If you don’t have the time (or the desire!) to read this blog in its entirety – just read this: we are looking for voluntary organisations who are expecting funding from the Scottish Government in the forthcoming financial year to take part in a quick and easy monthly survey for six months. To get involved, contact details can be found at the bottom.
If you do have time to read the whole blog – here’s a bit more on why we’re doing it:
At SCVO, we’ve been working hard over the last couple of years to build our Fair Funding asks in response to what the sector has told us. We’ve also been putting a lot of time and effort into taking those asks to parliament. A result of that has been the Scottish Government’s commitment to Fairer Funding by 2026 and, although that remains largely undefined at present, some additional commitments have filtered out since.
One of those commitments relates to funding notifications. We know that timely decision making, and subsequent issuing of funds, is crucial to ensuring no organisation is disadvantaged by the funding process.
When decisions and notifications are delayed, organisations are plunged into uncertainty which can have hugely negative impacts on their ability to deliver services, retain staff, and plan ahead.
And so, as part of our Fair Funding package, we have been asking the Scottish Government to ensure funding decisions are issued no later than December and funds paid no later than the start of the tax year in April.
We were encouraged, then, when Colin Smyth MSP submitted a written question at parliament at the end of November, asking “what action it is taking to ensure that its funding decisions regarding support for the voluntary sector are issued no later than December, and that any funds are paid no later than the start of the tax year in April”.
The fact that we had not had prior contact with Colin would suggest that our Fair Funding calls, with the support of sector organisations echoing those calls, are very much landing with MSPs.
But even more encouraging was the Scottish Government’s response: “We understand that organisations need timely grant decisions and payments in order to reduce financial uncertainty and effectively resource delivery,” the Cabinet Secretary said.
“In line with the commitment given by the First Minister, we are working, within the context of the Scottish Budget process, to issue notifications of funding arrangements to third sector organisations, as soon as is practicably possible and no later than end of March for funding beginning on 1 April.”
With that in mind, we are keen to track the experiences of voluntary organisations who expect to receive funding from the Scottish Government this coming financial year.
We’re looking to build a group of such organisations to participate in a monthly survey, beginning in a few weeks and running for six months. The survey itself will be quick and easy to complete, the results gathered will be kept entirely anonymous, and your participation will allow us to document the journeys of organisations between February and July this year in terms of the relevant correspondence and notifications they are receiving from the Scottish Government.
In July, we will then hopefully be able to congratulate the Scottish Government on realising this commitment on timely notifications. Alternatively, if that is not the case, we will have the statistics that will allow us to hold the Scottish Government to account and to demand that Fairer Funding genuinely does incorporate this and many other of our Fair Funding asks in future.
If your organisation is awaiting notification from the Scottish Government on funding for the forthcoming financial year and you’d like to participate in this series of surveys, or you would like a little more information, please get in touch with Jason Henderson at: jason.henderson@scvo.scot
A third of organisations reported this as one of their top challenges
Third Sector organisations in Scotland are increasingly facing shortages of staff and volunteers, a new report has warned.
The Scottish Third Sector Tracker has found that issues relating to staffing and volunteers are one of the top challenges for a third of voluntary sector organisations.
Data from the tracker observes the emergence of the sector from the Covid-19 pandemic through 2021, followed by the development of the cost-of-living crisis and associated organisational concerns during 2022 and 2023.
In August 2021, 35% of organisations reported a significant concern about staff and volunteer numbers. Just two years on, that figure has now risen to 65%, with only finances currently proving a bigger challenge for the sector.
While staff and volunteer support remain a growing concern, third sector groups report an ongoing increase in demand for their core services and activities over the six waves of the tracker. In Wave 1 (Aug 2021), 56% of organisations reported an increased demand, rising to 63% by Wave 6 (Apr 2023).
These factors, on top of growing financial pressures due to the rising costs crisis and public sector funding cuts, are leading to a perfect storm for charities and voluntary groups, with strain put on already stretched teams.
Anna Fowlie, Chief Executive of the Scottish Council for Voluntary Organisations (SCVO), said: “The Scottish voluntary sector is a significant employer, providing jobs for 5% of the Scottish workforce.
“At a time where many organisations are facing recruitment challenges, the funding environment means that many voluntary organisations are struggling to keep pace with salary increases needed to attract and retain staff.
“Existing staff and volunteers have been working flat out since Covid, helping organisations and communities to weather the cost-of-living crisis. We can no longer afford to rely on their goodwill to go the extra mile.
“The invaluable services and supports provided by Scotland’s voluntary sector need sustainable investment to ensure their survival.”
Volunteer Scotland are also concerned by the staff and volunteer crisis facing the sector, highlighted by the Third Sector Tracker.
The recent release of the 2022 Scottish Household survey results reinforces the volunteer crisis, with formal volunteer participation rates falling by 4 percentage points since 2019 to 22% – this equates to less than one million Scottish adults volunteering.
In light of the current crisis, the actions that can be undertaken by volunteer involving organisations include ensuring that volunteer expense policies are clear and considering how roles can be made more flexible to fit with the decreased time volunteers have available.
Alan Stevenson, CEO of Volunteer Scotland said: “The many impacts of the cost-of-living crisis on volunteering has meant that we can no longer take for granted the contribution of our volunteers.
“While recruitment and retention issues are being felt more acutely by some, the first step for all must be the focus on good volunteering practice, appropriately supported.”
The Scottish Third Sector Tracker is a growing research community made up of representatives from third sector organisations based across the whole of Scotland, who are willing to share their experiences, views and concerns as the sector faces both new and ongoing challenges.
The Tracker is run by an independent research company called DJS Research on behalf of SCVO, the Scottish Government, the William Grant Foundation and the National Lottery Community Fund.
Those involved in the running of a third sector organisation operating in Scotland are invited to represent their organisation as a member of the Scottish Third Sector Tracker.
An Executive Summary of the Scottish Third Sector Tracker’s First Phase of research can be found here:
The Connecting Scotland Helpline provides digital support to anyone in Scotland. It is free to call and is open from Monday to Friday, 10am to 4pm.
