As another New Year dawns, I’d like to pass on my best wishes for 2024 to my fellow Scots at home and abroad.
As we get ready to make our resolutions for the year to come, it is also time to take stock of the departing 12 months.
Looking back, we have worked hard on our mission to level up communities across Scotland.
Creating equality of opportunity for all – regardless of background – has been our ambition. Our levelling up initiatives are doing this by helping people and their neighbourhoods flourish.
Listening to local communities – and working closely with the Scottish Government and councils – is bearing fruit on our investments.
In 2023 we broke through the £2.9 billion barrier when it comes to UK Government levelling-up investment in Scotland.
Among the highlights of the last 12 months have been the creation of two Freeports with a UK Government investment of £26 million each, one on the Firth of Forth and the other on the Cromarty Firth.
These were followed by the establishment of two Investment Zones in Glasgow and the North East, both of which are benefitting from up to £160 million each from the UK Treasury.
Businesses in these areas will get special tax breaks and other support to help them flourish and create jobs.
Seven Scottish towns are receiving £20 million each as part of our Towns Fund. Levelling Up Partnerships have also been set up which will result in Dundee, the Western Isles, Argyll and Bute and Dumfries and Galloway receiving £20 million each. This funding will help transform these communities, boosting investment and jobs.
And 2023 saw the announcement of two further rounds of the Levelling Up Fund, which will pay for multi-million-pound community investment right across Scotland.
Along with my ministerial colleagues in the Scotland Office, Malcolm Offord and John Lamont, it has been great to visit many of these projects and see for ourselves the difference they are making.
Reflecting on 2023, it would be remiss of me not to mention the Scottish Government’s Gender Recognition Reform legislation.
The decision to issue a Section 35 Order for the first time in the history of devolution was not one which I took lightly. But when faced with proposals that would have an adverse impact on reserved equalities legislation I felt there was little option other than to act. I strongly believe the comprehensive judgement issued by Lady Haldane in the UK Government’s favour entirely justifies this stance.
Scotland is famous across the world for our culture and sport. We were delighted to contribute to the arts scene by contributing almost £9 million to the world-famous Edinburgh festivals.
I was thrilled that Scotland’s men’s team qualified for next year’s European Championships. It was a pleasure to welcome Steve Clarke to Dover House when we hosted a reception marking the 150th anniversary of the Scottish Football Association. Like all Scotland fans I’m tremendously excited by the thought of our team going to Germany in 2024.
A highlight of 2023 for so many was the Coronation of King Charles III. As Scottish Secretary I was greatly honoured to play a small part in an uplifting and moving ceremony which marked the beginning of a new era in the history of the United Kingdom.
I know that for many people the last few years have been extremely difficult. We are still feeling the impact of the Covid pandemic and Vladimir Putin’s illegal war in Ukraine has put pressure on our economy. Under the leadership of Rishi Sunak, the UK Government has made great strides in bringing inflation down.
And just as the broad shoulders of the UK Treasury provided unprecedented support during Covid, we have provided unprecedented financial help to tackle the cost of living crisis. Our £105 billion funding package is providing each household with an average of £3,700 in support.
By working together as one United Kingdom we can withstand the challenges the coming months and years throw at us.
And, looking ahead to 2024, my resolution is to keep working to bring more prosperity and jobs to Scotland. With that in mind, I’m looking forward to the opening of the Perth Museum, backed by £10 million from the UK Government and which will be a splendid new home for the Stone of Scone.
We will also see the signing of the full growth deals for Falkirk and Argyll and Bute, partnerships in which we will invest £40 million and £25 million respectively. And yet more money for community projects as we continue our levelling up mission.
Scotland’s export estimates for 2020 and 2021 published
Total sales to England, Wales and Northern Ireland reached an estimated £48.6 billion and accounted for the majority (61 per cent) of the value of Scotland’s exports in 2021.
Scotland’s sales to the rest of the UK are worth more than three times exports to the EU, the latest annual export statistics from the Scottish Government show, demonstrating the strength and critical importance of the UK Internal Market.
There was also a 6.2 per cent increase in the estimated value of Scotland’s international exports during 2021,to £31.3 billion, although these remained lower than before the pandemic. Scotland Office Ministers have banged the drum tirelessly to promote Scotland and Scottish business overseas through the extensive network of embassies and high commissions, with trade missions this year including to the USA and Vietnam.
Scotland’s exports to the EU are valued at an estimated £15 billion, accounting for 48 per cent of Scotland’s international exports, an increase of 0.5 per cent from 2020 and 11.7 per cent lower than in 2019.
Scottish Secretary, Alister Jack, said: “The Scottish Government’s export figures show again that the rest of the UK remains by far Scotland’s most important market. England, Wales and Northern Ireland combined buy more than 60 per cent of our exports.
“This is an important reminder of the importance of the UK’s internal market and the need for us to ensure that it continues to operate freely and effectively.
“We have also seen international sales increase to more than £31 billion. With our first trade deals post-Brexit coming into effect earlier this year Scottish businesses will be able to seize those new opportunities.”
‘This is a full-frontal attack on our democratically elected Scottish Parliament‘ – First Minister Nicola Sturgeon
Scottish Secretary Alister Jack has made an order under section 35 of the Scotland Act 1998, preventing the Scottish Parliament’s Gender Recognition Reform (Scotland) Bill from proceeding to Royal Assent.
Scottish Secretary Alister Jack said last night: “I have decided to make an order under section 35 of the Scotland Act 1998, preventing the Scottish Parliament’s Gender Recognition Reform (Scotland) Bill from proceeding to Royal Assent.
