payment last month.

Close to one million pensioners in Scotland are set to lose out on between £200-£300 this winter. Acting Alba Party leader Kenny MacAskill has been a leading voice in the campaign to save the Grangemouth Oil Refinery from closure.

Mr MacAskill has today hit out at the UK Government after Labour promised in the General Election to save Scotland’s only refinery that is set for closure next year but has failed to provide funding to save the refinery in today’s budget. 

MacAskill has now called on the Scottish Government to use extra Barnett consequential funding to fully mitigate the cut to the winter fuel payment.   

Alba Party have also hit out as successive UK Government’s have promised investment in Carbon Capture Technology in the North East of Scotland. Alba say the technology is vital to secure the future of the North Sea Oil and Gas industry and to help Scotland play its part in protecting the environment. Today’s UK Budget confirmed £22billion of investment in carbon capture projects in England – but snubbed the Acorn project on the Buchan coast.

Commenting Acting Alba Party leader Kenny MacAskill said: ““Today’s UK Budget is a continuity budget that proves that regardless of whether we have a UK Tory Government or a UK Labour Government, Scotland will always lose. 

“To gain pass marks the new UK Labour Government had three key tests to meet in Scotland: it had to reverse its plan to cut the universal winter fuel payment; it had to save Grangemouth; and it had to fund a plan to save North Sea Oil and Gas jobs – on all three counts Labour has failed Scotland.

“ Close to a million Scottish pensioners are to be kept in the cold this winter, the UK Government has chosen to stand by and allow Scotland’s key industrial asset to close, and Labour have betrayed the North East of Scotland. 

“ Nothing for Scotland’s pensioners, nothing for Grangemouth and nothing for Carbon Capture and the North Sea. It is now vital that the Scottish Government steps up to the plate and uses any additional funding consequentials it receives to fully mitigate the cut to the winter fuel payment.”

Budget is a ‘Missed Opportunity’

The budget is a missed opportunity to bring about the transformative change this country needs, said Westminster’s group of independent MPs.

A statement from the Independent Alliance:

LOCAL GOVERNMENT INFORMATION UNIT:

Dr Jonathan Carr-West, Chief Executive, LGIU, said: “The Chancellor billed this as an historically consequential budget of hard choices. That’s certainly true in many areas with £40bn of tax rises announced and significant changes to the government’s debt rules. 
 
“For local government, however, it is a budget of choices deferred. It could have been worse – there’s an additional £1.3bn in funding including money for social care and additional funding for housing and special educational needs: the very areas that are driving many councils to bankruptcy.
 
“But this extra funding is not even half the gap that councils currently face. 
 
“The longer-tem change that the sector desperately needs is all deferred for now. We are waiting on the Local Government Finance Settlement, on the Devolution White Paper and on a broader redistribution of funding through a multi-year settlement from 2026-27.
 
“There were some welcome highlights: retaining 100%  of right to buy receipts and integrated settlements for Greater Manchester and the West Midlands and possibly for other places in future. 
 
“Is this a start? Yes. Is it enough? Not by a long shot. At least not yet. There’s a positive direction of travel set out, but there’s a long way to go and the pressure on council finances means there’s a real risk that some councils will not be able to hang on long enough to get there.”

Capital marks Challenge Poverty Week

The city council and partners from across the city are marking Challenge Poverty Week.

Running from Monday 7 to Sunday 13 October 2024, Challenge Poverty Week is a national campaign highlighting the challenges people living in poverty are facing and how we can work together to make Scotland a fairer and more equal place to live.

The Edinburgh Tenants Federation held a free event at Norton Park Conference Centre on Monday, featuring stalls, support and guest speakers discussing Edinburgh’s housing emergency.

On Wednesday, End Poverty Edinburgh, a group of people with lived experience of poverty, held their second citizen-led conference at the Grassmarket Community Project, supported by the Council.

This year’s event focused on collective action to combat community exclusion, focusing on child poverty, health and wellbeing,

The Council will publish the results of the city’s latest annual poverty report tomorrow (Friday 11 October).

This report will provide the fourth annual overview on progress made by the Council and partners in response to the calls to action made by the Edinburgh Poverty Commission to end poverty by 2030, and will be considered by members of the Policy and Sustainability Committee later this month (22 October).

Throughout the week, a series of blogs will be shared by the Edinburgh Poverty Commission shining a light on council support and services.

Edinburgh Leisure is also highlighting the help and support it can offer people experiencing barriers to an active lifestyle, including the option of a Get Active Card which provides affordable access to venues for people in receipt of certain benefits.

Council Leader Cammy Day said: “In a thriving Capital city like Edinburgh it is shocking that thousands of people are suffering from low incomes, high living costs and even homelessness.

“That’s why we’ve made it a commitment of this Council to do all that we can with our partners to end poverty. Challenge Poverty Week is an opportunity for us to focus our efforts and make sure people know where to turn to for support.

“We’ve made good progress delivering against the targets set by the Edinburgh Poverty Commission four years ago and we’re looking forward to publishing the results of our annual report later this week.

“The funding and the support we’ve put in place is making a real difference to people’s lives, but the cost of living has risen. We face a housing emergency, and we need to prioritise this work now, more than ever.”

Peter Kelly of The Poverty Alliance said: “We’re very pleased that Edinburgh is marking this year’s Challenge Poverty Week.

“In a rich country like ours, poverty is an injustice that weakens us all as a society. But we can solve it. We can redesign our economy to make sure people have incomes that are adequate enough to live a life with freedom and dignity.”

More information about events taking place across Edinburgh can be found on Eventbrite. Information, advice and support for residents experiencing or at risk of poverty can be found on the Council’s cost of living webpages.

