First Minister and Scottish Chambers of Commerce issue joint call for investment to support growth
A joint call for investment has been issued to the Chancellor on the eve of the UK Budget from Scottish Government and Scottish Chambers of Commerce.
Speaking to business leaders at a reception with the Scottish Chambers of Commerce yesterday (Tuesday 29 October), First Minister John Swinney said: “My Government is committed to growing the economy to generate the wealth to invest in our public services and eradicate child poverty.
“We want to use that investment to create a partnership between government and business that will make the most of Scotland’s many economic opportunities.
“It takes political willpower to adapt and evolve our economies and grow thriving societies in all four nations – something the Chancellor can signal by including steps to advance the Acorn carbon capture and storage project in the UK Budget, which would provide new opportunities for workers in the oil and gas sector in Grangemouth and in other parts of Scotland.
“The Office for Budget Responsibility highlighted recently the potential for public investment to deliver permanent improvements in the economy. It is welcome that my calls for the Chancellor to amend her fiscal rules have been heard, with indications last week that there will be scope for greater investment.
“The Chancellor has the chance to choose to deliver a UK Budget that invests in our public services and supports the entrepreneurial spirit displayed in Scotland’s business sector.
“With these new rules in place the Chancellor must use the fiscal headroom they create to deliver a Budget that immediately and significantly enhances Scotland’s resource and capital funding, enabling us to invest more in our public services and take forward the vital infrastructure projects that support economic growth, net zero, and action to tackle child poverty.”
Scottish Chambers of Commerce Chief Executive Dr Liz Cameron CBE said: “Our budget focus is on growth, investment and competitiveness. That means investing in skills, technology and infrastructure, and equipping the workforce for tomorrow’s challenges.
“The Chancellor’s actions and the message they send will directly impact business confidence and investment at a time when we need to create positive momentum. We hope that our calls to support business have been listened to and not ignored.”
Deputy First Minister John Swinney laid out “a different, more progressive path for Scotland” as he presented the Scottish Budget 2023-24.
He promised to strengthen the social contract with the people of Scotland and pledged to do everything possible to shield families from the welfare cuts and austerity policies of the UK Government
Supporting sustainable public services through the cost of living crisis is a priority – including more than £13.7 billion for NHS boards and £2 billion to establish and improve primary healthcare services in communities, as well as £1.7 billion for social care and integration, paving the way for the National Care Service. This record investment goes well beyond any previous commitment to pass on all consequentials to health and social care, and delivers a £1 billion uplift to the health budget.
Having already increased the unique Scottish Child Payment to £25 per week as part of a drive to eradicate child poverty, the Budget invests £428 million to uprate all other devolved benefits in April 2023 by September’s Consumer Price Index inflation level of 10.1%. It commits £20 million to extend the Fuel Insecurity Fund to provide a lifeline for households, including the most vulnerable, against rising energy prices.
Scotland’s transition to net zero is boosted with increased investment to over £366 million in delivering the Heat in Buildings Strategy in 2023-24. This will help tackle fuel poverty as part of a £1.8 billion commitment over this Parliament to improve energy efficiency and decarbonise more than a million Scottish homes by 2030.
The Budget commits £50 million to the Just Transition Fund for the North East and Moray – more than double the 2022-23 allocation – to diversify the regional economy away from carbon-intensive industries and capitalise on the opportunities presented by new, green industries.
Strengthened by the agreement between the Scottish Government and the Scottish Green Party, the 2023-24 Scottish Budget also includes:
around £1 billion investment in high quality early learning and childcare provision, with a further £22 million invested in holiday food provision and expanding support for school-age childcare
£50 million for the Whole Family Wellbeing programme for preventative co-ordinated family support and a further £30 million to keep The Promise to care experienced children and young people
£80 million capital funding to support the expansion of free school meals
going beyond existing commitments with more than £550 million additional funding to Local Government
£165 million additional funding for frontline justice services and to continue with transformational reforms
a £46 million increase in resource funding to universities and colleges to ensure a highly qualified and highly skilled workforce for Scotland
Mr Swinney said: “The Scottish Government, like governments all over the world, is faced with a difficult set of choices. Through this Budget we are facing up to our responsibilities while being honest with the people of Scotland about the challenges which lie ahead.
“To govern is to choose and the Scottish Government has made its choice.
“Within the powers available to us, we will choose a different path. A path which sees the Scottish Government commit substantial resources to protect the most vulnerable people of Scotland from the impact of decisions and policies made by the UK Government. We choose to stand firmly behind the Scottish people, investing in our public services and doing everything possible to ensure that no one is left behind.
