Tag: Scottish Affairs Committee

Remote Scottish communities worse off due to ‘rural premium’ despite cost of living support, MPs find

The Scottish Affairs Committee warns blanket UK-wide schemes intended to support households with the rising cost of living were not sufficiently ‘rural-proofed’ and did not meet the needs of remote communities in Scotland who face a ‘rural premium’.

The ‘rural premium’ refers to the higher prices that communities in remote rural areas pay, relative to urban areas, to access the same goods and services. The report highlighted three key areas – energy, food security and transport – and finds that rising costs in each sector disproportionately affects rural communities in Scotland. 

Examples cited by the Committee include exposure to fuel price inflation due to being more reliant on transport, a reliance on expensive alternative fuels for off-grid households and higher charges for food deliveries to remote locations. 

In a new report published yesterday, MPs on the Westminster-based Scottish Affairs Committee acknowledge the unprecedented package of support provided by the UK Government which has helped to mitigate the impact of price spikes.  

The Committee concludes that some schemes, however, had prioritised administrative ease to accelerate funds getting to people rather than specifically targeting financial support for those who need it most. MPs on the Committee found that financial support tailored towards remote communities experiencing the ‘rural premium’ would have more effectively alleviated the acute and unique pressures those households face. 

Evidence submitted to the Committee as part of the inquiry showed that prior to the sharp increase in fuel prices, the highest rates of fuel poverty in Scotland could be found in the most rural regions – Na h-Eileanan Siar (40%), Highland (33%), Argyll and Bute (32%), Moray (32%), Shetland Islands (31%) and Orkney Islands (31%). The Scottish Government has estimated that 57% of households in rural areas would be in fuel poverty by April 2023. 

The Committee heard that food insecurity had led to a ‘cost of surviving crisis’ for some in particularly remote areas, while delayed plans to improve ferry and road infrastructure has further exacerbated difficulties for rural communities. 

MPs are calling for the Scottish and UK Governments to work together in order to better understand the scale and complexities of the challenges facing rural communities in Scotland. Agreeing consistent definitions of food poverty and more effective collaboration to overcome transport infrastructure challenges would be welcome steps forward in tackling this issue, the Committee says.

Chair of the Scottish Affairs Committee, Pete Wishart MP, said: “During the cost-of-living crisis, people living in remote parts of Scotland have found themselves in a perfect storm of poorly-insulated, high energy usage homes with an extended journey to local amenities and food shopping bills off the charts.  

“Schemes implemented by both the UK and Scottish Governments have been welcome in large parts of Scotland, but the reality is these households have been lumbered with a ‘rural premium’ that hasn’t been adequately addressed by state support. 

“We must learn the lessons from the economic challenges households have faced over the last few years. I hope both the UK and Scottish Governments will use this time to properly understand the support these communities will need to prevent them falling further into poverty should we face similar problems in the future.” 

Former First Ministers to discuss intergovernmental relations with Scottish Affairs Committee

All living former First Ministers of Scotland – Nicola Sturgeon, Alex Salmond, Jack McConnell and Henry McLeish – have agreed to give oral evidence to Westminster’s Scottish Affairs Committee as part of its ongoing inquiry into intergovernmental relations. 

The inquiry, named Intergovernmental Relations: 25 years since the Scotland Act 1998, is looking closely at the structures which underpin relations between the UK and Scottish Governments, including the new IGR framework introduced in 2022. 

In sessions due to take place in the first half of 2024, MPs will have the chance to question Nicola Sturgeon, Alex Salmond, Jack McConnell and Henry McLeish on their experiences of intergovernmental relations between Edinburgh and London during each of their tenures as First Minister.  

The witnesses led the Scottish Government during significant political events, including the 2014 independence referendum and the UK’s exit from the EU. The Committee will also be taking evidence from a number of former Secretaries of State for Scotland who have held the post since 1998.  

So far, the inquiry has received written evidence from Tony Blair and Lord David Cameron, as well as hearing from former UK Government ministers and senior civil servants to assess whether the intergovernmental processes have delivered on the aspirations of politicians in 1998. 

The Committee also questioned leading academics at the University of Glasgow and University of Stirling for their expert views on whether current intergovernmental processes are working effectively. 

Alex Salmond will be questioned by the Committee on Monday 19 February.

The date of the other former First Ministers’ appearances will be confirmed in due course. 

Chair of the Scottish Affairs Committee, Pete Wishart, said: “It’s a clear demonstration of the importance of this work that all living former Scottish First Ministers have agreed to appear in front of the Committee as part of the inquiry into relations between the UK and Scottish governments since 1998. 

“Given that we will hear from all living former First Ministers of Scotland, we will be inviting all former UK Prime Ministers who have been in power since the implementation of the Scotland Act to appear in front of the Committee.

“I sincerely hope they will match the commitment of their Scottish Government counterparts and accept our invitation.”

St Andrew’s Day: ‘Beyond the Tartan’

WESTMINSTER’s Scottish Affairs Committee has published the UK Government’s response to its report on Promoting Scotland Internationally, in which MPs found the UK and Scottish Governments often collaborate well when promoting Scotland’s interests abroad but more work is needed to highlight modern Scottish successes. 

