Legislation which will enhance Scotland’s democratic processes has been backed unanimously by the Scottish Parliament.
The Scottish Elections (Representation and Reform) Bill has passed its final stage, maintaining and improving Scotland’s robust electoral system.
The Bill contains a mix of technical and other improvements such as improving candidate and campaigner safety and advancing candidacy rights.
The new law introduces a ban on people from being MSPs if they are convicted of a sexual offence or subject to a sexual offence order.
In addition, MSPs will be barred from also being an MP or Peer through regulations to be brought forward in 2025 so they can be in place in time for the 2026 Scottish elections. The details of the regulations will be informed through a consultation beginning next month.
Parliamentary Business Minister Jamie Hepburn said: “Since 1999 the Scottish Parliament has improved participation, extended voting rights, and enabled more people to stand for election and this legislation seeks to continue the evolution of our democracy.
“It will modernise Scottish elections and take important steps to safeguard our democracy for voters, candidates and administrators.
“Through positive cross-party working, we have agreed a robust set of improvements to the law, which will deliver real benefits to voters and prospective candidates.”
Prime Minister’s Plan for Change at heart of Spending Review, which will drive reform and root out waste.
Every pound of government spending to be interrogated to ensure it represents value for money for working people.
External experts will scrutinise budgets, bringing ideas, expertise and innovation of the private sector into the heart of government.
Government departments will be expected to find savings and efficiencies in their budgets, in a push to drive out waste in the public sector and ensure all funding is focused on the government’s priorities.
Every single pound the government spends will be subjected to a line-by-line review to make sure it’s being spent to deliver the Plan for Change and that it is value for money, as the Chancellor Rachel Reeves yesterday (Tuesday 10 December) launched the next round of government spending.
It will be the first time in over a decade and a half that government departments have been asked to take such an approach, with what’s called a “zero-based review” last undertaken 17 years ago.
Rachel Reeves will today begin her work with government departments and reiterate that they cannot operate in a business-as-usual way when reviewing their budgets for the coming years, as the new government continues to fix the foundations after inheriting a £22bn black hole, alongside crumbling public services and damaged public finances.
Secretaries of State across government will need to allocate their budgets to ensure that government spending is focused on the Prime Minister’s Plan for Change, and that every pound of taxpayers’ money is spent well. The Chancellor will work with departments to prioritise spending that supports the milestones to deliver the Plan.
This includes boosting growth to put more money in working people’s pockets, fixing the NHS, creating safer streets, making Britain a clean energy super-power and giving every child the best start in life while strengthening our borders, national security and the economy.
Chancellor of the Exchequer Rachel Reeves said: “By totally rewiring how the government spends money we will be able to deliver our Plan for Change and focus on what matters for working people. The previous government allowed millions of pounds of taxpayers’ money to go to waste on poor value for money projects. We will not tolerate it; I said I would have an iron grip on the public finances and that means taking an iron fist against waste.
“By reforming our public services, we will ensure they are up to scratch for modern day demands, saving money and delivering better services for people across the country. That’s why we will inspect every pound of government spend, so that it goes to the right places and we put an end to all waste.”
The Prime Minister has been clear that public services must reform if they are to be put on a sustainable footing in the long-term, so that outcomes can be improved for people who depend on services every day.
Yesterday’s announcement builds on the Chancellor of the Duchy of Lancaster yesterday launching a £100 million fund to pioneer public service reform and deliver the Government’s Plan for Change, by deploying new test-and-learn teams into public services across the country.
They will be empowered to experiment and innovate to fix the public sector’s biggest challenges, working towards the Government’s ambitious and far-reaching reform programme that will seek to break down Whitehall silos and galvanise government as it seeks to deliver the Plan for Change.
Departments will ensure budgets are scrutinised by challenge panels of external experts including former senior management of Lloyd’s Banking Group, Barclays Bank and the Co-operative Group. Panels will bring an independent view to what government spend is or isn’t necessary, with a mixture of expertise from local delivery partners, think tanks, academic experts and private sector backgrounds.
In letters sent by the Chief Secretary to the Treasury, departments will be advised that where spending is not contributing to a priority, it should be stopped. Although some of these decisions will be difficult, the Chancellor is clear that the public must have trust in the government that it is rooting out waste and that their taxes are being spent on their priorities.
Work has already begun on evaluating poor value for money spend, with an evaluation into the £6.5m spent on Social Workers in Schools programme, which placed social workers in schools, finding no evidence of positive impact on social care outcomes, meaning the intervention was not considered cost-effective.
