Scottish Budget: Protecting our recovery and renewal?

Significant new investment to drive economic recovery, bolster public services and support families underpins the Scottish Government’s spending and taxation plans for the coming year.

Presenting the Scottish Budget 2021-22 yesterday, Finance Secretary Kate Forbes announced support for jobs and skills totalling around £1.1 billion.

Job creation is a priority, with measures including a commitment to launch a new Green Workforce Academy to help people secure work in the low carbon economy, a £100 million Green Jobs Fund over the next parliament,  £7 million towards making Scotland a world class hub for digital business and an additional £125 million for the Young Person’s Guarantee, employability and skills.

Health receives record funding of over £16 billion, an increase of 5.3% on 2020-21, along with a further £869 million to continue tackling coronavirus (COVID-19), including funding for the vaccination and test and trace programmes. This means that, over the course of this parliament, investment in health has increased by £1.8 billion in real terms – more than tripling the commitment to increase health funding by £500 million more than inflation.

To support family budgets, £90 million is being made available for local authorities to freeze council tax.

Public sector workers earning up to £25,000 can receive at least a 3% pay increase via a £750 cash underpin, while there is a 1% rise for those earning above that amount, capped at £800 above £80,000.

The budget also proposes:

  • £11.6 billion for local government, which represents a £335.6 million increase in core revenue funding, including the £90 million to compensate local authorities which choose to freeze Council Tax, plus £259 million in one-off funding
  • £1.9 billion for primary health care to help deliver more services in the community. A further £550 million is earmarked to build new Elective Care Centres and the Baird Family Hospital and Anchor Centre in Aberdeen
  • £98.2 million to improve Scotland’s digital infrastructure and deliver access to high quality broadband and mobile coverage.
  • £711.6 million for affordable housing and £68 million for the first full year of the Scottish Child Payment, tackling child poverty
  • a new £55 million programme to support town centres and community-led regeneration projects
  • more than £3.1 billion in resource and capital investment for education and skills, and £567 million to provide 1,140 hours of early learning and childcare, supporting implementation of the UK’s most ambitious childcare programme
  • £1.3 billion for the Scottish Police Authority, including a £60 million increase in Police Scotland’s revenue budget – exceeding an earlier pledge of a £100 million boost over five years
  • £1.6 billion for rail and bus services and £100.5 million for active travel to consolidate changes to healthy, green travel options seen during the pandemic
  • doubling the Rural Tourism Infrastructure Fund, helping tourist attractions and local communities make improvements to cope with increased visitors
  • an additional £27 million to expand woodland creation and the associated infrastructure, supporting green jobs

Business support remains a priority and the Finance Secretary confirmed that the Local Authority Discretionary Fund will be doubled to £60 million in this financial year to allow councils to respond to local needs. In addition, businesses eligible for the Strategic Framework Business Fund will receive full Level 4 payments on 22 February, regardless of any future changes to local restrictions.

The Scottish Government will also increase a scheme which compensates councils for the loss of income from sales, fees and charges due to the pandemic from £90 million to £200 million in 2020-21. 

Ms Forbes said: “This budget is being delivered in exceptional circumstances as we continue to battle a pandemic that has shaken our society and economy to the core, and as we face the harmful impacts of Brexit.

“It promotes innovation and reform, new beginnings, new directions. And while it continues to target support in the immediate term, it also tracks a course over the next year to build a fairer, stronger and greener country.

“To help drive our green economic recovery I am providing the stability and certainty that businesses have asked for through the most competitive reliefs packages in the UK. There are innovative measures to promote sustainable growth and we are investing more than £1 billion in jobs and training.

“The budget sets out a distinctive Scottish pay policy that again supports the lowest paid, charting a different course to the ill-judged pay freeze announced by the UK Government. It also bolsters our health service, delivers more affordable homes, provides additional childcare places and helps young people into work.

“Throughout these dark times we have never given up hope. This budget seeks to build on that hope and, by focusing on how we rebuild and renew our country, make the light at the end of the tunnel shine that bit brighter.”

The STUC has expressed its disappointment at what effectively amounts to a real-terms pay freeze for thousands of public sector workers as the Budget offers 1% for those earning pay above £25,000 per year including most teaching staff, firefighter and civil servants.

The STUC General Secretary, Roz Foyer pointed to the real terms increase in the Scottish Budget of nearly 4% and contrasted that with today’s pay offer.

