Scottish Government – Page 194 – The NEN

Resource Spending Review: Ambitious but realistic?

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.

Read the Cabinet Secretary’s statement to the Scottish Parliament in full here.

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 (1^st 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.

Mind to Mind launches to help people deal with life’s challenges

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:

wellbeinglothian.scot and www.nhsinform.scot/mindtomind

Scottish Government launches consultations on Circular Economy

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.

“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.

Six things to look out for in Tuesday’s spending review and fiscal forecasts

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

Kate Forbes: Setting spending priorities for a stronger Scotland

‘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.

Dementia Awareness Week: Policy to be shaped by people living with dementia and unpaid carers

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.

Guidance for people hosting refugees from Ukraine

Are you hosting someone from Ukraine? Scottish Refugee Council is holding free online info sessions on the Scottish Government’s Super Sponsor scheme.

If you have questions about the process, join us on Tuesday, 31 May or Thursday, 9 June to find out more.

We’ve teamed up with the Scottish Government to run online information sessions on the Ukraine Super Sponsor Scheme.

When:

Tuesday, 31 May from 12.45 pm-2.15 pm

Thursday, 9 June from 10am-11.30am

These sessions are for anyone who is interested in hosting, or has registered to host people from Ukraine, either privately, or through the Scottish Government’s Ukraine Super Sponsor scheme.

We will:

Introduce the Scottish Government Ukraine Super Sponsor Scheme: Guidance for Hosts
Cover key aspects of hosting such as eligibility criteria to become a host, the role and expectations of hosts
Share information about resources and further support available for hosts
Respond to questions around hosting.

How to join our information session:

The sessions will be held on Zoom and will run for 90 minutes.

We’ll send you a Zoom link the day before your session.

Funding to support Edinburgh Festival Fringe producers

£1.275m Fringe 2022 Resilience Fund developed, thanks to support from the Scottish Government’s Platforms for Creative Excellence (PLACE programme)

The Edinburgh Festival Fringe Society is pleased to announce that 13 Edinburgh Festival Fringe producers have been awarded a share of £1.275 million through the Fringe 2022 Resilience Fund, developed thanks to support from the Scottish Government’s Platforms for Creative Excellence (PLACE) programme.

The fund, designed to support resilience, recovery and creativity across the festival in its 75^th anniversary year, is part of a £1.58m award to the Fringe through PLACE. The remaining £305k has been allocated to support the ongoing resilience of the Fringe Society and includes £55k to support the delivery of Street Events during August.

Venues in receipt of the Resilience Fund are Assembly, BlundaBus, Gilded Balloon, Greenside, Just The Tonic, Laughing Horse, Monkey Barrell Comedy, Pleasance, Scottish Comedy Festival, Summerhall, theSpaceUK, Underbelly and ZOO.

The awarding panel was chaired by the Fringe Society, and included the expert advice of Creative Scotland, City of Edinburgh Council and EventScotland.

Commenting on the fund, Shona McCarthy, Chief Executive, Edinburgh Festival Fringe Society, said: “It’s fair to say that the last few years have been the most challenging in our festival’s history. Now, as we prepare to enter our 75th anniversary year, creatives across the Fringe landscape are working hard to ensure that this incredible festival not only survives, but continues to work hard to be the best version of itself.

“This support from Scottish Government is absolutely vital in helping us to achieve that goal: allowing producers and creatives across the landscape to not only recover from the devastating effects of the pandemic, but to offer enhanced support to artists, workers and volunteers; to continue to programme creative and innovative work; to improve accessibility; to tackle affordability and to ensure that this festival remains true to its founding principles of openness and inclusivity.”

Scottish Government Culture Minister Neil Gray said: “As we celebrate the 75th anniversary of the Edinburgh Fringe this summer, I’m pleased that £305,000 from our Platforms for Creative Excellence (PLACE) Fund will support the activities of the Festival Fringe Society and their street events this year.

“In particular I want to congratulate the 13 producers who will share the Fringe 2022 Resilience Fund. The last few years have been difficult for the venues putting on events so this support will help to ensure the continued success of this flagship summer festival.”