“This Budget strengthens the social contract between the Scottish Government and every citizen of Scotland for the wider benefit of society. This social contract means that people in Scotland continue to enjoy many benefits not available throughout the UK – including free prescriptions, free access to higher education and the Scottish Child Payment.
“Because we know this progressive model works, we choose the path where people are asked to pay their fair share, in the knowledge that in so doing they help to create the fairer society in which we all want to live”.
Responding to the Scottish Government Budget, STUC General Secretary Roz Foyer said: “It’s clear that Scotland’s trade union movement has made progress in winning demands from the Scottish Government.
####2Raising taxes on those most able to pay, including second homeowners, are key demands in our ‘Fairer Taxes’ report. We hope reform of the Small Business Bonus Scheme will leave it fairer and less of a drain on public resources and the piloting of scrapping peak rail fares is also a step in the right direction.
“However, we needed strides, not steps. We cannot pretend this is the radical, redistributive budget working people in Scotland needed – it isn’t. We can – and will – demand the government to go much further and deliver the substantial reforms needed to our economy including introducing wealth and further property taxes called for in our report.
“The Finance Secretary has more to do and we welcome his constructive engagement with our movement. This budget leaves the door open for public sector workers to negotiate the inflation level pay rises they so desperately need. We intend to use it.”
Responding to the Scottish Budget delivered by the Deputy First Minister, Dr Liz Cameron CBE, Chief Executive, Scottish Chambers of Commerce, said:“Whilst the backdrop for today’s statement was already set by the Chancellor Jeremy Hunt in the Autumn Statement, today’s Scottish Budget will not bring much Christmas cheer.
“Businesses and households are navigating an extremely challenging period of high energy costs, rising inflation and higher borrowing costs. The specific decision by the Scottish Government to widen the divergence on income tax rates between Scotland and the rest of the UK is exceptionally concerning.
“Many will be left pondering today as to who in the Scottish and UK Governments is standing up for the economy to help businesses survive this crisis and keep people in jobs.”
On taxation:
“The Scottish Government’s move to increase the top and higher rates of income tax will hit taxpayers in Scotland more than other parts of the UK.
“This is a clear disadvantage for Scotland’s businesses and workers and could position Scotland as a less attractive place to live and work. With over 350,000 people alone in the higher rate bracket, questions remain on the impact this will have on talent attraction, retention, consumer confidence and indeed departure of workers to other parts of the UK.
“We urge the Scottish Government to publish its economic modelling of this policy decision, specifically on the proposed impact this could have on future investment decisions by companies.”
On Business Rates:
“As a priority ask from the business community, we welcome the Scottish Government’s decision to freeze the poundage rate and align with the rest of the UK. This will provide relief to ratepayers by reducing the upfront cost burden of non-domestic rates. This was the right decision as is the incentive for businesses to invest in greener plant and machinery which supports net-zero and decarbonisation.
“Looking ahead, businesses need to see widespread reform to the business rates system ensuring it is fit for purpose and aligns with the economic reality that businesses operate in.”
On regulatory legislation:
“The scale of new and incoming regulations are piling additional cost burdens onto firms when they need them least.
“The recent move to delay the short-term lets licensing scheme was welcome and we had hoped for additional signalling from the Deputy First Minister today to delay other burdensome legislation such as the Deposit Return Scheme. This will continue to cause a great deal of frustration for affected sectors and we will therefore continue to represent sector concerns to Scottish Government through the Joint Regulatory Taskforce.”
On Net Zero:
“We welcome the Scottish Government’s intention to accelerate the move to a Net Zero economy. Businesses continue to support this agenda and a clear long-term plan for decarbonisation will support future investment and a just transition.”
Jonathan Carr-West (Chief Executive, Local Government Information Unit Scotland (LGIU) said: “Today’s budget saw Deputy First Minister John Swinney attempting to reach out to local government by promising additional funding and acceding to COSLA’s request to allow councils more freedom over council tax rates.
“Scottish councils will now be poring over the detail to see how much real additional money sits behind the headline of £550 million.
“Moreover, local government in Scotland will still be left wondering how, indeed if, it fits into the Government’s overall vision.
“While Mr Swinney was keen to position his budget in counterpoint to the UK Government, he risks repeating Westminster’s error in protecting the NHS at the expense of local government when we know that the preconditions for good health rely on effective leadership of place and an integration of services that only local democratic institutions can provide.”
