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RACHEL REEVES: We will deliver security for working people and renewal for Britain

BRITAIN’S POOREST COMMUNITIES FACE MORE HARDSHIP

  • Chancellor vows to bring about “security and national renewal” as she delivers a Spring Statement to kickstart economic growth, protect working people and keep our country safe.  
  • Reeves will warn that “we have to move quickly in a changing world”, unveiling a significant step towards spending 2.5% of GDP on defence with £2.2 billion funding boost next year.  
  • Growth and national security at heart of Plan for Change as funding invested in cutting-edge weapons and better homes for thousands of military families – paid for by reductions to international aid budget and from the Treasury reserve.  

The Chancellor will promise to deliver “security for working people” and a “decade of national renewal”, as she reveals how the Government will put advanced weaponry in the hands of British troops, provide better homes for military families and kickstart economic growth through the Plan for Change.   

At today’s Spring Statement, the Chancellor will announce a further £2.2 billion funding increase for defence from April, as she warns that Britain has to “move quickly in a changing world”. 

The funding will be invested in advanced technologies so that Britain’s armed forces have the tools they need to compete and win in modern warfare. This includes guaranteeing the investment to fit Royal Navy ships with Directed Energy Weapons by 2027. These weapons can hit a £1 coin from 1km away and take down drones at a distance of 5km.  

It will also be used to provide better homes for military families by refurbishing the defence estate – including over 36,000 homes recently brought back into public ownership from the rental sector. In addition to this, the funding will unlock rapid preparatory work, such as site surveys, planning and architecture, for the major redevelopment of Armed Forces housing through the Defence Housing Strategy.   

The investment will also help fund upgrades to infrastructure at His Majesty’s Naval Base Portsmouth, securing its ability to support Royal Navy operations into the future.   

Speaking in the House of Commons today, Chancellor of the Exchequer Rachel Reeves is expected to say: “This government was elected to change our country.

“To provide security for working people. And deliver a decade of national renewal. 

“That work of change began in July – and I am proud of what we have delivered in just nine months. 

“Restoring stability to our public finances; giving the Bank of England the foundation to cut interest rates three times since the General Election; rebuilding our public services with record investment in our NHS and bringing down waiting lists for 5 months in a row; and increasing the National Living Wage to give 3 million people a pay rise from next week. 

She will add: “Now our task is to secure Britain’s future in a world that is changing before our eyes. The job of a responsible government is not simply to watch this change. 

“This moment demands an active government stepping up to secure Britain’s future. A government on the side of working people. 

“To grasp the opportunities that we now have and help Britain reach its full potential, we need to go further and faster to kickstart growth, protect national security and make people better off through our Plan for Change. 

She will also say: “In February, the Prime Minister set out the government’s commitment to increase spending on defence to 2.5% of GDP from April 2027 and an ambition to spend 3% of GDP on defence in the next parliament as economic and fiscal conditions allow.

“That was the right decision in a more insecure world, putting an extra £6.4bn into the defence budget by 2027. But we have to move quickly in a changing word. And that starts with investment. 

“So I can today confirm that I will provide an additional £2.2bn for the Ministry of Defence next year – a further downpayment on our plans to deliver 2.5% of GDP. 

“This increase in investment is not just about increasing our national security but increasing our economic security, too. As defence spending rises, I want the whole country to feel the benefits.” 

The plan will include action to harness the ingenuity of Britain’s leading manufacturing and technology sectors, creating jobs across the country and putting more money into people’s pockets.   

The increase set to be announced today follows the extra £2.9 billion announced for defence in the Autumn Budget and takes spending as a proportion of GDP to 2.36 per cent in 2025/26 – up from 2.3 per cent in 2024/25.   

The announcement is fully funded. The new money comes from in-year funding from the Treasury reserve and from changes to the Overseas Development Assistance budget, so will not require additional borrowing and will maintain the Chancellor’s ironclad fiscal rule. 