“After thorough and careful consideration of all the relevant advice and the policy implications, I am concerned that this legislation would have an adverse impact on the operation of Great Britain-wide equalities legislation.
“Transgender people who are going through the process to change their legal sex deserve our respect, support and understanding. My decision today is about the legislation’s consequences for the operation of GB-wide equalities protections and other reserved matters.
“I have not taken this decision lightly. The Bill would have a significant impact on, amongst other things, GB-wide equalities matters in Scotland, England and Wales. I have concluded, therefore, that this is the necessary and correct course of action.
“If the Scottish Government chooses to bring an amended Bill back for reconsideration in the Scottish Parliament, I hope we can work together to find a constructive way forward that both respects devolution and the operation of UK Parliament legislation.
“I have written today to the First Minister and the Scottish Parliament’s Presiding Officer informing them of my decision.”
Reacting to the announcement last night, First Minister Nicola Sturgeon tweeted: “This is a full-frontal attack on our democratically elected Scottish Parliament and it’s ability to make it’s own decisions on devolved matters.
“@scotgov will defend the legislation & stand up for Scotland’s Parliament. If this Westminster veto succeeds, it will be first of many”
The Scottish Secretary will address Westminster later today to further explain the reasons for this unprecedented decision. Doubtless Holyrood, too, will have much to say.
COLLISION COURSE: SUPREME COURT JUDGES SAY ‘NO’ TO SCOTTISH REFERENDUM
The Scottish Government has made a reference to the Supreme Court to establish whether the Scottish Parliament has the power to hold an independence referendum.
The case was heard on the 11th and 12th of October and the verdict was made public this morning – Wednesday 23 November.
TIME FOR SCOTLAND RALLY
THE SUPREME COURT JUDGEMENT:
Reference by the Lord Advocate of devolution issues under paragraph 34 of Schedule 6 to the Scotland Act 1998 UKSC 31
Date:23 November 2022
Justices
Lord Reed (President), Lord Lloyd-Jones, Lord Sales, Lord Stephens and Lady Rose
Background to the Appeal
The Scottish Government has drafted a Scottish Independence Referendum Bill which makes provision for a referendum on the question, “Should Scotland be an independent country?”. Under the Scotland Act 1998 (“the Scotland Act”), the power of the Scottish Parliament to make legislation (or its “legislative competence”) is limited.
A provision of a Bill will be outside the legislative competence of the Scottish Parliament and therefore not law if it relates to the matters which have been reserved to the United Kingdom Parliament in Westminster (sections 29(1) and (2)(b)). These reserved matters include “the Union of the Kingdoms of Scotland and England” and “the Parliament of the United Kingdom” (Schedule 5, paragraphs 1(b) and (c)).
In this reference, the Lord Advocate (the senior law officer of the Scottish Government) asks the Court whether the provision of the proposed Bill which provides for a referendum on Scottish independence would be outside the legislative competence of the Scottish Parliament because it relates to either or both of the reserved matters of the Union or the United Kingdom Parliament.
This is a legal question about the Scottish Parliament’s power to make legislation under the Scotland Act. The Court is not being and could not be asked to give a view on the distinct political question of whether Scotland should become independent from the rest of the United Kingdom.
The powers of the Scottish Parliament were not in issue during the 2014 referendum on Scottish independence. This is because, in 2013, an Order in Council under section 30(2) of the Scotland Act modified the definition of reserved matters to enable the Scottish Parliament to pass the 2014 referendum legislation. The United Kingdom Government is currently unwilling to agree to the making of another Order in Council to facilitate another referendum on Scottish independence.
The Lord Advocate’s reference was made under paragraph 34 of Schedule 6 to the Scotland Act. The Advocate General for Scotland (the Scottish law officer of the United Kingdom Government) raises two preliminary issues, namely, whether the Court can and should answer the reference.
There are consequently three questions which the Court must consider. First, is the question referred by the Lord Advocate a “devolution issue”? If not, it cannot be the subject of a reference under paragraph 34 of Schedule 6, which would mean that the Court does not have jurisdiction to decide it. Secondly, even if it is a devolution issue, should the Court exercise its discretion to decline to accept the reference? Thirdly, if the Court accepts the reference, how should it answer the question the Lord Advocate has referred to it?
Judgment
In a unanimous judgment, the Court answers the questions before it as follows. First, the question referred by the Advocate General is a devolution issue, which means that that the Court has jurisdiction to decide it.
Secondly, the Court should accept the reference. Thirdly, the provision of the proposed Bill which makes provision for a referendum on the question, “Should Scotland be an independent country?” does relate to matters which have been reserved to the Parliament of the United Kingdom under the Scotland Act.
In particular, it relates to the reserved matters of the Union of the Kingdoms of Scotland and England and the Parliament of the United Kingdom.
Accordingly, in the absence of any modification of the definition of reserved matters (by an Order in Council or otherwise), the Scottish Parliament does not have the power to legislate for a referendum on Scottish independence.
Reasons for the Judgment
Issue 1: Is the question referred by the Lord Advocate a devolution issue?
Only a “devolution issue” can be referred to the Court under paragraph 34 of Schedule 6 to the Scotland Act. The term “devolution issue” is defined by paragraph 1 of Schedule 6. Under paragraph 1(f), it includes “any other question arising by virtue of this Act about reserved matters” [13-14]. The Court concludes that the question referred by the Lord Advocate falls within this description and is therefore a devolution issue which the Court has jurisdiction to decide [47].
