Plan to grow economy, target spending and deliver progressive tax system
Economic growth, progressive taxation and spending plans that unapologetically target those in greatest need are at the heart of a financial strategy announced by Deputy First Minister Shona Robison.
The Medium-Term Financial Strategy outlines the approach to ensuring Scotland’s finances are on a sustainable footing and delivering high-quality public services in the face of high inflation. This includes:
growing the economy, including by delivering on ambitious commitments on childcare, seizing opportunities in areas where Scotland has a competitive advantage and supporting entrepreneurs, start-ups and scale-ups
taking tough decisions around spending, focusing on what is needed to achieve the missions of equality, opportunity and community
updating the tax strategy, with a new advisory group to be established this summer and chaired by the Deputy First Minister
The strategy details the tough choices required in challenging financial circumstances. Scottish Government estimates indicate that due to inflation, pay increases and the lack of further funding from the UK Government, current resource spending requirements could exceed funding by £1 billion in the next financial year, and by £1.9 billion in 2027-28.
The gap between capital spending commitments and funding could rise to 16% in 2025-26.
Ms Robison said: “We are steadfast in our commitment to tackling poverty, building a fair, green and growing economy, and improving our public services to make them fit for the needs of future generations.
“But we must recognise that our current financial situation is among the most challenging since devolution, driven by the Covid pandemic, the war in Ukraine and the recent period of high inflation.
“Our funding remains largely based on decisions made by the UK Government, but they have failed to take the steps required to inflation-proof our budgets, and their decisions from Brexit to the disastrous mini-budget have made matters worse. This is creating substantial pressure on our public services, which we have no choice but to address.
“Today I have outlined our strategy for managing these challenges, doing all we can within our powers to ensure public finances are on a sustainable path. We will have a laser-like focus on spending, ensuring it targets equality, opportunity and community.
“We will generate economic growth, supporting businesses to invest and create new jobs while increasing tax revenues to invest in better public services. And we will continue to build the most progressive tax system in the UK, ensuring the burden of taxation is placed on those with the broadest shoulders.
“There can be no escaping the difficult choices ahead, but by following the plan outlined today we can provide a more prosperous and fairer future for the people of Scotland.”
Responding to the statement, STUC General Secretary Roz Foyer said: “The Cabinet Secretary for Finance is in a slightly better budgetary position than was predicted this time last year. However, she rightly points out that UK Government austerity and its manufactured cost-of-living crisis continue to hit Scotland hard.
“However, this is not an excuse for inaction. There is a worrying lack of ambition from the government ministers which cannot be condoned.
“Tax reform cannot be kicked down the road for another year. To protect services and pay, the Scottish Government must make good on the First Minister’s pledge to leave no stone unturned in seeking to raise additional income by rebalancing wealth. This means committing now to the policy changes required to introduce wealth and property taxes as the STUC has advocated.”
Tax, targeted support and tough budget choices will all need to be considered as part of bold measures to tackle poverty, First Minister Humza Yousaf said yesterday after meeting poverty campaigners.
The anti-poverty summit, convened by the First Minister, saw political leaders from across the Scottish Parliament meet with people who have direct experience of poverty, campaigners, and third sector organisations.
Speaking after the event, which was attended by around 90 delegates, the First Minister said: “I called the summit to listen to the views of a wide range of partners, particularly those at the sharp end of the cost of living crisis and with direct experience of poverty, about what they believe needs to be done.
“Everything I heard confirmed that poverty and the cost of living crisis is the biggest challenge facing this country – one that has been exacerbated by some of the UK Government’s actions and inactions.
“We have already acted to tackle the pressure on those most in need – for example, our game-changing £25 per week per child Scottish Child Payment, Carer’s Allowance Supplement, and Winter Heating Payment.
“But we must do more. We must be bold in considering future tax decisions. Tough choices will need to be made about existing budgets, and we need to consider whether targeting help is the way forward when money is so tight.
“It’s not enough to wish poverty away. We have to be hard-headed and realistic about what can be done – and then we have to focus on making it happen. That means the debate must now be about tax, targeting and tough choices. We are listening and will not shy away from the decisions needed to reduce poverty.”
COSLA President Councillor Shona Morrison said: “The initiative from the Scottish Government is a good one and one which Local Government can get fully behind. Tackling poverty is a core objective for Local Government working in partnership with the Scottish Government, the third sector and public and private sector partners.
