Education Secretary Jenny Gilruth has announced £900,000 in new funding for staff to tackle poor behaviour and attendance in schools.
The funding will be provided directly to local authorities to train support staff to respond to new challenges and develop behaviour management strategies in schools post COVID.
It comes as part of a multi-year plan that is being developed in conjunction with key stakeholders and will set out actions at national, local and school level to improve behaviour and support better relationships.
Actions include:
the new Interim Chief Inspector being tasked with ensuring HMI inspections are accurately recording behaviour to ensure any issues are tackled as soon as possible
a call for more accurate and robust recording of any incidents of poor behaviour in schools
a dedicated approach to responding to issues regarding misogyny
Ms Gilruth said: “It is important we keep the big picture in mind, with research published yesterday showing staff reporting generally good behaviour amongst pupils. However, the status quo is not an option and the plan I am setting out today will provide the support necessary to help tackle these problems at the root.
“I am absolutely clear that our schools should be safe and consistent learning environments for all. No teacher, or support assistant should face violence or abusive behaviour at work. We cannot suggest that the pandemic has not exacerbated inequity and nor must we blame it for these challenges.
“Schools, equally, can’t do this all alone; they need help. We have to enact a national plan which better supports our teachers and support staff in the workplace; recognising the role of Local Government as employer.
“And that plan has to better protect the learning outcomes for our young people – the vast majority of whom are well behaved. That is the prize that better behaviour in our schools can deliver – and I look forward to working with our partners to deliver just that.”
Education Secretary Jenny Gilruth has set out a multi-year plan to address instances of poor behaviour and relationships in schools during a statement in @ScotParl.
Headteachers, teaching unions, local authorities, parents, carers and children and young people will help inform the national action plan to improve behaviour and support better relationships in schools.
The plan will be developed in the coming weeks and published in the new year.
‘Planet is at a tipping point – radical action is needed’ – HUMZAH YOUSAF
First Minister Humza Yousaf will urge world leaders to show ambition, work together and demonstrate radical action to tackle the global climate crisis at COP28.
Arriving in the United Arab Emirates for the global climate conference, the First Minister said Scotland will continue to call for loss and damage funding that prioritises the needs of vulnerable communities and take a lead on addressing the biodiversity and the climate crisis.
During COP28, the First Minister will hold bilateral meetings with international leaders and Global South partners to hear firsthand their experiences and priorities for global action, engage with businesses and organisations, launch the Scottish net zero business programme to tackle the climate crisis and speak at events to showcase how Scotland is taking innovative action to support the drive to a just transition.
The Cabinet Secretary for Transport, Net Zero and Just Transition Mairi McAllan will also attend part of the Conference, with a programme focused on showcasing the progress Scotland is making to deliver a just transition to next zero and continuing work to build renewables and hydrogen industries. She will meet with youth and gender organisations from the Global South.
The First Minister said: “Our planet is at a tipping point, radical and ambitious action is needed to limit global warming to 1.5°C. The gathering of the global community at COP28 is pivotally important in the fight against climate change.
“Only by working together can we meet the need and urgency of the task that lies ahead.
“Scotland has demonstrated that we can lead the way on taking tangible steps, however collective action is needed to tackle the climate emergency and address the devastating effects of climate change, in particular loss and damage. We simply do not have time to work alone when it comes to our just transition to net-zero.
“During the next two weeks, the Scottish Government looks forward to sharing our net-zero progress, showcasing our strides in sustainability and engaging in meaningful dialogue on climate action.
“COP28 also allows the Scottish Government to advance international relations and build partnerships. Scottish companies will be attending to enhance Scotland’s global reputation, particularly on renewable energy. It’s also an opportunity to attract investment in strategic net zero sectors in Scotland.”
Further engagements and bilateral meetings will be confirmed during the visit.
WESTMINSTER’s Scottish Affairs Committee has published the UK Government’s response to its report on Promoting Scotland Internationally, in which MPs found the UK and Scottish Governments often collaborate well when promoting Scotland’s interests abroad but more work is needed to highlight modern Scottish successes.
In its report, the Committee found a clear strategy was needed to ensure UK embassies have access to guidance and clear expectations for holding events on key Scottish dates such as St Andrew’s Day.
The cross-party group of MPs recommended embassy staff of all levels be trained up on the current Scottish industry landscape and the UK Government’s priorities for Scotland in order to ensure a more consistent base of knowledge.
They also found more needed to be done to celebrate contemporary Scottish successes in fields such as scientific research, space and energy in addition to the more traditional attributes of the Scottish brand which still resonate on the international stage.
In its response, the UK Government highlighted past events but didn’t commit to implementing a strategy for celebrating key dates in the Scottish calendar across all embassies.
