Scotland Act Order approval will increases borrowing resource to fund vital public services including schools, hospitals and key infrastructure to boost growth
More money to fund vital public services will be at the disposal of the Scottish Government after a motion passed in the House of Commons yesterday that will see their borrowing powers increased in line with inflation.
Scotland Office Minister John Lamont secured the approval of a Scotland Act Order that increases the Scottish Government’s resource borrowing limit from £1.75 billion to £1.78 billion and the capital borrowing limit from £3 billion to £3.05 billion in 2024-25, enabling them to invest further in schools, hospitals, roads and other key infrastructure that will help to grow the economy and create better paid jobs and opportunity in Scotland.
The move upholds the UK Government’s commitment to the new Fiscal Framework agreed in August 2023 between the UK and Scottish governments which included annual uprating and gives the Scottish Government certainty over borrowing limits for the 2024/25 financial year.
UK Government Minister for Scotland John Lamont said: “We have listened to calls from the Scottish Government for greater certainty and flexibility to help them manage their budget. This is a great example of devolution in action and how we can deliver for people of Scotland when our two governments work together.
“The wider Fiscal Framework deal – worth billions of pounds to Scotland over the coming years – builds upon work to support economic growth and provide more high-skill jobs, investment and future opportunities for local people, such as through Investment Zones and Freeports in Scotland.
“The UK Government has made great strides in growing the economy and by halving inflation sooner than forecast. With our direct investment in Scotland now standing at more than £3billion, we are creating opportunities right across the UK.”
In addition to the changes made to the cumulative borrowing limits through today’s Order, the Fiscal Framework agreement also saw the permanent doubling of the resource borrowing annual limit from £300 million to £600 million.
Limits on how much can be withdrawn from the Scotland Reserve to spend in future years was also removed. This boosts spending through borrowing by £90 million in 2024/25. All future limits will increase in line with inflation.
The new arrangements compare with the previous Fiscal Framework, where the Scottish Government’s capital borrowing limit was £450 million per year within a £3 billion cap, as well as receiving a Barnett-based share of UK Government borrowing. Going forward these amounts now rise with inflation instead, which supports additional investment across Scotland and lays the foundations for economic growth.
The funding arrangements for tax continue, with the Scottish Government continuing to keep every penny of devolved Scottish taxes while also receiving an additional contribution from the rest of the UK.
Background:
Scotland act orders in the UK Parliament fully support devolution by facilitating amendments to be made to UK legislation affecting Scotland, to enable Scottish legislation to have full effect, or additional powers to be transferred to Scottish Government ministers.
On average, seven Scotland Act Orders are made each year and more than 250 have been passed since the start of devolution.
The target date for the order to come into force is 17 June 2024, subject to the date of signing.
First Minister John Swinney is to set out the priorities that will underpin the work of his government today (Wednesday, 22 May), focused on a central mission to eradicate child poverty.
In a statement to Parliament, the First Minister is expected to commit the Scottish Government to eradicate child poverty and to work with business and industry to grow the economy, invest in net zero and deliver stronger public services.
The First Minister will also make clear the need for bold and collaborative action across the Parliament, focused on the priorities of people in Scotland.
Ahead of the statement, the First Minister will meet pupils at a new breakfast club in Kirkcaldy in Fife. There he will see the impact of innovative school-age childcare services in contributing to the eradication of child poverty and growing the economy – by helping parents and carers access vital childcare to help find and sustain good jobs.
The First Minister said: “Eradicating child poverty will be the single most important objective of my government – and work in other priority areas will support and drive that mission.
“I intend to build on our record of delivery. Since 2007, economic growth, per head, and productivity have been stronger in Scotland than the rest of the UK, Scotland’s core A&E units are the best performing in the UK, and measures such as our Scottish Child Payment are estimated to keep 100,000 children in Scotland out of relative poverty this year.
“I am acutely aware of the economic and fiscal realities that we face and I want to take forward measures that will help people and their families to get on in life: to enable the people of Scotland to live happier, healthier lives.
“One of the benefits of long service in politics is having witnessed the Scottish Parliament when it is functioning at its very best. That happens when parties work constructively together.
“My government will do everything in our power – working with Members from across parties – to make child poverty a thing of the past.”
