Tag: Scottish Government

Coronavirus could see Scotland’s economy shrink by a third

The economic impact of the efforts to tackle the coronavirus (COVID-19) pandemic could see Gross Domestic Product (GDP) fall by around a third, according to a report by the Chief Economist.

The latest State of the Economy report, published by the Scottish Government’s Chief Economist Gary Gillespie, presents analysis showing that GDP in Scotland could fall by around 33% during the current period of social distancing, similar to estimates from UK and international bodies such as the Office for Budget Responsibility (OBR) and the Organisation for Economic Co-operation and Development (OECD).

Alongside a summary of latest economic developments, the report includes Scottish Government analysis of:

• channels through which COVID-19 is impacting Scotland’s economy;
• short term impact of social distancing on GDP and the labour market;
• exposure of different sectors to COVID-19 risks;
• medium term path of the economic recovery.

Economy Secretary Fiona Hyslop said: “Our response to COVID-19 is saving lives, but I am deeply aware that the pandemic is having an economic effect that is already being felt across Scotland.

“The Scottish Government is doing everything we can to support businesses at this very difficult time.

“We want Scotland to recover as quickly as possible from this outbreak, and that includes rebuilding our economy as quickly as is safely possible.

“None of us should be under any illusions about the scale of economic recovery and, as we have said before, no government will have all of those answers.

“That is why we have set up an independent advisory group to provide expert economic advice and this will be crucial to help us deal with the challenge of rebuilding our economy.”

state-economy

 

Lifeline support for business confirmed

Economy Secretary Fiona Hyslop has confirmed that grant funding for the newly self-employed suffering hardship and SMEs in distress will be available ‘in the coming days’.

The £100 million fund to support the self-employed and SMEs announced last week will be broken into three separate funds as follows:

• £34 million Newly Self-Employed Hardship Fund, managed by Local Authorities, will be allocated to the newly self-employed facing hardship through £2,000 grants
• £20 million Creative, Tourism & Hospitality Enterprises Hardship Fund, managed by the Enterprise Agencies in partnership with Creative Scotland and VisitScotland for creative, tourism and hospitality companies not in receipt of business rates relief
• £45 million Pivotal Enterprise Resilience Fund, managed by the Enterprise Agencies for vulnerable SME firms who are vital to the local or national economic foundations of Scotland

The Scottish Government is also providing £1 million to top up Creative Scotland’s Bridging Bursaries in the not-for-profit sector.

Speaking in parliament, Ms Hyslop also confirmed that the grant funding will be open for applications by the end of April, and that recipients will receive funds in early May. She said: “This funding is intended to relieve the hardship of individuals and smaller firms that are ineligible for support from the UK Government or are not in receipt yet of the funds they need to survive.

“Our hospitality, tourism and creative sectors have been decimated by this crisis and previously profitable businesses have seen demand dry up overnight.

“However, because of the decisions the Scottish Government has taken, thousands more self-employed people and small businesses will be able to benefit from support compared with elsewhere, and we have been able to help sectors of the economy that are not being supported in other parts of the UK.

“As well as dealing with this immediate crisis, we must look to the future. We must ensure that those businesses with a part to play in strengthening resilience in Scotland’s economy survive this crisis and thrive in future, which is why £45 million is being allocated to those firms.

“We continue to engage with businesses on a regular basis to understand their needs and press the UK Government to deliver for them.”

Following this afternoon’s announcement, Creative Scotland’s Chief Executive Iain Munro commented:  “We welcome today’s Scottish Government announcement of £100 million funds to support the self-employed and SMEs.

“Creative Scotland will work hard with partners to ensure that those who are eligible in the creative sector can access the new funding as far as possible.

“Today’s announcement also includes the extra £1m from the Scottish Government which we announced yesterday to supplement the Creative Scotland Bridging Bursary Fund and has enabled us to double the budget, providing much needed financial support for freelance creative professionals most deeply impacted and disadvantaged by the cancellation of work due to the COVID-19 emergency.”

