EDINBURGH councillors have passed a budget focused on ‘getting the basics right’ and making Edinburgh a ‘cleaner and greener city’. However that budget was not the one put forward by by the ruling Labour administration – council rejected that, and instead eventually backed a Liberal Democrat budget.
This means a Labour-led council will now be promoting and implementing a budget put forward by the Liberal Democrats, the council’s third biggest party.
Trade unions are concerned about elements within the budget passed by the council – particularly over compulsory redundancies and outsourcing- and some senior Labour figures believe Council Leader Cammy Day’s position is now untenable.
There are calls for him to resign: both from the SNP – the biggest group on the council – and, perhaps of more concern, from within the city’s own Labour group.
The humiliating budget defeat shows the fragility of Labour’s leadership position within the council.
With thirteen councillors Labour needs the support of other parties to run the city.
Labour chose to break their ‘Capital Coalition’ agreement with the SNP and instead joined forces with the Conservatives and Liberal Democrats following last May’s local government elections, despite assurances from Scottish Labour leader Anas Sarwar that there would be ‘no deals’.
With 18 councilllors the SNP is the biggest group on the city council by some way. Labour (13) is second followed by the Lib Dems (12), Greens (10) and Tories (9).
Lib Dems, doubtless boosted by their Budget coup, are bullish about their chances of increasing their representation in the City Chambers following a by-election in Corstorphine/Murrayfield on 9 March.
SNP Group leader (and leader of the former ruling ‘Capital Coalition’) said: “What Labour actually voted for: -£600k saving by ending no compulsory redundancy policy NOW. -£500k saving THIS YEAR by privatising waste & cleansing services.
“You can’t trust a word from Labour on this.”
He also tweeted: “Labour “administration” budget defeated – Labour instead backed the LibDem budget in full. If my budget had been voted down as Council Leader I’d have had the integrity to resign.”
While rejecting a series of savings proposals in education and speech and language therapy, councillors agreed to allocate substantial additional money to improve roads, paths and pavements and carry out additional resurfacing works for the long term.
Additional funding will also be made available for the city’s parks and greenspaces, tackling fly tipping, graffiti removal and street sweeping, and additional resource for flood defences and gully cleaning in light of the increasing impacts of climate change.
The Climate and Sustainability Team will also be bolstered, enabling a greater focus on the city’s ambition of becoming net zero by 2030 and the King’s Theatre will also benefit from funding to secure its future, with £3m set aside – a move supported across the council.
Liberal Democrat Group Leader Cllr Kevin Lang said: “I’m delighted that our budget got support from councillors – and that, in the midst of the cost of living crisis, we’ve been able to limit the rise in council tax to 5% for Edinburgh’s residents.
“This is a Council budget that delivers. A budget that stops £5 million of education cuts, injects £11 million extra to tackle our broken roads and pavements, more investment for parks and new money for climate change action.
“Despite continued funding cuts from the Scottish Government, residents still rightly expect high quality local services in return for the increasing amounts of council tax they pay each year, which requires a budget which focuses on essential core services, delivered well.”
Council Leader Cammy Day said: “Despite the unique demands of a Capital city, Edinburgh continues to receive the worst grant funding of any local authority in Scotland. Years of local government cuts have now come to a head, forcing us to find close to £80m of savings this year – on top of the hundreds of millions we’ve made already.
“It’s a position none of us wanted to be in and our residents deserve better. Despite this, we presented a positive, fair and responsible set of proposals, aimed at protecting vital frontline services on which our communities and residents rightly depend.
“So, I was deeply disappointed we didn’t secure the backing from other groups, particularly in the manner in which it came about. But, for all that, I remain absolutely committed to leading this council and to working with all other groups to deliver the best for the people of Edinburgh.”
First Minister Nicola Sturgeon has announced her intention to resign as First Minister
The First Minister told a press conference this morning: “Being First Minister of Scotland is, in my opinion, the best job in the world. It is a privilege beyond measure – one that has sustained and inspired me, in good times and through the toughest hours of my toughest days.
“Since my first moments in the job, I have believed that part of serving well would be to know – almost instinctively – when the time is right to make way for someone else. And when that time comes, to have the courage to do so. In my head and my heart I know that time is now.
“Today, I am announcing my intention to step down as First Minister and leader of my party. I will remain in office until my successor is in place.
“I have been First Minister for over eight years, and I was Deputy First Minister for the best part of eight years before that. These jobs are a privilege but they are also – rightly – hard. And, it is only possible to give absolutely everything to a job of this nature for so long.
“Given the nature and scale of the challenges the country faces, I feel that duty, first and foremost, to our country – to ensure that it does have the energy of leadership it needs, not just today, but through the years that remain of this parliamentary term.
“We are at a critical moment. The blocking of a referendum as the accepted, constitutional route to independence is a democratic outrage. But it puts the onus on us to decide how Scottish democracy will be protected and to ensure that the will of the Scottish people prevails.
“I am firmly of the view that there is now majority support for independence. But that support needs to be solidified – and it needs to grow further if our independent Scotland is to have the best possible foundation.
“To achieve that we need to reach across the divide in Scottish politics, and my judgement now is that this needs a new leader.
“It has always been my belief that no one individual should be dominant in any system for too long. But, as a leader, while it’s easy to hold that view in the abstract, it is harder to live by it.
“I consider this decision to be the right one for me, my party and the country. I hope it can also be the right one for our politics. If all parties were to take this opportunity to try to de-polarise public debate just a bit, to focus more on issues, and to reset the tone and tenor of our discourse.
