Scottish Budget: Protecting our recovery and renewal?

Significant new investment to drive economic recovery, bolster public services and support families underpins the Scottish Government’s spending and taxation plans for the coming year.

Presenting the Scottish Budget 2021-22 yesterday, Finance Secretary Kate Forbes announced support for jobs and skills totalling around £1.1 billion.

Job creation is a priority, with measures including a commitment to launch a new Green Workforce Academy to help people secure work in the low carbon economy, a £100 million Green Jobs Fund over the next parliament,  £7 million towards making Scotland a world class hub for digital business and an additional £125 million for the Young Person’s Guarantee, employability and skills.

Health receives record funding of over £16 billion, an increase of 5.3% on 2020-21, along with a further £869 million to continue tackling coronavirus (COVID-19), including funding for the vaccination and test and trace programmes. This means that, over the course of this parliament, investment in health has increased by £1.8 billion in real terms – more than tripling the commitment to increase health funding by £500 million more than inflation.

To support family budgets, £90 million is being made available for local authorities to freeze council tax.

Public sector workers earning up to £25,000 can receive at least a 3% pay increase via a £750 cash underpin, while there is a 1% rise for those earning above that amount, capped at £800 above £80,000.

The budget also proposes:

  • £11.6 billion for local government, which represents a £335.6 million increase in core revenue funding, including the £90 million to compensate local authorities which choose to freeze Council Tax, plus £259 million in one-off funding
  • £1.9 billion for primary health care to help deliver more services in the community. A further £550 million is earmarked to build new Elective Care Centres and the Baird Family Hospital and Anchor Centre in Aberdeen
  • £98.2 million to improve Scotland’s digital infrastructure and deliver access to high quality broadband and mobile coverage.
  • £711.6 million for affordable housing and £68 million for the first full year of the Scottish Child Payment, tackling child poverty
  • a new £55 million programme to support town centres and community-led regeneration projects
  • more than £3.1 billion in resource and capital investment for education and skills, and £567 million to provide 1,140 hours of early learning and childcare, supporting implementation of the UK’s most ambitious childcare programme
  • £1.3 billion for the Scottish Police Authority, including a £60 million increase in Police Scotland’s revenue budget – exceeding an earlier pledge of a £100 million boost over five years
  • £1.6 billion for rail and bus services and £100.5 million for active travel to consolidate changes to healthy, green travel options seen during the pandemic
  • doubling the Rural Tourism Infrastructure Fund, helping tourist attractions and local communities make improvements to cope with increased visitors
  • an additional £27 million to expand woodland creation and the associated infrastructure, supporting green jobs

Business support remains a priority and the Finance Secretary confirmed that the Local Authority Discretionary Fund will be doubled to £60 million in this financial year to allow councils to respond to local needs. In addition, businesses eligible for the Strategic Framework Business Fund will receive full Level 4 payments on 22 February, regardless of any future changes to local restrictions.

The Scottish Government will also increase a scheme which compensates councils for the loss of income from sales, fees and charges due to the pandemic from £90 million to £200 million in 2020-21. 

Ms Forbes said: “This budget is being delivered in exceptional circumstances as we continue to battle a pandemic that has shaken our society and economy to the core, and as we face the harmful impacts of Brexit.

“It promotes innovation and reform, new beginnings, new directions. And while it continues to target support in the immediate term, it also tracks a course over the next year to build a fairer, stronger and greener country.

“To help drive our green economic recovery I am providing the stability and certainty that businesses have asked for through the most competitive reliefs packages in the UK. There are innovative measures to promote sustainable growth and we are investing more than £1 billion in jobs and training.

“The budget sets out a distinctive Scottish pay policy that again supports the lowest paid, charting a different course to the ill-judged pay freeze announced by the UK Government. It also bolsters our health service, delivers more affordable homes, provides additional childcare places and helps young people into work.

“Throughout these dark times we have never given up hope. This budget seeks to build on that hope and, by focusing on how we rebuild and renew our country, make the light at the end of the tunnel shine that bit brighter.”

The STUC has expressed its disappointment at what effectively amounts to a real-terms pay freeze for thousands of public sector workers as the Budget offers 1% for those earning pay above £25,000 per year including most teaching staff, firefighter and civil servants.

The STUC General Secretary, Roz Foyer pointed to the real terms increase in the Scottish Budget of nearly 4% and contrasted that with today’s pay offer.

“Whilst it is right and proper that the pay of low paid workers should be underpinned, for most workers this increase is still below the budget uplift received by Holyrood from Westminster. Far too many of our key workers have been left out in the cold.

