Scotland’s changing …

2.5 million Scottish households to receive leaflet explaining devolution changes

A leaflet explaining the changes to devolution as the UK Government prepares to transfer powers to Holyrood will begin arriving through letterboxes in Scotland this week.

The 8-page Scotland’s Changing leaflet (see below) will explain the new powers as well as the benefits people in Scotland retain as part of the UK, including the pound, pensions and passports.

It will be sent to every one of the 2.5 million households across the country.

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The leaflet clearly explains which powers will be devolved and reserved following the Smith Commission and the earlier Scotland Act 2012. Powers going to the Scottish Parliament include income tax, some elements of welfare and choices over new taxes such as Airport Passenger Duty and Stamp Duty.

The Smith Commission recommended action to raise public awareness of devolution and this is part of the UK Government’s response to that challenge.

Scottish Secretary Alistair Carmichael said:

“Scotland is changing for the better, with new powers coming to the Scottish Parliament.

These powers will have an impact on every person living in Scotland and it is important that we all know what they are and what they mean for us.

From Monday, households across Scotland will receive a leaflet, direct to their door – and that leaflet will spell out the facts.

The Scottish Parliament will soon be given power over the rates of income tax, welfare provision with a starting budget of more than £2.5 billion, and the ability to give the vote to 16 and 17 year olds in Holyrood and local government elections.

Alongside borrowing powers, and continued control over health, education, housing, public transport and so much more, the Scottish Parliament is set to become one of the most powerful devolved parliaments not just in Europe, but in the entire world.

At the same time, Scotland will keep the many benefits which come as part of the UK. We’ll keep our UK pound, our UK passport and our UK pensions. We’ll also continue to benefit from a single jobs market, a single defence system and a single, strong and fast-growing UK economy.

This is good news for Scotland. A united future, built to last.”

Scotland_s_Changing_info_leaflet

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Agreement to fast-track Holyrood votes for 16 & 17 year olds

Votes for 16 & 17 year olds: ‘I believe the case has become undeniable’ – Scottish Secretary Alistair Carmichael

The legislative power to allow 16 and 17 year olds to vote in future Scottish Parliament elections should be transferred from the UK Parliament to Holyrood in March, Scottish Secretary Alistair Carmichael announced yesterday.

Mr Carmichael made the announcement during a visit to Edinburgh College, where he met 16 and 17 year old students and discussed the importance of having the right to vote.

The timetable for the Section 30 Order – which will devolve the power from the UK Parliament to Holyrood in March – has been agreed by both the UK and Scottish Government. It will be brought before both Houses of the UK Parliament and the Scottish Parliament today and then put forward for Privy Council approval in March.

This is the first stage in implementing the Smith Commission’s cross party agreement on devolution which will bring more powers and more financial responsibility to the Scottish Parliament.

Delivery of the Section 30 Order was brought forward as an exception from the rest of the Smith package so the power could be devolved in time for 16 and 17 year olds to vote in the 2016 Scottish Parliament elections – although they will not have a vote in May’s general election.

The Scottish Secretary also confirmed that the UK Government would publish draft legislation on the Smith Agreement later this week – ahead of the Burns Day deadline announced prior to the independence referendum.

During his college visit Mr Carmichael met with a group of BTEC first-year Art & Design students, who had already been discussing the issue as part of their communications class, as well as other 16-17 year students, to learn their views about lowering the voting age. He also met with representatives from Edinburgh College Students’ Association, as well as college Board vice chair Ian Young and deputy principal Craig Wilson.

Mr Carmichael said: “I’m delighted to confirm a timetable has been agreed for 16 and 17 year olds to vote in future Scottish Parliament elections. I’ve always been a firm believer in votes at 16, with the sheer number of young people participating and voting in last year’s referendum I believe the case has become undeniable.

“Today marks the next phase in our commitment to people in Scotland and the start of an landmark week for the future of our country. Later this week we will publish draft legislation ahead of Burns Night meeting our promise to bring new powers built to last for the Scottish Parliament.”

First Minister Nicola Sturgeon has confirmed that agreement has been reached with the UK Government on the terms of the transfer of powers to allow the Scottish Parliament to give 16 and 17 year olds the right to vote in Scottish Parliament elections.

