Plan to grow economy, target spending and deliver progressive tax system
Economic growth, progressive taxation and spending plans that unapologetically target those in greatest need are at the heart of a financial strategy announced by Deputy First Minister Shona Robison.
The Medium-Term Financial Strategy outlines the approach to ensuring Scotland’s finances are on a sustainable footing and delivering high-quality public services in the face of high inflation. This includes:
growing the economy, including by delivering on ambitious commitments on childcare, seizing opportunities in areas where Scotland has a competitive advantage and supporting entrepreneurs, start-ups and scale-ups
taking tough decisions around spending, focusing on what is needed to achieve the missions of equality, opportunity and community
updating the tax strategy, with a new advisory group to be established this summer and chaired by the Deputy First Minister
The strategy details the tough choices required in challenging financial circumstances. Scottish Government estimates indicate that due to inflation, pay increases and the lack of further funding from the UK Government, current resource spending requirements could exceed funding by £1 billion in the next financial year, and by £1.9 billion in 2027-28.
The gap between capital spending commitments and funding could rise to 16% in 2025-26.
Ms Robison said: “We are steadfast in our commitment to tackling poverty, building a fair, green and growing economy, and improving our public services to make them fit for the needs of future generations.
“But we must recognise that our current financial situation is among the most challenging since devolution, driven by the Covid pandemic, the war in Ukraine and the recent period of high inflation.
“Our funding remains largely based on decisions made by the UK Government, but they have failed to take the steps required to inflation-proof our budgets, and their decisions from Brexit to the disastrous mini-budget have made matters worse. This is creating substantial pressure on our public services, which we have no choice but to address.
“Today I have outlined our strategy for managing these challenges, doing all we can within our powers to ensure public finances are on a sustainable path. We will have a laser-like focus on spending, ensuring it targets equality, opportunity and community.
“We will generate economic growth, supporting businesses to invest and create new jobs while increasing tax revenues to invest in better public services. And we will continue to build the most progressive tax system in the UK, ensuring the burden of taxation is placed on those with the broadest shoulders.
“There can be no escaping the difficult choices ahead, but by following the plan outlined today we can provide a more prosperous and fairer future for the people of Scotland.”
Responding to the statement, STUC General Secretary Roz Foyer said: “The Cabinet Secretary for Finance is in a slightly better budgetary position than was predicted this time last year. However, she rightly points out that UK Government austerity and its manufactured cost-of-living crisis continue to hit Scotland hard.
“However, this is not an excuse for inaction. There is a worrying lack of ambition from the government ministers which cannot be condoned.
“Tax reform cannot be kicked down the road for another year. To protect services and pay, the Scottish Government must make good on the First Minister’s pledge to leave no stone unturned in seeking to raise additional income by rebalancing wealth. This means committing now to the policy changes required to introduce wealth and property taxes as the STUC has advocated.”
Sight Scotland: people with vision impairment will not be able to take part in the bottle return scheme
Sight Scotland and Sight Scotland Veterans have welcomed the delay to the Bottle Deposit Return Scheme and are urging the Scottish Government to use this time to consider the implications it will have for visually impaired people.
The Bottle Deposit Return Scheme, which is used by many other countries to encourage recycling, will charge people a small deposit on certain types of containers, which will be given back to them when they return it to a recycling point. People return their items to a reverse vending machine where they scan their bottles to receive cash back.
The sight loss charities are concerned that people with vision impairment will not be able to take part in the scheme and will incur the increased costs with no way of getting their money back, thus increasing cost of living pressures further.
Craig Spalding, Chief Executive, Sight Scotland and Sight Scotland Veterans, explains: “Although we support environmental initiatives like the Bottle Deposit Return Scheme, we are extremely worried that the rights of visually impaired people have not been taken into consideration when the scheme has been developed. We urge the Scottish Government to take this time to review several unacceptable accessibility issues.
“For many blind and partially sighted people online food shopping is key to being able to shop independently. This is also true for many older people. We are concerned that those unable or who find it challenging to physically go to a supermarket will not be able to participate in the return scheme and will bear a disproportionate cost on bottled items.
“We are aware that new regulations state that some large retailers will provide a vital takeback service. However, we are very concerned about recent reports of one large supermarket possibly cancelling online shopping deliveries to get out of offering a takeback service. If this is the case, it is likely other supermarkets will follow suit which will isolate more people with visual impairment from the scheme.
“For those who are able to shop in person, we are also concerned about how someone with visual impairment will be able to identify what bottles are included in the scheme and how will they be able to operate the reverse vending machine. Will they be required to scan the bottles manually? It is essential the codes are in large print and have a tactile marker to indicate where they are on the bottle. We feel it is a necessity that reverse vending machines should include audio instructions and large print on the screen. The test machines which are currently in some shops around the country have none of these unfortunately.”