Anyone can call this freephone number and receive support and advice on topics including:
Using devices like smartphones, tablets, laptops or desktop computers
Connecting to the internet
Navigating the web and social media
Completing everyday tasks online
Connecting with the community, family and friends
Managing finances, paying bills and saving money online
Reducing costs (energy, data plans, shopping, etc.)
Finding opportunities for education and employment
Feeling less isolated and having someone to talk to
The helpline is run by charity People Know How, in partnership with the Scottish Government and the Scottish Council for Voluntary Organisations (SCVO). It forms part of the charity’s Reconnect service, which aims to improve digital inclusion across Scotland.
Part of the wider Connecting Scotland scheme set up during the pandemic, the helpline was set up to support those who received devices as part of that programme. It has since been expanded to help anyone in Scotland who needs digital support, regardless of whether they interacted with the original scheme.
“Thank goodness for Connecting Scotland…We felt we were living in the 19th century; now we’ve joined the 21st century, and we’re enjoying every moment of it!” – Greta & Heidi, helpline callers
The charity has supported thousands of people through the helpline.
Sisters Greta and Heidi received iPads that made their life in a rural part of Scotland much easier, with continual support from the helpline that allowed them do things like order food and essentials to their home instead of making the 60-mile round trip to the nearest shop.
David was able to solve connectivity issues after recently moving to Scotland, allowing him to apply for local college courses and build his skills as he supports his family.
Mary still calls in regularly for advice after the team supported her to regain access to her iPad, which is vital in her life to access medicine and food and to communicate with friends and family.
Rachel eased her worries online and improved her knowledge of online safety, learning about spotting spam emails and identifying trustworthy websites.
The helpline is available to anyone who needs it, whether you’re an individual in need of advice, or a support worker or community organisation looking for a helpful resource to refer those you support to.
Call the helpline today for free digital support and advice: 0800 0 590 690
The Scottish Council for Voluntary Organisations (SCVO) is calling for voluntary organisations and individuals across the country to apply for its annual Scottish Charity Awards.
Now in its 18th year, the Scottish Charity Awards are designed to celebrate the best of the voluntary sector, and to highlight the incredible organisations, inspiring people and innovative projects that have made an immeasurable difference to the communities they support over the past year.
Applications are now being accepted for 2024, with SCVO placing particular importance on hearing from voluntary organisations and individuals that reflect the diversity of this essential sector.
All registered charities, social enterprises, campaigning groups, community interest companies and people who work/volunteer in these spaces are eligible to enter.
This year SCVO has also tried to make the awards simpler and more accessible to as many people and organisations as possible, with a number of improvements to the application and judging process – including the introduction of a new Small Charity of the Year award in recognition of charities with turnover of £500k and below.
The award categories are Charity of the Year, Small Charity of the Year Trustee of the Year, Volunteer of the Year, Employee of the Year, Partnership of the Year, Campaign of the Year, Community Impact, Climate Impact, and Digital Difference; with the winners to be decided by a panel of judges.
All finalists will also be entered into the running for the People’s Choice Award, giving members of the public a chance to vote for their favourite finalist to win.
SCVO received an overwhelming response last year with hundreds of applications and over 14,000 votes cast for the People’s Choice Award, and hopes that even more organisations will be inspired to apply this year.
This year, SCVO will be bringing its celebratory awards ceremony, hosted by Sally Magnusson, to Glasgow on 20 June.
Anna Fowlie, Chief Executive of the Scottish Council for Voluntary Organisations (SCVO), said: “In these stormy times, it’s great to have something to look forward to. The Scottish Charity Awards always light up our calendars and remind us of the invaluable, inspiring work voluntary organisations across the country are doing every day.
“Being shortlisted for an award spotlights your story and celebrates the massive contribution of people and organisations to our communities and our country.
“Every year I’m blown away by the diversity, dedication, expertise and passion that runs through every part of our sector and I’m sure 2024 will be no different – maybe even better! Prove me right and enter or nominate for this year’s awards.”
Applications are open until 12pm on Friday 15 March 2023 and can be completed on the SCVO website: scvo.scot/scottish-charity-awards/apply.
Nicole Scottsville, co-founder and chair of 2023 Charity of the Year Diversified, added: “Since winning Charity of the Year at the Scottish Charity Awards 2023, our organisation has gone from strength to strength and it has brought national recognition to the work we do.
“As a small and young charity, we never expected to win Charity of the Year, and were absolutely thrilled that we did! Winning such a prestigious award has helped us demonstrate to our wider community that we are passionate about what we do and that we provide exceptional services to our autistic youth community.”
Legal charity highlighted as part of national campaign
Glasgow-based legal charity JustRight Scotland is the latest star in a nationwide campaign highlighting the work of Scotland’s voluntary sector.
#EssentialSector, a campaign developed by and about the voluntary sector, has been launched to great acclaim, with voices from across Scotland praising the opportunities provided for grassroots groups that are often overlooked.
Work towards #EssentialSector began earlier this year, with ten organisations selected as part of a new programme to highlight how voluntary organisations change people’s lives for the better, bring communities together, improve policy and contribute to the economy.
The films feature real people, telling their stories in their own words and paint an inspiring and raw picture of the value, diversity, and impact of the voluntary sector. They show the challenges the sector faces, as well as its many achievements.
Now, the general public have their chance to view the series of short films which capture the everyday work done by the dedicated individuals behind charities and voluntary groups in every corner of Scotland.
The #EssentialSector campaign partners are led by the Scottish Council for Voluntary Organisations (SCVO), Scotland’s national membership body for the voluntary sector, and include: ACOSVO, the Chartered Institute of Fundraising, Evaluation Support Scotland, Social Enterprise Scotland, the TSI Scotland Network, and Volunteer Scotland.
The films were premiered at SCVO’s Gathering 2023, the largest voluntary sector event in the UK, in Edinburgh last month and are now being showcased on a weekly basis.
The project saw the ten groups given support and access to everyday equipment to make their own films, with training provided by ethical media production group media co-op. Charities were given the skills to produce their own video content, which was edited by SCVO’s video content creator, James Ewen.
Anna Fowlie, Chief Executive of SCVO, said: “The #EssentialSector films tell the stories of just 10 of Scotland’s 46,500 voluntary organisations. The films are a lovely celebration of the work they do.