How the funding will support creativity and resilience across the Fringe:

To address recovery and resilience challenges for the Fringe, funding was considered across four key pillars: Creative Programming; Risk Management; Fair Work and Sustainability.

With this funding, Summerhall are planning a range of creative work at the festival, including supporting two under-represented artists to make new work in response to 75 years of the Edinburgh Festivals.

To address sustainability, they aim to lead the way as a flyer free venue and will implement e-ticketing. Within their workforce, they are looking to create a brand-new Fringe Learning Management System, which will help onboard workers through online learning.

BlundaBus’ funding will support their return to the Fringe after the pandemic. They actively work to programme and support alternative and experimental artists, as well as artists for whom cost is a barrier to participation, offering both performance and ‘green room’ spaces to support artists.

Since 2019 they have been working to develop a programme of work centred around women and LGBTQ+ performers. They are champions of the Pay What You Want ticketing model to support affordability at the festival, and embed sustainability across their practice by reducing single use items and prioritising sustainable materials in their infrastructure.

Greenside’s funding will allow them to continue operating as an open programming venue, giving artists from non-professional backgrounds a route to access the festival.

It will also support them to increase staff pay further, from Living Wage to paying every team member above the Real Living Wage; facilitating the creation of an additional 24 Festival jobs paid above the Real Living Wage.

To address sustainability, they will move to e-ticketing, transition their programme from print to digital, and look to reduce omissions across their technical operation.

Just The Tonic will use the funding to support their programming of high-quality comedy and to support and underwrite costs for artists who are still recovering from the pandemic.

In 2022, their venue The Tron will be programmed with female performers only, with the aim of addressing gender imbalance in the comedy sector. They will continue their Pay What You Want ticketing model to help with affordability, and as part of their commitment to fair work, all staff will be paid Living Wage.

Support for theSpaceUK will allow them to mitigate costs for artists who have been impacted by the pandemic, whilst keeping access to the festival affordable for creatives.

As a champion of both emerging and established artists, they will continue their commitment to open access programming and supporting new and original writing. They will continue to operate as a Living Wage employer and to offer a programme of staff training.

With their funding, Gilded Balloon will continue to support emerging artists and their development. In consolidating their programme, they plan to reduce the number of overall shows to allow for increased turnaround times between shows (allowing for a better experience for artists, staff and audiences alike).

While all staff are already paid the National Living Wage and above, this fund’s support will enable them to increase the number of staff on site and reduce staff hours. They are also investing in e-ticketing to support sustainability and are reducing the number of flyers produced by investing in digital marketing.

Laughing Horse have received support for the delivery of a range of activities associated with the Free Festival. To address sustainability, they are looking to fully replace their printed programme with an app and improved mobile website.

They will run mental health support sessions for performers and staff before and during the Fringe, and they have committed to a BSL interpreter for several performances to improve access to deaf audiences.

Funding will also support them with equipment costs and with the hiring of paid ticketing staff.

Underbelly’s funding will allow them to increase their minimum pay offer for temporary festival staff from the National Living wage (which they already pay) to the Real Living Wage.

They will also use the funds to hire additional short-term staff to support their existing team during the busy Fringe period, thereby improving working conditions and reducing working hours.

To address sustainability, the support will allow them to invest in e-ticketing. They plan to enhance their accessibility programme with extra captioned shows and a range of shows with BSL interpreters.

Support will also help with the build and maintenance of their temporary venues, and accommodation for their staff during the Fringe.

Monkey Barrell are looking to use their funding to continue to programme diverse and inclusive line-ups, whilst creating greater opportunities for local acts, unrepresented performers and those from non-privileged backgrounds.

They are looking to create a community focused artistic hub to enable creatives to come together at the festival. As of 2022, all year-round staff previously on Living Wage are now paid the Real Living Wage.

This fund will allow them to extend this to all temporary staff during the Fringe, and to create a staff development programme to upskill and develop their wider team.

ZOO’s programming in 2022 is aimed at better reflecting the lives of under-represented or minority audiences, and support from this fund will allow them to subsidise core costs for creatives.