Spalding adds: “We have written to the Scottish Government raising our concerns and are currently awaiting a reply. As it stands just now, the Bottle Deposit Return Scheme just does not work for blind or partially sighted people.”
Councils empowered to raise money for local tourism
A Bill to enable councils to invest more in local tourism facilities and services through a levy on overnight stays has been published.
If passed by the Scottish Parliament, the Visitor Levy (Scotland) Bill will give councils the power to apply a levy on stays in overnight accommodation based on a percentage of the accommodation cost.
All money raised would have to be reinvested locally on facilities and services substantially for or used by visitors, enhancing the tourist experience and benefitting local communities and their economies.
Under the plans, councils would be required to consult communities, businesses and tourism organisations before putting a visitor levy in place. They would also have to consult on how any revenue raised should be spent.
The proposals follow public consultation and form part of the New Deal for Local Government which gives councils greater financial flexibility and strengthens local democracy.
The Scottish Government has also invited representatives from the tourism industry, COSLA and other partners to join an expert group to consider how it could best be implemented if passed.
Public Finance Minister Tom Arthur said: “Scotland is already a very popular tourist destination and the domestic and international visitors we welcome every year have a significant and positive impact on the Scottish economy. Giving councils the power to introduce a visitor levy is one tool that will provide additional resources to continue to attract visitors to Scotland.
“Levies on visitors staying in paid-for accommodation are already used around the world and it is reasonable for local areas to want a small contribution from tourists to help support and sustain visitor economies.
“There have been significant contributions to the Bill so far from the tourism industry, COSLA and other partners and I look forward to continuing to work with them as it progresses through Parliament.”
COSLA Resources Spokesperson Councillor Katie Hagmann said: “COSLA welcomes the Scottish Government’s move to give councils the power to apply a visitor levy. This represents a key step towards reaching COSLA’s long-standing goal of a more empowered Scottish local government.
“COSLA has consistently called for the ability of councils to set and raise taxes based on what is needed and decided locally. By providing each local authority with the power to set a rate charged to visitors, and to do so independently of the Scottish Government, the Local Visitor Levy empowers local decision-making, with councils able to respond to the needs of their area and the people who live there.
“COSLA is well aware that Scotland’s councils and communities have a great diversity of needs – what works for one council will not necessarily be suitable for another. We welcome the flexibility offered by this legislation, and will consider if there are opportunities for it to go further. We are looking forward to seeing further investment both in tourism and our communities in the future.”
City council Leader Cammy Day has welcomed today’s publication of a Bill by the Scottish Parliament to empower councils to raise money through tourism.
If passed, the Visitor Levy (Scotland) Bill will give the City of Edinburgh Council the power to progress plans for a levy on stays in overnight accommodation, which it has been campaigning to see introduced for over five years.
The council has produced a substantial body of work to back its case for why a levy is the right move for Edinburgh, including a detailed consultation in 2018 which saw 85% of 2,500 respondents expressing strong support for its introduction. This figure included a majority of Edinburgh-based businesses and accommodation providers.
It was estimated then that a levy in Edinburgh could raise in the region of £15m per year to invest in sustainable tourism and managing the impact of tourism on the city. The Bill published today stipulates that levies must be based on a percentage of the accommodation cost, and spent of services substantially for or used by tourists.
Council Leader Cammy Day said: We’ve been building the case for Edinburgh to introduce such a levy for years so it’s great to finally see this Bill brought forward.
“We’re very proud that Edinburgh is one of the world’s most popular visitor destinations, but we’re equally aware that this success comes at a cost. That’s why we believe it’s right to ask visitors to make a small contribution to help us sustain and improve our tourism offer while managing its impact, and why we’ve been a key driver working with COSLA and the Scottish Government to see this legislation brought forward.
“A visitor levy is common practice in other major cities and destinations so why not here, in the place named ‘best city in the world’ to visit by Time Out magazine?
“From our citywide consultation held in 2018, our proposals gained overwhelming backing from Edinburgh’s residents, businesses and attractions – and, importantly, also from the majority of accommodation providers.
“Clearly, this model will need to be reviewed in line with the recommendations of the Bill so reshaping this with input from industry partners and communities is our next priority. It has been an extremely challenging period for our culture and hospitality industries so it’s more important than ever that we are fully committed to working together with them and other partners to co-produce a scheme that works best for the whole of our Capital city.”