“The cost- of-living crisis we are living through at present is being tackled head-on by Councils the length and breadth of Scotland and partnership working is vital to achieving positive outcomes for individuals, families and our communities across Scotland.”
Commenting on reports around the expansion of universal free school meals in Scotland, Poverty Alliance director Peter Kelly said: “The First Minister has to recognise the injustice that leaves so many children in Scotland hungry and without food they need.
“With figures from the Trussell Trust showing record numbers of families accessing food banks, this is not the time to roll back on commitments relating to free school meals.
“We know that many low-income families just miss out on qualifying for means-tested free school meals, and many others don’t claim because of shame or stigma.
“The best way to tackle this problem is through universal free school meals that benefit all of our children and young people.”
Peter Kelly was speaking just after attending yesterday’s anti-poverty summit, chaired by the First Minister.
He said: “The First Minister’s poverty summit was a timely opportunity to refocus on tackling the injustice of poverty in Scotland. Across all those who took part, there was a clear sense of urgency on the need to deliver real change.
“There was no shortage of ideas for action. We can expand funded childcare, use public contracts as a lever to improve pay and conditions in key sectors, and remove barriers to work for those people most affected by poverty – women, disabled people, people from Black and ethnic minority communities.
“Now is the time for the Scottish Government to turn those ideas into concrete action. We look forward to a follow up summit in the coming year to check where progress has been made.”
Positive anti-poverty summit soured by possible roll-back on Free School Meals
THE sCOTTISH Trades Union Congress (STUC) and the STUC Women’s Committee have warned of massive resistance to any reversal on the SNP free school meals pledge and called for an acceleration, not a roll-back of the programme.
STUC General Secretary Roz Foyer said: “We were enthusiastic participants in the summit today. Our key message is that better and fairer wages tied to redistributive taxation must lie at the heart of strategies to tackling poverty and inequality. Current levels of in-work poverty are totally unacceptable and place further pressure on our under-funded benefits system. We need to see real action coming out of this summit.
“Suggestions this morning that the Scottish Government might consider breaking pledges to extend free school meals is not what we are looking to hear. Investing in the health of all of our young people and removing stigma is a key priority and any roll-back will be fiercely resisted.”
Andrea Bradley, Chair of the STUC Women’s Committee and General Secretary of the Educational Institute of Scotland said: “The STUC Women’s Committee would be deeply concerned if the First Minster’s comments around a potential reversal of the Scottish Government’s progressive policy on universal free school meals expansion as reported today, were to be put into action.
“1 in 4 children in Scotland were living in poverty before the onset of the cost-of-living crisis, which the previous First Minister declared a humanitarian emergency. Now, food inflation of 20%, together with exorbitant energy costs, and stagnant wages is making life even harder and more miserable for hundreds of thousands of parents in Scotland and their children – many already missing out on a decent meal at school because of the stigma or the bureaucracy of means-testing.
“Now is the time to accelerate the roll-out of universal free school meals – not to roll back on what were essential promises.”
Energy regulator Ofgem has announced its quarterly update to the energy price cap for the period 1 April – 30 June 2023.
From 1 April the energy price cap will be set at an annual level of £3,280 for a dual fuel household paying by direct debit based on typical consumption, a reduction of almost £1,000 from the current level, of £4,279 which reflects recent falls in wholesale energy prices.
The £3,280 figure indicates how much consumers on their energy suppliers’ basic tariff would pay if the government’s Energy Price Guarantee (EPG) were not in place.
From 1 April, the government has set the EPG at £3,000 for the typical bill – meaning that consumers will not pay the full level of the energy price cap.
This reduction in the price cap level reflects a significant reduction in the cost of buying and providing energy for customers. If it continues, it will mean that by the summer, prices paid by consumers will drop for the first time since the global gas crisis took hold more than 18 months ago.
The energy price cap was introduced by the government and has been in place since January 2019, and Ofgem is required to regularly review the level at which it is set. It ensures that an energy supplier can recoup its efficient costs while making sure customers do not pay a higher amount for their energy than they should. The price cap, as set out in law, does this by setting a maximum that suppliers can charge per unit of energy.
Ofgem CEO Jonathan Brearley said: “Although wholesale prices have fallen, the price cap has not yet fallen below the planned level of the Energy Price Guarantee. This means, that on current policy, bills will rise again in April. I know that, for many households this news will be deeply concerning.
