HOUSEHOLDS ACROSS EDINBURGH TO BE SUPPORTED BY £23 BILLION
As communities across Edinburgh recover from the pandemic and face a Tory made cost of living crisis, yesterday the SNP Government’s spending review outlined record social security spending to help households facing increasing pressures. The Scottish Government allocated around £23 billion for social security over the course of the parliament.
The focus on supporting households under increasing pressure reflects the SNP’s commitment to create a fairer Scotland by tackling child poverty, reducing inequalities and supporting financial wellbeing in Edinburgh, and builds on current efforts to help families and mitigate Westminster welfare cuts.
The Resource Spending Review outlined over £23 billion worth of payments, with a total of almost £1.8 billion for the ‘game changing’ Scottish Child Payment alone. By 2026-27 the budget for Social Security Assistance will have increased by £6.3 billion.
This is despite the Scottish Budget for this year being cut in real terms by 5.2 per cent by the Tory UK government and the SNP government already spending almost £770 million on cost of living support, including several measures for families in Edinburgh not available elsewhere in the UK, such as:
Doubling the ‘game changing’ Scottish Child Payment to £20 per child per week with plans to increase it to £25 and extend it to under 16s by the end of the year – reaching a possible 450,00 young people.
Investing £86m to mitigate the Tory Government bedroom tax and benefit cap and support 90,00 people in their tenancies
Uprating eight Scottish social security payments by 6 per cent
A brand new Low-Income Winter Heating benefit that guarantees a £50 annual payment to over 400,000 low income households in winter 22/23
The Carers Allowance Supplement which will support around 90,000 carers with an additional £450 a year
Providing everyone in primaries one to five and over 140,000 eligible children and young people access to a free school lunch
Making free bus travel available for nearly half of Scotland’s population through concessionary travel
Additionally, the Scottish Government is making investment in areas like energy efficiency to bring down costs and the spending review set out how the SNP will build on these over the coming years.
SNP MSP for Edinburgh Pentlands, Gordon MacDonald, said: ““I am very glad to see this record investment in social security by the SNP Government, putting such a strong focus on tackling child poverty and helping households both across the Edinburgh Pentlands constituency and the wider city who are facing severe pressures right now which seems likely to only increase for the next while.
“Many families across Edinburgh are already benefitting from support like the Scottish Child payment, a £150 council tax reduction, the Scottish Welfare Fund and Discretionary Housing Payments which mitigate Westminster’s cruel bedroom tax.
“These are policies that build on the SNP’s current efforts. They will make a real difference to people’s lives and build on long standing measures that we benefit from every day – such as free prescriptions, free university tuition, free personal care, and 1,140 hours of free early learning and childcare which will continue to be maintained.
“When times are tough, Governments have to make tough decisions and I’m grateful the SNP government continue to focus on what matters most to people but, it is acting with one hand tied behind its back as Westminster continues to inflict its cruel austerity agenda at a time when people need support the most.
“Once again, it is clear that only with the full powers of independence, that we can stop spending a fixed budget on protecting households against Tory cuts and start to properly build a fairer, more equal Scotland.”
Last week I asked the Scottish Government about the rates of evictions after the COVID-19 pandemic, and if they would comment on evidence heard at the Scottish Parliament’s Social Justice and Social Security Committee that sheriff officers are “making up for lost time” since the pandemic (writes FOYSUL CHOUDHURY MSP).
I was astonished by the answer. Green MSP Patrick Harvie, in his capacity as Minister for Tenants’ Rights, said that I was “overstating the case”.
But the words he dismissed were not my own. I was simply presenting the Minister with evidence heard at the committee, from a worker on the front line of dealing with Scotland’s increasing problems with debt and arrears.
Not only was Harvie’s response dismissive and insulting to those working to aid people with problem debt, it demonstrates a Scottish Government that is asleep at the wheel when it comes to the growing housing and homelessness crisis.
The scale of that crisis was reported recently: a 2,052 per cent spike in court proceedings initiated by local authorities since the eviction ban ended; 366 households facing eviction in just the first quarter of this year; a 16.5 per cent rise in homelessness applications from the last quarter.
Any analysis of this grave situation must also consider other evidence heard by the committee, that the cost to local authorities of evicting a social tenant and putting them into the homelessness system is exorbitant, at an estimated minimum of £24,000 for a relatively simple case without complex challenges.
As we all discovered afresh during the pandemic, prevention is better than cure. The Scottish Government had been repeatedly warned of the potential for spiralling evictions after the scrapping of the evictions ban.
Scottish Labour have been clear that Scotland badly needs targeted support for tenants in social housing to avoid this coming storm. Instead, we get denial of the scale of the problem as reported by those on its front lines. Scotland deserves better than a government that dismisses the concerns of its most vulnerable citizens.
