Spring Statement: Chancellor vows to ‘stand by hard-working families’

  • Chancellor expected to unveil Spring Statement that builds a stronger, more secure economy for the United Kingdom.
  • Rishi Sunak will set out further plans to support people with the rising cost of living and pledge to continue to “stand by” hard-working families during the challenging times ahead.
  • He will say that freedom and democracy remain the best route to peace, prosperity, and happiness and that a strong economy is fundamental in enabling us to counter the threat Russia poses to our values.

The Chancellor will today deliver a Spring Statement that ‘builds a stronger, more secure economy for the United Kingdom’.

With people across the UK facing growing pressures exacerbated by the war in Ukraine, Rishi Sunak will pledge to continue to “stand by” hard-working families and outline further plans to help with the rising cost of living. 

Alongside Britain continuing its “unwavering” support to Ukraine, he will add that a stronger economy is vital in responding to the threat of President Putin and that freedom and democracy remain the best route to peace, prosperity, and happiness.

Delivering the Spring Statement, Chancellor Rishi Sunak is expected to say: “We will confront this challenge to our values not just in the arms and resources we send to Ukraine but in strengthening our economy here at home.

“So when I talk about security, yes – I mean responding to the war in Ukraine. But I also mean the security of a faster growing economy. 

“The security of more resilient public finances. And security for working families as we help with the cost of living.”

The Chancellor’s statement is also expected to set out how the government plans to create a new culture of enterprise, with the private sector training more, investing more, and innovating more.

The Spring Statement will build on UK government support worth around £21 billion this year and next to help families with the cost of living.

That includes the £9.1 billion Energy Bills Rebate, putting an average of £1,000 more per year into the pockets of working families via changes to Universal Credit and freezing fuel and alcohol duties to keep costs down.

The Government is also raising the National Living Wage to £9.50 per hour from April, meaning people working full time on the National Living Wage will see a £1,000 increase in their annual earnings.

And the Government’s Plan for Jobs is also helping people into work and giving them the skills they need to progress – the best approach to managing the cost of living in the long term.

Bold action needed to tackle cost of living

The UK Government must take bold and decisive action to help protect people from soaring living costs, according to Holyrood Finance Secretary Kate Forbes.

Speaking ahead of the Spring Statement, Ms Forbes said the Chancellor of the Exchequer must use every tool available to provide support through what is expected to be a turbulent period of economic uncertainty.

Finance Secretary Kate Forbes said: “This is not a time to be ducking the considerable challenges we face, and I expect the Chancellor to use the Spring Statement to outline significant actions to support households and businesses, considering that most of the relevant powers are reserved to the UK Government.

“The Scottish Government is doing all it can to help those most in need. We are uprating eight Scottish benefits by 6% from 1 April as well as doubling our Scottish Child Payment to £20 per week per eligible child. I call again on the UK Government to follow our lead and uprate social security benefits by 6%.”

The Scottish Government has called on the Chancellor to:

  • increase benefits at a higher rate, closer to inflation
  • implement business relief on National Insurance contributions
  • provide immediate funding to sectors directly impacted by the Russia/Ukraine conflict
  • remove/reduce VAT on household energy bills
  • take VAT off energy efficient and zero emissions heat equipment and products
  • provide powers to implement flexible working, to get more people into jobs
  • deliver two extra Cold Weather Payments – one immediately and another in winter 2022-23 when energy bills will have risen again.

Read the Finance Secretary’s letter in full here.

Commenting on today’s (Wednesday) inflation figures, which show CPI inflation rising to a 30-year high of 6.2% in February, TUC General Secretary Frances O’Grady said: “The Chancellor must respond to high inflation today with much greater help for families with soaring bills and a plan to get wages rising.

“Families need grants, not loans to help with soaring energy bills. These should be funded by a windfall tax on excess profits from gas and oil. Universal credit should get a boost to help families keep up with the rising cost of living.

