Health Secretary opens new training facility for NHS Scotland workforce

Health Secretary Neil Gray has opened the NHS Scotland Academy Skills and Simulation Centre at Clydebank’s Golden Jubilee University National Hospital. 

The custom-built centre provides state-of-the-art training and education facilities to practitioners including an array of advanced simulators.

Designed and run by the NHS Scotland Academy – a partnership between NHS Education for Scotland and NHS Golden Jubilee – the centre replicates real-world environments where learners can hone their skills in a safe, controlled setting.

During its first year of operation it’s expected that the centre will train more than 800 healthcare staff, helping to accelerate training for in-demand areas of the NHS workforce.

For example, nurses will be able to develop their operating theatre skills, previously learnt in a year, in just six months. The centre will also support large scale diagnostic training for Endoscopy and other vital clinical skills.

Health Secretary Neil Gray said: “Harnessing the latest technology is an important part of our plan to reform and recover Scotland’s NHS. It’s exciting to see how the innovations in the Skills and Simulation Centre will be used to accelerate training skills by providing unprecedented hands-on experience.

“The NHS workforce is our greatest asset and that is why it’s so important to invest in their training and development. Quicker and more effective training will help to improve diagnostic accuracy and therefore patient outcomes as well as address workforce pressures and aid retention of staff across NHS Scotland.”

Director of NHS Scotland Academy, Learning and Innovation, Kevin Kelman said: “We are absolutely thrilled today to welcome the Cabinet Secretary to formally open our brand new Skills and Simulation Centre as part of the NHS Scotland Academy. 

“As the healthcare landscape continues to evolve, the NHS Scotland Academy remains committed to fostering innovation and excellence in health and social care education.

“The launch of the Skills and Simulation Centre reaffirms its position at the forefront of medical training, empowering the future NHS workforce to deliver safe, effective and person-centred care to all.”

Since the NHS Scotland Academy’s launch in 2021, more than 12,000 clinical and non-clinical staff have undertaken training through their programmes and dedicated online resources.

£150k funding boost announced for Scotland’s school library services

School libraries across Scotland are set to benefit from a £150,000 funding boost for projects supporting literacy, numeracy and mental health support, as part of the 2024/25 School Library Improvement Fund (SLIF).

The national funding programme, administered by the Scottish Library and Information Council (SLIC) on behalf of the Scottish Government, supports creative and innovative projects within the school library sector.

Cabinet Secretary for Education and Skills, Jenny Gilruth, announced the launch of the fund during a visit to Leith Primary School on Wednesday (22 May) where she officially opened the newly refurbished school library.

Ms Gilruth said: “School libraries have an important role in inspiring children and young people to read for pleasure, while providing vital access to resources that support learning and helps to close the poverty-related attainment gap.

“I’m very grateful to the staff here at Leith Primary School for showing me around their new refurbished library, which I have no doubt will be of huge benefits to the pupils here.

“The Scottish Government is committed to ensuring that our school libraries continue to grow and thrive, which is why I am delighted to announce £150,000 of investment from the Scottish Government through the School Library Improvement Fund.

“This year’s fund will support more creative and innovative projects that align with our commitment to improve both literacy and numeracy across Scotland’s schools.”

Available to all state-run nurseries, primary schools and secondary schools in Scotland, the 2024-25 fund will prioritise project applications which support the key aims of ‘Vibrant Libraries, Thriving Schools’ – the national strategy for the development of school libraries in Scotland.

A particular focus will be put on three key priorities of the strategy:

  • promoting literacy and numeracy (especially targeting 4-8 year olds)
  • information and media literacy
  • mental health support

The 2024/25 SLIF brings the total investment from the Scottish Government to £1.85m over the lifetime of the funding scheme.

Last year, SLIF supported anti-racism and racial equality projects, including the creation of a ‘Holistic Inclusion Hub’ to help parents and pupils from diverse backgrounds feel more included in the school community in Edinburgh; changes to the curriculum in Inverclyde to teach pupils Black, Asian and minority ethnic history as part of learning on local, historical links to slavery; and a new ‘Lending Library’ scheme in East Ayrshire designed to support families who have recently arrived from Ukraine, Poland and Russia.

Grants were also awarded to a series of initiatives specifically aimed at English as an Additional Language (EAL) school communities, including the ‘Traditional Tales – Story Gathering with Roma Communities’ project in Glasgow, created in partnership with local community organisation Romano Lav, to improve the literacy skills of children from the Roma community.