“However, today’s announcement reflects the fundamental shift in the cost of wholesale energy for the first time since the gas crisis began, and while it won’t make an immediate difference to consumers, it’s a sign that some of the immense pressure we’ve seen in the energy markets over the last 18 months may be starting to ease. If the reduction in wholesale prices we’re currently seeing continues, the signs are positive that the price cap will fall again in the summer, potentially bringing bills significantly lower.
“However, prices are unlikely to fall back to the level we saw before the energy crisis. Even with the extensive package of government support that is currently in place, this is a very tough time for many households across Britain.
“Where people are struggling, we urge them to contact their supplier to make sure they are getting all the help and support they are entitled to. We also think that, with bills continuing to be so high, there is a case for examining with urgency the feasibility of a social tariff for customers in the most vulnerable situations.
Ofgem has robust rules in place to help people in vulnerable situations, and suppliers are obliged to offer payment plans and direct customers to available support.
Bill-payers will continue to receive additional support via the EPG until the end of March 2024, as confirmed by the Chancellor on Thursday 17 November 2022. The level of this support is set by Government.
There is no immediate action for consumers to take as a result of today’s announcement.
Ofgem continues to protect consumers through its ongoing robust regulation of the market, taking enforcement action where necessary and providing support to those who need it the most.
The next quarterly price cap update will be on 26 May 2023.
UK Government leaving people to prop up energy bosses’ profits, says STUC
Roz Foyer, STUC General Secretary, stated: “The energy price cap might have fallen today but the callous decisions of the UK Government means most people will be facing higher energy bills from April 1st. Thousands of people are being pushed into poverty and face choosing between a hot meal or a warm home.
“There is no justification for continuing to ask people across the UK to pay the price for energy companies billions of profit. We need to take back control of our energy system, tax these companies properly, and end the outrageous injustice of rising energy bills.”
Common Weal and STUC call for pause to National Care Service legislation
Scottish think tank Common Weal, along with the Scottish Trade Union Congress, has launched a joint letter to the First Minister calling for the National Care Service Bill to be paused (writes NICK KEMPE).
Since Common Weal supported calls from the Trade Unions to pause the bill at the beginning of December many other organisations have done the same. Until now, however, smaller organisations have had a limited opportunity to make their views known and there has been very little joint action. The idea behind the letter, which you can read here, is to change that and to show the Scottish Government the degree of concern across Scotland.
The NCS Bill has now been considered by various Committees of the Scottish Parliament and MSPs should now be aware that there is very little enthusiasm or support for it in its current form. The hearings of the Finance and Public Administration Committee received a large amount of media coverage, not least because SNP MSP Michelle Thomson broke ranks and made some scathing comments.
The Committee’s report on the Financial Memorandum accompanying the bill, published at the beginning of December, was highly critical about the absence of costings. It highlighted the absence of costs for the creation of the new service, including VAT liability, transfer of assets and staff and the creation of a health and social care record, as well as the proposal to introduce major policies “via secondary legislation or business cases which cannot be subject to the same in-depth and formal financial scrutiny as Financial Memorandums to bills”.
It called on the Scottish Government to provide the necessary financial details at least two weeks prior to the Stage 1 consideration of the bill in March – giving very little time for any outside organisation to comment/brief MSPs
The majority report published last Friday here from the Delegated Powers and Law Reform Committee – don’t be put off by the name – added to the concerns about the lack of information and that the Scottish Government is “setting a dangerous precedent, undermining the role of the parliament.” Its reason for concluding this (the two SNP MSPs on the Committee dissented) was:
“The Committee is concerned there is insufficient detail on the face of the Bill and within the Bill documents to allow for meaningful parliamentary scrutiny. Given the far-reaching nature of the proposed reforms the Committee is mindful there is a real risk of letting down those the Bill is intended to help by allowing Scottish Government ministers to use delegated powers instead of primary legislation to introduce core and as yet unknown provisions. The Committee believes the current approach significantly reduces the threshold for parliamentary approval and prevents MSPs from bringing forward detailed amendments”.
Far from increasing democratic control over care services, as we advocated in Caring for All, the NCS Bill is now threatening to undermine democracy, whether at the local level by removing control from local authorities, or at the national level by handing unprecedented powers to Scottish Ministers.