Spending slashed as urgent action taken to balance Scottish Budget

£500 million in savings to ease ‘enormous’ pressure on public finances

Holyrood’s Finance Secretary Shona Robison has outlined the urgent action being taken to balance the 2024-25 Scottish Budget in the face of “enormous and growing pressure on the public finances”.  

Highlighting the continuing effects of Brexit, the COVID-19 pandemic, the war in Ukraine and the cost of living crisis, alongside UK Government spending decisions, Ms Robison said difficult decisions were required.

The total savings, worth up to £500 million, include:

  • Implementing emergency spending controls across the public sector, particularly targeting recruitment, overtime, travel and marketing
  • Ending the ScotRail Peak Fares pilot
  • Mirroring the UK Government’s policy to means test Winter Fuel Payment
  • Making additional savings across portfolios, including in sustainable and active travel and in health and social care

The Finance Secretary said she was also currently planning to use up to £460 million of additional ScotWind revenue to address in-year pressures in 2024-25.

Ms Robison said: “This Government has consistently warned of the significance of the financial challenge ahead.

Prolonged Westminster austerity, the economic damage of Brexit, a global pandemic, the war in Ukraine, and the cost of living crisis have all placed enormous and growing pressure on the public finances.

“In the last three years alone cumulative CPI inflation has seen prices increase by 18.9%, diminishing how far money will go for households and governments alike.

“In the face of these challenges, the Scottish Government has stepped in to support people and services where it has been needed most: on social security, health and public services. But we have done so without equivalent action from the UK Government, which has repeatedly failed to properly review the adequacy of funding settlements.

“We cannot ignore the severe financial pressures we face. We will continue to be a fiscally responsible government and balance the budget each year, as we have done every year for 17 years and as we will do again this year. But this will mean we must unfortunately take difficult decisions along the way.”

Responding to today’s statement by Scottish Government Finance Secretary Shona Robison, Poverty Alliance chief executive Peter Kelly said: “People in Scotland believe in justice and compassion. They know that we need a strong social foundation so we can look out for each other and help people build a life beyond the injustice of poverty.

“But we’re now being left with holes in the fabric of Scottish society that will likely make life even harder for people on low incomes who are already being pushed towards debt, hunger, homelessness, and destitution. That is completely unjust, irresponsible and unnecessary.

“We are a rich country, and our collective wealth has grown massively over the decades. Past generations used that wealth to plan and budget for the public good, and MSPs and Ministers must now urgently use their powers over tax and investment to build a better, fairer future for all of us – and especially those in poverty. Economic growth will not fix the holes in society, unless it comes along with increased social investment.

“We are very concerned about the effect of cuts to mental health support and adult social care. We know that people in poverty are more likely to need that support, and data shows a growing risk of poverty for disabled people.

“We are deeply disappointed that plans to expand concessionary bus travel to people in the asylum system have been scrapped, along with a return to peak fares on ScotRail. We all need the freedom to travel, but too many of us simply can’t afford the fares.

“Organisations like the STUC and IPPR Scotland have published concrete plans that show how the Scottish Government can use powers over tax to invest billions of pounds every year in our shared society.

“We can build better budgets that give people the means to build a better future, to create a true wellbeing economy that supports fair work, and a just transition to the net zero future that we urgently need.”

Reacting to the Scottish Government’s Pre-Budget Fiscal Statement, STUC General Secretary Roz Foyer: “With every cut announced by the Scottish Government today, workers and communities across Scotland will be scarred for generations to come.

“For over two years now, we’ve told the Scottish Government they had almost £3.7 billion worth of untapped revenue at their fingertips through increasing tax on the rich. They could have acted. They chose not to. We are in no doubt that brutal Tory austerity has had an undeniable impact on Scotland’s finances. But the Scottish Government must take responsibility for their own cuts. They cannot be allowed to escape scrutiny.

“Public sector workers have faced more than a decade of falling real wages, lagging far behind those in the private sector. Those workers not only have the right to demand above inflation pay rises, but, if our public services are to improve, improvements in pay are non-negotiable. 

“All eyes now turn to the Chancellor but it’s a shambles that we’re awaiting some form of salvation, if any is forthcoming, from the UK Government when our government in Holyrood could have done so much more.

“The people of Scotland do not want a Scottish Government that administers cuts while annunciating the droopy mantra of ‘it wizny me’. They want politicians that choose to govern – and that means taxing the rich to invest in the services that we all rely on.”

The Finance Secretary has outlined the savings in a letter to the Finance and Public Administration Committee (FPAC).

Ms Robison also proposed that the next Scottish Budget takes place on the 4th December, subject to the agreement of FPAC and the Scottish Fiscal Commission. 

Poverty Summit: Prioritising those most in need

Tax, targeted support and tough budget choices will all need to be considered as part of bold measures to tackle poverty, First Minister Humza Yousaf said yesterday after meeting poverty campaigners.

The anti-poverty summit, convened by the First Minister, saw political leaders from across the Scottish Parliament meet with people who have direct experience of poverty, campaigners, and third sector organisations.

Speaking after the event, which was attended by around 90 delegates, the First Minister said: “I called the summit to listen to the views of a wide range of partners, particularly those at the sharp end of the cost of living crisis and with direct experience of poverty, about what they believe needs to be done.

“Everything I heard confirmed that poverty and the cost of living crisis is the biggest challenge facing this country – one that has been exacerbated by some of the UK Government’s actions and inactions.

“We have already acted to tackle the pressure on those most in need – for example, our game-changing £25 per week per child Scottish Child Payment, Carer’s Allowance Supplement, and Winter Heating Payment.

“But we must do more. We must be bold in considering future tax decisions. Tough choices will need to be made about existing budgets, and we need to consider whether targeting help is the way forward when money is so tight.

“It’s not enough to wish poverty away. We have to be hard-headed and realistic about what can be done – and then we have to focus on making it happen. That means the debate must now be about tax, targeting and tough choices. We are listening and will not shy away from the decisions needed to reduce poverty.”