I am unfortunately sure that this will not be the last the Social Justice and Social Security Committee hears on this matter in this Parliament.
I will continue to monitor the situation as it potentially affects many vulnerable people in the Lothian region I represent, and continue campaigning for better targeted support for vulnerable tenants who have been hit by the dual shocks of the pandemic and the cost of living crisis.
We must have a compassionate approach. Allowing cases like these to be pushed into the homelessness system has no moral or financial case, and the Scottish Government should explore every avenue to avoid it.
Scotland continues to “set the pace” when it comes to students from deprived areas getting into university, the Commissioner for Fair Access has said.
The Commissioner’s latest annual report said the Scottish Government’s approach has been an “unambiguous success” and that “all the fair access indicators are flashing green”, despite the impact of COVID-19. It marks Sir Peter Scott’s last report as Commissioner for Fair Access before stepping down.
A record 16.7% of students from Scotland’s most deprived 20% of communities were entrants on full-time first-year degree courses in 2020/21, an increase of 545 students compared with the previous year. This represents an increase of around 1,550 entrants (39%), during Sir Peter’s time as Commissioner.
Higher Education minister Jamie Hepburn said: “The Commissioner for Fair Access makes it clear that Scotland continues to set the pace in the UK in terms of fair access to higher education, with a record number of Scottish students from deprived areas enrolling in university for the first time.
“I would like to thank Sir Peter Scott for his contribution as Scotland’s first Fair Access Commissioner and pay tribute to the lasting legacy he will leave. We will consider the recommendations of the report carefully.
“While excellent progress has been made by our institutions, we cannot let up on the momentum in the face of the challenges that lie ahead.
“We believe every young person should have the opportunity to reach their full potential, no matter their circumstances.”
Low Emission Zones (LEZs) to protect public health and improve air quality have now been formally introduced across Edinburgh, Glasgow, Dundee and Aberdeen.
Plans have been agreed at the local authority level and have now also been approved by Scottish Ministers, as required in legislation through the Transport (Scotland) Act 2019.
With the shape and scope of LEZs now agreed across the four cities through this introduction, local grace periods until enforcement commences have now begun.
In Glasgow, the LEZ already applies to buses. For other vehicle types, enforcement commences on 1 June 2023 (1 June 2024 for residents within the zone)
Edinburgh will commence enforcement TODAY 1 June 2024
Dundee will commence enforcement on 30 May 2024
Aberdeen will commence enforcement on 1 June 2024
LEZs set an emissions limit for certain road spaces, restricting access for the most polluting vehicles to improve air quality. This helps protect public health within our towns and cities, making them more attractive places in which to live, work and to visit. LEZs also encourage people to think about leaving the car at home and to consider public transport or active travel – supporting climate action by helping to meet Scotland’s world leading commitment to reduce car kilometres travelled by 20% by 2030.
Vehicles that do not meet the emission standards set for a Low Emission Zone will not be able to drive within the zone. A penalty charge will be payable by the registered keeper of a vehicle when a non-compliant vehicle enters the LEZ.
The minimum emission standards for vehicles permitted within the four LEZs are:
Euro 4 for petrol cars and vans (generally vehicles registered from January 2006)
Euro 6 for diesel cars and vans (generally vehicles registered from September 2015)
A number of vehicles are exempt from LEZ requirements, including any vehicle driven by a blue badge holder. Funding remains available to help people and businesses that need it most to comply with Low Emission Zones. Full information is available at www.lowemissionzones.scot
The introduction of Scotland’s LEZs marks the completion of the Scottish Government’s landmark Programme for Government commitment.
Welcoming the introduction, Minister for Transport Jenny Gilruth said: “The introduction of Low Emission Zones is a truly significant public health moment for Scotland. Our air quality is generally good – but for too long air pollution has exceeded legal limits for health in our city centres as a consequence of unrestricted vehicle emissions.
“We have a moral responsibility to act. Air pollution often disproportionally impacts those with the least in our society. It causes the most damage to the youngest, the oldest and those with pre-existing medical conditions.
“LEZs are the biggest change we’ve ever seen in how vehicles will access our cities – and they need to be, in order to best protect public health and improve air quality.
“With a year to go until the earliest point of enforcement in Glasgow and two years to go until enforcement in Edinburgh, Dundee and Aberdeen, I encourage everyone to visit www.lowemissionzones.scot to find out more about the schemes, including the Scottish Government funding on offer.”
Councillor Scott Arthur, Transport and Environment Convener, the City of Edinburgh Council said:“By introducing an LEZ, Edinburgh is joining cities right across the UK in working towards a healthier environment and a better quality of life for everyone. We all have the right to breathe clean air and it’s our responsibility to tackle air pollution to protect the health and wellbeing of the most vulnerable members of society.