In its report, the Committee found a clear strategy was needed to ensure UK embassies have access to guidance and clear expectations for holding events on key Scottish dates such as St Andrew’s Day.  

The cross-party group of MPs recommended embassy staff of all levels be trained up on the current Scottish industry landscape and the UK Government’s priorities for Scotland in order to ensure a more consistent base of knowledge.

They also found more needed to be done to celebrate contemporary Scottish successes in fields such as scientific research, space and energy in addition to the more traditional attributes of the Scottish brand which still resonate on the international stage. 

In its response, the UK Government highlighted past events but didn’t commit to implementing a strategy for celebrating key dates in the Scottish calendar across all embassies.

The UK Government also indicated senior staff receive adequate training but did not commit to giving staff of all levels updated training on the Scottish market and industry landscape. 

The UK Government indicated agreement with the Committee that officials from the UK and Scottish Governments regularly work collaboratively overseas in order to deliver the best possible outcomes, and also acknowledged the importance of maintaining regular communication between teams. 

The UK Government failed, however, to address a number of the Committee’s recommendations, including no commitment to provide specific information on the UK Government’s current priorities and objectives for promoting Scotland internationally. 

Scottish Affairs Committee Chair Pete Wishart MP said: “Scotland is home to a fantastic array of research and development organisations, businesses and academic institutions – so it’s critical that Scotland’s success stories are promoted in a consistent and coherent way on the world stage. 

“As a Committee, we found there were differing levels of engagement and knowledge related to Scotland’s key interests around the globe as well as a lack of a clear idea of exactly what the UK Government’s priorities are for promoting Scotland internationally. 

“As Scots worldwide celebrate St Andrew’s Day, I’m disappointed that the extent to which embassies around the globe are telling the nation’s story and celebrating Scottish culture will remain inconsistent. 

“Unfortunately, it was hard to identify a clear plan which will ensure Scotland receives the international recognition it deserves. It is, therefore, difficult to see how the UK Government will fully support Scotland to maximise the potential offered by our brilliant industries.” 

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Bank branch closures causing cash crisis for half a million Scots

Half a million people across Scotland who are dependent on cash risk being forgotten by banks due to the unprecedented rate of closures. Since 2015, 53% of Scotland’s bank branches have closed, which represents the highest percentage loss across the UK’s four nations.

From difficulties adapting to a society built on digital payments, to older people on lower and fixed incomes using it as a budgeting tool, many people opt to use cash for a number of reasons.

However, Westminster’s Scottish Affairs Committee raises concern that not enough support is being offered to support these individuals as the UK transitions to an increasingly digital society, nor has adequate research been undertaken to understand the full implications of such a move.

The Committee welcomes the Government’s introduction of its Financial Services and Markets Bill, which includes added protections on access to cash. The then-Treasury Minister John Glen, when appearing before the Committee, recognised the need for a more detailed picture of cash usage in Scotland.

The Committee is concerned that the rapid rate of bank branch closures may be as a result of banks rushing to close branches before legislation can take effect to protect access to cash and banking services.

In addition to Government legislation hoping to support access to cash, there have also been a number of voluntary agreements championed within the sector. This includes LINK’s Financial Inclusion Programme, which provides free access to cash via free-to-use ATMs in the most rural and deprived areas of the UK.

The Committee is of the view however that this should not be left to a voluntary agreement which leaves it vulnerable: future legislation should complement industry-led initiatives to guarantee free access to cash.

While access to cash in Scotland paints a deeply concerning picture, the Post Office has filled the void of many banking services within communities. It is deeply disappointing that Scotland has seen the highest percentage of Post Office closures anywhere in the UK, yet its resource and the service it offers appears to be steady.

In recent years, its offering of banking services has grown, and now offers customers more services than ever before, with the recent renewal of the Banking Framework Agreement. The Committee recommends that a long-term commitment is sought from banks to maintain appropriate banking services for their customers using the Post Office network.

Scottish Affairs Committee Chair, Pete Wishart MP, said: “Access to cash across Scotland has been decimated in recent years, leading to Westminster Committees investigating the issue multiple times.

“While the move to digital banking and payments has offered a method at which to do transactions that many of us enjoy, we cannot forget the 500,000 people in Scotland who rely on cash in their day-to-day lives. With the cost-of-living crisis deepening, many people are using cash for budgeting.

“But what is deeply worrying is that bank branches are closing at a record rate with very limited research or thought conducted of the possible widespread implications.

“Since the predecessor Committee’s inquiry considering this very issue, it is welcome that the Government is legislating to protect access to cash. However, this positive announcement is beset by the risk that banks may close their doors before legislation on this matter comes into force.

“We are aware of the commercial considerations affecting banks, which has played a role in the recent increase of branch closures. We welcome the effort taken by the banking industry to protect access to cash, although we still feel that there is a clear need for legislation.