“We want to highlight as many stories as we can on a national stage to bring to life the vital role of voluntary organisations in communities across Scotland.”
JustRight Scotland is a Scottish Charitable Incorporated Organisation (SCIO) providing legal services to defend and extend people’s rights.
JustRight Scotland is a charity founded by human rights lawyers. They use the law to defend and extend people’s rights by providing direct legal advice to people who would otherwise struggle to access justice.
They work in collaboration with others to achieve social justice, with the aim of reducing discrimination and disadvantage. With their partners they have established four centres of legal excellence and a legal policy, research and training hub.
All of JustRight Scotland’s legal centres have been recognised as making a significant contribution to defending people’s rights across Scotland.
The charity has seen huge growth during their first five years, and has moved swiftly to meet people’s needs and to seize opportunities. Over the coming years, they plan to continue to make sure they are resilient and sufficiently agile to be able to thrive.
Alongside their core legal work with the people we serve, they will continue to develop their capability to influence policy, to communicate effectively, and to support others to learn and build on the approaches they have pioneered.
Emma Hutton, CEO at JustRight Scotland, said: “Taking part in the #EssentialSector campaign allowed us to share our stories and demonstrate the direct impact of our work nationwide, raising awareness of our work with wider networks.
“We emphasised the crucial role played by our dedicated team in achieving our mission of defending and extending people’s rights. Only through their strong commitment and passion, can we make a significant impact in the lives of people and communities throughout Scotland.”
A third of organisations reported recruitment as one of their top challenges
Third Sector organisations in Scotland are increasingly facing shortages of staff and volunteers, a new report has warned.
The Scottish Third Sector Tracker has found that issues relating to staffing and volunteers are one of the top challenges for a third of voluntary sector organisations.
Data from the tracker observes the emergence of the sector from the Covid-19 pandemic through 2021, followed by the development of the cost-of-living crisis and associated organisational concerns during 2022 and 2023.
In August 2021, 35% of organisations reported a significant concern about staff and volunteer numbers. Just two years on, that figure has now risen to 65%, with only finances currently proving a bigger challenge for the sector.
While staff and volunteer support remain a growing concern, third sector groups report an ongoing increase in demand for their core services and activities over the six waves of the tracker. In Wave 1 (Aug 2021), 56% of organisations reported an increased demand, rising to 63% by Wave 6 (Apr 2023).
These factors, on top of growing financial pressures due to the rising costs crisis and public sector funding cuts, are leading to a perfect storm for charities and voluntary groups, with strain put on already stretched teams.
Anna Fowlie, Chief Executive of the Scottish Council for Voluntary Organisations (SCVO), said: “The Scottish voluntary sector is a significant employer, providing jobs for 5% of the Scottish workforce.
“At a time where many organisations are facing recruitment challenges, the funding environment means that many voluntary organisations are struggling to keep pace with salary increases needed to attract and retain staff.
“Existing staff and volunteers have been working flat out since Covid, helping organisations and communities to weather the cost-of-living crisis. We can no longer afford to rely on their goodwill to go the extra mile. The invaluable services and supports provided by Scotland’s voluntary sector need sustainable investment to ensure their survival.”
Volunteer Scotland are also concerned by the staff and volunteer crisis facing the sector, highlighted by the Third Sector Tracker. The recent release of the 2022 Scottish Household survey results reinforces the volunteer crisis, with formal volunteer participation rates falling by 4 percentage points since 2019 to 22% – this equates to less than one million Scottish adults volunteering.
In light of the current crisis, the actions that can be undertaken by volunteer involving organisations include ensuring that volunteer expense policies are clear and considering how roles can be made more flexible to fit with the decreased time volunteers have available.
Alan Stevenson, CEO of Volunteer Scotland said: “The many impacts of the cost-of-living crisis on volunteering has meant that we can no longer take for granted the contribution of our volunteers.
“While recruitment and retention issues are being felt more acutely by some, the first step for all must be the focus on good volunteering practice, appropriately supported.”
The Scottish Third Sector Tracker is a growing research community made up of representatives from third sector organisations based across the whole of Scotland, who are willing to share their experiences, views and concerns as the sector faces both new and ongoing challenges.
The Tracker is run by an independent research company called DJS Research on behalf of SCVO, the Scottish Government, the William Grant Foundation and the National Lottery Community Fund.
Those involved in the running of a third sector organisation operating in Scotland are invited to represent their organisation as a member of the Scottish Third Sector Tracker.
An Executive Summary of the Scottish Third Sector Tracker’s First Phase of research can be found here:
Research also found a third of organisations were dipping into reserves
An overwhelming majority of charities in Scotland have reported financial challenges as their biggest source of concern. The Scottish Third Sector Tracker has found 7 in 10 charities cite financial challenges as their biggest challenge, up significantly in just two years.
Data from the tracker observes the emergence of the sector from the Covid-19 pandemic through 2021, followed by the development of the cost-of-living crisis and associated organisational concerns during 2022 and 2023.
Throughout the waves of research, the frequency with which organisations have reported financial challenges has hugely increased, and in the most recent data collection (April 2023), these were the most frequently reported challenges (71%), compared to just less than half of respondents (47%) just two years ago.
It is concerning that a third of organisations reported having made use of their financial reserves in the 3 months leading into April 2023, an increase compared to the same period in 2022.
Almost half (44%) of the organisations using their financial reserves believed that this situation is unsustainable.
Anna Fowlie, Chief Executive of the Scottish Council for Voluntary Organisations (SCVO), said: “Charities, community groups and social enterprises can be financially fragile at the best of times, and the Tracker research clearly demonstrates that we are currently far from the best of times.
“We are seeing that voluntary organisations are experiencing more financial challenges now than they did during the pandemic due to rising costs, particularly of energy and wages.
“Voluntary organisations make an invaluable contribution to Scotland’s social and economic fabric and the people, communities and causes they support are experiencing more pressures than ever before. Public giving of money and time have been hit by the cost-of-living crisis and we are seeing many organisations having to dip into their reserves just to keep going.
“Reserves are there as a safety net and are not meant to prop up business as usual. It’s akin to households having to buy their groceries on a credit card, simply storing up more problems for the future and threatening their medium to long-term viability.
