Wellbeing Economy ‘makes sound business sense’

Wellbeing Economy Secretary Neil Gray has visited a company whose commitment to fair work and sustainability helped it survive the pandemic.

While at ACS Clothing near Glasgow, Mr Gray heard how a major creditor was so impressed with the business’s approach to fair work and environmental practices it agreed to convert a debt to equity – investing enough to ensure the firm could continue through the pandemic.

Then in the later stages of COVID 19, an ethical investor became aware of ACS’s reputation and also took a stake.

Now the sustainable fashion company is expanding to take on 20 new apprentices – four graduates and 16 modern apprentices across textile care and its warehouse operations.

Mr Gray said: “ACS Clothing is proof that fair work and sustainability make sound business sense.

“This imaginative and successful company captures what a wellbeing economy is all about – supporting a transition to net zero while practicing fair work principles such as paying the real Living Wage, listening to its workforce and offering apprenticeships and internships.

“In return its staff are incentivised, employee turnover is reduced and investors are increasingly attracted by its ethics and ethos.”

ACS Clothing’s Chief Operating Officer Anthony Burns said: “At the start of the pandemic, we faced significant financial strain, as suppliers demanded payment and customers halted orders, leading to a bleak outlook.

“However, our investment in circular business models, and our positive environmental and social impacts, were rewarded when Circularity Capital, a well-known Scottish ethical investment firm, invested significantly in our business.

“At ACS our commitment to fair work is not just a choice, but a responsibility we owe to our communities.

“It is the unwavering dedication to create environments where dignity, equality, and justice thrive, ensuring that every individual’s efforts are valued and rewarded without bias or exploitation.”

Housing for displaced Ukrainians

1,168 homes for people fleeing war in Ukraine

Almost 1,200 long-term homes are being brought back into use for those fleeing the war in Ukraine through an innovative approach.

The Scottish Government’s £50 million Ukraine Longer-Term Resettlement Fund supports Local Authorities and Registered Social Landlords to improve properties that are currently void.  

The fund was launched in September 2022 following a successful pilot and has so far provided 14 approved projects with £23 million of grant funding, helping to bring 1,168 homes back into use.

Almost 1,000 Ukrainian people are already living in 450 of these refurbished homes. A further 225 homes have been completed and are in the process of being tenanted. 

Social Justice Secretary Shirley-Anne Somerville announced the latest figures on a visit to see progress at a housing site in Edinburgh.

Ms Somerville said: “We stand in solidarity with the people of Ukraine and are determined to do all we can to help those who wish to build their life here in Scotland.

“Our innovative £50 million programme provides a vital lifeline for those fleeing the war by providing long-term and secure accommodation through reclaimed empty homes. I am proud that Scotland has been able to play its part and pleased to see us reach and surpass the crucial milestone of 1,000 homes for displaced Ukrainians.

“We have been able to house hundreds of families and individuals in safe accommodation so far and we will continue to work closely with councils and housing associations as we build on this excellent progress.”

City of Edinburgh Council Housing, Homelessness, and Fair Work Convener, Councillor Jane Meagher said: “We are proud to continue our support of displaced Ukrainians, and are committed to assisting those making their new lives here in Edinburgh and beyond.

“The £50 million programme to refit currently empty properties is very much welcomed and will make a positive difference to many families. The approximately 100 homes in Edinburgh that will benefit from the programme will initially be used to house displaced Ukrainians, before ultimately being returned to our council housing stock. Without the support of the programme it is unlikely we would have been able to bring these properties back into use for some time.

“However, it is important that we remember the scale of the housing challenges our residents currently face, not just in Edinburgh but across Scotland.

“We will continue to work closely with the Scottish Government and our other partners as we move forward.”

In September 2022, following a successful pilot, the Scottish Government launched the £50 million Ukraine Longer-Term Resettlement Fund. The Fund was designed to offer displaced people of Ukraine, settled accommodation for up to three years.

To date, the Scottish Government has provided 14 projects with almost £23 million in grant funding which has helped to bring back almost 1,200 homes. The fund remains open for applications.

The latest published data on the Ukraine Sponsorship Scheme including the Scottish Government’s Super Sponsor Scheme. The data shows as at 4 July there were:

24,962 total arrivals into the UK with a sponsor located in Scotland, of which 20,022 have come under the Super Sponsor scheme.

