STUC: WHY SCOTLAND CAN’T AFFORD PRIVATISED SOCIAL CARE
The Scottish Government’s approach to their new National Care Service has been declared “untenable” by Scotland’s largest trade union body.
Launching their report ‘Profiting from care: why Scotland can’t afford privatised social care’, the Scottish TUC (STUC) has accused the Scottish Government of “falling glaringly short” in their plans for a transformative National Care Service.
The trade union organisation, representing unions from across health and social care, is calling for the Scottish care home estate to be transferred out of private ownership in totality.
Research within the STUC report reveals that Scotland’s large private social care providers are associated with lower wages, more complaints about care quality, and higher levels of rent extraction than public and third sector care providers.
Under current Scottish Government plans, the proposed National Care Service would remain “ownership neutral”, embedding a role for the private sector in social care.
The research finds:
• Nearly 25% of care homes run by big private providers had at least one complaint upheld against them in 2019/20, compared to 6% of homes not run for profit.
• In older people’s care homes, staffing resources are 20% worse in the private sector compared to the not-for-profit sector. • Privately owned care homes only spend 58% of their revenue on staffing, compared to 75% in not-for-profit care homes.
• Over the last six years, the public sector has paid on average £1.60 more per hour to care workers.
• The most profitable privately owned care homes take out £13,600 per bed (or £28 of every £100 received in fees) in profits, rent, payments to the directors, and interest payments on loans. This compares to £3.43 in every £100 in fees for the largest not-for-profit care home operators.
The report argues that a truly transformative National Care Service must be based on a not-for-profit public service, delivered through local authorities with an ongoing role for the voluntary sector.
Roz Foyer, STUC General Secretary, said: “Our new STUC research clearly shows that large privately owned care homes perform worse than not-for-profit care homes at almost every level. They are worse for those receiving care, worse for the workers providing care and worse for the taxpayer.
“It simply isn’t the case that Scotland can’t afford to buy out private care homes, we can’t afford not to. As it stands, the Scottish Government are falling glaringly short in offering the transformative shake up to social care Scotland badly needs.
“As the National Care Service Bill makes its way through Parliament, politicians must focus their attention on the kind of organisations we want to provide care for our citizens, not as seems to be the case just now, the centralisation of commissioning and outsourcing procedures.”
The recommendations have been backed by Care Home Relatives Scotland. The influential group, set up during the pandemic, have been working to strengthen relatives rights as a result of care home visitation restrictions during COVID-19.
Catherine Russell, Care Home Relatives Scotland: “This report should be essential summer reading for every member of the Scottish Parliament.
“The research findings endorse everything Care Home Relatives Scotland said in our response to the NCS consultation. Our fear is that millions will be spent on upheaval and reorganisation when the priority must be to focus on improvements and with resources on the frontline where they are desperately needed.
“We also share the STUCs grave concerns about the further marketisation of social care and community health services.
“As the report demonstrates, private homes are not the most cost effective or highest quality. They are extremely costly for residents who need to pay and the profit motive tends to drive down staff conditions.
“Scotland can and should find a better, fairer way to do things and this research will be a very useful contribution to that debate.”
The STUC is standing alongside 125 civil society organisations across Scotland to support the Human Rights Act and oppose the #RightsRemovalBill:
JOINT STATEMENT ON THE UK RIGHTS REMOVAL BILL
Our human rights are about the values we hold dear and the way we treat one another – they are about dignity, fairness, equality, tolerance, and respect. They are the foundations that help us live together freely and fairly – a safety net to protect us all.
We are therefore alarmed that the UK Government has introduced a Bill to Parliament which, if enacted, will repeal the Human Rights Act and will significantly diminish protection for human rights in law.
Our experience of working with individuals and communities across Scotland is that the Human Rights Act 1998 (HRA) is an essential protection for our human rights. Indeed, many of our organisations submitted evidence to the Independent Review of the Human Rights Act detailing the ways in which the HRA is working well. We also collectively gave many hours of our time to respond to the UK Government’s consultation on proposals for this Bill of Rights. However, both the Panel’s recommendations and the consultation responses have been disregarded by the UK Government in the development of this Bill.
We are very concerned that there are many elements to this Bill that will significantly reduce human rights protection. These include, for example, restricting / narrowing our relationship with the European Court of Human Rights, lowering standards of protection, and making it harder for the court to protect us from serious and irreparable harm.
The rights removal bill will undermine all of our human rights and significantly impact the realisation of rights for individuals whose human rights are currently most at risk. The UK Government’s proposals for reform are out of step with political and public opinion in Scotland. There is overwhelming support across Scotland to go forwards and not backwards on human rights, for a strong human rights legal framework and not one that is watered down.
We therefore strongly urge the UK Government to reconsider this Bill and instead, consider what can be done to better protect human rights for all in Scotland, and across the UK.
Public sector workers seem set on a collision course with local and national government over inadequate wage rises …
The General Secretary Designate of teachers union the EIS yesterday urged all of Scotland’s teachers to get active in the campaign to secure a 10% pay rise.
Ms Bradley addressed delegates on the final day of the EIS Annual General Meeting (AGM) at Dundee Caird Hall, and just ahead of a rally in support of the EIS ‘Pay Attention’ Campaign in the Civic Square outside the conference venue.
Addressing the AGM, Ms Bradley said, “The obvious and pressing priority is our Pay Attention campaign. We’ve staked our claim, nailed our colours to the mast … now we need to win.
“Listening to our speakers on the issue of pay over the last few days, I know we’ve got what it takes to win this. To win it because it’s simply unacceptable that teachers and other public sector workers would be expected to bear the burden of yet another crisis that’s been created by the economic vandalism of the Tory government and a Cabinet of millionaires …utterly morally bankrupt and more intent on callous racketeering and profiteering than they are on caring about people and supporting recovery.”
“We can’t allow COSLA to peddle the myth of the One Workforce agenda. Or the Scottish Government to quietly sit there on the side-lines being let off the hook by a raft of egalitarian-sounding rhetoric that’s in truth about pay suppression for teachers and by dint of that the rest of the public sector. We know One Workforce is utter fallacy and I have a sense that the other public sector unions know it as well.”
“If we’re to win a pay rise that protects teachers’ incomes from the worst of the cost of living increases, from every corner of the union, we need to keep building what will be a formidable display of our union strength. We’ve started building this – the press statements, the campaign materials, the branch meetings, the petition, the social media activity, and the demo outside this building later this morning.”
“With full-blown organising, comms and political campaigning… synchronicity of actions with local associations, we’ll be ballot ready, strike ready by October and with a strong industrial action strategy mapped out so that we’re strike ready and strike able.
“From the speeches and applause that we’ve heard this AGM about pay and the other inter-related injustices it sounds like you’re well up for taking this on …and so am I!”
COSLA STATEMENT ON PAY NEGOTIATIONS
COSLA is deeply disappointed that the First Minister and Cabinet Secretary for Finance have refused the request of all Council Leaders to engage in discussions regarding the current settlement for Local Government and its significant impact on our ongoing pay negotiations.
The implications of the Scottish Government’s spending plans for the rest of the parliament are deeply concerning for communities across Scotland and have further increased the already strong likelihood of industrial action in the coming months.