The Poverty Alliance says the Scottish Government could do even more to invest in a just and compassionate Scotland:
Tax
Reacting to today’s Scottish Budget announcement, Poverty Alliance Policy and Campaigns Manager Ruth Boyle said: “We welcome the decision to use our tax powers in a progressive way to get more investment for the compassionate Scotland that people want. We hope that this will be the beginning of the Scottish Government’s efforts to use the full range of tax powers at their disposal. In the longer-term, the Scottish Government must reform the basis of our tax system, including implementing the long-awaited reform of council tax, to ensure that our tax system has justice and compassion at its heart.”
Services
“Increased support for the NHS and social care is very much welcomed. However, all of our vital public services are calling out for more investment. This budget raises a number of concerns for the future, and we fear that there will be more cuts to other public services coming down the line. We all rely on these public services, but they are a vital lifeline for people on the lowest incomes.”
Social security
“We are pleased that the Scottish Government have done the right thing and uprated benefits in line with inflation. However, we could go much further. The Finance Secretary stated that a key priority for this budget was tackling child poverty and it is therefore disappointing that the budget failed to uprate the Scottish Child Payment in line with other Scottish benefits. This will mean a real term cut in the value of the payment at a time when families on low incomes need more support to stay afloat. This decision raises particular concern for the poverty of single parents, over 90% of whom are women.”
Transport
“The decision to trial the scrapping of peak rail fares will help people to make ends meet as costs continue to rise. However, evidence shows that people on the lowest incomes are more reliant on buses. There is a need to improve access to affordable transport by extending free bus travel to people on low-income benefits and to those aged under 25.”
The 2022-2023 Scottish Budget will help transition Scotland to becoming more prosperous, fairer and greener, Finance Secretary Kate Forbes has said.
Speaking ahead of delivering the Budget to Parliament today, Ms Forbes said the Scottish Government will deliver a bold and ambitious package of public investment that delivers on the priorities which matter most to the people of Scotland.
Ms Forbes said: “The Scottish Budget will provide taxpayers with stability and support, set out clearly how we will accelerate our Covid recovery, and crucially, how our spending plans will set Scotland on a new ambitious path.
“It has been a challenging Budget due to the continuing impact of the pandemic, and the uncertainty and worry that Covid poses for us all. This has been confounded by the UK Government’s decision to remove necessary Covid consequential funding at a time when we undeniably need to help our public services.
“The Scottish Government has taken spending decisions that prioritise supporting people and our vital public services through the twin crises of Covid and the cost of living. It is a budget for Scotland’s future – one that will help us secure a fairer, greener and more prosperous country.”
Responding to the Scottish Budget, Tracy Black, CBI Scotland Director, said:“While the Finance Secretary has outlined some helpful interventions for business, firms that have been working tirelessly to get back on their feet after two miserable years will be left with little to get excited about.
“The removal of the business rates cliff edge in April for hospitality, retail and tourism firms will be welcomed, however many will be disappointed that the government hasn’t gone further – particularly as uncertainty around Omicron gathers pace.
“Increased funding for employability is clearly a step in the right direction but much more detail is needed on how skills funding will help firms address immediate challenges. Ultimately, greater ambition is needed on upskilling and retraining if we’re to ensure workers are equipped with the skills they need for a modern economy.
“On green investment there were some welcome announcements around green jobs and just transition. However, failing to use the non-domestic rates system to incentivise private sector investment in low carbon infrastructure feels like a missed opportunity that could have helped Scotland push-on towards its net zero target.
“Overall, business shares the Scottish Government’s vision for a fairer, greener and more prosperous economy. Firms will be keen to see how the forthcoming National Economic Transformation Strategy turns ambition into action; setting Scotland on a path towards competitiveness, dynamism and productivity growth – which is the only sustainable route to higher living standards.”
Scottish workers bitterly disappointed by pay deal as STUC insists ‘budget will result in robbing Peter to pay Paul’
The Scottish Trades Union Congress (STUC) acknowledged the increase in public sector pay floor to £10.50 and insisted that pay rises must be fully funded by Scottish Government to avoid cash strapped councils having to make other cuts to pay the increased rate.
STUC General Secretary Roz Foyer said: “Workers across Scotland will be bitterly disappointed as they hear about the pay cuts announced today. Below inflation pay increases do nothing to help people deal with escalating costs this winter. Councils will have to rob Peter to pay Paul as services could be cut to meet the gaps in funding.