Pamela Tulloch, chief executive of SLIC, said: “School libraries play a central role in helping children and young people gain the knowledge, skills and attributes needed for learning, life and work. They ensure every young person has the chance to fulfil their full potential with equal access for all.

“From physical and digital resources to collaborative workshops and initiatives, SLIF grants can help school libraries improve and expand the services they offer to empower their pupils, staff and the community around them.

“We would encourage every nursery, primary and secondary school to consider how they can help lead the way in developing our school library services and apply for a SLIF grant today.”

Schools can apply as an individual or collaborative application, with SLIC accepting up to two individual applications per local authority and an unlimited number of collaborative applications, to ensure equal opportunities across Scotland.

The School Library Improvement Fund 2024-25 is now open. Applications will close on Wednesday 4 September 2024.

For more information on how to apply, visit: https://scottishlibraries.org/funding/the-school-library-improvement-fund/.

June Programme for Government

Immediate focus on Scotland’s priorities

First Minister John Swinney has declared the priorities that his government will focus on as part of his vision to deliver for all of Scotland.

The Scottish Government will focus on four areas targeted to have the most immediate benefits for people in their everyday lives. They are:

  • Eradicating child poverty
  • Growing the economy
  • Tackling the climate emergency
  • Improving public services

In order for work to be prioritised immediately, the First Minister confirmed he will present his first Programme for Government before the Scottish Parliament’s summer recess.

He also committed to work with Members across the chamber to realise Scotland’s potential, in the spirit of the opening of Parliament 25 years ago.

The First Minister said: “In setting out my approach to government, I am acutely aware of the economic and fiscal realities we face.

“With that important context, today, I will outline the four priorities that will guide my government’s decisions on policy and budget; the four priorities around which I will work to secure cross-party support, for the good of the people of Scotland.

“Eradicating child poverty, growing the economy and tackling the climate emergency all link together to support my fourth key priority – to improve Scotland’s public services – not as a cost, but as a vital investment in our future health, equality and prosperity.

“I will set out how my government and my cabinet will take practical steps to deliver in these four areas of priority when I present my Programme for Government before the summer recess.

“The Programme for Government will be central to a wider range of decision-making that will happen before the summer on key issues on energy, on oil and gas, on reform of the health service and on taxation. Action will be set out on each, tackling the challenges facing Scotland today.”

The date for Programme for Government will be confirmed in due course, subject to Parliamentary timetable.

Eradicating child poverty

£16M funding to expand access to childcare services

First Minister John Swinney has announced £16 million for childcare services to help deliver his vision of a Scotland free from child poverty.

In a statement to Parliament, the First Minister set out the four priorities that will underpin the work of his government. He said eradicating child poverty would be his government’s single most important objective.

Over the next two years, the Scottish Government will provide additional funding to expand access to childcare services within six Early Adopter Community (EAC) projects.

The funding will allow expansion into to new communities, including in Fife and Shetland, and inform what childcare should look like for younger children. The investment will support the development of local childcare systems that are designed to meet families’ needs, with funding targeted at those who are most at risk of living in poverty.

Earlier yesterday, the First Minister visited a breakfast club at Capshard Primary School in Kirkcaldy to see the impact of innovative school age childcare services which contribute to the eradication of child poverty and grow the economy, by helping parents and carers access the childcare they need to find and sustain good jobs.

Speaking in parliament, the First Minister said: “In modern Scotland, it should not be a struggle to find fair work or to raise a family. So for me, and for my government, eradicating child poverty and boosting economic growth, go hand in hand.

“Over the next two years, we will invest £16 million to tackle poverty and help families, by expanding access to childcare services within six Early Adopter Community projects.

“This investment will support low income families to enter and sustain employment, with funding targeted at those who are most at risk of living in poverty.”

National Drugs Mission funding

Residential rehabilitation projects among those awarded £3.6 million

Fourteen drugs support projects, which will help save and improve lives as part of the Scottish Government’s National Mission on Drugs, have been awarded funding which will ensure key frontline services continue to support those dealing with problematic drug use.

Ten projects will receive continuation funding of £2.6 million, with four new residential rehabilitation initiatives receiving £1 million.

The awards will allow organisations providing residential rehabilitation to hire staff to provide more in-depth support to people as they transition from rehab, develop a new women’s recovery house and upgrade existing properties.