Scottish Government continues to fail to respect the fundamental role Local Government and its workforce has in addressing their own priorities of tackling child poverty, climate change and a stronger economy.
The ‘Resource Spending Review’, published on 31 May, shows that Local Government’s core funding for the next 3 years will remain static at time when inflation and energy costs are soaring.
This “flat-cash” scenario gives no scope to recognising the essential work of our staff, whose expectations, quite rightly, are being influenced by Scottish Government’s decisions in relation to other parts of the public sector. A suggestion that increases in welfare payments will mitigate the cost of living crisis do not recognise that our staff should not have to depend on such payments to make ends meet.
As things stand, the only option available to Councils is yet fewer jobs and cuts to services that are essential to communities everywhere.
COSLA’s Resources Spokesperson Gail Macgregor said: “COSLA, every year, argues for fair funding for Local Government to maintain the essential services our communities rely on.
“No increase in our core funding damages these services and limits the options we have in successfully concluding pay negotiations. Refusal to engage in discussion will only see this continue and our communities will see and feel the difference.”
The Fraser of Allander Institute has recognised the impact on councils: “The local government budget will decline by 7% in real terms between 2022/23 and 2026/27 … the real terms erosion of the funding allocations of local authorities represents the continuation of a longer trend.”
UNISON, Scotland’s largest local government union, will be balloting its members in a dispute over pay. The union is planning targeted strike action – this means select groups of workers will be balloted.
UNISON is campaigning for a pay rise for ALL local government workers.
The groups that will be balloted for strike action are members employed working in schools, who provide services to the running and operation of the school, and all members working in early years and in waste and recycling services. The union is recommending that vote ‘YES’ in favour of strike action.
The ballot will run from 10 June and will close on 26 July. It is vital that all ballots are posted back in good time to ensure we receive them by closing date.
Why are we balloting?
Having consistently worked above and beyond to keep our key services going over the past two years of the pandemic, and with the cost of living spiralling, COSLA’s offer of a 2 per cent pay increase for local government workers is nothing short of an insult.
While politicians have raced to praise your efforts their warm words have not been matched by action.
Earlier this year we ran an online consultation to see what you and other local government members thought of the employers’ 2022 pay offer. It was no surprise that the overwhelming majority of you voted to reject the offer and indicated your willingness to take action to achieve a better deal.
Nothing has changed since then and we now need you to vote YES to take strike action to remind your employers exactly how you feel.
This offer is derisory. It is less than the Scottish Public Sector Pay policy, falls far short of our pay claim and is significantly below current levels of inflation. It will exacerbate the gap between those on the lowest and those on the highest rates of pay.
And it is in sharp contrast to the 5.2% increase that councillors themselves have just received from 1st April 2022.
GMB Scotland has attacked “failure at all levels of government” as an industrial action ballot across local government gets underway this morning (Monday 6 June) against the threats of a 2 per cent pay offer and swingeing cuts to local jobs and services.
Nearly 10,000 GMB members in waste and cleansing and schools and early years services will be asked if they back strikes in the face of a pay offer from employer body COSLA amounting to less than £10 a week for staff earning under £25,000 a year.
Joint trade unions in local government wrote to the First Minister and the Finance Secretary last week seeking urgent talks and warned about the consequences for council workers of significantly below inflation pay with the cost of living at a forty-year high.
The ballot, which runs throughout the summer until Tuesday 26 July, also takes place amid dire forecasts for local government budgets following the Scottish Government’s spending review plans.
GMB Scotland Senior Organiser Keir Greenaway warned: “Council workers and the vital services they deliver are firmly in the sights of Kate Forbes’s cuts agenda, and if left unchallenged the lowest paid will pay the highest price in the biggest cost-of-living crisis for 40 years.
“This is what years of failure at all levels of government looks like – a decade of failed austerity, the passing on of cuts to communities, and a meek acceptance of the consequences locally. It’s a far cry from the doorstep applause of virtue-signalling political leaders just two years ago.
“It shows everyone there are no political superheroes and if you want wages that confront soaring inflation then you need to organise and fight for it.
“That’s exactly what our members are doing and unless an improved pay offer is tabled then industrial action looks inevitable.”
RMT launch 3 days of national strike action across the railway network
Over 50,000 railway workers will walkout as part of 3 days of national strike action later this month, in the biggest dispute on the network since 1989.
The union will shut down the country’s railway network on 21st, 23rd and 25th June, due to the inability of the rail employers to come to a negotiated settlement with RMT.
Network Rail and the train operating companies have subjected their staff to multiyear pay freezes and plan to cut thousands of jobs which will make the railways unsafe.
Despite intense talks with the rail bosses, RMT has not been able to secure a pay proposal nor a guarantee of no compulsory redundancies.
In a separate dispute over pensions and job losses, London Underground RMT members will take strike action on June 21st.
RMT general secretary Mick Lynch said: “Railway workers have been treated appallingly and despite our best efforts in negotiations, the rail industry with the support of the government has failed to take their concerns seriously.
“We have a cost-of-living crisis, and it is unacceptable for railway workers to either lose their jobs or face another year of a pay freeze when inflation is at 11.1pc and rising.
“Our union will now embark on a sustained campaign of industrial action which will shut down the railway system.
“Rail companies are making at least £500m a year in profits, whilst fat cat rail bosses have been paid millions during the Covid-19 pandemic.
“This unfairness is fuelling our members anger and their determination to win a fair settlement.
“RMT is open to meaningful negotiations with rail bosses and ministers, but they will need to come up with new proposals to prevent months of disruption on our railways.”
A snap poll from the Trades Union Congress (TUC) and Opinium showed the cost of living was the top issue for 75% of the Scottish electorate when casting their ballot in May.
This was followed by 60% citing the NHS as their primary concern, with public services (21%), housing (15%), Brexit (20%) and the environment (19%) all taking voter preference over the constitution (14%).
The news was cited as a ‘wake-up call’ from the Scottish Trades Union Congress leader Roz Foyer, who will host a specific cost of living crisis summit on June 17th with the Poverty Alliance.
Ms Foyer said: “These elections should be a wake-up call to all levels of government – local, Scottish and UK – that workers throughout the country need urgent and sustained help in the face of this brutal attack on their living standards.
“By far and away, with 75% of the electorate in Scotland citing the cost of living crisis as their top concern, with health, housing and the environment their taking preference over the constitution, all incoming councillors must make this their most urgent priority.
“Our local government manifesto made clear we need sustained investment from the Scottish Government to local authorities throughout the country, helping to deliver a real terms pay increase for our public sector workers. This is in addition to delivering on rent freezes, settling equal pay disputes and introducing universal free school meals throughout the country.
“This is the type of real terms action we need from councillors and government throughout Scotland. Our movement, with affiliates currently balloting for industrial action across the country, are not standing idle whilst workers face this material threat to their living conditions.”
An ‘ambitious but realistic’ public spending framework has been published which outlines how more than £180 billion will be invested to deliver priorities for Scotland.
The Resource Spending Review, which is not a budget, outlines how the Scottish Government will focus public finances in the coming years to tackle child poverty, address the climate crisis, strengthen the public sector as Scotland recovers from Covid and grow a stronger, fairer and greener economy.