Further detail on the Ministry of Defence’s investment plan will be set out via the Strategic Defence Review in the Spring and the Spending Review in June.   

Commenting on the increase in defence spending, Defence Secretary John Healey said: “National security is the bedrock of a successful economy and our Plan for Change. This significant increase in defence spending, on top of the £2.9bn announced by the Chancellor at the Budget, means an extra £5 billion for our Armed Forces next financial year. 

“This investment will make Britain stronger and safer in a more insecure world. And it will ensure defence is an engine for growth, creating good jobs across the nation. 
 
“These are the bold first steps of the largest sustained increase in defence spending since the Cold War announced by the Prime Minister last month. Our government is delivering for defence and investing in the outstanding men and women who keep Britain secure at home and strong abroad.” 

EVOC: CEO Update

I have now been in post as CEO with EVOC for 25 days (on 22/1), though it sometimes feels like a lot longer! I have had a whirlwind of an introduction, and my feet have hardly touched the ground, which has made it exciting. 

I have met a lot of great people from across the sector and our partner organisations, including the City of Edinburgh Council and the Scottish Government. I have been made to feel welcome and have learned a lot from a diverse mix of individuals.

I have heard of the challenges different organisations are facing right now, and these conversations are shaping my understanding and giving me insights that I will be distilling, with colleagues, into our future planning. 

We are currently seeking the views of members and voluntary organisations in Edinburgh to tell us about their needs and the challenges that they are facing in 2025 and beyond. To increase the number of people who can contribute, we are using a survey that will be circulated to our members.

Please take a few minutes to complete it to ensure we consider the needs of more organisations in shaping how we work in future and what our priorities will be.

This month we are preparing for our Annual General Meeting at 4pm on Wednesday 26 February which will be held on Zoom. We will report on the year 2023/24 and give a flavour of our plans for the future.

We are looking for new individuals with business skills to be elected to the board of EVOC to join a committed group of volunteers who are interested in the development of EVOC as representatives to serve third sector organisations in Edinburgh. You can find how to apply to join the Board of Directors here.

Separately we are seeking a new Convener to chair the board and provide leadership to the organisation and directors. We’re looking for somebody with integrity good governance, leadership, finance and change management experience. If you are interested in this role, please see the details here.

We are spending a great deal of time currently in seeking ways to support those organisations affected by the impending cuts to the Edinburgh Integration Joint Board (EIJB) grants scheme which is a partnership between the NHS and the City of Edinburgh Council. 

In recent months we have increased our engagement across the sector, so that we are better able to represent the views and interests of voluntary organisations in strategic forums such as the EIJB and the Edinburgh Partnership.

We are doing this as we strengthen our culture of service, to our members and to the sector. 

With best wishes  

Bruce Crawford, CEO 

Colleges: Financial challenges mount

Scotland’s colleges need more clarity from ministers on what parts of their role to prioritise, as the sector’s financial challenges mount, according to Audit Scotland.

The public spending watchdog released their latest ‘Scotland’s Colleges’ report this morning.

Scottish Government funding for colleges reduced by £32.7 million in cash terms in 2024/25. Funding has reduced by 17 per cent in real terms since 2021/22. Cash balances held by colleges are also forecast to fall.

Colleges have used voluntary severance schemes to reduce their costs, with nearly 500 staff leaving colleges in 2022/23. Staffing makes up around 70 per cent of colleges’ costs and the sector expects further cuts in coming years.

The financial challenges and staffing reduction means colleges may not be able to offer the same learning experience to students as in the past. Meanwhile, the lack of reform of the post-school sector is causing continuing uncertainty for colleges.

Stephen Boyle, Auditor General for Scotland, said: “The college sector is facing huge challenges. But to plan effectively for the future, colleges need a much stronger steer from the Scottish Government on what parts of their role to prioritise.