The Scottish Government needs to have a fundamental re-think about what it is proposing and how its engaging with civic society while at the same time secretly working with KPMG to design the Target Operating Model for the NCS. If you are part of an organisation which has a stake in the future of social work and social care in Scotland, please ask them to support the letter. As an individual, please also consider contacting your MSPs asking them to support the call for a pause.
Nick Kempe – Common Weal Care Reform Group
COSLA’s Health and Social Care Spokesperson, @cllrpaulkelly, commented following the release of the letter from @ScottishTUC and signed by a number of organisations which has called for Scottish Government to pause the National Care Service Bill:
The STUC, along with the TUC, are coordinating a protect the right to strike day today (Wednesday 1 February).
PM Rishi Sunak is trying to force his anti-union “sack key workers bill” through parliament in a matter of weeks. It means that when workers democratically vote to strike, they could be forced to work and sacked if they don’t.
That’s wrong, unworkable, and almost certainly illegal. We need to stop this bill.
These new laws are a direct attack on working people’s fundamental right to strike to defend their pay, terms and conditions.
EDINBURGH
Edinburgh Day of Action
The Day of Action for Edinburgh will consist of three events:
Rally in the Mound at noon particularly for the PCS DWP members who will be on strike that day;
Indoor rally in the Southside Community Centre at 1.00pm/1.30pm.
Rally in the Mound at 5.00pm particularly for EIS members.
Solidarity with worker striking on the 1st February
Join our solidarity rally. Scottish workers in the civil service, higher education, some schools, some rail operators and Co-op Funeral Care will all be taking industrial action on 1st.
Join our joint strike rally at the Donald Dewar Steps, Buchanan Street at 12 noon.
Deputy First Minister John Swinney laid out “a different, more progressive path for Scotland” as he presented the Scottish Budget 2023-24.
He promised to strengthen the social contract with the people of Scotland and pledged to do everything possible to shield families from the welfare cuts and austerity policies of the UK Government
Supporting sustainable public services through the cost of living crisis is a priority – including more than £13.7 billion for NHS boards and £2 billion to establish and improve primary healthcare services in communities, as well as £1.7 billion for social care and integration, paving the way for the National Care Service. This record investment goes well beyond any previous commitment to pass on all consequentials to health and social care, and delivers a £1 billion uplift to the health budget.
Having already increased the unique Scottish Child Payment to £25 per week as part of a drive to eradicate child poverty, the Budget invests £428 million to uprate all other devolved benefits in April 2023 by September’s Consumer Price Index inflation level of 10.1%. It commits £20 million to extend the Fuel Insecurity Fund to provide a lifeline for households, including the most vulnerable, against rising energy prices.
Scotland’s transition to net zero is boosted with increased investment to over £366 million in delivering the Heat in Buildings Strategy in 2023-24. This will help tackle fuel poverty as part of a £1.8 billion commitment over this Parliament to improve energy efficiency and decarbonise more than a million Scottish homes by 2030.
The Budget commits £50 million to the Just Transition Fund for the North East and Moray – more than double the 2022-23 allocation – to diversify the regional economy away from carbon-intensive industries and capitalise on the opportunities presented by new, green industries.
Strengthened by the agreement between the Scottish Government and the Scottish Green Party, the 2023-24 Scottish Budget also includes:
around £1 billion investment in high quality early learning and childcare provision, with a further £22 million invested in holiday food provision and expanding support for school-age childcare
£50 million for the Whole Family Wellbeing programme for preventative co-ordinated family support and a further £30 million to keep The Promise to care experienced children and young people
£80 million capital funding to support the expansion of free school meals
going beyond existing commitments with more than £550 million additional funding to Local Government
£165 million additional funding for frontline justice services and to continue with transformational reforms
a £46 million increase in resource funding to universities and colleges to ensure a highly qualified and highly skilled workforce for Scotland
Mr Swinney said: “The Scottish Government, like governments all over the world, is faced with a difficult set of choices. Through this Budget we are facing up to our responsibilities while being honest with the people of Scotland about the challenges which lie ahead.
“To govern is to choose and the Scottish Government has made its choice.
“Within the powers available to us, we will choose a different path. A path which sees the Scottish Government commit substantial resources to protect the most vulnerable people of Scotland from the impact of decisions and policies made by the UK Government. We choose to stand firmly behind the Scottish people, investing in our public services and doing everything possible to ensure that no one is left behind.