“Whilst it is right and proper that the pay of low paid workers should be underpinned, for most workers this increase is still below the budget uplift received by Holyrood from Westminster. Far too many of our key workers have been left out in the cold.

While supporting Scottish Government calls for greater borrowing powers, Foyer also questioned whether tax cuts for high earners were the right priority and whether funding for Local Government was sufficient.

“We strongly support the Scottish Government’s calls for greater borrowing powers. However, the Cabinet Secretary has managed to find wiggle room to provide £125 million in blanket tax cuts. She has also reduced income taxes for high earners – a policy that raised £51 million last year. Given this, it is deeply disappointing that she hasn’t been able to better reward key workers.

“While the Cabinet Secretary spoke about an increase in funding for Local Government, it appears this amounts to less than a 1% increase, a level that is nowhere near sufficient to cover gaping cuts to services from years of austerity.”

Responding to the Budget announcement, Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce, said: “The position of Scottish businesses has never been so precarious. The Scottish Government’s announcements today are welcome but do not go nearly as far enough to avoid risk of widespread business collapse and job losses.

“Yes, there is light at the end of the tunnel with the vaccination programme but restrictions to prevent the spread of the virus have been devastating. We understand that the Cabinet Secretary for Finance faces difficult choices in setting the budget particularly ahead of that of the UK, in a time when the country faces extraordinary challenges.

“Business will be disappointed that further details on an economic route map on how we will exit this crisis aligned with the roll out of the vaccine were not provided today. This is a critical component if businesses are to unleash the investment our country so desperately needs.”

On Non-Domestic Rates:

“The Cabinet Secretary has listened to us and has delivered a reduction in the Non-Domestic Rate (NDR) poundage rate. However, longer-term, we believe the system is unfair and needs significant reform.

“Plans for a three months extension of rates relief is a too short a reprieve. We need commitment to a 12-month reliefs package to provide the certainty business needs. Clearly there is more to do, and we await further announcements from the Chancellor to see what further support can be made available and expect Scottish Government to pass on the equivalent consequential funding to businesses.”

On Business Support:

“The doubling of the discretionary fund is good news particularly for those businesses who have fallen through the gaps of other support packages. However, it is imperative that the process for businesses is clear, transparent and quick across all local authorities to ensure funding is available for businesses quickly and immediately.

“Now is the time to pull out the stops and redouble efforts to ensure business support comes through. We need to see a significant ramping up to get those funds that have been promised out the door and to businesses.”

On Infrastructure:

“The Scottish Government’s commitment to infrastructure investment is absolutely necessary for Scotland and the UK to be in a position to build back better and meet net zero ambitions. Now is the time for a vision driven by ambition and a willingness to collaborate like never before. This must be put first and foremost ahead of any political point scoring this year.”

On skills and training:

“SCC welcomes these important steps to support jobs, employment and training. We called for training academies and we are pleased to see the Cabinet Secretary has acted on our recommendations, particularly the focus on green jobs. It is now critical that the government and academia works in partnership with the private sector to ensure benefits are fully realised.”

On Protecting Jobs:

“We maintain our call to the Chancellor of the Exchequer to extend the furlough scheme beyond April 2021 and outline further initiatives to protect business and jobs at the UK Budget in March.”

On mental health support:

“Business will welcome this as we understand the toll the pandemic has taken on our customers, employees and communities.

“Recovery of our wellbeing is just as important as economic recovery, with many employers investing in their own employee support programmes. This commitment from the Scottish Government will enhance these efforts.”

Responding to Kate Forbes’ announcement that public sector workers on salaries up to £25,000 a year will receive a 3 per cent increase, GMB Scotland Senior Organiser Drew Duffy said: “This will be met with fury among the lowest paid in Scotland’s public sector.

“Kate Forbes was among the many politicians applauding our frontline heroes, now she is saying ‘thank you’ with a rise that won’t amount to more than a tenner a week for most.

“There is no value here, and it’s an insulting response from the Scottish Government to the ongoing struggles of our key workers in this pandemic.”

Tracy Black, CBI Scotland Director, said: “The Finance Secretary is right to put business support and economic recovery front and centre of this year’s draft Budget. With jobs, firms and livelihoods still hanging by a thread, Scotland can’t afford to wait until the pandemic is over before initiating plans for a sustained recovery.