Visiting Crossreach’s Residential Recovery Service in Glasgow, Drugs and Alcohol Policy Minister Christina McKelvie said: “This funding and these projects are helping to save and improve lives across Scotland.

“It will support a wide range of initiatives, from rescuing vulnerable people from having their homes and lives taken over by drug-dealing ‘cuckooing’ gangs, to supporting outdoor recovery programmes and expanding recovery cafes.

“It will support a wide range of initiatives, from rescuing vulnerable people from having their homes and lives taken over by drug-dealing ‘cuckooing’ gangs, to supporting outdoor recovery programmes and expanding recovery cafes.

“It also includes a very significant investment in developing residential rehabilitation services. Increasing access, and improving these services is another key part of our National Mission and we’re well on our way to our target of increasing the number of statutory funded placements to 1000 by 2026.”  

Crossreach will use an award of £357,816 to employ two new staff members to improve aftercare provision at its Glasgow residential rehabilitation facility.

Director for Adult Care Vic Walker said: “This funding, across three years, will allow us to maintain support to people as they transition back into the community after completing a residential rehab programme.

“Practical and emotional support will be offered, as they link with an assertive aftercare worker and access counselling.

“We know that this type of support is crucial, as they enter the next stage of their recovery journey, leaving the supportive environment of the rehabilitation service and establishing themselves back into their local community. We will help people to use the knowledge and skills gained in rehab, as they access activities and services.”

Carolyn Sawers, chief executive of Corra, which has made more than 300 National Mission grant awards to organisations across Scotland, said: “Corra’s vision is for a society where people can create positive change and enjoy fulfilling lives.

“With £3.6 million going to 14 organisations through the National Drugs Mission Fund, we will see real impact for communities across Scotland. We are pleased to see four new residential rehabilitation services receive funding, taking a people-first approach that’s built on compassion, relationships, and rights.”

A full list of awards can be found here

Community action to reach net zero

£5.5 million for Scotland’s Climate Action Hubs

Communities will receive a share of up to £5.5 million Scottish Government funding to help reduce their emissions and improve resilience in the face of climate change.

The funding, for 2024-25, will support Scotland’s network of 20 Community Climate Action Hubs, which encourage and support climate action. Based across Scotland, the Hubs have supported a range of projects bespoke to their area, including on local energy generation and flood mitigation.

Cabinet Secretary for Net Zero and Energy Màiri McAllan confirmed the funding during a visit to the North East Scotland Climate Action Network (NESCAN) Hub in Aberdeen.

One of the original two hubs that successfully piloted the concept in 2021, the NESCAN Hub has delivered climate assemblies to schools, climate literacy sessions to the local community, supported repair cafes to increase local reuse and recycling rates and provided advice and support around tackling fuel poverty by improving energy efficiency for buildings as well as renewable heat and energy generation.

Ms McAllan said: “I am very pleased to hear first-hand how NESCAN Hub’s work has been helping communities in Aberdeen to support climate action through projects tailored to meet the needs and interests of the area.

“Tackling climate change is our collective responsibility and will require collaborative action at all levels. We must also share in the benefits that our net zero journey will bring. 

“Communities are uniquely placed to play a critical role in shaping and driving forward the transition to low carbon and climate resilient living and we want to empower people to take action in their neighbourhoods that’s right for them. 

“That is why we are proud to continue to support our hugely successful framework of regional climate hubs, which provide a vehicle for communities to come together and engage in collective grass-roots action.”

NESCAN Hub Manager, Alison Stuart said: “We are proud of the continuing achievements of groups supported by NESCAN Hub. In particular, the ongoing work to help fulfil the residents’ wishes to create a healthier, happier and more sustainable community.

“This will not only support our response to the climate crisis, but also improve wellbeing, help address fuel poverty and increase community capacity, assets and wealth-building.”

Background

The Scottish Government is providing up to £5.5 million of funding in 2024/2025 for its network of Climate Action Hubs alongside a support package for delivery. This is broken down as follows – with some funding still to be allocated  

Work is ongoing to ensure national coverage of the hubs.