COSLA President Councillor Shona Morrison said: “The initiative from the Scottish Government is a good one and one which Local Government can get fully behind. Tackling poverty is a core objective for Local Government working in partnership with the Scottish Government, the third sector and public and private sector partners.

“The cost- of-living crisis we are living through at present is being tackled head-on by Councils the length and breadth of Scotland and partnership working is vital to achieving positive outcomes for individuals, families and our communities across Scotland.”

Commenting on reports around the expansion of universal free school meals in Scotland, Poverty Alliance director Peter Kelly said: “The First Minister has to recognise the injustice that leaves so many children in Scotland hungry and without food they need.

“With figures from the Trussell Trust showing record numbers of families accessing food banks, this is not the time to roll back on commitments relating to free school meals.

“We know that many low-income families just miss out on qualifying for means-tested free school meals, and many others don’t claim because of shame or stigma.

“The best way to tackle this problem is through universal free school meals that benefit all of our children and young people.”

Peter Kelly was speaking just after attending yesterday’s anti-poverty summit, chaired by the First Minister.

He said: “The First Minister’s poverty summit was a timely opportunity to refocus on tackling the injustice of poverty in Scotland. Across all those who took part, there was a clear sense of urgency on the need to deliver real change.

“There was no shortage of ideas for action. We can expand funded childcare, use public contracts as a lever to improve pay and conditions in key sectors, and remove barriers to work for those people most affected by poverty – women, disabled people, people from Black and ethnic minority communities.

“Now is the time for the Scottish Government to turn those ideas into concrete action. We look forward to a follow up summit in the coming year to check where progress has been made.”

Positive anti-poverty summit soured by possible roll-back on Free School Meals

THE sCOTTISH Trades Union Congress (STUC) and the STUC Women’s Committee have warned of massive resistance to any reversal on the SNP free school meals pledge and called for an acceleration, not a roll-back of the programme.

STUC General Secretary Roz Foyer said: “We were enthusiastic participants in the summit today. Our key message is that better and fairer wages tied to redistributive taxation must lie at the heart of strategies to tackling poverty and inequality. Current levels of in-work poverty are totally unacceptable and place further pressure on our under-funded benefits system. We need to see real action coming out of this summit.

“Suggestions this morning that the Scottish Government might consider breaking pledges to extend free school meals is not what we are looking to hear. Investing in the health of all of our young people and removing stigma is a key priority and any roll-back will be fiercely resisted.”

Andrea Bradley, Chair of the STUC Women’s Committee and General Secretary of the Educational Institute of Scotland said: “The STUC Women’s Committee would be deeply concerned if the First Minster’s comments around a potential reversal of the Scottish Government’s progressive policy on universal free school meals expansion as reported today, were to be put into action.

“1 in 4 children in Scotland were living in poverty before the onset of the cost-of-living crisis, which the previous First Minister declared a humanitarian emergency. Now, food inflation of 20%, together with exorbitant energy costs, and stagnant wages is making life even harder and more miserable for hundreds of thousands of parents in Scotland and their children – many already missing out on a decent meal at school because of the stigma or the bureaucracy of means-testing.

“Now is the time to accelerate the roll-out of universal free school meals – not to roll back on what were essential promises.”

Scotland must turn its back on poverty-related stigma, say MSPs and activists

A new report published by Holyrood’s Cross Party Group on Poverty says that bias against people in poverty affects their mental health and wellbeing, makes it harder to access the support they are entitled to, lessens their educational chances and makes policies designed to tackle poverty less effective.

Group convener Pam Duncan-Glancy MSP said: “Scotland is a place that believes in compassion and justice, but people in poverty and on low incomes are having to face almost daily prejudice. That’s just not right, and it must stop.

“Poverty is caused by an unjust economy, and a social security system that doesn’t meet people’s needs. Our inquiry has found that the way people talk about poverty matters, and can have a clear impact on people on low incomes. That’s especially true when the people talking are politicians, in the media, or those delivering the public services that we all rely on.

“It’s time for everyone in Scotland to turn our back on these unjust attitudes and behaviours, and to call it out when they come across it. We’ll be a better, fairer, more just society as a result.”

Since January last year, the Group has been carrying out an inquiry into the stigma associated with poverty in Scotland today, hearing evidence from people with lived experience of living in poverty and on low incomes.

One disabled participant speaking to the Glasgow Disability Alliance said: “It can be difficult if you have a hidden impairment – people think there is nothing wrong with you or you are ‘at it’. My adviser at the Department for Work & Pensions actually said ‘This is not a disability’.”

One 15-year-old school pupil told the Child Poverty Action Group: “Well, I think if all of your friends or people you know go to the after-school clubs, school trips, that kind of isolates you from them. You’re singled out, you’re not with them, just a spare person.”

Another 12-year-old pupil said: “They talk behind your back [about what you wear] and stand staring at you.”

The Group heard evidence about the difficulties faced by parents on low incomes. The Child Poverty Action Group spoke to parents and caregivers heard about the ‘guilt, embarrassment and shame’ they are often made to feel about their financial situation.

Poverty Alliance director Peter Kelly said: “We all have a right to social support, and no-one should be made to feel ashamed for using it. We are recommending that more investment is made into making sure every household is able to get all the help they’re entitled to.”

The inquiry report highlights how involving people with experience of poverty can make public services better. The new Social Security Scotland agency was praised for its work to make sure staff know how important it is to treat people with dignity and respect.

The Group is calling for people who work with the public in Scotland to be trained about the reality of poverty, and for a strong stand against language and behaviour that stigmatises people on low incomes.

And the report also recommends making education about poverty part of Scotland’s national curriculum for schools, helping to project young people from its effects and giving them the tools and confidence to call it out and stand up against it.