The First Minister has set out his ambitions for Scotland’s economy during a speech in Glasgow.
Speaking at the Barclays Campus in Glasgow’s financial district on Friday, First Minister John Swinney outlined his government’s approach to economic policy making.
Mr Swinney said poor decision-making at UK level, typified by Brexit and immigration policy, means the Scottish Government must work even harder with its limited powers to help businesses and workers thrive.
The First Minister stated his determination to bring hope and optimism and said he will “go all out” to encourage economic investment.
John Swinney said policy making will be governed by:
Moderate left of centre, progressive values
A partnership approach with unions and business
A focus on actions
Problem solving based on evidence
The First Minister will highlight significant announcements in Scotland’s renewable energy sector this week and actions the Scottish Government is taking to boost high growth businesses.
The First Minister said: “My goal is to help people live happier and healthier lives with higher living standards and to help businesses boost profitability.
“The evidence shows that independent countries that are comparable to Scotland are wealthier and fairer than the UK.
“Scotland has the talents and resources to match that performance with independence but in the here and now and in the face of Brexit we must work even harder to help Scotland’s economy with the powers we have.
“I will go all out to encourage investment in Scotland and I will ensure people know my government is a firmly pro-business administration.
“A partnership with trade unions and business will be at the core of my approach and through that approach and given our resources, not least incredible renewable energy, we should look to the future with hope and optimism.”
ANALYSIS: FRASER of ALLANDER INSTITUTE
New FM – new approach on the economy?
Today, the new First Minister John Swinney set out his broad economic aspirations for Scotland (write MAIRI SPOWAGE and EMMA CONGREVE).
In a speech at the impressive Barclays Glasgow Campus (which he said embodied the ambition he wished to have for the economy), he set out the vision he had for Scotland to have a strong, successful, innovative and dynamic economy.
For people who were after specific policy actions, the speech was light on detail, but it was not perhaps fair to expect the FM to outline these sorts of specifics in a speech like this.
The FM also had a difficult line to tread, given (as he himself pointed out) that he has been a Minister in government for 16 of the last 17 years and wanted to talk about successes in a record he is “immensely proud of”. At the same time, he needed to recognise that there were failings in the previous administration that had led to him being in office as First Minister.
Economic Growth is front and centre
The First Minister had said as he took office that eradicating child poverty was his key policy objective. This morning he was keen to set out that there is no conflict between eradicating child poverty and boosting economic growth – rather, they go hand in hand. He set out that boosting the economy will create opportunities for people and raise living standards and that reducing poverty raises spending power and boosts productivity. This is to a large degree true, but there will at times be trade-offs that will require one to be prioritised over the other.
Given the key stakeholders from businesses and business organisations in the room for his speech today, he was very keen to set out that his government was going to work collaboratively with businesses and other organisations to design and implement policies to strengthen the economy. Even more broadly, the FM said that he wished to bring more consensus building back into Scottish politics to try to achieve outcomes – to “build up, not tear down” as he put it.
There was a clear “Scotland is open for business” from the FM today. Supporting more investment in Scotland (particularly related to the Energy Transition and Housing) is clearly a priority for this new administration. This featured heavily in this speech and has been supported by some of the policy announcements made earlier this week.
We will do, rather than write strategy documents
A widely welcomed aspect of the speech is likely to be the FM’s acknowledgment that his government could probably do with carrying out “more concrete actions and fewer strategy documents”.
We have been on record a number of times as saying that the Scottish Government produces too many and too weighty strategy documents. So this is a crowd pleaser to a room of people who are likely to want to see action rather than just warm words and have seen endless strategies come and go.
However, it is important to remember what the problem sometimes was with these documents. Sometimes, in the case of recent economic strategy documents, the problem is that they aren’t really strategies – if they set out high-level principles that no one can disagree with, but don’t provide a meaningful framework for prioritisation and dealing with trade-offs, then they aren’t particularly useful.
In other cases, even where strategies are set, they can often gather dust on a shelf rather than meaningfully drive activity in government.