Over 110,000 Universal Credit claims since coronavirus outbreak

Claims for Universal Credit in Scotland have increased from an average of 20,000 per month in 2019 to over 110,000 between 1 March and 7 April, highlighting the impact the pandemic is having on people’s finances.

That’s why the Scottish Government, in partnership with the Citizens Advice network, is launching a new campaign to raise awareness of the financial support available to people.

The campaign will provide information and advice on issues including rent and mortgage payments, energy bills, council tax, and benefits people may be entitled to.

People will be able to access this advice online, by phone or by contacting their local Citizens Advice Bureau.

Cabinet Secretary for Social Security and Older People Shirley-Anne Somerville said: “This huge increase in claims for Universal Credit demonstrates just how many people across the country are struggling financially due to the coronavirus pandemic.

“These are difficult and worrying times for everyone, with many people requiring financial support for the first time and even more pressure on those who were already struggling to make ends meet.

“It is welcome that people are claiming the support that they are entitled to from the DWP, and I would encourage people to look into what additional help is available. Even if you are not entitled to Universal Credit, there could be other assistance that you can access so it is worth checking.

“That’s why we’ve been working with the Citizens Advice network in Scotland to create this central source of information – with everything from guidance on benefits, right through to what you can do if you are worried about paying your mortgage or rent.”

DWP entered into a new partnership with Citizens Advice in March last year, providing £39 million of funding to Citizens Advice and Citizens Advice Scotland to provide this service. DWP also funded Citizens Advice and Citizens Advice Scotland a further £12 million to set up delivery to ensure a smooth transition to the new delivery model. 

Citizens Advice Scotland Chief Executive Derek Mitchell said: “The Citizens Advice network in Scotland is known for always being there to help and the support we give will be more important than ever to help people avoid getting into crisis.

There may also be lots of people who have never used our services before and it’s crucial that they know our information and advice is there for them too.

“Our national network of Citizens Advice Bureaux is still operating for those who need it – if you have been financially impacted by the coronavirus outbreak your local Citizens Advice Bureau can help make sure you have access to all the income you are entitled to, as well as giving tailored advice about what’s on offer within local communities across Scotland.

“There’s increased demand for our advice on financial services, that’s why we’ve created dedicated COVID-19 content online so people get the information they need 24/7 and from the comfort of their own homes.

“We’ve also got a dedicated helpline for people who might not be able to access our services online. If you have been financially impacted by the coronavirus outbreak and require free, confidential, financial support, please visit cas.org.uk or call 0800 028 1456.

“Local Citizens Advice Bureaux are situated around the country. To find your local service, simply enter your postcode at cas.org.uk/bureaux”

Scottish government issues new guidance to support home learning

New guidance to support the home learning of children and young people during the new term has been issued by the Scottish government.

It aims to build on the significant amount of positive work that has already been undertaken by teachers and education professionals across Scotland to support learning at home, as well as the advice and resources that are already available.

The guidance covers three main areas:

  • learning and teaching at home: this includes support for digital learning; children who are likely to be disproportionately impacted; and learners with additional support needs
  • parental involvement and engagement: this includes details of local and national support and how local authorities/schools will require a different approach to being updated on a child’s development
  • support for teachers and school leaders: including advice on learning resources; supporting pupils’ and staff health and wellbeing; and on leading colleagues and teams during this period

Deputy First Minister John Swinney said: “Given the unprecedented circumstances, we cannot predict when schools in Scotland will reopen. However, our focus is that while schools are closed, learning continues, and we all have a role to play.

“Local authorities, schools, teachers and practitioners know their learners really well and have shown extraordinary dedication and professionalism in adapting and making decisions in the best interests of the children and young people.

“While we do not expect teachers, parents and families to replicate schools or classrooms, we are committed to working with all partners in Scotland’s education system to protect pupils’ wellbeing, and ensure learning can continue in an appropriate way, wherever possible.

“The guidance is aimed at those working in our education system. We are working closely with the National Parent Forum of Scotland (NPFS) on further advice, aimed specifically at parents and carers, which will be published in the coming days.”