A targeted capital spending review has also been published to address a reduction in capital investment by the UK Government. As well as supporting the NHS and affordable housing, the capital spending review will invest around £18 billion up to 31 March 2026, with over half a billion of additional funding directed to net zero programmes compared to previous plans.
Finance Secretary Kate Forbes said: “We are of course still recovering from the Coronavirus pandemic. There is still acute pressure on the NHS, on business and the wider economy. The illegal Russian invasion of Ukraine is a humanitarian crisis, which is affecting the global economy. Rising energy prices and constrained supply chains have affected countries worldwide. While inflation is also impacting other countries, it is not impacting them equally.
“The UK currently has the highest inflation of any G7 country– almost twice the rate of France. Brexit has made this problem worse, with increases in food prices, hitting the poorest hardest. We are experiencing an unprecedented cost of living crisis. Inflation is at a 40-year high of 9 per cent with households facing considerable hardship.
“Today’s Resource Spending Review is not a Budget. However, it is essential to share high-level financial parameters with public bodies, local government and the third sector, so we can plan ahead together.
“Today I set out an ambitious but realistic public spending framework for the years ahead. It does not ignore the realities of our financial position, but neither does it roll back on our ambitions for change.”
Further changes to Scotland’s fiscal position and to tax and social security forecasts are expected to change the funding picture ahead of annual budgets.
The spending review however does prioritise sending in key policy areas.
These are:
Tackling child poverty and supporting households and businesses with the cost of living
£22.9 billion for social security assistance
increasing the Scottish Child Payment from £10 to £25 and expanding eligibility by the end of this year
providing universal free school meals to primary school children in P1-5 and expanding provision beyond that
uprating devolved benefits
Securing stronger public services
investing £73.1 billion in health and social care including developing a National Care Service
increasing investment in frontline health services by 20 per cent over this Parliament
spending more on primary and community care to ensure people get the right treatment in the right place
funding of £42.5 billion for local government for the delivery of services
investing £11.6 billion in the justice system
Achieving net zero and tackling the climate crisis
up to £75 million per year to deliver the Heat in Building Strategy, enabling £1.8 billion investment towards decarbonisation
up to £95 million towards meeting woodland creation targets
£46 million to introduce the community bus fund and an increase in funding for concessionary travel schemes
investment of over £12 million in peatland restoration
£4 million of resource spending alongside £150 million capital and financial investment for the North East and Moray Just Transition Fund
Building a stronger, fairer and greener economy
capital investment of £581 million to support the economy, including our enterprise agencies and the Scottish National Investment Bank
continuing through the Inward Investment Plan to attract high quality inward investment in areas such as energy transition and the space sector
pushing forward with the export growth plan A Trading Nation to scale up Scotland’s international reach
embedding entrepreneurship in education, to give young people opportunities to start and grow businesses
The spending review provides a platform for engagement ahead of the next budget on how best to reform Scotland’s high performing public sector to become more efficient, to deliver ambitious outcomes. That means rapidly digitalising the public sector, maximising revenue through public sector innovation, reforming the public sector estate and the public body landscape, and improving public procurement.
The annual Medium Term Financial Strategy has also been published to provide the economic and fiscal context for the Resource Spending Review and Capital Spending Review, including the fiscal challenges that lie ahead.
COSLA has stated that the implications of the Scottish Government’s spending plans for the rest of the parliament are deeply concerning for communities across Scotland and fail to recognise the fundamental role Local Government has in addressing the Government’s own priorities of child poverty, climate change and a stronger economy.
The ‘Resource Spending Review’, published on 31 May, shows no prospect of an increase to Local Government’s core funding for the next 3 years, which is especially concerning in the current context of soaring inflation and energy costs.
This “flat-cash” scenario gives extremely limited scope for recognising the essential work of our staff, whose expectations around pay continue to be, quite rightly, influenced by Scottish Government’s decisions in relation to other parts of public sector. Put simply, the plans as they stand will mean fewer jobs and cuts to services. COSLA is seeking an urgent meeting with the First Minister and Cabinet Secretary for Finance to discuss this further.
COSLA’s Resources Spokesperson Gail Macgregor said “Every year at Budget time, COSLA argues for fair funding for Local Government to maintain the essential services our communities rely on.
“No increase in our core funding damages these services and yesterday’s announcement will see this continue for at least the next three years. Our communities are starting to see and feel the difference”
Yesterday, the Fraser of Allander Institute also immediately recognised the impact on councils – “The local government budget will decline by 7% in real terms between 2022/23 and 2026/27…….the real terms erosion of the funding allocations of local authorities represents the continuation of a longer trend”
Commenting on the resource spending review, a spokesperson for the Scottish Children’s Services Coalition commented: “The Scottish Government’s resource review, which highlights a spending gap of around £3.5 billion by 2026/27, points to highly challenging times ahead for our public services (1st June 2022).
“The Fraser of Allander Institute noted that, within this, councils will see real term cuts of 7 per cent between 2022/23 and 2026/27, the implications of which are highly disturbing for those with additional support needs (ASN) who we support.
“Those with ASN make up around a third of our children and young people, including autism, dyslexia and mental health problems, many of whom were already facing considerable barriers to support and not receiving the care they need when they need it.
“While we have witnessed a more than doubling in the number of these individuals over the last decade, putting an immense strain on services, there has been a cut in spending on additional support for learning and a slashing in specialist educational support.
“Covid-19 has had a further major impact, denying care to many, and with these latest swingeing public service cuts we are potentially facing a ‘lost generation’ of vulnerable children and young people.
“We would urge the Scottish Government and newly elected councils to work together to ensure that those children and young people with ASN are made a priority, able to access the necessary support to allow them to reach their full potential.”
The STUC have yet to comment on the Spending Review.
A coalition of trade unions, covid safety groups and the Independent SAGE have launched a new ‘Covid-19 Safety Pledge’, designed to ensure workplaces adopt measures to minimize the spread of COVID-19 infections.
The Pledge, aimed at workplaces in both the public and private sectors, asks employers to sign up to three key commitments: protect workers and customers from Covid-19, risk assess their premises and practices to safeguard against infection and specifically ask any workers who test positive for Covid to stay at home while infectious and to provide the support necessary for them to do so.
Employers who sign up for the scheme will be presented as a covid safe workplace, with their name displayed on the Pledge website (covidpledge.co.uk) in addition to being able to display the Pledge sign within their premises.
The move has been backed by the Scottish Trades Union Congress (STUC) in addition to covid support groups such as Covid Families for Justice and Clinically Vulnerable Families.
The STUC warned that employers in Scotland should not roll back on health and safety and support for staff. Supermarket giant Sainsbury recently introduced a policy that allows staff to attend work if infected with covid and punishes them for covid related absence.
Commenting, STUC General Secretary Roz Foyer said: “It’s vitally important that the legacy of COVID-19 isn’t a rollback on workers’ safety or rights. The Covid-19 Safety Pledge allows employers to stand by their workers, ensuring the highest levels of protection against infection are taken, in addition to supporting staff and consumer wellbeing whilst on their premises.
“For people across Scotland – especially those who are clinically vulnerable – this Pledge can act as a clear indicator of responsibility and support for employers wanting to do right by their staff, customers and service users.