All of this from the FM is likely to be broadly welcomed – it’s an easy sell to say there will be less bureaucracy. But let’s not forget that we still need a clear economic strategy from the FM and the DFM – and that a strategy is not a strategy unless it rules some things out and recognises trade-offs and carries through into day-to-day activity. This clarity and policy stability is what is likely to be required to inspire the confidence in investors that this new administration would like to see.
Looking forward, not back
Many of the questions from journalists in the room today were designed to get the FM’s views on what went wrong with economic policy under the previous leadership, In addition, he was asked what his government was likely to do on policies like rent controls, short term lets legislation, and tax increases (specifically income tax) that have been put in place at the past budgets. Essentially, people were keen to hear what, in these specific areas, might change under a John Swinney government.
The FM said clearly that he was “looking forward, not back” in response to the question about what went wrong under Humza Yousaf.
With regards to specific policies where regulation was impacting businesses, he said his Cabinet colleagues were looking at lots of areas of policy and that more details on specific policies would be following in the weeks and months to come.
On tax, he was more forthcoming – acknowledging that the higher tax rates on above-median earners in Scotland are an important component of raising revenue in straitened fiscal times, but also saying that “we can’t keep raising taxes”. It will be interesting to see how this approach to tax is reflected in the Government’s Draft Tax Strategy, which is due alongside the Medium Term Financial Strategy (date currently tbc). That is if these two documents survive the cull of strategies …
Evidence-based approaches
The FM today said a number of times that the government he leads will be more practical and will be driven by the evidence of “what works”. We are very supportive of this, of course, and hope it signals a shift of more meaningful appraisal and assessment of policy options within the Scottish Government, with the associated investment in evaluation.
In doing this, unintended consequences, whether economic or otherwise, are more likely to be identified and can be proactively mitigated, and/or it can allow the government to change course at an earlier stage.
In addition, progress and continuous improvement can only happen in a culture of meaningful evaluation and being prepared to learn from what worked and what didn’t work.
For example, how well has the policy on rent freezes and caps worked to date? It would initially appear from rental costs that it has had the opposite effect on rents than the government presumably desired, and it would also appear to have had an impact on investor confidence in the sector. Given the FM’s focus on housing in his speech today, and his commitment to be evidence-based, it will be interesting to see how this policy area progresses.
Is this a meaningful shift in approach?
With his speech today, that is certainly what the FM is trying to convey. He was saying many of the right things to hearten those who want to see the government focus on economic growth.
However, the proof will be in the policy action that is actually taken. So, let’s wait for these details in the weeks to come.
A fund to help community groups across Scotland set up renewable energy generation projects has opened for applications.
The £1.5 million Community Energy Generation Growth Fund will support local communities installing wind turbines and solar panels or developing other types of renewable energy generation, such as hydro, to meet local needs.
Community groups will also be able to earn money from their projects by, for example, allowing them to sell excess energy generated.
The fund forms part of the Scottish Government’s Community and Renewable Energy Scheme (CARES), which, to date, has awarded more than £65 million in funding to over 900 renewable energy projects across the country.
The pilot scheme runs until March 2025 and will inform longer-term support for community-owned energy generation projects through CARES.
Net Zero Secretary Màiri McAllan said: “Scotland is fast becoming a renewable energy powerhouse, with enormous benefits for our people, economy and environment.
“Scotland’s communities must be at the heart of this journey. I am determined to ensure they can lead and benefit from this era defining transition.
“This fund will support the creation of locally owned energy projects which can reduce energy costs, generate revenue and help drive Scotland’s transition to net zero.”
Chris Morris manager at fund administrator, Local Energy Scotland said: “We are excited to support this fund and we know that there are communities across Scotland who are developing renewable energy projects who can accelerate their projects with this funding.
“This fund can help communities to realise their ambitions and Local Energy Scotland can help identify the best opportunities and prioritise next steps.”
Let’s Do Net Zero: Community Buildings Fund – which provides a rolling programme of support to communities, charities, and faith organisations to decarbonise their buildings and reduce energy bills.
Community Heat Development Programme – which works with community organisations and groups of householders to help develop ideas for locally generated, low and zero carbon heat projects.
When designing our disability benefits, Social Security Scotland collaborated with disabled people and their families to create a better and more compassionate system, putting dignity, fairness and respect at its heart.