In reaching this conclusion, the Court holds, first, that the question referred is one “arising by virtue of” the Scotland Act because it is a question which arises under section 31(1) for the person wishing to introduce the Bill into the Scottish Parliament [16]. That person is required, on or before the Bill’s introduction, to give a statement confirming that, in their view, the provisions of the Bill would be within the legislative competence of the Scottish Parliament [9]. Secondly, the existence of the separate scheme for the scrutiny of Bills for legislative competence by the Court in section 33 of the Scotland Act does not prevent a reference from being made under paragraph 34 of Schedule 6 in relation to a proposed Bill, before it is introduced [21-27]. Thirdly, the terms of paragraph 1(f) of Schedule 6 are very wide. They are intended to sweep up any questions arising under the Scotland Act about reserved matters which are not covered elsewhere [37-42]. Fourthly, it is consistent with the rule of law and with the intention of the Scotland Act that the Lord Advocate should be able to obtain an authoritative judicial decision on the legislative competence of the Scottish Parliament in advance of the introduction of a Bill [44-46].
Issue 2: Should the Court decline to accept the Lord Advocate’s reference?
The Court concludes that it should accept the reference [54]. The reference has been made in order to obtain an authoritative ruling on a question of law which has already arisen as a matter of public importance. The Court’s answer will determine whether the proposed Bill is introduced into the Scottish Parliament. The reference is not therefore hypothetical, academic or premature [53].
Issue 3: Does the proposed Bill relate to reserved matters?
The question whether the provision of the proposed Bill which provides for a referendum on Scottish independence would relate to matters which have been reserved to the United Kingdom Parliament under the Scotland Act (section 29(2)(b)) is to be determined by reference to the purpose of the provision, having regard (among other things) to its effect in all the circumstances (section 29(3)) [56-57], [70], [75].
A provision will relate to a reserved matter if it has something more than a loose or consequential connection with it [57], [71-72]. The purpose and effect of the provision may be derived from a consideration of both the purpose of those introducing the legislation and the objective effect of its terms [73]. Its effect is not restricted to its legal consequences [74].
Applying this test, the reserved matters which are relevant here are “the Union of the Kingdoms of Scotland and England” and “the Parliament of the United Kingdom” (Schedule 5, paragraphs 1(b) and (c)). The latter reservation includes the sovereignty of the United Kingdom Parliament [76]. The purpose of the proposed Bill is to hold a lawful referendum on the question of whether Scotland should become an independent country, that is, on ending the Union and the sovereignty of the United Kingdom Parliament over Scotland [77], [82]. The Bill’s effect will not be confined to the holding of the referendum. Even if the referendum has no immediate legal consequences, it would be a political event with important political consequences [78-81]. It is therefore clear that the proposed Bill has more than a loose or consequential connection with the reserved matters of the Union of Scotland and England and the sovereignty of the United Kingdom Parliament. Accordingly, the proposed Bill relates to reserved matters and is outside the legislative competence of the Scottish Parliament [82-83], [92].
The Scottish National Party (intervening) made further written submissions founded on the right to self–determination in international law and the principle of legality in domestic law [84]. The Court rejects these submissions, holding that the right to self–determination is not in issue here [88-89] and does not require a narrow reading of “relates to” in section 29(2)(b) so as to limit the scope of the matters reserved to the United Kingdom Parliament under the Scotland Act [90]. Similarly, the allocation of powers between the United Kingdom and Scotland under the Scotland Act does not infringe the principle of legality [91].
References in square brackets are to paragraphs in the judgment
Note
This summary is provided to assist in understanding the Court’s decision. It does not form part of the reasons for the decision. The full judgment of the Court is the only authoritative document. Judgments are public documents and are available online. Decided cases
The UK Supreme Court has today determined that the draft Scottish Independence Referendum Bill is outside the powers of the Scottish Parliament.
The Secretary of State for Scotland, Alister Jack, said that the UK Government was committed to working with the Scottish Government on the issues that matter most to people in Scotland.
Alister Jack said: “We note and respect the unanimous ruling from the Supreme Court today.
“People in Scotland want both their governments to be concentrating all attention and resources on the issues that matter most to them. That’s why we are focussed on issues like restoring economic stability, getting people the help they need with their energy bills, and supporting our NHS.
“Today alone, 11.6 million UK pensioners – around one million in Scotland – are starting to receive up to £600 to help with their energy bills this winter.
“As the Prime Minister has made clear, we will continue to work constructively with the Scottish Government in tackling all the challenges we share and face.”
NICOLA STURGEON’s RESPONSE:
“Earlier today, the Supreme Court delivered its judgment on the Lord Advocate’s reference, seeking clarity on whether or not the Scotland Act 1998 allows the Scottish Parliament to legislate for a referendum on independence.
“First of all – while I am obviously very disappointed by it – I respect and accept the judgment of the Court. In securing Scotland’s independence we will always be guided by a commitment to democracy and respect for the rule of law.
“That principle also reflects a practical reality – the route we take must be lawful and democratic for independence to be achieved. And as is becoming clearer by the day, achieving independence is not just desirable – it is essential if Scotland is to escape the disaster of Brexit, the damage of policies imposed by governments we don’t vote for, and the low growth, high inequality economic model that is holding us back.
“However, we must be clear today that the Supreme Court does not make the law – it interprets and applies it. If the devolution settlement in the Scotland Act is inconsistent with any reasonable notion of Scottish democracy – as is now confirmed to be the case – that is the fault of Westminster lawmakers, not the justices of the Supreme Court.
“In addressing the implications of today’s ruling, it is also important to be mindful of what the Court was not asked to decide and therefore what the ruling does not tell us.