“This Budget strengthens the social contract between the Scottish Government and every citizen of Scotland for the wider benefit of society. This social contract means that people in Scotland continue to enjoy many benefits not available throughout the UK – including free prescriptions, free access to higher education and the Scottish Child Payment.
“Because we know this progressive model works, we choose the path where people are asked to pay their fair share, in the knowledge that in so doing they help to create the fairer society in which we all want to live”.
Responding to the Scottish Government Budget, STUC General Secretary Roz Foyer said: “It’s clear that Scotland’s trade union movement has made progress in winning demands from the Scottish Government.
####2Raising taxes on those most able to pay, including second homeowners, are key demands in our ‘Fairer Taxes’ report. We hope reform of the Small Business Bonus Scheme will leave it fairer and less of a drain on public resources and the piloting of scrapping peak rail fares is also a step in the right direction.
“However, we needed strides, not steps. We cannot pretend this is the radical, redistributive budget working people in Scotland needed – it isn’t. We can – and will – demand the government to go much further and deliver the substantial reforms needed to our economy including introducing wealth and further property taxes called for in our report.
“The Finance Secretary has more to do and we welcome his constructive engagement with our movement. This budget leaves the door open for public sector workers to negotiate the inflation level pay rises they so desperately need. We intend to use it.”
Responding to the Scottish Budget delivered by the Deputy First Minister, Dr Liz Cameron CBE, Chief Executive, Scottish Chambers of Commerce, said:“Whilst the backdrop for today’s statement was already set by the Chancellor Jeremy Hunt in the Autumn Statement, today’s Scottish Budget will not bring much Christmas cheer.
“Businesses and households are navigating an extremely challenging period of high energy costs, rising inflation and higher borrowing costs. The specific decision by the Scottish Government to widen the divergence on income tax rates between Scotland and the rest of the UK is exceptionally concerning.
“Many will be left pondering today as to who in the Scottish and UK Governments is standing up for the economy to help businesses survive this crisis and keep people in jobs.”
On taxation:
“The Scottish Government’s move to increase the top and higher rates of income tax will hit taxpayers in Scotland more than other parts of the UK.
“This is a clear disadvantage for Scotland’s businesses and workers and could position Scotland as a less attractive place to live and work. With over 350,000 people alone in the higher rate bracket, questions remain on the impact this will have on talent attraction, retention, consumer confidence and indeed departure of workers to other parts of the UK.
“We urge the Scottish Government to publish its economic modelling of this policy decision, specifically on the proposed impact this could have on future investment decisions by companies.”
On Business Rates:
“As a priority ask from the business community, we welcome the Scottish Government’s decision to freeze the poundage rate and align with the rest of the UK. This will provide relief to ratepayers by reducing the upfront cost burden of non-domestic rates. This was the right decision as is the incentive for businesses to invest in greener plant and machinery which supports net-zero and decarbonisation.
“Looking ahead, businesses need to see widespread reform to the business rates system ensuring it is fit for purpose and aligns with the economic reality that businesses operate in.”
On regulatory legislation:
“The scale of new and incoming regulations are piling additional cost burdens onto firms when they need them least.
“The recent move to delay the short-term lets licensing scheme was welcome and we had hoped for additional signalling from the Deputy First Minister today to delay other burdensome legislation such as the Deposit Return Scheme. This will continue to cause a great deal of frustration for affected sectors and we will therefore continue to represent sector concerns to Scottish Government through the Joint Regulatory Taskforce.”
On Net Zero:
“We welcome the Scottish Government’s intention to accelerate the move to a Net Zero economy. Businesses continue to support this agenda and a clear long-term plan for decarbonisation will support future investment and a just transition.”
Jonathan Carr-West (Chief Executive, Local Government Information Unit Scotland (LGIU) said: “Today’s budget saw Deputy First Minister John Swinney attempting to reach out to local government by promising additional funding and acceding to COSLA’s request to allow councils more freedom over council tax rates.
“Scottish councils will now be poring over the detail to see how much real additional money sits behind the headline of £550 million.
“Moreover, local government in Scotland will still be left wondering how, indeed if, it fits into the Government’s overall vision.