Once the Order has been passed, the Scottish Government will bring forward legislation to the Scottish Parliament which, subject to parliamentary agreement, will allow registration officers to complete their work to ensure 16 and 17 year olds are able to vote in the May 2016 Scottish election.

The deal comes after the First Minister met with Prime Minister David Cameron in London last month, where she stressed the need for swift action to transfer the powers. The First Minister and Secretary of State for Scotland Alistair Carmichael have now confirmed that the necessary powers will be transferred by March.

Welcoming the move, the First Minister said yesterday: “It has long been this Government’s policy to reduce the voting age to 16. The Scottish Government’s decision to extend the vote to 16 and 17 year olds in the referendum legislation is widely seen as an outstanding success and contributed to the unprecedented level of democratic engagement we witnessed.

“I am delighted that there is now cross-party support in the Scottish Parliament for extending the franchise to include 16 and 17 year olds for Scottish Parliament and local government elections. I stressed the need for rapid action on this front when I met David Cameron in London before Christmas – and I am delighted we now have a deal. We now intend to bring forward legislation to the Scottish Parliament as soon as possible after the Order is in force to lower the voting age to 16 for these elections. This will allow 16 and 17 year olds to vote in the 2016 elections to the Scottish Parliament.

“This deal, which is being delivered to a tight timetable, shows just what is possible when there is political will on both sides – and underlines the need for swift action on other elements of the Smith Commission proposals.”

Last week a Scottish Parliament committee survey reported that an overwhelming majority of 16 and 17-year-olds who were eligible to vote in last year’s historic referendum did so, with four out of five saying they want a vote in all future elections.

More than 1200 of the eligible first-time voters responded to the online survey run by the Devolution (Further Powers) Committee with more than one in three saying they had campaigned for either side and two in five saying they had attended a campaign event.

Welcoming the findings, Devolution (Further Powers) Committee Convener Bruce Crawford MSP said: “We saw an unprecedented level of interest and democratic engagement around the referendum and the results of this survey provide further evidence of the energy and enthusiasm generated.

“It is quite clear that 16 and 17 year olds welcomed the opportunity to have their say on their country’s constitutional future and now want a say in the elections that shape their lives and communities – it is now for politicians to respond positively to that democratic momentum.”

Survey findings include:

Over 84 per cent of respondees agreed with the decision to give 16 and 17 year olds the vote in the Referendum
Three-quarters of respondees felt “well informed” or “quite well informed” about the major issues;
Nearly 36 per cent of respondees campaigned for either side while one in four joined a political party;
Four-fifths believe they should be able to vote in other elections;
Nearly two-thirds accessed online or social media material from the official campaigns while broadcast media was the most popular source for information.

Mr Crawford said: “I am delighted that the UK Government has agreed to transfer responsibility for running elections in Scotland to the Scottish Parliament, paving the way for votes in future Scottish, UK and local elections.

“We will use the findings of this survey to ensure that future generations of voters are as well-equipped as possible to make decisions on the issues that affect them.”

Sowing the seeds: Edinburgh research to aid Africa

A University of Edinburgh research group will receive £10.8 million from the UK’s Department for International Development (DFID) to help make the latest agricultural technology available across ten African countries, Scottish Secretary Alistair Carmichael announced yesterday.

Research Into Results (RIR), a wholly-owned subsidiary of the University of Edinburgh, will make the latest agricultural research and innovation available to budding small businesses in ten countries in East and Southern African. RIR will then mentor these businesses to help them grow and find private investment.

RIR has already worked on research that has delivered pest-free crops, improved crop storage systems and a mobile phone app which tells farmers the best time to plant their crops.

The Social Enterprises for Economic Development (SEED) programme is designed to turn this kind of promising research into commercially-viable technology. It has the potential to make over half a million farmers become more efficient, helping them feed their families and work their way out of poverty.

During a visit to the University of Edinburgh, Mr Carmichael said: “Everyone associated with the Research Into Results initiative should be very proud of the excellent work this project builds on.