The Government has made clear it will not shy away from taking the difficult decisions needed to fix the foundations, as shown by the Chancellor’s decisions at the Budget to balance the books.
Departments will be expected to work closely together to identify how their work contributes to the Government’s missions, meeting in mission clusters throughout the process to agree priorities and links.
Throughout this process, the ideas, expertise and innovation of the private sector will be sought out and brought right into the heart of government.
An online portal will also be launched to give businesses the opportunity to put forward policy proposals for the Spending Review, including on how government can deliver public services more efficiently or effectively. These representations will be collated and shared with departments for consideration in their submissions.
THINK TANK AND FORMER COUNCIL CHIEF EXECUTIVES JOIN FORCES
Reform Scotland and the Mercat Group collaborate on ideas for local decentralisation
Former local authority chiefs ask: “Has Holyrood become Scotland’s biggest Council?”
Reform Scotland, the non-partisan think tank, and The Mercat Group, an informal network of former chief executives of Scottish local authorities with over 220 years of public service between them, including 70 years as chief executives, are today announcing a collaboration.
Jointly, Reform Scotland and The Mercat Group will advocate for decentralisation of power from the Scottish Parliament to local authorities, along the lines originally envisaged by the architects of the devolution project.
The collaboration begins today with an article – Parliament or Council?: 25 years of evidence– written on behalf of the Mercat Group by Bill Howat, former Chief Executive of Comhairle Nan Eilean Siar, in which he states that “any reasonable, rational review of that evidence could only conclude that it has not been a success in terms of devolving power beyond Edinburgh”.
Bill Howat, former Chief Executive of Comhairle Nan Eilean Siar said:“Any reasonable, rational review of that evidence could only conclude that it has not been a success in terms of devolving power beyond Edinburgh. In fact, all the evidence points to growing centralisation of power in Holyrood. That is not good for local democracy, nor does it seem like good governance.
“There is now a need to revisit and reset the way all public services in Scotland are organised, delivered and financed. We should create a Scottish Civic Convention to take forward the public conversation necessary to conduct such a review.
“There may be other options but the central aim should be to develop a transition plan to ensure decisions on the delivery of all public services are taken at the lowest local level consistent with democratic and financial accountability.
“Scottish local government is in danger of becoming the delivery arm of the Scottish Government; indeed some would argue we have already reached that position. We might fairly ask: has Holyrood become Scotland’s biggest council?”
Chris Deerin, Director of Reform Scotland, said:“At a quarter-century old, now is the time to re-examine those areas of devolution which have not delivered as we all hoped they would. Local government is one of these.
“Other countries enjoy the benefits of properly empowered local government, fulfilling most of the day-to-day operational roles upon which people depend, with central government adopting a more strategic outlook.
“In Scotland, we are failing to realise the potential of local freedom and diversity. Decentralisation is long overdue, and we are delighted to be teaming up with the Mercat Group to generate the ideas needed to make it happen.”
Bill Howat’s blog – Parliament or Council?: 25 years of evidence – can be read here
Later this week the Prime Minister will set out ambitious milestones for change that will deliver ‘real, tangible improvement to the lives of working people across the country’
PM to galvanise action across government and beyond with radical next phase of Mission delivery
Measurable milestones will be set out in new Plan for Change, that will put working people’s priorities first
Relentless prioritisation will ensure that the government delivers for working people this Parliament
The Prime Minister will set out ambitious milestones for change that will deliver real, tangible improvement to the lives of working people across the country in this Parliament, later this week.
The Plan for Change will mark the next phase of Mission-led government, as the PM continues to take an unrelenting approach to delivering on the priorities of working people.
The Missions – growing the economy, an NHS fit for the future, safer streets, secure power through clean energy and opportunity for all – are part of a decade of national renewal, built on the foundations of a stable economy, national security and secure borders.
The government has already made significant progress on its Missions since July; fixing the foundations of the country and kicking off the first steps to deliver real change. This has included stabilising the economy, establishing a new Border Security Command that will smash the gangs and tackle small boat crossings, and investing an extra £22bn building an NHS fit for the future including an extra 40,000 appointments.
This action has all taken place having inherited the unprecedented twin challenges of crumbling public services and crippled public finances. The government has had to make difficult decisions, including reforming agricultural property relief and targeting the winter fuel allowance.