“And we need a comprehensive plan to get wages rising, including new pay bargaining rights for workers and their unions.”

Scottish Government hails progress on tackling child poverty – but more to do

Almost £6 billion has been invested to support low income households across Scotland over the last three years.

More than a third of that total, around £2.18 billion, has directly benefitted children as the Scottish Government prepares to publish its Tackling Child Poverty Delivery Plan for 2022-2026.

On Thursday (24 March) Social Justice Secretary Shona Robison will update Parliament on the national mission to break the cycle of poverty for thousands of families.

The Delivery Plan for 2022-26 builds on the work of ‘Every Child, Every Chance’, published in 2018. It introduced a range of new supports through Social Security Scotland, including the Scottish Child Payment and Best Start Grants, and employability services such as Fair Start Scotland.

Ms Robison said: “In the face of UK government austerity, combined with the deeply damaging £20 cut to Universal Credit, our investment over the last four years to support low income families has had a significant impact. But there is still more we must do to deliver the transformational changes we all want to see.

“Our second Tackling Child Poverty Delivery Plan will be a plan for all of Scotland. All parts of society have a role to play in our national mission to end child poverty. This is a collective effort across society to deliver for our future generations and break the cycle of poverty once and for all.

“Our ambitious measures are already delivering considerable support to children and families compared with other parts of the UK – for example, through free childcare and employment support, maximising incomes and affordable housing and, of course, social security.

“We remain the only part of the UK to have five family benefits, including the Scottish Child Payment, which was designed to tackle child poverty head on. Combined with our three Best Start Grants and Best Start Foods, low income families receive up to £8,400 of financial support by the time their first child turns six.

“Our budgets may be fixed, powers limited, and the scale of the challenge as we emerge from the pandemic has increased. However, we are determined to do everything within our powers to give the children of Scotland the opportunities they deserve to succeed.”

The Child Poverty (Scotland) Act 2017 set four income-based child poverty targets to be met by 2030/31, with interim targets set for 2023/24. 

Businesses across Scotland urged to prepare for summer water scarcity

The Scottish Environment Protection Agency (SEPA) is working with businesses across Scotland to help them prepare for a potential lack of water this summer.

Today on World Water Day, it’s emerging parts of the country could struggle in the coming months with insufficient resources due to a particularly dry winter. New data reveals January this year was the seventh driest on record for the East coast. Groundwater levels are also still low despite a series of storms in February, and without average rainfall through spring and summer, there is a risk of water scarcity particularly in Angus.

Water scarcity is just one indicator of Scotland’s changing climate. With more extreme weather and a projected decrease in summer rainfall, many places could face pressure on water resources even if they have not experienced this before. As well as the ecological impacts – food and drink production, hydropower generation and other business activity reliant on a consistent water supply could also be affected.

Environment Minister Mairi McAllan said: “In recent times Scotland has experienced some of the driest conditions we have seen for many years, bringing water scarcity impacts for many businesses and households across the country.

“With climate change at the forefront of all our minds, the need to conserve water as one of our most precious natural resources is more crucial than ever.

“Indeed, the most recent report from the Climate Change Committee confirmed that drought will become more prevalent in years to come as summers in Scotland get drier and hotter. That’s why I urge everyone to use water wisely and to take advantage of the advice and guidance offered by SEPA and Scottish Water – it benefits all of us, is good for our economy and our planet.”

SEPA is responsible for the forecasting, monitoring, and reporting of the situation facing Scotland’s water resources and produces regular water scarcity reports between May and September.

However, due to the severity of impacts last year, reports were also published outside of this period. This work, along with wet weather research, will better equip Scottish communities and organisations to innovate, adapt and prepare for future increased impacts. 

Businesses also have a role to play in managing our water environment, and efficient use of resources can lead to economic and environmental benefits. SEPA helps organisations do this in sectors such as agriculture, aquaculture, hydropower, golf, and whisky production.