“This substantial support from DFID together with the skills and networks of the University of Edinburgh and H20 venture partners will go a long way to improve the efficiency of small-holder farmers in Africa, provide them with technology and most importantly transform the lives of many people living in some of the poorest countries in the world.”

Dr Andy Frost, Director of Research Into Results, said: “The SEED Programme will develop technology-driven social enterprises whose products and services increase the profitability of smallholder farmers.

There is a substantial unmet need for the ambitious social enterprises in the Africa. Institutions, NGOs and local entrepreneurs lack the skills and experience to build large-scale investible businesses; on the other side, venture capital in the region lacks quality investment deal flow.

SEED is an ambitious programme, it aims to be a game-changer, to create viable social enterprises for the benefit of smallholder farmers and by so doing provide robust evidence on the effectiveness of social enterprises as a vehicle to get past research investment into use, at scale.”

DFID will provide RIR’s Social Enterprises for Economic Development (SEED) programme with £10.8 million over 6 years.

Carmichael welcomes positive economic report

A report highlighting positive signs for Scotland’s economy has been welcomed by Scottish Secretary Alistair Carmichael.

The Bank of Scotland’s latest Purchasing Managers Index (PMI) survey says business activity rose at the fastest rate in six months in July, supporting continued employment growth. It also reports a ‘robust increase’ in overall new business and adds that Scotland’s private sector output increased at a “sharp and accelerated rate”.

The bank’s Purchasing Managers Index (PMI) – a measure of the month-on-month change in combined manufacturing and services business activity – was at a six-month high of 56.8, up for the second straight month from 55.9 in June and 54.0 in May.

Commenting on the latest economic report, Mr Carmichael said: “Today’s PMI report shows that being part of the UK with its larger market, stronger and growing economy and stable currency is creating more jobs and better opportunities for Scotland.

“As we move into the second half of 2014, this report shows that Scottish employment has grown for the 20th straight month. This builds on the encouraging economic signs so far this year, such as reaching a record high in employment, more Scottish women in work than ever before and the UK’s economy being predicted to grow faster than any other G7 economy.

“It is also very encouraging to see a rise in the number of new Scottish businesses. Backing small businesses is a vital part of the government’s long term economic plan. Since 2010, 3,300 entrepreneurial Scots have moved from Jobseekers Allowance to becoming their own boss and since its introduction in April this year, 57,000 Scottish businesses have already taken advantage of our employment allowance.”

Carmichael welcomes income tax changes to help ‘hard working Scots’

Scottish Secretary Alistair Carmichael has welcomed changes to income tax that will see thousands of Scots workers taking more of their pay home. Mr Carmichael said Scotland is benefiting from being part of the ‘fastest growing economy on the world’.

From this weekend, 242,000 people in Scotland will be taken out of income tax altogether thanks to UK Government policy which sees the tax free personal allowance increase to £10,000 in 2014-15 – and that means that from overnight on Sunday an extra 19,000 Scots will no longer pay any income tax.

Scottish Secretary Alistair Carmichael said: “I am extremely proud to be part of a Government that has ensured that every hard working Scot will not pay any income tax on everything they earn up to £10,000. This is a key measure in our long term economic plan and one which every single Scot will be able to see and benefit from in their pay packet this month.

“Scotland is doing well because it’s part of the UK. We are benefiting from one of the fastest growing economies in the world which is creating jobs and ensuring certainty and security for families and individuals across the country.”

Over one million women in Scotland will directly benefit from this increase which comes as Scottish female employment levels reach near record highs.

This year’s Budget also confirmed that the personal allowance will increase again to £10,500 from next year helping even more Scottish families.

Across the UK, Government measures are cutting tax for over 26 million people. This includes taking over three million out of paying any income tax at all – 200,000 of these from this week.

The Sunday 6 April changes also mean that:

Someone working full-time on the October 2014 minimum wage (£6.50/h at 35hrs a week) will pay over 50 per cent less income tax in 2014-15 than a than someone on the national minimum wage in 2010.
Someone working for just under 30 hours a week on the October 2014 minimum wage will not pay any income tax at all.