“There will also be time in the days to come for me to say thank you properly to a very long list of people without whom I wouldn’t have lasted a single day in this job, let alone eight years. For now let me say thank you for all you have done for me, the government and the country.”
ONLY INDEPENDENCE CAN TAKE SCOTLAND AND VOTERS IN EDINBURGH NORTH AND LEITH BACK INTO THE EU, SAYS DEIRDRE BROCK
Local MP Deidre Brock has highlighted the findings of a recent poll that suggest 70% of people in the constituency agreed that Britain was wrong to leave the EU.
More than half strongly agreed, with just 15% disagreeing and 15% not expressing a view. The poll found opposition to Brexit in Edinburgh North & Leith was the seventh highest out of all 650 constituencies in the UK.
It follows the result in 2016 where every constituency and local authority in Scotland voted to remain, with 62% of Scots backing continued membership of the EU, including an estimated 78% of voters in Edinburgh North & Leith. Recent polls have suggested the figure across Scotland is now as high as 72% as the damage of Brexit hits hard.
Commenting, Deidre Brock MP said: “People in Edinburgh North & Leith and Scotland as a whole voted overwhelmingly to remain in the EU in 2016.
“Instead we’ve been dragged out against our will and forced to endure the economic hardship that’s come with it.
“Brexit has been a disaster for my constituency and for Scotland, decimating industries, exacerbating the Tory-made cost of living crisis and allowing Westminster to ride roughshod over Holyrood with blatant powergrabs.
“Three years in and the UK has nothing to show for it but a declining economy and falling reputation abroad.
“People in Edinburgh North & Leith deserve better with a return to the EU that only the full powers of independence can deliver.”
LOCAL MSP & COUNCILLOR TAKE SHOPS TO TASK OVER TROLLEY DUMPING
Edinburgh Central MSP, Angus Robertson, and Inverleith ward councillor, Vicky Nicolson, have demanded Craigleith shops take action to prevent trolley dumping in local green spaces.
Trolleys from a range of shops at Craigleith Retail Park are being lifted and dumped around the local area, chiefly Telford Park and its adjoining cycle paths.
The phenomenon of trolley dumping has increased in line with the retail park’s expansion. Local resident, Audrey Rollason, is so frustrated, she has taken to gathering trolleys in her own garden and liaising with her SNP councillor to have them picked up.
Another resident Andrea, and her 9-year-old son Dylan, have also spent significant amounts of time shifting trolleys from parks and gardens. Andrea branded the trolley dumping practice ‘a disgrace’.
Now, local MSP Angus Robertson and Councillor Vicky Nicolson have stepped in to demand retailers do their bit to end trolley dumping.
Angus Robertson MSP commented: “It is totally unacceptable that Telford residents face the dumping of trolleys in local green spaces and in parks. Not only is it a disrespect to the local area, it is costing local residents and the Council time and money having to collect them.
“While it is not retailers’ fault that trollies are being lifted in the first place, it is time that they step up to help solve this issue. We know there are tried and tested ways of reducing trolly dumping.
“Other retail parks have developed various solutions, such as wheel-locking systems to stop initial removal or, in some cases, retailers actively collect the lifted trolleys from the local area. Councillor Nicolson and I have asked retailers to consider all options to help stop the trolley dumping.”
Councillor Vicky Nicolson said: “Trolly dumping is something I am acutely aware of in my ward. Indeed, on the regular community litter picks I arrange along with Drylaw Telford Community Council in the summer, we often find trolleys strewn about the place.
“It is deeply frustrating for residents, who should not have to waste their time solving this problem themselves. Local MSP Angus Robertson and I have written to the Craigleith retail park to ask them to take action to help prevent and tidy up dumped trolleys. We will continue to liaise with and represent the views of locals to tackle this issue.”
Resident Audrey Rollason said:“Trolley dumping has got worse and worse in the Telford area. I constantly find trolleys around the place, and often new ones appear in a period of hours.It is absolutely demoralising and makes our local area look run down and unwelcoming.
“I want the shops to do their bit to help – it shouldn’t be up to me and other local residents to gather their trolleys for them. I’m grateful to Councillor Nicolson and Angus Roberson MSP for helping us and I hope we can end trolley dumping once and for all.”
Brexit has cost Edinburgh the equivalent of £211.4 million as Scottish exports have plummeted since the UK left the EU to the value of £2.2bn.
Figures from HMRC show that exports have dropped 13% in the past two years from £16.7bn to £14.5bn.
The £2.2bn loss is equivalent to Edinburgh losing £211.4 million.
Commenting, Gordon Macdonald MSP said: “Brexit has been an unmitigated disaster for every area of Scotland, including in Edinburgh. These latest figures show why it is essential for Scotland to become independent and re-join the European Union.
“Only with independence can we get back on the road towards prosperity as both Labour and the Tories offer no way back to the European Union, just continuing decline under Westminster control.
“Industries in Edinburgh and across Scotland are suffering as a result of the disastrous Brexit, the only way Scotland can flourish and realise our full potential is by becoming an independent country in the European Union.”
New funding has been announced to cut carbon emissions in homes and commercial properties, as the Scottish Government continues to focus on delivering its net zero targets and support families with the cost of living.
First Minister Nicola Sturgeon and Zero Carbon Buildings Minister Patrick Harvie announced £16.2 million funding for five zero emission heat networks during a visit to ng Homes in Glasgow.
The announcement coincides with the first anniversary of the Scottish Government and the Scottish Green Party Parliamentary Group signing the Bute House Agreement, a plan to work together to build a green economic recovery from COVID, respond to the climate emergency and create a fairer country.