“We are also calling on the Scottish Government to support the pledge. Our joint COVID-19 Fair Work Statement should be updated for the new circumstances but also to continue to commit to the fair treatment of workers and the control of the virus.”
Scotland’s journey to net zero will be amplified thanks to better partnership working between the Scottish Government and trade unions to deliver a just transition.
At the Scottish Trades Union Congress (STUC) in Aberdeen, First Minister Nicola Sturgeon will announce £100,000 in grant funding to support just transition capacity within the trade union movement.
The money will be used by STUC to coordinate worker engagement on just transition, amplify and share best practice and provide policy support.
Unions will continue to be fundamental in delivering a just transition to a net zero and climate resilient Scotland, helping to ensure a low carbon economy prospers in Scotland.
This year’s event marks the 125 years since the first STUC Annual Congress, and the First Minister said the case for a strong union movement never goes away, with addressing inequalities a key priority for the Scottish Government in helping Scotland to recover from COVID-19.
The First Minister said: “We want the trade unions to continue to influence and shape our delivery of a just transition. That’s why I’m glad to be able to confirm today that we are providing the STUC with annual funding of £100,000, to cover STUC staffing costs for officials who can liaise with workers and with government.
“The unions – through the creation of the Just Transition Commission – have already been fundamental to our policy thinking about a just transition. This funding will ensure that they continue to be vital, as we get on with delivering good, green jobs and a truly just transition.
“The Scottish Government economic strategy rests on the idea that by supporting those who are in poverty, by delivering a just transition, by supporting fair work – we can help people to fulfil their potential and to contribute to our economy and our society.
“That’s a principle which I know the STUC is also committed to. It’s why they are valuable partners, and also important sources of challenge, as we work to create a fairer, greener Scotland.”
STUC General Secretary Roz Foyer said: “The trade union movement has been at the forefront of pushing for a just transition, ensuring climate justice is entwined with workers’ voices.
“Our movement, our environment and our planet cannot afford any more false dawns which fail to empower workers and their communities. We’re pleased that the Scottish Government has recognised this.
“This funding, in addition to the work ongoing within the Just Transition Commission, will ensure we hold business, government and all other stakeholders to account.
“We must secure good, green jobs, we must not leave communities abandoned and we must place fair work and workers’ voices at the heart of any just transition.”
A new National Strategy for Economic Transformation, underpinned by detailed analysis of Scotland’s economic strengths and weaknesses, has been published by the Scottish government.
The strategy contains over 70 actions across five key priority programmes that have been identified as having the greatest potential to deliver economic growth that significantly outperforms the last decade within the current constitutional arrangements.
Investment will be prioritised in entrepreneurialism, skills and retraining and the development of new markets and opportunities, particularly in the Just Transition to net zero.
Economy Secretary Kate Forbes says it provides renewed clarity on Scotland’s economic vision and a relentless focus on delivery in order to improve economic productivity, accelerate growth and ensure work provides a genuine route out of poverty through better quality jobs and higher wages.
A sixth programme marks a step-change in the way the Scottish Government and business listen to, support and work with each other in this national endeavour to transform the economy. Shaped by the Advisory Council and extensive engagement with stakeholders, this will enable government, business and key partners to work together to create a more prosperous, more productive and more internationally competitive economy.
The Economy Secretary launched the Strategy at the Michelin Scotland Innovation Parc in Dundee, a location which embodies the potential transformation that can be realised by bringing the six key programmes of action together.
Ms Forbes said: “This strategy intentionally focuses on five key priorities, within Scotland’s current powers, that we believe will deliver most impact. These are based on extensive data analysis which does not ignore the short or long term challenges and seeks to meet them head on.
“It does so by identifying our key strengths as a nation and the economic opportunities with the greatest potential for Scotland. Through our detailed analytical work we have identified significant and targeted action that can shift the dial in these areas, by doubling down on the work that is producing results and by working together to maximise our success.
“We must now be bold, ruthless and laser-focused to maximise the impact of the actions we have identified. We all know the challenges of our day – the short term and the long term – but through the tumultuous times of the past, Scotland has pioneered solutions, created jobs and established highly successful businesses. The opportunities of decarbonisation, new technologies and successful industries are far greater than the challenges.
“This is a unique moment and we are ready, willing and able to lead the way and ensure Scotland capitalises on the opportunity.”
Chief Executive Officer of Entrepreneurial Scotland Sean McGrath said: “This strategy is recognition of not just the importance of starting new businesses, but of building an entrepreneurial mindset across all types of organisations and at all levels.
“It shows a huge belief in the ability of our immensely talented workforce in Scotland. It also calls on everyone who wants to see Scotland succeed to take part. This only works if we all want it to.”
Chief Executive of Energy Transition Zone Ltd Maggie McGinlay said: “I believe energy transition has a key role to play in realising this ambition.
“Scotland has an immediate competitive advantage in that we are blessed with a vast array of natural assets that, if harnessed the right way, means we can become globally recognised for high-value manufacturing, research, development and deployment of offshore wind, green hydrogen and carbon capture and storage.
“The scale of the energy transition opportunity before us is huge and has the potential to contribute significantly to achieving true economic transformation for Scotland.”
Tracy Black, CBI Scotland Director, said:“Business will welcome the ambitions set out in the new ‘Economic Transformation Strategy’ as the right path for Scotland’s future economy.
“The Finance Secretary is also right to recognise the importance of delivery in turning high-level ambition into action – with business playing a vital role as a trusted partner.
“As firms across the country navigate rising living costs, ongoing shortages and spiralling business costs, they will want to see any new initiatives or investments bear fruit sooner rather than later.”
Environmentalists are calling for an urgent and inclusive national debate on economic transformation after the Scottish Government’s new strategy failed to show how it will achieve its own vision of wellbeing and ensuring a just transition to a zero-carbon economy.
The National Strategy for Economic Transformation ‘Delivering Economic Prosperity’ was launched today by the Cabinet Secretary Kate Forbes. She was supported by her Advisory Council which has previously been criticised for its lack of environmental and social justice expertise.
It comes the day after the latest UN IPCC report gave a stark reminder of the urgency of the climate crisis and the need to transform economies away from fossil fuels to avert its worst impacts.
Commenting on the Strategy, Matthew Crighton, Sustainable Economy Adviser at Friends of the Earth Scotland said: “This economic strategy has environmental sustainability and wellbeing in its vision, which is welcome, but there is a lack of concrete ideas as to how its good intentions will be delivered.
“Everyone recognises the need to be greener and fairer but without any realistic plan to achieve these changes they will remain aspirational daydreams.
“To deliver a just transition to zero carbon, the government has to assess and secure the investments needed in each part of our economy. It then needs to set out expectations for job creation and social benefits, how to measure them and who will deliver them.
“Instead, it seems happy just to point the boat forwards and hope that the fickle winds of the market economy will blow it in the right direction.
“The focus on economic growth and entrepreneurship fails to show how this approach can deliver on these wider social and environmental benefits. Instead we have a repeat of lots of the tired old ideas that have helped bring us the current state of inequality, environmental breakdown and economic insecurity.
“The Scottish Government clearly hasn’t understood the roots of these problems nor recognised the mistakes of previous plans. Perhaps this is because it hasn’t spoken to either environmental experts nor to people at the sharp end of our current economic system.”