Education Scotland Chief Executive Gayle Gorman said: “Moving into the summer term, practitioners, learners and their families will be preparing for more learning at home. Education Scotland is working with partners, prepared and ready to support all who are working with our learners across Scotland.”

Educational Institute of Scotland (EIS) General Secretary Larry Flanagan, said: “This acknowledgement of the work being undertaken by teachers and schools is welcome as is the commitment to provide further support to parents, pupils and teachers across an unprecedented period of extended closure.

“The EIS also welcomes the recognition that supporting the health and well-being of pupils and staff is a critical aim, as without that, maintaining engagement with education at any level becomes even more difficult.”

The guidance is aimed at those working in our education system. We are working closely with the National Parent Forum Scotland (NPFS) on further advice, aimed specifically at parents and carers, which will be published in the coming days.

Guidance: Supporting Pupils, Parents and Teachers – Learning During Term 4 is aimed at those working in Scotland’s education system.

The guidance has been developed by the Scottish Government and Education Scotland, with advice and input from COSLA, Solace, The Association of Directors of Education in Scotland (ADES) and professional associations.

Find Practitioner support for Online Remote Learning.

The Parentzone Scotland website continues to be updated with relevant information on home learning for parents.

NHS Louisa Jordan facility stands ready

Construction work has been completed at the NHS Louisa Jordan hospital at the Scottish Events Campus (SEC) in Glasgow. From today (Monday 20 April), the hospital will be equipped and clinically ready to treat patients during the coronavirus (COVID-19) outbreak, if required.

It is hoped the hospital will not be needed thanks to the public’s continued efforts to stay at home and the other measures that are being taken to increase the number of NHS Scotland beds.

Health Secretary Jeane Freeman said: “I want to offer my sincere gratitude and thanks to the contractors and NHS Scotland staff who have come from across Scotland to work tirelessly to transform the SEC into the NHS Louisa Jordan. You are an inspiration to us all.

“The decision on patients being accepted at the NHS Louisa Jordan will be reviewed on a regular basis. I hope this facility will not be needed as, alongside the public’s continued efforts to stay at home, NHS Scotland has already taken steps to increase the number of NHS beds.

“The exceptional efforts of everyone involved in creating NHS Louisa Jordan during this unprecedented public health emergency will ensure this national facility will be able to treat patients from across Scotland, helping to save lives and protect our NHS.”

Chief Executive of NHS Louisa Jordan Jill Young said: “Building the NHS Louisa Jordan has been an incredible effort. It has been a privilege to lead the project and I want to thank all those who have come from across the country to help us establish this national facility.

“The hospital stands ready to treat patients from across Scotland in a safe, effective and compassionate way, if required.”

The First Minister announced on 30 March that the NHS Louisa Jordan would be established to help ensure NHS Scotland has extra capacity to treat patients during the coronavirus (COVID-1) pandemic.

The hospital was named after Glasgow born First World War nurse Sister Louisa Jordan who died on active service in Serbia in 1915 as part of the Scottish Women’s Hospitals for Foreign Services.

The hospital has a capacity for an initial 300 patients and this can be expanded to more than 1,000 beds. 1036 bed bays have been built at the hospital.

Emergency Free Meals: More food deliveries through £70m Food Fund

More community food projects will receive funding to provide emergency free meals to those most in need during the coronavirus (COVID-19) pandemic.

Around £700,000 has been allocated from the £70 million Scottish Food Fund to 19 projects, including a £350,000 grant to the Wheatley Group to provide 8,500 emergency food deliveries to people most in need in 17 local authority areas as part of its own EatWell service over the next three months.

A further 18 schemes will share £400,000 to provide emergency food through a range of projects working with minority ethnic households, family support groups or mental health teams.

The Food Fund comprises £30 million for food deliveries for the ‘shielded’ groups at highest clinical risk, and a further £30 million to local authorities for free school meals and food support for older people, those with long-term health conditions and pregnant women.