“The Scottish Government also needs to respond quickly to the results of its consultations on post-school reforms to provide the college sector with more certainty.”

briefing_240919_Scotlands_collegesDownload

Chancellor chairs first Growth Mission Board

The Chancellor continued her drive for a new approach to growth underpinned by stability, investment and reform yesterday (23 July), as she chaired the first Growth Mission Board with ministers across government.

Rachel Reeves views the forum as vital in driving forward the Growth Mission, enabling her to work with her colleagues across government to boost productivity, deliver good jobs, and make everyone better off.

The Chancellor is focused on driving forward the Growth Mission, including the development a modern Industrial Strategy, in partnership with business, to remove barriers and provide key sectors with the clarity and certainty they need to seize growth opportunities

She will also work with ministerial colleagues to develop the English Devolution bill to strengthen local leadership and give new powers to metro mayors and combined authorities to deliver growth across the country, alongside improving the infrastructure planning regime to unlock investment and boost grid connections.

Tuesday’s meeting follows the immediate steps the government has taken to boost growth including announcing a series of planning reforms to get Britain building; removing the de facto ban on onshore wind; establishing the National Wealth Fund; announcing a Pensions Review to unlock growth, boost investment and deliver savings for pensioners; launching Skills England; and announcing the white paper on getting Britain working again.    

The Growth Mission is the first of five missions proposed by the Government, each of which focus on ambitious, long-term objectives for the country.

Chancellor of the Exchequer Rachel Reeves said: ““Growth is our number one mission and in our first few weeks this Government is taking the tough decisions to deliver on that agenda.

“From planning reform and supporting our future industries to strengthening local leadership and forging ahead with new infrastructure, our work has just begun to fix the foundations so we can rebuild Britain and make every part of the country better off.”

King’s Speech will put growth at the heart of Labour’s legislative agenda

Starmer prepares for The King’s Speech at the State Opening of Parliament on Wednesday 17 July

  • New laws will prioritise growth, the Government’s overarching mission for the year ahead
  • Legislative programme will support delivery of the Government’s first steps and missions to rebuild Britain
  • Focus on improving the prosperity of the country and living standards of working people

The Government will use its mandate for change to put economic growth at the heart of its legislative agenda as it prepares for The King’s Speech at the State Opening of Parliament on Wednesday (17 July). 

Departments are working on more than 35 bills to deliver an ambitious parliamentary session that will be built on a bedrock of economic security, to enable growth that will improve the prosperity of our country and the living standards of working people.

Legislation will include a bill to enforce tough new spending rules, designed to ensure economic growth, while avoiding the chaos which left families with spiralling bills and wreaked misery on people’s lives.    

To ensure nobody can play fast and loose with the public finances ever again, this new bill will strengthen the role of the Office of Budget Responsibility, meaning significant fiscal announcements must be properly scrutinised and that taxpayers’ money is respected.

Prime Minister Keir Starmer said: “Our work is urgent. There is no time to waste. We are hitting the ground running by bringing forward the laws we will need to rebuild our country for the long-term – and our ambitious, fully costed agenda is the downpayment on that change. 

“From energy, to planning, to unbreakable fiscal rules, my government is serious about delivering the stability that is going to turbo charge growth that will create wealth in every corner of the UK.

“The task of national renewal will not be easy, and this is just the down payment on our plans for the next five years, but the legislation set out at the King’s Speech will build on the momentum of our first days in office and make a difference to the lives of working people.”

‘His Majesty’s Most Gracious Speech’ will build on the momentum of the Government’s first week in office which saw the Prime Minister and his ministerial team roll up their sleeves and get to work.

Legislation to enact announcements made this week, including the launch of a National Wealth Fund to drive investment into the UK, to a new Mission Control tasked with turbocharging UK to clean power by 2030, to opening the recruitment of a new border security command, show that the Government is getting on with the job.   

The package of bills will focus on growing the economy through ‘turbocharging’ building of houses and infrastructure, better transport, more jobs and securing clean energy – helping to make every part of the country better off.  

