Scottish Government – Page 335 – The NEN

Scotland’s revenues grow by £3 billion

DEFECIT CONTINUES TO FALL

Scotland’s notional deficit is falling faster than the UK’s, with onshore revenues increasing by 5.1% to reach £61.3 billion in 2018-19 as a result of continued economic growth.

According to the Government Expenditure and Revenue Scotland (GERS) figures published yesterday, Scotland benefitted from a £3 billion increase in onshore revenues in the last year – the fastest growth since 2010-11 as the overall notional deficit fell by £1.1 billion to 7.0% of GDP, down from 8%, in 2018-19.

The reduction in the notional deficit is the result of revenues growing at a faster rate than expenditure.

Commenting on the latest figures during a visit to manufacturing company Armadilla Ltd in Bonnyrigg, Finance Secretary Derek Mackay said: “With record tax revenues, strong economic growth and near record low unemployment, Scotland’s economy and public finances are strong. Today’s figures show overall revenue in Scotland reached £62.7 billion – exceeding £60 billion for the first time – reflecting the strength of our economy.

“Our notional deficit has fallen while public spending has increased thanks to our efforts to grow the onshore economy and the strong performance of taxes in Scotland. The Scottish Government’s choices on taxation are helping to create a more progressive tax system.

“This strong performance from Scotland’s economy is at risk as a result of the UK Government’s EU exit plans, and in particular a ‘no deal’ Brexit, which poses a severe threat to jobs, investment and living standards

“A ‘no deal’ Brexit could reduce revenues in Scotland by around £2.5 billion a year, holding Scotland back and demonstrating why people in Scotland increasingly recognise the importance of making our own decisions.

“These figures reflect Scotland’s position as part of the UK. The Scottish Government believes we could unlock our full potential with independence, allowing us to take the best decisions for Scotland.

“As we have always said, Scotland has a strong, and growing, economy and our future will be far brighter as an independent member of the EU.”

Westminster puts a different slant on the latest figures, of course. Commenting on the Scottish Government’s GERS figures for 2018-19, Scottish Secretary Alister Jack said: “Today’s GERS figures show clearly how Scotland benefits from being part of a strong UK with every man, woman and child in Scotland receiving a ‘Union dividend’ of nearly £2,000 a year.

“These Scottish Government figures also show there would be a £12.6 billion black hole at the centre of an independent Scotland’s finances. Real questions need to be asked about the First Minister’s stewardship of the country’s economy.

“With Scotland’s deficit now more than six times greater than the UK average, the Scottish Government needs to take action.

“Scotland remains the highest taxed part of the UK. This is harming our economy and should be a huge concern to us all.

“The UK Government is investing in Scotland to deliver jobs, opportunities and sustainable growth, including £1.4 billion for city and growth deals. We are working hard to support businesses and bring further opportunities as we leave the EU on 31 October.”

The UK Government notes:

Using the Scottish Government’s own data, public spending in Scotland was nearly £1,661 per head higher than that of the UK average. In other words, in 2018-19 it was 13.6% higher than the UK average. Over the last five years, this gap has been on an upward trend from £1,182 or 10.2% in 2014-15 and £1,661 or 13.6% in the latest full financial year.
Scotland’s tax contributions, at £11,531, continue to be around £307 per head less than the UK average, at £11,838.
Scotland’s deficit [or borrowing] was nearly £1,968 per person larger than the UK average in 2018-19.
Scotland contributed 8.0% of UK tax and received 9.3% of UK spending in 2018-19 (Scotland’s population share was 8.2% in 2018-19), demonstrating how Scotland receives secure and stable levels of spending irrespective of the volatile tax revenues from the North Sea.
Whilst Scotland’s share of UK total revenue has marginally increased over the last year, it is generally on a downward trend. Since its peak at 9.7% in 2008-09, Scotland’s contribution to UK revenues has been on a downward trend in subsequent years and is currently at 8.0% of the UK total. This is marginally up from 7.9% the year before.
Total North Sea revenues fell slightly from £1.30 billion in 2017-18 to £1.24 billion in 2018/19. This is up from a low of minus £85 million in 2015-16 and down from a peak in 2008-09 of £10.6 billion.
Scotland’s net fiscal balance as a share of GDP was –7.0%, compared to –1.1% for the UK overall. This decreased from –8.1% in 2017-18, compared to the UK overall, which came down from –2.0%. In absolute terms, Scotland’s deficit was £12.6 billion in 2018-19, down from £13.8 billion in 2017-18 (incl. North Sea revenues).
While Scotland’s overall fiscal position improved in 2018-19, Scotland’s deficit as a share of its economy is over 6 times higher than that of the UK.