“Health must come first and lowering transmission rates remains the priority. Yet with so many struggling companies across Scotland, it’s only right that proper consideration is given to reopening the economy when it is safe to do so. This should be driven by data and done in dialogue with business.  

“The private sector is critical to a successful recovery and moves to protect firms’ immediate futures are welcome. Continuing rates reliefs for the hard-hit hospitality, retail and tourism sectors is welcome, however a three-month window remains a challenging timetable for firms under real pressure. Companies will also be relieved to see a continued commitment to Covid business support and no further changes on income tax.

“The UK and Scottish governments must now work together to provide certainty over business support, ensuring that the firms we need to drive economic recovery survive the tough weeks and months ahead.

“Longer term, the figures from the Scottish Fiscal Commission paint a worrying picture and highlight the scale of the challenge ahead. Maintaining a laser focus on boosting productivity and protecting competitiveness are key.”

Responding to the Scottish Government’s Budget statement delivered today by Finance Secretary Kate Forbes MSP, Director of CAMRA Scotland Joe Crawford said: “Extending the business rates holiday for pubs and social clubs for a further three months into the next financial year is a desperately-needed lifeline for pubs who have struggled for almost a year now. 

“But three months won’t be enough. CAMRA will be joining the Scottish Government in calling on the Chancellor to use his Budget on 3rd March to give the Scottish Government enough money to extend this Business Rates holiday for the entire 2021/22 financial year. 

“Pub-goers and licensees will now want to see the Scottish and UK Governments work together to make sure pubs and breweries get enough long-term financial support to thrive when they can reopen. This must include grants, furlough support as long as there are restrictions on trading, extending the VAT cut on beer to help pubs that don’t serve food, and cutting tax on beer served in pubs to help them compete with supermarket booze. 

“Pubs and social clubs are a force for good in our communities, bringing people together and tackling loneliness and social isolation. They will be a crucial part of our national healing process after COVID and deserve to be supported until they can trade again.” 

SLTA Managing Director, Colin Wilkinson said: “The Scottish Licensed Trade Association welcomes today’s announcement by Finance Secretary Kate Forbes that the Scottish Government will extend 100% non-domestic rates relief for retail, hospitality and leisure for at least the first three months of the new financial year.   However, it doesn’t go far enough. 

“Today’s announcement is good news, as is the promise of further ongoing business support and it gives us a much-needed stay of execution. The reduction in the poundage rate, from 49.8 pence to 49 pence, is also very welcomed.

“Further support from the Westminster Government is crucial and our hope is that UK Chancellor, Rishi Sunak, steps up to the mark by extending the current furlough scheme,  committing to retain the Commercial Rates Relief and the temporary 5% reduced rate of VAT for hospitality beyond March 31 and well in to 2022.

“Our sector is battered and bruised and the sooner both the Scottish and UK Governments can provide clarity on support and an indication of an exit strategy out of this pandemic the better.”

Chief Constable Iain Livingstone has welcomed the Scottish Government’s Budget announcement. 

Mr Livingstone said: “I welcome the announcement to eliminate the structural deficit in policing’s funding.

“The reform of policing in Scotland has brought many benefits to all communities across the country, while £200m has been returned to the public purse every year compared to legacy arrangements.

“The last 12 months have demonstrated the relentless nature of policing. Our mission to prevent harm, support communities and keep people safe has been evident throughout the pandemic.

“We will continue to enhance capacity and capability to protect the people of Scotland in the public, private and virtual spaces.

“Responsive and accessible local policing is deeply valued by our fellow citizens and will always lie at the heart of Police Scotland’s purpose and approach.”

The Scottish Budget 2021-22 document is available online.

Full details of the budget are available at www.gov.scot/budget

Call for Scottish budget to address mental health pandemic for children and young people

A coalition of leading independent and third sector children and young people’s service providers has called on the Scottish Government to deliver a “budget for mental health” this afternoon.

The call from campaign group, the Scottish Children’s Services Coalition (SCSC), comes in advance of today’s Scottish Budget and Children’s Mental Health Week (1st-7th February). It comes amid growing concerns over a potential lost generation of vulnerable children and young people, whose mental health is being impacted by the pandemic. 

The SCSC has urged greatly increased investment in services for children and young people to tackle a current mental health pandemic and called for a national crusade to address this.