“The Court was not asked to decide if there is a democratic mandate for a referendum. The mandate and parliamentary majority for a referendum is undeniable.
“Nor was the Court asked if Scotland should be independent. Only the Scottish people can be the judge of that. And it was not asked if there is any democratic means by which Scotland can choose independence.
“The question the Court was asked to decide – the only question the court could reasonably answer – was a narrower one. Would a Bill providing for an advisory referendum on independence be within the current powers of the Scottish Parliament?
“In other words, can the Scottish Parliament legislate for an independence referendum without the prior agreement of Westminster? The Court has answered that question in the negative.
“It has determined that under the Scotland Act 1998 – which encapsulates the current devolution settlement – even an advisory referendum asking the question “Should Scotland be an independent country?’ is a matter reserved to the Westminster Parliament.
“What that means is that without an agreement between the Scottish and UK governments for either a section 30 Order or a UK Act of Parliament to change its powers, the Scottish Parliament cannot legislate for the referendum the people of Scotland have instructed it to deliver.
“That is a hard pill for any supporter of independence – and surely indeed for any supporter of democracy – to swallow. However, as I said back in June when I informed Parliament that the Lord Advocate had agreed to make this reference, it was always the case that in the absence of an agreement with the UK government, the question of the Scottish Parliament’s competence in relation to a referendum would end up in the Supreme Court – if not before legislation then certainly after any decision by Parliament to pass a Bill.
“So while it is a statement of the obvious that this is not the outcome I hoped for, it does give us clarity. And having that clarity sooner rather than later allows us now to plan a way a forward, however imperfect it might be. Now, I am enough of a realist to know that the immediate questions posed by today’s judgment will be for me and the SNP.
“I am also long enough in the political tooth to expect some triumphalism on the part of unionist politicians. However, unionists of a more thoughtful disposition will, I suspect, know that to be misguided.
“Indeed, they will have been hoping that the Court – as the UK government asked it to do – would have declined to answer the substantive question today.
“That is because they will understand that this judgment raises profound and deeply uncomfortable questions about thebasis and future of the United Kingdom. Until now, it has been understood and accepted – by opponents of independence as well as by its supporters – that the UK is a voluntary partnership of nations.
“The Royal Commission on Scottish Affairs back in 1950 said this: “Scotland is a nation and voluntarily entered into the Union as a partner”.
“That sentiment was echoed nearly 60 years later by the cross-party Calman Commission which described the UK as “a voluntary union and partnership”.
“And it was reinforced in 2014 by the Smith Commission which made clear that “nothing in its report prevented Scotland becoming an independent country should the people of Scotland so choose”.
“What today’s ruling tells us, however, is that the Scotland Act does not in fact uphold that long held understanding of the basis of the relationships that constitute the UK – on the contrary, it shatters that understanding completely.
Let’s be blunt: a so-called partnership in which one partner is denied the right to choose a different future – or even to ask itself the question —cannot be described in any way as voluntary or even a partnership at all. So this ruling confirms that the notion of the UK as a voluntary partnership of nations is no longer, if it ever was, a reality.
“And that exposes a situation that is quite simply unsustainable. In the words of former Tory Prime Minister, John Major: ‘No nation could be held irrevocably in a Union against its will’.
“Indeed, perhaps what today’s judgment confirms more than anything else, is that the only guarantee for Scotland of equality within the British family of nations is through independence – that fact is now clearer than ever before.
“The immediate question, of course, is what happens now. Obviously, I am making these remarks just a couple of hours after the Court issued its judgment.
“While the terms and import of the judgment are clear it will still be important to absorb and consider it fully. I think it is safe to predict that this will not be my last word on the matter.
“However, my initial views – building on what I said in June – are as follows. First of all, it is worth repeating that the Court judgment relates to one possible route to Scotland making a choice on independence – a referendum Bill in the Scottish Parliament without Westminster agreement.
“While it is absolutely the case – if the UK was a voluntary partnership – that this would not be needed, it remains open to the UK government, however belatedly, to accept democracy and reach agreement.
“I make clear again today, therefore, that I stand ready at any time to reach agreement with the Prime Minister on an adjustment to the devolution settlement that enables a lawful, democratic referendum to take place – a process that respects the right of people in Scotland to choose their future, in line with the mandate of the Scottish Parliament, lets politicians make the case for and against independence and, crucially, allows the Scottish people to decide.
“What I will not do is go cap in hand. My expectation, in the short term at least, is that the UK government will maintain its position of democracy denial. That position is, in my view, not just unsustainable – it is also utterly self-defeating.
“The more contempt the Westminster establishment shows for Scottish democracy, the more certain it is that Scotland will vote Yes when the choice does come to be made.
“As for that choice – and for the avoidance of any doubt – I believe today, just as I did yesterday, that a referendum is the best way to determine the issue of independence.
“The fact is, the SNP is not abandoning the referendum route. Westminster is blocking it. And in that scenario, unless we give up on democracy – which I, for one, am not prepared to do – we must and will find another democratic, lawful and constitutional means by which the Scottish people can express their will.
“In my view, that can only be an election. The next national election scheduled for Scotland is the UK General Election, making it both the first and the most obvious opportunity to seek what I described back in June as a de facto referendum.
“As with any proposition in any party manifesto in any election, it is up to the people how they respond. No party can dictate the basis on which people cast their votes. But a party can be – indeed should be – crystal clear about the purpose for which it is seeking popular support.
“In this case, for the SNP, it will be to establish – just as in a referendum – majority support in Scotland for independence, so that we can then achieve independence. That, then, is the principle.