You pays your money, you takes your choice. Make your own mind up:

The full statistical publication is available at http://www.gov.scot/gers

Money Talk Team benefits thousands of families

Free advice service helps low income households save more than £6 million.

Low-income families who seek free financial advice from the Money Talk Team are on average now £1,850 better off.

The service offers one-stop, personalised advice on dealing with debt and ways to reduce household bills.

With around 450,000 cases of unclaimed benefits in Scotland, it also helps low-income families identify what financial support might be available. The service is supported by Scottish Government funding of £3.3 million over two years.

In the last nine months, the Money Talk Team has helped a total of 3,198 people be better off by more than £6 million – meaning households benefit by more than £1,850 on average. A total of nearly 8,000 people have accessed the service.

Launching a national advertising campaign to raise awareness of the Money Talk Team, Communities Secretary Aileen Campbell said: “The Money Talk Team is making a huge difference to the thousands of families that have already taken advantage of this free service.

“The friendly, experienced advisers talk callers through the options available, letting them know exactly what they are entitled to and helping them save money.

“But there are still too many families out there not getting what they should be.

“If you’re a parent struggling to pay the bills at the end of the month, you’re not alone. It doesn’t matter if you’re in or out of work, one call to the free phoneline is all it takes to get some advice that could be a massive help to your household.”

Money Talk Team is the new name for Financial Health Check, which started in 2018 and is delivered by Citizens Advice Scotland. It can be accessed through their free helpline on 0800 085 7145 or by visiting a local Citizens Advice Bureau.

Doubts over Erasmus+ after EU exit

The Scottish and Welsh Governments have raised serious concerns about the impact of a ‘no-deal’ Brexit on the popular Europe-wide international student exchange program Erasmus+.

In a letter to Secretary of State for Education Gavin Williamson, Scottish Further and Higher Education Minister Richard Lochhead and Welsh Education Minister Kirsty Williams have argued the case for continued participation in the exchange programme.

They say leaving the EU without a deal – and without the UK Government reaching an alternative Third Country agreement or other arrangement – would see universities, colleges, and schools across the UK ineligible to submit applications to participate in the final year of the current Erasmus+ programme in 2020.

Between 2014 and 2018, more than 15,000 students and staff from Scotland reaped the benefits of the EU-led scheme, which allows funded temporary study overseas as part of the their Scottish courses.

Mr Lochhead said: “Thousands of Scottish students benefit from Erasmus+ yearly, proportionally more than from any other country in the UK. The Scottish and Welsh Governments are clear that we must remain a full participant in Erasmus+.

“I am also alarmed to hear the UK Department for Education could be considering an Erasmus+ replacement programme for England only – with potentially no consequential funding for Devolved Administrations (DAs) to put in place their own arrangements. That’s why we have written to the UK Government calling for urgent action and assurances that Scottish students won’t miss out.

“It is the Scottish Government’s preference to remain in the EU, but in the event of a damaging ‘no-deal’ Brexit, students could now see the door to this fantastic cultural and educational exchange slammed shut.

“It is unacceptable that with less than 12 weeks left until the UK Government plans to take the United Kingdom out of the EU without an agreement in place, there is still no plan for alternative arrangements.”

Two recent studies have underlined how Erasmus+ continues to enhance students’ quality of life and career prospects – both during their course abroad, and long after it finishes. The research also highlights the programme’s success at driving innovation and social inclusion in higher education.

The results of the impact studies show Erasmus+ significantly benefits students’ career prospects and personal development. The programme can act as a guide for students to discover what they want to do after their studies – making for a happier career; Erasmus+ has also been shown to drive innovation and social inclusion in higher education.

Every year, more than 300,000 students study or train under the Erasmus+ umbrella – over five million students have directly benefitted since the launch of the programme in 1987. The Higher Education Impact study found that 80 percent of Erasmus+ graduates are employed within three months of graduation, with 72 percent stating their Erasmus+ experience helped them land their first job. Nearly half of Erasmus+ trainees were offered a job in the company where they trained.

More than two-thirds of Erasmus+ students and trainees gained new insight about their career choices through studying or training abroad. This added awareness has allowed students to better orient their studies and training to match their career ambitions – leading to both happier careers and expanded professional opportunities.

The studies have also highlighted how Erasmus+ builds a sense of European identity and social cohesion. 90 percent of Erasmus+ students feel the programme has improved their ability to collaborate with people from different cultures, and are more positive about the role of the EU in society.

Erasmus+ mobility also supports the growth of innovative learning and teaching practices – as well as the expanded use digital technologies. Nearly 80 percent of academics reported their experience abroad has led to the development of more modern and innovative teaching practices and curricula in their faculties.