OrganisationBudget
Angus Climate Hub£165,000.00
Argyll & Bute Climate Action Network Hub£145,000.00
Ayrshire Climate Hub£340,000.00
Dumfries and Galloway Climate Hub£200,000.00
Dundee “Changemakers Hub£140,000.00
East Lothian Climate Hub£115,000.00
Edinburgh Climate Action Hub£350,000.00
Fife Climate Action Hub£290,000.00
Forth Valley Climate Action Hub£365,000.00
Glasgow Climate Action Hub£450,000.00
Highlands & Islands Climate Hub£437,839.60
Inverclyde Climate Action Hub£93,500.00
Lanarkshire Climate Action Hub£480,000.00
Midlothian Climate Action Hub£125,000.00
Moray Climate Action Hub£135,000.00
North East Scotland Climate Action Network  (NESCAN)£468,000.00
Outer Hebrides Climate Hub£123,900.00
Perth & Kinross Climate Action Hub£40,000.00
Scottish Borders Climate Action Network£160,000.00
West Lothian Climate Action Hub£160,000.00
Total£4,783,239.60

Infected Blood Compensation Scheme

Statement from the Minister for the Cabinet Office on the Infected Blood Compensation Scheme

With permission, Mr Speaker, I would like to make a statement following the final report of the Infected Blood Inquiry.

Yesterday, the Prime Minister spoke about the anguish the infected blood scandal brought to those impacted by it. I want to reiterate his words and apologise again today. I am sorry.

The Prime Minister also spoke – on behalf of the whole house – of our gratitude to Sir Brian Langstaff and his team, for completing his comprehensive report…

I think seven volumes, two and a half thousand pages…

 …and of our appreciation of all those who came forward as part of the inquiry.

It was the greatest privilege of my ministerial career to have met over 40 representatives of the infected blood community…

…in Cardiff, Edinburgh, London, Belfast, Birmingham and Leeds…

… as we finalised our response to compensation for this appalling tragedy.

 The whole community’s bravery through immense suffering is what has enabled justice today…

…I know many of them will be watching  in the gallery today….

…and I want to honour their fortitude through their unimaginable pain, as I lay out a more detailed response to Sir Brian’s second interim report on compensation.

We will provide the House with a further opportunity to debate the Inquiry’s full report after the Whitsun recess.

The Government will also respond to each recommendation in full as quickly as possible within its comprehensive response to the report.

Compensation

Mr Speaker, the Prime Minister confirmed yesterday that the Government will pay comprehensive compensation to those who have been infected and affected as a result of this scandal.

I will now set out to the House the scheme the Government is proposing

…. And of course, more details of the scheme will be published online today.

 (ALB, Eligibility, Burden of Proof)

We are establishing the Infected Blood Compensation Authority, an arm’s length body to administer the compensation scheme.

A shadow body has already been set up and an interim CEO has been appointed…

…and today I am delighted to announce the appointment of Sir Robert Francis as the interim Chair of the organisation.

The experience and the care that Sir Robert will bring to this role will ensure that the scheme is credible and trusted by the community…

His support in delivering this scheme will be invaluable.

Mr Speaker, those who have been infected or affected – as a result of this scandal – will receive compensation.

To be crystal clear…

…if you have been directly or indirectly infected by NHS blood, blood products or tissue contaminated with HIV or Hepatitis C…

 …or have developed a chronic infection from blood contaminated with Hepatitis B …

…you will be eligible to claim compensation under the scheme.

And where an infected person has died, but would have been eligible under these criteria, compensation will be paid to their estate.

And this will include where a person was infected with Hepatitis B and died during the acute period of infection.

But, Mr. Speaker, Sir Brian could not have been clearer.

It’s not just the harm caused by the infections that requires compensation…

…it’s also all the wrongs suffered by those affected that must also be compensated for.

So, when a person with an eligible infection has been accepted onto the scheme… 

…their affected loved ones will be able to apply for compensation in their own right.

That means partners, parents, siblings, children and friends and family who have acted as carers of those who were infected are all eligible to claim.

Now I am aware that being asked to provide evidence of eligibility will likely be distressing.

So I am determined to minimise that as much as possible.

And I am pleased to confirm today that anyone already registered with one of the existing Infected Blood Support Schemes will automatically be considered eligible for compensation.

Loss Categories

Mr Speaker, I would like to give thanks to the dedication and hard work of Professor Sir Jonathan Montgomery and the other members of the Expert Group…

 … who were critical in advising on how the Government could faithfully translate the recommendations of Sir Brian for the scheme.

And in line with our previous commitment, we will publish the names of those experts today.

Now in his report Sir Brian recommended compensation be awarded with respect to the following five categories.