Girvan Early Growers, a co-operative of local farmers in Ayrshire, has already felt the pressures of water scarcity in previous years and works with SEPA in becoming more resilient.

Chairman of Girvan Early Growers, Andrew Young, said: “I have been a farmer for more than 40 years and last year was the driest I have seen in my lifetime. We simply can’t grow high quality potatoes and carrots here without access to water.

“By working closely with SEPA, we can plan where the best locations are to grow our crops. We can also be flexible and abstract water from different sources depending on where the pressures are.

“Simply having that awareness and a clear back-up plan for drier months, allows us to operate our business as effectively as possible.”

SEPA’s Head of Water and Planning, Nathan Critchlow-Watton, said: “It is vitally important that Scotland is prepared to deal with water scarcity now and in the future. Businesses should use the information available to them to make informed decisions about reducing their reliance on water and to plan for and manage water scarcity events.

“Water abstractors licenced by SEPA should have a plan to deal with the range of conditions they may experience. They should monitor their water usage and equipment to ensure they are operating at maximum efficiency and avoiding any unnecessary leakage. Businesses are also being encouraged to work together and plan abstractions accordingly to minimise any potential impacts.

“SEPA can provide advice and guidance on a series of straightforward steps that can be taken to reduce pressure on Scotland’s water environment. However, if businesses deliberately fail to follow the abstraction guidelines set out by SEPA this may result in enforcement action.”

Business can find out more information about water scarcity and how to prepare on SEPA’s website.

Kate Forbes: Urgent action needed to tackle cost of living

Scotland’s Finance Secretary writes to Treasury ahead of Spring Statement

People and businesses need urgent UK Government support to mitigate the rising cost of living, says Finance Secretary Kate Forbes.

In a letter to the Chancellor of the Exchequer Rishi Sunak ahead of the Spring Statement, Ms Forbes called on UK Ministers to match the 6% uprate on social security benefits which the Scottish Government is delivering on eight of the benefits it delivers, and for further payments to be made to low income households through the Cold Weather Payment

The letter to the UK Government also calls for:

  • more targeted funding to business sectors directly affected by the conflict in Ukraine
  • relief to business on National Insurance Contributions
  • the removal of VAT from energy efficient and zero emission heat equipment and products
  • greater powers for the Scottish Government to work with employers to implement flexible working
  • full replacement of EU funding lost to Scotland as a result of Brexit, as promised by the UK Government

The Scottish Government ‘stands ready’ to work with the UK Government, which holds the powers to tackle the most pressing issues, to put a package of support in place.

Ms Forbes said: “In Scotland we are doing all we can to ensure people, communities and businesses are given as much support as possible to deal with the rising cost of living and the potential economic implications of Russia’s illegal invasion of Ukraine.

“However, many of the powers required to really tackle these issues are reserved to the UK Government, which is why I am calling on the Chancellor to take much needed action in his Spring Statement.

“The Scottish Government is uprating eight Scottish benefits by 6% from 1 April as well as doubling our Scottish Child Payment from £10 per week per eligible child to £20. We are using our powers to help those who need us most in these difficult times and it is time for the UK Government to follow our lead and uprate social security benefits by 6%.

“I would also ask for further immediate support to be delivered through the Cold Weather Payment, with an additional payment now and another next winter when we know energy bills will have risen again.”

Read the letter in full here.

Scotland’s first Road Safety Week launched with safer roads pledge

Scotland’s first Road Safety Week (21st – 27th March 2022) – a new initiative from The Scottish Government and Transport Scotland – was launched today to encourage road users to take greater personal responsibility and work together to make Scotland’s roads safer.

In its inaugural year, Scotland’s Road Safety Week will urge organisations throughout Scotland to pledge their support on social media by posting the message – Working together to make Scotland’s roads safer. #ScotRoadSafetyWeek.