“However, now that the Supreme Court’s ruling is known, and a de facto referendum is no longer hypothetical, it is necessary to agree the precise detail of the proposition we intend to put before the country – for example, the form our manifesto will take, the question we will pose, how we will seek to build support above and beyond the SNP, and what steps we will take to achieve independence if we win.
“As you would expect, I have views on all of that. However, given the magnitude of these decisions for the SNP, the process of reaching them is one that the party as a whole must be fully and actively involved in.
“I can therefore confirm that I will be asking our National Executive Committee to convene a special party conference in the new year to discuss and agree the detail of a proposed de facto referendum.
“In the meantime, the SNP will launch and mobilise a major campaign in defence of Scottish democracy. For we should be in no doubt – as of today, democracy is what is at stake. This is no longer just about whether or not Scotland becomes independent – vital though that decision is.
“It is now more fundamental – it is now about whether or not we have the basic democratic right to choose our own future. Indeed, from today, the independence movement is as much about democracy as it is about independence.
“To conclude, I am well aware that there will be a real sense of frustration and disappointment today in both the SNP and the wider movement. I share it. My message, though, is this: while that is understandable, it must be short lived. And I believe it will be.
“Indeed, I suspect we will start to see just how short lived in the strength of the gatherings planned for later today in Edinburgh and other parts of Scotland. The fact is we have work to do.
“The case for Scotland becoming independent is more compelling and urgent than ever. Independence is now essential because of what Westminster control means, on a day-to-day basis, for people in this country, and for future generations.
“Thanks to Westminster control, the UK economy is in crisis – and we are entering a new age of Tory austerity. Low-income households in the UK are now 22 per cent poorer than their counterparts in France, and 21 per cent poorer than in Germany.
“To put that in context – it means the living standards of the lowest-income households in the UK are £3,800 lower than their French equivalents. Thanks to Westminster control, we are subject to an immigration and asylum system that neither works in practice, nor serves our need to grow our population.
“It mistreats those who come to our shores looking for sanctuary from oppression, and deprives us of the talents and taxes of those who want to live, work and contribute to our country. Thanks to Westminster control, even the limited measure of self-government that devolution provides is no longer guaranteed.
“The steady erosion of the powers of our Parliament, the undermining of the Sewel Convention, the imposition of the UK Internal Market Act, and now the Retained EU law Bill.
“And if we stick with Westminster control we are stuck outside the European Union permanently. And that comes at a heavy cost.
“According to the Office for Budget Responsibility, Brexit will mean in the long-run a fall in national income of 4 per cent compared with EU membership. That is equivalent to a cut in public revenues in Scotland of £3.2 billion.
“All the main Westminster parties now support a Brexit that Scotland did not vote for. And the Brexit conspiracy of silence that exists between them means the UK economy will become weaker, and people will pay a heavier and heavier price.
“That price will be paid in hard economic terms – but also in the narrowing of horizons and loss of opportunities for the generations to come. Scotland can do better than this.
“The example of independent countries across Europe and the world, many with nowhere near the assets and strengths we have, tells us that loudly and clearly. We hear from Westminster that what is needed is stability.
“But let’s be clear – the Westminster system has shown that it is not capable of securing stability. The people relying on food banks are not being offered stability.
“Those across our country afraid to switch on their heating are not being offered stability. The businesses struggling with Brexit are not being offered stability. The young people denied the rights and opportunities of EU membership are not being offered stability.
“A UK economic model which delivers low growth and low productivity coupled with sky high rates of poverty and inequality does not, and never will offer stability. Scotland can do so much better. So, yes, of course, this judgment is a disappointment. But it is not one we can or will wallow in.
“Indeed, getting the judgment now rather than later gives us the clarity we need to plot a definite way forward. Fundamentally, our job today is the same as it was yesterday. It is to persuade a majority of the Scottish people of the fact that independence is the best future for Scotland – and ensure a democratic process that allows majority support to be established beyond doubt.
“That job is not easy, I know – on some days, like today perhaps, it feels more difficult than ever. But nothing – nothing – worth doing is ever easy. There is no doubt in my mind that independence will be worth it. And my resolve to achieve independence is as strong as it has ever been. Indeed, it is if anything even stronger. Prosperity, equality, internationalism – and now, without any doubt, the very democracy of our nation – depends on independence.”
Scottish Secretary Alister Jack has responded to the Chancellor’s Autumn Statement where the UK Government pledged to restore stability to the economy, protect high-quality public services and build long-term prosperity for the United Kingdom.
Jeremy Hunt outlined a targeted package of support for the most vulnerable, alongside measures to get debt and government borrowing down.
The plan he set out is designed to fight against inflation in the face of unprecedented global pressures brought about by the pandemic and the war in Ukraine.
Scottish Secretary Alister Jack said: “We are facing complex global challenges, and the Chancellor has had to take some difficult decisions. By reducing our borrowing, tackling the root causes of inflation and putting our public finances on a stable footing, we will create the economic stability we need for our long-term prosperity.
“As we promised, we have put in place extra support for those who need it most, with support on energy bills and increases in pensions, benefits and the National Living Wage.
“The Scottish Government will receive an additional £1.5 billion, to help support public services in Scotland. We are also putting extra money into two key projects in Scotland. Catapult will help grow our offshore energy capability, and a feasibility study to upgrade the A75 will pave the way for much improved connectivity between Scotland, Northern Ireland and England.”
As a result of Thursday’s tax and spending decisions, the Scottish Government will receive around an additional £1.5 billion over 2023-24 and 2024-25.
Delivering for the people of Scotland, the Chancellor has reconfirmed the UK Government’s commitment to work with the Scottish Government on options to improve the A75, in line with the findings from the Union Connectivity Review.