Pam Duncan-Glancy said: “The submissions to this inquiry have highlighted that poverty-related stigma is extensive and deep-rooted in Scotland.

“It is impacting people’s mental health and wellbeing, erecting barriers to accessing support, restricting educational attainment, and influencing the design and resourcing of policies that can tackle poverty.

“Now is the time to end it.”

Report-of-the-inquiry-into-stigma-CPG-on-PovertyDownload

Scottish Budget: ‘Strengthening the social contract with Scotland’s people’

Deputy First Minister John Swinney laid out “a different, more progressive path for Scotland” as he presented the Scottish Budget 2023-24.

He promised to strengthen the social contract with the people of Scotland and pledged to do everything possible to shield families from the welfare cuts and austerity policies of the UK Government

Supporting sustainable public services through the cost of living crisis is a priority – including more than £13.7 billion for NHS boards and £2 billion to establish and improve primary healthcare services in communities, as well as £1.7 billion for social care and integration, paving the way for the National Care Service. This record investment goes well beyond any previous commitment to pass on all consequentials to health and social care, and delivers a £1 billion uplift to the health budget.

Having already increased the unique Scottish Child Payment to £25 per week as part of a drive to eradicate child poverty, the Budget invests £428 million to uprate all other devolved benefits in April 2023 by September’s Consumer Price Index inflation level of 10.1%. It commits £20 million to extend the Fuel Insecurity Fund to provide a lifeline for households, including the most vulnerable, against rising energy prices.

Scotland’s transition to net zero is boosted with increased investment to over £366 million in delivering the Heat in Buildings Strategy in 2023-24. This will help tackle fuel poverty as part of a £1.8 billion commitment over this Parliament to improve energy efficiency and decarbonise more than a million Scottish homes by 2030.

The Budget commits £50 million to the Just Transition Fund for the North East and Moray – more than double the 2022-23 allocation – to diversify the regional economy away from carbon-intensive industries and capitalise on the opportunities presented by new, green industries.

Strengthened by the agreement between the Scottish Government and the Scottish Green Party, the 2023-24 Scottish Budget also includes:

  • around £1 billion investment in high quality early learning and childcare provision, with a further £22 million invested in holiday food provision and expanding support for school-age childcare
  • £50 million for the Whole Family Wellbeing programme for preventative co-ordinated family support and a further £30 million to keep The Promise to care experienced children and young people
  • £80 million capital funding to support the expansion of free school meals
  • going beyond existing commitments with more than £550 million additional funding to Local Government
  • £165 million additional funding for frontline justice services and to continue with transformational reforms
  • a £46 million increase in resource funding to universities and colleges to ensure a highly qualified and highly skilled workforce for Scotland

Mr Swinney said: “The Scottish Government, like governments all over the world, is faced with a difficult set of choices. Through this Budget we are facing up to our responsibilities while being honest with the people of Scotland about the challenges which lie ahead.

“To govern is to choose and the Scottish Government has made its choice.

“Within the powers available to us, we will choose a different path. A path which sees the Scottish Government commit substantial resources to protect the most vulnerable people of Scotland from the impact of decisions and policies made by the UK Government. We choose to stand firmly behind the Scottish people, investing in our public services and doing everything possible to ensure that no one is left behind.

“This Budget strengthens the social contract between the Scottish Government and every citizen of Scotland for the wider benefit of society. This social contract means that people in Scotland continue to enjoy many benefits not available throughout the UK – including free prescriptions, free access to higher education and the Scottish Child Payment. 

“Because we know this progressive model works, we choose the path where people are asked to pay their fair share, in the knowledge that in so doing they help to create the fairer society in which we all want to live”.

Read the 2023-2024 Scottish Budget here.

Responding to the Scottish Government Budget, STUC General Secretary Roz Foyer said: “It’s clear that Scotland’s trade union movement has made progress in winning demands from the Scottish Government.

####2Raising taxes on those most able to pay, including second homeowners, are key demands in our ‘Fairer Taxes’ report. We hope reform of the Small Business Bonus Scheme will leave it fairer and less of a drain on public resources and the piloting of scrapping peak rail fares is also a step in the right direction.

“However, we needed strides, not steps. We cannot pretend this is the radical, redistributive budget working people in Scotland needed – it isn’t. We can – and will – demand the government to go much further and deliver the substantial reforms needed to our economy including introducing wealth and further property taxes called for in our report.

“The Finance Secretary has more to do and we welcome his constructive engagement with our movement. This budget leaves the door open for public sector workers to negotiate the inflation level pay rises they so desperately need. We intend to use it.”

Responding to the Scottish Budget delivered by the Deputy First Minister, Dr Liz Cameron CBE, Chief Executive, Scottish Chambers of Commerce, said: “Whilst the backdrop for today’s statement was already set by the Chancellor Jeremy Hunt in the Autumn Statement, today’s Scottish Budget will not bring much Christmas cheer.

“Businesses and households are navigating an extremely challenging period of high energy costs, rising inflation and higher borrowing costs. The specific decision by the Scottish Government to widen the divergence on income tax rates between Scotland and the rest of the UK is exceptionally concerning.

“Many will be left pondering today as to who in the Scottish and UK Governments is standing up for the economy to help businesses survive this crisis and keep people in jobs.”

On taxation:

“The Scottish Government’s move to increase the top and higher rates of income tax will hit taxpayers in Scotland more than other parts of the UK.

“This is a clear disadvantage for Scotland’s businesses and workers and could position Scotland as a less attractive place to live and work. With over 350,000 people alone in the higher rate bracket, questions remain on the impact this will have on talent attraction, retention, consumer confidence and indeed departure of workers to other parts of the UK.

“We urge the Scottish Government to publish its economic modelling of this policy decision, specifically on the proposed impact this could have on future investment decisions by companies.”