The UK Government also indicated senior staff receive adequate training but did not commit to giving staff of all levels updated training on the Scottish market and industry landscape.
The UK Government indicated agreement with the Committee that officials from the UK and Scottish Governments regularly work collaboratively overseas in order to deliver the best possible outcomes, and also acknowledged the importance of maintaining regular communication between teams.
The UK Government failed, however, to address a number of the Committee’s recommendations, including no commitment to provide specific information on the UK Government’s current priorities and objectives for promoting Scotland internationally.
Scottish Affairs Committee Chair Pete Wishart MP said: “Scotland is home to a fantastic array of research and development organisations, businesses and academic institutions – so it’s critical that Scotland’s success stories are promoted in a consistent and coherent way on the world stage.
“As a Committee, we found there were differing levels of engagement and knowledge related to Scotland’s key interests around the globe as well as a lack of a clear idea of exactly what the UK Government’s priorities are for promoting Scotland internationally.
“As Scots worldwide celebrate St Andrew’s Day, I’m disappointed that the extent to which embassies around the globe are telling the nation’s story and celebrating Scottish culture will remain inconsistent.
“Unfortunately, it was hard to identify a clear plan which will ensure Scotland receives the international recognition it deserves. It is, therefore, difficult to see how the UK Government will fully support Scotland to maximise the potential offered by our brilliant industries.”
FPAC Convener Kenneth Gibson MSP said:“Scrutiny of this Bill reinforces our concern that affordability does not appear to be a key factor in Scottish Government decision-making.
“The Minister, Lorna Slater MSP, has committed to consult on the cost of secondary legislation, but that should not replace an assessment of affordability at the point of a Bill’s introduction.
“Our committee is not convinced that this Bill’s financial memorandum meets the requirements set out in Parliament’s Standing Orders to provide: “best estimates of the costs, savings, and changes to revenues to which the provisions of the Bill would give rise”.
Mr Gibson continued: “We’ve seen an increasing use of ‘framework’ bills that provide government with future enabling powers. These do not, however, provide best estimates of all likely costs, and undermine parliamentary scrutiny.
“It also risks the Parliament passing legislation which may in the end – once outcomes are fully understood – lead to significant cost increases.
“The increased use of framework bills with no clear implementation costs, poses a long-term risk to the Scottish Budget, both now and for successive governments.
“The FPAC is disappointed that Scottish Ministers have still to meet our previous recommendations or expectations around the level of financial data, clarity and transparency required.
“In the end, it will be for Parliament to decide when voting on the general principles of this framework bill, whether the outcomes it seeks to deliver outweigh any financial or affordability considerations.”
On income from fly-tipping and litter fines, the report said:
The assumption in this financial memorandum (FM) of a 100% payment rate for fixed penalty notices is entirely unrealistic. Therefore, given that the level of income from fines assumed in the FM is not attainable, it should not be used to ‘off set’ some of the costs of enforcement, such as in relation to fly tipping. We consider this approach to identifying potential savings to be unsatisfactory.
Updates every six months:
We request that the updates, committed to by the Minister in her letter of 20 November be provided to the Committee every six months. These updates should include updated information on the expenditure incurred to date, any changes in forecast costs and any savings arising from the Bill and the subsequent Act (subject to the Bill being passed) and relevant secondary legislation, until all provisions are operational.
Thousands of head teachers, teachers and support staff have shared their views on pupil behaviour and relationships in Scotland’s local authority schools.
The fifth edition of the Behaviour in Scottish Schools Research (BISSR) report found staff perceived the majority of pupils to be behaving well.
The report noted a deterioration in some pupil’s behaviour since the last research was conducted in 2016, thought partly to have been exacerbated by the COVID-19 pandemic and instances of poverty and destitution. The research also identifies a number of emerging trends in behaviour, including in-school truancy, vaping, disruptive use of mobile phones and misogyny.
Education Secretary Jenny Gilruth discussed the findings of the report as she chaired the third Behaviour and Relationships summit yesterday, bringing together teachers, union representatives, local authorities and other stakeholders.
The research comes as a further report by Education Scotland shows the impact the COVID-19 pandemic and the cost-of-living crisis has had on attendance levels for some pupils.
Ms Gilruth said: “We commissioned this research to provide us with the clearest possible picture on behaviour and relationships in schools. It builds upon my own extensive engagement with teachers, school leaders, support staff and local authority colleagues to fully understand how our pupils are interacting with each other and their teachers.
“It is clear from the responses that most teachers report good behaviour amongst pupils – this provides some important nuance to this issue and must be at the forefront of our plans to tackle the instances of disruptive behaviours. Young people must not be demonised, and poor behaviour cannot be generalised.
“Our young people have faced a huge amount of disruption in recent years due to the COVID-19 pandemic which has been compounded by the current cost of living crisis – this is not unique to Scotland.