While supporting Scottish Government calls for greater borrowing powers, Foyer also questioned whether tax cuts for high earners were the right priority and whether funding for Local Government was sufficient.

“We strongly support the Scottish Government’s calls for greater borrowing powers. However, the Cabinet Secretary has managed to find wiggle room to provide £125 million in blanket tax cuts. She has also reduced income taxes for high earners – a policy that raised £51 million last year. Given this, it is deeply disappointing that she hasn’t been able to better reward key workers.

“While the Cabinet Secretary spoke about an increase in funding for Local Government, it appears this amounts to less than a 1% increase, a level that is nowhere near sufficient to cover gaping cuts to services from years of austerity.”

Responding to the Budget announcement, Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce, said: “The position of Scottish businesses has never been so precarious. The Scottish Government’s announcements today are welcome but do not go nearly as far enough to avoid risk of widespread business collapse and job losses.

“Yes, there is light at the end of the tunnel with the vaccination programme but restrictions to prevent the spread of the virus have been devastating. We understand that the Cabinet Secretary for Finance faces difficult choices in setting the budget particularly ahead of that of the UK, in a time when the country faces extraordinary challenges.

“Business will be disappointed that further details on an economic route map on how we will exit this crisis aligned with the roll out of the vaccine were not provided today. This is a critical component if businesses are to unleash the investment our country so desperately needs.”

On Non-Domestic Rates:

“The Cabinet Secretary has listened to us and has delivered a reduction in the Non-Domestic Rate (NDR) poundage rate. However, longer-term, we believe the system is unfair and needs significant reform.

“Plans for a three months extension of rates relief is a too short a reprieve. We need commitment to a 12-month reliefs package to provide the certainty business needs. Clearly there is more to do, and we await further announcements from the Chancellor to see what further support can be made available and expect Scottish Government to pass on the equivalent consequential funding to businesses.”

On Business Support:

“The doubling of the discretionary fund is good news particularly for those businesses who have fallen through the gaps of other support packages. However, it is imperative that the process for businesses is clear, transparent and quick across all local authorities to ensure funding is available for businesses quickly and immediately.

“Now is the time to pull out the stops and redouble efforts to ensure business support comes through. We need to see a significant ramping up to get those funds that have been promised out the door and to businesses.”

On Infrastructure:

“The Scottish Government’s commitment to infrastructure investment is absolutely necessary for Scotland and the UK to be in a position to build back better and meet net zero ambitions. Now is the time for a vision driven by ambition and a willingness to collaborate like never before. This must be put first and foremost ahead of any political point scoring this year.”

On skills and training:

“SCC welcomes these important steps to support jobs, employment and training. We called for training academies and we are pleased to see the Cabinet Secretary has acted on our recommendations, particularly the focus on green jobs. It is now critical that the government and academia works in partnership with the private sector to ensure benefits are fully realised.”

On Protecting Jobs:

“We maintain our call to the Chancellor of the Exchequer to extend the furlough scheme beyond April 2021 and outline further initiatives to protect business and jobs at the UK Budget in March.”

On mental health support:

“Business will welcome this as we understand the toll the pandemic has taken on our customers, employees and communities.

“Recovery of our wellbeing is just as important as economic recovery, with many employers investing in their own employee support programmes. This commitment from the Scottish Government will enhance these efforts.”

Responding to Kate Forbes’ announcement that public sector workers on salaries up to £25,000 a year will receive a 3 per cent increase, GMB Scotland Senior Organiser Drew Duffy said: “This will be met with fury among the lowest paid in Scotland’s public sector.

“Kate Forbes was among the many politicians applauding our frontline heroes, now she is saying ‘thank you’ with a rise that won’t amount to more than a tenner a week for most.

“There is no value here, and it’s an insulting response from the Scottish Government to the ongoing struggles of our key workers in this pandemic.”

Tracy Black, CBI Scotland Director, said: “The Finance Secretary is right to put business support and economic recovery front and centre of this year’s draft Budget. With jobs, firms and livelihoods still hanging by a thread, Scotland can’t afford to wait until the pandemic is over before initiating plans for a sustained recovery.

“Health must come first and lowering transmission rates remains the priority. Yet with so many struggling companies across Scotland, it’s only right that proper consideration is given to reopening the economy when it is safe to do so. This should be driven by data and done in dialogue with business.  