Having taken action to fix the foundations and kick off the First Steps, the Plan for Change will set out ambitious but achievable milestones on the Missions that will be reached by the end of the Parliament, driving real improvements in the lives of working people.
Achieving them will demand that the attention and resources of government are relentlessly focused on making sure the Missions are delivering on what matters most to working people in every corner of the UK.
The milestones are part of the Prime Minister’s drive to do government radically differently, and will reflect the priorities of working people, allowing them to hold government to account on its progress.
Work to deliver them will be underpinned by innovation and reform, alongside close working with partners across business, civil society, and local government.
Prime Minister Keir Starmer said: “This Plan for Change is the most ambitious yet honest programme for government in a generation.
“Mission-led government does not mean picking milestones because they are easy or will happen anyway. It means relentlessly driving real improvements in the lives of working people.
“We are already fixing the foundations and have kicked-started our first steps for change, stabilising the economy, setting up a new Border Security Command, and investing £22bn in an NHS that is fit for the future.
“Our Plan for Change is the next phase of delivering this government’s mission. Some may oppose what we are doing and no doubt there will be obstacles along the way, but this government was elected on mandate of change and our plan reflects the priorities of working people.
“Given the unprecedented challenges we have inherited we will not achieved this by simply doing more of the same which is why investment comes alongside a programme of innovation and reform.”
The relentless prioritisation will be at the heart of the choices made in the next Spending Review – which will look at every pound the government spends, line by line, taking a zero-based approach to how departments are funded.
The milestones will be underpinned by an ‘ambitious programme of public sector reform’, building on the reform work already started on planning, national infrastructure, pensions, industrial strategy, and the labour market.
As part of this work, the Prime Minister will also charge the new Cabinet Secretary and all Cabinet Ministers to reform Whitehall so that it is geared to Mission delivery rather than working in the traditional silos that focus on fiefdoms not outcomes.
Public services will come under further threat if the Scottish Government does not set out and deliver a clear and costed vision for public service reform, says Scotland’s spendingwatchdog Audit Scotland.
Spending pressures have become more acute in recent years and are forecast to grow. But ministers have continued to rely on short-term decisions to balance the books, rather than making fundamental changes to how services are delivered.
Public service reform is a key component of the Scottish Government’s approach to fiscal sustainability. But there is no evidence of large-scale change on the ground, while the Scottish Government:
has not yet fully established effective governance arrangements for a reform programme
does not know what additional funding is required to support reform
and has not provided enough leadership to help public sector bodies deliver change.
The Scottish Government has not been transparent enough with the Scottish Parliament or the public about the medium-term risks it is facing.
The medium-term financial strategy and financial plans for the NHS and infrastructure investment have all been delayed. The absence of these documents makes scrutiny of the current uncertain financial situation more difficult.
Stephen Boyle, Auditor General for Scotland, said: ““People do not fully understand the medium-term risks public services are facing because of a lack of transparency from the Scottish Government.
“The reality is that we need a fundamental change to how public money is spent to ensure services can meet demand and remain affordable beyond the short-term.
“To turn that into action on the ground, the Scottish Government must set out a clearer vision of what its plans for reform will achieve, including delivery milestones and the likely impact of reform on services and people.”
The UK Government will today embark on major reform to end years of neglect of the children’s social care support system – breaking the cycle of late intervention and helping keep families together wherever possible so every child has the opportunity to thrive.
A wide range of new reform measures will be set out in Parliament to deliver better outcomes and a more secure life for children across the country. The government will empower social workers, and all those that work with children, to take action against children’s placements providers that deliver subpar standards of care at sky-high costs to councils and focus the system on early intervention.
It comes as local government spending on looked after children has ballooned from £3.1 billion in 2009/10 to £7 billion in 2022/23, with social workers all too often burdened by heavy caseloads, struggling to deliver the help that children and families need before problems escalate.
Bridget Phillipson, Education Secretary, said: “Our care system has suffered from years of drift and neglect. It’s bankrupting councils, letting families down, and above all, leaving too many children feeling forgotten, powerless and invisible.
“We want to break down the barriers to opportunity and end the cycle of crisis through ambitious reforms to give vulnerable children the best life chances – because none of us thrive until all of us do.
“We will crack down on care providers making excessive profit, tackle unregistered and unsafe provision and ensure earlier intervention to keep families together and help children to thrive.”