Minister for Transport Jenny Gilruth said: “The Scottish Government is absolutely committed to making Scotland’s roads safer for everyone, and our Road Safety Framework sets out a long-term goal where no-one is killed or seriously-injured on our roads by 2050.

“The launch of Scotland’s first Road Safety Week provides a platform for organisations to work together to improve safety on our roads and help achieve this ambitious goal.”

Organisations across Scotland – including Police Scotland, Scottish Fire and Rescue Service, CoSLA and Good Egg Safety will mark the week by hosting a series of road safety events, from child car seat checks to community action campaigns.

Chief Superintendent Louise Blakelock, Head of Road Policing, said: “This week will serve as an important reminder that safety on our roads is a shared responsibility. Police Scotland divisions across the country are getting behind this important new initiative by hosting road safety events with a focus on drink and drug driving, vulnerable road users and older drivers.”

Scotland’s Road Safety Week forms part of the Road Safety Framework to 2030, which sets out a vision for Scotland to have the best road safety performance in the world by 2030, and an ambitious long-term goal where no-one is killed or seriously-injured on our roads by 2050.

Michael McDonnell, Road Safety Scotland Director, said: “Scotland’s Road Safety Week is a great opportunity for organisations to work together and spark a national conversation about making our roads safer.

“Every road user has a part to play by keeping themselves and others safe on the roads. We’d like to encourage organisations across Scotland to get involved this week and join us in pledging their commitment to help make Scotland’s roads safer.”

The Framework has adopted the Safe System approach to road safety, with five pillars interacting to create this: Safe Road Use; Safe Vehicles; Safe Speeds; Safe Roads and Roadsides; and Post-crash Response.

For more details about Scotland’s Road Safety Week, visit:

 https://roadsafety.scot/topics/road-safety-week/

A Warm Scots Welcome

Message from First Minister to Ukrainians arriving in Scotland

A message of welcome from First Minister Nicola Sturgeon – available in Ukrainian and Russian, the two most widely spoken languages in Ukraine – is to be given to displaced Ukrainians arriving in Scotland.

The Scottish Government is working with a range of partners to offer practical help and assistance to Ukrainians, including with food, clothing, healthcare, language support and signposting to other services.

The full text in English and Ukrainian is below:

A welcome to Ukrainians arriving in Scotland, from First Minister Nicola Sturgeon.

On behalf of the Scottish Government – and the people of Scotland – I warmly welcome you, and your family and friends, to Scotland.

I want you to know that you are now safe.

Please know that you will be treated with care, dignity and respect, for however long you stay.

We have been shocked by what has happened to the people of Ukraine. We want to help, and to provide you with the support and the services that you need.

As we open our doors to you, we also open our hearts. We offer not just a refuge, but a warm Scottish welcome and a nation of helping hands to you and your loved ones.

Welcome to Scotland, our home – and, for as long as you need, yours too.

Вітання від першого міністра Ніколи Стерджен для українців, які прибувають до Шотландії.

Від імені уряду Шотландії – та народу Шотландії – я щиро вітаю вас, вашу сім’ю та друзів у Шотландії. Я хочу запевнити вас, що тепер ви у безпеці.

Будь ласка, знайте, що до вас будуть ставитися з турботою, гідністю та повагою, незалежно від терміну вашого перебування.

Ми шоковані тим, що сталося з народом України. Ми хочемо допомогти і надати вам підтримку та послуги, які вам потрібні.

Відчиняючи для вас двері, ми також відкриваємо наші серця. Ми пропонуємо вам і вашим близьким не просто притулок, а теплий прийом і допомогу від усіх наших громадян.

Ласкаво просимо до Шотландії – нашого дому, і вашого також, на той термін, який вам потрібен.

Get involved in cleaning up Scotland: Make Litter History

Environmental charity Keep Scotland Beautiful, Historic Environment Scotland and the Scottish Government’s Circular Economy Minister Lorna Slater are calling for everyone to make litter history – by joining a Spring Clean challenge from 21 March – 21 April.