COVID-19 has had a devastating impact on young people’s mental health and wellbeing, with the recent Prince’s Trust long-running annual survey of young people’s happiness and confidence returned the worst findings in its 12-year history. It found that more than a quarter (26 per cent) say that they feel unable to cope with life since the start of the pandemic.

In addition, half of the young people interviewed said that their mental health has worsened, with more than half (56 per cent) said they always or often felt anxious. 1

Even prior to the pandemic cases of poor mental health were at unprecedented levels, representing one of the greatest health challenges of our time, and there is a growing number of vulnerable children who cannot access services. With a new lockdown and a return to home schooling, even some children who would not have accessed children’s mental health services normally will need support this year.

However, just over 50p in every £100 of the NHS budget is being spent on specialist child and adolescent mental health services (CAMHS). A frighteningly low figure despite the fact that mental health services are literally creaking at the seams due to greatly increasing demand. 

Research indicates that 10 per cent of children and young people (aged five to 16) has a clinically diagnosable mental health problem (around three in every classroom) – however, it should be noted that these figures are some years out of date and it is widely believed that numbers have increased and will increase further given the impacts of COVID-19.

Recent statistics however point to the fact that only one health board in Scotland is treating children and young people within an 18-week waiting time and more than 1,000 have been waiting over a year to be treated.

The SCSC has also called for greatly increased investment in services and for a renewed focus on prevention and early intervention. This includes on-demand counselling services in GP surgeries and greater community support generally, reducing the need for referral to under-pressure specialist CAMHS. 

A spokesperson for the SCSC said: “Our children are remarkably resilient, but the statistics on the mental health of our young people does create a compelling case for a national crusade to address what is a mental health pandemic representing one of the greatest public health challenges of our time.

“We are urging the Scottish Government to make the forthcoming budget a budget for mental health for our children and young people. Unless the government takes urgent action to improve access to services, this young generation will be destined for a future of mental ill health, with a resultant societal impact. 

“There must be significantly increased investment in and greater collaboration between the public, private and third sectors to deliver adequate mental health support. We must also use this as an opportunity to radically transform our mental health services, both for now and for the future, refocusing on prevention and early intervention.

“This mental health crisis is one we can address, but it will require a similar energy, drive and commitment to that which was demonstrated for COVID-19 if we are to achieve this and prevent this generation of young people giving up on their futures – and themselves.”

£25 million for regeneration projects

Go-ahead for Granton Station and Nourishing Leith Hubs

More than £25 million is going to disadvantaged and remote communities around Scotland to support regeneration and employment projects. Two Edinburgh projects, Granton Station Enterprise Hub (above) and Nourishing Leith Hub, will receive funding of over £2.2 million.

The money from the Regeneration Capital Grant Fund (RCGF) will go to 26 projects all over Scotland to tackle inequalities and deliver inclusive growth.  

Over 400 business and organisations will benefit from the projects which will support or create more than 1220 jobs as well as thousands of training places by refurbishing and bringing back into use 26 empty buildings to provide space for community enterprises.

Communities Secretary Aileen Campbell said: “Together with COSLA we have invested almost £200 million through this fund since 2014 in support of locally-led regeneration projects which help to build the resilience and wellbeing of communities. I am pleased that a further 26 projects will benefit from the fund as we look to a period of recovery from the COVID-19 pandemic.

“We have had to lead our lives locally, pulling together more as communities, to see off the many challenges arising from coronavirus. This latest round of investment into local projects continues our ongoing support for vibrant and accessible town centres and communities.”

Earth in Common (formerly Leith Crops in Pots) were delighted to hear that their funding application has been successful at last. The Leith initiaitve recieves £944,744.

A spokesperson for the community project said: “Our team are over the moon with this news today! After many years and huge effort we finally done it. Our pixies went on one small outing today and look what they managed to achieve. Must have been all that fairy dust. They ‘Saved the PAV’!”

COSLA’s Environment and Economy spokesperson Councillor Steven Heddle said: “This work has never been more important as we look to rebuild from the devastating impact of COVID-19. Recovery from the virus must be fair to our communities and promote inclusivity, growth and wellbeing.

“The innovative projects announced today can empower our communities to deliver better places to live and work.”

While many of the awards are for projects based in urban areas, there’s funding for initiatives in some far-flung communities too

Among the projects being funded this year is The Old Clyne School Redevelopment Project in Brora, Highland. It will redevelop a derelict C-listed building to become a community-owned museum and heritage centre, and to be a base for the Clyne Heritage Society.