“There is a desperate need to back our public services. Huge gaps in funding in the NHS and social care have left some of the most vulnerable people in our communities without the treatment and services they urgently need. The Scottish Government have failed to take the opportunity before them to step up and back public sector workers.”
COSLA released its ‘Budget Reality’ document last night in response to the Scottish Budget.
COSLA’s Resources Spokesperson Councillor Gail Macgregor said that COSLA Leaders will meet today to discuss the implications for Local Government and respond more fully then.
In a brief statement Councillor Macgregor, said: “Our ‘Budget Reality’ document is important as it sets out the facts about the Local Government Settlement.
“It appears to be a disappointing budget for the communities that we represent, as it does not give Local Government what we need to survive and nor does it meet our campaign aspiration to help those communities to ‘Live Well Locally’,
“Once more, our core financial settlement has been hit.
“That said, we will take time to consider the finer details of today’s announcement and the full implications for both ourselves and our communities.
“As a membership organisation, our Council Leaders will come together virtually tomorrow to consider the implications, before we make a more formal response following that meeting.”
Responding to the Scottish Government’s budget, which was published today, Peter Kelly (Director, Poverty Alliance), said: “Today’s Scottish Government budget contains a number of welcome commitments.
“Doubling the Scottish Child Payment from April, as we and so many others across Scotland campaigned hard for, will help stem the rising tide of poverty across the country. Introducing free bus travel for young people under 22 is also a positive step toward a transport system that can tackle inequality.
“But with over one million people in Scotland living in the grip of poverty, it is clear that we cannot let up. In 2022 we must see these actions built upon, with further steps taken to build a Scottish social security system that unlocks people from poverty.
“We must also go further in redesigning our public services, like by extending free bus travel available to all under 25s and to everyone on low incomes.”
Scottish debt help charity welcomes the doubling of the Scottish Child Payment in the Scottish Budget
Child poverty is rising in every local authority in Scotland. Even before the pandemic, one in four children in Scotland were growing up in poverty and food bank use has increased by 63% over the last five years.
The pandemic has made things even more difficult for those already struggling as it has disproportionately impacted people living on low incomes.
CAP Scotland National Director, Emma Jackson, says, “We are delighted to hear about the Scottish Government’s commitment to double the Scottish Child Payment for families with children under the age of six.
“This is the single most impactful action that will take us four percentage points closer to reaching our interim child poverty targets and signals that ending child poverty will be a defining priority for Scotland. It is encouraging to see Scotland leading the way with this unique payment for families.
“This additional income will make a significant difference for the families we work with at Christians Against Poverty (CAP) Scotland. Families like Holly’s, who experienced problem debt after an overnight reduction in hours at work. Coupled with ill health and the challenges of being a single parent, debt began to deeply impact all aspects of Holly’s life.
“Through working with CAP Scotland, Holly was able to access the right debt solution for her and begin a debt free fresh start. The additional £40 per month will mean not having to worry as much about keeping her home warm for her and her son or buying him more food.
“Yet the very real challenges of making a low income stretch far enough to meet essential living costs remains. We welcome the news of free bus travel for those under the age of 22, the extension of free school meals to older age groups and the accelerated roll out of the Scottish Child Payment to include all children under the age of 16 by the end of next year. However, we would urge the Scottish Government to do all it can to bring the roll out of the Scottish Child Payment forward.
“With the rising cost of living and the end to the Universal Credit uplift, many families are facing a significant struggle this winter. We’re concerned that even more people will be pushed into poverty. We are keen to hold the Scottish Government to their commitment that “we can’t leave anyone behind”.
“The announcements in today’s budget leave a risk that key groups could experience further hardship. For too many households we work with at CAP, like single adult households, there is insufficient income to cover everyday essentials – rent, food, fuel, toiletries – and borrowing money is often a necessity to survive. No one should be forced into problem debt in order to survive.”
The Scottish budget 2022-23 includes £150 million for walking, wheeling and cycling, an increase of £19.6m.
Living Streets Scotland, part of the UK charity for everyday walking has welcomed the significant funding and the impact it will have to make cleaner and healthier forms of transport.
Stuart Hay, Director, Living Streets Scotland said: “Today marks a fundamental and positive change in how transport is funded with a much greater focus on people walking, wheeling and cycling.
“Walking accounts for 22% of all trips, so it’s great to see spending levels reflecting this reality, switching from a focus on new road schemes that have resulted in congestion and emissions.