 An Injury Impact Award…

…acknowledging the physical and mental injury caused by the infection.

A Social Impact Award…

…to address any stigma or social isolation as a result of the infection.

An Autonomy Award…

 … acknowledging how family and private life was disrupted during this time…

A Care Award…

 …to compensate for past and future care needs of anyone infected…

And finally, a Financial Loss Award…

 …for past and future financial losses suffered as a result of the infection.

The Government accepts this recommendation…

…with two small refinements, informed by the work of the Expert Group, and designed for simplicity and speed. Two other principles that Sir Brian asserted.

First, the Care Award will be directly awarded to the person with the infection…

 …or their estate.

And second, the Financial Loss Award will be paid either directly to the person with the infection, or

 …where an infected person has tragically died before the establishment of the scheme, their estate and affected persons who were dependent on them…

Now,sadly many people have links to multiple individuals who were infected, or are both infected themselves and affected by another’s infection…

…so multiple injury awards will be offered to reflect the scale of the loss and suffering.

The scheme will be tariff-based. And we will be publishing an explanatory document, including examples of proposed tariffs on gov.uk.

However, Mr Speaker, this is not the end.

Over the next few weeks Sir Robert Francis will seek views from the Infected Blood Community on the proposed scheme before its terms are set in regulations, to make sure that the scheme will best serve those it is intended for.

Now, Sir Robert has welcomed the Government’s proposals as positive and meaningful. He will set out more details on engagement with the community shortly.

Payment Process

The Inquiry recommended that the scheme should be flexible in its award of compensation…

…providing options for a lump sum or regular payments.

We agree, and that is why awards to living infected or affected persons will be offered as a lump sum or periodical payments.

And where the infected person has died, estate representatives will receive compensation as a single lump sum to then distribute to beneficiaries of the estate as is appropriate.

We will also guarantee that any payments made to those eligible will be exempt from income, capital gains and inheritance tax…

…as well as disregarded from means tested benefit assessments.

We will also ensure all claimants are able to appeal their award…

 …through both an internal review process in the Infected Blood Compensation Authority…

…and, where needed, the right to appeal to a First-tier tribunal.

And our expectation is that final payments will start before the end of the year.

Now, Mr Speaker, if you would permit, I would like to return to the House when the regulations are laid later this year…

…to make a further statement on an update on the delivery of the compensation scheme.

Support Schemes

But, I know from my discussions with the community just how important the existing Infected Blood support scheme payments are to them.

 I recognise that many people sadly rely on these payments …

 …and they are rightly keen to understand what the Government’s intentions are.

 And I want to provide reassurance to all those out there today…

…that no immediate changes will be made to the support schemes.

Payments will continue to be made at the same level until 31 March 2025…

 …and they will not be deducted from any compensation awards.

 From the 1st April 2025, any support scheme payments received will be counted towards a beneficiary’s final compensation award.

This will ensure parity between support scheme beneficiaries, regardless of whether they were the first or the last to have their compensation assessed by the Infected Blood Compensation Authority.

And we will ensure that no-one…no-one, receives less in compensation than they would have received in support payments.

Interim Payments

Now Mr Speaker, I recognise that members of the infected blood community are still dying each week from their infections.

And there may be people, indeed there will be people listening today…

…who are thinking to themselves that they may not live to receive compensation.

So, I want to address some of those concerns too.

Today I am announcing that the Government will be making further interim payments ahead of the establishment of the full scheme.

Payments of £210,000 will be made to living infected beneficiaries – those registered with existing Infected Blood Support Schemes…

…as well as those who register with a support scheme before the final scheme becomes operational…

…and the estates of those who pass away between now and payments being made.

 I know that time is of the essence…

 …which is why I am also pleased to say they will be delivered within 90 days, starting in the summer.

 ….so that they can reach those who need it so urgently most.

Memorial

Mr Speaker, before I conclude, I would like to turn to the matter of memorialisation.

Many of those who were infected by contaminated blood or blood products have since died…

…died without knowing that their suffering and loss would be fully recognised, either in their lifetime or at all.

The lives of most of those who have died remain unrecognised.

And I note Sir Brian’s recommendations on memorialisation across the UK…

…and the Government will address these recommendations in detail as part of our wider response to this report.

Conclusion

So in conclusion, Mr Speaker, I know that the whole House will want to join me in thanking Sir Brian and the Inquiry for the work that they have done…

…and pay tribute to all those who have been caught up in this terrible tragedy and battled for justice for so long.