On Business Rates:

“As a priority ask from the business community, we welcome the Scottish Government’s decision to freeze the poundage rate and align with the rest of the UK. This will provide relief to ratepayers by reducing the upfront cost burden of non-domestic rates. This was the right decision as is the incentive for businesses to invest in greener plant and machinery which supports net-zero and decarbonisation.

“Looking ahead, businesses need to see widespread reform to the business rates system ensuring it is fit for purpose and aligns with the economic reality that businesses operate in.”

On regulatory legislation:

“The scale of new and incoming regulations are piling additional cost burdens onto firms when they need them least.

“The recent move to delay the short-term lets licensing scheme was welcome and we had hoped for additional signalling from the Deputy First Minister today to delay other burdensome legislation such as the Deposit Return Scheme. This will continue to cause a great deal of frustration for affected sectors and we will therefore continue to represent sector concerns to Scottish Government through the Joint Regulatory Taskforce.”

On Net Zero:

“We welcome the Scottish Government’s intention to accelerate the move to a Net Zero economy. Businesses continue to support this agenda and a clear long-term plan for decarbonisation will support future investment and a just transition.”

Jonathan Carr-West (Chief Executive, Local Government Information Unit Scotland (LGIU) said: “Today’s budget saw Deputy First Minister John Swinney attempting to reach out to local government by promising additional funding and acceding to COSLA’s request to allow councils more freedom over council tax rates.

“Scottish councils will now be poring over the detail to see how much real additional money sits behind the headline of £550 million.

“Moreover, local government in Scotland will still be left wondering how, indeed if, it fits into the Government’s overall vision.

“While Mr Swinney was keen to position his budget in counterpoint to the UK Government, he risks repeating Westminster’s error in protecting the NHS at the expense of local government when we know that the preconditions for good health rely on effective leadership of place and an integration of services that only local democratic institutions can provide.”

The Poverty Alliance says the Scottish Government could do even more to invest in a just and compassionate Scotland:

Tax

Reacting to today’s Scottish Budget announcement, Poverty Alliance Policy and Campaigns Manager Ruth Boyle said: “We welcome the decision to use our tax powers in a progressive way to get more investment for the compassionate Scotland that people want. We hope that this will be the beginning of the Scottish Government’s efforts to use the full range of tax powers at their disposal. In the longer-term, the Scottish Government must reform the basis of our tax system, including implementing the long-awaited reform of council tax, to ensure that our tax system has justice and compassion at its heart.”

Services

“Increased support for the NHS and social care is very much welcomed. However, all of our vital public services are calling out for more investment. This budget raises a number of concerns for the future, and we fear that there will be more cuts to other public services coming down the line. We all rely on these public services, but they are a vital lifeline for people on the lowest incomes.”

Social security

“We are pleased that the Scottish Government have done the right thing and uprated benefits in line with inflation. However, we could go much further. The Finance Secretary stated that a key priority for this budget was tackling child poverty and it is therefore disappointing that the budget failed to uprate the Scottish Child Payment in line with other Scottish benefits. This will mean a real term cut in the value of the payment at a time when families on low incomes need more support to stay afloat. This decision raises particular concern for the poverty of single parents, over 90% of whom are women.”

Transport

“The decision to trial the scrapping of peak rail fares will help people to make ends meet as costs continue to rise. However, evidence shows that people on the lowest incomes are more reliant on buses. There is a need to improve access to affordable transport by extending free bus travel to people on low-income benefits and to those aged under 25.”

‘It’s Hard Work Being Poor’

A new report has found shocking evidence that women in Scotland are suffering increasing hardship, destitution, and food insecurity due to lack of support during the cost-of-living crisis.

In research conducted in partnership, the Poverty Alliance and the Scottish Women’s Budget Group (SWBG) found that women are experiencing increasing financial hardship and are at risk of falling into further debt as a consequence of the cost-of-living crisis. Women in low-paid work reported often missing out on social security support or cost-of-living payments, or free school meals, because they earn just above income thresholds.

The research was funded by abrdn Financial Fairness Trust and Esmée Fairbairn Foundation and included women from diverse backgrounds across Scotland. Women told researchers they are worried whether they will be able to afford their energy bills in winter and parents and carers are struggling to afford food and essential items like baby wipes, incontinence pads, and toilet roll.

The report contains 15 recommendations on how to better support women through this crisis and beyond. Key priorities include:

  • Ensuring adequate incomes for all through a “caring social security system”;
  • Investing in preventative public services and in support and advice services to help people manage debt;
  • Improving community amenities and services, ensuring that support provided is free from stigma;
  • For the UK government to uplift social security in line with inflation;
  • For the Scottish government to expand eligibility to sources of emergency support for women experiencing in-work hardship.

Download the report from here.

SWBG co-ordinator Sara Cowan said: “The costs crisis is affecting the vast majority of us, but this powerful research highlights again the unjust way that poverty especially affects women in our society.

“Women are more likely to be poor, have lower levels of savings and wealth, and are less able to find suitable work or increase their hours if they’re in work often due to caring responsibilities that fall disproportionately on women.

“The women in this research talked about the impossible decisions they had to make to prioritise feeding their children, and whether or not to turn the heating on. Or not being able to buy things like baby wipes, incontinence pads, or toilet roll.

“The Scottish and UK Governments can help by increasing and extending the emergency support available to people, and working to put justice and compassion at the heart of social security and our public services.”

Vivienne Jackson, Programme Manager at abrdn Financial Fairness Trust, said: “This important research shines a light on the real experiences of women in Scotland. It’s not right that people are struggling to afford to feed their families, or having to live in freezing cold houses because they can’t afford to put their heating on.

“We hope this research will add to the growing body of evidence that households need much more help from government during this crisis, and that we need to make financial fairness an urgent government priority.”