“The £150 million investment will make it easier, safer and more attractive for more people to choose cleaner ways to travel. This is vital in the face of a climate emergency and a crisis in public health brought about by inactivity.
“This level of investment means new projects, such as national action to get more children walking to school are possible. It also makes plans to cut traffic on Scotland’s roads and streets by 20% more realistic.”
Responding to the Scottish Government’s Budget for 2022-23, Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce said:“Scotland’s economy is recovering from the COVID-19 pandemic faster and stronger than many expected, and this budget offered the Scottish Government an opportunity to accelerate this return to growth.
“Whilst there was much to welcome in this budget the Scottish Government should have gone further to support Scotland’s businesses, the drivers of economic growth.
“Many economic deterrents as a result of the pandemic remain in place, impacting on footfall on our town and city centre high streets, driving down demand in our vital tourism and aviation sectors, and the looming threat of a return to greater level of restrictions is holding back investment. The Scottish Government should have provided assurances for businesses that targeted financial support will be made available to those ongoing affected sectors to deliver a clear pathway to recovery.”
On Non-Domestic Rates:
“Businesses will welcome the extension of rates reliefs afforded to properties in the retail, leisure, and hospitality sectors for an additional three months, however, this should have gone further to give businesses the time they need to recover from this incredibly challenging period.
“Scotland’s town and city centres have already lost thousands of businesses over the past twenty months and prolonged periods of home working have made the trading conditions for brick-and-mortar retailers tougher than ever, and many ratepayers will question if this extension goes far enough to support them.
“It was also disappointing that the Scottish Budget failed to confirm whether or not the long awaited NDR Revaluation due to take place in 2023 will go ahead as planned.”
Training, Skills and Supply Chain:
“Scotland’s businesses are still experiencing challenges through supply chain connectivity problems, rising cost prices, inflationary pressures, and recruitment difficulties.
“Additional funding for training interventions at all levels is welcome news and investment in Scotland’s workforce drive up business capacity and improve investment opportunities.
“Cost pressures and supply chain challenges require urgent action from government and whilst we await further details in the forthcoming National Economic Transformation Strategy, it’s important Scottish Government act now, collaborate with business and begin to resolve these issues as a priority for our economy.”
Energy and Just Transition:
“The energy sector remains a critical part of Scotland’s economy and the funding commitments in the budget to support a Just Transition are a step in the right direction.
“To meet Scotland’s Net Zero ambitions and secure the future of jobs in the energy sector and North and North-East though, this investment and funding needs to continue to be stepped up, at pace, in partnership with industry to enable businesses to pivot successfully.”
Scotland moves to a ‘modified’ Level 0 from tomorrow, Monday 19th July.
Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce said:“The confirmation that Scotland will move to Level 0 on 19th July marks another encouraging milestone towards the full re-opening of Scotland’s economy and business’s ability to recover.
“The fact remains though that the modified framework deviates away from what businesses had been preparing for and moving the goalposts at this late stage will cause uncertainty, negatively impacting on business confidence and recovery.
“The postponing of the phased return of offices will be a bitter blow for employees and employers alike, many of which had been getting ready to welcome employees back into offices from next week. T
“his will also sound alarm bells for those town and city centre businesses, reliant on office worker footfall and custom, who now need to wait another month until those workers start to return.
“Scotland’s hospitality sector, one of the hardest hit by restrictions, will be concerned that anticipated restrictions were not lifted, including little reprieve for the night-time economy, with challenging restrictions on trading remaining.”
On changes to rules for self-isolation and quarantine, Liz Cameron said:“A greater four-nations alignment on international travel restrictions and self-isolation is positive, however, until all restrictions are lifted many businesses operating in Scotland’s travel and tourism sector simply won’t be able to open.
“The international travel industry is vital to Scotland’s wider tourism and hospitality sectors, and it’s essential that financial support for these businesses is not only continued but enhanced to allow them to fully recover when restrictions do finally lift.”
On moving beyond Level 0, Liz Cameron said:“Our view is clear that we should continue on the path set out towards the lifting of all restrictions on the 9th of August as planned.
“The role of the Scottish and UK Government must evolve to enable businesses and communities to operate with autonomy, according to personal circumstances, business preferences and sectoral requirements.”
STUC General Secretary, Roz Foyer, said: “We welcome the more cautious approach set out today by the First Minister. The trade union movement has consistently called for a cautious approach to easing restrictions, based on the data in conjunction with vaccine uptake.