1 April was ‘devolution landmark’

1 April marked a major milestone in the continuing road of Scottish devolution, Scottish Secretary Alistair Carmichael said yesterday. He said that as part of the United Kingdom, Scotland has ‘the best of both worlds’

Major financial changes introduced as part the Scotland Act 2012 will begin to take effect on 1 April next year, increasing the accountability of the Scottish Parliament to the voters who elected it for raising revenue, and making decisions about how it is spent. These changes will mean that the Scottish Parliament will be responsible for funding around a third of devolved spending – roughly double the amount it currently funds.

Mr Carmichael said: “The Scotland Act provides the largest transfer of financial powers to Scotland in over 300 years. The Act received the unanimous support of both the UK and Scottish Parliament building on and strengthening the great success that is devolution.

“The Scotland Act devolves significant tax powers including the ability to set a new Scottish rate of income tax and gives the Scottish Government access to substantial borrowing powers. New powers bring new accountability and new responsibilities. To the people of our country, Holyrood will be more responsible and more accountable than ever before for the money it raises and for the money it spends.

“Today marks a major milestone in the continuing road of devolution. As part of the United Kingdom, Scotland has got the best of both worlds: a strong Scottish Parliament with financial powers that can take decisions on those things that affect our everyday lives, like our schools and hospitals and we can pool our resources ensuring we benefit from a strong UK economy that is growing and creating jobs.”

The powers which come into effect on April 2015 are:

The full devolution of stamp duty land tax and landfil tax from April 2015. The Scottish Government has taken forward legislation to replace these taxes in Scotland with the Land and Buildings Transaction Tax and Scottish Landfill Tax. It is also taking forward legislation to establish Revenue Scotland as the tax administration responsible for the collection of the new taxes.
Extended current borrowing powers of up to £500m and creation of a new Scottish cash reserve to help manage the new tax receipts.
A new £2.2bn capital borrowing power for the Scottish Parliament, with a limited version of the power in place from April 2013 to enable the Scottish Government to fund £100m of pre-payments for the Forth Road Crossing.

The powers which come into effect from April 2016 are:

A new Scottish rate of income tax. The basic, higher and additional rates of UK income tax will be reduced by 10 pence in the pound for Scottish taxpayers. The Scottish Parliament will set a new Scottish rate – with no upper or lower limit – which will apply equally to all of the reduced main UK income tax rates.
For example, a UK basic rate at 20 pence would be reduced down to 10 pence, and a Scottish rate of 9 pence would see Scottish taxpayers instead paying 19 pence per pound at basic rate.
The block grant to Scotland will be reduced by an amount corresponding to the 10 pence in the pound reduction on the UK rate of basic, higher and additional tax. This will mean that a Scottish rate of 9 pence would see a reduction in income for the Scottish Government, while a rate of 11 pence would see an increase as compared with current arrangements.
The Act also introduced a power to create new devolved taxes, by a process of agreement between the two governments. This power has been in force since May 2012. The Scottish Government has not yet made any proposals to create new devolved taxes using this power.

Carmichael welcomes latest employment figures

The latest employment figures show that Scotland is doing well as part of the UK, Scottish Secretary Alistair Carmichael said today.

Unemployment in Scotland fell by 7,000, to 196,000 in the period August to October 2013, according to Office for National Statistics (ONS) data released today.

The Scottish unemployment rate is 7.1 per cent, which is below the average of 7.4 per cent for the whole of the UK.

The labour market statistics also show employment in Scotland has increased by 11,000 over the three months August to October 2013. The number of those in employment in Scotland now stands at 2,546,000.

Scottish Secretary Alistair Carmichael said: “Every new job created in Scotland represents someone getting back into work and is to be welcomed. Today’s figures reinforce how well Scotland is doing as part of the UK and they are good news for people and families across the country. There are 83,000 more people in employment in Scotland than there were a year ago.

“Unemployment has fallen and employment increased over the three months to October. We have also seen a further significant fall of 2,900 in people claiming Jobseekers Allowance in November. As a result there are 23,300 fewer Scots claiming JSA compared to one year ago.

“This comes on the back of recent positive news and the continuing recovery of our economy. We will keep up all our efforts to create the right conditions for the private sector to create sustainable, long-term jobs.”