One of the most entrenched challenges facing children and social workers is some private providers, that are siphoning off money that should be going towards vulnerable children, making excessive profits or running unregistered homes that don’t meet the right standards of care.
According to analysis by the Local Government Association, there are now over 1,500 children in placements each costing the equivalent of over £0.5 million every year, while the largest 15 private providers make an average of 23 per cent profit.
New rules will require key placements providers – those that provide homes for the most children – to share their finances with the government, allowing profiteering to be challenged. Increasing financial transparency will ensure the providers that have the biggest impact on the market don’t unexpectedly go under and leave children without a home.
There will also be a “backstop” law to put a limit on the profit providers can make, that the government will introduce if providers do not voluntarily put an end to profiteering.
Not-for-profit providers and those backed by social investment are being called on to come forward to set up homes to strengthen the system.
To protect quality and safety in children’s homes, Ofsted will also be given new powers to issue civil fines to providers, working more quickly to deter unscrupulous behaviour than with existing criminal powers.
More widely, the government is beginning the process of rebalancing the whole children’s social care system in favour of early intervention, giving every family the legal right to be involved in decisions made about children entering the care system.
Further plans for funding for children’s social care including investment in preventative services, are set to be laid out in the coming weeks in the upcoming Local Government Finance Settlement.
Cllr Arooj Shah, Chair of the Local Government Association’s Children and Young People Board, said: “It is positive to see the Government building on recent progress following the Independent Review of Children’s Social Care, and pursuing an approach rooted in what we know works for children and their families.
“We are particularly pleased to see an ongoing focus on early help and family networks, and a strong commitment to tackling profiteering and other problems in the market for children’s social care placements.
“Moving forward, progress will be limited by the significant funding and workforce challenges within children’s social care, councils and amongst partners more widely.
“It is vital that the Government uses the forthcoming Spending Review to ensure that all those working to keep children safe and to help them thrive have the resources they need to do that well.”
Children’s Commissioner Dame Rachel de Souza said: “Every child deserves to grow up safe, happy, healthy and engaged in their communities and in their education. With this Bill we have an opportunity to repair how we treat childhood in this country.
“Children are paying the price of a broken social care system that allows profits over protection. They are enduring things no child should ever have to: living in isolation in illegal children’s homes, often at enormous cost, deprived of their liberty without due process, often surrounded by security guards instead of receiving love and care.
“Children in the social care system today are living week to week in limbo. They need action without delay, not plans or strategies, so I welcome the urgency with which this government is setting out plans to tackle some of the most entrenched challenges. There must be no limits on our ambition for these children and I will look forward to working closely with ministers to push for radical reform.”
Sir Martyn Oliver, Ofsted’s Chief Inspector said: “These new powers will allow Ofsted to do more to make sure all children’s homes are safe and nurturing places, and to combat illegal and poor-quality homes quickly and effectively.
“We welcome these reforms and stand ready to deliver the Government’s new asks as soon as possible.”
Sarah Cardell, CEO of the CMA, said: “We are pleased to see the government taking this next step towards reforming the children’s social care market, in line with our recommendations.
“Our market study found multiple concerns – including a shortage of appropriate places – which need to be tackled to ensure vulnerable children and young people are getting the homes they need. We will continue to work with the government to make sure the plan delivers longstanding improvements.”
Other key measures set to be announced today include:
New powers for Ofsted to investigate multiple homes being run by the same company, acting on the recommendations made in response to the vile abuse uncovered at the Hesley group of children’s homes.
Delivery of the manifesto commitment to introduce a consistent child identifier, making sure information can be shared between professionals so they can intervene before issues escalate.
The requirement for every council to have ‘multi-agency’ child safeguarding teams, involving children’s schools and teachers, stopping children from falling through the cracks.
The requirement for all local authorities to offer the Staying Close programme – a package of support which enables care leavers to find and keep accommodation, alongside access to practical and emotional help, up to the age of 21, ending the cliff-edge of support many experience at 18.
A new duty on parents where if their child is subject to a child protection enquiry, or on a child protection plan, they will need local authority consent to home educate that child.
The government will continue to work closely with the sector and local authorities as these changes are introduced to ensure the best possible outcomes for all children and young people, and their families.
A Holyrood Committee has concluded that reform to the way Scotland manages and delivers benefits related to industrial injuries and ill health at work is needed, but, has agreed by majority that the Scottish Employment Injuries Advisory Council Bill will not deliver this.