“The LEZ will restrict the most polluting vehicles from entering the boundary, reducing harmful traffic-related nitrogen oxide emissions by a predicted 55% in the zone.
“The LEZ is one of a number of tools to reduce harmful emissions and is being delivered alongside a range of projects to support sustainable travel, including Edinburgh City Centre Transformation, Trams to Newhaven and City Centre West to East Link. Together, these will help achieve our vision of a clean, green and net zero European Capital.”
Joseph Carter, Head of Devolved Nations at Asthma+Lung UK said:“Air pollution is the biggest environmental threat to public health. It is causing new lung conditions like lung cancer and worsening existing ones. With 1 in 5 Scots developing a lung conditions like asthma and COPD in their lifetime, for them, it can trigger life-threatening asthma attacks and exacerbations.
“Children’s lungs are also more susceptible to air pollution as they are still growing, and they also breathe faster than adults. As they grow, toxic air can stunt the growth of their lungs, making them less resilient into adulthood and placing them at greater risk of lung disease in the future.
“More than 70,000 children have asthma in Scotland and for them, peaks in toxic air can put them at risk of a potentially life-threatening attack.
“The gradual roll out of Low Emission Zones is going to be a huge step forward to start tackling this major health problem. Starting in Glasgow in 2018 and then extended to our core cities with the Transport Act 2019, LEZs are one of the most effective way of reducing pollution.”
John Bynorth, who leads Scotland’s Clean Air Day for Environmental Protection Scotland said:“We welcome the milestone introduction of LEZs to Scotland’s four main cities as it will lead to vast improvements in air quality in the city centres where the zones operate.
“Outwith the LEZs, we would also expect to see potential benefits to the surrounding areas as people consider their travel options and consider cycling or walking instead of taking the car.
“This will lead to improvements in the health of people who live, work and go to school in these cities and make them cleaner and more sustainable as they strive to achieve net-zero climate change targets in the coming years.”
Neil Leckie, Senior Programme Manager at the Energy Saving Trust said:“The expansion of Low Emission Zones in Scotland’s major cities will play a key role in improving air quality and in the transition to a net zero carbon society.
“The zones will encourage the use of low carbon transport and active travel, and available funding to prepare for the changes will support the individuals and businesses who need it most – including additional support for taxi drivers.
“We look forward to continuing to work closely with Transport Scotland to shape the future of low carbon cities and sustainable travel in Scotland as part of our commitment to address climate change.”
Using the powers under the Transport (Scotland) Act 2019 (and accompanying regulations), local authorities will introduce, operate and enforce their LEZ schemes using Automatic Number Plate Recognition cameras. All four cities propose schemes operating 24 hours a day, seven days a week.
Penalty charges are also consistent across the four cities. For non-compliant vehicles found to have been driven within the zone the initial penalty is set at £60, with a subsequent doubling for each contravention, capped at £480 for cars and light good vehicles, and £960 for bus and HGV. The penalty charge is reduced by 50% if paid within 14 days. Where there are no further contraventions detected within the 90 days following a previous contravention, the penalty is reset to £60.
There are a limited number of specific vehicles that are exempt from LEZ regulations as follows:
· Police · Ambulance · Scottish Fire and Rescue · Her Majesty’s Coastguard · Military vehicles · Vehicles for disabled persons (including blue badge holders) · Historic vehicles · Showman’s vehicles
Motorbikes and mopeds are also not within the scope of Scotland’s LEZs.
The Scottish Government is committed to helping those who will have most difficulty preparing for the introduction of LEZs across the four cities.
Our LEZ support fund offers three main packages of funding for households, micro-businesses, and a separate retrofit fund including support for taxi drivers.
Having been fully subscribed in 2021/22, funding is again available in 2022. Information is available on the Energy Saving Trust website.
For bus operators, a fourth round of BEAR funding has awarded £6.2 million to 20 operators to retrofit a further 379 buses and coaches in 2022. Between 2018-2021 the BEAR Phases 1, 2 and 3 awarded funding grants of £12.4 million to Scottish bus and coach operators to upgrade 762 vehicles to the latest Euro VI emission standard to help reduce pollution levels. This is in addition to funding for new zero emission buses.
An ‘ambitious but realistic’ public spending framework has been published which outlines how more than £180 billion will be invested to deliver priorities for Scotland.
The Resource Spending Review, which is not a budget, outlines how the Scottish Government will focus public finances in the coming years to tackle child poverty, address the climate crisis, strengthen the public sector as Scotland recovers from Covid and grow a stronger, fairer and greener economy.