He also confirmed that funding for the UK’s 9 Catapult innovation centres will increase by 35% compared to the last funding cycle, this includes the offshore renewable catapult in Glasgow.
To protect the most vulnerable from the worst of cost-of-living pressures, the Chancellor announced a package of targeted support worth [£26bn], which includes continued support for rising energy bills. More than eight million households on means-tested benefits will receive a one-off payment of £900 in instalments, with £300 to pensioners and £150 for people on disability benefits.
The Energy Price Guarantee, which is protecting households throughout this winter by capping typical energy bills at £2,500, will continue to provide support from April 2023 with the cap rising to £3,000. With prices forecast to remain elevated throughout next year, this equates to an average of £500 support for households in 2023-24.
Working age benefits will rise by 10.1%, boosting the finances of millions of the poorest people in the UK, and the Triple Lock will be protected, meaning pensioners will also get an inflation-matching rise in the State Pension and the Pension Credit.
The National Living Wage will be increased by 9.7% to £10.42 an hour, giving a full-time worker in Scotland a pay rise of over £1,600 a year, benefitting 160,000 of the lowest paid workers.
The Scottish Government is receiving additional funding at the Autumn Statement for the current Spending Review period to 2024-25, but will be expected to live within these new budgets and support our mission of fiscal discipline.
To improve public finances, from 2025-26 onwards day to day spending will increase by 1% with capital spending held flat in cash terms. This means overall departmental and devolved administration budgets will continue to rise in real terms, although more slowly, increasing by 0.5% each year to 2027-28.
To raise further funds, the Chancellor has introduced tax rises of £25 billion by 2027-28. Based around the principle of fairness, all taxpayers will be asked to contribute but those with the broadest shoulders will be asked to contribute a greater share.
The threshold at which higher earners start to pay the 45p rate will be reduced from £150,000 to £125,140, while Income Tax, Inheritance Tax and National Insurance thresholds will be frozen for a further two years until April 2028.
The Dividend Allowance will be reduced from £2,000 to £1,000 next year, and £500 from April 2024 and the Annual Exempt Amount in capital gains tax will be reduce from £12,300 to £6,000 next year and then to £3,000 from April 2024.
The most profitable with the broadest shoulders will also be asked to bear more of the burden. The threshold for employer National Insurance contributions will be fixed until April 2028, but the Employment Allowance will continue protect 40% of businesses from paying any NICS at all.
In addition, the government is implementing the reforms developed by the OECD and agreed internationally to ensure multinational corporations pay their fair share of tax. And as confirmed last month, the main rate of Corporation Tax will increase to 25% from April 2023.
To ensure businesses making extraordinary profits as a result of high energy prices also pay their fair share, from 1 January 2023 the Energy Profits Levy on oil and gas companies will increase from 25% to 35%, with the levy remaining in place until the end of March 2028, and a new, temporary 45% levy will be introduced for electricity generators. Together these measures will raise over £55 billion from this year until 2027-28.
To ensure fiscal discipline while providing support for the most vulnerable, the Chancellor has introduced two new fiscal rules, that the UK’s national debt must fall as a share of GDP by the fifth year of a rolling five-year period, and that public sector borrowing in the same year must be below 3% of GDP.
Overall, the Autumn Statement improves public finances by [£55 billion] by 2027-28, and the OBR forecasts both of these rules to be met a year early in 2026-27.
‘They haven’t got a clue’: Edinburgh residents share experiences of the cost of living crisis
As spending cuts worsen, on Budget Day, Greenpeace volunteers hosted a screening of the new short film ‘The Cost of Living’.
This documentary, made by Greenpeace in partnership with the New Economics Foundation, tells the story of volunteers in food banks and community centres in the Rother Valley, Yorkshire. The film depicts how communities hard hit by the cost of living crisis are pulling together to support each other at this difficult time and how properly insulating homes can help tackle the cost of living and climate crises.
On the eve of the autumn statement, the trailer for the film was projected onto Prime Minister Rishi Sunak’s house in his Yorkshire constituency to encourage him to address the issues shown in the film.
Greenpeace Edinburgh Local Group, as part of the Warm This Winter Coalition, is campaigning for the cost of living and climate crises to be solved by investing in renewable energy, properly insulating homes and providing people with the skills and training needed to deliver this green energy revolution.
Greenpeace is calling for at least £6 billion to be spent on implementing a national insulation and energy efficiency programme during this parliament. People living in poorly insulated homes will have to pay almost £1,000 more than others on their energy bills this winter.
Data from the End Fuel Poverty Coalition shows that almost a quarter (24.5%) of UK households are currently experiencing fuel poverty.
Around 20 people watched the documentary at the Grassmarket Community Project, one of more than 40 screenings taking place across the UK this winter. The screening was followed by a talk from Greenpeace speaker Issy, and a panel discussion with representatives from local organizations.
The panel was made up of Aditi Jehangir, chair of the Gorgie and Dalry branch of Living Rent, Stuart Bretherton, Energy for All Campaigner at Fuel Poverty Action and Louis Keal, an activist from Just Stop Oil.
After the panel discussion, members of the public were given advice on contacting their local MPs in Edinburgh, Ian Murray, Tommy Sheppard, Deirdre Brock, Joanna Cherry and Christine Jardine, to share how they are being affected by the sharp rise in energy and food prices.
Louis argued that the solution to the crises lies in connecting with one another and ‘finding our people power in a way we never have before,’ while Stuart reiterated the words of one of the film’s interviewees, referring to the government’s understanding of how the crisis is affecting ordinary people: ‘they haven’t got a clue’.