38,304 applications under the Super Sponsor scheme.

32,601 visas issued under the Super Sponsor scheme.

Tweaking around the edges of Council Tax does not fix its fundamental flaws

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 BandOriginal multipliers2017 reformsNew proposals
A0.670.670.67
B0.780.780.78
C0.890.890.89
D1.001.001.00
E1.221.31 (+7.5%)1.39 (+7.5%)
F1.441.63 (+12.5%)1.75 (+12.5%)
G1.671.96 (+17.5%)2.13 (+17.5%)
H2.002.45 (+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 groupAverage additional chargeAverage income (latest data)Average additional charge as a % of household income
6£201£27,8200.72%
7£201£31,9280.63%
8£222£37,5440.59%
9£258£46,3840.56%
10 (i.e. top 10%)£317£64,8960.49%

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)

£1m Cycle Share Fund announced

Ahead of the 2023 UCI Cycling World Championships, #ActiveTravel Minister Patrick Harvie announces £1 million Scottish Government investment to support bike share schemes.

The Scottish Government is investing £1 million to support bike share schemes. Delivered by Cycling UK, the Cycle Share Fund will get more people in Scotland cycling, by enabling access to a bike in an affordable, easy and convenient way.

It will enable organisations to purchase cycles and equipment for schemes that provide people with access to a bike that they don’t own. It will support a range of delivery models including loan schemes, subscription services, hire schemes, bike libraries, pool bikes and bike shares.

With support from Cycling UK, organisations who run or wish to run any form of cycle share scheme, including third sector and community organisations, charities, schools and other workplaces, will be eligible to apply for funding.

The fund will tackle barriers to cycling including the upfront costs of buying a bike, uncertainty around choosing the right bike or how to maintain it, or lack of a safe place to store a cycle.

Launching the funding, Minister for Active Travel Patrick Harvie visited Bike for Good in the west end of Glasgow, to learn more about their existing non-ownership pilot ‘SWITCH UP’.

Minister for Active Travel Patrick Harvie said: “I’m pleased to announce the Scottish Government investment of £1 million to support and develop cycle access schemes across the country.

“With the eyes of the world on Scotland for the first ever UCI 2023 Cycling World Championships – this investment demonstrates our commitment to removing barriers to cycling by expanding access – helping to keep the wheels in motion for everyday cycling after the event concludes.

“For our health, wellbeing and environment – we’re committed to building an active nation and making it easier for people to walk, wheel and cycle for shorter everyday trips.

“That’s why the Scottish Government has committed to spend at least £320 million, or 10% of the total transport budget, on active travel by 2024-25. Through this, we can bring about more projects like the one Bike for Good in Glasgow is expertly offering. Coupled with further investment in infrastructure, we will transform our communities to support the revolution in active travel that we need to see.”

Suzanne Forup, Head of Development at Cycling UK in Scotland, said: “We’re delighted to be delivering this fund that will provide more opportunities for people to cycle in an affordable and accessible way.

“We know that owning a cycle is not the best option for everyone, so we look forward to supporting a range of schemes that will break down barriers and enable people to feel all the benefits of cycling – financially, for their health, wellbeing and for our environment.”

Gregory Kinsman-Chauvet, founder and  CEO at Bike for Good, said: ““We welcome the Scottish Government’s Cycle Share Fund, delivered by Cycling UK. The purpose of the new fund aligns well with Bike for Good’s mission to enable people to ride a bike.

“We launched the UK’s first impact-led bike subscription service, SWITCH UP. We offer a safe, reliable and easy-to-use bike subscription service so that users are always ready and confident on the road. SWITCH UP users can access a bike, an e-bike or an e-cargo bike at affordable prices, with maintenance, insurance and mobile repairs included.

“Bike for Good is proud to offer this fantastic opportunity to Glasgow and are expanding it across the UK. A significant part of our fleet is committed to supporting low-income individuals.

“With SWITCH UP, we aim to make available a micro-mobility platform that enables people to access a bike as a mode of transportation. Overall, the new fund is a significant step forward for Bike for Good in their mission to make cycling more affordable, accessible, and widespread.”

Delivered by Cycling UK in Scotland, the #CycleShareFund will get more people in Scotland cycling through organisations like Bike for Good Glasgow.