A targeted capital spending review has also been published to address a reduction in capital investment by the UK Government. As well as supporting the NHS and affordable housing, the capital spending review will invest around £18 billion up to 31 March 2026, with over half a billion of additional funding directed to net zero programmes compared to previous plans.
Finance Secretary Kate Forbes said: “We are of course still recovering from the Coronavirus pandemic. There is still acute pressure on the NHS, on business and the wider economy. The illegal Russian invasion of Ukraine is a humanitarian crisis, which is affecting the global economy. Rising energy prices and constrained supply chains have affected countries worldwide. While inflation is also impacting other countries, it is not impacting them equally.
“The UK currently has the highest inflation of any G7 country– almost twice the rate of France. Brexit has made this problem worse, with increases in food prices, hitting the poorest hardest. We are experiencing an unprecedented cost of living crisis. Inflation is at a 40-year high of 9 per cent with households facing considerable hardship.
“Today’s Resource Spending Review is not a Budget. However, it is essential to share high-level financial parameters with public bodies, local government and the third sector, so we can plan ahead together.
“Today I set out an ambitious but realistic public spending framework for the years ahead. It does not ignore the realities of our financial position, but neither does it roll back on our ambitions for change.”
Further changes to Scotland’s fiscal position and to tax and social security forecasts are expected to change the funding picture ahead of annual budgets.
The spending review however does prioritise sending in key policy areas.
These are:
Tackling child poverty and supporting households and businesses with the cost of living
£22.9 billion for social security assistance
increasing the Scottish Child Payment from £10 to £25 and expanding eligibility by the end of this year
providing universal free school meals to primary school children in P1-5 and expanding provision beyond that
uprating devolved benefits
Securing stronger public services
investing £73.1 billion in health and social care including developing a National Care Service
increasing investment in frontline health services by 20 per cent over this Parliament
spending more on primary and community care to ensure people get the right treatment in the right place
funding of £42.5 billion for local government for the delivery of services
investing £11.6 billion in the justice system
Achieving net zero and tackling the climate crisis
up to £75 million per year to deliver the Heat in Building Strategy, enabling £1.8 billion investment towards decarbonisation
up to £95 million towards meeting woodland creation targets
£46 million to introduce the community bus fund and an increase in funding for concessionary travel schemes
investment of over £12 million in peatland restoration
£4 million of resource spending alongside £150 million capital and financial investment for the North East and Moray Just Transition Fund
Building a stronger, fairer and greener economy
capital investment of £581 million to support the economy, including our enterprise agencies and the Scottish National Investment Bank
continuing through the Inward Investment Plan to attract high quality inward investment in areas such as energy transition and the space sector
pushing forward with the export growth plan A Trading Nation to scale up Scotland’s international reach
embedding entrepreneurship in education, to give young people opportunities to start and grow businesses
The spending review provides a platform for engagement ahead of the next budget on how best to reform Scotland’s high performing public sector to become more efficient, to deliver ambitious outcomes. That means rapidly digitalising the public sector, maximising revenue through public sector innovation, reforming the public sector estate and the public body landscape, and improving public procurement.
The annual Medium Term Financial Strategy has also been published to provide the economic and fiscal context for the Resource Spending Review and Capital Spending Review, including the fiscal challenges that lie ahead.
COSLA has stated that the implications of the Scottish Government’s spending plans for the rest of the parliament are deeply concerning for communities across Scotland and fail to recognise the fundamental role Local Government has in addressing the Government’s own priorities of child poverty, climate change and a stronger economy.
The ‘Resource Spending Review’, published on 31 May, shows no prospect of an increase to Local Government’s core funding for the next 3 years, which is especially concerning in the current context of soaring inflation and energy costs.
This “flat-cash” scenario gives extremely limited scope for recognising the essential work of our staff, whose expectations around pay continue to be, quite rightly, influenced by Scottish Government’s decisions in relation to other parts of public sector. Put simply, the plans as they stand will mean fewer jobs and cuts to services. COSLA is seeking an urgent meeting with the First Minister and Cabinet Secretary for Finance to discuss this further.
COSLA’s Resources Spokesperson Gail Macgregor said “Every year at Budget time, COSLA argues for fair funding for Local Government to maintain the essential services our communities rely on.
“No increase in our core funding damages these services and yesterday’s announcement will see this continue for at least the next three years. Our communities are starting to see and feel the difference”
Yesterday, the Fraser of Allander Institute also immediately recognised the impact on councils – “The local government budget will decline by 7% in real terms between 2022/23 and 2026/27…….the real terms erosion of the funding allocations of local authorities represents the continuation of a longer trend”
Commenting on the resource spending review, a spokesperson for the Scottish Children’s Services Coalition commented: “The Scottish Government’s resource review, which highlights a spending gap of around £3.5 billion by 2026/27, points to highly challenging times ahead for our public services (1st June 2022).