Child Disability Payment was launched in November 2021. It helps families cover the extra costs of looking after a child or young person who is disabled, who has a long-term health condition or who is terminally ill. Importantly, it isn’t means tested.
Since its introduction, over 80,500 children and young people have received the payment, with more than £621 million being paid out.
Shirley-Anne Somerville, the Cabinet Secretary for Social Justice, visited Carrongrange High School – Falkirk Council’s secondary school for pupils with severe and complex additional support needs – on 1 May.
The school’s motto is, ‘Carrongrange – Where you can be all you can be’.
We spoke to children and their families and learned what impact Child Disability Payment has on the lives of pupils who receive it and how it is helping them to live full and independent lives.
Dughall Boyne’s daughter, Rosselyn, has bilateral coloboma, a condition which prevented her eyes from developing properly. She receives Child Disability Payment.
Dughall, father of Rosselyn
According to Dughall: “Child Disability Payment has been very important for Rosselyn.
“Everything costs more when you have a disability. The payments have allowed us to find after-school activities for Rosselyn which have helped develop her independence. She likes horse-riding but riding lessons for the disabled cost a lot more, because you need three people around the horse.
“Rosselyn has now moved on to Adult Disability Payment and the transfer has been very smooth. We were told at regular intervals what was happening with things like setting up the named contact.
“There were no big forms to fill in and it was all online. We just had to tick the box saying that there had been no change in Rosselyn’s condition. Previously, with the DWP, there was a 13-page form to complete. It’s certainly helped to take a couple of hours off the process and it’s been well received by parents throughout the school.”
Catherine and her son Louis
Catherine Sneddon’s son, Louis, also goes to Carrongrange. She echoed Dughall’s words about Social Security Scotland’s human rights approach to delivering disability benefits.
“Louis has been on Disability Living Allowance since he was diagnosed in 2013. Back then I didn’t know if he’d be able to claim and it was a constant battle with the DWP.
“It’s only recently that he’s transferred over to Child Disability Payment. It was much more plain sailing than I anticipated. I expected a fight and what I got was a questionnaire through the post. The level of care he gets has been the same for three years so I ticked the box saying, ‘He’s stable.’ And that was it.
“With the DWP I would have had to get a letter from his neurologist to prove he still needed Disability Living Allowance for children. For them your child is what they see on the form. They don’t know how hard it is to care for a child with a disability at home, at school and in the community.
“Social Security Scotland is so different.”
Janine Proudlock, Carrongrange’s headteacher, described exactly how Child Disability Payment helps pupils be all they can be: “For me the Scottish Child Disability Payment supports families to ensure they have the right resources, at the right to time to do the right work to allow the whole family to flourish.
“Whether it’s caring support or specialised resources to meet their child’s needs, this is an essential fund to improve the lives of young people and their families.”
People can find out more about Child Disability Payment and apply by visiting mygov.scot/childdisabilitypayment or by calling Social Security Scotland free on 0800 182 2222.
New statistics show increase in uptake of appointments in Scotland
The number of women being tested for breast cancer is at its highest ever level in Scotland.
More than three in four women (75.9%) took up their screening invitations over the three-year period 2020 to 2023, Scottish breast screening programme statisticsindicate.
This is an increase on the previous three-year period (2019-22) when uptake was 74.5% and pre-pandemic (2017-20) when uptake was 72.2%.
The figures also show that all NHS boards individually have met the acceptable uptake standard of 70% for a second year in a row.
Women’s Health Minister Jenni Minto said: “I am pleased that more women are attending breast screening appointments and that boards have individually met their target for a second year in a row.
“However, there is more work to be done to reach the achievable target of 80% and to encourage people from more deprived areas to attend their appointments.
“We will continue to work with health boards to encourage more women to participate in breast screening and address any barriers they may face in doing so.”
Breast screening is offered to women aged 50 to 70 approximately every 36 months. This is in line with the recommendation from the UK National Screening Committee. Screening was paused between March and August 2020 during the COVID-19 pandemic.
The programme continues to offer appointments at six breast screening centres across Scotland, as well as the mobile screening units which allow women in more remote areas to access screening more easily.