The Bill, introduced by Mark Griffin MSP, proposes that a Scottish Employment Injuries Advisory Council be established to provide expertise about support for people living with a workplace injury or disease.
Industrial Injuries Disablement Benefit is currently delivered by the UK Government’s Department for Work and Pensions on behalf of the Scottish Government. The delivery of this benefit is expected to become the responsibility of the Scottish Government in March 2026.
Witnesses characterised the current Industrial Injuries Scheme as failing to deliver for women and people from ethnic minority backgrounds. They also said that the current system is slow to effect change and does not consider modern occupations and diseases. The Committee understood and agreed with these concerns.
However, the Cabinet Secretary, Shirley-Anne Somerville, told the Committee that, even if the Bill was given Parliamentary approval, the Scottish Government would not be able to act on any recommendations the Council made regarding the benefit as it is constrained by its current agreement with the Department for Work and Pensions.
Furthermore, the Committee’s report raises concerns that the creation of a new, statutory body (which would work alongside other public bodies, like the Scottish Commission on Social Security), would add to an already cluttered public body landscape, making the social security system more complex to administrate.
The Committee did, however, share the frustration of witnesses and Mr Griffin regarding delays to the promised Scottish Government consultation on its approach to replacing the Industrial Injuries Scheme in Scotland.
The Committee urges the Scottish Government to provide detailed timings for this consultation.
Collette Stevenson MSP, Convener of the Social Justice and Social Security Committee, said:“The current Industrial Injuries Scheme, at over 70 years old, is inadequate. It fails to take account of modern work practices and diseases and does not deliver for women or people from ethnic minority backgrounds.
“However, a majority of the Committee believe that this Bill would not provide the reform that stakeholders want to see and recommend that it should not be agreed to.
“Instead, we call on the Scottish Government to urgently provide detailed timings for the consultation on its approach to replacing the Industrial Injuries Scheme in Scotland, so that workers who are injured, or suffer from ill health, because of their employment, can access the compensation they deserve.”
On Wednesday, the Scottish Government and COSLA released their anticipated (and widely leaked) consultation on Council Tax changes(writes Fraser of Allander Institute’s EMMA CONGREVE).
The proposals set out would see a repeat of the 2017 increases in band multipliers for properties in Band E – H with the consultation seeking views on whether the changes to the mulitpliers should be higher or lower, or not happen at all. .
Table 1 shows the proposed changes in the context of the original multipliers set out in 1993 and the reforms in 2017. The proposed changes would lead to an increase in the amounts paid of £139, £288, £485 and £781 per household (or dwelling in official council tax speak) for those in Band E, F, G & H respectively.
Table 1 – Council Tax Multipliers
Council Tax Band
Original multipliers
2017 reforms
New proposals
A
0.67
0.67
0.67
B
0.78
0.78
0.78
C
0.89
0.89
0.89
D
1.00
1.00
1.00
E
1.22
1.31 (+7.5%)
1.39 (+7.5%)
F
1.44
1.63 (+12.5%)
1.75 (+12.5%)
G
1.67
1.96 (+17.5%)
2.13 (+17.5%)
H
2.00
2.45 (+22.5%)
2.68 (+22.5%)
The consultation documents note a number of valid points, but fails to mention others that are fairly fundamental to the operation of the Council Tax. Here we cover some of the main issues.
A fundamentally flawed tax
Council Tax is a regressive tax. By regressive, this means that the average tax rate (the % of the tax base paid in tax) falls as the value of the tax base rises. For Council Tax, the tax rate depends on the property you live in, meaning the relevant tax base is property value (as of 1991 – an issue we’ll return to later). The highest valued properties pay a lower % of that value in their Council Tax bill.
The consultation document restates research that was completed as part of the 2015 Commission on Local Tax Reform that found that, in order for Council Tax in its current banded form to be progressive, the Band H rate would need to be in the order of 15x the Band A rate. Given this was based on 2013-14 property values, this figure may have since increased even further.
It is a shame that the government has not revisited the 2015 analysis to provide up-to-date figures. This is not an easy task (this author was involved in it the first time round!) but the data exists to repeat much of the Commission’s analysis. Updated figures would provide a better evidence base for judging their proposals.
However, updated figures would not change the overall position: the proposed changes would place Band H at 4x the Band A rate, far below values that would be required to become anything approaching progressive. The consultation document does not shy away from admitting this, stating that the proposals will not address ‘the fundamental regressivity of Council Tax’.