The remaining £10 million is for critical third sector and community response organisations, which includes funding so far of £500,000 each for Social Bite, FareShare and Cash for Kids.

Communities Secretary Aileen Campbell said: “As part of Scotland’s £70 million Food Fund, we’re making an initial £10 million available to help support community food projects, and these latest grants will help ensure people are not only fed but treated with dignity.

“I am very grateful to be working alongside the Trussell Trust, FareShare and other members of the Independent Food Network to provide people at risk in our communities with the basic essentials their families need. I’m particularly pleased that FareShare is now working closely with many councils to strengthen local responses.

“The existing close partnership working we already had with these leading food charities has significantly stepped up to ensure people who are in the greatest financial risk as a result of the impact of the pandemic have access to food and basic essentials.

“Uniquely among the countries of the UK, the ‘cash-first’ elements of approach mean that where people can safely get out to buy food, we make sure they have access to the cash to do so.

“This is the most dignified way we can provide food support and we will continue to do all we can to help people overcome any barriers in their way. I am pleased that these charities have welcomed this approach as the most dignified way of supporting people with food insecurity.”

Martin Armstrong, Chief Executive Officer of Wheatley Group, said: “We are delighted the Scottish Government has agreed to help fund our EatWell emergency food delivery service over the next three months.

“This support will be very much appreciated by the thousands of individuals and families in Wheatley homes across the country relying on this vital service. I am confident that by continuing to work well together, we will be able to tackle the considerable challenges posed by the coronavirus crisis.”

Emma Revie, CEO of the Trussell Trust, said: “We all deserve the dignity of having enough money to buy the essentials we need for ourselves and our families, so we welcome the cash-first approach from the Scottish Government that aims to get money to people who are financially vulnerable due to this crisis.

“Despite these efforts, we know that there will still be households across Scotland that will be unable to afford basics such as food.

“In response, we have been working closely with independent food banks, FareShare and the Scottish Government to overcome significant challenges in the supply chain and ensure food will be available to those most in need of help.”

Sabine Goodwin, Coordinator, Independent Food Network, said: “While supporting independent food bank teams working tirelessly to cope with increasing need across Scotland, the Independent Food Aid Network has appreciated being able to work collaboratively with the Scottish Government, FareShare and the Trussell Trust. 

“However challenging it is to distribute emergency food parcels to people who cannot afford food, we are trying to keep one eye firmly on the future and our joint vision of a Scotland without the need for charitable food aid.

“We very much welcome the Scottish Government’s support of communities at this time and particularly its prioritisation of cash first solutions and investment in the Scottish Welfare Fund.”

Gillian Kynoch from FareShare said: “The Scottish Government has worked hard to ensure we are integrated into the Local Authority response in each area to coordinate support for the self-isolating, over 70’s, and those experiencing – and at risk of – food insecurity.

“Many community food organisations that normally provide cooked meals to support vulnerable or low income people, older people lunch clubs, after school clubs, community cafes, have had to close their doors.

“These same groups and many others have adapted quickly and swung into action providing food parcels and hot meals delivered to people at home.  The scale of this challenge has been significant but our collective ramp-up has been helped by a big response to our call for volunteers. So many that we are now operating reserve lists – which is fantastic.”

Flight from China delivers vital NHS supplies to Scotland

A charter flight carrying essential personal protective equipment (PPE) and NHS supplies has landed in Scotland.

The cargo which included around 10 million face masks as well as infusion pumps for Intensive Care Units and virus collecting kits for use in health laboratories, landed at Glasgow Prestwick Airport from China on Saturday morning.

Minister for Trade, Investment and Innovation Ivan McKee said: “Scotland’s health and social care system is facing unprecedented demand.

“Protecting staff working on the frontline is an absolute priority which is why we have been working at pace with the NHS and manufacturers both in Scotland and internationally to improve and increase the supply of PPE.

“This charter flight, carrying additional equipment ordered by the Scottish Government, is significant and we will be focusing the distribution of these supplies to health and social care settings over the coming days.

“In these incredibly challenging times the Scottish Government will continue to do all it can to make health and social care staff feel as safe as possible in their workplace.”