Lorna Slater joined the two charities at a launch event yesterday (Friday, 18 March), at the iconic Blackness Castle in Linlithgow, kicking off four weeks of litter-busting action to help clean up Scotland.

It’s everyone’s responsibility to reduce litter and help protect our neighbourhoods and heritage. But Keep Scotland Beautiful’s research has revealed that 88% of Scots agree that litter is a problem across Scotland – including at some of Scotland’s most beautiful sites. And 70% are concerned about litter in their area.

The environmental charity has been working with Historic Environment Scotland to explore ways to reduce litter at visitor attractions and areas of national significance.

If you feel frustrated about litter in your community or the places you visit, you can do something about it. Spring Clean Scotland is the perfect opportunity to make a difference by picking up litter on your local beach, streets, parks and beyond. Get involved and help make the places we care about cleaner and safer for people and animals.

Every action, however small, makes a difference. Just half an hour of picking up litter and disposing of it safely can help an area look cleaner and feel safer, and evidence shows it also prevents more litter being dropped.

Why not organise a litter pick with friends, family, workmates or your wider community? Or find one to join in with on Keep Scotland Beautiful’s Clean Up Scotland map.

We know young people feel strongly about caring for the environment and want to do something about the harmful effects of litter.

Your school can get involved too. As part of Spring Clean, there is a Live Lesson open to all schools across the UK.

Circular Economy Minister Lorna Slater said, “No one should have their visit to one of Scotland’s heritage sites ruined by litter and mess. To help make sure our historic locations are in good condition for others, please put your rubbish in the bin, recycling it where possible.

“We are consulting on proposals to help rid Scotland of the problem of litter and flytipping. I would encourage everyone to have their say and to take part in a Spring Clean near you.”

Chief Executive of Keep Scotland Beautiful, Barry Fisher, said: “Across Scotland we have seen a steady increase in the amount of litter over the past decade. While this is a real challenge, we are heartened by the incredible work of litter picking heroes up and down the country.

“Our communities already play a vital role in taking action to tackle litter. Across Scotland we have seen lots of people giving up their time to clean up their local areas despite the challenges of the last two years.

“We are delighted to have launched our challenge with Historic Environment Scotland at a beautiful part of our heritage, Blackness Castle, to help highlight this issue. We would love as many people as possible to join in, make litter a thing of the past, and give Scotland a spring clean this March and April.

“For those that wish to take further action, the Scottish Government is currently consulting on a revised National Litter and Flytipping Strategy and you can still respond until the end of March and have #YourSayOnLitter.”

Alison Turnbull, Director of External Relations and Partnerships at Historic Environment Scotland, said, “We’re delighted to help launch this year’s Spring Clean at Blackness Castle. Litter can have a big negative impact on historic sites such as this, limiting access and enjoyment for visitors, as well as posing issues of health and safety.

“However, we believe our historic environment is also part of the solution to tackling litter. We want our historic sites to inspire positive behaviour change, connecting communities with their local area and restoring pride in our local environments.

“We hope people across Scotland will be inspired to get involved and help us make litter history.”

Inspired to take positive action? Learn more and sign up to join here: 

www.keepscotlandbeautiful.org/springclean.

Warm Scots Welcome: Scheme opens for displaced Ukrainians

Scotland’s offer to provide refuge and sanctuary to displaced Ukrainians, as part of the UK Government’s Homes for Ukraine scheme, is now open.

Accessible through the UK Government’s online portal, a distinct route to accommodation, support and care in Scotland – the Warm Scots Welcome – is now available to people displaced by the invasion of Ukraine.

Acting as a ‘super sponsor’, the Scottish Government’s route removes the need for applicants to be matched to a named individual before they are cleared to travel to the UK through the visa system.

The Scottish programme is available as an option to Ukrainians when applying for a visa under the Ukraine Sponsorship Scheme, by opting for the organisational sponsor route, and selecting “The Scottish Government” from the drop-down box in response to the question “Which organisation is sponsoring you?”