In its first year the agreement has delivered a range of benefits for households, communities and businesses and seen work begin on a number of longer-term reforms.
Particular progress has been made across a range of areas including:
Doubling the Scottish Child Payment to £20 per week per eligible child from April 2022, with plans to extend eligibility to under 16s and further increasing the payment to £25 per week by the end of 2022.
Bringing ScotRail into public ownership.
Introducing free bus travel for under 22s to cut the cost of living for young people, encourage sustainable travel behaviours early in their lives and improve access to education, leisure, and work.
Investing a record £150 million in active travel in 2022-23, including more than doubling the funding for the National Cycle Network, a new walking fund, and supporting pilots for free bikes for school age children who cannot afford them.
Publishing Scotland’s National Strategy for Economic Transformation setting out how Scotland will transition to a wellbeing economy.
The Agreement set out a strategy for over a million homes to be using zero carbon heating systems by the end of the decade and allocating funds from a total planned investment of £1.8 billion to cut energy bills, improved building energy efficiency and reduce climate emissions.
Scotland’s Heat Network Fund offers long term funding support to deliver more climate-friendly ways of heating Scotland’s homes and buildings. It has enabled the rollout of new zero emission heat networks and communal heating systems, as well as the expansion and decarbonisation of existing heat networks across Scotland.
Moving forward, the Scottish Government is primarily focused on four key tasks: reducing child poverty; addressing the climate crisis; the recovery from COVID of Scotland’s public services including the delivery of the National Strategy for Economic Transformation; and the development of the prospectus for an independent Scotland and an independence referendum in October 2023.
The First Minister said: “The world has changed substantially since the Agreement was reached 12 months ago. The conflict in Ukraine and the rising cost of living crisis have profoundly impacted everyone’s lives.
“However, the stable and collaborative government provided by the Agreement, has helped to deliver immediate action in the face of these challenges, including supporting those displaced from Ukraine and using the powers that Ministers have to address the cost of living crisis.
“Action is needed now to support communities to respond to the cost of living and climate crises, and Scotland’s Heat Network Fund is just one of the many initiatives that the Scottish Government has already undertaken.
“The projects that receive support from the Fund will fully align with the Scottish Government’s aim to eradicate fuel poverty by supplying heat at affordable prices to consumers, which is especially important now when we are seeing record rises in the cost of heating.
“The Bute House Agreement was reached to equip us best to deal with the challenges we face, because we believe that new ideas and ways of working are required to deal with new problems. An unstable world needs more co-operation and more constructive working towards building a consensus, if governments are to be equal to what the people need of them.”
Mr Harvie said: “One year on from the Scottish Greens entering government as part of the Bute House Agreement, I am proud of what this Government is doing to build a fairer, greener Scotland.
“From free bus transport for young people to doubling the Scottish Child Payment, we are committed to accelerating action to tackle the climate and cost of living crises.
“The energy crisis households across Scotland now face is being driven by rocketing prices for gas, which we depend on for heat. We are clear that we need to redouble our efforts to improve the efficiency of our homes, making them more comfortable and cheaper to run, and end our reliance on gas for heat. That’s why we are investing £1.8 billion in our green homes and buildings programme.
“Delivering a just transition to net-zero and seizing the opportunities this presents is a major focus of the Scottish Government, and rapidly increasing Scotland’s renewable energy generating capacity and securing accompanying jobs and investment will be central to our work over the rest of the parliament.
“During the first year of the Agreement firm foundations have been built, demonstrating delivery and progress on shared policy priorities and adopting an approach that is both challenging and constructive.”
Setting out the fresh case for Scotland to become an independent country began today as First Minister Nicola Sturgeon declared ‘It’s time’ and published new analysis showing the prize of independence is a wealthier, fairer Scotland.
The Scottish Government analysis – Independence in the Modern World. Wealthier, Happier, Fairer: Why Not Scotland? – details how neighbouring countries such as Sweden, Ireland, Denmark and Finland use their powers of independence to achieve economic success, business dynamism and fairer societies.
The evidence shows that:
the comparator countries are all wealthier – some a lot wealthier – than the UK
income inequality is lower in all the comparator countries
poverty rates are lower in all the comparator countries
there are fewer children living in poverty in all the comparator countries
the comparator countries all have higher productivity – often significantly higher – than the UK
business investment tends to be higher in all the comparator countries
It is the first in a series of papers called Building a New Scotland that will together form a prospectus for an independent Scotland to enable people to make an informed choice about Scotland’s future before any referendum takes place.
First Minister Nicola Sturgeon said: “Today, Scotland – like countries across the world – faces significant challenges. But we also have huge advantages and immense potential. The refreshed case for independence is about how we equip ourselves to navigate the challenges and fulfil that potential, now and in future.
“In their day to day lives, people across Scotland are suffering the impacts of the soaring cost of living, low growth and increasing inequality, constrained public finances and the many implications of a Brexit we did not vote for. These problems have all been made worse or, most obviously in the case of Brexit, directly caused by the fact we are not independent.
“So at this critical juncture we face a fundamental question. Do we stay tied to a UK economic model that consigns us to relatively poor economic and social outcomes which are likely to get worse, not better, outside the EU? Or do we lift our eyes, with hope and optimism, and take inspiration from comparable countries across Europe?
“Comparable neighbouring countries with different characteristics. Countries that, in many cases, lack the abundance of resources that Scotland is blessed with. But all of them independent and, as we show today, wealthier and fairer than the UK.