“Everyone can play a part in supporting the sector, whether it is government and councils ensuring there is fair and sustainable funding in place, philanthropic funders investing their money wisely and the public giving when they can.
“A good start would be Scottish Government passing on the money that the UK Government allocated for energy bills relief to see charities through the winter months.”
The Scottish Third Sector Tracker is a growing research community made up of representatives from third sector organisations based across the whole of Scotland, who are willing to share their experiences, views and concerns as the sector faces both new and ongoing challenges.
The Tracker is run by an independent research company called DJS Research on behalf of SCVO, the Scottish Government, the William Grant Foundation and the National Lottery Community Fund.
Those involved in the running of a third sector organisation operating in Scotland are invited to represent their organisation as a member of the Scottish Third Sector Tracker.
An Executive Summary of the Scottish Third Sector Tracker’s First Phase of research can be found here:
Plan for stronger economy will reward hard work, putting £450 back into the pocket of the average worker earning £35,400 a year thanks to National Insurance tax cut from 12% to 10% for 27 million working people from January.
Tax to be cut and simplified for 2 million of the self-employed, abolishing an entire class of NICs and cutting the rate of the NICs top rate from 9% to 8% – with an average total saving of around £350 for someone earning £28,000 a year.
Biggest permanent tax cut in modern British history for businesses will help them invest for less and boost investment by £20 billion per year over the next decade.
Triple lock maintained for pensioners, benefits to rise in line with inflation and Local Housing Allowance increased to continue supporting families with the cost-of-living. Government is making work pay.
National Living Wage rise represents boost of £1,800 to the average annual earnings of a full-time worker, and the Back to Work Plan will help over a million people start, stay, and succeed in work while ensuring tougher consequences for those choosing not to.
Great British pubs, breweries and distillers backed by freezing alcohol duty for six months to August 2024.
Public finances in a better position than in March thanks to government action, with borrowing and debt as a share of the economy down on average across the next five years.
Autumn Statement gets the economy growing, debt falling and helps return inflation to its 2% target – long-term decisions to build a brighter future.
Tax cuts for working people and British business headlined Chancellor Jeremy Hunt’s ‘Autumn Statement for Growth’ yesterday.
Aimed at building a stronger and more resilient economy, the Chancellor set out a plan to unlock growth and productivity by boosting business investment by £20 billion a year, getting more people into work, and cutting tax for 29 million workers – the biggest tax cut on work since the 1980s.
With higher revenues resulting from stronger growth than previously projected and the pledge to halve inflation having been met, the government has stabilised the economy through taking sound decisions. As set out by the Prime Minister this week, the stronger outlook means taxes can now be cut in a serious, responsible way.
To that end, Mr Hunt announced that a 2 percentage point cut to Employee National Insurance from 12% to 10% will come into effect from January 2024.
For the average worker earning £35,400 a year, that amounts to an over £450 annual tax cut – almost immediately improving living standards for millions of people and rewarding hard-work as the government builds an economy for the future.
Taxes for the self-employed will also be cut and reformed. From April 2024, Class 4 NICs for the self-employed will be reduced from 9% to 8% and no self-employed person will have to pay Class 2 NICs, saving the average self-employed person on £28,200 a year £350 in 2024/25.
Taken together, this is a tax cut of over £9 billion per year and represents the largest ever cut to employee and self-employed National Insurance. The independent Office for Budget Responsibility (OBR) says these reductions will lead to an additional 28,000 people entering work.
Cutting National Insurance will not lead to any change in NHS funding or pension payments. Services will remain unchanged and continue to be funded as they are now.
Businesses will also benefit from the biggest business tax cut in modern British history. As signalled at Spring Budget, the Chancellor announced permanent Full Expensing: Invest for Less for those investing in IT equipment, plant, and machinery.
Full Expensing: Invest for Less is an effective permanent tax cut of £11 billion a year, boosting business investment by £14 billion across the forecast period and helping to grow the economy.
With the tax cut now permanent, the UK will continue to have both the lowest headline corporation tax rate in the G7 and the most generous capital allowances in the OECD group of major advanced economies, such as the United States, Japan, South Korea and Germany.
Since the introduction of the super deduction – the predecessor to full expensing – in 2021, investment in the UK has grown the fastest in the G7.
To further ensure that work pays, Mr Hunt confirmed that the National Living Wage will increase by nearly 10% to £11.44 an hour from April 2024, the largest ever cash increase.
The Chancellor also reinforced the new £2.5 billion Back to Work Plan for those with long-term health conditions, disabilities and difficulties finding employment, which includes tough new sanctions for those who can work but choose not to.
The Chancellor also announced that the government will honour its commitment to the triple lock in full, with the state pension to increase by 8.5% in April in what is the second biggest ever cash increase. Universal Credit and other working age benefits will also be boosted by 6.7% in April, in line with September’s inflation figure as is convention.
Further action to help families includes increasing the Local Housing Allowance rate to cover the lowest 30% of rents from April – benefiting 1.6 million households with an average gain of £800 in 2024/25 – and an alcohol duty freeze to 1st August 2024, following common-sense changes of the duty system made possible by Brexit.
Measures today take the government’s total support for the cost-of-living between 2022-25 beyond the £100 billion mark, to an average of £3,700 per household.
Accompanying forecasts by the OBR confirm that today’s measures will make the economy permanently bigger, with growth every year of the forecast period. Borrowing and debt as a share of the economy are lower than in Spring this year and next year, with borrowing also lower on average across the forecast by comparison. They also confirm that inflation is expected to return to target in line with the Prime Minister’s economic priorities.
Tax
With inflation halved and debt forecast to fall, Mr Hunt delivered on the government’s commitment to cut taxes – rewarding and incentivising work as part of its long-term plan to grow the economy.
The main rate of Employee National Insurance will be cut by 2 percentage points from 12% to 10%, coming into effect from January 2024 – delivering the benefit of a tax cut quickly for 27 million workers.
The combined rate of income tax and National Insurance for employees paying the basic rate of tax will therefore fall from 32% to 30% – the lowest combined basic rate since the 1980s.