Jim Miller, Director of Procurement, Commissioning and Facilities at NHS National Services Scotland (NSS), said: “This delivery is the result of a painstaking collective effort involving multiple partners working together to provide our NHS and social care colleagues with the PPE they need to keep them safe.

“Together with supply partners and Scottish Government, NSS continues to work 24/7 to source and supply the PPE that Scotland needs to fight COVID-19.”

Coronavirus: 140,000 children and young people provided with free school meals

Around 140,000 children and young people across Scotland are being supported with the provision of a free school meal as part of efforts to support the most vulnerable children during the coronavirus (COVID-19) outbreak.

Local authorities are providing the majority of meals through vouchers, direct payments or home deliveries, according to the latest monitoring data.

Meals are also provided at some education-early years hubs, around 400 of which are open across Scotland to ensure continuity of education and pastoral care for vulnerable young people including those with additional support needs, as well as children of key workers.

New guidance to support continuity of learning at the start of term 4, which for the vast majority of children and young people will be experienced at home, will be published in the coming days as Easter school break ends. The Parent Club Scotland website also continues to be updated with a range of advice and support through the COVID-19 outbreak.

The Scottish Government is working with a range of partners to support children and families and mitigate the impact of the outbreak and the necessary social distancing measures on education and other vital services to support health and wellbeing.

Funding has been provided for a range of local and national projects, including through the £350 million Communities support package announced last month to help those most affected by the COVID-19 pandemic. This includes extra support for care-experienced young people, providing updated advice and IT support for families, and responding to a rising demand for counselling from children and young people.

Deputy First Minister John Swinney said: “In the midst of this terrible pandemic, with the harm and potential harm to our loved-ones and communities, Ministers remain steadfast in our determination to support children and families, both for their health and wellbeing and to help everyone continue their learning, whether through the education hubs or with home learning.

“Free school meals are a key measure for families, children and young people who need some extra help and I am pleased that so many are receiving them. We have worked closely with local authority partners to ensure they are able to put in place provision that meets local needs and circumstances.

“As schools term 4 starts in the next few days, we will be publishing guidance from Education Scotland, both for teachers/practitioners and for families, to support continued learning. This will provide information about curriculum, teaching and learning at home, including digital learning, and include sources of further advice and support.

“I am grateful for the commitment of all those working in Scotland’s education system in their efforts to support families and learners during this difficult time. Parents and young people too must be commended for how they have responded to the disruption caused by COVID-19 and by the very necessary closure of schools.

“The Scottish Government will continue to review the available advice and guidance to ensure parents, carers and learners get the support they need, when they need it. That includes work with key partners to provide and adapt a range of support for those children and families facing particular disadvantages or additional vulnerabilities during this crisis.”

Cllr Stephen McCabe, COSLA Spokesperson for Children and Young People, added: “In the face of the massive challenge posed to our communities by the coronavirus, Local Government has moved quickly to support those most in need.

“With the closure of schools and early learning and childcare settings councils have rapidly set up bespoke methods to ensure that eligible children continue to receive free school meals, whether that is through vouchers, direct payments, home deliveries or providing food through community hubs.

“Councils will continue to work at the front lines to make sure that the most vulnerable in Scotland’s communities are supported as we respond to COVID-19.

An estimated 122,000 children and young people are eligible for free school meals because their families are in receipt of qualifying benefits.

The Scottish Government provided local authority partners with £30 million of new investment to support families unable to access food as a result of COVID-19, with £15 million specifically for free school meals.

Information about free school meals can be found on the MyGov website.

Thousands of businesses benefit from support grants

More than £215 million has been awarded to over 18,000 Scottish business ratepayers in just two weeks, the Scottish Government has announced.

The money has been allocated under two new schemes to help firms combat the effects of the coronavirus (COVID-19) outbreak.

Latest Scottish Government figures show that 59,385 applications were made to 32 local authorities for the business grants by April 14 this year. There have been 18,528 grants awarded so far worth £215,445,000.