Scottish people willing to volunteer and provide homes for Ukrainians arriving through the sponsorship scheme are encouraged to sign up at the Homes for Ukraine portal.

Their details will be shared with Scottish Government so that appropriate matches can be arranged while immediate support is provided to those arriving.

First Minister Nicola Sturgeon said: “Our distinct offer for a warm Scottish welcome to the displaced people of Ukraine is now open, as part of the UK’s Homes for Ukraine.

“We intend to fully harness the thousands of individual offers from people in Scotland willing to provide Ukrainians with a home. And I encourage those who want to help to express an interest on the Homes for Ukraine portal.

“We still believe visas should have been waived for those fleeing the appalling and illegal invasion of Ukraine by Russia, but we established this Scottish scheme, embedded within the UK system, to provide help right now to those who need it.

“Our programme will allow significant numbers of people fleeing Ukraine to come to Scotland immediately, and will be able to come to Scotland for safety and sanctuary first.

“To those Ukrainians arriving in our country, I can say we will treat you with compassion, dignity and respect, and I extend a warm welcome to Scotland, our home – and, for as long as you need it, yours too.”

It is also possible for Ukrainian displaced people to come to Scotland by the other two routes: the family visa route and the individual sponsor route.

The Scottish Government is working with partners – local councils, the Scottish Refugee Council, the NHS, Disclosure Scotland, NGOs, faith groups and others – to complete safeguarding checks, put in place wider health, education, practical and befriending support, and arrange longer term accommodation.

The process for Ukrainian applicants to apply is this:

  • Go to https://www.gov.uk/guidance/apply-for-a-visa-under-the-ukraine-sponsorship-scheme#apply
  • Read the guidance there, then click “apply online”
  • After answering questions about whether you have a Ukrainian international passport, you will reach a page headed “Apply for the Ukraine Scheme”
  • Read the guidance there, then click “Apply now”
  • On the next screen, choose “Ukraine sponsorship scheme”, then “I am being sponsored by an organisation”
  • Click “Save and continue”
  • On the next page, headed “Sponsoring Organisation”, choose “The Scottish Government” from the dropdown box
  • Continue with your application.

Scottish Government sets up food security and supply taskforce

A short-life taskforce has been established to monitor, identify and respond to any potential disruption to food security and supply resulting from the impact of the war in Ukraine.

The Scottish Government has set up the Food Security and Supply Taskforce jointly with industry. It will be co-chaired by Cabinet Secretary for Rural Affairs and Islands, Mairi Gougeon and Chief Executive of Scotland Food & Drink, James Withers.

Drawing on technical and scientific knowledge and expertise from across a range of sectors, agencies and organisations, the taskforce will include key food and drink industry leaders and will meet frequently over the coming weeks.

Ms Gougeon said: “The truly terrible events in Ukraine and the resulting western sanctions on Russia are, rightly, changing the way the world does business. Our immediate focus as a Government continues to be on doing everything we can within our power to support the people of Ukraine and address their humanitarian need.

“We need to take action now to better understand the potential impact of disruption to the food supply chain in Scotland, how industry and government might work together to manage and mitigate those, and be alert to the resulting impact on the cost of food products.

“Over the last two years, our food and drink sectors have experienced a series of shocks in terms of disrupted supply chains and new barriers to trade through COVID and Brexit.  It is clear that the unfolding tragedy in Ukraine will have further impacts – not least through the hugely challenging increases in energy bills which affect households and everyone in the food industry, from farmers to hauliers, processors to retailers.

“That is why the Scottish Government has convened a taskforce jointly with industry to monitor, identify and respond to these issues, as well as recommending actions that can be taken by business, the Scottish and UK Governments to mitigate the challenges.

“Crucially, the taskforce will also consider how we can continue to get products and food supplies to Ukraine we must not forget that there is a population still there that will desperately need our help and support in the weeks ahead.

