Tag: spending

Latest COVID-19 funding allocations

Money for business support and vaccine programme

More than £1.8 billion of extra funding has been allocated to tackling the impact of coronavirus (COVID-19) in Scotland.

It covers areas including health, transport and business support, accounting for all but £330 million of the latest consequentials generated by UK Government spending. The remainder will be used to meet further urgent demands relating to both COVID-19 and Brexit up to the end of March 2021.

The funding is detailed in a letter from Finance Secretary Kate Forbes to the Scottish Parliament’s Finance and Constitution Committee.

Ms Forbes said: “From the outset, I have ensured that the money we receive is distributed as quickly as possible to where it is needed most. Our decisions have provided vital additional resources to our NHS, schools and other public services, they have kept our transport system running and provided much needed financial support for businesses impacted by the pandemic.

“To provide full transparency, I detailed earlier allocations in the summer and autumn budget revisions. This latest round will deliver measures such as the COVID-19 vaccination programme, local business support packages and free school meals over the holidays.

“The UK Treasury has indicated that this funding covers the period up to March 2021, so I have allocated £330 million as a contingency to ensure we are in a position to provide further support to health and businesses, including for issues arising from Brexit, as it is required over the coming months.

“Our limited borrowing powers mean we do not have flexibility to increase spending to meet demand and therefore must manage our expenditure – much of which is demand led so cannot be accurately calculated in advance –  within the consequentials provided.”

The latest allocations include:

  • around £600 million for health and social care, wider public health initiatives and welfare support. This includes the COVID-19 vaccination programme, test and trace and the £500 bonus for health and social care workers. 
  • support for business and the wider economy totalling £570 million, including funding for the strategic framework, local business support packages, the newly self-employed hardship fund and local authority discretionary business funding
  • an estimated £139 million of previously announced funding for government, bringing the overall support package to councils to more than £1 billion
  • around £500 million to support transport services and cover pandemic-related income shortfalls within organisations such as Police Scotland, the Scottish Funding Council and the Scottish Courts and Tribunals Service

The latest COVID-19 consequentials bring the total received by the Scottish Government to £8.2 billion.

A further update on COVID-19 spending will be provided through the Spring Budget Revision in the New Year.

A copy of Ms Forbes’ letter to the Finance and Constitution Committee Convener Bruce Crawford is below:

Dear Bruce,

I am writing to update the Finance and Constitution Committee on usage and allocations to date of consequential funding received during 2020-21 as a result of the Covid-19 outbreak.

We have drawn down and allocated this funding over the course of the year in response to what has been an exceptional and dynamic set of circumstances. I have updated Parliament on several occasions and, although a further update will be provided through the Spring Budget Revision in the New Year, I thought it would be helpful to provide further information in advance of that.

Around £6 billion of consequentials were allocated in the unprecedented Summer Budget Revision and as part of the Autumn Budget Revisions. Since then, consequentials provided have been increased to £8.2 billion.

I can confirm that thus far, further allocations have been provided as follows:

  • Around £600 million has been provided to health and social care, wider public health initiatives and welfare support. This funding supports the public health response to Covid including: vaccinations and test and trace; the £500 non-consolidated payment for health and social care staff; and the Winter Plan for Social Protection, which helps people pay for food, heating, warm clothing and shelter as well as free school meals over the school holidays and the self-isolation support grant.
  • Support for business and the wider economy of £570 million, including grants via the Strategic Framework, funding for local support packages, the newly self-employed hardship fund, digital support, Local Authority Discretionary Business Funding and remaining allocations from the £97 million support for culture and heritage.
  • Previously announced support for Local Government, relating to the estimated £90 million Lost Income Scheme as well as £49 million of additional funding confirmed to councils in September. Added to additional funding already committed, this brings the value of the overall support package to councils to more than £1 billion.
  • Around £500 million of funding to support continued provision of transport and funding for income shortfalls within our partner bodies including Police Scotland, the Scottish Funding Council, Registers of Scotland and the Scottish Courts and Tribunals Service in order to ensure that they can continue to deliver vital services, as well as mitigating shortfalls in devolved tax as a direct result of Covid-19.
  • Due to the nature of the Covid-19 outbreak, the potential asks for further demand led spend with regards strategic framework support for business in Scotland and additional demands on health, and the requirement that the funding provided to date will cover all costs until the end of March 2021, I have allocated £330 million of funding in order to support these asks. This is consistent with the terms of the funding guarantee provided by HM Treasury to the devolved administrations, which specified the funding was to cover the period until March 2021. This contingency is also required in order to support any additional funding requirements as a result of the end of the EU transition period.
  • The Scottish Government’s limited borrowing powers means we do not have flexibility to increase spending and therefore must manage demand-led expenditure risks within the consequentials provided.