The impact study on Erasmus+ Higher Education Strategic Partnerships and Knowledge Alliances found that Erasmus+ has spurred equality in education – with nearly two-thirds of universities stating projects under Erasmus+ have increased social inclusion and non-discrimination in higher education.

Cooperation projects under Erasmus+ have also allowed students, higher education staff and other stakeholders to develop vital innovation and business skills. Over one in four projects under Erasmus+ contribute to strengthening entrepreneurial education and entrepreneurship – with nearly a third of these projects resulting in start-ups and spin-off enterprises.

Record numbers access increased school holiday support

Access to healthy food and activities for more children

A record number of children have benefitted from holiday activities and nutritious meals while schools are shut. With Edinburgh pupils going back to school today, national charity Cash For Kids expect to provide activities to more than 61,000 children, up from the 37,000 children supported last year.

National charity Cash for Kids received £250,000 to fund a range of community groups offering holiday programmes, linking up with local authority activity across Scotland.

Communities Secretary Aileen Campbell visited Milton Holiday Hub in Invergordon, which provides one-stop access to childcare, activities, healthy food and family support. It is part of a pilot scheme to widen access to children in rural locations.

Highland Council and third sector partners received £43,000 Scottish Government funding to run the hub five days a week over the summer holidays, providing childcare as well as activities, meals and wider family support.

Ms Campbell said: “School holidays should be a time for fun and excitement for children, but for some families it brings financial pressures, particularly due to UK Government welfare cuts and austerity. We want to ensure that families who need additional support have access to a place where their children can go and receive a healthy meal and take part in fun activities.

“The partnership with local authorities and the third sector is key to tackling food insecurity and child poverty. This is a priority for this government and we are ensuring that those most in need receive the right support.

“We also recognise that there are specific barriers to accessing support in rural communities which we’re overcoming with the Milton Holiday Hub this summer. This helps ensure those communities are able to still receive support while the local school is closed.”

The Scottish Government has focused £2 million from the £3.5 million Fair Food Fund specifically on school holidays, with £692,000 awarded for 2019-20 to support families send their children to a holiday club scheme.

Continue reading Record numbers access increased school holiday support

Best Start Foods payment launched

Payment card replaces paper vouchers

Pregnant women and families with babies and children receiving certain benefits are to be offered increased access to healthy foods. The new Best Start Foods payment replaces the UK Government’s Healthy Start paper vouchers with a new payment card, and it’s now open for applications. Continue reading Best Start Foods payment launched

£8 million nature boost for urban communities

Almost £8 million of funding has been announced to help people and nature thrive in some of the most deprived parts of Scotland.

The latest round of Scottish Natural Heritage (SNH)’s ambitious Green Infrastructure Fund will support seven major projects in cities and towns across the central belt. Continue reading £8 million nature boost for urban communities

FM announces more action to address climate change

New measures announced as Cabinet meets in Stirling.

First Minister Nicola Sturgeon has officially opened a new £6 million project which uses cutting-edge renewables technology to harness energy from waste water.

Ms Sturgeon launched the Stirling District Heat Network project while visiting the city as part of the 50th Travelling Cabinet.

The project, which received £2 million support through the Scottish Government’s Low Carbon Infrastructure Transition Programme, was developed collaboratively with Stirling Council and Scottish Water Horizons. It is the first of its kind in the UK and will provide affordable and low-carbon heat to the local Stirling community.

The announcement is part of a new package of announcements made in Stirling – which is aiming to become Scotland’s first carbon neutral city – to tackle the global climate emergency. The Cabinet is meeting in the city to discuss key issues affecting the local community, including climate change, and Ministers will also be engaging directly with local residents at a public meeting held in the newly refurbished Engine Shed building.

Carbon emissions resulting from the Travelling Cabinet will be offset by the planting of trees in a local community forest, and the Scottish Government has also committed to ensuring all future similar meetings are as low carbon as possible.

In addition, £300,000 is to be invested to expand the Climate Ready Classrooms initiative to help young people aged 14-17 to develop their understanding of climate change, its causes and potential impacts. The programme aims to engage with at least 50% of Scotland’s secondary schools in the next two years and accredit almost 5,000 young people as carbon literate.

There was also additional support announced for communities across Scotland to undertake their own Big Climate Conversations, which will feed-in to the Scottish Government Public Engagement Strategy on climate change.

Ms Sturgeon said: “Earlier this year Scotland became one of the first countries in the world to acknowledge the fact that we are facing a global climate emergency, and it is only right that we take appropriate action – with all policies being re-examined to ensure they meet our climate ambitions.