“Today’s paper – and those that will follow in the weeks and months ahead – is about substance. That is what really matters. The strength of the substantive case will determine the decision people reach when the choice is offered – as it will be – and it is time now to set out and debate that case.
“After everything that has happened it is time to set out a different and better vision. It is time to talk about making Scotland wealthier and fairer. It is time to talk about independence – and then to make the choice.”
Scottish Government Minister and Scottish Green Party Co-Leader Patrick Harvie said: “This paper sets out a detailed, evidence-based assessment of how the UK performs in comparison to a group of European countries.
“It shows how we are being held back environmentally, socially and economically by a UK Government that does not have the interests of the people of Scotland in mind. And it shows that with the powers of independence we could make different decisions than those made by the UK government, and build a more prosperous, equal and greener Scotland.
“As we seek to deliver the transition to a net-zero economy and address a cost of living crisis that is being turbo-charged by Brexit, there could not be a more important time to give the people of Scotland a choice over our future.
The Building a New Scotland papers will help ensure that choice is an informed one, and I hope that everyone will join us in a positive and constructive national debate about Scotland’s future.”
HOUSEHOLDS ACROSS EDINBURGH TO BE SUPPORTED BY £23 BILLION
As communities across Edinburgh recover from the pandemic and face a Tory made cost of living crisis, yesterday the SNP Government’s spending review outlined record social security spending to help households facing increasing pressures. The Scottish Government allocated around £23 billion for social security over the course of the parliament.
The focus on supporting households under increasing pressure reflects the SNP’s commitment to create a fairer Scotland by tackling child poverty, reducing inequalities and supporting financial wellbeing in Edinburgh, and builds on current efforts to help families and mitigate Westminster welfare cuts.
The Resource Spending Review outlined over £23 billion worth of payments, with a total of almost £1.8 billion for the ‘game changing’ Scottish Child Payment alone. By 2026-27 the budget for Social Security Assistance will have increased by £6.3 billion.
This is despite the Scottish Budget for this year being cut in real terms by 5.2 per cent by the Tory UK government and the SNP government already spending almost £770 million on cost of living support, including several measures for families in Edinburgh not available elsewhere in the UK, such as:
Doubling the ‘game changing’ Scottish Child Payment to £20 per child per week with plans to increase it to £25 and extend it to under 16s by the end of the year – reaching a possible 450,00 young people.
Investing £86m to mitigate the Tory Government bedroom tax and benefit cap and support 90,00 people in their tenancies
Uprating eight Scottish social security payments by 6 per cent
A brand new Low-Income Winter Heating benefit that guarantees a £50 annual payment to over 400,000 low income households in winter 22/23
The Carers Allowance Supplement which will support around 90,000 carers with an additional £450 a year
Providing everyone in primaries one to five and over 140,000 eligible children and young people access to a free school lunch
Making free bus travel available for nearly half of Scotland’s population through concessionary travel
Additionally, the Scottish Government is making investment in areas like energy efficiency to bring down costs and the spending review set out how the SNP will build on these over the coming years.
SNP MSP for Edinburgh Pentlands, Gordon MacDonald, said: ““I am very glad to see this record investment in social security by the SNP Government, putting such a strong focus on tackling child poverty and helping households both across the Edinburgh Pentlands constituency and the wider city who are facing severe pressures right now which seems likely to only increase for the next while.
“Many families across Edinburgh are already benefitting from support like the Scottish Child payment, a £150 council tax reduction, the Scottish Welfare Fund and Discretionary Housing Payments which mitigate Westminster’s cruel bedroom tax.
“These are policies that build on the SNP’s current efforts. They will make a real difference to people’s lives and build on long standing measures that we benefit from every day – such as free prescriptions, free university tuition, free personal care, and 1,140 hours of free early learning and childcare which will continue to be maintained.
“When times are tough, Governments have to make tough decisions and I’m grateful the SNP government continue to focus on what matters most to people but, it is acting with one hand tied behind its back as Westminster continues to inflict its cruel austerity agenda at a time when people need support the most.
“Once again, it is clear that only with the full powers of independence, that we can stop spending a fixed budget on protecting households against Tory cuts and start to properly build a fairer, more equal Scotland.”
The 2022-23 Scottish Budget should be supported by MSPs to help accelerate economic recovery, tackle the climate emergency and reduce entrenched inequalities, according to Finance Secretary Kate Forbes.
It is the Scottish Government’s first Budget in partnership with the Scottish Green Party.
Speaking ahead of the Stage One Budget Bill debate in Parliament today, Ms Forbes said: “Our bold and ambitious spending plans are focused on supporting our key priorities, ensuring no one and no region is left behind.
“It targets resources towards low income households, invests in initiatives to end Scotland’s contribution to climate change and fundamentally, provides much needed investment to bolster our economic recovery.
“Recognising the severe impacts of the pandemic, £18 billion will support health boards and accelerate the recovery of vital health and social care services. Significant funding is also being provided to support the next steps in the single greatest public health reform since the establishment of the NHS – the creation of a new National Care Service.
“This Budget also funds our key priority of tackling child poverty and inequality, by targeting over £4 billion in social security payments, including £197 million to double the game-changing Scottish Child Payment from April 2022.
“Green recovery and economic transformation are central to our spending plans and an investment of at least £2 billion in infrastructure initiatives will support green jobs and accelerate efforts to become a net-zero economy, in addition to £150 million to create an active travel nation.
“Despite increased financial pressures, we are also continuing to treat councils fairly and we are providing a real terms increase of over 5% to local authority budgets for the coming year – despite cuts to Scotland’s overall budget by the UK Government.