Work by disabled artists is already central to their programming, and this funding will allow them to improve access to their audiences with enhanced BSL, audio description and captioned performances.

They will continue their commitments to paying staff Living Wage and above and to paying freelancers above the recommended rates. They will also continue to support their volunteer programme – which includes budget to address areas such as transport, access needs and childcare.

Funding will allow for Covid mitigations – such as enhanced cleaning, and provision of masks and hand sanitiser.

Pleasance will use the funding to reduce the financial risk to artists attending the Fringe – with targeted interventions which will support debut and early career creatives.

They plan to increase the number of employees in their workforce, reduce working hours during the festival, reduce the ratio of volunteers to paid staff, and provide increased opportunities for staff training. Some funding will also be used to invest in key infrastructure to improve their offering to artists and audiences, such as a reinforced Wi-Fi network to be able to facilitate e-ticketing.

Funding for The Scottish Comedy Festival will enable them to continue their work in programming local acts at the Fringe. Their model is centred around affordability and mitigating financial risk for the artists, and they are especially keen to support working class performers.

To further support affordability, their programme will continue to feature a mixture of Pay What You Want and Pay What You Can shows.

Assembly’s funding will be used to support artists’ attendance at the festival, by assisting with core costs such as accommodation, marketing and underwriting risk. Their programme, which celebrates 40 years at the Fringe this year, includes emerging artists and those from diverse backgrounds, as well as established performers.

Assembly Festival is a Living Wage employer and will use this fund to support increased training for staff and will also use it to mitigate against rising costs. They also aim to undertake research into post-pandemic audience behaviours and will continue their work as a sustainability champion.

Most vulnerable households will get over £1000 of help with cost of living

MORE SUPPORT NEEDED, SAYS SCOTTISH FINANCE SECRETARY

The most vulnerable households across Scotland will receive support of over £1,000 this year, including a new one-off £650 cost of living payment
Universal support increases to £400 across Great Britain, as the October discount on energy bills is doubled and the requirement to repay it over 5 years scrapped
This new £15 billion support package is targeted towards millions of low-income households and brings the total cost of living support to £37 billion.
New temporary Energy Profits Levy on oil and gas firms will raise around £5 billion over the next year to help with cost of living, with a new investment allowance to encourage firms to invest in oil and gas extraction in the UK.

Millions of households across the UK will benefit from a new £15 billion package of targeted UK government support to help with the rising cost of living, the Chancellor announced yesterday.

The significant intervention includes a new, one-off £650 payment to more than 8 million low-income households on Universal Credit, Tax Credits and legacy benefits to be made in two tranches starting in the summer, with separate one-off payments of £300 to pensioner households and £150 to individuals receiving disability benefits – groups who are most vulnerable to rising prices.

Rishi Sunak also announced that the energy bills discount due to come in from October is being doubled from £200 to £400, while the requirement to pay it back will be scrapped. This means the vast majority of households will receive a £400 discount on their energy bills from October.

The new Cost of Living Support package will mean that the most vulnerable households in Scotland will receive over £1,000 of extra support this year.

To ensure there is support for everyone who needs it, Mr Sunak also announced a £500 million increase for the Household Support Fund. This brings the total Household Support Fund to £1.5 billion.

To help pay for the extra support – which takes the total direct government cost of living support to £37 billion – Mr Sunak said a new temporary 25% Energy Profits Levy would be introduced for oil and gas companies, reflecting their extraordinary profits. At the same time, in order to increase the incentive to invest the new levy will include a generous new 80% investment allowance. This balanced approach allows the government to deliver support to families, while encouraging investment and growth.

The Chancellor of the Exchequer Rishi Sunak said: ““I know that people in Scotland are anxious about keeping up with rising energy bills, which is why today we have introduced measures which will take the support for millions of the lowest income households over £1,000.

“As a nation we have a responsibility to help the most vulnerable, which is why this support is mostly targeted at people on low incomes, pensioners and disabled people. But we understand that all households in Scotland will be concerned about the rise in energy costs this Autumn, so every household is set to get £400 off their energy bills from October, with no repayments necessary.