“The private sector is critical to a successful recovery and moves to protect firms’ immediate futures are welcome. Continuing rates reliefs for the hard-hit hospitality, retail and tourism sectors is welcome, however a three-month window remains a challenging timetable for firms under real pressure. Companies will also be relieved to see a continued commitment to Covid business support and no further changes on income tax.

“The UK and Scottish governments must now work together to provide certainty over business support, ensuring that the firms we need to drive economic recovery survive the tough weeks and months ahead.

“Longer term, the figures from the Scottish Fiscal Commission paint a worrying picture and highlight the scale of the challenge ahead. Maintaining a laser focus on boosting productivity and protecting competitiveness are key.”

Responding to the Scottish Government’s Budget statement delivered today by Finance Secretary Kate Forbes MSP, Director of CAMRA Scotland Joe Crawford said: “Extending the business rates holiday for pubs and social clubs for a further three months into the next financial year is a desperately-needed lifeline for pubs who have struggled for almost a year now. 

“But three months won’t be enough. CAMRA will be joining the Scottish Government in calling on the Chancellor to use his Budget on 3rd March to give the Scottish Government enough money to extend this Business Rates holiday for the entire 2021/22 financial year. 

“Pub-goers and licensees will now want to see the Scottish and UK Governments work together to make sure pubs and breweries get enough long-term financial support to thrive when they can reopen. This must include grants, furlough support as long as there are restrictions on trading, extending the VAT cut on beer to help pubs that don’t serve food, and cutting tax on beer served in pubs to help them compete with supermarket booze. 

“Pubs and social clubs are a force for good in our communities, bringing people together and tackling loneliness and social isolation. They will be a crucial part of our national healing process after COVID and deserve to be supported until they can trade again.” 

SLTA Managing Director, Colin Wilkinson said: “The Scottish Licensed Trade Association welcomes today’s announcement by Finance Secretary Kate Forbes that the Scottish Government will extend 100% non-domestic rates relief for retail, hospitality and leisure for at least the first three months of the new financial year.   However, it doesn’t go far enough. 

“Today’s announcement is good news, as is the promise of further ongoing business support and it gives us a much-needed stay of execution. The reduction in the poundage rate, from 49.8 pence to 49 pence, is also very welcomed.

“Further support from the Westminster Government is crucial and our hope is that UK Chancellor, Rishi Sunak, steps up to the mark by extending the current furlough scheme,  committing to retain the Commercial Rates Relief and the temporary 5% reduced rate of VAT for hospitality beyond March 31 and well in to 2022.

“Our sector is battered and bruised and the sooner both the Scottish and UK Governments can provide clarity on support and an indication of an exit strategy out of this pandemic the better.”

Chief Constable Iain Livingstone has welcomed the Scottish Government’s Budget announcement. 

Mr Livingstone said: “I welcome the announcement to eliminate the structural deficit in policing’s funding.

“The reform of policing in Scotland has brought many benefits to all communities across the country, while £200m has been returned to the public purse every year compared to legacy arrangements.

“The last 12 months have demonstrated the relentless nature of policing. Our mission to prevent harm, support communities and keep people safe has been evident throughout the pandemic.

“We will continue to enhance capacity and capability to protect the people of Scotland in the public, private and virtual spaces.

“Responsive and accessible local policing is deeply valued by our fellow citizens and will always lie at the heart of Police Scotland’s purpose and approach.”

The Scottish Budget 2021-22 document is available online.

Full details of the budget are available at www.gov.scot/budget

Lockdown restrictions strengthened

Further measures to help stop the spread of coronavirus (COVID-19) and limit non-essential contact will be introduced this weekend.

Nobody who lives in a Level 4 area should leave or remain outside their home except for essential purposes.

Working from home arrangements will be strengthened through updated statutory guidance. Working from home should now be the default position for all businesses and services, and only those who cannot do their job from home should be asked to go to the workplace. 

From Saturday non-essential click and collect retail services will be prohibited in Level 4 areas and further changes will be put in place to how services open for essential purposes operate. 

Timeslots will be required for collection and people should not enter a store to collect an item. 

Businesses providing takeaway food will also operate on a ‘non-entry’ basis only, meaning customers cannot enter the premises when placing or collecting orders.

Restrictions banning the consumption of alcohol in public places will also be introduced.

In a statement to Parliament, First Minister Nicola Sturgeon said: “The situation we face in relation to the virus remains extremely serious.

“We must continue to do everything possible to reduce case numbers – this is essential to relieve the pressure on our NHS and to save lives.