Yesterday was a day of great humility for everyone implicated by this Inquiry…

…and today, I can only hope – with the Inquiry’s report published, and with our firm commitment to compensate those touched by the scandal – the infected blood community knows their cries for justice have been heard.

Mr Speaker, I commend this statement to the House.

Apology to victims of infected blood scandal

First Minister makes statement in parliament

First Minister John Swinney has formally apologised on behalf of the Scottish government to everyone who has been infected or affected as a result of infected NHS blood or blood products in Scotland.

On Monday, the Infected Blood Inquiry Chair Sir Brian Langstaff made clear in the report that the situation was a result of “systemic, collective, and individual failures”.

The First Minister said: “More than 30,000 people across the UK were infected by contaminated blood products and transfusions between the 1970s and 1991 – with around 3,000 of those here in Scotland. 

“That is 3,000 families in Scotland who have faced decades of unnecessary heartbreak and pain. They have been failed by the organisations and process that should have been in place to protect and support them and I am sorry.

“Those infected and impacted by this tragedy have worked tirelessly to ensure that its impact, and their suffering, is not ignored – and to ensure that what they have endured is never repeated.

“People who were infected with HIV or hepatitis as a result of NHS treatment have endured unimaginable suffering, and I know that Infected Blood Inquiry report published yesterday, will not heal wounds nor bring back those love ones who have been lost. I do, however, hope that it is a step forward in the journey towards a semblance of justice and a better future.  

“The Scottish Government has already accepted the moral case for compensation for infected blood victims and we are committed to working with the UK Government to ensure any compensation scheme builds on the interim compensation which was paid out in 2022 and works as well as possible for victims.

“The Scottish Government will take forward the Inquiry’s recommendations for Scotland along with charities representing the infected and affected.

“We are determined to use the Inquiry’s report to ensure lessons have been learned so a tragedy like this can never happen again.  The Scottish National Blood Transfusion Service has extremely high standards of blood safety and I would continue to encourage anyone who can do so to give blood, as this remains essential for thousands of patients.”

UK Government confirms increase to Scottish Government borrowing

Scotland Act Order approval will increases borrowing resource to fund vital public services including schools, hospitals and key infrastructure to boost growth

More money to fund vital public services will be at the disposal of the Scottish Government after a motion passed in the House of Commons yesterday that will see their borrowing powers increased in line with inflation.

Scotland Office Minister John Lamont secured the approval of a Scotland Act Order that increases the Scottish Government’s resource borrowing limit from £1.75 billion to £1.78 billion and the capital borrowing limit from £3 billion to £3.05 billion in 2024-25, enabling them to invest further in schools, hospitals, roads and other key infrastructure that will help to grow the economy and create better paid jobs and opportunity in Scotland.  

The move upholds the UK Government’s commitment to the new Fiscal Framework agreed in August 2023 between the UK and Scottish governments which included annual uprating and gives the Scottish Government certainty over borrowing limits for the 2024/25 financial year.

UK Government Minister for Scotland John Lamont said: “We have listened to calls from the Scottish Government for greater certainty and flexibility to help them manage their budget. This is a great example of devolution in action and how we can deliver for people of Scotland when our two governments work together.

“The wider Fiscal Framework deal – worth billions of pounds to Scotland over the coming years – builds upon work to support economic growth and provide more high-skill jobs, investment and future opportunities for local people, such as through Investment Zones and Freeports in Scotland. 

“The UK Government has made great strides in growing the economy and by halving inflation sooner than forecast. With our direct investment in Scotland now standing at more than £3billion, we are creating opportunities right across the UK.”

In addition to the changes made to the cumulative borrowing limits through today’s Order, the Fiscal Framework agreement also saw the permanent doubling of the resource borrowing annual limit from £300 million to £600 million.

Limits on how much can be withdrawn from the Scotland Reserve to spend in future years was also removed. This boosts spending through borrowing by £90 million in 2024/25. All future limits will increase in line with inflation. 

The new arrangements compare with the previous Fiscal Framework, where the Scottish Government’s capital borrowing limit was £450 million per year within a £3 billion cap, as well as receiving a Barnett-based share of UK Government borrowing. Going forward these amounts now rise with inflation instead, which supports additional investment across Scotland and lays the foundations for economic growth. 