EDINBURGH SNP POLITICIANS WELCOME INTRODUCTION OF TOURIST TAX LEGISLATION
Tommy Sheppard MP and SNP Council Group Leader, Adam McVey, have today welcomed the publication of a Bill which would give Edinburgh City Council the power to invest more in local tourism facilities and services through a levy on overnight stays.
Sheppard, whose Edinburgh East constituency encompasses some of the City’s most popular tourist attractions like Edinburgh Castle and the Royal Mile, has committed to work with the local tourism industry, City Councillors and MSP colleagues to “get the Bill over the line.”
If approved by the Scottish Parliament, the Visitor Levy (Scotland) Bill will grant councils the authority to impose a levy on overnight accommodation, calculated as a percentage of the accommodation cost.
All funds generated from this levy would be reinvested locally, primarily in facilities and services used by tourists. This reinvested aims to enhance the tourist experience and bring significant benefits to local communities and their economies.
Edinburgh City Council have announced its proposal to implement a nightly charge of £2 for the first week of a stay, to be added to the price of any room. It is estimated the scheme would bring in between £5 million and £35 million a year, depending on the final model agreed.
Commenting, Tommy Sheppard MP said: “It’s great to see the Scottish Government move forward with proposals to give councils the power to apply a visitor levy. It’s particularly welcome here in Edinburgh – a city which proudly welcomes over welcomes over 4 million visitors annually.
“This isn’t a question of fleecing tourists as some suggest, but a rather a matter of fairness. It cost money to keep our streets clean, well-lit, and safe. It costs to support our festivals, to keep our museums and public spaces world class.
“Residents pay for this through their council tax and yet many living outside the city centre don’t get a lot of benefit from it. It’s only fair that people who come here for a few days or weeks and take advantage of these facilities make a modest contribution too. That’s what this legislation will give Edinburgh City Council the power to do.
“I look forward to working with the local tourism industry, Edinburgh Councillors and my MSP colleagues to get this Bill over the line.”
SNP group leader Adam McVey, added: “Edinburgh has well-developed plans for a tourist tax, and I’m delighted this legislation has moved to the next stage to make these plans a reality.
“More than 90% of residents backed plans for this levy in the City when asked and the engagement from industry means the Edinburgh plan is well thought out and deliverable for businesses too.
“This has been a key ask of local government for the last 6 years and it’s fantastic that the SNP Government have responded so positively through this process to further empower Councils on this policy as well as progressing many others.”
BOYACK CONCERNED THAT VISITOR LEVY IS STILL YEARS AWAY
Following the introduction of a Visitor Levy (Scotland) Bill, Sarah Boyack MSP has written to the Minister for Community Wealth and Public Finance, Tom Arthur, to welcome the Bill but raise concerns that the powers for local authorities to implement a Levy could be years away.
In her letter, the Scottish Labour MSP said that “there are some key aspects of the proposed Bill that lack detail and will have an impact on local authorities like the City of Edinburgh that are ready to get on and introduce a Levy.”
Boyack referred to the Section 12 of the draft Bill which requires local authorities to carry out consultation prior to making a decision to implement a Scheme, raising questions about whether consultation already carried out by the City of Edinburgh Council would be accepted by Ministers to meet the requirements in the draft Bill.
It comes after the City of Edinburgh Council Leader, Cllr Cammy Day, raised concerns that having the power and implementing a Visitor Levy could still be two years away. Sarah Boyack is concerned that the draft Bill means that this is an underestimation.
Commenting, Sarah Boyack MSP said: “I welcome the introduction of this Bill, which will make a huge difference in public purse and will allow our councils to fund vital local services.
“A Visitor Levy Bill is long overdue.
“However, the lack of detail, particularly on timescales, in the draft legislation concerns me given that the warning from the City of Edinburgh Council that having the powers and implementing a Visitor Levy could be two years away is actually an underestimation of the time it will take to get a scheme up and running.
“Our Councils are severely underfunded. Introducing a Visitor Levy like other cities across Europe could raise approximately £15 million extra every year which would go towards funding local services.
“I am keen to ensure that there are no unnecessary hurdles for Edinburgh to implement a Visitor Levy and get the full benefits for local services as quickly as possible.”
In a recent Parliamentary Question on a Visitor Levy the Minister for Community Wealth and Public Finance agreed to meet with Sarah Boyack MSP and representative from Edinburgh City Council on the Government’s proposal. It is hoped that this meeting will take place within weeks.
Culture Secretary Angus Robertson has confirmed £9.5 million funding for Scotland’s flagship Youth Music Initiative (YMI) this year. This includes £500,000 which has been ringfenced to deliver on the commitment to expand the YMI model into other art forms.