“Both individually and collectively, these additional measures – in further reducing the interactions that allow the virus to spread – will help our essential efforts to suppress it.

“At this critical and dangerous moment, please: Stay Home. Protect the NHS. Save lives.”

The new regulations apply to all parts of Scotland currently in lockdown and will come into effect at 00.01 on Saturday

Read the Coronavirus (COVID-19): stay at home guidance

Responding to the latest announcements, David Lonsdale, Director of the Scottish Retail Consortium, said: “The situation with the pandemic is fast moving and we fully recognise government wants people to stay home. However these further revenue-crushing restrictions and the fresh complexity they bring, together with constant chopping and changing to the Covid Strategic Framework, are disconcerting and come at an incredibly difficult time for retail.

“Firms operating click and collect or food-to-go takeaway have taken every reasonable step to make their operations as safe as possible, complying with every twist and turn to government guidance and often at pitifully short notice. They have demonstrated they can operate safely and have invested significantly to make their premises Covid-secure, and it appears no evidence to the contrary has accompanied this announcement.

“The businesses affected – who have already lost much of their income during the crisis – are trying to make the best fist possible of the current severely curtailed trading conditions, and that just got even harder as a result of this decision which will add to their cash flow woes.

“The blunt reality is that the taxpayer-funded grant support on offer won’t make up for lost sales and firms’ mounting bills and debt during this pandemic. Even when we eventually emerge from lockdown shops will be unable to trade at capacity due to physical distancing and caps on numbers in stores, while the threat of a return to full business rates liability in April still looms. Decisive action is urgently required to extend rates relief into 2021-22 and avoid April’s reverse cliff edge which will see 100% reinstatement of business rates.”

“It’s vital shoppers continue to play their part, by shopping considerately, where possible alone, wearing face coverings, and following in-store signage. These are incredibly difficult times and it’s up to everyone to follow the rules to keep us safe and the virus at bay.”

Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce, said: “Today’s announcement will be very disappointing to those who have carefully adapted their businesses to be COVID safe and continue the trading that has kept them afloat up to this point.

“The lack of any certainty over when currently closed shops would be allowed to re-open added to the importance of Click and Collect services propping up many small and independent retailers.

“The Scottish Government must provide detailed evidence on how these new measures will support public health restrictions and urgently provide sufficient finance to support Scottish businesses if they are to get through yet more rules suddenly imposed upon them without prior consultation.

“Otherwise, it will only add to the growing desperation of businesses who have put finance and time aside to make their business COVID compliant, only to have to close anyway, with no clear route back to reopening.’’​

STUC General Secretary Roz Foyer has voiced union frustration at the absence of definitive new restrictions to meet the upsurge in infection risk and new virus strain.

She condemned the refusal to require closure of non-essential manufacturing and construction. The STUC welcomed the pledge to strengthen the obligation on employers to allow their staff to work from home whenever possible but said it would seek urgent engagement on how this will be implemented.

Roz Foyer said: “It is becoming increasingly clear that the Government has a blind-spot in some sectors when it comes to introducing similar safeguards to last year’s first lockdown. This is causing confusion for workers and, in too many cases, allowing employers to play fast and loose with government advice.

“We have been contacted with a wide range of worker concerns about employers who are choosing to interpret the government’s position to allow them to stay open and/or require staff to attend work rather than operate from home.

“We will be urgently seeking details on how the Government intends to legislate for employers to default to home working.”

CAMRA’s Scotland Director Joe Crawford said: “Pubs are a force for good in our communities and they deserve to be supported through these latest restrictions, which have dealt another devastating blow to trade for hospitality businesses. When this nightmare is over, pubs and social clubs will be vital to the nation’s healing process – so long as they are still standing. 

“Whilst no one wants to see irresponsible drinking in the streets during a lockdown, it is good that the Scottish Government is allowing pubs and breweries to continue selling alcohol in sealed containers for people to take home. This helps pubs, clubs and brewers to compete with the large supermarkets, and means that people can still get cask beer, which is under threat due to months of forced pub closures. 

“I’d encourage everyone to safely and responsibly support their local breweries, clubs and pubs where they are still able to act as an off-licence and sell beer and cider to enjoy at home.” 

Industry representatives wrote to the Scottish Government on Tuesday, insisting takeaways should remain permitted. Some had feared the worst, so yesterday’s announcement offers at least some respite.

Ten representative organisations from across Scotland’s Food and Drink industry wrote a joint letter to the Scottish Government’s Rural Economy Secretary, Fergus Ewing MSP, to request that food and drink takeaway services be permitted to continue.