“It is right that companies making extraordinary windfall profits from rising energy prices should contribute, and I’m introducing a temporary energy profits levy to help pay for this support, while still encouraging the investment that generates jobs in Scotland.”

Scottish Secretary Alister Jack said: “Global issues are causing real pressures in the cost of living for UK families. We understand how tough it is at the moment for many households, which is why the Chancellor has today announced a further £15 billion support package.

“A total of £400 per household towards fuel bills will help protect families from rising energy costs. Cash payments of £650 for low-income households on means tested benefits will target support at the most vulnerable in our society at this difficult time. This comes on top of our existing £22bn support package.

“Some of these measures will be paid for by a temporary levy on oil and gas companies – one which incentivises investment in the UK’s energy security.”

There is now more certainty that households will need further support, with inflation having risen faster than forecast and Ofgem expecting a further rise in the energy price cap in October.

So as part of the UK government’s targeted support, the Chancellor announced that around eight million of the lowest income households on Universal Credit, Tax Credits, and legacy benefits will receive an automatic £650 cost of living payment in two instalments via the welfare system this year.

Yesterday’s announcement is on top of the government’s existing £22 billion cost of living support which includes February’s energy bills intervention and action taken at this year’s Spring Statement including a £330 tax cut for millions of workers through the NICs threshold increase in July and 5p cut to fuel duty.

Energy Profits Levy

Surging commodity prices, driven in part by Russia’s war on Ukraine, has meant that the oil and gas sector have been making extraordinary profits. Ministers have been clear that they want to see the sector reinvest these profits in oil and gas extraction in the UK.

In order both to fairly tax the extraordinary profits and encourage investment, the Chancellor announced a temporary new Energy Profits Levy with a generous investment allowance built in. This nearly doubles the tax relief available and means the more investment a firm makes, the less tax it will pay.

The new Levy will be charged on oil and gas company profits at a rate of 25% and is expected to raise around £5 billion in its first 12 months, which will go towards easing the burden on families. It will be temporary, and if oil and gas prices return to historically more normal levels, will be phased out.

The new Investment Allowance, similar in style to the super-deduction, incentivises companies to invest through saving them 91p for every £1 they invest. This nearly doubles the tax relief available and means the more a company invests, the less tax they will pay.

The government expects the combination of the Levy and the new investment allowance to lead to an overall increase in investment, and the OBR will take account of this policy in their next forecast.

The Levy does not apply to the electricity generation sector – where extraordinary profits are also being made due to the impact that rising gas prices have on the price paid for electricity in the UK market, which has also been making extraordinary profits partly due to record gas prices but also due to how the market works.

As set out in the Energy Security Strategy the government is consulting with the power generation sector and investors to drive forward energy market reforms and ensure that the price paid for electricity is more reflective of the costs of production.

The Chancellor announced yesterday that the Treasury will urgently evaluate the scale of these extraordinary profits and the appropriate steps to take.

During the announcement, the Chancellor also set out the government’s strategy to control inflation through independent monetary policy, fiscal responsibility, and supply side activism – a plan he said that should see inflation come down and returning to its target over time.

Finance Secretary Kate Forbes has welcomed the short term action announced by the Chancellor of the Exchequer, but warned more support is needed for households and businesses as the cost of living crisis worsens.

Following calls from the Scottish Government, the UK Government has taken steps to ensure that cash grants, rather than loans, are provided to those on lowest incomes. Ms Forbes has also cautiously welcomed the decision to introduce a Windfall Tax on energy companies benefiting from significant profits but commented that it means Scottish industry is disproportionately funding interventions across the UK.

Responding to the Chancellor’s statement, Ms Forbes has said UK Ministers should have acted earlier and gone further to provide more support that would make a real long term impact, including following the Scottish Government’s lead by doubling the Scottish Child Payment to £20 per week – which is due to increase to £25 from late 2022 helping lift an estimated 50,000 children out of poverty in 2023-24.

Ms Forbes said: “Many households will be relieved to see the support belatedly announced today, but we still need a long term solution to the cost of living crisis and reassurance that the UK Government is going to tackle long term inequalities rather than provide one-off bursts of crisis support.