YMI funding enables schools and other organisations to provide quality music-making activities for children and young people, which range from after-school drum bands to courses in sound production.
More than 362,000 children and young people took part in YMI-funded projects under the 2021-22 programme, the majority of those in high-deprivation areas. The funding also supported 1,182 music education posts across all of Scotland’s 32 local authorities.
Mr Robertson marked the funding award with a visit to Murrayburn Primary School in Sighthill, Edinburgh, where he met pupils who have benefitted from the programme, which is administered by Creative Scotland.
The Culture Secretary said: “Music plays a vitally important role in young people’s lives, and beyond developing their wider skills and learning we know these kinds of activities also have a huge positive impact on their confidence and wellbeing.
“We are committed to ensuring every school pupil in Scotland can access a year of free music tuition by the time they leave primary school through the YMI, no matter their background. YMI is focused on creating opportunities for groups of children and young people who may not otherwise have the chance to participate in cultural activity.
“This year’s funding takes our investment in this programme to more than £150 million since 2007, to enable free music tuition for hundreds of thousands of young people, and support thousands of music sector jobs across the country.”
Morag Macdonald, YMI Manager said: “With ongoing support from the Scottish Government, the YMI allows local authorities to deliver programmes like this across Scotland ensuring that children and young people with additional support needs have opportunities to experience the joy and excitement that comes with making music.”
A report published yesterday by Healthcare Improvement Scotland finds that people want more to be done to limit the sales of tobacco products.
The survey, commissioned by the Scottish Government, asked questions which will form part of a refreshed plan to be published this autumn, to support a tobacco-free Scotland.
The Citizens’ Panel survey, which ran between November 2022 and February 2023, found that of the 667 people who responded to the survey, 75% want more action to be taken to further limit who can sell tobacco products, and while 63% agreed the legal age to buy them should be raised from 18 to 21, 25% were opposed.
Some 65% agreed that Scotland should increase the legal age of the sale of nicotine vaping products from 18 to 21 years.
In addition, the survey found that 80% of respondents said that they either strongly agreed or agreed that action should be taken to further limit who can sell nicotine vaping products. Just 9% either disagreed or strongly disagreed.
In addition, 67% felt packaging, in pack information and the appearance of cigarettes should be made more unappealing. Some 64% agreed that taxes on tobacco and vaping products should be raised, but nearly a quarter of respondents (23%) disagreed with this.
There was also wide agreement that the smoking ban should be widened to create more smoke-free areas where children congregate, such as outside schools and play parks, with almost nine in ten respondents (86%) in agreement. Just 8% disagreed.
The report recommends that the Scottish Government considers including all the measures that have the strongest public support in its Tobacco Action Plan 2023.
It adds that the Scottish Government should then consider further around more punitive measures, such as raising the age of purchase and raising taxation on tobacco and vaping products. After assessing the impact of these measures, these could also be implemented following a staged approach.
Clare Morrison, Director of Community Engagement at Healthcare Improvement Scotland said: “As Scotland looks to become tobacco-free in the near future, this shows that the majority of people believe more should be done to limit access for younger people to tobacco and vaping.”
People across Scotland are being invited to have a say on how a new National Care Service should work.
A programme of meetings will take place over the summer, stretching from Dumfries and Galloway to Shetland. There will also be online meetings for anyone who would prefer to join discussions remotely.
There are NO events in Edinburgh or the Lothians.
During a visit to the Allied Health Professionals in Bonnyrigg, which includes the 14 health professions that make up the third largest workforce in the NHS Scotland, Social Care Minister Maree Todd spoke with staff about what they want to see from the co-design of the new national approach.
Details for all events are now available on the online booking page. The first event will take place in Stirling on 20 June.
Ms Todd said: “There are unique demands across the country, which is why we’re going to different areas, ensuring communities the length and breadth of Scotland are represented in designing a National Care Service tailored to local needs.
“Having listened to care providers, unions and the third sector during the Bill scrutiny process, these meetings will allow anyone who uses care services, has a loved one that relies on care or has worked in the sector to have their say. This will help inform future stages of the Bill as it progresses through the Parliamentary process.
“There is general agreement that social care transformation will be of great benefit. This needs us all to have a shared understanding of what is working well and really focus on what’s needed to support people to thrive with the most suitable care for them. I would encourage everyone to be part of this conversation.
“To do this you can look to attend an event near you or join online, and be part of what will be the biggest social reform of our lifetimes.”
Alison Keir, Chair of the Allied Health Professions Federation Scotland said: “Rehabilitation is central to improving health and social care services in Scotland. Rehabilitation services are vital to people recovering from injury or supported through illness.