How do the proposed reforms link to ability to pay?
Although Council Tax is tied to property, it is income or savings that are required to pay the bill each year. As well as being regressive with respect to property, council tax is also regressive with respect to income. That is, as your income rises, the % of your income that you pay in the tax reduces.
There are some protections in the system to ensue those on the very lowest incomes do not pay some or any of their bill. The 2017 reforms also came with a condition that anyone who had income below the national average (median) would not pay any additional amounts if they were in Bands E – H. However, the regressivity with respect to income remains an issue that these reforms will not be able to address.
If we look at the impact of the proposals on the upper half of the income distribution (where we expect most people to be outwith any form of CTR protection), the average impact on Council Tax bills range from around an additional £200 – £320 a year.
In the context of some of the recent figures on increases on increases in mortgage increases, these figures look relatively sedate (although it may feel far from that, especially for those affected by mortgage increases too).
In addition, these numbers do not include any other form of discounts or exemptions which may reduce the additional amounts, such as the single person discount. Table 2 shows that, as a proportion of household income (and with the same caveats re not accounting for other discounts) this is between 0.7% and 0.5% (i.e. a half of 1%).
Table 2 also shows that although those higher up the income distribution will pay more, the proportion of income paid decreases as income rises: that is the proposed reforms will be regressive with respect to income. Those in the top 10% of income are likely to pay a lower proportion of their income in additional tax than those in the next income decile down.
Table 2 – Additional charges faced by the top half of the income distribution
Income decile group
Average additional charge
Average income (latest data)
Average additional charge as a % of household income
6
£201
£27,820
0.72%
7
£201
£31,928
0.63%
8
£222
£37,544
0.59%
9
£258
£46,384
0.56%
10 (i.e. top 10%)
£317
£64,896
0.49%
i Average income data is taken from the DWP Households Below Average Income dataset for 2021-2022. Average income in this table refers to a reference household with two adults and no children. Income is net of tax and transfers.
This is partly a result of incomes not being directly tied to value of the property you live in. Many critics of using property values as a basis for a recurring tax cite this issue, particularly for pensioners who may have lived in a home that has accrued in value over many years, but have a relatively low disposable income (although not low enough to qualify for Council Tax Reduction).
An additional factor relates to the fact that there are relatively few Band H properties where the highest charge applies: even in the top 10% of households less than 1% of households are in a Band H property, a similar proportion to households in the 9th income decile.
The elephant in the room: revaluation
An additional fundamental issue, absent from the consultation document, is the fact that the property values used to put properties into bands are based on 1991 values. Some properties have grown much faster in value than others since then.
That means that two properties that were in the same band in 1991 may now be worth vastly different sums of money, and if there was a revaluation today they would no longer be placed together in the same band.
The issue is further complicated by new builds where finding a comparable hypothetical 1991 value is difficult.
A quick look at any property website will provide you with all the evidence you need to illustrate the issue where property value and Council Tax Band are often quoted side by side.
For example, the market at the moment in Edinburgh:
A 2 bed ground floor flat for sale in the New Town for offers over £415,000 which is in Council Tax Band D (and therefore will not face the proposed additional charge)
A similarly sized 2 bed ground floor flat in Craigleith for offers over £210,000, which is in Council Tax Band E (which will face the proposed additional charge)
For those not familiar with Edinburgh geography, the locations are shown on the below map*.
This is not a one off. The Commission’s analysis in 2015 estimated that over half of all properties in Scotland would have changed band if revaluation had taken place in 2014.
We could speculate, at length, why revaluation has not happened. Scotland is not the only country that has struggled to find the political appetite to make it happen (the UK Government has done no better in England), but other parts of the UK have managed it in the last two decades.
What should be happening
Most people would agree that reforms to Council Tax need to go beyond tweaking multipliers. There are a number of options available, with a proportional tax on the value of a property being the majority view of the 2015 Commission, and indeed the previous Burt Commission that came up with similar proposals back in 2006.
However, any reform is contingent on the tax being levied on correct values. That means a revaluation is necessary. Indeed, it should be a prerequisite even for the type of tweaking that the Scottish Government did in 2017 and is proposing now given the majority of properties are likely to be in the wrong band.
To continue without revaluation is deeply unfair and to take forward reforms without a revaluation just rubs salt into the wounds.
*This map contains information from OpenStreetMap, which is made available here under the Open Database License (ODbL)
A new parliamentary inquiry into the Scottish Government’s public service reform programme has been announced.