Bill to exonerate wrongly convicted sub-postmasters
Sub-postmasters wrongly convicted as a result of the faulty Horizon IT system will automatically be exonerated under proposed legislation introduced to the Scottish Parliament today.
Those whose convictions are quashed under the Post Office (Horizon System) Offences (Scotland) Bill will then be able to access the UK Government financial redress scheme.
The Bill’s passage through the Scottish Parliament will be expedited to allow justice and redress to be delivered to victims as swiftly as possible in line with the UK Bill, which was not extended to cover sub-postmasters in Scotland.
Justice Secretary Angela Constance said: “Innocent sub-postmasters had their lives ruined by being wrongly convicted of offences of dishonesty on the evidence of the faulty Post Office Horizon system.
“The quickest, easiest route to overturn these miscarriages of justice would have been for the UK Government to extend their Post Office (Horizon System) Offences Bill to cover sub-postmasters in Scotland.
“However, our repeated requests for this were refused. Our Bill, therefore, mirrors that of UK legislation to ensure parity for affected sub-postmasters in Scotland with those elsewhere in the UK and to ensure access to the UK Government’s compensation scheme.
“The scale of the scandal and the length of time that the victims have waited for justice means we are taking an unprecedented step of introducing legislation to right this terrible wrong and asking Parliament for it to be processed as an emergency Bill.
“The Scottish Government will not do anything to jeopardise equality and parity for victims, so the final stage of the Bill cannot be considered in the Scottish Parliament until after the UK legislation has been passed. This will ensure that MSPs can take account of any amendments made to the UK Bill.”
If passed, the Post Office (Horizon System) Offences (Scotland) Bill will mean relevant convictions are automatically quashed on the day the legislation comes into force and those exonerated will then be able to access the UK Government financial redress scheme, in line with its requirements.
The legislation will exonerate convicted sub-postmasters where the following criteria are met:
the conviction was for embezzlement, fraud, theft, uttering or an ancillary offence committed between 23 September 1996 and 31 December 2018
the person was carrying on a Post Office business, or working in a Post Office for the purpose of a Post Office business
the conviction was in connection with carrying on, or working for the purpose of the Post Office business
the Horizon system was being used for the purposes of the Post Office business in the relevant Post Office
the conviction has not been considered by the High Court in connection with an appeal.
Once a Scottish Government Bill is introduced, responsibility for the scrutiny process, including timescales, rests with the Parliament. The Stage 1 debate and vote on the general principles of the Bill is expected to take place in the Scottish Parliament on 21 May; Stage 2 amendments will be considered on 22 May.
Cabinet Secretary for Transport Fiona Hyslop joined Edinburgh’s Transport and Environment Convener, Councillor Scott Arthur yesterday to launch 72 new electric charging bays installed by the Council.
Transport Scotland has provided the Council with funding for the new bays to be used by the local authority’s current car club provider, Enterprise Car Club. The first phase of 20 chargers (40 charging bays) has been installed with the rest due to be rolled out by the end of this year allowing Enterprise Car Club to provide in Edinburgh, their biggest electric car club fleet for a single local borough or council in the UK.
As well as benefiting existing members, the new car club chargers and electric vehicles provide opportunities for new users to try out and use electric vehicles without needing to own their own vehicle. This offers significant cost savings to users, as well as helping to improve congestion and air quality within Edinburgh, with car club vehicles compliant within the Low Emission Zone which will be enforced from June 2024.
The Council has delivered over 100 electric vehicle chargers since 2022 with funding from Transport Scotland and the Office for Zero Emission Vehicles. This roll-out is designed to encourage and support the take-up of cleaner, low emission electric vehicles.
Councillor Scott Arthur, Transport and Environment Convener, said: “It’s great to see that we have extended the network of electric vehicle chargers across Edinburgh to include car club users in the city.
“Residents now have access to this modernised, cleaner and even more environmentally friendly form of cost-effective electric mobility. Motor transport contributes significantly to carbon emissions, and the switch to more sustainable transport is essential to achieving the city’s Net Zero target.
“The new chargers and vehicles also align with our City Mobility Plan to improve our transport system to make it cleaner and more sustainable, and create safe, attractive, and healthy streets and spaces for people to walk, wheel, cycle in and enjoy.”