“Tomorrow (Wednesday) I will set out to Parliament our plans to engage with local authorities and schools to ensure a plan of action is taken forward to tackle instances of poor behaviour at the root as soon as possible.
“I plan to engage directly with young people on this matter to ensure their voices are front and centre – as well as with teachers and school staff, to ensure they are fully supported in responding to these challenges.”
The Scottish Childrens Services Coalition (SCSC) is an alliance of organisations that support children and young people who have additional support needs.
SCSC responded: “This report noting a perceived decline in pupil behaviour, especially since 2016, should come as no surprise.
“Many disruptive incidents are linked to pupils with additional support needs (ASN), with numbers more than doubling since 2012, and now amounting to more than a third of children, who are also experiencing an increasing complexity of need. These numbers have been exacerbated by the traumatic impact of the Covid-19 pandemic and the cost- of-living crisis, with us also facing a mental health emergency.
“However, this is set against a background of acute under-resourcing to support their needs, with the number of specialist ASN teachers falling by 546 between 2012 and 2022 as just one example.
“Additional funding is desperately needed to increase the support available to those with ASN, including specialist teachers, teaching assistants, mental health professionals and educational psychologists.
“While we support the principle of mainstreaming, that all children be taught in mainstream classes unless exceptional circumstances apply, this has never been properly resourced. Those with ASN are therefore frequently being inadequately supported, which is also impacting on other pupils.2
“Violence against any member of school staff or another pupil is never acceptable, and it is critical that with the Scottish Budget being published next month, our schools are given the necessary resources to ensure that they are safe places in which to work and to learn.”
Total spending on five family payments passes £596 million
The families of more than 323,000 under-16s were benefitting from Scottish Child Payment at the end of September, official statistics show.
Figures published today show the payment of £25 per week was reaching 323,315 children – an increase of more than 7,000 compared to 30 June 2023.
The Scottish Fiscal Commission had forecast that the average number of children receiving support in 2023/24 would be 309,000.
Today’s statistics release also shows that the combined overall amount paid out across Social Security Scotland’s five family payments, since they launched, is more than £596 million.
That’s made up of £458.5 million for Scottish Child Payment and £138.1 million for the rest of the five family payments – Best Start Foods and three Best Start Grants (Pregnancy and Baby Payment, Early Learning Payment and School Age Payment) combined.
The average time taken to process applications has also improved across the five family payments.
For Scottish Child Payment, the average wait was six working days in September, down from 13 working days in June.
For Best Start Grant and Best Start Foods, the average wait was four working days, down from 12 over the same period.
Cabinet Secretary for Social Justice Shirley-Anne Somerville said: “As the First Minister has made clear, tackling child poverty is a key mission for the Scottish Government and these figures show we are reaching more of the children and young people who need our help. We’re doing it more quickly too.
“It is estimated that Scottish Child Payment will lift around 50,000 children out of poverty in the current financial year.
“Our work with this uniquely Scottish benefit is in stark contrast with the UK Government’s approach of continued austerity, further outlined in the Chancellor’s Autumn Statement last week.
“Scottish Child Payment, Best Start Foods and our Best Start Grants provide a robust safety net and are among many actions we are taking in government to lift people out of poverty.
“However, I would continue to encourage people to spread the word as we want all eligible people to get the help they are entitled to.”
The Scottish Government has twice increased Scottish Child Payment; first from £10 to £20 per week per child then £25 when it extended to include all eligible children under 16 in November last year.
Proposals to replace fossil fuel heating with clean heating and improve energy efficiency
Clean heating systems will replace polluting heating systems in Scotland’s homes and buildings by 2045 under proposals published yesterday.
Under legislation to be introduced in 2025 which will start taking effect later in the decade, those buying new homes or buildings would be asked to move to a “clean” heating system, such as a heat pump or connection to a heat network, within a fixed period of time following that purchase.
Of the UK nations, Scotland continues to have the most generous funding package of grants and loans available to households who are seeking to switch to clean heating systems.
Minimum energy efficiency standards for Scotland’s homes could also be introduced to make them warmer and less expensive to heat.
Zero Carbon Buildings Minister Patrick Harvie said: “Heat from our homes and buildings represents around 20% of Scotland’s carbon emissions.
“So there is no route to meeting our legal duty to be a net zero country by 2045 without making the heat transition. Making this transition can also liberate households and businesses from volatile fossil fuel prices.
“There will be no ‘one size fits all’ approach to what we’re proposing – we recognise that different types of buildings in different areas need different solutions – but today we are giving certainty to households to plan and clarity for businesses to invest, with a pathway which recognises the cost pressures that so many of us are currently facing.