The funding arrangements for tax continue, with the Scottish Government continuing to keep every penny of devolved Scottish taxes while also receiving an additional contribution from the rest of the UK.

Background:

  • Scotland act orders in the UK Parliament fully support devolution by facilitating amendments to be made to UK legislation affecting Scotland, to enable Scottish legislation to have full effect, or additional powers to be transferred to Scottish Government ministers.
  • On average, seven Scotland Act Orders are made each year and more than 250 have been passed since the start of devolution.
  • The target date for the order to come into force is 17 June 2024, subject to the date of signing.

Swinney to outline priorities for Scotland

Eradicating child poverty is FM’s central mission

First Minister John Swinney is to set out the priorities that will underpin the work of his government today (Wednesday, 22 May), focused on a central mission to eradicate child poverty.

In a statement to Parliament, the First Minister is expected to commit the Scottish Government to eradicate child poverty and to work with business and industry to grow the economy, invest in net zero and deliver stronger public services.

The First Minister will also make clear the need for bold and collaborative action across the Parliament, focused on the priorities of people in Scotland.

Ahead of the statement, the First Minister will meet pupils at a new breakfast club in Kirkcaldy in Fife. There he will see the impact of innovative school-age childcare services in contributing to the eradication of child poverty and growing the economy – by helping parents and carers access vital childcare to help find and sustain good jobs.

The First Minister said: “Eradicating child poverty will be the single most important objective of my government – and work in other priority areas will support and drive that mission.

“I intend to build on our record of delivery. Since 2007, economic growth, per head, and productivity have been stronger in Scotland than the rest of the UK, Scotland’s core A&E units are the best performing in the UK, and measures such as our Scottish Child Payment are estimated to keep 100,000 children in Scotland out of relative poverty this year.

“I am acutely aware of the economic and fiscal realities that we face and I want to take forward measures that will help people and their families to get on in life: to enable the people of Scotland to live happier, healthier lives.

“One of the benefits of long service in politics is having witnessed the Scottish Parliament when it is functioning at its very best. That happens when parties work constructively together.

“My government will do everything in our power – working with Members from across parties – to make child poverty a thing of the past.”

First Minister outlines his ambitions for Scotland’s economy

The First Minister has set out his ambitions for Scotland’s economy during a speech in Glasgow.

Speaking at the Barclays Campus in Glasgow’s financial district on Friday, First Minister John Swinney outlined his government’s approach to economic policy making.

Mr Swinney said poor decision-making at UK level, typified by Brexit and immigration policy, means the Scottish Government must work even harder with its limited powers to help businesses and workers thrive.

The First Minister stated his determination to bring hope and optimism and said he will “go all out” to encourage economic investment.

John Swinney said policy making will be governed by:

  • Moderate left of centre, progressive values
  • A partnership approach with unions and business
  • A focus on actions
  • Problem solving based on evidence

The First Minister will highlight significant announcements in Scotland’s renewable energy sector this week and actions the Scottish Government is taking to boost high growth businesses.

The First Minister said: “My goal is to help people live happier and healthier lives with higher living standards and to help businesses boost profitability.

“The evidence shows that independent countries that are comparable to Scotland are wealthier and fairer than the UK.

“Scotland has the talents and resources to match that performance with independence but in the here and now and in the face of Brexit we must work even harder to help Scotland’s economy with the powers we have.

“I will go all out to encourage investment in Scotland and I will ensure people know my government is a firmly pro-business administration.

“A partnership with trade unions and business will be at the core of my approach and through that approach and given our resources, not least incredible renewable energy, we should look to the future with hope and optimism.” 

ANALYSIS: FRASER of ALLANDER INSTITUTE

New FM – new approach on the economy?

Today, the new First Minister John Swinney set out his broad economic aspirations for Scotland (write MAIRI SPOWAGE and EMMA CONGREVE).

In a speech at the impressive Barclays Glasgow Campus (which he said embodied the ambition he wished to have for the economy), he set out the vision he had for Scotland to have a strong, successful, innovative and dynamic economy.

For people who were after specific policy actions, the speech was light on detail, but it was not perhaps fair to expect the FM to outline these sorts of specifics in a speech like this.

The FM also had a difficult line to tread, given (as he himself pointed out) that he has been a Minister in government for 16 of the last 17 years and wanted to talk about successes in a record he is “immensely proud of”. At the same time, he needed to recognise that there were failings in the previous administration that had led to him being in office as First Minister.