Finance Secretary Kate Forbes said: “We are doing everything we can to support business at this very difficult time and will continue to listen to and engage with the sector. Our total support for Scottish business now exceeds the £2.2 billion passed on from the UK Government.

“The fact we have managed to pay out this large amount to so many businesses across Scotland is a substantial achievement and demonstrates the capability of our partners in local government. I am grateful for their continued efforts in helping to deliver these vital grants.

“In addition to our generous backing for businesses we are also committed to helping sectors of the economy that are not being supported in other parts of the UK such as aviation, seafood fishing, fish processing and farming and charities.

“This scheme complements other support available and many businesses applying will also be eligible for the furlough scheme and rates relief. I would encourage only businesses who need support to apply, enabling us to direct as much help as possible to those who need it most.

“We promised to pass every penny received from the UK Government on to businesses in Scotland and we are. Our priority remains to protect lives but we are doing all we can to protect livelihoods too.”

Business Gateway has been working closely with local authorities to support the delivery of grants throughout Scotland.

Councillor Steven Heddle, COSLA’s spokesperson for Environment and Economy, said: “I want to thank council staff and colleagues from Business Gateway for their incredible efforts to implement the grant schemes so quickly.

“Small to medium-sized enterprises have been severely impacted so delivery of support grants as quickly and effectively as possible is a top priority.

“This support will be fundamental in helping businesses put plans in place to recover and grow beyond this crisis, protecting jobs and supporting economic recovery in communities across the country.”

The funding has been allocated between two funds:

· The Small Business Support Grant scheme allows small businesses to apply for grants up to £10,000.

· The Retail, Hospitality and Licenced Premises Support Grant allows firms to apply for up to £25,000.

Compared with a week earlier, grant applications grew by around 10,000, awards by around 11,000 and the value of payouts by around £127 million. On April 6, the totals stood at 49,214 applications received, 7,650 paid out, worth £88,625,000.

Business Gateway delivers advice and support to Scottish businesses on behalf of COSLA.

More support for Scottish businesses

Around £220 million of further grants are being made available for businesses – including the recently self-employed – to help them deal with the ongoing impact of the coronavirus (COVID-19) outbreak.

The new package of measures includes £120 million to extend the Small Business Grant scheme to ensure that, in addition to a 100% grant on the first property, small business rate payers will be eligible to a 75% grant on all subsequent properties.

A further £100 million fund is also being made available to protect self-employed people and viable micro and SME businesses in distress due to COVID. This fund will be channelled through local authorities and enterprise agencies to target newly self-employed people and businesses who are ineligible for other Scottish Government or UK Government schemes.

Applications for the £100 million fund will be open by the end of the month, and the new arrangements for the Small Business Grant will be in place to receive applications on 5 May.

Finance Secretary Kate Forbes said: “The Scottish Government’s primary concern remains protecting people’s health, but it is still the case that the Coronavirus (COVID-19) outbreak is having severe economic consequences for businesses around the country.

“We are doing everything we can to support business at this difficult time and we continue to listen to and engage with the sector.

“Our support for business now exceeds the £2.2 billion passed on from the UK Government and actively works to fill the gaps in the UK schemes.

“Around 100,000 businesses in total are already eligible for our small business grants and from today we will be extending that scheme in response to feedback from businesses on the frontline of this economic crisis.

“The creation of a £100 million fund is to help those micro and SME businesses who face immediate cash flow challenges, are ineligible for other schemes and are the productive base for supporting employment in the future. It will also support those newly self-employed people who are also ineligible for UK schemes and will be a vital lifeline for many businesses and individuals across Scotland.

“With UK Government support not being available until June, we are going further to secure the future economic viability of Scottish firms and applications will be open by the end of the month.

“While many businesses are in difficulty, some are doing better than others or can pull through from their own resources.

“Just as we ask the public only to buy what they need in the supermarkets, we are asking businesses who do not need this vital help to refrain from claiming additional support unless absolutely necessary so we can direct as much help as possible to those who need it most.”