“That’s why the action we’ve announced today is important – and it will build on the world-leading measures already underway to address the climate crisis we face.

“We have already proposed one of the most ambitious statutory emissions targets anywhere in the world, and today’s announcements illustrate our commitment to developing new and innovative policies which will make a real difference.

“The Stirling Renewable Heat Demonstration Project is a great example of this, using waste water to help provide energy to local businesses and public buildings.

“We are also changing the way we work as a government to provide an example to others, and our commitment to ensure future meetings are as low carbon as possible is testament to this.”

Leisure centres ban high energy drinks for under 16s

Publicly funded leisure centres in all local authorities have now banned the sale of high-energy soft drinks to young people under the age of 16.

The restriction will apply to soft drinks with an added caffeine content of more than 150mg per litre. Continue reading Leisure centres ban high energy drinks for under 16s

Brexit ‘no deal’ preparations stepped up

First Minister warns a ‘no deal’ exit will “inevitably cause disruption”

The Scottish Government will do everything in its power to stop a deeply damaging ‘no deal’ Brexit, the First Minister has confirmed.

At a cabinet meeting ministers also agreed to step up preparations for a ‘no deal’ after the UK Government’s refusal to enter into negotiations with the EU made such an outcome more likely.

The First Minister will chair a meeting of the Government’s Ministerial Group on EU Exit Readiness next week.

The First Minister said: “In its first week the UK Government has shown it is willing to risk a ‘no deal’ Brexit. Taking Scotland out of the EU in any way is deeply undemocratic but the Prime Minister’s refusal to engage with the EU has dramatically increased the prospect that we will face a deeply damaging ‘no deal’ Brexit.

“If the Prime Minister continues with this approach Scottish jobs will be lost and our economy seriously damaged and it will be entirely the UK Government’s responsibility.

“Having assessed the actions of the new UK Government our work to prepare for ‘no deal’ will intensify in the coming weeks and months. But even with the best possible preparations, leaving the EU without a deal will hurt Scotland’s businesses, disrupt trade and impact on all aspects of society. There is simply no way to mitigate every impact that ‘no deal’ will have, no matter how hard we try.

“The willingness of the UK Government to pursue this approach, against all the evidence, shows why we must continue to make preparations for a referendum that will give people the right to decide Scotland’s future, instead of being dragged out of the EU against their will.”

Despite the Scottish Government’s concerns a No Deal Brexit is looking increasingly likely. The EU is not minded to renegotiate an agreement and the Westminster government’s rhetoric suggests that the UK will leave the EU on 31 October, deal or no deal.

Yesterday, Communities and Local Government Secretary Rt Hon Robert Jenrick MP (above) said local councils should be fully prepared to leave the European Union by the end of October, as he ramped up preparations.

Mr Jenrick thanked councils for all the work they have already done, but said they must step up vital preparations and committed £20 million for councils across England to prepare for delivering Brexit on 31 October, whatever the circumstances.

He has asked each council to designate a Brexit lead to work with central government and oversee teams in every community who will work with stakeholders in their area to plan intensively for Brexit.

The new funding comes in recognition of the central role councils will play to make sure their residents are ready for Brexit, and is expected to support a range of activity including communications, training and the recruitment of staff.

Mr Jenrick will continue to talk to local council leaders to give them the opportunity to discuss preparations and the opportunities of Brexit ahead.

Communities and Local Government Secretary Rt Hon Robert Jenrick MP said: “From Whitehall to town halls – everyone needs to be ready to fulfil our democratic mandate to leave the European Union by the end of October.

“Local government has a vital role in helping to make Brexit a success and it is absolutely right that together we intensify preparations in every community.

“And to do this successfully I have asked every council (in England – Ed) to appoint a Brexit lead to work with government. We’ll be providing £20 million for councils to support the major step up in preparations.

“I want all of us – central and local government – to be fully prepared for leaving the EU on 31 October whatever the circumstances. I know that we can achieve this, by continuing to work side by side with renewed national focus and intensity.”

The UK government recognises that certain areas face more acute pressures. It is currently considering how best to allocate funding to ensure that those areas where greater impacts are expected, such as high impact ports of entry, get the funding they need in order take appropriate steps.

At his first meeting with senior leaders from English local authorities since becoming the Communities and Local Government Secretary earlier this week, Mr Jenrick told representatives that the government will support them to ensure they are ready to leave the EU in just under 90 days’ time.

Departments will continue to assess and, if appropriate, fund any potential new requirements of local authorities as part of Brexit work they are undertaking.

In January the UK Government committed £58 million of funding to support local authorities in their preparations for Brexit.