“We’ve already passed regulations for new buildings, to apply from next year. If Parliament passes our Bill in 2025, then regulations will start to apply from 2028, with many more buildings moving away from fossil fuel through the 2030s. That will see Scotland on by far the most ambitious path within the UK, with a deployment of clean heating systems at a scale and pace very much faster than at present.
“The UK Government has the opportunity to match our ambition by using its reserved powers to take urgent action to reduce the price gap between gas and electricity, and by regulating energy companies to play their full part in this transition.”
The consultation also includes measures to encourage the development of heat networks – giving those constructing these vital systems the confidence they need to invest on the basis that there will be sufficient demand.
The proposals follow this year’s introduction of a new build heat standard which means that any buildings constructed under a new warrant from April 2024 must have a clean heating system.
The Scottish Government is asking for views on proposals to form part of a Heat in Buildings Bill as set out in the Programme for Government.
Proposals include:
That private rented homes will be required to meet a minimum energy efficiency standard no later than 2028;
That owner-occupied homes will be required to meet the same minimum energy efficiency standard by the end of 2033;
That all homes and non-domestic buildings will be required to end their use of polluting heating by the end of 2045; and
In order to create a smooth trajectory towards 2045, that those purchasing a home or non-domestic property before 2045 would be required to end their use of polluting heating systems within a specific period following that purchase.
Also published today are proposals for a new Social Housing Net Zero Standard that would require social landlords to meet an energy efficiency standard between 2033 and 2040 and install clean heating across their stock by 2045 where it is technically feasible and cost-effective to do so.
Social Justice Secretary writes to DWP on work capability announcements
Changes to work capability assessments announced in the Autumn Statement are ‘deeply concerning’ and could mean people receive less support based on a change of criteria rather than a change in their health, Social Justice Secretary Shirley-Anne Somerville has said.
Writing to DWP Secretary Mel Stride, Ms Somerville highlighted how the Scottish Government has taken a different approach with its social security system being based on treating people with fairness, dignity and respect.
Ms Somerville said: “I remain deeply concerned about the changes to the activities and descriptors for ‘getting about’ for Limited Capability for Work, and the mobilising and substantial risk criteria for limited capability for work-related activity.
“The changes you are proposing, including the extension of the sanctions regime, will have very significant additional impact on some of the most vulnerable people in our communities who need our support most.
“In Scotland, we have taken a different approach to devolved employability support; our services remain voluntary, and we want the support we provide to be seen as an opportunity, not a threat, with fairness, dignity and respect at its heart.
“In delivering our first devolved employability service, Fair Start Scotland, Scottish Government officials had a close working relationship with Job Centre Plus to ensure we were collectively working to provide support for the people of Scotland.”
Record levels of investment will see an additional 153 trainee doctor posts created next year in what will be the largest ever annual expansion.
This level of expansion represents a 2.3% increase above the current whole time equivalent workforce of 6570 trainees.
The additional posts, costing £42m over the next four years, are being funded by the Scottish Government to help meet growing demand in a number of key specialties.
NHS Education for Scotland recommended uplifts in 24 different specialties overall, including anaesthetics, emergency medicine, general practice, intensive care medicine, paediatrics, psychiatry and surgery. Successful applicants will take up their posts in August 2024.
Health Secretary (at time of writing – Ed.) Michael Matheson said: “Funding for these additional places will help to relieve some of the pressures currently facing our health service.
“The level of expansion taking place in 2024 – the largest ever – shows the Scottish Government’s continued investment and commitment to ensure that our health service is equipped to deliver timely and effective care to those who need it.
“Under this government NHS staffing is at a historically high level – up by around 29,100 whole time equivalent.
“We will continue to work with NHS Education for Scotland to support our trainees and ensure that we have a sufficient supply of doctors to meet future demand.”
NHS Education for Scotland Medical Director Emma Watson said: “We welcome this announcement of additional posts across a wide range of specialties and in particular general practice.
“The increase will ensure we can support our doctors to work more flexibly where communities need them. We believe Scotland offers the highest quality medical education. Our trainees are a key part of the NHS workforce of the future – enabling us to offer better quality care and outcomes for every citizen in Scotland.”
Plan for stronger economy will reward hard work, putting £450 back into the pocket of the average worker earning £35,400 a year thanks to National Insurance tax cut from 12% to 10% for 27 million working people from January.
Tax to be cut and simplified for 2 million of the self-employed, abolishing an entire class of NICs and cutting the rate of the NICs top rate from 9% to 8% – with an average total saving of around £350 for someone earning £28,000 a year.
Biggest permanent tax cut in modern British history for businesses will help them invest for less and boost investment by £20 billion per year over the next decade.
Triple lock maintained for pensioners, benefits to rise in line with inflation and Local Housing Allowance increased to continue supporting families with the cost-of-living. Government is making work pay.