The rate of Class 4 NICs on all earnings between £12,570 and £50,270 will be cut by 1p, from 9% to 8% from April 2024.
The weekly Class 2 NICs – the flat rate compulsory charge which is currently £3.45 paid by self-employed people earning more than £12,570 – will effectively be abolished, with no-one required to pay from April 2024. Access to contributory benefits will be maintained and those currently paying voluntarily will still be able to do so at the same rate. The cuts to Class 4 and Class 2 together amount to a tax cut of £350 a year for the average self-employed person on £28,200, with around 2 million individuals to benefit.
Business
Measures to back British businesses big and small will remove barriers to investment and help to bridge the productivity gap between the UK and its G7 peers – unlocking £20 billion extra business investment per year over the next decade.
Permanent Full Expensing will create the certainty that businesses need to confidently invest for less. A company can now permanently claim 100% capital allowances on qualifying main rate plant and machinery investments, meaning that for every pound invested its taxes are cut by up to 25p.
A business rates support package worth £4.3 billion over the next 5 years will help high streets and protect those small businesses that are the backbones of communities. This includes a rollover of 75% Retail, Hospitality and Leisure relief for 230,000 properties and a freeze to the small business multiplier, which will protect around 90% of ratepayers for a fourth consecutive year.
Pension reforms, including through establishing a new Growth Fund within the British Business Bank, will help unlock an extra £75 billion of financing for high-growth companies by 2030 while providing an extra £1,000 a year in retirement for the average earner saving from 18.
SMEs will be supported with tougher regulation on late payers to improve prompt payments, the expansion of Made Smarter in Great Britain and continued funding for Help to Grow.
The existing R&D Expenditure Credit and Small and Medium Enterprise Scheme will be merged from April 2024, simplifying the system and boosting innovation in the UK.
The rate at which loss-making companies are taxed within the merged scheme will be reduced from 25% to 19%, and the threshold for additional support for R&D intensive loss-making SMEs will be lowered to 30%, benefiting a further 5,000 SMEs.
The Climate Change Agreement Scheme will be extended, giving energy intensive businesses like steel, ceramics and breweries around £300 million of tax relief every year until 2033 to encourage investment in energy efficiency and support the Net Zero transition.
Work and welfare reform
Mr Hunt set out steps to reward work, help make work pay, and reform welfare in recognition of the need to expand the workforce and get those out of work back into work to deliver growth.
The OBR expect that the measures announced at Autumn Statement will support a further 78,000 people into work by 2028-29, on top of the 110,000 resulting from action taken at Spring Budget.
From 1 April 2024, the National Living Wage will increase by 9.8% to £11.44 an hour for eligible workers. For the first time this will include 21- and 22-year-olds. This represents an increase of over £1,800 to the annual earnings of a full-time worker on the NLW and is expected to benefit over 2.7 million low paid workers.
The government will also substantially increase the National Minimum Wage rates for young people and apprentices: for people aged 18-20 by 14.8% to £8.60 an hour, for 16-17 year olds and apprentices by 21.2% to £6.40 an hour.
The government is reforming the Work Capability Assessment to ensure that people who can work are supported to do so via the welfare system. Changes to the activities and descriptors will better reflect the greater flexibility and reasonable adjustments now available in the world of work, preventing some individuals from being deemed not fit for work and ensuring they will be better supported into employment.
The boosting of four key programmes – NHS Talking Therapies, Individual Placement and Support, Restart and Universal Support – will benefit up to 1.1 million people over the next five years.
The government is exploring reforms of the fit note process to provide individuals whose health affects their ability to work with easy and rapid access to specialised work and health support.
Mandatory work placements will boost skills and employability for those who have not found a job after 18 months of intensive support. Those who choose not to engage with the work search process for six months will have their claims closed and benefits stopped.
Infrastructure and levelling up
The Chancellor unveiled a raft of supply-side measures and funding packages to benefit businesses and local communities.
£4.5 billion of funding for British manufacturers in the high-growth industries of the future, including £960 million earmarked for the Green Industries Growth Accelerator to support clean energy.
The government has published its full response to the Winser review and Connections Action Plan, which will cut grid access times for larger projects by half, halve the time to build major grid upgrades and offer up to £10,000 off electricity bills over 10 years for those living closest to new transmission infrastructure.
Three advanced manufacturing Investment Zones will be established in Greater Manchester, East Midlands, and West Midlands – together generating £3.4 billion of private investment and creating 65,000 high-quality jobs within the next decade.
The Investment Zones programme and freeport tax reliefs will be extended from 5 years to 10 years, and a new £150 million Investment Opportunity Fund will support Investment Zones and Freeports to secure specific business investment opportunities.
Four new devolution deals across England have been agreed. Mayoral deals with Greater Lincolnshire and Hull and East Yorkshire, and non-mayoral deals with Lancashire and Cornwall, will boost investment right across the country and deliver on the Prime Minister’s commitment to levelling-up.
£500 million of funding over the next two years will help establish two more Compute innovation centres, supporting the development of artificial intelligence as a growth opportunity for Britain.
The life sciences will also be supported as one of the Chancellor’s key-growth sectors, with £20 million to speed up the development of new dementia treatments coming as part of the government’s full response to the O’Shaughnessy Review of commercial clinical trials in the UK.
To prioritise those who want to invest in the UK’s future, the government has accepted in principle the headline recommendations of Lord Harrington’s review into increasing foreign direct investment. This includes additional resource for the Office for Investment, allowing it to deepen its world-class concierge offer to strategically important investors.
Scottish Secretary Alister Jack said: ““This is an Autumn Statement to support hard working families and grow our country’s economy. It is great news for Scotland.
“The National Insurance cut and increase in the National Living Wage will mean a pay boost for millions of workers right across Scotland. We have honoured the pensions triple lock, meaning pensioners will get a £900 a year increase.
“Vital new support for Scottish businesses will ensure we get growth back into our economy.
“The Chancellor confirmed more than £200 million of new, direct UK Government investment in exciting projects across Scotland, which will create jobs, boost growth and transform communities.
“Plus, there will be an additional £545 million in Barnett Consequentials for the Scottish Government, on top of their record block grant.