As part of the Government’s plans to empower regions to deliver change for their communities, new legislation will also help to create wealth in every community and hand the power back to local leaders who know what is best for their areas.

Ian Murray ‘determined to reset the relationship between the UK and Scottish Governments’

‘My absolute priority in the role will be to deliver the change and renewal that Scotland needs‘

Secretary of State for Scotland Ian Murray said: “It is a real privilege to have been asked to serve in Prime Minister Keir Starmer’s first Cabinet as Secretary of State for Scotland.  My absolute priority in the role will be to deliver the change and renewal that Scotland needs – to drive economic growth, create jobs and reduce poverty.

“As we rebuild our country, I look forward to Scotland standing foursquare with the other UK nations. I will make sure that the Scotland Office is a strong voice for Scotland within the UK Government. 

“New funding will help tackle poverty in Scotland by creating jobs and unlocking opportunities across the country, especially in our most deprived communities.

“The Scotland Office will lead on promoting ‘Brand Scotland’ around the globe. Selling our world class produce, products and services to the world. 

“I am also determined to reset the relationship between the UK and Scottish Governments. Focusing on co-operation and joint working will mean we can deliver better results for people in Scotland.”

Nearly £50 billion invested in Scottish Government priorities

Funding to support the NHS, reduce carbon emissions and help tackle poverty

Almost £50 billion was spent by the Scottish Government last year on public services to help tackle child poverty, reduce carbon emissions, support the NHS and secure pay deals, according to newly published official figures.

The Provisional Outturn, which compares actual spending with the funding commitments set out in the Budget, shows that the Scottish Government spent £49.3 billion in the 2023-24 financial year. There was £292 million remaining – representing 0.6% of the Scottish Government’s total budget – all of which has been carried over through the Scotland Reserve to be directed towards priority areas in 2024-25.

In 2023-24 the Scottish Government:

  • spent nearly £5.2 billion on social security benefits. This includes £429 million on Scottish Child Payment, alongside funding to introduce Carer Support Payment in pilot areas, ahead of full roll-out in 2024, and to widen eligibility for Best Start Foods
  • invested more than £19 billion in health and social care, supporting recovery and reform to secure sustainable public services, while delivering a pay uplift for NHS staff
  • provided nearly £220 million to the Heat in Buildings Programme to help deliver greener and more energy efficient homes
  • continued providing Just Transition Fund grant funding, including £16.8 million for projects in the North-east and Moray regions, in addition to £3 million to help vulnerable global communities address loss and damage brought on by climate change
  • invested almost £422 million on bus services and concessionary fares, providing up to 2.3 million people in Scotland with access to free bus travel.

Public Finance Minister Ivan McKee said: “These figures show once again how this government is prudently and competently managing the public finances while delivering funding for the things that matter to people across Scotland, not least the NHS and action to tackle child poverty.

“The Scottish Government has consistently balanced its budgets each and every year. This represented a significant challenge last year, as the continued impact of persistently high inflation, pressure on public sector pay, backlogs as a result of the Covid pandemic and the war in Ukraine combined to place pressure on the public finances.

“We are not allowed to overspend, so must leave ourselves with the headroom to manage any unexpected shocks or issues. The remaining funding has been allocated in full in 2024-25, allowing us to implement measures at the most optimal time rather than being constrained to a single financial year.” 

Eradicating child poverty

£16M funding to expand access to childcare services

First Minister John Swinney has announced £16 million for childcare services to help deliver his vision of a Scotland free from child poverty.

In a statement to Parliament, the First Minister set out the four priorities that will underpin the work of his government. He said eradicating child poverty would be his government’s single most important objective.

Over the next two years, the Scottish Government will provide additional funding to expand access to childcare services within six Early Adopter Community (EAC) projects.