National Living Wage rise represents boost of £1,800 to the average annual earnings of a full-time worker, and the Back to Work Plan will help over a million people start, stay, and succeed in work while ensuring tougher consequences for those choosing not to.
Great British pubs, breweries and distillers backed by freezing alcohol duty for six months to August 2024.
Public finances in a better position than in March thanks to government action, with borrowing and debt as a share of the economy down on average across the next five years.
Autumn Statement gets the economy growing, debt falling and helps return inflation to its 2% target – long-term decisions to build a brighter future.
Tax cuts for working people and British business headlined Chancellor Jeremy Hunt’s ‘Autumn Statement for Growth’ yesterday.
Aimed at building a stronger and more resilient economy, the Chancellor set out a plan to unlock growth and productivity by boosting business investment by £20 billion a year, getting more people into work, and cutting tax for 29 million workers – the biggest tax cut on work since the 1980s.
With higher revenues resulting from stronger growth than previously projected and the pledge to halve inflation having been met, the government has stabilised the economy through taking sound decisions. As set out by the Prime Minister this week, the stronger outlook means taxes can now be cut in a serious, responsible way.
To that end, Mr Hunt announced that a 2 percentage point cut to Employee National Insurance from 12% to 10% will come into effect from January 2024.
For the average worker earning £35,400 a year, that amounts to an over £450 annual tax cut – almost immediately improving living standards for millions of people and rewarding hard-work as the government builds an economy for the future.
Taxes for the self-employed will also be cut and reformed. From April 2024, Class 4 NICs for the self-employed will be reduced from 9% to 8% and no self-employed person will have to pay Class 2 NICs, saving the average self-employed person on £28,200 a year £350 in 2024/25.
Taken together, this is a tax cut of over £9 billion per year and represents the largest ever cut to employee and self-employed National Insurance. The independent Office for Budget Responsibility (OBR) says these reductions will lead to an additional 28,000 people entering work.
Cutting National Insurance will not lead to any change in NHS funding or pension payments. Services will remain unchanged and continue to be funded as they are now.
Businesses will also benefit from the biggest business tax cut in modern British history. As signalled at Spring Budget, the Chancellor announced permanent Full Expensing: Invest for Less for those investing in IT equipment, plant, and machinery.
Full Expensing: Invest for Less is an effective permanent tax cut of £11 billion a year, boosting business investment by £14 billion across the forecast period and helping to grow the economy.
With the tax cut now permanent, the UK will continue to have both the lowest headline corporation tax rate in the G7 and the most generous capital allowances in the OECD group of major advanced economies, such as the United States, Japan, South Korea and Germany.
Since the introduction of the super deduction – the predecessor to full expensing – in 2021, investment in the UK has grown the fastest in the G7.
To further ensure that work pays, Mr Hunt confirmed that the National Living Wage will increase by nearly 10% to £11.44 an hour from April 2024, the largest ever cash increase.
The Chancellor also reinforced the new £2.5 billion Back to Work Plan for those with long-term health conditions, disabilities and difficulties finding employment, which includes tough new sanctions for those who can work but choose not to.
The Chancellor also announced that the government will honour its commitment to the triple lock in full, with the state pension to increase by 8.5% in April in what is the second biggest ever cash increase. Universal Credit and other working age benefits will also be boosted by 6.7% in April, in line with September’s inflation figure as is convention.
Further action to help families includes increasing the Local Housing Allowance rate to cover the lowest 30% of rents from April – benefiting 1.6 million households with an average gain of £800 in 2024/25 – and an alcohol duty freeze to 1st August 2024, following common-sense changes of the duty system made possible by Brexit.
Measures today take the government’s total support for the cost-of-living between 2022-25 beyond the £100 billion mark, to an average of £3,700 per household.
Accompanying forecasts by the OBR confirm that today’s measures will make the economy permanently bigger, with growth every year of the forecast period. Borrowing and debt as a share of the economy are lower than in Spring this year and next year, with borrowing also lower on average across the forecast by comparison. They also confirm that inflation is expected to return to target in line with the Prime Minister’s economic priorities.
Tax
With inflation halved and debt forecast to fall, Mr Hunt delivered on the government’s commitment to cut taxes – rewarding and incentivising work as part of its long-term plan to grow the economy.
The main rate of Employee National Insurance will be cut by 2 percentage points from 12% to 10%, coming into effect from January 2024 – delivering the benefit of a tax cut quickly for 27 million workers.
The combined rate of income tax and National Insurance for employees paying the basic rate of tax will therefore fall from 32% to 30% – the lowest combined basic rate since the 1980s.
The rate of Class 4 NICs on all earnings between £12,570 and £50,270 will be cut by 1p, from 9% to 8% from April 2024.