Zoë, a volunteer from Newington, said: ‘The Cost of Living depicts towns in the Rother Valley, but the experience of people living in Edinburgh is very similar. We are facing enormous energy bills, and more and more people are relying on the community to help put food on their table and provide a warm refuge.
“Food banks and community centres are being stretched to the limit as winter approaches. It’s vital that our MPs know how much people are struggling at the moment, but that there are solutions to this problem.
“In this week’s Budget the Government seems to have finally realised that home insulation needs to be done, but not quite how urgently we need to do it. Home insulation will make our homes permanently warmer, and our bills permanently lower, as well as reducing our carbon emissions.
“Almost a quarter of the country is in fuel poverty right now and we need an urgent insulation programme now to fix this. Ministers shouldn’t be waiting another three years to do what should have happened years ago.“
Recent polling conducted by Survation on behalf of Greenpeace shows that 68.8% of people in Scotland have had to make cuts to other spending due to rising energy bills, and 61.8% feel that their standard of living has got worse since the last general election. 83.6% of people in Scotland would support a government programme to install home insulation in their area.
A recent report by Cambridge Econometrics on behalf of Greenpeace UK, highlights how a government backed programme to insulate homes and install heat pumps could inject £6.8 billion into the economy every year and create almost 140,000 new jobs by 2030.
These green home upgrades could provide huge economic and social benefits – including to those on low incomes, older people and People of Colour, who tend to be most exposed to fuel poverty – while slashing bills and carbon emissions.
Scottish Secretary Alister Jack has taken part in an event to mark Dunfermline officially becoming a city, after the new status was awarded as part of the late Queen Elizabeth II’s Platinum Jubilee celebrations.
Their Majesties King Charles III and the Queen Consort visited the former town for a ceremony to hand over the Papers Patent, which officially confirms Dunfermline as Scotland’s eighth city.
Inside the City Chambers, King Charles III presented the official documents to Provost of Fife, Councillor Jim Leishman, in front of an audience of invited guests.
Speaking ahead of the event, Scottish Secretary Alister Jack said: “Being awarded city status represents a very special moment for Dunfermline and its community.
“It is particularly poignant, and a true honour, that Their Majesties King Charles III and the Queen Consort will be present at the event, marking their first official engagement since the end of formal Royal mourning.
“This Royal ceremony heralds an exciting new chapter in Dunfermline’s history, and I am delighted to attend and celebrate this wonderful city’s rich heritage and promising future.”
TORIES HAVE LITTLE TO CELEBRATE FOLLOWING BY-ELECTION HAMMERINGS
The UK Government will show its support for Scotland’s agriculture, food, drink and farming sectors when it takes part in the Royal Highland Show.
The four-day event, the first full show since 2019, gives the rural industries and members of the public the chance to speak to Ministers and staff from a range of government departments about what is important to them.
They will also be able to find out more about how the UK Government is delivering for people in Scotland.
Scottish Secretary Alister Jack and UK Government Minister for Scotland Malcolm Offord toured the Ingliston showground yesterday, and today will see UK Government Minister for Scotland Iain Stewart in attendance and Environment Secretary George Eustice is also due at the show.
Between them they’ll be meeting with a range of key stakeholders to discuss issues across agriculture, farming and Scotland’s world famous food and drink sectors, including gene editing technology, which farmers and bodies like the James Hutton Institute have been vocal in supporting.
Ministers will continue to urge the Scottish Government to join the UK Government in introducing legislation to cut red tape and support the development of innovative tech to grow more resistant, more nutritious and more productive crops – reducing the need for pesticides and lowering costs to farmers.
Scottish Secretary Alister Jack said: “It’s fantastic that the Royal Highland Show is back, bigger and better than ever. It’s Scotland’s biggest agriculture event and made even more special this year with it being the 200th anniversary.
“The UK Government will be making full use of this opportunity to meet with key players from the various sectors who make such a huge contribution to our everyday lives and Scotland’s economy.
“It’s vital that the UK and Scottish Governments work together – as well as with businesses – to ensure our rural economy can continue to grow. Gene editing is an area where we can collaborate – and where we can really make a difference as we seek to strengthen our food security, tackle climate change and bring down food prices.
“Gene editing is not genetic modification. It is using science to speed up what farmers have done for generations – breeding new strains of crops that are more disease and drought resistant. The industry in Scotland is clear – it does not want to be left behind.”
Attracting almost 190,000 visitors, Scotland’s biggest outdoor event provides an important platform for show-goers to find out how the UK Government is delivering for people in Scotland.
This year representatives in the UK Government marquee include the department for Business, Energy & Industrial Strategy (BEIS), Border Force, Her Majesty’s Coastguard, HM Revenue & Customs (HMRC), the Department for Transport (DfT), the Department for International Trade (DIT), the Department for Levelling Up, Housing & Communities (DLUHC) and the Department for Work and Pensions (DWP).
The British Armed Forces will also be present.
The Scottish Secretary will also host a reception with the Scotch Whisky Association, showcasing the best of the UK’s biggest food and drink export.
It’s unlikely that the Scottish Secretary, a loyal supporter of PM Boris Johnson, will be particularly keen to discuss last night’s cataclysmic by-election defeats. Doubtless we can expect: ‘mid term election by elections are an opportunity to give the government a kicking … we will listen to the public … we will learn the lessons … get on with the job … etc. .. etc. … etc.
Scottish Secretary Alister Jack this week travelled to Finland and Norway on a mission to boost post-Brexit trade links.