The funding will allow expansion into to new communities, including in Fife and Shetland, and inform what childcare should look like for younger children. The investment will support the development of local childcare systems that are designed to meet families’ needs, with funding targeted at those who are most at risk of living in poverty.

Earlier yesterday, the First Minister visited a breakfast club at Capshard Primary School in Kirkcaldy to see the impact of innovative school age childcare services which contribute to the eradication of child poverty and grow the economy, by helping parents and carers access the childcare they need to find and sustain good jobs.

Speaking in parliament, the First Minister said: “In modern Scotland, it should not be a struggle to find fair work or to raise a family. So for me, and for my government, eradicating child poverty and boosting economic growth, go hand in hand.

“Over the next two years, we will invest £16 million to tackle poverty and help families, by expanding access to childcare services within six Early Adopter Community projects.

“This investment will support low income families to enter and sustain employment, with funding targeted at those who are most at risk of living in poverty.”

Swinney to outline priorities for Scotland

Eradicating child poverty is FM’s central mission

First Minister John Swinney is to set out the priorities that will underpin the work of his government today (Wednesday, 22 May), focused on a central mission to eradicate child poverty.

In a statement to Parliament, the First Minister is expected to commit the Scottish Government to eradicate child poverty and to work with business and industry to grow the economy, invest in net zero and deliver stronger public services.

The First Minister will also make clear the need for bold and collaborative action across the Parliament, focused on the priorities of people in Scotland.

Ahead of the statement, the First Minister will meet pupils at a new breakfast club in Kirkcaldy in Fife. There he will see the impact of innovative school-age childcare services in contributing to the eradication of child poverty and growing the economy – by helping parents and carers access vital childcare to help find and sustain good jobs.

The First Minister said: “Eradicating child poverty will be the single most important objective of my government – and work in other priority areas will support and drive that mission.

“I intend to build on our record of delivery. Since 2007, economic growth, per head, and productivity have been stronger in Scotland than the rest of the UK, Scotland’s core A&E units are the best performing in the UK, and measures such as our Scottish Child Payment are estimated to keep 100,000 children in Scotland out of relative poverty this year.

“I am acutely aware of the economic and fiscal realities that we face and I want to take forward measures that will help people and their families to get on in life: to enable the people of Scotland to live happier, healthier lives.

“One of the benefits of long service in politics is having witnessed the Scottish Parliament when it is functioning at its very best. That happens when parties work constructively together.

“My government will do everything in our power – working with Members from across parties – to make child poverty a thing of the past.”

Choudhury plea to Scottish Government: Make housing a priority

Scottish Labour MSP Foysol Choudhury has implored the Scottish Government to make housing a priority in 2024.  

Mr Choudhury has raised concerns over the festive period that hundreds could sadly be faced with rough sleeping this winter, with many more at risk of homelessness or living in what he says is unsuitable temporary accommodation.  

Mr Choudhury says he is often inundated with casework where constituents are in poor quality temporary housing and are concerned about the lengthy waits for housing.  

It is reported that there could be almost 30,000 people facing homelessness this year. Recent budget plans, however, will see a real-terms cut in homelessness prevention funding for local authorities of £500,000. Mr Choudhury says that this is unacceptable and that the Scottish Government must make it a priority in 2024 to give local authorities sufficient funding.  

Mr Choudhury said:  “I am reiterating my plea yet again this festive season to the Scottish Government to increase funding to local authorities, so that Councils can ensure that they can meet the demand for housing and have the capacity to build more social housing. 

“We also must ensure that Councils have enough funding to make improvements and upgrades to current properties such as retrofitting, which could help improve conditions such as mould and damp which my constituents often report to me. 

“Nobody in Scotland should be forced into homelessness or have to endure seemingly endless waiting in unsuitable housing. 

“I am imploring the Scottish Government to ensure fair funding for local authorities so that they can invest what is needed in our social housing sector and I will continue to make it a priority to campaign for this in 2024.”