Ahead of the strategy launch, the ‘Transform Our Economy’ alliance produced Ten Points for a Transformative Economic Strategy against which to judge the Government’s plans. These ideas were backed by 40 academics and outline a new purpose at the heart of our economy: providing wellbeing for all within environmental limits.
Crighton continued: “With our allies in the Transform Our Economy alliance, we prepared Ten Points to judge the new strategy, endorsed by 40 leading academics.
“Sadly the Scottish Government’s document gets poor marks against these, starting well with its overall vision but then failing, in particular on practical things like generating enough of the right investment streams, having clear tests for all finance and integrating new performance measures for decarbonisation and biodiversity into economic decisions.”
The document has also been criticised by the country’s leading trade unionist. Roz Foyer, STUC General Secretary who sat on the advisory group said: “Sadly, this is more a strategy for economic status quo than economic transformation.
“The National Strategy for Economic Transformation has a sprinkling of good ideas and we have successfully argued for some strong lines on the importance of Fair Work, decent pay and the role of trade unions, but overall, it is a missed opportunity to address the challenges before us and make real, transformational change.
“The main engine of the Scottish economy is the foundational economy. Unsurprisingly it is also the biggest employer. It encompasses transport, retail, energy generation, distribution and importantly education and public services.
“So, at the heart of the NSET should have been a strategy to increase pay and improve terms and conditions in these sectors. Investing in public services offers huge opportunity to support sustainable growth while tackling poverty and inequality.
“Over the coming years we face enormous challenges, none greater than the journey to net zero, a journey that must be carefully planned to ensure we create good, secure jobs that do not leave communities abandoned. Whilst the NSET talks about the potential for future development in the renewables and low carbon economy it fails to acknowledge previous failures or, more importantly, how we can learn from them and build a new industrial strategy.
“Scotland is not immune from global economic shocks, or the UK Government’s self-inflicted economic damage. Financialised capitalism embeds structural inequalities as evidenced by the escalating cost-of-living crisis.
“Addressing these structural inequalities is fundamental and it will certainly not be solved by prioritising becoming a ‘magnet for global private capital’ nor through the appointment of a ‘Chief Entrepreneurship Officer.’ Genuinely building new business start-ups is a good idea, flooding the economy with new start-ups, too many of which then fail, is not.
“The public sector has an enormous role to play in our economic transformation yet it is barely mentioned in the Scottish Government’s strategy. Neither is there any mention of tax – which is crucial to tackling inequality and raising revenue.
“Paying lip-service to community wealth building and the desire for a well-being economy will not deliver the change needed. If we are serious about economic transformation the Scottish Government must develop a green industrial strategy and invest in our public sector and the local authorities that make our vital services a reality.
“We will continue to engage with Scottish Government both on taking forward the more positive elements and aspirations of this strategy and to ensure the foundational economy is not left behind in Scotland’s economic future.”
Charter protects rights at work for those facing a terminal illness
The Scottish Fire and Rescue Service (SFRS) has signed up to the Dying to Work Campaign which aims to help employees who become terminally ill at work.
The campaign is managed by the Trades Union Congress (TUC) and employers are encouraged to sign up to a voluntary charter which makes a number of commitments to employees.
Signing the voluntary charter of the Dying to Work Campaign is an employer’s commitment to ensure that all employees who have a terminal illness have adequate employment protection and its aim is to provide financial security at a time when it is most needed.
The signatories on the charter include SFRS, Unison, Unite, the Fire Brigades Union (FBU), the Fire Officers Association (FOA), the Fire Leaders Association (FLA) and the Fire and Rescue Services Association (FRSA).
At SFRS head office in Cambuslang a joint signing ceremony was held on Monday, February 21 which was attended by the following:
Martin Blunden, Chief Officer, SFRS
Kirsty Darwent, Board Chair, SFRS
Liz Barnes, Director of People and Organisational Development. SFRS
Gillian Clark, Human Resources & Organisational Development Manager, SFRS
SFRS Chief Officer Martin Blunden, said: “We support the TUC’s Dying to Work Campaign and in signing the Dying to Work Charter, we show our continued commitment to the welfare of the staff of the Scottish Fire and Rescue Service.
“The health and wellbeing of our staff is a priority and when employees are faced with a serious or terminal illness, it is important that they are able to choose the path that is right for them and their families, without having the additional worry of financial uncertainty.
“We hope that the signing of this charter will provide reassurance to our employees that they have the support of their employer at a time when they need it the most.”
STUC President / Unite Scottish Secretary, Pat Rafferty, said: “The STUC wholeheartedly supports the Dying to Work Charter and we warmly welcome the SFRS showing leadership by committing to it as well.
“It’s vital that organisations and employers support workers who become terminally ill. In these circumstances the worker and their families face huge emotional stress, anxiety, and possible financial worries.
“The Dying to Work Charter can help to alleviate some of these stresses and sets out a progressive way in which workers should be treated, and supported in the event of a terminal diagnosis.
“The Charter is about giving an individual options around how they want to proceed at work. In some cases, an individual will want to continue to work for as long as they can while in other cases a person may decide that they do not want to work anymore, and would rather spend their remaining time with family and friends. Therefore, we thank the SFRS for signing the Charter and allowing workers to exercise choice in the most difficult of circumstances.”
FBU Regional Secretary Ian Sim, said: “The Fire and Rescue Service within Scotland has a proud history of treating terminally ill employees in a sympathetic and dignified manner, I am delighted that SFRS are now also making this public commitment by signing the Dying to Work Charter.
“The Charter provides staff members and their family with peace of mind, financial security and freedom of choice at a time when they are facing the most heart-breaking of circumstances.”
Scottish Representative for the FRSA, David Crawford said: “The FRSA proudly supports the Dying to Work Charter which demonstrates a public commitment to treat terminally ill employees with the necessary support, while showing empathy and sensitivity in what is a very difficult time emotionally and financially for employees and their families.
“We would also wish to thank the SFRS and other stakeholders for signing the Charter, which emphasises the strength of feeling of just how important this matter is to all employees and how it could affect anyone within the organisation.”
National Secretary, Fire Leaders Association, Andrew Hopkinson said: “It is great to see the Scottish Fire and Rescue Service continuing to demonstrate their wholehearted commitment to looking after their employees by publicly signing up to the Dying to Work Charter.
“In doing so, they are joining a growing number of organisations across the UK who have given their staff the comfort of knowing they and their families will be well supported by the Service and treated with the respect and dignity they deserve should they be diagnosed with a terminal illness.”
Glyn Morgan, Strategic Advisor, Fire Officers’ Association said: “Adoption of the Dying to Work Charter is a very positive step for the Scottish Fire and Rescue Service.
“Although it would be hoped that all employers would treat terminally ill employees and their families with compassion that may not always be the case. Signing the Charter is a very welcome commitment to support and assist people whilst alleviating worries about employment matters during very difficult times.”
Gillian Bannatyne, Regional Organiser Unison, said: “It’s a sad truth that people of working age will contract terminal illnesses. If that happens they deserve support from their employer – either to continue working, or spend their remaining time with their loved ones.
“We are absolutely behind SFRS in making this commitment to those workers who find themselves in tragic circumstances, and we would urge other organisations to do the same.”