Dr Nick Lindsay, Chairman of the Clyne Heritage Society said: “This is the best news that we could have hoped for, in what has been a very difficult year. This should unlock the final ‘brick-in-the-wall’ funds from other funding partners, so we can deliver this major development for Brora.

“We can now fulfil our dreams by regenerating the Old Clyne School into a must-visit destination, transforming a current eyesore into a welcome attraction for the whole community and future generations.”

Tougher border controls … but not tough enough, says First Minister

The UK government has announced further action for outbound and inbound passengers to minimise travel across international borders and reduce the risk of Covid-19 transmission – but Scotland’s First Minister Nicola Sturgeon says the measures just don’t go far enough.

While the focus is on protecting the UK’s world-leading vaccination programme, this action will reduce the risk of a new variant of the virus being transmitted from someone coming into the UK.

The measures announced today include:

For those wishing to travel out of the UK

  • Declaring reason for travel: anyone who does not have a valid reason for travel will be directed to return home and may face a fine. The reason for travel will be checked.
  • Increased police enforcement: there will be an increased police presence at ports and airports, fining those in breach of the stay at home regulations. Anyone without valid reason for travel will be directed to return home and may face a fine.
  • Reviewing travel exemptions: the list of travel exemptions will be urgently reviewed so that only the most important and exceptional reasons are included.

For those seeking to enter the UK

  • Managed isolation in hotels: this will be for those arriving from countries where we have imposed international travel bans and who cannot be refused entry. They will be required to isolate for ten days without exception and more details will be provided in due course.
  • Police checks: police are carrying out more physical checks at addresses to make sure people are self-isolating.

Home Secretary Priti Patel said: “There are still too many people coming in and out of our country each day. The rules are clear – people should be staying at home unless they have a valid reason to leave. Going on holiday is not a valid reason.

“As we have done throughout this global health emergency, we will continue to take all steps necessary to protect the public and help prevent the spread of the virus.”

These new measures are on top of the restrictions already in place, all of which help reduce the risk of importing a new variant.

  • Refusing entry: we will continue to refuse entry to non-UK residents from red list countries which are already subject to a UK travel ban.
  • Entering the UK: passengers arriving in the UK need to provide evidence of a negative pre-departure Covid test. There is also the requirement for people arriving from abroad to self-isolate on arrival, and the requirement to complete a passenger locator form, with fines for those who fail to comply.
  • Detecting new variants: we will help other countries to access to the UK’s world-leading gene sequencing capabilities to help with early identification of any new and dangerous variants of the virus.

All measures will be kept under review and further action will be taken to protect the public if needed.

Pre-empting the Westminster announcement, First Minister Nicola Sturgeon told yesterday’s media briefing that she feared the UK Government’s plans don’t go far enough and that Scotland may introduce tougher measures.

Miss Sturgeon said: “Now, the second point I want to cover today relates to travel, since there is a lot of speculation about a UK Government that will be made later on this today. So I want to reiterate some of the points the Deputy First Minister made to parliament yesterday that some of you may have heard.

“Travel restrictions will be very vitally important in the coming months. Travel restrictions will be a key way in which we help to stop new cases and in particular, new variants of this virus being imported into Scotland.

“As we found out to our cost over the summer, the virus travels when people travel – and there will be a need for restrictions even after vaccination is much more widespread.

“And indeed at a time when there is rightly a focus on lessons learned, that we should be learning from earlier stages of the pandemic, this is one that I would highlight that we should have perhaps done more of at an earlier stage to restrict travel across our borders.

“We have been in discussions with the UK Government for some time about improving border controls. In those discussions, we have raise the issue of Quarantine Hotels, where people who are returning to the UK can self-isolate.

“The Scottish Government believes that a comprehensive system of supervised quarantine is required for this next stage of the pandemic, to mitigate against the risk of new cases and new variants being imported into the country.

“I’ve just taken part in a 4 Nations call and I’ve been briefed on what the Prime Minister is likely to announce later on. I’m not going to preempt his announcement. It wouldn’t be appropriate for me to do so but clearly there is speculation in newspapers.

But I think I do have a duty at this point to say that I am concerned that the proposal does not go far enough and I’ve made that point very strongly in the 4 Nations discussions that we’ve just had today.