“I welcome the involvement of food and drink industry leaders across Scotland and look forward to working together to strengthen food security and supply.”

James Withers said: “The establishment of this taskforce is a welcome and an important step. 

“The immediate focus from the war in Ukraine is on the humanitarian fallout.  However, it is also critical that we assess urgently the potential impact of the conflict on national food security and supply.

“From wheat and barley to sunflower oil, Ukraine and the surrounding region is a major player in terms of global food supply and agricultural production.

“Immediate supplies of food and animal feed are secure, even if prices are rising sharply. However, whilst much still remains unknown in terms of the impact of the war on global supply chains, there is clearly a shock to the system coming. 

“We must understand its implications for Scotland’s farmers, food manufacturers and consumers and consider any short or medium-term action we can take to mitigate their impact.”

Covid business support: Missing millions?

A detailed analysis of how Covid-19 business support funding was distributed during the pandemic is not possible due to gaps in data, according to spending watchdog Audit Scotland.

The Scottish Government provided about £4.4 billion of grants and non-domestic rate reliefs between March 2020 and October 2021, mostly paid out to businesses by councils. The government announced a further £375 million of support in December 2021 following the emergence of the Omicron variant.

Steps were taken to improve the management of funding during the pandemic.

But there was not enough focus on gathering detailed data on how money was distributed and how quickly applicants received funding.

This means:

  • The Scottish Government does not have an analysis of the total amounts paid out from the more general schemes to different economic sectors
  • For sector specific funding administered by national organisations such as Scottish Enterprise, around 20 per cent of payments cannot currently be matched to council areas
  • Similarly, information to enable wider analysis of how funding supported specific groups, such as the female owned businesses disproportionately hit by Covid-19, is not available from Scottish Government centrally held data.

 In late 2021, the Scottish Government completed retrospective impact assessments to consider how business support funding addressed inequalities. A retrospective fraud review of funding that councils administered was also carried out.

The government is currently undertaking a large data cleansing exercise to ensure that the datasets for individual funds, including those administered by councils, are complete.

Stephen Boyle, Auditor General for Scotland, said: “These business support schemes were administered at pace in exceptional circumstances. But knowing where the money went matters.

“To get future policy development and delivery right, it will be important for the Scottish Government to fully understand how funding was used to support specific businesses and groups over the last two years of the pandemic.”

William Moyes, Chair of the Accounts Commission, said: “Councils’ fraud arrangements are generally robust, but they were heavily relied upon to ensure businesses were eligible for funding during the pandemic.

“Councils will need to continue to work closely with the Scottish Government to ensure a better picture emerges of how money was distributed.”

Responding to the Audit Scotland report, Economy Secretary Kate Forbes said: “I am pleased that both Audit Scotland and the Accounts Commission have recognised how quickly the Scottish Government was able to establish a wide ranging business support package in order to help safeguard thousands of businesses and jobs.

“This includes providing direct support to over 4,000 businesses and over 5,000 self-employed people who were facing hardship but ineligible for UK Government funding support.

“I am equally pleased this report reflects the unique and challenging context in which new support packages had to be established, and that despite the speed and scale of our response, we were able to work closely with industry, our enterprise agencies and local authorities.

“This helped to ensure the delivery of the business support funding was a shared endeavour and minimised risk and fraud. Without the efforts of our partners, we wouldn’t have been able to deliver this lifeline support at the scale and pace necessary and I thank them for working so closely with us.

“Every decision the Scottish Government has taken has centred around ensuring businesses got the support they needed when they needed it – resulting in over £4.5 billion being allocated to businesses across the country, including around £1.6 billion in rates relief – which is more generous than the other UK administrations so far.

“We will now carefully consider the findings of this report and of course any lessons will be learned, but fundamentally this report shows the decisions we took ensured lifeline support reached key businesses promptly and our economy continued to grow by 7.1% despite the necessary public health restrictions.”