It will enable access to a bike in an way that is:

🔹 affordable

🔹 easy

🔹 convenient

#PowerOfTheBike

#GlasgowScotland2023

Working together? Partnership agreed on National Care Service

Scottish Government, NHS and Councils to share accountability for services

The Scottish Government has reached an initial agreement with local government and the NHS about accountability arrangements for the National Care Service (NCS).

The agreement aims to establish who will be responsible for people’s care once the NCS is established.  Overall legal accountability will be shared between Scottish Government, the NHS and local government.

Staff will continue to be employed by local authorities, and councils will still be responsible for assets like buildings and the delivery of services.

New governance arrangements will be introduced to ensure consistently high levels of service across the country, while building the flexibility to meet varying community needs at a local level.

Social Care Minister Maree Todd said: “The Scottish Government has been working closely with Local Government to find a consensus on the National Care Service (Scotland) Bill, which will allow us to deliver on the urgent improvements needed to strengthen the delivery of integrated health and social care for people.  

“This partnership between the Scottish Government, Local Government and the NHS helps establish where responsibility for people’s care will sit under the National Care Service. The detail of how this will work at a local level will be developed in the coming months and we will continue to update parliament on this work, along with the results of our ongoing co-design events taking place across the country, after the summer recess.”

COSLA’s Health and Social Care Spokesperson, Councillor Paul Kelly, said: “Further improving the experiences of people accessing and working in social care and social work services must rest on an effective partnership between Scottish Government and Local Government.

“Combining shared national accountability with local expertise ensures the right balance of further improvement across Scotland, whilst rightly reflecting the diverse needs of local communities.

“We know too that successful change is driven by the valuable staff who deliver services. We hope by setting out the continued role of local authorities in delivering social care and social work functions, and staff remaining employed within councils, we offer comfort and stability to the Local Government workforce.

“In recognising this important first step, we know there is still more to do. As we progress forward, we are committed to continuing to work closely with people in receipt of support and partners to design a system that ensures individuals and communities always experience high quality care and support.”

The consensus follows the Verity House agreement on closer cooperation between Scottish Government and local government signed last month.

Council Tax consultation: Should Higher Bands to pay more?

Potential changes to the council tax system that could see those in the highest value properties asked to pay more if they can afford to have been published.

A joint consultation with COSLA is seeking views on plans to increase the amount paid by people in bands E, F, G and H. This aims to address criticism that the system is unfair, because at present those in the lower bands pay a higher proportion of the value of their property than those in the higher bands.

Around 75% of properties would be unaffected if the proposals, which could be phased in over a period of three years, were implemented. The Council Tax Reduction scheme would continue to offer lower bills for those unable to afford their council tax, regardless of what band they are in.

Public Finance Minister Tom Arthur said: “We have listened to calls for the council tax system to be made fairer, as presently more of the burden falls on those in the lower bands when considered as a proportion of the value of their property.

“The changes would only affect around a quarter of properties and even after they are taken into account, average council tax in Scotland would still be less than anywhere else in the UK.

“We know that many people are struggling with their finances and our Council Tax Reduction scheme is there to ensure nobody has to pay a Council Tax bill they cannot be expected to afford, regardless of what band they are in.

“I would encourage anyone who has views on these proposals to complete our consultation before it closes on 20 September 2023, to help us determine if they should be taken forward.”

Cllr Katie Hagmann, COSLA Resources Spokesperson, said: “For many years there have been calls to make the council tax system fairer. We are pleased to be working jointly with the Scottish Government to explore ways that we can achieve this. A fairer and more progressive Council Tax is what the proposals in this Consultation aim to do.

“This is a consultation about ways to make Council Tax more proportionate for everyone, so that householders pay their fair share towards the delivery of essential local services, including looking at those higher value properties.

“We want to hear from individuals, households, and communities to inform any redesign of this local tax, so would encourage people to respond during the 10 week consultation period.

“If you have a view on Council Tax, this joint consultation with Scottish Government gives you the chance to share your views and gives us a chance to make Council Tax fairer.” 

Background

The consultation will run for 10 weeks from 12 July to 20 September 2023. Any changes would come into effect at the start of the 2024-25 financial year.

Even with the proposed increases taken into account, the average Band E to G charge would still be lower in Scotland than in England.