“So while the Scottish Government will initially emulate the UK Government’s steps on enhancing quarantine arrangements, we will be seeking urgently to persuade them to go much further and indeed to move to a comprehensive system of supervised quarantine.

“Given the obvious practical issues involved, we are very clear that our preference is to have consistent quarantine rules across the UK. But if there is no agreement to go further on a 4 Nations basis, we will be considering going further ourselves and we will set out any such additional measures next week.

“I know that talk of travel restrictions is tough to hear, for everybody, but particularly tough for many businesses and so we’re also asking the UK Government to work with us to provide additional support for the aviation sector, which is of course directly affected by further restrictions.   

“Fundamentally, though, we believe that tougher travel restrictions – however unwelcome they are for all of us – are essential to managing the risk posed by new variants, and to new cases coming into Scotland.

“And, as I said, I think that they will become increasingly important, as case levels in Scotland, we hope, continue to fall and that makes it all the more important that we do everything that we can to protect against the risks of reimportation.

 “As I said, we are likely to set out further steps next week but for now, let me reiterate that no one should be travelling overseas right now unless for absolutely essential purposes.

Support for students in hardship

Students experiencing hardship as a result of coronavirus (COVID-19) will be supported by £20 million of Scottish Government funding. A further £10 million has also been allocated to universities and colleges for income lost in providing rent rebates.

To complement the additional £30 million, the Scottish Funding Council is also repurposing £5 million of student support funding towards discretionary funding for FE students in the college sector.

Deputy First Minister John Swinney said: “The impact of the pandemic on students has been significant. Not only has there been disruption to their education, we know that many students face financial difficulties with accommodation, associated costs or challenges in getting jobs. This additional £20 million will help to alleviate the financial pressure and stress facing many of our students.

“We are also supporting institutions, many of which have lost revenue by giving students rent refunds or rebates, with an additional £10 million.

“This announcement builds on the £37 million package of support the Scottish Government has already provided to support students during the pandemic.”

Matt Crilly, President of NUS Scotland, said: “NUS Scotland welcomes this crucial support from the Scottish Government at a time when students are struggling. We know many of the traditional sources of student income have been decimated during the pandemic, so it is a relief to know there will be additional funding for those experiencing hardship.

“This support is essential in helping Scotland uphold its commitment to fair access to education. While Scotland has made important advances in recent years towards widening access to further and higher education, the pandemic has exacerbated existing inequalities and threatens to erode this progress. This funding helps ensure we are not only supporting students from all backgrounds into education, but also helping them stay in education.”

Shona Struthers, chief executive officer of Colleges Scotland, said: “We welcome any additional funding to support college students across Scotland at this incredibly difficult time.

“Many of our students are learning from home and with additional financial hardship caused by the pandemic – we are sure that the much-needed additional funds from Scottish Government will prove beneficial to students during this lockdown period. Colleges Scotland will work on behalf of the sector to highlight ongoing challenges.”

Details on how this £20 million assistance for students will be distributed will be confirmed shortly.

More information on the support available for students is available online.

Scottish Budget to ‘prioritise sustainable economic revival’

Measures promoting recovery and renewal will be at the heart of the Scottish Budget tomorrow.

New initiatives to drive economic growth, create jobs and tackle inequality will be included alongside further support for business, public services and families.

https://twitter.com/i/status/1354006419763302402

Finance Secretary Kate Forbes said: “The budget on Thursday will create the conditions for Scotland to recover and renew.

“We remain in the grip of a pandemic which continues to put pressure on our economy, health services and each of us as individuals. But the vaccine is providing a route back to normality and we must now sharpen our focus on rebuilding for the future.

“The budget will include innovative, targeted measures to help businesses and families get back on their feet and bolster our vital public services. I have already ruled out following the UK Government’s public sector pay freeze and will set out details of a pay settlement that is both fair and affordable.

“It is vital that we rebuild our economy in a way that provides equal opportunities for all, delivers on our green commitments and creates the kind of Scotland we all want to see.”

“This process has already started. For instance we have established a National Transition Training Fund providing targeted support for up to 10,000 people, set out our £60 million Young Person’s Guarantee and committed £2 billion in low carbon funding. The budget will set out how we intend to further these ambitions.