“There is a lot to cheer about, not least the duty freeze on spirits to support Scotland’s biggest export industry.”
Rain Newton-Smith, Chief Executive, Confederation of British Industry said:“With tough decisions to be made, the Chancellor was right to prioritise ‘game-changing’ interventions that will fire the economy.
“While the move on National Insurance will give hard-pressed households some much needed breathing room, making full capital expensing a permanent feature of the tax system can be transformational for accelerating growth and improving living standards in the long-term.
“Helping firms to unleash pent-up investment is critical to getting momentum into the economy. Making full expensing permanent will give firms the stability they need to press on with decisions on investment whilst keeping the UK at the top table internationally for investment incentives.
“Moves to speed up planning and grid connectivity should also bolster business confidence to invest in high growth areas like green technologies, renewable energy and advanced manufacturing.”
Eve Williams, General Manager, eBay UK said: “The hundreds of thousands of UK small businesses who use eBay and other online marketplaces will warmly welcome the Chancellor’s cuts in national insurance, more support for the self-employed, as well as the decision to make permanent full expensing.
“There are enormous productivity gains to be had from encouraging the long tail of Britain’s SMEs to invest in existing digital technologies. And given that around half of our online businesses also trade offline, they will benefit hugely from the measures on business rates for retail as well as freezing the business rate multiplier.”
Kate Nicholls, Chief Executive, UKHospitality said:“The Chancellor has brought forward a significant package of business rates measures that will help hospitality businesses across the country. UKHospitality led the calls for Government to extend relief and take action on the multiplier and I’m delighted the Chancellor has acted on our asks.
“Reforms to the planning system to drive quicker approvals will remove a significant barrier to business investment. This type of reform to reward the best performing local planning authorities is exactly the type of change we have been suggesting to drive growth in hospitality.
“We’re also pleased that the Chancellor has acted on our proposal and frozen alcohol duty until August next year to support our supply chain.
“The reduction in National Insurance for employees will put more money in people’s pockets and provide a boost to hospitality in the New Year, often a challenging time for the sector.”
Responding to the freeze in alcohol duty until 1 August 2024
Nuno Teles, Managing Director, Diageo GB said:“Today we raise a glass to the Chancellor and the Prime Minister, who have listened to the industry’s plea for support and decided to back our homegrown sector, that employs so many people across the UK.
“Drinkers and pub-goers across the country now have even more reason to celebrate this festive season. Cheers, Chancellor!”
Responding to the announcement of £7million of funding to tackle antisemitism
Mark Gardiner, Chief Executive, Community Security Trust (CST) said:“The commitment to fund education to tackle antisemitism in universities and schools, alongside the promise to continue the increase in funding for security guarding in the Jewish community, is not just a welcome, concrete contribution to the fight against antisemitism: it sends an important and powerful message to the Jewish community that we have the sympathy and support of government in this struggle.
“We are grateful for the Chancellor for this commitment and we will work with government and communal partners to ensure it is put to effective use.”
Responding to the protection of the Triple lock
Caroline Abrahams, Influencing Director, Age UK said:“We’re pleased and relieved the Government kept its promise to older people to honour the Triple Lock.
“For the 4.2 million older people who recently cut back on food and groceries to make ends meet, having a State Pension that delivers the basics in life is essential.
“Today’s decision also crucially makes is more likely that older people will keep their homes adequately warm this winter, with less fear of facing an energy bill they simply cannot afford to pay come the spring.”
Responding to the support for Veterans
Anna Wright, Chief Executive, the Armed Forces Covenant Fund Trust said: “We are delighted by Chancellor of the Exchequer’s announcement of an additional £10 million to support the Veterans’ Places, People and Pathways programme.
“These projects have delivered significant work already to support our veterans, growing collaborative cross sector working and giving a more seamless interface between statutory and charity or not for profit support.
“They have great potential to help even more veterans, and further develop better, more inclusive local support and better coordination and communication that sustains into the future”
Autumn Statement offers ‘worst case scenario’ for Scotland
Deputy First Minister responds to announcements from Chancellor
The Autumn Statement delivered the ‘worst case scenario’ for Scotland’s finances and failed to live up to the challenges posed by the cost of living and climate crises, Deputy First Minister Shona Robison has said.
The statement failed to deliver the investment needed in services and infrastructure, Ms Robison said. While welcoming the increase in the statutory minimum wage, she said this did not go far enough and fell well short of the Real Living Wage of £12 an hour for 2024-25.
The Deputy First Minister said: ““Today’s Autumn Statement from the UK Government has delivered what is the worst case scenario for Scotland’s finances. Scotland needed a fair deal on investment for infrastructure, public services and pay deals – the UK Government has let Scotland down on every count.
“We needed investment in the services that people rely on and in infrastructure vital to the economy, but the Chancellor’s actions failed to live up to the challenges we are facing as a nation, while not doing enough to help those on the lowest incomes.
“The cut to National Insurance shows the UK Government has the wrong priorities at the wrong time, depriving public services of vital funding. Shockingly, the health funding announced today represents an increase of less than 0.06% to Scotland’s health budget in 2023-24 of £19.138 billion.
“The increases to the state pension and Local Housing Allowance are welcome, but the increase to the minimum wage falls well short of the Real Living Wage. Some of the measures for businesses are also positive, but they come in the face of UK growth having been projected downwards as a result of Brexit and the UK Government’s mismanagement of the economy.
“As global temperatures push ever higher, the Autumn Statement was a chance to fund efforts to cut the UK’s carbon emissions – but it did not. It’s not enough to say they support measures to encourage more renewable energy developments and expand the UK’s electricity grid need. It needs to be matched with funding to actually deliver and help us meet our net zero targets.
“We will now assess the full implications of today’s statement as we develop a Budget that meets the needs of the people of Scotland, in line with our missions of equality, community and opportunity.”
The Scottish Budget will be announced on 19 December.
TUC: Hunt’s Autumn Statement “is a plan for levelling the country down”
Chancellor has confirmed “another round of punishing spending cuts to public services and investment”
Cutting NI won’t make up for “13 continued “years of economic failure on living standards and growth”
Growth forecasts revised down with real wages set to remain below 2008 level until 2028
“The Conservatives have broken Britain. They cannot be trusted to fix it,” says TUC
Commenting on the Autumn Statement, TUC General Secretary Paul Nowak said: “This is not a plan for rebuilding Britain. It’s a plan for levelling the country down.