The weekly Class 2 NICs – the flat rate compulsory charge which is currently £3.45 paid by self-employed people earning more than £12,570 – will effectively be abolished, with no-one required to pay from April 2024. Access to contributory benefits will be maintained and those currently paying voluntarily will still be able to do so at the same rate. The cuts to Class 4 and Class 2 together amount to a tax cut of £350 a year for the average self-employed person on £28,200, with around 2 million individuals to benefit.
Business
Measures to back British businesses big and small will remove barriers to investment and help to bridge the productivity gap between the UK and its G7 peers – unlocking £20 billion extra business investment per year over the next decade.
Permanent Full Expensing will create the certainty that businesses need to confidently invest for less. A company can now permanently claim 100% capital allowances on qualifying main rate plant and machinery investments, meaning that for every pound invested its taxes are cut by up to 25p.
A business rates support package worth £4.3 billion over the next 5 years will help high streets and protect those small businesses that are the backbones of communities. This includes a rollover of 75% Retail, Hospitality and Leisure relief for 230,000 properties and a freeze to the small business multiplier, which will protect around 90% of ratepayers for a fourth consecutive year.
Pension reforms, including through establishing a new Growth Fund within the British Business Bank, will help unlock an extra £75 billion of financing for high-growth companies by 2030 while providing an extra £1,000 a year in retirement for the average earner saving from 18.
SMEs will be supported with tougher regulation on late payers to improve prompt payments, the expansion of Made Smarter in Great Britain and continued funding for Help to Grow.
The existing R&D Expenditure Credit and Small and Medium Enterprise Scheme will be merged from April 2024, simplifying the system and boosting innovation in the UK.
The rate at which loss-making companies are taxed within the merged scheme will be reduced from 25% to 19%, and the threshold for additional support for R&D intensive loss-making SMEs will be lowered to 30%, benefiting a further 5,000 SMEs.
The Climate Change Agreement Scheme will be extended, giving energy intensive businesses like steel, ceramics and breweries around £300 million of tax relief every year until 2033 to encourage investment in energy efficiency and support the Net Zero transition.
Work and welfare reform
Mr Hunt set out steps to reward work, help make work pay, and reform welfare in recognition of the need to expand the workforce and get those out of work back into work to deliver growth.
The OBR expect that the measures announced at Autumn Statement will support a further 78,000 people into work by 2028-29, on top of the 110,000 resulting from action taken at Spring Budget.
From 1 April 2024, the National Living Wage will increase by 9.8% to £11.44 an hour for eligible workers. For the first time this will include 21- and 22-year-olds. This represents an increase of over £1,800 to the annual earnings of a full-time worker on the NLW and is expected to benefit over 2.7 million low paid workers.
The government will also substantially increase the National Minimum Wage rates for young people and apprentices: for people aged 18-20 by 14.8% to £8.60 an hour, for 16-17 year olds and apprentices by 21.2% to £6.40 an hour.
The government is reforming the Work Capability Assessment to ensure that people who can work are supported to do so via the welfare system. Changes to the activities and descriptors will better reflect the greater flexibility and reasonable adjustments now available in the world of work, preventing some individuals from being deemed not fit for work and ensuring they will be better supported into employment.
The boosting of four key programmes – NHS Talking Therapies, Individual Placement and Support, Restart and Universal Support – will benefit up to 1.1 million people over the next five years.
The government is exploring reforms of the fit note process to provide individuals whose health affects their ability to work with easy and rapid access to specialised work and health support.
Mandatory work placements will boost skills and employability for those who have not found a job after 18 months of intensive support. Those who choose not to engage with the work search process for six months will have their claims closed and benefits stopped.
Infrastructure and levelling up
The Chancellor unveiled a raft of supply-side measures and funding packages to benefit businesses and local communities.
£4.5 billion of funding for British manufacturers in the high-growth industries of the future, including £960 million earmarked for the Green Industries Growth Accelerator to support clean energy.
The government has published its full response to the Winser review and Connections Action Plan, which will cut grid access times for larger projects by half, halve the time to build major grid upgrades and offer up to £10,000 off electricity bills over 10 years for those living closest to new transmission infrastructure.
Three advanced manufacturing Investment Zones will be established in Greater Manchester, East Midlands, and West Midlands – together generating £3.4 billion of private investment and creating 65,000 high-quality jobs within the next decade.
The Investment Zones programme and freeport tax reliefs will be extended from 5 years to 10 years, and a new £150 million Investment Opportunity Fund will support Investment Zones and Freeports to secure specific business investment opportunities.
Four new devolution deals across England have been agreed. Mayoral deals with Greater Lincolnshire and Hull and East Yorkshire, and non-mayoral deals with Lancashire and Cornwall, will boost investment right across the country and deliver on the Prime Minister’s commitment to levelling-up.