“Ahead of the budget we sought views on the role of Scotland’s devolved taxes and our fiscal framework in supporting the recovery. There was clear feedback regarding the need for stability and targeted support and that has also been a particularly strong message in my meetings with businesses and their representative organisations. The budget will deliver on those priorities

“Despite the UK Government’s budget being delayed until March, and the uncertainty that causes, the Scottish Budget 2021-22 will confirm funding allocations for local government. It will also detail how, within our limited resources, we will go as far as we can to support businesses in receipt of non-domestic rates relief.

“The global pandemic and the problems arising from Brexit combine to make these uniquely challenging times. This budget will help Scotland emerge as a globally competitive, fairer and greener country and I urge all parties to work in the national interest to ensure it is passed by the Scottish Parliament.”

Council plea for fair funding following Accounts Commission report

Local councils have seen greater reductions in funding over the last seven years than other areas of the Scottish Government budget.

Funding received by councils from the Scottish Government increased by £500 million in 2019/20, but Covid-19 will drive large rises in costs and spending, combined with falling income.

An overview of local government finances in Scotland, published today by the Accounts Commission, reports that councils received higher revenue and capital funding than in previous years and many were able to increase their financial reserves. However much of the additional funding councils received from the Scottish Government must be used for specific purposes, including over £200 million for expanding early learning and childcare. And capital finance funding will drop by 30 per cent in 2020/21.

Looking ahead, Scotland’s councils face significant additional pressures due to Covid-19. This includes substantial and ongoing reductions in income, increased costs and the administration of business support grants and other measures of support to their communities during Covid-19.

The Commission has also repeated its serious concerns about the financial stability and leadership of Integration Joint Boards (IJBs), the bodies set-up to manage local health and social care services. Most IJBs couldn’t deliver services within their budgets and needed extra money from health boards and councils. There were also changes of chief officer in 12 IJBs, and this leadership instability makes it harder to manage both finances and the major changes needed in health and social care.

Elma Murray, Interim Chair of the Accounts Commission, said: “Councils and Integration Joint Boards play a vital role in supporting Scotland’s communities. Even before Covid-19 the pressures and demands on council services had intensified. At the same time reductions in local government funding over the past seven years have been greater than in other areas of the Scottish Government budget.

“Covid-19 has fundamentally affected local government services, increasing their reliance on working with their partners and communities. The financial impact of the pandemic on our public services is extreme and creates increased uncertainty of how those services will be provided in the future.

“Good governance, strong financial management and transparency of decision making will be critical as councils and IJBs deal with the impact and consequences of the pandemic.

Councils have seen greater reductions in funding over the last seven years than other areas of the Scottish Government budget a report from the Accounts Commission states today (Tuesday).

The report also highlights that Scotland’s councils face significant additional pressures due to Covid-19. This includes substantial and ongoing reductions in income, increased costs and the administration of business support grants and other measures of support to their communities during Covid-19.

Commenting on the report today and ahead of the Scottish Government’s Budget on Thursday, COSLA’s Resources Spokesperson Councillor Gail Macgregor said:  The messages in today’s Accounts Commission report paint a full picture – on the face of it, there looked to be increases in Local Government funding in 19/20 but much of this was for Scottish Government’s OWN commitments, and came after years of reductions.  

“These messages should be listened to AND ACTED UPON as they come from an independent, well respected non Local Government body.

“This report lays out why we need fair funding for Local Government in Thursday’s Budget.  The trend of recent settlements for Local Government needs to change because on top of existing pressures, the COVID pandemic – as the Accounts Commission report recognises – has placed unprecedented strain on the finances of Scotland’s Councils this year.

“This year, across every community in Scotland, Local Government’s essential role has been magnified and once again we have delivered for our communities.

“Nobody in Scotland has been unaffected by this pandemic and the financial impacts of COVID-19 are severe. Individuals, families and businesses have all felt the effects and continue to look to Councils for support every day.

“Sustaining this lifeline support is placing extreme pressure on already strained budgets and without fair funding for Local Government this year, the consequences for the most vulnerable in our communities would be unacceptable.

“That is why we need fair funding for 2021/22 that respects our communities. Without this, there will be further cuts to services, reductions in spending locally, increases in the inequalities exposed by the pandemic and a much slower recovery.”