“At a time when our schools and hospitals are crumbling – the Chancellor has confirmed another round of punishing and undeliverable spending cuts to public services and investment.
“Be in no doubt – if the Tories win the next election, even more austerity is on the way.
“Cutting national insurance won’t make up for 13 continued years of economic failure on wages and living standards.
“Jeremy Hunt has nothing to smile about when working people are on course for a 20-year real wage freeze.
“The Conservatives have broken Britain. They cannot be trusted to fix it.”
Responding to the 2023/24 Autumn Statement, SCVO Chief Executive Anna Fowlie, said: “I share the disappointment of other voluntary sector bodies that this week’s budget Autumn Statement did not recognise the essential services and support of voluntary organisations both in Scotland and across the UK.
“Our sector is a major employer, a partner in delivering public services, and a vital contributor to society and the economy.
“The last few years have been a period of significant change and upheaval for Scottish voluntary organisations, their staff and volunteers, and the people and communities they work with. Rising inflation and the resulting cost-of-living crisis and running costs crisis has strained sector finances and increased demand for the support and services many organisations provide, as demonstrated in our Third Sector Tracker.
“This crisis is not over. We welcome the increase in the National Living Wage which will offer some support to the lowest paid, but to meet the rising cost-of-living this needed to go further, lifting both the National Living Wage and the National Minimum Wage to at least Real Living Wage.
“Our sector is central to building a stronger economy and offers specialist support to those furthest from the labour market and should be included in these plans.
“To protect our sector’s essential contributions for the future, underfunding and a lack of inflation-based uplifts in grants and contracts needed to be addressed in this statement. As people and communities struggle through the largest reduction in household incomes since records began in the 1950s, our support will be needed more than ever.”
The Scottish Council for Voluntary Organisations (SCVO) has unveiled the 20 organisations who will be a part of a groundbreaking HR for Creatives project.
SCVO has partnered with Creative Scotland and Project Manager Kathryn Willens on the action research project to explore the support needed for micro and small creative organisations.
The project incorporates research into participant organisations’ learning journeys in order to share findings so that the wider arts, screen and creative industries can learn from this project.
This will allow the project partners to learn from organisations that access support and to identify where there are key and shared opportunities, challenges, strengths and weaknesses for the sector.
SCVO’s HR Service will now work with them to support them on their HR journey, including an audit of their HR policies and procedures, one-to-one advice and guidance, as well as access to webinars and a peer network.
The partners hope this will Improve people management for arts, screen and creative industries organisations, starting with legal compliance and moving beyond this to help organisations create a space and place to work where their people – staff and freelance practitioners – thrive and where fair work drives success, wellbeing and prosperity.
SCVO, Scotland’s national membership body for the voluntary sector, received over 80 applications from micro to small sized arts, screen and creative industries organisations from across Scotland. All applications were of a high standard, with only 20 places available.
The organisations represent a wide range of artistic practice including animation, digital art, theatre, film, poetry, music and dance. (1)
The number of applications highlights the demand for HR support in the sector especially from micro to small employers, with SCVO planning to offer some support to the organisations that didn’t make it to the shortlist through access to webinars and resources.
SCVO is delighted to be working with Creative Scotland, Kathryn, and research partner Tialt on the HR for Creatives action learning programme, funded by The National Lottery through Creative Scotland.
The programme will kick off in September 2023 and continue for 12 months.
Caroline Christie, SCVO’s Head of HR, said: “We are thrilled with the response to the HR for Creatives programme. This level of interest highlights arts, screen and creative industries organisations commitment to HR and to Fair Work as well as a need for this kind of support.
“HR for Creatives aims to offer support and learning to improve people management for arts, screen and creative industries organisations, support that will enable organisations to create work cultures where their staff and freelancers can thrive and where fair work drives success, wellbeing and prosperity.
“SCVO’s HR Service and the HR for Creatives project team are very excited to start working with the 20 shortlisted organisations and with the research partners, Tialt.”
Ashley Smith-Hammond, Creative Industries Officer at Creative Scotland, said: “As Creative Scotland develops its work in response to the Fair Work agenda, we’re committed to empowering organisations in the arts, screen and creative industries to best support their workforce.
“We’re pleased to partner with SCVO on this vital programme, which responds to challenges that small and micro creative businesses have in accessing appropriate, specialist support around people management.
“In this challenging economic context, it’s an investment in more competent, confident creative businesses and better experience for those in the creative workforce.”
Reducing poverty, delivering growth, tackling climate change and providing high-quality public services will be the Scottish Government’s top priorities for the year ahead, First Minister Humza Yousaf has pledged.
Outlining his first Programme for Government, the First Minister described it as “unashamedly anti-poverty and pro-growth”. The package of measures aims to help build a more equal society through concerted efforts to eradicate poverty, tackle the cost of living crisis, and create opportunities for businesses and individuals.
The Programme supports the Scottish Government’s wider work in building a fair, green and growing economy, and strengthening public services.
Key commitments include:
expanding access to funded childcare
paying social care workers in a direct care role and frontline staff providing funded early learning and childcare in the private, voluntary and independent (PVI) sector, at least £12 an hour from April
speeding up renewable energy projects with a new deal for the onshore wind industry
delivering a new £15 million support package to unleash entrepreneurial talent
expanding free school meals in primary schools
The First Minister said: ““The Scottish Government will always be on the side of the people we serve. Scotland is – certainly should be – a land of opportunity, but I know it doesn’t always feel like that to people bearing the brunt of the UK Government cost-of-living crisis, to families living in the poverty, to struggling businesses, to those who still face consequences of discrimination and inequality. I get that.
“This Programme is an opportunity to be explicit about the driving mission of this government. So let me make it abundantly clear, we are a government who will maximise every lever at our disposal to tackle the scourge of poverty in our country.
“But let me be equally clear, we also need to support economic growth. Not for its own sake but so we can tackle poverty and improve our public services. And we will be unapologetic in taking the action necessary to ensure a sustainable future for our children and planet.