“It cannot go unsaid that despite the ambition of this Budget, it comes amidst an extremely challenging fiscal backdrop and difficult decisions have had to be made. With uncertainty surrounding the cost of living, sky high energy prices, the ongoing impacts of the pandemic and the fallout from Brexit,
“I urge MSPs across the chamber to support this Budget and help us secure the way forward to becoming a fairer, greener, more prosperous country.”
The SNP budget is certain to be passed with Green Party support.
UK Government will provide a record £41 billion per year to the Scottish Government.
Scotland will also benefit from UK-wide support for people and businesses, green jobs and investment to level up opportunities.
Targeted funding will support local projects across Scotland, including road and infrastructure improvements, investment in local communities and funding for businesses.
The Chancellor today announced Barnett-based funding for the Scottish Government of £41 billion per year – delivering the largest annual funding settlement, in real terms, since devolution over 20 years ago. This includes a £4.6 billion per year spending boost – as part of a Budget and Spending Review that delivers a stronger economy for the whole of the UK.
Rishi Sunak set out a plan to deliver the priorities of the British people by investing in stronger public services, levelling up opportunity, driving business growth and helping working families with the cost of living.
As part of the significant spending plans, Scotland will receive an average of £41 billion per year in Barnett-based funding representing a 2.4% rise in the Scottish Government’s budget each year. The Scottish Government will now receive around £126 per person for every £100 per person of equivalent UK Government spending in England.
Chancellor of the Exchequer, Rishi Sunak said: “This is a budget for the whole of the UK. We’re focused on what matters most to the British people – the health of their loved ones, access to world-class public services, jobs for the future and tackling climate change.
“By providing record funding, the Scottish Government can tackle backlogs in the NHS and ensure people in Scotland get the support they need as we recover from the pandemic.
“The UK Government continues to level up opportunities across all parts of the UK, with investments in green jobs and high-speed internet access for thousands more homes in Scotland through Project Gigabit.
Scottish Secretary, Alister Jack said: “The Budget delivers for people in Scotland, and right across the UK.
“The Scottish Government’s block grant, boosted by an additional £4.6 billion a year due to spending in England, means that the funding for the Scottish Government is the highest it has ever been.
“It demonstrates our commitment to level up right across the UK. The Budget ushers in an era of real devolution, ensuring money is spent on projects that matter most to people in Scotland.
“The UK Government made a clear commitment to maintain Scotland’s level of funding following the vote to leave the EU, and we have delivered on that promise. We are taking decisions in the UK rather than in Brussels and dealing directly with local authorities who know their communities best.
“From the Knoydart community pub, to Dumbarton town centre and the Granton Gasworks – all these projects will bring real, visible improvements for local communities. Special funding for Glasgow’s iconic Burrell Collection and Extreme E will help drive economic growth and jobs on the back of culture and tourism.
“The continuation of the freeze on spirit duty will be a boost to Scotland’s thriving whisky industry.
“Over the past 18 months the UK Government has been focused on protecting people’s livelihoods, their incomes, and their jobs. We now need to look to the future, to build a stronger economy for people in all parts of the UK.”
Targeted funding in Scotland
On top of the record funding for the Scottish Government, Scotland will benefit from the UK Government’s commitment to invest in people, jobs, communities and businesses. Targeted projects in Scotland include:
Over £200 million to be invested in Scotland to boost the post-pandemic recovery and enhance the Scottish economy, including:
£172 million of the Levelling Up Fund for 8 important projects including the redevelopment of Inverness Castle, the much-needed renovation of the Westfield Roundabout in Falkirk, and a new marketplace in Aberdeen City Centre.
Over £1.07 million of the Community Ownership Fund for five projects in Whithorn, Inverie, New Galloway, Kinloch Rannoch and Callander that are protecting valued community assets.
Providing £1.9 billion for farmers and land managers and £42.2 million to support fisheries.
Up to £1 million, to support the delivery of a ‘green’ formula E race showcasing Hebridean Green Hydrogen to a global audience.
Expanding the existing trade and investment hub in Edinburgh to grow trade for Scotland.
Up to £3 million to bring world-class art exhibitions to the Burrell Collection in the heart of Glasgow.
UK-Wide Support
As a result of our strong United Kingdom, Scotland will benefit from:
A 50% cut in domestic Air Passenger Duty for flights between England, Scotland, Wales and Northern Ireland and an additional £22.5 million of new funding in anticipation of the Union Connectivity
Review recommendations where we will work with the devolved administrations on improving UK-wide connectivity.
New funding for the British Business Bank to establish a £150 million fund in Scotland, helping Scottish businesses to get the financing they need.
The new £1.4 billion Global Britain Investment Fund which will support investment directly into Scotland.
A record £20 billion by 2024-25 in Research and Development supporting innovation in Scotland.
Confirmation that total funding will at a minimum match the size of EU Funds in Scotland, each year through the over £2.6bn UK Shared Prosperity Fund, which will invest in skills, people, businesses, and communities, including through ‘Multiply’, a new adult numeracy programme that will provide people across Scotland with essential numeracy skills.
An increase to the National Minimum Wage of £9.50 an hour, with young people and apprentices also seeing increases.
Freezes to fuel duty for the twelfth consecutive year and a freeze on Vehicle Excise Duty for heavy goods vehicles.
A freeze on alcohol duty, which will mean that whisky benefits from the lowest real terms tax rate since 1918.