“Rather than listen to our plea for a comprehensive funding package that fully addresses the unprecedented rise in the cost of living and uses the full £30 billion of fiscal headroom, this piecemeal approach makes it highly likely that more support will be needed later when energy prices rise significantly in the autumn.

“There is also a severe lack of support for businesses – many of them are still struggling to recover from the pandemic and now face crippling increases in energy costs and the damaging impacts of Brexit on supply chains and the labour market. Without urgent economic support there is a real risk that the UK economy is heading for a recession.

“Inflation is at its highest levels in 40 years and the UK Government’s failure to fully invest in increasing incomes, tackling inequality and boosting economic competitiveness will only risk pushing households into further debt and poverty

“The UK Government has almost £30 billion of fiscal headroom, spending only half of this during a cost of living crisis does not go far enough, especially when a further £5 billion from the Windfall Tax will be raised.

“The introduction of a windfall tax is a start, but as a stand-alone measure this means Scottish industry is carrying the weight of UK-wide interventions.

“The removal of the £20 Universal Credit uplift last year was a hammer blow to hard pressed families and the Chancellor’s failure to restore it and increase it to £25 only places a disproportionate burden on the shoulders of those who need help most. The statement was also worryingly silent on public-sector pay with no related consequential funding, when the lowest paid need urgent assurance in the face of rising inflation.

“The refusal to reverse the National Insurance increase implemented in April and temporarily suspend VAT on household energy bills will also cost families hundreds of pounds annually at a time when their budgets have never been more squeezed.

“The Scottish Government has already taken action to support people, communities and businesses as much as possible, with almost £770 million per year invested in cost of living support. We have increased eight Scottish benefits by 6%, closer to the rate of inflation, and introduced a range of family benefits not available elsewhere in the UK.”

Commenting on the government’s cost of living support package announced today (Thursday), TUC General Secretary Frances O’Grady said: “Unions have repeatedly called for an Emergency Budget to help families, and a windfall tax on energy companies.

“The Chancellor should have acted far sooner after his inadequate Spring Statement. His dither and delay has caused unnecessary hardship and worry for millions.

“While today’s intervention is badly needed, we should have never been here in the first place.

“Years of attacks on wages and universal credit have left many households on the brink.

“The government still doesn’t have a plan for giving families long-term financial security.

“With energy bills rising 23 times faster than wages we urgently need to get pay packets rising and to pay universal credit at a permanently higher rate – not just a one-off boost.

“That’s the best way to protect livelihoods and to support the economy.”

Scottish Government announces latest plans for children’s rights legislation

Plans to progress Scotland’s ground-breaking children’s rights legislation have been announced by Deputy First Minister John Swinney.

The UNCRC (Incorporation) (Scotland) Bill was backed unanimously by the Scottish Parliament in March 2021, but could not be implemented because of a legal challenge brought by the UK Government. In October, the Supreme Court ruled that certain parts of the Bill were outwith the legislative competence of the Scottish Parliament.

The Scottish Government has now set out how it will address this. Over the next few weeks, there will be targeted engagement with relevant organisations and children and young people on proposed changes to the Bill. These will then be brought before Parliament via the Reconsideration Stage.

The Deputy First Minister said: “The UNCRC Bill was passed by the Scottish Parliament to deliver the highest protection possible for children’s rights. The Supreme Court ruling was bitterly disappointing, but we have fully respected and carefully considered its implications.

“We sought support from the UK Government to make modest adjustments to the Scotland Act to address the issues with the devolution settlement that the Supreme Court ruling highlighted. Despite their public commitment to engage constructively, this was rejected by the Secretary of State for Scotland.

“As a result, we will remove UK Acts from the remedial provisions within the Bill, which is a dilution of the effect of the legislation, and we will consult with children and young people on the proposed changes.

“It is disappointing that this will not become law in the form which our Parliament agreed. However, we can now move forward with legislation to build a Scotland where respect for human rights anchors our society and the institutions which govern and deliver public services.”