“The Fraser of Allander Institute noted that, within this, councils will see real term cuts of 7 per cent between 2022/23 and 2026/27, the implications of which are highly disturbing for those with additional support needs (ASN) who we support.
“Those with ASN make up around a third of our children and young people, including autism, dyslexia and mental health problems, many of whom were already facing considerable barriers to support and not receiving the care they need when they need it.
“While we have witnessed a more than doubling in the number of these individuals over the last decade, putting an immense strain on services, there has been a cut in spending on additional support for learning and a slashing in specialist educational support.
“Covid-19 has had a further major impact, denying care to many, and with these latest swingeing public service cuts we are potentially facing a ‘lost generation’ of vulnerable children and young people.
“We would urge the Scottish Government and newly elected councils to work together to ensure that those children and young people with ASN are made a priority, able to access the necessary support to allow them to reach their full potential.”
The STUC have yet to comment on the Spending Review.
NHS Lothian has backed a new campaign designed to help people in the area look after their mental wellbeing.
The Mind to Mind, campaign features over 30 online videos of people talking about their own mental wellbeing challenges in a bid to help others who may be going through the same.
Covering topics including dealing with anxiety and panic, handling stress, improving sleep, lifting mood and moving through grief, each contributor shares practical advice on what has worked for them.
It also features commentary from a range of professionals and signposts where people can access further help and support.
The campaign also features a new advert across digital and radio to promote the help available.
Dr Belinda Hacking, Director of Psychology NHS Lothian and Consultant Clinical Psychologist said: “This new resource is a valuable addition to the wide range of mental health and wellbeing resources publicly available.
“Alongside our own Wellbeing Lothian website, we hope it goes a long way in helping people know they are not alone and know who to turn to for guidance and advice.
“Hearing about the experiences of others who have dealt with their own wellbeing challenges can really help, as can talking to others about how you’re feeling. Support is available to help you deal with life’s challenges.”
Minister for Mental Wellbeing and Social Care Kevin Stewart, said: “Mind to Mind has been created by people who have experienced mental wellbeing challenges for people who may be going through the same thing.
“If you’re finding things difficult, it’s important to remember support is available. Hearing about the experiences of others can help to navigate life’s daily stresses, and alongside practical advice, the website signposts where people can access further help.
“We’re hugely grateful to everyone who has contributed their advice on what has worked for them. Being so open about the challenges they’ve faced will hopefully help many others look after and improve their own mental wellbeing.”
Stephanie Phillips, Director of Service Delivery at NHS 24, said: “Mind to Mind and the video stories that have been so generously shared with us are a valuable addition to our online mental health resources at NHS Inform.
“If you’re feeling anxious, stressed, or low, or having problems sleeping or dealing with grief this site can help you by hearing from others. You can also explore a range of guides, podcasts and organisations that can help.
“We are committed to offering a range of services to support people in the ways they find best for them when mental wellbeing challenges come along, as they do for everyone. Your GP, our phone lines and the emergency services are available for anyone that needs urgent help.”
Bob, a 68-year-old from Edinburgh has shared the mental health challenges he’s experienced on the Mind to Mind platform, and what he has found helpful, following a diagnosis of PTSD.
Encouraging people to reach out and speak to someone if they need help, Bob said: “To be honest, support group therapy was probably one of the best and most positive experiences for me.
“I found it tremendously helpful, to be able to talk to people who shared the same sort of experiences. It makes you listen and makes it easier for you to relate to things that you think only you go through.
“I would urge anyone if they can find someone or a group of people, they can trust to speak to them. I learned that most people have at some stage gone through some sort of mental health issue, whether that be to a greater or lesser degree.
“This is why I emphasise the idea of trying to speak to someone because you just don’t know. Hearing from other people is what can help you, essentially. It’s what helped help me.’’
To access help and advice on looking after your mental wellbeing visit:
New measures will help cut waste and preserve precious resources
Proposals to help tackle the climate and biodiversity crisis by supporting Scotland’s transition to a zero waste and circular economy have been launched.
The measures, designed to significantly increase reuse and recycling rates, and modernise and improve waste and recycling services, are set out in two consultations – on a Circular Economy Bill and a Waste Route Map.