BUDGET REACTION
Rachel Reeves MP, Labour’s Shadow Chancellor, responding to the Budget, said:Families struggling with the cost of living crisis, businesses hit by a supply chain crisis, those who rely on our schools and our hospitals and our police – they won’t recognise the world that the Chancellor is describing. They will think that he is living in a parallel universe.
The Chancellor in this budget, has decided to cut taxes for banks. So, Madame Deputy Speaker, at least the bankers on short haul flights sipping champagne will be cheering this budget today.
And the arrogance, after taking £6 billion out of the pockets of some of the poorest people in this country, expecting them to cheer today for £2 billion given to compensate.
In the long story of this Parliament, never has a Chancellor asked the British people to pay so much for so little.
Time and again today, the Chancellor compared the investments that he is making to the last decade. But who was in charge in this lost decade? They were.
So, let’s just reflect on the choices the Chancellor has made today – the highest sustained tax burden in peacetime.
And who is going to pay for it?
It’s not international giants like Amazon – the Chancellor has found a tax deduction for them. It’s not property speculators – they’ve already pocketed a stamp duty cut. And it’s clearly not the banks – even though bankers’ bonuses are set to hit a record high this year.
Instead, the Chancellor is loading the burden on working people. A National Insurance Tax rise – on working people. A Council Tax hike – on working people. And no support today for working people with VAT on their gas and electricity bills.
And what are working people getting in return? A record NHS waiting list, with no plan to clear it, no way to see a GP and still having to sell their home to pay for social care.
Community policing nowhere to be seen, a court backlog leaving victims without justice and almost every rape going unprosecuted.
A growing gap in results and opportunities between children at private and state schools. Soaring number of pupils in supersize classes and no serious plan to catch up on learning stolen by the virus. £2 million announced today – a pale imitation of the £15 billion catch up fund that the Prime Minister’s own education tsar said was needed. No wonder, Madame Deputy Speaker, that he resigned.
Now the Chancellor talks about world class public services. Tell that to a pensioner waiting for a hip operation. Tell that to a young woman waiting to go to court to get justice. Tell that to a mum and dad, waiting for their child the mental health support they need.
And the Chancellor says today that he has realised what a difference early years spending makes. I would just say to the Chancellor, has he ever heard of the Sure Start programme that this Tory government has cut?
And why are we in this position? Why are British businesses being stifled by debt while Amazon gets tax deductions?
Why are working people being asked to pay more tax and put up with worse services?
Why are billions of pounds in taxpayer money being funnelled to friends and donors of the Conservative party while millions of families are having £20 a week taken off them?
Madame Deputy Speaker, why can’t Britain do better than this?
The Government will always blame others. It’s business’ fault, it’s the EU’s fault, it’s the public’s fault.
The global problems, the same old excuses. But the blunt reality is this – working people are being asked to pay more for less for three simple reasons:
Economic mismanagement,
An unfair tax system,
And wasteful spending.
Each of these problems is down to 11 years of Conservative failure and they shake their heads but the cuts to our public services have cut them to the bone. And while the Chancellor and the Prime Minister like to pretend they are different, the Budget they’ve delivered today will only make things worse.
The solution starts with growth. The Government is caught in a bind of its own making. Low growth inexorably leads to less money for public services, unless taxes rise.
Under the Conservatives, Britain has become a low growth economy. Let’s look at the last decade – the Tories have grown the economy at just 1.8 percent a year.
If we had grown at the same rate as other advanced economies, we could have spent over £30bn to invest in public services without needing to raise taxes.
Let’s compare this to the last Labour Government. Even taking into account the global financial crisis, Labour grew the economy much faster – 2.3 percent a year.
If the Tories matched our record, we would have spent £30bn more on public services without needing to raise taxes.
It could not be clearer. The Conservatives are now the party of high taxation, because the Conservatives are the party of low growth.
The Office for Budget Responsibility confirmed this today – that we will be back to anaemic growth. The OBR said that by the end of this Parliament, the UK economy will be growing by just 1.3%. Which is hardly the plan for growth that the Chancellor boasted about today, hardly a ringing endorsement of his announcements.
Under the Tory decade we have had ow growth and there’s not much growth to look forward to.
The economy has been weakened by the pandemic but also by the Government’s mishandling of it.
Responding to the virus has been a huge challenge. Governments around the world have taken on debt, but our situation is worse than other countries.
Worse, because our economy was already fragile going into the crisis. Too much inequality, too much insecure work, too little resilience in our public services.
And worse, because the Prime Minister dithered and delayed, against scientific advice – egged on by the Chancellor – we ended up facing harsher and longer restrictions than other countries.
So, as well as having the highest death toll in Europe, Britain suffered the worst economic hit of any major economy.
The Chancellor now boasts that we are growing faster than others, but that’s because we fell the furthest.
And whilst the US and others have already bounced back to pre-pandemic levels, the UK hasn’t. Our economy is set to be permanently weaker.
On top of all of that, the Government is now lurching from crisis to crisis. People avoiding journeys because they can’t fill up their petrol tank is not good for the economy. People spending less because the cost of the weekly shop has exploded is not good for the economy. And British exporters facing more barriers than their European competitors because of the deal that this government did is not good for the economy.
If this were a plan, it would be economic sabotage. When the Prime Minister isn’t blagging that this chaos is part of his cunning plan, he says he’s “not worried about inflation.”
Tell that to families struggling with rising gas and electricity bills, with rising prices of petrol at the pump and with rising food prices. He’s out of touch, he’s out of ideas and he’s left working people out of pocket.
Madame Deputy Speaker, Conservative mismanagement has made the fiscal situation tight. And when times are tight it’s even more important to ensure that taxes are fair, that taxpayers get value for money. But the Government fails on both fronts.