Cabinet Secretary for Transport Fiona Hyslop said: “I’m pleased that Scottish Government funding continues to support real alternatives to car ownership for people and communities.
“By supporting EV car clubs, people can experience the benefits of modern zero emission vehicles at a fraction of the cost required to purchase or lease their own vehicle.
“This helps those who only need a car occasionally, which is valuable in terms of encouraging a more sustainable transport network and reducing overall car use – improving air quality and road safety, all while reducing emissions and congestion.”
FM John Swinney chairs Cabinet before visits focused on jobs, NHS and transport
First Minister John Swinney will chair his first Cabinet meeting at Bute House, Edinburgh, this morning, ahead of a series of visits in the afternoon.
Mr Swinney was officially sworn in as Scotland’s seventh First Minister and appointed his Cabinet on Wednesday.
Later today he will meet health staff at St John’s Hospital, Livingston, see near completed works on the Levenmouth Rail Link in Fife, and visit IGS, a highly successful international vertical farm company in Dundee.
The First Minister said: “Today, my colleagues and I embark on a new chapter as we collectively work to build a better, brighter future for the people of Scotland.
“It is my greatest honour to lead us forward on that journey – one that will drive economic growth, tackle the climate crisis and eradicate the scourge of child poverty in our country once and for all.
“I know our health service is operating under sustained pressure and I am absolutely committed to working with health boards to improve standards – starting with our recent £30 million investment to drive down waiting times.
“We will also build on our investment and track record on major infrastructure projects.
“I’m pleased to also be able to visit one example of that record – the Levenmouth Rail Link, a line which will reconnect local communities for the first time in 50 years, and make a real contribution to the Government’s net-zero transport ambitions.
“And I pledge that I will stand with Scotland’s businesses, large and small, and do whatever I can to help them to grow, innovate, and boost our economy for the benefit of those who live here.”
First Minister John Swinney has completed the appointment of his ministerial team. Consisting of 11 Cabinet Secretaries, including the First Minister, the Scottish Cabinet will be supported by 14 Ministers.
This reduces the size of the Scottish Government by four since the start of the year.
Ivan McKee has returned to Government as Minister for Public Finance. Minister for Parliamentary Business George Adam, Minister for Equalities, Migration and Refugees Emma Roddick, and Minister for Local Government Empowerment & Planning Joe FitzPatrick have stepped down from their previous roles.
First Minister John Swinney
Minister for Parliamentary Business Jamie Hepburn
Deputy First Minister and Cabinet Secretary for Economy and Gaelic Kate Forbes
Minister for Business Richard Lochhead
Minister for Employment and Investment Tom Arthur
Cabinet Secretary for Finance and Local Government Shona Robison
Minister for Public Finance Ivan McKee
Cabinet Secretary for Education and Skills Jenny Gilruth
Minister for Children, Young People and The Promise Natalie Don
Minister for Higher and Further Education; and Minister for Veterans Graeme Dey
Cabinet Secretary for Justice and Home Affairs Angela Constance
Minister for Victims and Community Safety Siobhian Brown
Cabinet Secretary for Net Zero and Energy Màiri McAllan
Minister for Climate Action Gillian Martin
Cabinet Secretary for Transport Fiona Hyslop
Minister for Agriculture and Connectivity Jim Fairlie (reporting jointly to the Cabinet Secretary for Rural Affairs, Land Reform and Islands)
Cabinet Secretary for Health and Social Care Neil Gray
Minister for Public Health and Women’s Health Jenni Minto
Minister for Social Care, Mental Wellbeing and Sport Maree Todd
Minister for Drugs and Alcohol Policy Christina McKelvie
Cabinet Secretary for Social Justice Shirley-Anne Somerville
Minister for Equalities Kaukab Stewart
Minister for Housing Paul McLennan
Cabinet Secretary for Rural Affairs, Land Reform and Islands Mairi Gougeon
Minister for Agriculture and Connectivity Jim Fairlie (reporting jointly to the Cabinet Secretary for Transport)
Cabinet Secretary for Constitution, External Affairs and Culture Angus Robertson
Parliament will be asked to approve the new Ministerial appointments. A detailed breakdown of ministerial responsibilities will be published in due course.