“While Mr Swinney was keen to position his budget in counterpoint to the UK Government, he risks repeating Westminster’s error in protecting the NHS at the expense of local government when we know that the preconditions for good health rely on effective leadership of place and an integration of services that only local democratic institutions can provide.”
The Poverty Alliance says the Scottish Government could do even more to invest in a just and compassionate Scotland:
Tax
Reacting to today’s Scottish Budget announcement, Poverty Alliance Policy and Campaigns Manager Ruth Boyle said: “We welcome the decision to use our tax powers in a progressive way to get more investment for the compassionate Scotland that people want. We hope that this will be the beginning of the Scottish Government’s efforts to use the full range of tax powers at their disposal. In the longer-term, the Scottish Government must reform the basis of our tax system, including implementing the long-awaited reform of council tax, to ensure that our tax system has justice and compassion at its heart.”
Services
“Increased support for the NHS and social care is very much welcomed. However, all of our vital public services are calling out for more investment. This budget raises a number of concerns for the future, and we fear that there will be more cuts to other public services coming down the line. We all rely on these public services, but they are a vital lifeline for people on the lowest incomes.”
Social security
“We are pleased that the Scottish Government have done the right thing and uprated benefits in line with inflation. However, we could go much further. The Finance Secretary stated that a key priority for this budget was tackling child poverty and it is therefore disappointing that the budget failed to uprate the Scottish Child Payment in line with other Scottish benefits. This will mean a real term cut in the value of the payment at a time when families on low incomes need more support to stay afloat. This decision raises particular concern for the poverty of single parents, over 90% of whom are women.”
Transport
“The decision to trial the scrapping of peak rail fares will help people to make ends meet as costs continue to rise. However, evidence shows that people on the lowest incomes are more reliant on buses. There is a need to improve access to affordable transport by extending free bus travel to people on low-income benefits and to those aged under 25.”
The EIS, the country’s largest teaching union, has welcomed the publication of the report Scotland Demands Better: Fairer taxes for a fairer future by the Scottish Trade Unions Congress (STUC).
The report highlights how progressive tax reform could raise an additional £3.3Billion by 2026, including £1.3Billion of tax reforms by April 2023 to help fund public services and public sector pay.
Commenting following the publication of the report, EIS General Secretary Andrea Bradley said, “The EIS welcomes the publication of the STUC report Scotland Demands Better, which represents an important contribution to debates around tax reform and the funding of quality public services.
“The report demonstrates ways in which the Scottish Government could, if it so chooses, engage in progressive reforms to ensure that public services can be properly funded.”
Ms Bradley added, “Scotland’s teachers are currently in dispute over the succession of real-terms pay cuts that have been offered to them this year.
“Since teaching unions submitted their pay claim at the start of the year, a succession of sub-inflationary offers – at 2%, 3.5%, 5% and then 5% again – have been made by the Scottish Government and COSLA, and rejected by Scotland’s teachers.
“With inflation currently sitting at between 11% (CPI) and 14% (RPI), the latest rejected offer would have meant a real-terms pay cut of between 6% and 9% for classroom teachers, and even greater cuts for promoted staff such as headteachers and deputes.”
Ms Bradley added, “Fundamentally, the funding of quality public services and fair pay for public sector workers are a matter of political priorities. Just last week, we saw an Audit Commission report highlighting that the Scottish Government had underspent on last year’s budget by two billion pounds.
“That was a political choice by the Scottish Government, and one that has profound implications for our public services. If the Scottish Government is serious about protecting our public services and valuing public sector workers, they must commit to funding our public services properly and paying our public sector workers fairly.”
Measures announced today will provide further help to those most impacted by the cost of living crisis while tackling budget pressures caused by rising inflation and economic uncertainty.
The Emergency Budget Review (EBR) for 2022-23 identifies funding of around £35 million for a range of initiatives to support people with the increased cost of living, including doubling the Fuel Insecurity Fund, doubling the Scottish Child Bridging Payment to £260 and a new £1.4 million Island Cost Crisis Emergency Fund to help island households manage higher energy costs.
Significant investment in public sector pay deals – delivering higher increases in pay for low earners – is also designed to help families and individuals deal with the cost of living crisis.