Economic Growth is front and centre

The First Minister had said as he took office that eradicating child poverty was his key policy objective. This morning he was keen to set out that there is no conflict between eradicating child poverty and boosting economic growth – rather, they go hand in hand. He set out that boosting the economy will create opportunities for people and raise living standards and that reducing poverty raises spending power and boosts productivity. This is to a large degree true, but there will at times be trade-offs that will require one to be prioritised over the other.

Given the key stakeholders from businesses and business organisations in the room for his speech today, he was very keen to set out that his government was going to work collaboratively with businesses and other organisations to design and implement policies to strengthen the economy. Even more broadly, the FM said that he wished to bring more consensus building back into Scottish politics to try to achieve outcomes – to “build up, not tear down” as he put it.

There was a clear “Scotland is open for business” from the FM today. Supporting more investment in Scotland (particularly related to the Energy Transition and Housing) is clearly a priority for this new administration. This featured heavily in this speech and has been supported by some of the policy announcements made earlier this week.

We will do, rather than write strategy documents

A widely welcomed aspect of the speech is likely to be the FM’s acknowledgment that his government could probably do with carrying out “more concrete actions and fewer strategy documents”.

We have been on record a number of times as saying that the Scottish Government produces too many and too weighty strategy documents. So this is a crowd pleaser to a room of people who are likely to want to see action rather than just warm words and have seen endless strategies come and go.

However, it is important to remember what the problem sometimes was with these documents. Sometimes, in the case of recent economic strategy documents, the problem is that they aren’t really strategies – if they set out high-level principles that no one can disagree with, but don’t provide a meaningful framework for prioritisation and dealing with trade-offs, then they aren’t particularly useful.

In other cases, even where strategies are set, they can often gather dust on a shelf rather than meaningfully drive activity in government.

All of this from the FM is likely to be broadly welcomed – it’s an easy sell to say there will be less bureaucracy. But let’s not forget that we still need a clear economic strategy from the FM and the DFM – and that a strategy is not a strategy unless it rules some things out and recognises trade-offs and carries through into day-to-day activity. This clarity and policy stability is what is likely to be required to inspire the confidence in investors that this new administration would like to see.

Looking forward, not back

Many of the questions from journalists in the room today were designed to get the FM’s views on what went wrong with economic policy under the previous leadership, In addition, he was asked what his government was likely to do on policies like rent controls, short term lets legislation, and tax increases (specifically income tax) that have been put in place at the past budgets. Essentially, people were keen to hear what, in these specific areas, might change under a John Swinney government.

The FM said clearly that he was “looking forward, not back” in response to the question about what went wrong under Humza Yousaf.

With regards to specific policies where regulation was impacting businesses, he said his Cabinet colleagues were looking at lots of areas of policy and that more details on specific policies would be following in the weeks and months to come.

On tax, he was more forthcoming – acknowledging that the higher tax rates on above-median earners in Scotland are an important component of raising revenue in straitened fiscal times, but also saying that “we can’t keep raising taxes”. It will be interesting to see how this approach to tax is reflected in the Government’s Draft Tax Strategy, which is due alongside the Medium Term Financial Strategy (date currently tbc). That is if these two documents survive the cull of strategies …

Evidence-based approaches

The FM today said a number of times that the government he leads will be more practical and will be driven by the evidence of “what works”. We are very supportive of this, of course, and hope it signals a shift of more meaningful appraisal and assessment of policy options within the Scottish Government, with the associated investment in evaluation.

In doing this, unintended consequences, whether economic or otherwise, are more likely to be identified and can be proactively mitigated, and/or it can allow the government to change course at an earlier stage.

In addition, progress and continuous improvement can only happen in a culture of meaningful evaluation and being prepared to learn from what worked and what didn’t work.

For example, how well has the policy on rent freezes and caps worked to date? It would initially appear from rental costs that it has had the opposite effect on rents than the government presumably desired, and it would also appear to have had an impact on investor confidence in the sector. Given the FM’s focus on housing in his speech today, and his commitment to be evidence-based, it will be interesting to see how this policy area progresses.

Is this a meaningful shift in approach?

With his speech today, that is certainly what the FM is trying to convey. He was saying many of the right things to hearten those who want to see the government focus on economic growth.

However, the proof will be in the policy action that is actually taken. So, let’s wait for these details in the weeks to come.