Fiona McHardy, Research and Information Manager at the Poverty Alliance, said: “This research shows that women are at risk of being pushed into destitution. The financial support that has been made available so far by both UK and Scottish Governments to help with the cost-of-living crisis is clearly not sufficient for many of the women in our study.

“It is vital that the UK Government increases the value of social security benefits in line with inflation. Any cut to UK benefits will led to unacceptable hardship for more women.

“In Scotland, we must find ways to expand eligibility for people who are in employment, are in need, but miss out on support. Too many women in Scotland are in urgent need of support – Scottish Ministers must leave no stone unturned in finding resources to support them during this crisis.”

SWBG_PA_Cost_of_Living_Report_FinalDownload

Women’s Realities (case studies)

The diary entries and interviews document women’s increasing desperation and despair as costs kept rising and incomes stayed where they are.

Stella

Stella, a Black lone-parent mother living with her children. Due to illness and subsequently losing employment, she had to apply for Universal Credit two years ago.

Even before the cost-of-living crisis, she noted how Universal Credit was an ‘insufficient means of livelihood even under normal circumstances as a single parent’. Now, due to increased utility bills, Stella supplements income with credit cards, which are accruing debt, and asking to ‘borrow money from family and…friends for financial help’. Stella was concerned about her energy bills, so now she only uses the washing machine once a week for her family.

Stella’s children were conscious of rising costs: ‘even as a child [her son] realises how much food bills have increased, and it impacts him greatly’. On top of the impact this is having for her child, she shared that she is having to consider ‘significant changes in [their household’s] diet’.

Stella was becoming increasingly socially isolated because of the high cost and unreliability of public transport. Consequently, she is unable to ‘attend church every Sunday. This impacts me spiritually and deprives me of much needed interaction and social isolation’.

Her September entries were mainly focused on how price rises were impacting every aspect of her family’s life. Food was costing over £20 more each shop, and when thinking about the future, she noted: ‘it will be too much and [she] will not be able to afford it’.

Stella wrote: “This cost-of-living crisis have brought untold pain and suffering on women especially single parents and children because of the way it impacts our lives on a daily basis. Not being able to afford the essentials of life can be very stressful and robs women of their dignity and self-worth.”

Sue

Sue is a white lone parent mother who has long-term health issues. She works part-time and recently stopped accessing Employment and Support Allowance by taking on a second low-income job.

To manage increased costs of living on her low income, Sue made a list of ideas including getting another part-time job, asking for more hours in her current employment, asking for a mortgage holiday, skipping meals and selling jewellery and things in the house. She wrote: “Sad one this for me, sold jewellery, mine and my gran’s wedding rings…but it is to help in a crisis that our household is facing and needs action fast so it had to be done”.

Idia

Idia, a lone mother, reflected on the challenges of being able to afford food and going hungry in almost all her diary entries. On the small amount she receives as an asylum seeker for her family, she wondered how she is expected to be able to buy food with costs rising week by week. She shared the damaging impacts on her mental health. She also shared: “the most frustrating part of the week for me was not being able to afford to get my kids snacks”.

“I spoke to my friend who told me she has been starving and only eats at night,” Idia said. “I have started doing that though it didn’t go well with me the first day, but I will get used to it.”

Sarah

Sarah is a parent and works full-time in a role providing advice and support to people in the community. In October, she was concerned about managing her existing debts and rising energy costs, particularly as she lives in an old house with poor insulation. She is no longer able to afford to go out places and see family or friends. Her interview highlighted the challenges for people in low-paid work during the crisis. She is not entitled to benefits or support with the cost of living.

Sarah said: “And I was thinking, ‘How can I… how can I keep my daughter, how can I keep warm? What if I have to go to work and then come home and freeze my ass off every night. And I was, I honestly got to the point where I was thinking, ‘What’s the point of living?’ You were going into shops, the prices were going up so much, and it was like, ‘Well I work so God damn hard, I get no help. I’m helping people get help, do you know what I mean? But yet I can’t access any help myself?’.”

Christmas Cheer: Extra cash for low-income families this winter

First Minister announces doubling of December Bridging Payment to £260

Families of an estimated 145,000 children will benefit from extra support this winter to help with cost of living pressures – backed by Scottish Government investment of £18.9 million.

Bridging Payments were introduced in 2021 ahead of the extension of the Scottish Child Payment to 6-15 year olds. The final quarterly Bridging Payment, due in December, will now be doubled to £260, meaning families will receive up to £650 per eligible child this year.

All children registered to receive free school meals on the basis of family low income are eligible and will receive this payment automatically.

Total Scottish Government funding for the Bridging Payments will increase to an estimated £169 million across 2021 and 2022.

This is in addition to the Scottish Child Payment which will be extended to all eligible under-16s from 14 November and will rise to £25 per child per week on the same date – a 150% increase in the benefit within eight months.

First Minister Nicola Sturgeon said: “I am proud of the work the Scottish Government is doing to tackle child poverty. The Scottish Child Payment is paid to eligible families and is unique in the United Kingdom.

“It started for under-6s at £10 per week per eligible child. In April we doubled it to £20.  Five weeks from today we will increase it again, to £25 and will also extend it to families with children up to age 16.

“That is vital financial help for well over 100,000 children, delivered in time for Christmas. That is the sign of a government with the right priorities.

“But we need to do more because we know this winter is going to be really tough. Rather than looking forward to Christmas, too many families will be dreading it because they don’t know if they can afford to heat their homes or even pay for food.

“As part of our help to the poorest families over last year and this, ahead of rolling out the Scottish Child Payment to under 16s, we have made quarterly bridging payments of £130 to children and young people in receipt of free school meals.

“I am delighted that the Scottish Government will double the December Payment from £130 to £260.