Crown Estate Scotland has announced the outcome of its application process for ScotWind Leasing, the first Scottish offshore wind leasing round in over a decade and the first ever since the management of offshore wind rights were devolved to Scotland.
The results coming just months after Glasgow hosted the global COP26 climate conference show the huge opportunity that Scotland has to transform its energy market and move towards a net zero economy.
Highlights include:
17 projects have been selected out of a total of 74 applications, and have now been offered option agreements which reserve the rights to specific areas of seabed
A total of just under £700m will be paid by the successful applicants in option fees and passed to the Scottish Government for public spending
The area of seabed covered by the 17 projects is just over 7,000km2 (a maximum of 8,600km2 was made available through the Scottish Government’s Sectoral Marine Plan)
Initial indications suggest a multi-billion pound supply chain investment in Scotland
The potential power generated will provide for the expanding electrification of the Scottish economy as we move to net zero.
The details of the 17 applicants who have been offered option agreements can be found below and in the downloads section.
Map reference
Lead applicant
Option Fees
Technology
Total capacity (MW)
1
BP Alternative Energy Investments
£85,900,000
Fixed
2,907
2
SSE Renewables
£85,900,000
Floating
2,610
3
Falck Renewables
£28,000,000
Floating
1,200
4
Shell New Energies
£86,000,000
Floating
2,000
5
Vattenfall
£20,000,000
Floating
798
6
DEME
£18,700,000
Fixed
1,008
7
DEME
£20,000,000
Floating
1,008
8
Falck Renewables
£25,600,000
Floating
1,000
9
Ocean Winds
£42,900,000
Fixed
1,000
10
Falck Renewables
£13,400,000
Floating
500
11
Scottish Power Renewables
£68,400,000
Floating
3,000
12
BayWa
£33,000,000
Floating
960
13
Offshore Wind Power
£65,700,000
Fixed
2,000
14
Northland Power
£3,900,000
Floating
1,500
15
Magnora
£10,300,000
Mixed
495
16
Northland Power
£16,100,000
Fixed
840
17
Scottish Power Renewables
£75,400,000
Fixed
2,000
Totals
£699,200,000
24,826
Simon Hodge, Chief Executive of Crown Estate Scotland, said: “Today’s results are a fantastic vote of confidence in Scotland’s ability to transform our energy sector. Just a couple of months after hosting COP26, we’ve now taken a major step towards powering our future economy with renewable electricity.
“In addition to the environmental benefits, this also represents a major investment in the Scottish economy, with around £700m being delivered straight into the public finances and billions of pounds worth of supply chain commitments.
“The variety and scale of the projects that will progress onto the next stages shows both the remarkable progress of the offshore wind sector, and a clear sign that Scotland is set to be a major hub for the further development of this technology in the years to come.”
Should any application not progress to signing a full agreement, the next highest scoring application will instead be offered an option.
Once these agreements are officially signed, the details of the supply chain commitments made by the applicants as part of their Supply Chain Development Statements will be published.
This is just the first stage of the long process these projects will have to go through before we see turbines going into the water, as the projects evolve through consenting, financing, and planning stages.
Responsibility for these stages does not sit with Crown Estate Scotland, and projects will only progress to a full seabed lease once all these various planning stages have been completed.
First Minister Nicola Sturgeon has welcomed the “truly historic” opportunity for Scotland’s net zero economy, as the winners of the ScotWind offshore wind leasing auction were announced by Crown Estate Scotland yesterday.
17 projects, with a combined potential generating capacity of 25GW, have been offered the rights to specific areas of the seabed for the development of offshore wind power – with developers giving commitments to invest in the Scottish supply chain, providing opportunities for high quality green jobs for decades to come.
The projects are expected to secure at least £1bn in supply chain investment for every 1GW of capacity proposed. They will also generate around £700 million in revenue for the Scottish Government and represent the world’s first commercial scale opportunity for floating offshore wind.
As well as helping complete Scotland’s own journey to net zero, creating thousands of jobs in the process, our offshore wind resource also has the potential to position Scotland as a major exporter of renewable energy, including green hydrogen.
First Minister Nicola Sturgeon said: ““The scale of opportunity here is truly historic. ScotWind puts Scotland at the forefront of the global development of offshore wind, represents a massive step forward in our transition to net zero, and will help deliver the supply chain investments and high quality jobs that will make the climate transition a fair one.
“It allows us to make huge progress in decarbonising our energy supply – vital if we are to reduce Scotland’s emissions – while securing investment in the Scottish supply chain of at least £1 billion for every gigawatt of power.
This will be transformational. And because Scotland’s workers are superbly placed with transferable skills to capitalise on the transition to new energy sources, we have every reason to be optimistic about the number of jobs that can be created.
“That means, for example, that people working right now in the oil and gas sector in the North East of Scotland can be confident of opportunities for their future. The spread of projects across our waters promises economic benefits for communities the length and breadth of the country, ensuring Scotland benefits directly from the revolution in energy generation that is coming.
“The scale of opportunity represented in today’s announcement exceeds our current planning assumption of 10GW of offshore wind – which is a massive vote of confidence in Scotland. So we will now embark on the rigorous consenting process required to make sure we can maximise the potential that clearly exists in offshore wind while also ensuring that the impacts of large scale development – including on other marine users and the wider natural environment – are properly understood and addressed.
“While it is not yet possible to say with certainty what the scale of development will ultimately be, there is no doubt that the scale of this opportunity is transformational – both for our environment and the economy.”
The Falck Renewables and BlueFloat Energy partnership taking part in the current ScotWind offshore wind leasing round is celebrating the success of three of its bids to secure seabed leases for sites which lend themselves to the deployment of large-scale floating wind technology in Scotland.
Two of the partnership’s proposed projects – a site east of Aberdeen in Plan Option E1 and a site north of Fraserburgh in Plan Option NE6 have been granted leases from Crown Estate Scotland – along with a proposed site east of Caithness in Plan Option NE3 which will be developed by a consortium of Falck Renewables, BlueFloat Energy and Ørsted.
The three areas could accommodate a total of approximately 3.0 GW of offshore wind capacity with the projects scheduled to be operational by the end of the decade, subject to securing consent, commercial arrangements and grid connections.
The successful bids combined BlueFloat Energy’s knowledge and experience in developing, financing and executing offshore wind projects with Falck Renewables’ strong track record of global project development and over 15 years of community engagement in Scotland.
Carlos Martin, CEO of BlueFloat Energy, said: “The Scottish coastline is ideal for developing offshore wind projects and our team is thrilled to be given the opportunity to deploy our expertise to deliver these projects in Scotland.
“The potential for boosting the economy and reinforcing Scotland’s position at the forefront of the energy transition is huge. We have already carried out extensive work on mapping out the Scottish supply chain and now look forward to ensuring we work with as many local companies as possible.”
Toni Volpe, CEO of Falck Renewables, said: “We are delighted that our applications have won the support of Crown Estate Scotland and that our offshore wind projects will be making a considerable contribution to providing Scotland with clean energy.
“Falck Renewables has a worldwide renewables portfolio and with our growth strategy we are on track to facilitate the global transition to a low carbon future.”