 Band ABand BBand CBand DBand EBand FBand GBand H
% change in average bill0.0%0.0%0.0%0.0%7.5%12.5%17.5%22.5%
Average charge in Scotland after increases£944£1,102£1,259£1,417£2,001£2,590£3,259£4,251
England 2023-24£1,377£1,606£1,836£2,065£2,524£2,983£3,442£4,130

Only around 28% of properties are in bands E-H and could be impacted by the proposed change.

The consultation has been endorsed by the Joint Working Group on Council Tax, which was established as a commitment in the 2021-22 Programme for Government and the Bute House agreement.

In 2015, the Commission on Local Tax Reform highlighted how the original multipliers – set out in the 1992 Local Government Finance Act – resulted in properties in Band H paying three times as much Council Tax as a property in Band A despite the fact that the Band H properties were estimated to be worth, on average, fifteen times the value of properties in Band A. 

In 2023-24, Council Tax for a Band D property in different councils across Scotland varied between £1,261 and £1,515. In Scotland the average 2023-24 Band D rate (£1,417) is £648 less than in England (£2,065), and £463 less than in Wales (£1,879).

Meeting Scottish child poverty targets – is it a case of too little, too late ?

Tackling child poverty is a stated priority of the Scottish Government (writes Fraser of Allander Institute’s EMMA CONGREVE). Yet recent data has displayed little progress towards eradicating poverty and Scottish Government modelling now shows, with its current set of policies, the interim 2023/24 statutory targets are likely to be missed following a ‘deterioration in the macroeconomic situation’. [i]

The Child Poverty (Scotland) Act 2017 set out Scotland’s ambition through a set of child poverty targets,. This article looks at the data to understand why the progress hoped for has not been realised.

Why has there been little progress to date in tackling child poverty?

The most recent data shows that child poverty trend looks fairly flat (chart 1). The most recent period covers 2019-20 to 2021-22, and showed the number of children in poverty actually rising slightly compared to the previous period, matched by an increase in the total number of children in Scotland. This left the headline 2019-22[1] rate at 24%, the same as 2018-19 to 2020-21.

Chart 1: Relative child poverty in Scotland 

Despite the fact that Scotland is the only part of the UK to have child poverty targets, Scotland does not particularly appear to be outperforming rUK when it comes to reducing child poverty.

As chart 2 shows, whilst Scotland is towards the bottom of the pack when it comes to child poverty rates, other parts of the UK (the South East of England, Northern Ireland and the East of England) have had similar rates of progress over recent years. The data is quite volatile, but at the moment there does not appear to be evidence of Scotland forging a unique path.

Chart 2 – Child poverty rates across UK countries and regions

But what about the counter argument: in the absence of government policy, child poverty could have risen. Scottish Government analysis shows that they believe this would have indeed been the case?

However, the point still stands that there is nothing in the data so far that shows Scotland setting itself apart from elsewhere in the UK, perhaps reflecting the point that many of the policies that Scotland have in place exist in a not too dissimilar form in rUK – for example Free School Meals and an equivalent to Scotland’s Best Start Grant.  And whilst these may be less generous, it is seems that they are not different enough to show up in the aggregate poverty data.

However, this should be about to change. The Scottish Child Payment started to be rolled out in 2021. The 2021-22 data collection was the first year that Scottish Child Payment claimants were picked up in the data but over the next few years we would expect it to make more of an impact as the number of claimants and the generosity of the benefit has ramped up.

Looking at our own modelled estimate, we can see this emerging trend if we look out to 2023-24 with Scotland starting to diverge from those countries/regions of the UK that it was has recently been tracking alongside (Chart 3).

Chart 3 – Modelled estimate of the effect of the Scottish Child Payment on relative poverty rates in Scotland vs the rest of the UK

One potential issue is that the levels of Scottish Child Payment picked up in the most recent data look like an underestimate compared to the figures on admin data.

There is always some disparity; it is widely known that the official surveys of income understate benefit receipt. However, the Scottish Child Payment figures look low, even once that known discrepancy has been taken into account.

This may improve as years progress, and people become more familiar with the Scottish Child Payment. However, it is a concern and will need to be monitored closely.