“The unfortunate reality is that the Scottish Government is currently operating with one hand tied behind our back. In the last five years we have spent more than £700 million in countering the impact of UK Government welfare cuts alone.
“That’s why this government will never stop believing that decisions about Scotland should not be made by a government based in Westminster, but by the people of Scotland. In proposing the case for independence we will set out a positive vision for Scotland’s future.
“Scotland’s economy already performs better than most parts of the UK, we have world-class universities and colleges, and significant strengths and potential in many of the key economic sectors of the future. Today’s Programme for Government sets out how we will build on these strengths, to make people’s lives better.
“In the year ahead, we will support more than 300,000 children with more than £1,000 a year through the Scottish Child payment.
We will expand the availability of high quality childcare – providing funding in six early adopter local authority areas to offer increased access to childcare from nine months through to the end of primary school. And we will invest in raising the pay of childcare and social care staff.
“We will also safeguard the rights of tenants, promote payment of the living wage, and provide help for disabled people with complex needs, so that they can live independent lives.
“We will do all of this – first and foremost because it is the right thing to do. And also, as I know well from my own family history, because providing people with support and security helps them to contribute to society and to create opportunities for others. This Programme for Government shows how we will make progress towards a fairer, wealthier and greener Scotland.”
Responding to Tuesday’s Programme for Government, Anna Fowlie, Scottish Council for Voluntary Organisations’ (SCVO) Chief Executive, said: ““The First Minister has today set out a Programme for Government (PfG) which outlines priorities for Scotland which voluntary organisations working in and for communities have welcomed.
“While the PfG recognises the contribution voluntary organisations make across different portfolios, it doesn’t move far or fast enough to address fundamental changes to the operating environment that would recognise the vital role of Scotland’s voluntary sector in delivering on government priorities.
“Today’s PfG restates the Scottish Government’s commitment to Fairer Funding for the voluntary sector, which we welcome. The Scottish Government’s current poor grant-making practice makes the focus on improving the clarity and consistency of existing approaches very important, but we must continue to work together to support the sector to be financially sustainable.
‘To secure the future of the invaluable work our sector delivers, we must not only address disappointing practice, but also implement the longer-term improvements that are so desperately needed.
“We can’t forget that an on-paper commitment to Fairer Funding was made by ministers earlier this year. It is disappointing that progress on this commitment has been so slow. Today’s announcement commits to developing a plan, when urgent action is needed. Our long-term work on Fair Funding provides clear recommendations, based on the sector’s experiences, and a clear blueprint for next steps.
“The PfG’s firm commitment to taking forward a wider review of charity law is also welcome, particularly the commitment to work alongside the sector. It is important that the review is comprehensive and independent and doesn’t shy away from fundamental issues. We need a holistic approach to regulating the voluntary sector that supports the role of modern charities.
“With charities experiencing growing frustration at the funding relationship with Scottish Government and the impact this is having on organisations, staff, volunteers, and the services and support they offer, we had hoped for more action and urgency.
The steps outlined will move us in the right direction, albeit slowly, and we will of course work with the Scottish Government to ensure that they do so in the ways that make the biggest difference to voluntary organisations across Scotland, supporting the invaluable contribution they make to Scotland’s economy and society.”
‘Warm words won’t stop a warming planet’
Climate campaigners have reacted to the latest Scottish Programme for Government saying that “warm words won’t stop a warming planet.”
Friends of the Earth Scotland climate and energy campaigner Caroline Rance commented, “This is an underwhelming programme for more of the same when what is needed a radical change that can speed Scotland away from the damage being wrought by fossil fuel companies.
“The First Minister talked a good game about the importance of climate action and a just transition to net zero, but warm words won’t stop a warming planet.
“The climate emergency demands scaled up action that rapidly shifts us away from fossil fuels, prioritises public transport and puts in a credible plan in place to support workers in the transition from the oil industry to good, green jobs.”
+++ SPEEDING UP OF RENEWABLES PLANNING
Rance commented: “It’s a positive step that the process for onshore renewables will be quickened up but sites must still be environmentally appropriate, and far more work is needed to ensure that local communities can benefit from developments in their area.
+++ SINGLE USE VAPES
Friends of the Earth Scotland circular economy campaigner Kim Pratt: “The evidence that single use vapes are harmful to young people and polluting our environment is overwhelming.
“Businesses have been allowed to put profit before their obligations to provide safe disposal service for these products. The quickest and surest way to end the harm caused by single use vapes is to ban them.
“While consultation on a ban is welcome, we don’t have time to change our economy one product at a time. From wasteful plastic packaging to phones that can’t be fixed, and harmful products like single use vapes, everything we own needs to become more sustainable.
“That’s why the Circular Economy Bill is so important because it must transform our economic systems so that all materials are used sustainably.”
+++ CIRCULAR ECONOMY BILL
Friends of the Earth Scotland circular economy campaigner Kim Pratt commented: “Scotland’s material use is more than twice sustainable levels. The Circular Economy Bill is an important opportunity for Scotland to change the way it uses materials by making businesses design products with less materials, encourage repair and reuse and limit harmful single use products.
“The Circular Economy Bill must be as strong as possible to create the system change that we need, including strong targets for reducing our consumption and consideration of the social impacts of material use.”
Independent Age: ‘A Missed Opportunity’
Following the First Minister’s Programme for Government, Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age said: “Today is a missed opportunity to help the 150,000 older people living in poverty across Scotland.
“Alarmingly, this figure has risen by 25% in the last decade alone, with the ongoing costs crisis squeezing the budgets of those in later life to breaking point. The First Minister should have used today’s Programme for Government to announce a strategy to tackle pensioner poverty and reverse this frightening trend.
“None of us dream of a later life where, because of the cost, we risk falls by not turning on the lights or are forced to skip meals, yet this is now a reality for 1 in 7 older people.
“With over 3 in 5 over 65s on a low income currently cutting their food spending, and almost 3 in 4 reducing their heating, they’re terrified for the winter to come.
“The Scottish Government should reconsider this glaring omission from today’s announcement and urgently announce a plan to reduce financial hardship in later life. They’ve said that tackling poverty is a key priority – older people must not be forgotten in this.”