£500 million of funding over the next two years will help establish two more Compute innovation centres, supporting the development of artificial intelligence as a growth opportunity for Britain.
The life sciences will also be supported as one of the Chancellor’s key-growth sectors, with £20 million to speed up the development of new dementia treatments coming as part of the government’s full response to the O’Shaughnessy Review of commercial clinical trials in the UK.
To prioritise those who want to invest in the UK’s future, the government has accepted in principle the headline recommendations of Lord Harrington’s review into increasing foreign direct investment. This includes additional resource for the Office for Investment, allowing it to deepen its world-class concierge offer to strategically important investors.
Scottish Secretary Alister Jack said: ““This is an Autumn Statement to support hard working families and grow our country’s economy. It is great news for Scotland.
“The National Insurance cut and increase in the National Living Wage will mean a pay boost for millions of workers right across Scotland. We have honoured the pensions triple lock, meaning pensioners will get a £900 a year increase.
“Vital new support for Scottish businesses will ensure we get growth back into our economy.
“The Chancellor confirmed more than £200 million of new, direct UK Government investment in exciting projects across Scotland, which will create jobs, boost growth and transform communities.
“Plus, there will be an additional £545 million in Barnett Consequentials for the Scottish Government, on top of their record block grant.
“There is a lot to cheer about, not least the duty freeze on spirits to support Scotland’s biggest export industry.”
Rain Newton-Smith, Chief Executive, Confederation of British Industry said:“With tough decisions to be made, the Chancellor was right to prioritise ‘game-changing’ interventions that will fire the economy.
“While the move on National Insurance will give hard-pressed households some much needed breathing room, making full capital expensing a permanent feature of the tax system can be transformational for accelerating growth and improving living standards in the long-term.
“Helping firms to unleash pent-up investment is critical to getting momentum into the economy. Making full expensing permanent will give firms the stability they need to press on with decisions on investment whilst keeping the UK at the top table internationally for investment incentives.
“Moves to speed up planning and grid connectivity should also bolster business confidence to invest in high growth areas like green technologies, renewable energy and advanced manufacturing.”
Eve Williams, General Manager, eBay UK said: “The hundreds of thousands of UK small businesses who use eBay and other online marketplaces will warmly welcome the Chancellor’s cuts in national insurance, more support for the self-employed, as well as the decision to make permanent full expensing.
“There are enormous productivity gains to be had from encouraging the long tail of Britain’s SMEs to invest in existing digital technologies. And given that around half of our online businesses also trade offline, they will benefit hugely from the measures on business rates for retail as well as freezing the business rate multiplier.”
Kate Nicholls, Chief Executive, UKHospitality said:“The Chancellor has brought forward a significant package of business rates measures that will help hospitality businesses across the country. UKHospitality led the calls for Government to extend relief and take action on the multiplier and I’m delighted the Chancellor has acted on our asks.
“Reforms to the planning system to drive quicker approvals will remove a significant barrier to business investment. This type of reform to reward the best performing local planning authorities is exactly the type of change we have been suggesting to drive growth in hospitality.
“We’re also pleased that the Chancellor has acted on our proposal and frozen alcohol duty until August next year to support our supply chain.
“The reduction in National Insurance for employees will put more money in people’s pockets and provide a boost to hospitality in the New Year, often a challenging time for the sector.”
Responding to the freeze in alcohol duty until 1 August 2024
Nuno Teles, Managing Director, Diageo GB said:“Today we raise a glass to the Chancellor and the Prime Minister, who have listened to the industry’s plea for support and decided to back our homegrown sector, that employs so many people across the UK.
“Drinkers and pub-goers across the country now have even more reason to celebrate this festive season. Cheers, Chancellor!”
Responding to the announcement of £7million of funding to tackle antisemitism
Mark Gardiner, Chief Executive, Community Security Trust (CST) said:“The commitment to fund education to tackle antisemitism in universities and schools, alongside the promise to continue the increase in funding for security guarding in the Jewish community, is not just a welcome, concrete contribution to the fight against antisemitism: it sends an important and powerful message to the Jewish community that we have the sympathy and support of government in this struggle.
“We are grateful for the Chancellor for this commitment and we will work with government and communal partners to ensure it is put to effective use.”
Responding to the protection of the Triple lock
Caroline Abrahams, Influencing Director, Age UK said:“We’re pleased and relieved the Government kept its promise to older people to honour the Triple Lock.
“For the 4.2 million older people who recently cut back on food and groceries to make ends meet, having a State Pension that delivers the basics in life is essential.
“Today’s decision also crucially makes is more likely that older people will keep their homes adequately warm this winter, with less fear of facing an energy bill they simply cannot afford to pay come the spring.”