Other measures include:
confirming funds to local authorities to support Discretionary Housing Payments
establishing a Joint Taskforce with business, COSLA, local authorities and agencies to consider the differing impacts of regulation on business
extending energy advice to businesses by investing £300,000 to expand the services of Business Energy Scotland, while doubling the value of the SME energy efficiency Loan and Cash Back Scheme for energy efficiency to £20,000
new payment break options to help protect those who have agreed to repay debt through the Debt Arrangement Scheme but face unexpected increases in the cost of living
Additional savings of £615 million have been identified to enable enhanced public sector pay offers to be made while maintaining a route to complying with Ministers’ responsibility to balance the budget. They follow savings of £560 million announced on 7 September.
Deputy First Minister John Swinney said: “There has never been a time of greater pressure on the public finances.
“The Scottish Government’s budget today is worth £1.7 billion less than when it was published last December. At the same time, demand for government support and intervention is understandably increasing while we continue to try to fund increased public sector pay claims, particularly for those on lowest incomes.
“These savings are not ones we would wish to make, but in the absence of additional funding from the UK Government, we are left with no alternative.
“We must balance the books while prioritising funding to help families, back business, provide fair pay awards and to protect the delivery of public services. This Emergency Budget Review delivers on these objectives.”
Responding to the Ministerial Statement: Emergency Budget Review, STUC General Secretary Roz Foyer said: “No-one should underestimate the very serious economic situation in which the Scottish Government finds itself.
“By far the greatest blame lies at the door of the calamitous Tory Government at Westminster. The STUC supports the Scottish Government’s call for the UK Chancellor to get real about the need to increase, not attack, public sector funding, for the full protection of benefits and the mitigation of fuel poverty through windfall taxes.
“However, the Scottish Government’s previous failures are coming back to bite us now. Earlier this year it could have increased taxes on the better off and reformed the flawed Small Business Bonus Scheme, but it chose not to.
“Our members have no choice but to continue to take action to protect workers from the worst of the cost-of-living crisis.
“The Scottish Government’s next budget is critical. Our People’s Plan for Action, supported by the Poverty Alliance and civil society groups across Scotland, will continue to build pressure on the Government to use its tax powers in 2023 to support decent pay, reduce economic inequality and protect our vital public services.”
The Scottish Government has been warned not to ‘abandon’ communities as Scotland’s largest trade union body, equality and anti-poverty organisations launch Scotland’s largest national campaign against the cost-of-living emergency.
Ahead of SNP Conference and as Challenge Poverty Week ends, The Scottish TUC, the Poverty Alliance and groups across the country launched the ‘Scotland Demands Better’ campaign. The campaign outlines the ‘People’s Plan for Action’ demanding nine actions from the Scottish Government to alleviate the crisis.
Demands include increased public sector pay, rent controls, wealth taxes and universal free school meals. The campaign further calls for increased social security payments, doubling the Scottish Child Payment and increasing Carers Allowance payments. The plan follows the STUC and Poverty Alliance joint summit on the cost-of-living crisis earlier this year.
Launching the campaign, STUC General Secretary Roz Foyer and Poverty Alliance Director Peter Kelly have written to the First Minister calling for a joint roundtable meeting to help implement the plan.
Commenting, STUC General Secretary Roz Foyer: “This campaign represents the voices of our communities. Government cannot abandon them in their hour of need and we’re seeking an urgent meeting with the First Minister to directly support workers impacted by this crisis.
“The People’s Plan for Action sets out exactly what we need to see from the Scottish Government. Whilst Westminster remains unwilling and uncaring to help ordinary workers, the Scottish Government must take a different path.
“Increasing public sector pay, accelerating rent controls and implementing wealth taxes gives Scotland’s poorest the lifeline they need to survive this emergency. Poverty and destitution are political choices. Scotland demands better than the devastation and hardship wilfully inflicted upon our most in need.”
Peter Kelly, director of the Poverty Alliance, said: “We want to put justice and compassion back at the heart of public life in Scotland – so we can build support for practical action to tackle poverty.
“With this plan, we can start to rebuild and renew our social security, boost incomes for workers, invest in the public services we all rely on, and give people the urgent help they need with rocketing costs.
“This crisis is a moment for decision for all of us – and especially our politicians. We can create a better Scotland where poverty is a thing of the past.”
To tackle the cost of living for the people of Scotland, we demand the following –
1. A real pay rise for all public service workers
2. A social security system that loosens the grip of poverty
3. Warm homes, through municipal energy companies
4. Sustained action to tackle rent costs
5. Share the wealth, through income, wealth and business taxes