Key proposals include:
banning the destruction of unsold goods to ensure that products never end up landfilled or incinerated when they could be used or recycled
improving household recycling and reuse services and consulting on separate kerbside collection of textiles by 2025
introducing new reporting to show where recycling goes once it has been collected
measures to reduce the consumption of problematic single-use items and promote reuse of products
new powers to tackle littering from vehicles
a mandatory requirement for businesses to report surplus and waste figures for goods such as food and textiles
powers to set local recycling targets, reflecting the success of Wales, which has the one of the highest household recycling rates in the world
Scotland’s circular economy targets, outlined in the Scottish Government’s Climate Change Plan, include ending the landfilling of biodegradable municipal waste by 2025, reducing the percentage of all waste sent to landfill to 5% by 2025, and recycling 70% of all waste by 2025.
Circular Economy Minister Lorna Slater launched the consultations on a visit to the Edinburgh Furniture, which is run by the homelessness charity Foursquare.
The charity uses donated furniture to furnish its homeless accommodation and to raise money for its other services.
Lorna Slater said: “To tackle the climate and biodiversity crisis, we need to rapidly reduce our demand for raw material, increase reuse and repair, and recycle more.
“We must make a circular option the easy option for Scottish households, businesses and the public sector. I want everyone in the country to experience a modern, easy to use waste service that makes it easy for people to do the right thing for the planet.
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“We are already taking action, including delivering Scotland’s Deposit Return Scheme and our £70 million Recycling Improvement Fund, but we know we need to move faster if we are to meet our climate obligations.
“It requires us to be bold, brave, and focused on delivering the actions needed – and this must be a collective effort.
“These consultations set out the key proposed actions and the tools we will put in place to help everyone play their part in cutting waste in our economy, capitalising on the economic opportunities that a circular economy presents to businesses.
“The Circular Economy Bill will give us the powers to cut waste in our economy, while preserving precious resources and protecting our natural environment.”
Chief Executive of Zero Waste Scotland Iain Gulland said: “Today marks a tremendous step in Scotland’s transition towards a circular economy. “For years, Zero Waste Scotland has championed and helped usher in a more circular economy to reduce over-consumption.
“By supporting Scottish citizens, communities and businesses, through funding and tailored advice we are working hard to implement more sustainable ways of living.
“The Circular Economy Bill includes measures and approaches that will further cement and support the strides we’re making and crucially, it is a step in the right direction to end our contribution to the climate crisis.
“I encourage everyone in Scotland to take part in these vital consultations.”
Environmental campaigners have welcomed the move and are calling for strong targets to reduce the global extraction of resources supplying the Scottish economy, and measures to change the way materials are used in Scotland.
A circular economy is when materials are reused and recycled as much as possible before new resources are taken from nature, as opposed to our current linear ‘take, make, dispose’ model.
Kim Pratt, circular economy campaigner at Friends of the Earth Scotland, said: “Over-consumption by the wealthy few is pushing our whole planet to breaking point.
“Our current economic system, built on the idea of unlimited growth, is driving climate breakdown and leading to global material supply disruptions – it can’t go on. We need to reduce our reliance on new materials by changing our economic consumption patterns.
“The Scottish Government has made some really encouraging suggestions in the Circular Economy Bill. We need circularity to be embedded throughout government and Scotland’s economic sectors for it to be as effective as possible. The commitment to regular reviews and the creation of a circular economy public body are welcome.
“This new organisation needs to be independent of government and adequately funded. Creating a circular economy will require a step change in the scale and rate of change, based on strong leadership and collaboration. Now is the time to be bold.
“Targets to reduce both Scotland’s carbon footprint and material footprints need to be at the heart of the Circular Economy Bill to create real change, so it’s great to see that these have been prioritised in the bill. We must reduce Scotland’s carbon footprint to zero by 2050 to ensure Scotland contributes its fair share to global climate mitigation. Scotland’s material footprint must more than halve by 2050.”
Scotland’s material footprint was 18 tonnes per person in 2017, which is higher than the EU average (14 tonnes per person). Experts suggest that we can live sustainable, high quality lives with eight tonnes per person, by moving to a circular economy where materials are reused and recycled as much as possible.
82% of Scotland’s carbon footprint comes from the products and services we buy. Over half these emissions are due to imported goods but these are not included in Scotland’s climate targets. This means the environmental and social damage caused overseas by demand for goods in Scotland is virtually invisible at the moment, which is stopping it from being tackled.
The Scottish Government launched a review on waste targets at the same time as the consultation on the circular economy bill. The waste targets consultation is a key part of rapid system change required in Scotland.
Tomorrow (Tuesday 31 May) the Scottish government will publish a Spending Review and a Medium Term Financial Strategy. At the same time, the Scottish Fiscal Commission will publish updated economic and fiscal forecasts for the period to 2027.
This article by DAVID EISER at the FRASER of ALLANDER iNSTITUTE considers six key things to look out for:
How much detail will the government provide about its spending plans?