“That will help put food on the Christmas table for families of 145,000 children and young people. I don’t pretend it will make all of their worries go away – no government with our limited powers can ever do that. But I hope this investment of almost £20 million will bring a bit of Christmas cheer to those who need it most.”

Bridging Payments were introduced in 2021 ahead of the roll out of the Scottish Child Payment to under 16s. The £130 payments are paid quarterly by councils on behalf of the Scottish Government. Families received up to £520 per eligible child in 2021 and will receive up to £650 in 2022. Bridging Payments support around 145,000 school age children.

Povery campaigners have welcomed the announcement.

The Poverty Alliance tweeted: ‘We welcome @NicolaSturgeon announcement today that the @scotgov will double the final Scottish Child Payment bridging payment, up from £130 to £260.

‘This will put cash in the pockets of those who need it most. This is how we #ChallengePoverty‘

Scotland Demands Better!

The Scottish Government has been warned not to ‘abandon’ communities as Scotland’s largest trade union body, equality and anti-poverty organisations launch Scotland’s largest national campaign against the cost-of-living emergency.

Ahead of SNP Conference and as Challenge Poverty Week ends, The Scottish TUC, the Poverty Alliance and groups across the country launched the ‘Scotland Demands Better’ campaign. The campaign outlines the ‘People’s Plan for Action’ demanding nine actions from the Scottish Government to alleviate the crisis.

Demands include increased public sector pay, rent controls, wealth taxes and universal free school meals. The campaign further calls for increased social security payments, doubling the Scottish Child Payment and increasing Carers Allowance payments. The plan follows the STUC and Poverty Alliance joint summit on the cost-of-living crisis earlier this year.

Launching the campaign, STUC General Secretary Roz Foyer and Poverty Alliance Director Peter Kelly have written to the First Minister calling for a joint roundtable meeting to help implement the plan.

Commenting, STUC General Secretary Roz Foyer: “This campaign represents the voices of our communities. Government cannot abandon them in their hour of need and we’re seeking an urgent meeting with the First Minister to directly support workers impacted by this crisis.

“The People’s Plan for Action sets out exactly what we need to see from the Scottish Government. Whilst Westminster remains unwilling and uncaring to help ordinary workers, the Scottish Government must take a different path.

“Increasing public sector pay, accelerating rent controls and implementing wealth taxes gives Scotland’s poorest the lifeline they need to survive this emergency. Poverty and destitution are political choices. Scotland demands better than the devastation and hardship wilfully inflicted upon our most in need.”

Peter Kelly, director of the Poverty Alliance, said: “We want to put justice and compassion back at the heart of public life in Scotland – so we can build support for practical action to tackle poverty.

“With this plan, we can start to rebuild and renew our social security, boost incomes for workers, invest in the public services we all rely on, and give people the urgent help they need with rocketing costs.

“This crisis is a moment for decision for all of us – and especially our politicians. We can create a better Scotland where poverty is a thing of the past.”

To tackle the cost of living for the people of Scotland, we demand the following –

1. A real pay rise for all public service workers

2. A social security system that loosens the grip of poverty

3. Warm homes, through municipal energy companies

4. Sustained action to tackle rent costs

5. Share the wealth, through income, wealth and business taxes

6. Universal free school meals

7. Cheap, publicly controlled public transport

8. More support for childcare

9. Enforcement of Fair Work

Holyrood: Rent freeze is focus of Programme for Government

Ministers act to protect Scots facing cost of living crisis

A combined rent freeze and moratorium on evictions to help people through the cost crisis has been announced as the centrepiece of the 2022-23 Programme for Government (PfG).

The programme outlines emergency legislation which will be introduced to put in place a rent freeze until at least 31 March 2023 and a moratorium on evictions, as well as a new tenants’ rights campaign. In addition a ‘one-stop-shop’ website will be introduced to provide people with information on the range of benefits and support available to help them through the current cost of living crisis.

With £3 billion allocated to the end of March for a range of support that will help mitigate the impact of the cost crisis on households, the PfG also confirms the Scottish Child Payment will increase to £25 per week per eligible child from 14 November when it also opens to all under 16s.

In addition, the programme includes the roll out of free school meals across all primary school age groups, doubles the Fuel Insecurity Fund to £20 million to help households at risk of self-disconnection or self-rationing of energy, confirms rail fares will be frozen until March 2023 and widens the Warmer Homes Fuel Poverty Programme.

For businesses – in addition to an existing package of financial aid worth over £800 million – six ground-breaking ‘tech scalers’ will be opened, two job-boosting Greenports progressed and the National Strategy for Economic Transformation focussing on economy supporting measures continued.

In total, the PfG sets out 18 new Bills including legislation on an independence referendum and major reforms in the justice system, including a Criminal Justice Reform Bill that will propose the end of the Not Proven verdict in Scots Law and provide anonymity for complainers in sexual offence cases.  A Bill for the creation of the new National Care Service will also go through parliament this year.

The programme also builds on long-term commitments made in the Bute House Agreement and restates Ministers’ commitment to the importance of delivering on Scotland’s climate ambitions. These range from a consultation on legislation to transform how buildings are heated to continuing record investment in active travel.

First Minister Nicola Sturgeon said: “This Programme for Government is published in the context of the most severe cost crisis in many of our lifetimes. It is a crisis pushing millions into poverty and poses a genuine danger, not just to livelihoods, but to lives.

“The Scottish Government is already committed to a range of measures, worth almost £3 billion this year, that will help with rising costs. But the magnitude of what is being experienced by people and businesses means that mitigation is nowhere near sufficient. What is needed now is action on a scale similar to the initial Covid response.

“Regrettably, the powers to act in the manner and on the scale needed do not lie with this Parliament. In my view, they should lie here. If they did, we could have acted already. But they don’t. These powers are reserved to Westminster.