Beyond the Scottish Child Payment

Since its initial introduction, the Scottish Child Payment has increased in value to £25 per week, and it is now available for every child who meets the eligibility criteria. Many charities and stakeholder groups have recommended that the Scottish Government increases the Scottish Child Payment to £40, but this has so far been rejected.

The Scottish Child Payment is forecast by the Scottish Fiscal Commission to cost £405m in 2023/24. An increase to £40 would cost in the region of £250m more for an additional 2.5 percentage point reduction in poverty. The modelling suggests this would have been enough to meet the 2023/24 interim target, but still leave poverty levels some way distant from the 2030/31 target.

Clearly, some new ‘game-changing’ policies are required. Along with social security, the most obvious place to focus attention is on earnings from paid employment. Both the 2018 and the 2022 tackling child poverty delivery plans had actions relating to employability, but the Scottish Governments most optimistic assumptions were only able to predict a 2 percentage point reduction in poverty[iii].

The decisions people make around work depend on many factors, and the jobs available to them can limit options. Childcare, transport, and skills are just some of the potential intervention areas, and for them to start adding up to significant impact, investment at scale will be required. It is likely that some additional social security interventions will need to be on the cards as well if there is any chance the 2030-31 targets will be met.

The unfortunate fiscal reality and the need to prioritise better

The recent Medium Term Financial Statement reminded us that, even with the current set of policies, Scottish Government is facing a budget shortfall in the coming years. Yet, child tackling child poverty remains a clear stated objective and it is difficult to see how the targets can be met without more money being invested.

The statement  set out the Scottish Government’s intention to “prioritise the programmes which have the greatest impact on delivery”. Our experience from years of scrutinising government policy development is that cost-effectiveness analysis is often absent, often due to lack of internal capacity, skills and oversight of appraisal processes[iv].

In the 2022-23 progress report[v] , the Scottish Government estimated that they had invested £3 billion on programmes targeting low income households, with £1.25 billion estimated to benefit children over the year. Prioritising this list in terms of its cost effectiveness would be a first step in working out what needs to stay, and what could justify being dropped and reinvested elsewhere.

Remember that a cost-effectiveness analysis is not just about the number of children directly lifted out of poverty as a result (although that is a good place to start). It is also about other objectives, such as reaching those in the deepest poverty and moving them close to the poverty line, or investing in policies that help contribute to other government priorities, such as tackling climate change.

Evaluation evidence is also lacking. Six years on from the first tackling child poverty delivery plan, we should be seeing the results of which policies have been in place over that time.

Robust evaluation which is able to isolate the impact of particular policies on child poverty is difficult to do, but without some evidence in this direction, objective prioritisation is a lot harder to do, if not impossible.

A child poverty policy evaluation framework[i] was launched in 2023 and the 2022-23 annual report stated that there will be a review of progress after 18 months. Whether or not this  framework will deliver enough, and come soon enough to make a difference in time to meet the targets, remains in doubt in our minds.

[1] Analysis of Scottish poverty in Scotland is based on multiple years of aggregated data, with three years of data the norm. Due to issues with collecting data during the height of the pandemic, data for 2020-21 is not usable and for the three year periods that contain the 2020-21 year, only two years worth of data is included. This is not ideal, but is a sensible approach to deal with this exceptional circumstance.

[i] Scottish Government (2023) Child Poverty – monitoring and evaluation: policy evaluation framework available here

[ii] Scottish Government (2023) Tackling Child Poverty Progress Report 2022-23, available here

[iii] See p18 of JRF & Save the Children’s response to the 2022 to the Scottish Government’s second Tackling Child Poverty Delivery plan for further explanation, available here

[iv] Fraser of Allander Institute (2022) Improving Emissions Assessment of Scottish Government Spending Decisions and the Scottish Budget, available here. Although the report was ultimately about emissions appraisal, many of the findings relate to appraisal across all policy areas.

[v] Scottish Government (2023) Tackling Child Poverty Progress Report 2022-23, Annex B accessed here

Drugs: Scottish Government calls for decriminalisation for personal supply

RECKLESS, SAY SCOTTISH CONSERVATIVES

Decriminalisation of all drugs for personal supply is one of a number of polices which the Scottish Government is calling on the UK Government to implement in a new paper on drug law reform.

The move would allow people found in possession of drugs to be treated and supported rather than criminalised and excluded. Decriminalisation would also mean that without a criminal record, people in recovery would have a better chance of employment.