The government has said that its resource spending review will ‘outline resource spending plans to the end of this Parliament in 2026-27’. This will, it says, ‘give our public bodies and delivery partners greater financial certainty to help them rebuild from the pandemic and refocus their resources on our long-term priorities’.
What has remained unclear is the level of granularity at which the government intends to set its spending plans.
A spending review is not a multi-year budget, and we shouldn’t expect it to look like one. But we have no idea whether the government is going to set out spending plans at portfolio level, or in more detail than this. Portfolio-level plans would be useful, but some organisations would, justifiably, point out that Portfolio level plans provide them with little if any certainty about their own allocations.
There is a possibility too that the government does not in fact set-out portfolio level spending plans, but instead provides information about its spending plans for only a selective list of its policy ‘priorities’. This sort of approach would certainly represent a missed opportunity.
How will the government address uncertainty?
The UK government’s Spending Review in October set out spending allocations for the Scottish government for each year until 2024/25. These allocations aren’t necessarily set in stone, but whilst they might well increase a bit, they almost certainly won’t be reduced.
The Scottish government does not have confirmed allocations for 2025/26 and 2026/27 and there is significant uncertainty around what the government’s allocations will be in these years.
It will be interesting to see how the Scottish government addresses this uncertainty in the spending review. Will it set out plans for a single scenario only? Will it set out a central scenario, together with spending plans under alternative scenarios? Or will it provide broad ranges over which it expects spending on different public services to fall?
There is a reasonable case for the government to adopt a different approach for 2023/24 and 2024/25 than it does for 2025/26 and 2026/27. But it shouldn’t use the uncertainty in the last two years of the parliament as justification for providing less detailed information in the next two years.
What insights will we get into the government’s policy commitments… and the implications for non-prioritised areas of spending?
The Spending Review should give us some further clues about the government’s emerging plans in various areas. For example, the timescales for, and financial implications of, plans to establish a national care service may emerge more clearly.
What is less clear is how much the spending review will tell us – explicitly – about levels of spending for non priority areas.
The Scottish government’s MTFS in December pointed out that the difference between its spending aspirations and its likely budget was over £2bn in 2024/25 (see Figure 6). This is a substantial funding gap (although it is not clear what assumptions lie behind it).
The spending review framework notes that ‘With limited resources, increased investment in the Scottish Government’s priorities will require efficiencies and reductions in spending elsewhere: we need to review long-standing decisions and encourage reform to ensure that our available funding is delivering effectively for the people of Scotland.’
It will be interesting to see whether the spending review document itself is as candid about where spending reductions are taking place as the framework document implied it might be.
How significantly will the economic outlook deteriorate?
The last set of SFC forecasts were published in December 2021. A huge amount has changed in the five months since then.
The December 2021 forecasts described an economy that had recovered from the pandemic more strongly and smoothly than had been anticipated earlier that year. The economy was forecast to grow 2.2% this financial year and 1.2% next.
Unemployment was forecast to peak at 4.9% in 2022, down from an expected peak of over 7% in its previous forecast. Inflation was expected to increase in 2022 to around 4.4% – enough at the time to cause the SFC to forecast a fall in real earnings.
We live in a different world now. By March 2022, inflation was 7%, and by May the Bank of England was expecting inflation to peak at 10% this year. The rise in inflation, together with tax increases, leads the Bank to forecast that 2022 will see the second largest annual fall in disposable household incomes since the 1960s.
The SFC’s forecasts will inevitably paint a similarly gloomy picture for real household incomes in Scotland, which in turn will result in a contraction of its forecasts for economic growth, and probably a deterioration in its medium term outlook for the labour market. Exactly how the SFC sees the cost of living crisis play out will be interesting to see.
In May the Bank of England’s forecast implied prolonged stagnation in UK economic activity, although it did not (quite) forecast a recession in a technical sense. If the SFC does forecast a recession in Scotland, this will no doubt dominate headlines, but it will be important to look closely at how different the UK and Scottish economic forecasts are in a tangible sense.
What will be the implications of the fiscal forecasts for income tax and the Scottish budget?
The SFC’s economic forecasts will have implications for the Scottish budget, via the income tax forecasts in particular. These implications are not as immediate as you might think – Tuesday’s forecasts do not themselves have major significance for Scottish government spending this year, since the forecasts made at the time of the budget are what really matters until tax outturn data is available.
But Tuesday’s forecasts will give an indication of whether the outlook for the contribution of income tax to the budget has improved or deteriorated since the budget forecasts in December.
Its very difficult to predict the outcome. Its quite conceivable that the forecasts for Scottish income tax revenue will be revised up, if the SFC believes that higher inflation and recent further falls in unemployment will drive up earnings growth. But what ultimately matters is how the SFC’s judgements play out alongside the OBR’s equivalent judgements for the UK (since these are what determine value of the income tax block grant adjustment).