Richard Dibley, Managing Director of Falck Renewables Wind Ltd, said: “We are hugely excited about the positive impact these projects will have on the whole of Scotland in terms of creating jobs, economic benefit and helping to achieve a net zero future.
“Over the past 15 years we have seen communities empowered with the help of the financial support they have received from our onshore wind farms and we look forward to sharing the benefits of offshore wind with local communities.”
The Falck Renewables, BlueFloat Energy, Ørsted consortium has already begun work with community ownership experts Energy4All on a new framework which will allow residents of Scotland and Scottish communities to share the financial benefits of the offshore wind energy projects the consortium plans to build in the future.
As part of the preparatory work to deliver the offshore wind projects the consortium will collaborate with Energy Skills Partnership Scotland (ESP) to help train up a skilled workforce in time for construction to begin.
Research will also be carried out with the Scottish Association for Marine Science (SAMS) to investigate the potential effects of floating offshore wind developments on the marine environment. Projects under discussion will examine how fishing interests and offshore wind can work together and study the interaction of fish, marine mammals and seabirds with floating offshore wind farms.
Energy4All is a non-profit distributing co-operative social enterprise formed by the Baywind Energy Co-operative in 2002 to enable more communities to own and operate renewable energy projects.
Marna McMillin, Chief Executive of Energy4All, said: “Climate breakdown is the key environmental challenge facing our society. If we are to successfully decarbonize our economy, we must rapidly replace polluting fossil fuels with clean power. This requires us to generate much more zero carbon electricity to heat our homes and power our vehicles.
“We need the public to support those changes, and we believe one of the best ways of ensuring that support is to allow individuals to have a share in those projects.
“Falck Renewables has a 15-year track record of working with Energy4All having successfully set up seven co-operatives at its Scottish onshore wind farms, enabling thousands of people to buy a stake in their local wind farm.
“We think partnerships of this sort could be a model for other offshore projects in both the UK and the rest of Europe.”
Reacting to the outcome of the application process for ScotWind leasing by Crown Estate Scotland, the ALBA Party Depute Leader and MP for East Lothian Kenny MacAskill MP said:“This offshore wind giveaway is selling the family silver cheap while Scots families face crippling energy bills this April.
“Those who don’t learn from history are destined to repeat it. It looks like the Scottish Government have surrendered vast chunks of the North Sea wind resource for a relative pittance just as Westminster gave away Scotland’s oil in the 1970s.
“Instead of a one off payment of under £700 million there should be annual payments. Instead of Scottish resources being just handed over to international investment companies there should be a public stake in every single field.
“One has to question the basic competence of Crown Estate Scotland. They think they have auctioned away 10-12 GW of power. Informed industry estimates are the real capacity from this round alone is double that.
“Offshore wind is fast becoming the most lucrative major power source on the planet. Scotland has one quarter of the resource of Europe. It will be cold comfort to Scottish pensioners shivering in their homes facing vast fuel bills to know that the Scottish Government have given away so much of the green power of the future for so little in return.”
The STUC says that the announcement must mark the end of broken promises to Scottish workers and presage the start of a long overdue renewables jobs revolution.
Oil giants Shell and BP, alongside Scottish and Southern Energy, Scottish Power Renewables, and a number of multinational companies have all won leases to develop offshore wind farms off Scotland’s coast.
Following campaigns from trade unions in the wake of failures to secure meaningful fabrication contracts at BiFab, the ScotWind leasing round included requirements on companies to make supply chain commitments, with many bidders making public statements promising major investments in job creation. However, these statements have not yet been published and in any case they do not require a specific proportion of work to be undertaken locally.
The STUC continues to be concerned that so few successful bids are from domestic companies, with previous experience showing that multinational companies regularly offshore work to Europe and the Far East.
The STUC is calling for the Scottish Government to call a summit of successful developers to secure ongoing commitments to cooperate on delivery and work with unions and government to make the green jobs revolution a reality.
STUC General Secretary Roz Foyer said: “Over the past six months the public relations teams of the prospective bidders have been in overdrive, promising the long overdue renewables jobs revolution. Now we need to make that happen.
“The First Minister says that we have every reason to be optimistic about the number of jobs that can be created, but our skills workers in oil and gas need more than words given the experience over the past decade tells us that jobs in offshore wind are consistently offshored overseas.
“With over 1000 massive turbines to become operational over the next decade, it would be nothing short of economic vandalism if we fail to build a thriving supply chain in Scotland. Fundamental to that is building the infrastructure to enable large scale fabrication in Scottish yards, requiring local content from developers, and addressing questions of ownership through the development of a Scottish National Infrastructure company.
“Unions will work proactively and positively with employers and business to deliver the Fair Work future our workers deserve, but we will also campaign vigorously to ensure that promises are kept.”
The 2022-2023 Scottish Budget will help transition Scotland to becoming more prosperous, fairer and greener, Finance Secretary Kate Forbes has said.
Speaking ahead of delivering the Budget to Parliament today, Ms Forbes said the Scottish Government will deliver a bold and ambitious package of public investment that delivers on the priorities which matter most to the people of Scotland.
Ms Forbes said: “The Scottish Budget will provide taxpayers with stability and support, set out clearly how we will accelerate our Covid recovery, and crucially, how our spending plans will set Scotland on a new ambitious path.
“It has been a challenging Budget due to the continuing impact of the pandemic, and the uncertainty and worry that Covid poses for us all. This has been confounded by the UK Government’s decision to remove necessary Covid consequential funding at a time when we undeniably need to help our public services.
“The Scottish Government has taken spending decisions that prioritise supporting people and our vital public services through the twin crises of Covid and the cost of living. It is a budget for Scotland’s future – one that will help us secure a fairer, greener and more prosperous country.”
Responding to the Scottish Budget, Tracy Black, CBI Scotland Director, said:“While the Finance Secretary has outlined some helpful interventions for business, firms that have been working tirelessly to get back on their feet after two miserable years will be left with little to get excited about.
“The removal of the business rates cliff edge in April for hospitality, retail and tourism firms will be welcomed, however many will be disappointed that the government hasn’t gone further – particularly as uncertainty around Omicron gathers pace.
“Increased funding for employability is clearly a step in the right direction but much more detail is needed on how skills funding will help firms address immediate challenges. Ultimately, greater ambition is needed on upskilling and retraining if we’re to ensure workers are equipped with the skills they need for a modern economy.
“On green investment there were some welcome announcements around green jobs and just transition. However, failing to use the non-domestic rates system to incentivise private sector investment in low carbon infrastructure feels like a missed opportunity that could have helped Scotland push-on towards its net zero target.
“Overall, business shares the Scottish Government’s vision for a fairer, greener and more prosperous economy. Firms will be keen to see how the forthcoming National Economic Transformation Strategy turns ambition into action; setting Scotland on a path towards competitiveness, dynamism and productivity growth – which is the only sustainable route to higher living standards.”
Scottish workers bitterly disappointed by pay deal as STUC insists ‘budget will result in robbing Peter to pay Paul’
The Scottish Trades Union Congress (STUC) acknowledged the increase in public sector pay floor to £10.50 and insisted that pay rises must be fully funded by Scottish Government to avoid cash strapped councils having to make other cuts to pay the increased rate.