The figures above remain a snapshot of a dynamic funding position. I will formally advise of final allocations as part of Spring Budget Revision, the last formal opportunity in the financial year to transfer budgets.

KATE FORBES

https://twitter.com/i/status/1337006754421501952

Businesses across Scotland will benefit from a new £185 million package of targeted coronavirus support.

The announcement follows discussions with business groups and sees a wide range of sectors benefiting, from taxi drivers and arts venues to travel agents and hospitality.

In addition, there will be additional one-off payments to hospitality businesses in January to help them deal with the traditional post-Christmas dip in demand. These will be of £2,000 or £3,000, depending on rateable value.

The package was announced by Finance Secretary Kate Forbes, who also said she had written to the Treasury calling for Scotland to receive its share of rates relief reimbursed by supermarkets “to ensure this is spent on those areas hardest hit as part of Scotland’s recovery from COVID-19”.

Ms Forbes said: “Today I am pleased to confirm an allocation of £185 million for new and additional business support in the new year. We have listened to businesses and this assistance will be provided on a sector-by-sector basis, targeted at those who need it most.

“We are developing grant schemes for hospitality, for the events sector, live music and cultural venues, for the arts, indoor football centres and for the food and drink sector, including £1.8 million for brewers.

“We will give £1.5 million to travelling show people ineligible for other support, while a new £19 million fund, plus a one-off grant, will help taxi drivers.

“I can also announce that further support of £60 million will be provided to the tourism sector, details of which will be developed in consultation with the industry.

“I am listening to the needs of business and we will continue to review and refine our COVID-19 support offer within the available resources.”

Specific support detailed in Wednesday’s announcement includes:

  • £15 million for the wedding sector and its supply chain, including photographers
  • one-off grants totalling £15 million for mobile close contact services, such as hairdressers
  • a £19 million fund and one-off grants for taxi drivers
  • £5 million for travel agents
  • almost £6 million for coach companies and tour operators
  • £1.5 million for visitor attractions.

More detail on the package will be announced in the coming days and businesses can expect to apply for all the new grant schemes in January.

SNP must invest extra £200m in GP services, says Briggs

The Scottish Conservatives have called for an extra £200million to be invested in GP services across Scotland. 

Scotland will receive an additional £200million as a result of a Conservative pledge, announced today, to create 50 million more appointments in GP surgeries in England. Continue reading SNP must invest extra £200m in GP services, says Briggs

Spend, spend, spend!

LOTHIAN RESIDENTS SPEND THE MOST ON NIGHTS OUT

  • New research compares the spending habits of Scotland’s key regions
  • Those living in Lothian spend the most money on going out
  • Lothian residents also spend the most money on themselves and their partners   

Edinburgh's Hogmanay 2015 - Midnight Fireworks 31st Dec - credit Chris Watt

People living in Edinburgh and the Lothian region spend the most money on going out, according to new research from the Bank of Scotland. Residents in Lothian topped the poll, spending an average £116 per month on nights out, according to Bank of Scotland’s How Scotland Lives report – £19 more than the national average spend.

Coming in second place, those living in Glasgow and Fife were both found to spend an average £104 per month on going out. While those in the Highlands & Islands came last, spending just £75 per month.

West Scotland and South Scotland also scored low on the report, with residents spending a mere £89 and £82 on going out.

The research also pinpointed Lothian as the region which spends the most amount of money on themselves and their partners, with residents forking out an average £98 per month – £14 more than the national average.

Central Scotland came second, spending £95 on themselves, and their partners. While South Scotland are the most frugal when it comes to splashing out on themselves and their partners, spending just £74.