The document has been published by the Scottish Government outlining measures which could be implemented through further devolution, independence, or changes enacted immediately by the UK Government to support the work being done within existing powers to reduce drug deaths.

Among the proposals are:

  • Decriminalisation of all drugs for personal supply progressed as part of a wider review of drug laws
  • Immediate legislative changes to allow us to fully and properly implement harm reduction measures such as supervised drug consumption facilities (rather than the current proposal being explored which is constrained by having to work within existing legislation), drug checking and increased access to the life saving drug naloxone.
  • a roadmap for further exploration of drug law reform, focused on evidence and the reduction of harm, including an update of the drug classification system to be based on harms caused

The proposals follow recommendations made by the Drug Deaths Taskforce in September 2021.

Minister for Drugs Policy Elena Whitham said: “These are ambitious and radical proposals, grounded in evidence, that will help save lives.

“We want to create a society where problematic drug use is treated as a health, not a criminal matter, reducing stigma and discrimination and enabling the person to recover and contribute positively to society. While we know these proposals will spark debate, they are in line with our public health approach and would further our national mission to improve and save lives.

“We are working hard within the powers we have to reduce drug deaths, and while there is more we need to do, our approach is simply at odds with the Westminster legislation we must operate within.

“These policies could be implemented by the Scottish Government through the devolution of further, specific powers to Holyrood including the Misuse of Drugs Act 1971 – or through independence. An immediate way for these policies to be enacted would be for the UK Government to use its existing powers to change its drug laws.

“Scotland needs a caring, compassionate and human rights informed drugs policy, with public health and the reduction of harm as its underlying principles, and we are ready to work with the UK Government to put into practice this progressive policy.”

A spokesperson for the Scottish Conservatives said: “Trying to solve Scotland’s drug death crisis by decriminalising dangerous class-A drugs is reckless.

“To tackle the highest drug death rate in Europe, Humza Yousaf needs to back our Right to Recovery Bill.”

The Scottish Liberal Democrats have been calling for the decriminalisation of drug misuse for years. From rehab spaces to support for families, there are pressing areas where action is needed. This is an urgent public health crisis and ministers need to act like it.

Junior doctors: Pay deal agreed?

Industrial action suspended as improved offer to be put to union members

A record 12.4% pay increase for junior doctors and doctors in training for 2023/24 has been agreed with the British Medical Association.

Following discussions with Health Secretary Michael Matheson this afternoon, BMA Scotland have agreed to suspend strike action while they consult their members on this deal. 

Coupled with the pay raise of 4.5% awarded in 2022/23, this amounts to a cumulative increase of 17.5% over two years.

The deal also includes a commitment to future years pay, contract and pay bargaining modernisation.

Health Secretary Michael Matheson said: “Following months of negotiations with BMA Scotland, I am delighted that we have agreed a pay deal for 2023/24 for our Junior Doctors.  BMA have agreed to suspend strike action in Scotland while they consult with their members.

“I hope this investment and the significant commitments we have given around pay and contract reform will show Junior Doctors how much we value them, and that we are determined to ensure that Scotland is the place for Junior Doctors to work and train.

“Some patients may have been contacted to say their treatment has been cancelled. We are working hard with health boards to make sure appointments that can go ahead do, and that any others are rescheduled as soon as possible.”

Next week’s planned Scottish junior doctor industrial action has been suspended after the latest period of intense negotiations ended with BMA Scotland agreeing to put an improved offer from the Scottish Government to its members.

This year, Junior Doctors will receive a pay rise of 12.4%. For the following three financial years, Junior Doctors will receive a guaranteed minimum pay uplift of inflation every year. Over this three-year period, the Scottish Government has committed to negotiate further annual pay rises on top of inflation that must, “make credible progress on the path towards pay restoration”.

In addition, BMA Scotland will enter contract negotiations with the Scottish Government from Autumn 2023 with the aim of improving the working and training conditions of Junior Doctors in Scotland by April 2026.

As part of these negotiations, they will agree a new Pay Review mechanism, the aim of which is to reach a “mutually agreeable path to achieve pay restoration and prevent erosion recurring in the future”.

This mechanism once established should complete the process of restoring Junior Doctor pay and ensure it is protected against any recurrence of pay erosion in the long term.