Responding to the support for Veterans
Anna Wright, Chief Executive, the Armed Forces Covenant Fund Trust said: “We are delighted by Chancellor of the Exchequer’s announcement of an additional £10 million to support the Veterans’ Places, People and Pathways programme.
“These projects have delivered significant work already to support our veterans, growing collaborative cross sector working and giving a more seamless interface between statutory and charity or not for profit support.
“They have great potential to help even more veterans, and further develop better, more inclusive local support and better coordination and communication that sustains into the future”
Autumn Statement offers ‘worst case scenario’ for Scotland
Deputy First Minister responds to announcements from Chancellor
The Autumn Statement delivered the ‘worst case scenario’ for Scotland’s finances and failed to live up to the challenges posed by the cost of living and climate crises, Deputy First Minister Shona Robison has said.
The statement failed to deliver the investment needed in services and infrastructure, Ms Robison said. While welcoming the increase in the statutory minimum wage, she said this did not go far enough and fell well short of the Real Living Wage of £12 an hour for 2024-25.
The Deputy First Minister said: ““Today’s Autumn Statement from the UK Government has delivered what is the worst case scenario for Scotland’s finances. Scotland needed a fair deal on investment for infrastructure, public services and pay deals – the UK Government has let Scotland down on every count.
“We needed investment in the services that people rely on and in infrastructure vital to the economy, but the Chancellor’s actions failed to live up to the challenges we are facing as a nation, while not doing enough to help those on the lowest incomes.
“The cut to National Insurance shows the UK Government has the wrong priorities at the wrong time, depriving public services of vital funding. Shockingly, the health funding announced today represents an increase of less than 0.06% to Scotland’s health budget in 2023-24 of £19.138 billion.
“The increases to the state pension and Local Housing Allowance are welcome, but the increase to the minimum wage falls well short of the Real Living Wage. Some of the measures for businesses are also positive, but they come in the face of UK growth having been projected downwards as a result of Brexit and the UK Government’s mismanagement of the economy.
“As global temperatures push ever higher, the Autumn Statement was a chance to fund efforts to cut the UK’s carbon emissions – but it did not. It’s not enough to say they support measures to encourage more renewable energy developments and expand the UK’s electricity grid need. It needs to be matched with funding to actually deliver and help us meet our net zero targets.
“We will now assess the full implications of today’s statement as we develop a Budget that meets the needs of the people of Scotland, in line with our missions of equality, community and opportunity.”
The Scottish Budget will be announced on 19 December.
TUC: Hunt’s Autumn Statement “is a plan for levelling the country down”
Chancellor has confirmed “another round of punishing spending cuts to public services and investment”
Cutting NI won’t make up for “13 continued “years of economic failure on living standards and growth”
Growth forecasts revised down with real wages set to remain below 2008 level until 2028
“The Conservatives have broken Britain. They cannot be trusted to fix it,” says TUC
Commenting on the Autumn Statement, TUC General Secretary Paul Nowak said: “This is not a plan for rebuilding Britain. It’s a plan for levelling the country down.
“At a time when our schools and hospitals are crumbling – the Chancellor has confirmed another round of punishing and undeliverable spending cuts to public services and investment.
“Be in no doubt – if the Tories win the next election, even more austerity is on the way.
“Cutting national insurance won’t make up for 13 continued years of economic failure on wages and living standards.
“Jeremy Hunt has nothing to smile about when working people are on course for a 20-year real wage freeze.
“The Conservatives have broken Britain. They cannot be trusted to fix it.”
Responding to the 2023/24 Autumn Statement, SCVO Chief Executive Anna Fowlie, said: “I share the disappointment of other voluntary sector bodies that this week’s budget Autumn Statement did not recognise the essential services and support of voluntary organisations both in Scotland and across the UK.
“Our sector is a major employer, a partner in delivering public services, and a vital contributor to society and the economy.
“The last few years have been a period of significant change and upheaval for Scottish voluntary organisations, their staff and volunteers, and the people and communities they work with. Rising inflation and the resulting cost-of-living crisis and running costs crisis has strained sector finances and increased demand for the support and services many organisations provide, as demonstrated in our Third Sector Tracker.
“This crisis is not over. We welcome the increase in the National Living Wage which will offer some support to the lowest paid, but to meet the rising cost-of-living this needed to go further, lifting both the National Living Wage and the National Minimum Wage to at least Real Living Wage.
“Our sector is central to building a stronger economy and offers specialist support to those furthest from the labour market and should be included in these plans.
“To protect our sector’s essential contributions for the future, underfunding and a lack of inflation-based uplifts in grants and contracts needed to be addressed in this statement. As people and communities struggle through the largest reduction in household incomes since records began in the 1950s, our support will be needed more than ever.”