“In our report today, we are calling for more research into the implications of a cashless society and more secure and longer-term agreements to ensure the continued access to cash. The Government appears to be in listening mode on this issue, and I look forward to its response in due course.”

Recommendations

The Committee’s recommendations are:

  • The UK Government should consider asking the Financial Conduct Authority (FCA) to investigate and monitor cash acceptance levels across the UK.
  • If the FCA find a substantial number of retailers refusing to accept cash, the UK Government should introduce additional protections to ensure that consumers reliant on cash are not disadvantaged.
  • The UK Government should clarify how the Financial Services and Markets Bill will interact with pre-existing industry-led solutions such as LINK’s Financial Inclusion Programme.
  • We recommend that the UK Government consider legislating in the Financial Services and Markets Bill to mandate the membership of LINK for card issuers and ATM operators to ensure that the Financial Inclusion Programme can continue to provide free access to cash for as long as it is needed.
  • Attempts to introduce deposit-taking ATMs for both consumers and SMEs have been constrained by a considerable lack of progress from both the banking industry and the UK Government. Considering the strength of the evidence to support their introduction, we repeat our predecessor Committee’s recommendation that the UK Government set up a working group with industry to introduce network-wide deposit-taking ATMs.
  • Building on the structure and objectives of the Banking Framework Agreement, we recommend that the UK Government seek a long-term commitment from banks to maintain appropriate banking services for their customers using the Post Office network, to guarantee access to cash and basic banking services for all communities in Scotland.
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Worth the wait? Scottish Affairs Committee receives UK Government response on its immigration report FOUR YEARS later!

The Scottish Affairs Committee has finally received the Government’s response to its predecessor Committee’s report, Immigration and Scotland.

Since report publication in July 2018, the immigration system in the UK has undergone significant reforms, in addition to leaving the European Union, the covid-19 pandemic had a major impact on immigration.

The Scottish Secretary points out in his response that non-EEA work visa applications are back to pre-pandemic levels, and EEA work visas have been increasing since the end of EU free movement.

At the time of publishing its report – July 2018 – the Committee raised concern that the points-based immigration system was complicated and bureaucratic.

In the Scottish Secretary’s response, he states that reforms are ongoing to streamline and simplify the system. He also offers an update on the latest quarterly statistics on EU immigration, showing that as of 31 December 2021, more than six million EU nationals and their families have been granted status under the EU Settlement Scheme, of which nearly 300,000 are in Scotland.

Scottish Affairs Committee Chair, Pete Wishart MP, said: “I am pleased that our Committee has finally received the Government’s response to the predecessor Committee’s report on immigration.

“However, such a delayed response has made it almost impossible for the Committee to track and scrutinise the impact immigration reforms are having on the people of Scotland.

“The predecessor Committee, which I chaired, would no doubt be disappointed that the Government response failed to address recommendations that could have benefited Scotland.

“This includes helping to tailor the immigration system to the needs of Scotland, such as through a Scotland specific shortage occupation list.”

BBC’s commitment to Scotland to be discussed with MPs

BBC spend in Scotland has fluctuated in recent years and, despite Ofcom praising the BBC’s ability to support Scotland’s creative economy, the BBC missed its spend quota in Scotland last year.

 In addition, recent reports have suggested that control of two BBC Scotland studios could be taken over by BBC Studioworks in Elstree, Hertfordshire.  

The Scottish Affairs Committee held a previous session with BBC Scotland in 2018.

MPs will use Monday’s session to explore topics including: 

  • The BBC’s commitment to Scotland;
  • The BBC’s performance in Scotland;
  • UK Government support for public service broadcasting;
  • The impact of the rise of streaming services and social media;
  • How an increasingly digital world could impact the ease at which non-English content – such as BBC Alba and BBC  Radio nan Gàidheal – can be found.

Ofcom has found that people in Scotland watch the most broadcast television of any UK nation, with BBC One productions being the top three most-viewed shows in Scotland in 2019.  

Witnesses:

Tuesday 20 July, from 10am

  • Steve Carson, Director, BBC Scotland
  • Louise Thornton, Head of Multiplatform Commissioning, BBC Scotland
  • Gary Smith, Head of News and Current Affairs, BBC Scotland

Westminster committee calls for drugs decriminalisation in Scotland

The possession of illicit drugs for personal use should be decriminalised, a report by MPs has said. Westminster’s Scottish Affairs Committee also recommends the UK government should allow so-called fix rooms in Scotland in a bid to tackle drug misuse.

Drug-related deaths in Scotland reached an all-time high of 1,187 last year. Continue reading Westminster committee calls for drugs decriminalisation in Scotland

Scottish Affairs Committee focus on environmental impact in oil and gas inquiry

The Scottish Affairs Committee resumes its inquiry into the oil and gas industry on Wednesday (10 October) with a session focusing on the environmental impact of the sector. Witnesses will include the UK Energy Research Centre, Friends of the Earth Scotland and Scottish Carbon Capture Association. Continue reading Scottish Affairs Committee focus on environmental impact in oil and gas inquiry