Holyrood’s Finance and Public Administration Committee wants to examine the detail of the reform programme, which is focused on digitalisation, innovation, estates, public body landscape and procurement.
As part of this work, the committee will examine how public bodies are working to achieve the government’s plans to make efficiencies, while ensuring effective delivery of public services, in 2023-24 and beyond.
It will also consider the government’s ambitions to:
keep the public service pay bill costs at 2022-23 levels and
return the public sector workforce “broadly to pre-Covid-19 levels”.
“Further information on the government’s plans for reform and workforce levels were expected in the Scottish Budget 2023-24 but did not materialise due to ongoing economic turbulence.
“Our committee therefore wants to look at how public bodies are working to put in place the government’s ambitions for reform.“We also want to establish from where in the public sector reductions in headcount to pre-pandemic levels will be made, and to what timescales.
“Clarity and transparency around these issues are crucial, during what is an uncertain time for the public sector.”
A call for views from public sector bodies, academics, think tanks and other interested parties has been launched today, with a closing date of 1 May 2023.
To inform this inquiry, the committee is seeking written views from Scottish public bodies on their plans for public service reform in their sectors, and others with a view on how the reform programme is working in practice and how it is delivering effective and efficient services.
The committee is particularly keen to hear from:
all types and sizes of public sector bodies from across the public sector
others affected by the Scottish Government’s public service reform programme, and
think-tanks, academics and commentators on progress with, and outcomes from, the reform programme.
Chancellor to announce reforms to drive growth and secure the UK’s position as world leading financial services hub in Edinburgh today.
Ringfencing rules are set to be updated to release banks without major investment activities from the regime, regulators will be given a new remit to deliver growth and a widespread review will repeal hundreds of pages of EU law.
The Government will continue to deliver reforms across the economy to drive economic growth during challenging times.
Chancellor, Jeremy Hunt, will announce a package of over 30 regulatory reforms to secure the UK’s place as the world’s foremost financial centreduring a visit to Edinburgh today,
The “Edinburgh Reforms” will build on the unparalleled strength of the UK’s financial services sector, taking advantage of the opportunities provided by the UK’s exit from the European Union to tailor regulations to suit the country’s needs.
Today the Treasury will publish its plan to rigorously review, repeal and replace hundreds of pages of EU regulation ranging from disclosure for financial products to prudential rules for banks, creating a tailor-made UK regulatory framework based on international best practice that balances burden on business with protection for the consumer.
Rules that hold back growth will be reviewed, with overbearing EU rules which put companies off listing in the UK being overhauled, among dozens of regulations within scope of the Financial Services and Markets Bill.
The Government will also announce changes to ringfencing rules which currently require major banks to separate their retail and investment arms, and retail banks have to comply even if they don’t have an investment arm, a time consuming regulatory exercise.
Reforms will cut red tape and boost banking competition in response to the Skeoch review by freeing retail focused banks from ringfencing rules while maintaining protections for consumers. The UK’s world leading regulatory regime has evolved over the past decade and will continue to protect consumers and safeguard financial stability.
Chancellor of the Exchequer, Jeremy Hunt said: “This country’s financial services sector is the powerhouse of the British economy, driving innovation, growth and prosperity across the country.
“Leaving the EU gives us a golden opportunity to reshape our regulatory regime and unleash the full potential of our formidable financial services sector.
“Today we are delivering an agile, proportionate and home-grown regulatory regime which will unlock investment across our economy to deliver jobs and opportunity for the British people.”
This builds on the reforms to Solvency II announced in the Autumn Statement which will unlock over £100 billion for productive investment from UK insurers over the next decade, such as clean energy infrastructure.
The Chancellor is also expected to issue new mandates to the Financial Conduct Authority and the Prudential Regulation Authority setting out how they will help deliver growth and promote the international competitiveness of the UK.
The financial services sector is vital for Britain’s economic strength, contributing £216 billion a year to the UK economy. This includes £76 billion in tax, enough to fund the entire police force and state school system, while employing over 2.3 million people – with 1.4 million outside London and 163,000 people in Scotland.
While in Edinburgh today, the Chancellor will meet with top financial services CEOs to discuss these reforms and how the sector can further drive investment and growth in the UK.
As confirmed in the Autumn Statement, the government will look to announce changes to EU regulations in four other growth industries by the end of next year, including digital technology, life sciences, green industries and advanced manufacturing.