We have a grossly unfair tax system with the burden heaped on working people.
Successive budgets have raised council tax, income tax and now National Insurance. But taxes on those with the broadest shoulders, those who earn their income from stocks, shares, and property portfolios have been left largely untouched.
Businesses based on the high street are the lifeblood of our communities and often the first venture for entrepreneurs.
But despite what the Chancellor has said today, businesses will still be held back by punitive and unfair business rates. The Government has failed to tax online giants and watered-down global efforts to create a level playing field.
And just when we need every penny of public money to make a difference, we have a government that is the by-word for waste, cronyism and vanity projects.
We’ve had £37 billion for a test and trace system that the spending watchdog says, ‘treats taxpayers like an ATM cash machine’. A yacht for ministers, a fancy paint job for the Prime Minister’s plane and a TV studio for Conservative Party broadcasts, which seems to have morphed into the world’s most expensive home cinema.
£3.5bn of Government contracts awarded to friends and donors of the Conservative Party, a £190 million loan to a company employing the PMs former Chief of Staff, £30 million to the former Health Secretary’s pub landlord. And every single one of those cheques signed by the Chancellor.
And now he comes to ordinary working people and asks them to pay more. More than they have ever been asked to pay before and at the same time, to put up with worse public services. All because of his economic mismanagement, his unfair tax system and his wasteful spending.
There are of course some welcome measures in this budget today, as there are in any budget.
Labour welcomes the increase in the National Minimum Wage, though the Government needs to go further and faster. If they had backed Labour’s position of an immediate rise to at least £10 an hour then a full-time worker on the minimum wage would be in line for an extra £1,000 a year.
Ending the punitive public sector pay freeze is welcome, but we know how much this Chancellor likes his smoke and mirrors. So, we’ll be checking the books to make sure the money is there for a real terms pay rise.
Labour also welcomes the Government’s decision to reduce the Universal Credit taper rate, as we have consistently called for. But the system has got so far out of whack that even after this reduction, working people on universal credit still face a higher marginal tax rate than the Prime Minister. And those unable to work – through no fault of their own – still face losing over £1000 a year. And for families who go out to work everyday but don’t get government benefits, on an average wage, who have to fill up their car with petrol to get to work, who do that weekly shop and who see their gas and electricity prices go up – this budget today does absolutely nothing for them.
We have a cost-of-living crisis.
The Government has no coherent plan to help families to cope with rising energy prices. Whilst we welcome the action taken today on Universal Credit, millions will struggle to pay the bills this winter.
The Government has done nothing to help people with their gas and electricity bills with that cut in VAT receipts as Labour has called for. A cut that is possible because we are outside the European Union and can be funded by the extra VAT receipts that have been experienced in the last few months.
Working people are left out in the cold while the Government hammers them with tax rises.
National Insurance is a regressive tax on working people, it is a tax on jobs.
Under the Chancellor’s plans, a landlord renting out dozens of properties won’t pay a penny more. But their tenants, in work, will face tax rises of hundreds of pounds a year. And he is failing to tackle another huge issue of the day. Adapting to climate change.
Adapting to climate change presents opportunities – more Jobs, lower bills and cleaner air. But only if we act now and at scale. According to the OBR, failure to act will mean public sector debt explodes later, to nearly 300% of GDP.
The only way to be a prudent and responsible Chancellor is to be a Green Chancellor. To invest in the transition to a zero-carbon economy and give British businesses a head-start in the industries of the future.
But with no mention of climate in his conference speech and the most passing of references today, we are burdened with a Chancellor unwilling to meet the challenges we face.
Homeowners are left to face the costs of insulation on their own, industries like steel and hydrogen are in a global race without the support they need and the Chancellor is promoting domestic flights over high speed rail int he week before COP26.
It is because of this Chancellor that in the very week we try and persuade other countries to reduce emissions, this Government can’t even confirm it will meet its 2035 climate reduction target.
Madame Deputy Speaker, everywhere working people look at the moment they see prices going up and shortages on the shelves. But this Budget did nothing to address their fears.
Household budgets are being stretched thinner than ever but this Budget did nothing to deal with the spiralling cost of living. It is a shocking missed opportunity by a government that is completely out of touch.
There is an alternative. Labour would scrap the business rates and replace it with something much better by ensuring online giants pay their fair share. That’s what being pro-business looks like.
We wouldn’t put up National Insurance for working people, we would ensure those with the broadest shoulders pay their share. That’s what being on the side of working people looks like.
We’d end the £1.7 billion subsidy the Government gives private schools and put it straight into local state schools. That’s what being on the side of working families looks like.
We’d deliver a climate investment pledge – £28bn every year for the rest of the decade. That’s Giga-factories to build batteries for electric vehicles, a thriving hydrogen industry and retrofitting, so we keep homes warm and get energy bills down. That’s what real action on climate change looks like.
This country deserves better but they’ll never get it under this Chancellor who gives with one hand but takes so much more with the other.
The truth is this – what you get with these two is a classic con game. It’s like one of those pickpocketing operations you see in crowded places. The Prime Minister is the front man – distracting people with his wild promises. All the while, his Chancellor dips his hand in their pocket. It all seems like fun and games until you walk away and realise your purse has been lifted.
But people are getting wise to them. Every month they feel the pinch. They are tired of the smoke and mirrors, of the bluster, of the false dawns, of the promises of jam tomorrow.
Labour would put working people first. We’d use the power of government and the skill of business to ensure that the next generation of quality jobs are created right here, in Britain.