On this basis, the BMA’s Scottish Junior Doctor Committee (SJDC) yesterday agreed unanimously that it would recommend members accept the offer in a consultative vote in the coming weeks.

Speaking after a full meeting of the committee, where the decision to put the offer to members was made, Dr Chris Smith, chair of SJDC, said: “This has been an intense period of negotiation with the Scottish Government.

“At this stage, our negotiating team feel they have reached the limit of what can be achieved this year and do not think strike action would result in a materially improved offer. As a result, we have agreed to suspend next week’s strikes and put this offer to our members.

“This offer commits the government to working with doctors to restore our pay and prevent pay erosion from occurring in the future.

“This is an unprecedented shift from the Scottish Government, which is a recognition of the huge decline in real terms pay that doctors have experienced over the past fifteen years, and the huge amount of work needed to undo the damage this has caused to the NHS. 

“By agreeing to address the way our pay has been cut, and setting out a clear mechanism for doing so, the Government is making a serious, welcome commitment to ensuring that pay for Junior Doctors in Scotland is restored to a fair level.

“The agreement is clear that the increases above inflation over the next three years must be substantial enough in real terms to make credible progress on the path towards pay restoration.

“We will now deliver wide ranging and comprehensive details of the offer to members over the coming days and will open a fresh consultative vote as soon as we can.

“While we have suspended next week’s strikes, our mandate to strike still has months to run, so all options will remain open. Indeed, regardless of the outcome of the consultative vote, the collective power junior doctors have demonstrated by consistently and powerfully speaking up on behalf of the profession should ensure that we are never again taken for granted as we have been for the last 15 years.”

The Scottish Government says the pay deal represents a £61.3 million investment in Junior Doctor pay – the largest in the last 20 years and the best offer in the UK – and means a doctor at the beginning of their career would receive a salary increase of £3,429 in 2023/24. For those at the end of their training the rise would be £7,111 over the same period. 

City centre grinds to a halt as Scotland marks Royal Coronation

National Service of Thanksgiving and Dedication

Scotland will mark the Coronation of His Majesty King Charles III and Her Majesty Queen Camilla with a series of events in Edinburgh today.

The King, accompanied by The Queen, will be presented with the Honours of Scotland – Scotland’s crown jewels – at a National Service of Thanksgiving and Dedication at St Giles’ Cathedral.

The service will be preceded by a ‘People’s Procession’ of 100 people representing different aspects of Scottish life, which will travel from Edinburgh Castle to St Giles’ Cathedral, and the Royal Procession, which will travel to the Cathedral from the Palace of Holyroodhouse.

Public opportunities will be available along the Royal Mile to view the procession, and the accompanying military bands and escorts.

The St Giles’ Service will be followed by a 21-Gun Salute fired from Edinburgh Castle and a flypast down the Royal Mile by the RAF Red Arrows.



The First Minister, Humza Yousaf, who is a republican, said: “Scotland will mark the visit of The King and Queen this week with a series of events to celebrate the Coronation, and I’m looking forward to representing the people of Scotland at today’s historic service at St Giles’ Cathedral.

“Those who wish to be involved will be able to follow TV or radio coverage of the proceedings, or view events in person along the Royal Mile. Space will be limited and a number of roads in the area will be closed, so I strongly encourage anyone attending to arrive early, use public transport if possible, and come prepared for whatever the weather may hold.”

Lord Lieutenant Robert Aldridge said: “The eyes of the world will be upon us once again as we mark the Coronation of His Majesty King Charles III and Her Majesty Queen Camilla. I’m quite sure it will be another proud day for the Capital.

“Given the scale and significance of these ceremonial events, we have to be prepared for disruption across the city, but particularly in the Old Town. We’re working with our partners to manage this as best we can and to keep residents, businesses and visitors updated on the events.

“For those who wish to enjoy the Royal and People’s Processions, I urge you to please plan ahead and keep an eye on our website and social media channels for the latest advice and guidance.”

For the most up-to-date information, visit:

City Council’s dedicated webpages, 

www.gov.scot and 

www.royal.uk.

The @edintravel traffic information team will be monitoring the city’s roads, sharing the latest information on disruption and diversions on Twitter.

See also Lothian Buses and Edinburgh Trams.