“Many workers will be breathing a sigh of relief at the continuation of mandatory use of face masks. However, for hospitality staff, many of whom will not yet be fully vaccinated, the announcement of larger indoor events may understandably cause fear and worry.
“When planning for the return to office working, we need employers to work with trade unions and employees to consider a phased and flexible approach for their return to work, ensuring workers’ health and wellbeing is protected while working from home or in the office.”
For the first time in over a year, businesses in Scotland can see the first shoots of recovery as COVID-19 restrictions begin to lift, according to a leading quarterly survey led by the Scottish Chambers of Commerce (SCC).
The SCC’s Quarterly Economic Indicator (QEI) for the second quarter of 2021 indicates more positive growth across all sectors surveyed, albeit, caution is still the watchword for many businesses.
Key Findings:
• Pent up demand unleashed: All sectors have reported substantial rises in confidence and domestic sales, owing to the easing of general and domestic travel lockdown restrictions. Most results are positive for the first time in over a year, albeit from historically low bases. • Caution looking ahead: All sectors have projected positive expectations for Q3, on balance, likely boosted by the expected further easing of lockdown restrictions. While firms are optimistic about sales revenue, they are more cautious around investment and staff levels with most firms envisaging no change to these in Q2. • Faltering export sales: Covid-19 disruption and Brexit fallout has resulted in trading difficulties for businesses in services, manufacturing and retail as evidenced by falls in export sales and orders across these sectors. • Inflation pressures: All sectors have recorded increases in concern over inflation, which may escalate as more consumers spend savings accumulated over the last 16 months and create uncertainty for business in terms of their costs and prices. • Flat labour market: Most sectors saw a slight increase in employment, apart from retail, which saw no change over the quarter. Most firms, across all sectors, expect little change in Q3 which could result in sluggish jobs growth, with further challenges expected as the furlough scheme is withdrawn.
Tim Allan, President of the Scottish Chambers of Commerce said:“The success of the vaccine rollout has enabled the easing of restrictions and the gradual reopening of the economy, unleashing pent-up demand in the economy. This has allowed some sectors to rebound more quickly than others, however, the route to economic recovery will be a marathon, not a sprint.
“It’s clear that concerns remain around the ongoing impact of Covid-19 as businesses grapple with huge uncertainties over what the economy will look like post-pandemic. Towns and city centres face new challenges as more people work from home and more flexibly, impacting on footfall and changes to consumer behaviour.
“The needs of employers and employees alike need to be finely balanced as we shape the recovery of our city centres which will impact on a wide range of sectors and supply chains.
“Equally, sectors such as tourism and international travel, which continue to operate with severe restrictions, are having to adjust to increased domestic demand, a simultaneous fall in international travel and a tightening supply of skilled labour. The sector needs continued financial support and greater clarity on when confusing and burdensome travel regulations will end, allowing greater numbers of international visitors to return.
“As we approach the end of restrictions businesses are increasingly turning their attention towards how to achieve long term growth and renew Scotland’s economy.
“We have recorded the first shoots of growth returning to our economy, and it is essential now that both the Scottish and UK Government’s do all that they can to stimulate demand and boost confidence in the coming months.
“Priority must be given to continuing the provision of targeted financial support where it is needed most and looking ahead, both Governments must create the right environment for businesses to get back on their feet, create jobs and trade successfully again.”
Commenting on the results, Mairi Spowage, Director at the University of Strathclyde’s Fraser of Allander Institute, said:“In April, we saw growth in the Scottish economy of 2.0%.
“This takes us above the previous post-pandemic peak in October. However, the economy still remains 3.7% below the pre-pandemic peak.
“Despite the optimism in the economy, there are risks to recovery which could provide headwinds to growth. The dislocation in global trade was significant due to the pandemic.
“However, we also know that the end of the EU Transition Period has caused significant issues for manufacturers and others trying to rebuild these supply chains since the start of this year. This chimes with today’s survey results, which show significant negative impacts on exports.
“Recent announcements of the delay to the restrictions roadmap will lead to calls from some sectors that there should much more extensive business support to get them through to a position where they can properly operate. As well-meaning as initiatives like a new Council for Economic Transformation may be, practical policy measures to help these businesses survive through the winter are likely to be needed.”
Further measures to help stop the spread of coronavirus (COVID-19) and limit non-essential contact will be introduced this weekend.
Nobody who lives in a Level 4 area should leave or remain outside their home except for essential purposes.
Working from home arrangements will be strengthened through updated statutory guidance. Working from home should now be the default position for all businesses and services, and only those who cannot do their job from home should be asked to go to the workplace.