Finland and Norway have strong business links with Scotland, with Scottish exports to both countries are worth more than £1 billion a year in total. There is huge further potential for Scottish businesses.
Mr Jack undertook a packed programme in Helsinki, Oslo and Bergen. His engagements included:
Meeting key business representatives – including from the defence, manufacturing and energy sectors
Holding talks with leading political figures
Visiting the Haakonsvern naval base
Speaking ahead of his visit, Alister Jack said: “It is an honour to promote Scottish and UK interests in Finland and Norway. We greatly value the strong and important ties between the UK and our European friends and neighbours.
“There are enduring cultural, business and trade links between Scotland and Finland and Norway, and I look forward to strengthening those further on my visit.”
The Scottish Secretary’s itinerary also included:
Visiting Green waste management provider Fortum, paper manufacturer UPM, and seafood producer MOWI
Meeting the Finnish Trade Minister, Ville Skinnari, and Foreign Affairs Minister Johanna Sumuvuori
Meeting the Norwegian Defence Minister, Odd Roger Enoksen, and Norwegian Foreign Affairs Minister Anniken Huitfeldt.
Mr Jack travelled to Finland on Monday 28 February, then on to Norway on Wednesday 2 March. In both countries his visit was supported by the British Embassies, part of the UK’s extensive diplomatic network.
Scotland’s onshore GDP grew by 0.9% in June, according to statistics announced today by the Chief Statistician. Output remains 2.1% below the pre-pandemic level in February 2020.
Services sector output grew by 1.2% in June, with increases in seven of the 14 subsectors. The largest contribution to growth was from accommodation and food services for the third month in a row as activity continued to pick up after the easing of restrictions.
Output in the production sector increased by 0.5% overall, with growth in the electricity and gas supply subsector offset by falls in manufacturing and water and waste management. Output in the construction sector is estimated to have fallen by 1.4%, broadly in line with the UK as a whole over the course of the latest quarter.
Using the experimental monthly statistics for Quarter 2 as a whole (April to June), GDP is provisionally estimated to have grown by 4.9%, reflecting a recovery in output after the fall of 1.8% during the lockdown restrictions in Quarter 1.
Scottish Secretary Alister Jack responds to June figures
Scottish Secretary Alister Jack said: “While today’s figures show some resilience, we still face challenges. A strong, sustainable recovery remains our priority.
“The UK Government put unprecedented measures in place from the very beginning of the pandemic to protect lives and livelihoods. That’s included supporting the jobs of nearly a million people in Scotland through furlough and with unprecedented financial help for the self-employed.
“More than 90,000 businesses have benefited from business loans and VAT cuts have kept firms in the hardest hit sectors afloat.
“We’ve provided the Scottish Government with more than £14.5 billion in additional funding, £1.5 billion has been invested in growth deals across Scotland and our new Levelling Up and Community Renewal Funds will benefit communities right across the UK.
“In driving our economy into recovery, our Plan for Jobs will help more people get back into work and the success of the UK Government-funded vaccine programme is paving the way for us to build back better and stronger.”
The Monthly GDP Estimate for June 2021 is available at:
People across Scotland are being given the chance to become owners of at-risk local pubs, theatres, post offices, sports grounds and corner shops thanks to the UK Government’s new £150 million Community Ownership Fund.
The move is part of the UK Government’s strategy to build back better from the pandemic by giving communities the power to save the local institutions that bring us together and foster a sense of community.
Details were published yesterday of how voluntary and community organisations across Scotland and the rest of the UK will be able to bid for up to £250,000 matched funding to buy or take over local assets and run them.
Up to £1 million will be available to establish sports clubs or help to buy sports grounds at risk without intervention – meaning a group of loyal supporters could become the Chairman and board at their beloved local team.
A total of £12.3 million has been set aside for community projects in Scotland, whether they be sporting and leisure facilities, cinemas and theatres, music venues, museums, galleries, parks, pubs, post office buildings and shops.
The Prime Minister unveiled more detail as part of a major speech setting out how the UK Government will continue to ‘level up’ all regions of the country as we bounce back from the pandemic.
Scottish Secretary Alister Jack said: “Alongside the Levelling Up, Community Renewal and UK Shared Prosperity Funds, the Community Ownership Fund is part of a crucial package of UK Government investment to support communities.
“The funds will play an important role as we build back better from the pandemic. I encourage communities across Scotland to take advantage of the wonderful opportunities the Community Ownership Fund provides.”
The announcement follows major investment and action from the UK Government to level up opportunity and prosperity across all areas of the country, including through the £4.8 billion Levelling Up Fund and the £220 million Community Renewal Fund.
The UK Government will undertake a series of information events with communities, the Voluntary and Community Sector (VCS) and local authorities in all parts of the UK.
The first bidding round closes on 13th August with another seven bidding rounds expected to take place over the next four years.
TUC: We can’t level up the country without levelling up at work
Commenting on yesterday’s speech by the prime minister on levelling up, TUC General Secretary Frances O’Grady said: “We can’t level up the country without levelling up at work.
“This pandemic has brutally exposed the terrible working conditions, low pay and insecurity many of our key workers face.
“But so far, there has been precious little to show for the government’s vaunted levelling up agenda. And today’s announcements will do little to change that.
“With more than 1 million children of key worker households in poverty and 3.6 million workers stuck in insecure jobs, it’s time the government moved on from empty sound bites.
“Enough is enough. Ministers must invest in good green jobs in industries of the future, ban zero hours contracts and give all of our key workers a pay rise.
“And they must invest in warmer homes, faster broadband and better public transport links across the country. That’s how we level up the UK.”