As well as highlighting Lothian’s sociable side, the research report has also provided a comparison of what Scotland’s key regions spend more on, compared to other regions.

Residents in Aberdeen come out on top for rent, mortgage and car payments, while those living in Dundee spend the most amount of money on shopping for children.

Those living in Glasgow were found to spend the most on insurance premiums, while Highlands & Islands residents were revealed as spending the most amount of money on debt payment – and adult care costs.

A full snapshot of Scotland’s key regional spending habits:

Region What it spends more on compared to any other Scottish region* Mean expenditure (per month) Comparison to the national average spend (£)
Glasgow Insurance premiums £115 £8 more
Lothians Going out £116 £19 more
Shopping for themselves/a partner £98 £14 more
Highlands & Islands Paying off debts £276 £50 more
Adult care costs £205 £66 more
Dundee & surrounds Shopping for children £102 £14 more
Aberdeen & surrounds Mortgage and rent payments £527 £104 more
Car payments £182 £36 more


Scotland’s debt doubts  

In addition to providing a snapshot of Scotland’s regional spending habits, the How Scotland Lives research report has highlighted the debt faced by many across the country.

In particular, 46% of Scots are carrying over at least some form of debt from the previous month.

More than half of debtors indicated they were concerned with their current financial position. This is particularly the case among 35-45 year olds, with 30% believing they will always be in debt.

Rachel Bright, Head of Customer Services at Bank of Scotland said: “While other regions spend more on necessity costs such as insurance premiums and debts, Lothian comes out on top for just wanting to have a good time.

“The research also paints a picture of the level of consumer debt in Scotland. It’s concerning that almost half of Scots aren’t paying off their debts from previous months and we would always encourage people to look at other areas to see if they can make savings that will allow them to pay off more debt.”

A nation divided …

… and it’s nothing to do with the Referendum!

lites

With Christmas just around the corner new research from Clydesdale Bank has shown that the nation is divided over the very thing that makes Christmas sparkle – this country’s love affair with outdoor festive lights!

Almost half of us (47%) said we love seeing lots of brightly lit Santas, snowmen and reindeers outside of houses at this time of year. However, almost a third have a more ‘bah humbug’ approach to lighting up the festive season.

The survey revealed that 14% of us think they are a waste of money and a further 11% actually wishing their neighbours wouldn’t decorate the outside of their homes. Nearly one in ten (8%) of those surveyed said they simply don’t like Christmas decorations while a sixth (15%) said they would like to put lights outside their home but the cost of powering them puts them off.

But despite mixed views the majority of the nation is getting into the festive spirit with 57% of us saying we are looking forward to spending time with family and friends.

However this time of year is also proving to be stressful for some with almost a fifth of those surveyed admitting that they are worried about paying for Christmas and a further 19% stating that Christmas shopping is their least favourite part of the build-up to the big day.

Andrew Pearce, Retail Director for Clydesdale Bank, said: “Our research has shown that people either love or loathe outdoor Christmas lights.  Some view them as extravagant and an unnecessary waste of money and electricity whilst others enjoy the Christmas atmosphere they bring to the community.

“Whatever decorations you opt for this year, it’s still possible to have fun this festive season without blowing the budget.”

Clydesdale Bank’s simple tips to save money this Christmas:

  1. Set a budget – and stick to it. Work out how much you can afford to spend and don’t exceed this amount.
  2. Remember the most expensive present is not necessarily the best. Sometimes a more thoughtful, personal gift can be more appreciated. For example, new parents may prefer the offer of babysitting rather than more perfume or aftershave.
  3. Shop about – when you have decided what you want to buy, look for the best bargain. Many shops have sales in the run-up to Christmas, so pick your purchasing timing wisely.
  4. Group together – rather than buying gifts for every one of your friends individually, why not hold a secret Santa where each person buys for just one friend?
  5. Have a family feast – ask your guests to bring a course or some goodies with them so you don’t have sole responsibility for Christmas dinner. It could simply be bringing the wine or the Christmas crackers but will help you share the expense.

What’s your view – tacky or terrific? Let us kno-ho-ho!

lights