“When people get the rehabilitative care they need, they can be discharged from hospital sooner. Then they will need less health and social care, avoid being readmitted to hospital, and be able to regain their quality of life and their role as active citizens in Scotland.
“Allied Health Professionals, such as occupational therapists and physiotherapists, are experts in delivering rehabilitation. It is vital we improve community provision. We will fully engage with the national care service process to ensure we have the right services and systems in place.”
Junior doctors across Scotland have been offered a 14.5% pay uplift over the two year period 2022-24, following negotiations with BMA Scotland.
This represents a £61.3 million investment in junior doctor pay – the largest in the last 20 years and the best offer in the UK.
If accepted, the new and final offer will be a pay raise of 6.5% in 2023/24, as well as an additional 3% towards an already agreed 4.5% uplift in 2022/23. This amounts to a cumulative increase of 14.5% over two years and matches the recent pay award accepted by nurses and other NHS workers in 2023.
This offer means a doctor at the beginning of their career would receive a total salary increase of £3,834 over two years. For those at the end of their training the rise would be £7,951 over the same period.
Health Secretary Michael Matheson said: “After weeks of intense negotiations I’m delighted our government and BMA Scotland have come to an agreement on pay which they will now put to their members.
“Recognising the incredible work that junior doctors do, we have offered a fair and progressive rise which will mean a pay increase of 14.5% over two years – the best offer on the table in the UK.
“We have taken their concerns regarding pay, and the need to modernise pay bargaining more broadly, extremely seriously. It’s now up to junior doctors to reflect on this final offer, and I hope they will accept.”
Following performance improvements in relation to the delivery of Children and Adolescent Mental Health Services (CAMHS) and Psychological Therapies, NHS Lothian Health Board has been de-escalated to Stage 2 of NHS Board performance escalation framework.
Robust measures will remain in place to ensure NHS Lothian continues to receive support to help maintain improvements.
NHS Lothian was originally escalated to Stage 3 for mental health performance in July 2019.
The improvements to CAMHS and Psychological Therapies has resulted in a significant decrease in the number of children, young people and adults waiting to start treatment compared to the period prior to escalation.
Health Secretary Michael Matheson said: “Escalating a health board is never done lightly and, following progress to improve the provision of mental health services, care and support, I am pleased that we are now able to de-escalate NHS Lothian. This is a positive step forward.
“Staff have worked hard to support the improvement work while delivering high quality patient care. It has been a challenging time for them, as well as patients and families, and support for the Board will continue to improve services even further for patients.”
An estimated 20,000 additional people will become eligible for additional help to buy healthy foods when income thresholds are removed for Best Start Foods payments.
The Scottish Government benefit provides help to pregnant women or their partners as well as families with children aged up to three years old, so they can buy healthy food, milk or baby formula.
It is currently paid to people who receive qualifying benefits, so long as their incomes are not above set thresholds. The Scottish Government will introduce regulations that remove those thresholds increasing eligibility for Best Start Foods to around an additional 20,000 people from February 2024.
Social Justice Secretary Shirley-Anne Somerville said: “Tackling poverty and protecting people from harm is one of the Scottish Government’s three critical missions.
“Rising food prices disproportionately hurt those on the lowest incomes, so removing the threshold for qualifying benefits means around 20,000 people will now get vital help to buy healthy foods.
“Best Start Foods is one of our five family payments, including the Scottish Child Payment, which together could be worth more than £10,000 by the time a first child turns six and more than £20,000 by the time an eligible child is 16.
“As set out in our tackling child poverty plan, we will use all the resources available to provide immediate support to families, while seeking more powers to enable us to truly tackle poverty.”
People in health and social care settings will no longer be advised to wear facemasks from Tuesday next week (16 May).
The return to pre-pandemic guidance means that mask use will be based on clinical need based on infection prevention and control advice, meaning staff, patients, service users and visitors will not be routinely asked to wear facemasks in health and social care settings.
It follows a review of the guidance introduced during the Covid-19 pandemic to protect staff, patients, service users and visitors, and recognises that Scotland has entered a calmer phase of the pandemic.
Chief Nursing Officer Alex McMahon said: “Due to the success of vaccines in protecting people, and the availability of treatments, now is the right time to revise the advice on wearing masks in health and social care settings and return to pre-pandemic guidance.
“We recognise that some staff may have concerns around the withdrawal of this guidance and would expect organisations to undertake individual occupational health assessments and risk assessments as appropriate.
“We continue to be vigilant in our response to Covid-19 and encourage everyone to make sure they are up to date with the boosters available to them. We are grateful for the tireless work of health and social care teams during these challenging times and to everyone who has helped them by adhering to the guidance.”