Further support for Scottish grassroots music venues

  • Grants of between £10K and £70K available for grassroots music venues
  • Deadline for applications: Wednesday 3 February 2021

In response to the impact that the ongoing Covid-19 pandemic is having on art and culture in Scotland, on December 20, 2020 the Culture Secretary Fiona Hyslop, announced an additional £4m in emergency funding for the Grassroots Music Venues Stabilisation Fund, delivered through Creative Scotland.

The purpose of the fund is to provide grassroots live music venues that were financially sustainable before Covid-19 with the funds to prevent permanent closure and stabilise until end June 2021.

Full eligibility criteria and further details are available on the Creative Scotland website.

Iain MunroChief ExecutiveCreative Scotland said: “In these extremely challenging times, this additional £4m in support of Scotland’s grassroots music venues is enormously welcome.

“Grassroots music venues are a vital part of Scotland’s cultural ecology, developing music and audiences as well as supporting talent. They will play a vital role in Scotland’s cultural recovery as and when we emerge from the COVID-19 pandemic.”

The awards for the first round of the Grassroots Music Venue Stabilisation Fund were announced on Tuesday 22 September, when £2.2m in emergency support was provided to 68 venues across Scotland.

Look out for your blue envelope – although the first ones are white!

Appointments scheduled for next groups on the priority list

Blue envelopes containing an invitation to a coronavirus (COVID-19) vaccine appointment for people aged 70 -79 will start to land on doormats in several health board areas from tomorrow (Monday 25 January) – but, confusingly, the first batch will be WHITE!

A new booking system is being used by health boards in Lothian, Fife, Forth Valley, Ayrshire & Arran, Greater Glasgow & Clyde and Lanarkshire to schedule appointments for patients in order of priority. More boards are expected to make use of the technology as the vaccination programme expands.

The distinctive coloured envelopes will be delivered to households as the programme progresses though the different groups on the Joint Committee on Vaccination and Immunisation (JCVI) priority list. The letters will include information on how to reschedule an appointment if it is not suitable.

We are on track for all those aged over 80 to have received their first dose of the vaccine by the end of the first week in February.

No-one aged 80 or over should expect a blue envelope because they will be contacted directly by phone or letter.  

Health Secretary Jeane Freeman said: “We all know how easy it is to ignore some of the mail which comes through our letterboxes but these blue envelopes will be very distinctive and they will contain details of your vaccine appointment so please open them.

“The letters are being posted First Class and we have been advised by the Royal Mail that the colour will allow them to prioritise delivery.

“The blue envelopes will contain information about the time and place of your appointment and details on how to reschedule it if you are unable to attend.

“I would urge everyone to take up their appointment when they are offered one.

“The vaccination programme is one of three key ways we are working to beat this virus, along with our expanded testing programme to identify cases and break chains of transmission and the important lockdown restrictions everyone in Scotland must follow. All these measures work to greatest effect when they work together.”

UPDATE: Sunday 24 January

The first tranche of letters will use NHS branded WHITE envelopes but distinctive coloured blue envelopes are planned to be used as soon as possible as the programme progresses though the different groups on the Joint Committee on Vaccination and Immunisation (JCVI) priority list.

The letters will include information on how to reschedule an appointment if it is not suitable.

Further funding to support the wellbeing of Scotland’s health and social care staff

Additional funding of £500,000 is being allocated to provide practical measures of support for health and social care staff working to tackle the Coronavirus (COVID-19) pandemic.

Following direct feedback from staff, this funding will support local provision of hot drinks and snacks and other measures to aid rest and recuperation during their shifts, which will support their wellbeing and ease some pressures they face at work.

Enhanced wellbeing support services, backed by £5 million, are already in place to support health and social care staff. This includes the National 24 hour helpline, staffed by trained psychological  practitioners, and the National Wellbeing Hub, which is helping staff cope with stress, anxiety and resilience.  

 Health Secretary Jeane Freeman said: “I have set very clear expectations that all Health Boards should promote both the physical and psychological wellbeing of staff, whether they operate in a hospital or a community setting.

“As we approached this peak of the pandemic, I asked officials to seek feedback from Wellbeing Champions across Scotland on what additional support may benefit staff during this most challenging period.

“I have listened closely to their feedback which has emphasised that little things like access to hot drinks and snacks can mean a lot and go a long way to support staff wellbeing.

“I hope this additional funding will further support Boards and Health and Social Care Partnerships to put in place the extra practical support that can make shifts a little easier for staff.”

Staff can access the 24 hour National Helpline by calling 0800 111 4191.