We’d tax fairly, spend wisely and after a decade of faltering growth, we’d get Britain’s economy firing on all cylinders.
That is what a Labour budget would have done today.
Edinburgh Pentlands SNP MSP Gordon MacDonald said that the Tory UK Government’s budget makes it clear that “independence is the only way to give Edinburgh a fair recovery from the pandemic.”
Gordon MacDonald said that the budget, described by the head of the Institute for Fiscal Studies as “actually awful” for living standards, is failing the people of Scotland by failing to tackle the cost of living crisis, the Brexit crisis and the climate crisis whilst the Tory Government prioritise cuts to the cost of champagne and giving tax breaks to bankers.
The Edinburgh Pentlands MSP said: “What the Tory UK Government has outlined today does not meet the ambition needed to build a fair and sustainable recovery and to tackle the cost of living crisis.
“It’s painfully clear that there will be no fair recovery from the pandemic under Westminster control.
“This Tory budget fails Scotland as a whole and doesn’t go anywhere near supporting people in Edinburgh, who are being hit by an energy crisis, a Brexit crisis, labour shortages and an inflation crisis under Westminster control.
“The UK Government budget is leaving families in Edinburgh hundreds of pounds worse off next year due to Tory cuts, tax hikes and the soaring cost of Brexit.
“It’s little wonder that, in May’s election, the people of Scotland voted overwhelmingly for a different future when they gave the SNP the highest share of the vote since the dawn of devolution and a clear mandate for an independence referendum – Independence is the only way to keep Scotland safe from Tory cuts.”
“The chancellor admitted that we will have zero pay growth across the economy next year. And he has no plan to get real wages rising for everyone after an eleven year pay squeeze, with average real pay growth over the next four years predicted to be just 0.3 per cent.
“He should have announced fair pay deals for whole industries, negotiated with unions, designed to get pay and productivity rising in every sector.
“Families face a triple whammy of a £1,000 universal credit cut, tax hikes and fast-rising energy and food bills. All the while wages across the economy stand still.”
On the universal credit taper cut, she added:
“Workers on universal credit should always have been able to keep more of their wages. This change does not make up for the £1,000 per year cut to universal credit, and does not help those on universal credit who cannot work.”
Centre for Cities’ Chief Executive Andrew Carter said:“Raising the National Living Wage is a quick win for the levelling up agenda and will have the biggest impact in the places that are crucial to the Prime Minister winning the next election. Four of the five places where the most people will benefit are in the North.
“While a pay increase is good news for people struggling with the cost of living crisis, it does not address the reasons why they live on low pay in the first place: a lack of well-paid jobs in their local area.
“We’ve seen today the beginnings of a plan focused on skills, innovation and infrastructure to address this, but turning it from rhetoric to reality will depend on ministers’ willingness to work with metro mayors and councils on delivering it.
“I am now looking to the delayed Levelling Up White Paper to set out how this will happen.”
Katie Schmuecker, Deputy Director of Policy & Partnerships at JRF said:“This is a tale of two Budgets for families on low incomes.
“For those in work, the change to the taper rate and work allowance, alongside the National Living Wage increase, are very positive steps, allowing low-paid workers to keep more of what they earn. Together these measures improve our social security system for working families and demonstrate a serious intent to turn the tide on the pre-pandemic trend of rising in-work poverty.
“But the reality is that millions of people who are unable to work or looking for work will not benefit from these changes. The Chancellor’s decision to ignore them today as the cost of living rises risks deepening poverty among this group, who now have the lowest main rate of out-of-work support in real terms since around 1990.
“Among the people in our society who cannot work are cancer patients, people with disabilities and those caring for young children or elderly parents.
“Their energy bills and weekly shop are going up like everyone else’s and they face immediate hardship, hunger and debt in the months ahead. The Chancellor had an opportunity to support families on the lowest incomes to weather the storm ahead, and he did not take it.”
New analysis by the independent Joseph Rowntree Foundation reveals that the rising cost of living wipes out much of the financial gain some families will receive from the Universal Credit changes announced today.
Weekly incomes and Costs for 2022/23
Family 1: single adult, no children, not working
Family 2: single parent, with one young child (assume age 5), part-time 16 hours per week
Family 3: couple with two young children (assume 7 and 5). One FT worker
Family 4: single parent, with one young child (assume age 5), full-time 35 hours per week
Family 5: Couple with two young children (assume 7 and 5). 1 FT worker (35 hours), 1 PT worker (16 hours)
Weekly income before new announcements
£77
£278
£433
£333
£489
Weekly gain from taper rate and work allowance
£0
£8
£19
£19
£31
Total loss from higher cost of living due to…
-£13
-£16
-£23
-£18
-£24
1) increase in energy prices
-£7
-£7
-£7
-£7
-£7
2) overall cost of living increase
-£6
-£8
-£13
-£8
-£13
3) increase in National Insurance and impact of inflation on earnings
£0
-£1
-£3
-£3
-£4
Overall weekly gain or loss after measures and cost of living
-£13
-£8
-£4
£1
£7
Note all five families lost £20-a-week in October 2021, due to the cut in the Universal Credit Standard Allowance, so all are worse-off than they would have been in September 2021. All workers are assumed to be paid at the National Living Wage rate, so benefit from its increase.
Peter Kelly,Director of the Poverty Alliance, said: “It is a shameful, unjust decision that makes the Chancellor’s rhetoric about ‘levelling up’ seem as empty as the pockets of the hundreds of thousands of people swept into poverty as a result.”