From Saturday non-essential click and collect retail services will be prohibited in Level 4 areas and further changes will be put in place to how services open for essential purposes operate.
Timeslots will be required for collection and people should not enter a store to collect an item.
Businesses providing takeaway food will also operate on a ‘non-entry’ basis only, meaning customers cannot enter the premises when placing or collecting orders.
Restrictions banning the consumption of alcohol in public places will also be introduced.
In a statement to Parliament, First Minister Nicola Sturgeon said: “The situation we face in relation to the virus remains extremely serious.
“We must continue to do everything possible to reduce case numbers – this is essential to relieve the pressure on our NHS and to save lives.
“Both individually and collectively, these additional measures – in further reducing the interactions that allow the virus to spread – will help our essential efforts to suppress it.
“At this critical and dangerous moment, please: Stay Home. Protect the NHS. Save lives.”
The new regulations apply to all parts of Scotland currently in lockdown and will come into effect at 00.01 on Saturday
Responding to the latest announcements, David Lonsdale, Director of the Scottish Retail Consortium, said: “The situation with the pandemic is fast moving and we fully recognise government wants people to stay home. However these further revenue-crushing restrictions and the fresh complexity they bring, together with constant chopping and changing to the Covid Strategic Framework, are disconcerting and come at an incredibly difficult time for retail.
“Firms operating click and collect or food-to-go takeaway have taken every reasonable step to make their operations as safe as possible, complying with every twist and turn to government guidance and often at pitifully short notice. They have demonstrated they can operate safely and have invested significantly to make their premises Covid-secure, and it appears no evidence to the contrary has accompanied this announcement.
“The businesses affected – who have already lost much of their income during the crisis – are trying to make the best fist possible of the current severely curtailed trading conditions, and that just got even harder as a result of this decision which will add to their cash flow woes.
“The blunt reality is that the taxpayer-funded grant support on offer won’t make up for lost sales and firms’ mounting bills and debt during this pandemic. Even when we eventually emerge from lockdown shops will be unable to trade at capacity due to physical distancing and caps on numbers in stores, while the threat of a return to full business rates liability in April still looms. Decisive action is urgently required to extend rates relief into 2021-22 and avoid April’s reverse cliff edge which will see 100% reinstatement of business rates.”
“It’s vital shoppers continue to play their part, by shopping considerately, where possible alone, wearing face coverings, and following in-store signage. These are incredibly difficult times and it’s up to everyone to follow the rules to keep us safe and the virus at bay.”
Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce, said:“Today’s announcement will be very disappointing to those who have carefully adapted their businesses to be COVID safe and continue the trading that has kept them afloat up to this point.
“The lack of any certainty over when currently closed shops would be allowed to re-open added to the importance of Click and Collect services propping up many small and independent retailers.
“The Scottish Government must provide detailed evidence on how these new measures will support public health restrictions and urgently provide sufficient finance to support Scottish businesses if they are to get through yet more rules suddenly imposed upon them without prior consultation.
“Otherwise, it will only add to the growing desperation of businesses who have put finance and time aside to make their business COVID compliant, only to have to close anyway, with no clear route back to reopening.’’
STUC General Secretary Roz Foyer has voiced union frustration at the absence of definitive new restrictions to meet the upsurge in infection risk and new virus strain.
She condemned the refusal to require closure of non-essential manufacturing and construction. The STUC welcomed the pledge to strengthen the obligation on employers to allow their staff to work from home whenever possible but said it would seek urgent engagement on how this will be implemented.
Roz Foyer said: “It is becoming increasingly clear that the Government has a blind-spot in some sectors when it comes to introducing similar safeguards to last year’s first lockdown. This is causing confusion for workers and, in too many cases, allowing employers to play fast and loose with government advice.
“We have been contacted with a wide range of worker concerns about employers who are choosing to interpret the government’s position to allow them to stay open and/or require staff to attend work rather than operate from home.
“We will be urgently seeking details on how the Government intends to legislate for employers to default to home working.”
CAMRA’s Scotland Director Joe Crawford said: “Pubs are a force for good in our communities and they deserve to be supported through these latest restrictions, which have dealt another devastating blow to trade for hospitality businesses. When this nightmare is over, pubs and social clubs will be vital to the nation’s healing process – so long as they are still standing.