The December forecasts painted a gloomy picture. Scottish income tax in 2022/23 was forecast to raise £190m less than what was taken out of the block grant to account for tax devolution, and £257m less in 2023/24.
Kate Forbes will be hoping for any signs of an improvement in the outlook. But whatever the implication of Tuesday’s income tax forecasts, they will in reality need to be taken with a pinch of salt, given the differences in timing between the OBR and SFC forecasts.
The other really important element of the fiscal forecasts will be what they say about the outlook for devolved Scottish social security spending, relative to the related uplift in the block grant.
Spending will inevitably be substantially higher than the level of additional resources flowing through the block grant, as a result of policy divergence in Scotland (in relation to disability benefits, carer’s allowance, and the new Scottish Child Payment). But the extent of the gap will have implications for the resources available to the Scottish government in other areas of devolved spending.
What will the MTFS tell us about the government’s wider strategic ambitions?
The Medium Term Financial Strategy sets out risks to the devolved budget over a five year period. We can expect the MTFS to analyse issues including uncertainties relating to inflation and the implications for public sector pay.
But past MTFS documents have also given a steer about some of the government’s wider strategic fiscal objectives and asks. It will be worth looking at what this year’s MTFS says about these issues – which potentially include positioning statements in relation to further tax devolution, or extension of borrowing and budget management tools – particularly in the context of the upcoming review of the fiscal framework.
David Eiser is Senior Knowledge Exchange Fellow at the Fraser of Allander Institute
‘We face a very difficult financial position over the new few years’
Prioritising public spending is essential to grow a stronger economy as Scotland recovers from the pandemic and faces up to the cost of living crisis, Finance Secretary Kate Forbes has said.
Speaking ahead of the publication of the Resource Spending Review, Ms Forbes said more focused government and public sector funds would achieve ambitions to tackle child poverty, reach net zero and deliver sustainable services for the future.
The Spending Review will give broad parameters for spending for the next four years and set out a series of government reforms.
Finance Secretary Kate Forbes said: “These are challenging times, and we need to be canny with our spending, but I’m confident that if we work together we can get through this cost of living crisis and still achieve our ambitions.
“That means tackling child poverty, driving our economic recovery from COVID and achieving net zero, while building a stronger public sector that is sustainable for the future.
“We face a very difficult financial position over the next few years with funding increases below inflation levels and the challenge of recovering from the pandemic without the financial tools available to every other government in the world. That means while the spending review is not a budget, it will include difficult decisions, to ensure we can really focus on supporting households and services at this time.
“The Resource Spending Review will detail the funding available over the coming years to achieve these goals, and it will be published alongside the Medium-Term Financial Strategy (MTFS) which gives economic context to the challenges and opportunities which lie ahead.”
Ms Forbes will outline the Resource Spending Review to Parliament when it is published tomorrow (May 31).
The Scottish Government says it is doing ‘everything within its powers and fixed budgets to ensure people, communities and businesses are supported as far as possible’, including investing almost £770 million this year in cost of living support and doubling the Scottish Child Payment to £20 per week.
Earlier this year it increased eight Scottish benefits by 6%, the rate of inflation at the time, and introduced a range of benefits not available elsewhere in the UK.
Expanding free school meals and providing £150 council tax payments to low income families are included in further actions to put money back into people’s pockets at a time when they need it most.
People living with dementia are being invited to join a new panel to help shape policy and delivery.
The national, independent group will also be open to unpaid carers to be sure that Scottish Government is fully considering the impact of policy and funding decisions on those who experience them first hand.
Work will begin with the development of an application and assessment process, with the expectation that it would be established before the end of the year.
Speaking at the beginning of Dementia Awareness Week, Minister for Mental Wellbeing and Social Care, Kevin Stewart said: “The voice of experience is a crucial part of our policy making process, and making sure that it is factored in as early as possible in making important decisions is key to improving services across the country. Only someone living with dementia, their loved ones and carers fully know the complexities and nuances of dealing with it.
“We already have a very active lived experience voice in dementia support and this panel will help to amplify it. Dementia activists across the world us the motto ‘Nothing about us, without us’ and this group will put this into practise.”
Dementia Awareness Week takes place annually in Scotland on the first week of June. This year’s event will run from Monday 30 May to Sunday 5 June and the aim of the week is to raise awareness of dementia and help improve the lives of people with dementia, their families and carers. This year’s theme is ‘Prevent, Care, Cure’ .
To apply to be part of the lived experience panel or for more information, contact dementiapolicy@gov.scot.