“The cost crisis means this Programme for Government is more focussed than ever before – deliberately so – with priority actions to provide help now.

“To that end we will provide more help for people who may be at risk of self-rationing or even self-disconnection from their energy supply and we will double the Fuel Insecurity Fund to £20 million this year.

“We will also propose emergency legislation to put in place a rent freeze until at least March and a moratorium on evictions.

“Given the powers to act in the manner and on the scale needed do not lie with this Parliament, this Programme for Government also provides for a Scottish Independence Referendum Bill.

“Independence would give us – like it does other independent countries – the levers we desperately need to respond to a crisis such as this. That’s the prize we surely must grasp.”

Commenting on the Scottish Programme for Government, Peter Kelly, director of the Poverty Alliance said: “The First Minister outlined many important measures today. The increase in the value and availability of the Scottish Child Payment will help thousands of households with rising living costs. Rent freezes will help tenants across the country.

“But we could do more. The First Minister said that it is not a lack of political will that prevents us from further action to help people with this cost crisis – it is a lack of money. So, the upcoming emergency budget review must focus on getting additional cash into the pockets of people on low incomes.

“One way we can raise money in Scotland, is through devolved taxes. Previous changes to the Scottish Income Tax have raised hundreds of millions of pounds for public services. We can go further. There are also opportunities to reform local council taxes, to make them fairer and raise much-needed revenue for overstretched services in our communities. There was no mention of any new wealth taxes in this programme for government.

“The First Minister talked about creating a culture of solidarity in Scotland. People in Scotland already believe in holding out a hand to others when we need help. We can use our tax system to support each other in this time of crisis, and reflect the values of compassion and justice that we all share.”

Commenting on the Scottish Programme for Government, Friends of the Earth Scotland head of campaigns Mary Church said: “There is a welcome recognition in the Programme for Government that the cost of living crisis and the climate emergency are interconnected but the action to mitigate their impacts and tackle their root causes falls far short of what is needed.

“One year on from COP26 in Glasgow, the Scottish Government’s fine rhetoric has not turned into the transformative action needed to drive change across transport, housing and energy.

“The Scottish Government must use its forthcoming energy strategy to spell out how it will secure a rapid and fair transition away from the fossil fuels which are driving both crises within the next decade. By transforming our energy system to run on reliable, affordable renewable energy we can future proof our lives against further damage from volatile fossil fuels.

“The energy strategy must focus on demand reduction, energy efficiency and renewables, which can deliver decent green jobs in Scotland instead of fantasy techno-fixes like hydrogen and carbon capture. The Scottish Government has admitted that these speculative negative emission technologies won’t be able to deliver this decade so it’s hard to see why it continues to throw time and resources at the fossil fuel industry’s pipe dreams.

TRAIN FARE FREEZE

“The freeze on ScotRail fares demonstrates how public ownership can keep fares from getting even higher, benefiting passengers and helping support the necessary shift away from cars. While the fare freeze is welcome, the Scottish Government should be going further and actually reducing fares to help more people leave the car behind.

CIRCULAR ECONOMY

“We saw the same promise to introduce a Circular Economy Bill 12 months ago, it must be delivered this time. Consumption targets to reduce both Scotland’s carbon footprint and material footprints need to be at the heart of the Circular Economy Bill to create real change.

HUMAN RIGHTS BILL

“It’s disappointing that the Human Rights Bill that would enshrine the right to a healthy and safe environment in Scots Law has been kicked into the long grass. This is a vital piece of legal protection for people and nature that should not be delayed any further nor cannot it be allowed to become a political football in the constitutional debate.”

City council Leader Cammy Day has welcomed yesterday’s announcement by the Scottish Government that it intends to introduce a bill to give councils the powers to introduce a visitor levy.

The bill, which is expected to be laid before parliament early next year, forms of the Scottish Government’s Programme for Government for 2022/23, as set out by the First Minister in Holyrood this afternoon.

The council has long campaigned for the powers to introduce a levy – which would see overnight visitors pay a small additional charge on their accommodation – and has produced a substantial body of work to back its case.

This included a detailed consultation conducted by Edinburgh’s SNP-Labour ‘Capital Coalition’ in 2018, which saw 85% of the 2,500 respondents expressing strong support for its introduction. This figure included a majority of Edinburgh-based businesses and accommodation providers.

It was estimated then that a levy in Edinburgh could raise in the region of £15m per year to invest in sustainable tourism and managing the impact of tourism on the city.

Council Leader Cammy Day said: “This is fantastic news for the city, and a landmark step following years of work here in the Capital to make the case for a visitor levy – something that’s common practice in other major cities and destinations across the world.

“We’re very proud to be one of the world’s most popular visitor destinations, but we’re equally aware that this success comes at a cost. That’s why we believe it’s right to ask visitors to make a small contribution to help us sustain and improve our tourism offer while managing its impact.

“We’ve been building the case for Edinburgh to become the first city in the UK to introduce such a levy, consistently and repeatedly making the case to Scottish Ministers without success – until now. From our citywide consultation held in 2018, our proposals gained overwhelming backing from Edinburgh’s residents, businesses and attractions – and, importantly, also from the majority of accommodation providers.

“Ultimately the income this generates will help us continue to invest in and manage the success of tourism on our city, making sure we continue to offer one of the most enviable and enjoyable visitor experiences in the world – while bringing new and additional benefits to our residents who live and work here all year round.

“We acknowledge, of course, that this has been an extremely challenging period for our culture and hospitality industries and are fully committed to working together with them, the wider tourism industry and other partners to co-produce a scheme that works best for the whole of our Capital city.

“I’ll be pushing the Scottish Government hard to ensure that any income generated is in addition to our block grant funding – not instead of it – and that we’re in a position to benefit from this as soon as possible.”