“Whilst no one wants to see irresponsible drinking in the streets during a lockdown, it is good that the Scottish Government is allowing pubs and breweries to continue selling alcohol in sealed containers for people to take home. This helps pubs, clubs and brewers to compete with the large supermarkets, and means that people can still get cask beer, which is under threat due to months of forced pub closures.
“I’d encourage everyone to safely and responsibly support their local breweries, clubs and pubs where they are still able to act as an off-licence and sell beer and cider to enjoy at home.”
Industry representatives wrote to the Scottish Government on Tuesday, insistingtakeaways should remain permitted. Some had feared the worst, so yesterday’s announcement offers at least some respite.
Ten representative organisations from across Scotland’s Food and Drink industry wrote a joint letter to the Scottish Government’s Rural Economy Secretary, Fergus Ewing MSP, to request that food and drink takeaway services be permitted to continue.
The letter stated:-
“Dear Mr Ewing,
Potential Restrictions on Food and Drink Takeaway
Last Thursday the First Minister stated she wanted takeaway businesses to switch to delivery where possible, and we understand from subsequent media reports Ministers are considering prohibiting food takeaway activity from taking place.
Food and drink, hospitality, and catering businesses are concerned at the move away from the transparency and certainty which the Government was able to provide in the final months of last year through the Strategic Framework.
It is worrying we appear to be returning to a less considered approach – one which doesn’t effectively engage affected businesses in advance – which is less likely to provide the benefits of consultation and rounded decision making provided by the earlier approach.
It goes without saying food and drink businesses are facing an incredibly difficult time. The desired outcome of the current restrictions, with people broadly staying at home, means footfall for businesses has collapsed.
The inability to offer sit-in facilities should hopefully help prevent the spread of Covid – but it comes at a very high economic price. In the context of a very uncertain economic outlook, these are very challenging trading conditions.
One of the few chinks of light in this dim outlook has been the ability for food and drink businesses to provide takeaway and click/telephone and collect services to customers. These services allow local businesses and suppliers to keep colleagues employed, provides a service to people – many of whom now are essential workers doing vital tasks – and of course are easy for smaller businesses to operate and establish. Limiting trade to home delivery only will force some businesses to close – and also ensure customers are more likely to purchase food and drink from grocers – ensuring more people are congregating in a smaller number of places.
Beyond this we are concerned at how any measures would be implemented into legislation. From our point of view how you would distinguish between a sandwich or sausage roll or hot or cold drink sold from a pub, bakery, café, restaurant, carry-out, newsagent, petrol station, or grocery store seems impossible to ascertain, but all are providing fundamentally the same service. The same applies across hundreds of product categories and thousands of businesses.
With these points in mind we remain very concerned at the suggestion this commercial activity could be suspended – especially as there is no indication when these businesses will be able to return to normal trading. Our members undertaking these services have complied with every change to government guidance and put in place many mitigation measures and invested significantly to keep shoppers and workers as safe as possible. They are providing an important service in difficult circumstances, helping to support key workers as well as the Scottish food and drink industry.
Of course, we all support every effort to tackle Covid. If there is clear and unequivocal evidence measures in this area will proportionately suppress the virus we would recognise that. However, we haven’t been sighted on any data or public health evidence as to why takeaway services are a risk. As such, forced closure seems somewhat arbitrary and marginal in terms of contributing to the suppression of the virus – not least as the new ‘stay at home’ order has just come into effect and is substantially reducing footfall.
Finally, it is only a week since the First Minister announced the new stay at home restrictions, which explicitly allowed takeaway businesses to trade. It’s very difficult for businesses to plan in any sense when government announcements emerge without warning, providing a metaphorical damoclean sword above any business trading right now.
These are very difficult circumstances for government. We want to work with you and your officials to continue to develop and deliver the proportionate measures which will suppress Covid and keep everyone safe. We hope you will look to engage constructively with us over the next few months.
Yours sincerely
Alasdair Smith, Chief Executive, Scottish Bakers
Colin Wilkinson, Managing Director; Scottish Licensed Trade Association
Ewan MacDonald-Russell, Head of Policy; Scottish Retail Consortium Jim Winship, Director; The British Sandwich & Food to Go Association
Jim Winship, Director; The Pizza Pasta & Italian Food Association
Marc Crothall, Chief Executive; Scottish Tourism Alliance
Paul Togneri, Senior Policy Manager; Scottish Beer & Pub Association
Dr Pete Cheema OBE, Chief Executive; Scottish Grocers’ Federation Stuart Reddish, National President; NFRN
Willie Macleod, Executive Director, Scotland; UK Hospitality