STUC General Secretary Roz Foyer said: “Workers across Scotland will be bitterly disappointed as they hear about the pay cuts announced today. Below inflation pay increases do nothing to help people deal with escalating costs this winter. Councils will have to rob Peter to pay Paul as services could be cut to meet the gaps in funding.
“There is a desperate need to back our public services. Huge gaps in funding in the NHS and social care have left some of the most vulnerable people in our communities without the treatment and services they urgently need. The Scottish Government have failed to take the opportunity before them to step up and back public sector workers.”
COSLA released its ‘Budget Reality’ document last night in response to the Scottish Budget.
COSLA’s Resources Spokesperson Councillor Gail Macgregor said that COSLA Leaders will meet today to discuss the implications for Local Government and respond more fully then.
In a brief statement Councillor Macgregor, said: “Our ‘Budget Reality’ document is important as it sets out the facts about the Local Government Settlement.
“It appears to be a disappointing budget for the communities that we represent, as it does not give Local Government what we need to survive and nor does it meet our campaign aspiration to help those communities to ‘Live Well Locally’,
“Once more, our core financial settlement has been hit.
“That said, we will take time to consider the finer details of today’s announcement and the full implications for both ourselves and our communities.
“As a membership organisation, our Council Leaders will come together virtually tomorrow to consider the implications, before we make a more formal response following that meeting.”
Responding to the Scottish Government’s budget, which was published today, Peter Kelly (Director, Poverty Alliance), said: “Today’s Scottish Government budget contains a number of welcome commitments.
“Doubling the Scottish Child Payment from April, as we and so many others across Scotland campaigned hard for, will help stem the rising tide of poverty across the country. Introducing free bus travel for young people under 22 is also a positive step toward a transport system that can tackle inequality.
“But with over one million people in Scotland living in the grip of poverty, it is clear that we cannot let up. In 2022 we must see these actions built upon, with further steps taken to build a Scottish social security system that unlocks people from poverty.
“We must also go further in redesigning our public services, like by extending free bus travel available to all under 25s and to everyone on low incomes.”
Scottish debt help charity welcomes the doubling of the Scottish Child Payment in the Scottish Budget
Child poverty is rising in every local authority in Scotland. Even before the pandemic, one in four children in Scotland were growing up in poverty and food bank use has increased by 63% over the last five years.
The pandemic has made things even more difficult for those already struggling as it has disproportionately impacted people living on low incomes.
CAP Scotland National Director, Emma Jackson, says, “We are delighted to hear about the Scottish Government’s commitment to double the Scottish Child Payment for families with children under the age of six.
“This is the single most impactful action that will take us four percentage points closer to reaching our interim child poverty targets and signals that ending child poverty will be a defining priority for Scotland. It is encouraging to see Scotland leading the way with this unique payment for families.
“This additional income will make a significant difference for the families we work with at Christians Against Poverty (CAP) Scotland. Families like Holly’s, who experienced problem debt after an overnight reduction in hours at work. Coupled with ill health and the challenges of being a single parent, debt began to deeply impact all aspects of Holly’s life.
“Through working with CAP Scotland, Holly was able to access the right debt solution for her and begin a debt free fresh start. The additional £40 per month will mean not having to worry as much about keeping her home warm for her and her son or buying him more food.
“Yet the very real challenges of making a low income stretch far enough to meet essential living costs remains. We welcome the news of free bus travel for those under the age of 22, the extension of free school meals to older age groups and the accelerated roll out of the Scottish Child Payment to include all children under the age of 16 by the end of next year. However, we would urge the Scottish Government to do all it can to bring the roll out of the Scottish Child Payment forward.
“With the rising cost of living and the end to the Universal Credit uplift, many families are facing a significant struggle this winter. We’re concerned that even more people will be pushed into poverty. We are keen to hold the Scottish Government to their commitment that “we can’t leave anyone behind”.
“The announcements in today’s budget leave a risk that key groups could experience further hardship. For too many households we work with at CAP, like single adult households, there is insufficient income to cover everyday essentials – rent, food, fuel, toiletries – and borrowing money is often a necessity to survive. No one should be forced into problem debt in order to survive.”
The Scottish budget 2022-23 includes £150 million for walking, wheeling and cycling, an increase of £19.6m.
Living Streets Scotland, part of the UK charity for everyday walking has welcomed the significant funding and the impact it will have to make cleaner and healthier forms of transport.
Stuart Hay, Director, Living Streets Scotland said: “Today marks a fundamental and positive change in how transport is funded with a much greater focus on people walking, wheeling and cycling.
“Walking accounts for 22% of all trips, so it’s great to see spending levels reflecting this reality, switching from a focus on new road schemes that have resulted in congestion and emissions.
“The £150 million investment will make it easier, safer and more attractive for more people to choose cleaner ways to travel. This is vital in the face of a climate emergency and a crisis in public health brought about by inactivity.
“This level of investment means new projects, such as national action to get more children walking to school are possible. It also makes plans to cut traffic on Scotland’s roads and streets by 20% more realistic.”
Responding to the Scottish Government’s Budget for 2022-23, Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce said:“Scotland’s economy is recovering from the COVID-19 pandemic faster and stronger than many expected, and this budget offered the Scottish Government an opportunity to accelerate this return to growth.
“Whilst there was much to welcome in this budget the Scottish Government should have gone further to support Scotland’s businesses, the drivers of economic growth.
“Many economic deterrents as a result of the pandemic remain in place, impacting on footfall on our town and city centre high streets, driving down demand in our vital tourism and aviation sectors, and the looming threat of a return to greater level of restrictions is holding back investment. The Scottish Government should have provided assurances for businesses that targeted financial support will be made available to those ongoing affected sectors to deliver a clear pathway to recovery.”
On Non-Domestic Rates:
“Businesses will welcome the extension of rates reliefs afforded to properties in the retail, leisure, and hospitality sectors for an additional three months, however, this should have gone further to give businesses the time they need to recover from this incredibly challenging period.
“Scotland’s town and city centres have already lost thousands of businesses over the past twenty months and prolonged periods of home working have made the trading conditions for brick-and-mortar retailers tougher than ever, and many ratepayers will question if this extension goes far enough to support them.
“It was also disappointing that the Scottish Budget failed to confirm whether or not the long awaited NDR Revaluation due to take place in 2023 will go ahead as planned.”
Training, Skills and Supply Chain:
“Scotland’s businesses are still experiencing challenges through supply chain connectivity problems, rising cost prices, inflationary pressures, and recruitment difficulties.
“Additional funding for training interventions at all levels is welcome news and investment in Scotland’s workforce drive up business capacity and improve investment opportunities.
“Cost pressures and supply chain challenges require urgent action from government and whilst we await further details in the forthcoming National Economic Transformation Strategy, it’s important Scottish Government act now, collaborate with business and begin to resolve these issues as a priority for our economy.”
Energy and Just Transition:
“The energy sector remains a critical part of Scotland’s economy and the funding commitments in the budget to support a Just Transition are a step in the right direction.
“To meet Scotland’s Net Zero ambitions and secure the future of jobs in the energy sector and North and North-East though, this investment and funding needs to continue to be stepped up, at pace, in partnership with industry to enable businesses to pivot successfully.”