The letter stated:-

“Dear Mr Ewing,

Potential Restrictions on Food and Drink Takeaway

Last Thursday the First Minister stated she wanted takeaway businesses to switch to delivery where possible, and we understand from subsequent media reports Ministers are considering prohibiting food takeaway activity from taking place.

Food and drink, hospitality, and catering businesses are concerned at the move away from the transparency and certainty which the Government was able to provide in the final months of last year through the Strategic Framework.

It is worrying we appear to be returning to a less considered approach – one which doesn’t effectively engage affected businesses in advance – which is less likely to provide the benefits of consultation and rounded decision making provided by the earlier approach.

It goes without saying food and drink businesses are facing an incredibly difficult time. The desired outcome of the current restrictions, with people broadly staying at home, means footfall for businesses has collapsed.

The inability to offer sit-in facilities should hopefully help prevent the spread of Covid – but it comes at a very high economic price.  In the context of a very uncertain economic outlook, these are very challenging trading conditions.

One of the few chinks of light in this dim outlook has been the ability for food and drink businesses to provide takeaway and click/telephone and collect services to customers. These services allow local businesses and suppliers to keep colleagues employed, provides a service to people – many of whom now are essential workers doing vital tasks – and of course are easy for smaller businesses to operate and establish. Limiting trade to home delivery only will force some businesses to close – and also ensure customers are more likely to purchase food and drink from grocers – ensuring more people are congregating in a smaller number of places.

Beyond this we are concerned at how any measures would be implemented into legislation. From our point of view how you would distinguish between a sandwich or sausage roll or hot or cold drink sold from a pub, bakery, café, restaurant, carry-out, newsagent, petrol station, or grocery store seems impossible to ascertain, but all are providing fundamentally the same service. The same applies across hundreds of product categories and thousands of businesses.

With these points in mind we remain very concerned at the suggestion this commercial activity could be suspended – especially as there is no indication when these businesses will be able to return to normal trading.  Our members undertaking these services have complied with every change to government guidance and put in place many mitigation measures and invested significantly to keep shoppers and workers as safe as possible. They are providing an important service in difficult circumstances, helping to support key workers as well as the Scottish food and drink industry.

Of course, we all support every effort to tackle Covid. If there is clear and unequivocal evidence measures in this area will proportionately suppress the virus we would recognise that.  However, we haven’t been sighted on any data or public health evidence as to why takeaway services are a risk. As such, forced closure seems somewhat arbitrary and marginal in terms of contributing to the suppression of the virus – not least as the new ‘stay at home’ order has just come into effect and is substantially reducing footfall.

Finally, it is only a week since the First Minister announced the new stay at home restrictions, which explicitly allowed takeaway businesses to trade. It’s very difficult for businesses to plan in any sense when government announcements emerge without warning, providing a metaphorical damoclean sword above any business trading right now.

These are very difficult circumstances for government. We want to work with you and your officials to continue to develop and deliver the proportionate measures which will suppress Covid and keep everyone safe. We hope you will look to engage constructively with us over the next few months.

Yours sincerely

Alasdair Smith, Chief Executive, Scottish Bakers

Colin Wilkinson, Managing Director; Scottish Licensed Trade Association

Ewan MacDonald-Russell, Head of Policy; Scottish Retail Consortium
Jim Winship, Director; The British Sandwich & Food to Go Association

Jim Winship, Director; The Pizza Pasta & Italian Food Association

Marc Crothall, Chief Executive; Scottish Tourism Alliance

Paul Togneri, Senior Policy Manager; Scottish Beer & Pub Association  

Dr Pete Cheema OBE, Chief Executive; Scottish Grocers’ Federation
Stuart Reddish, National President; NFRN

Willie Macleod, Executive Director, Scotland; UK Hospitality

Lockdown II reaction

Scotland woke up to tougher restrictions this morning

The STUC has strongly welcomed the extension of blended learning in schools and extra lockdown requirements but is disappointed at failure to protect all non-essential workers.

  • STUC position on shielding workers has now been heeded
  • STUC calling on all employers to offer furlough to all working parents affected by school closures, who are not classed as keyworkers
  • Measures are short of a full lockdown as many non-essential workplaces in sectors like manufacturing and construction will still remain open

STUC General Secretary Roz Foyer said: “By the government’s own admission the situation is now more serious than it has been at any other point, we are literally in a race to save lives, yet the measures set out are still less stringent than the lockdown last year.

“We welcome the decision to move to blended learning in schools until at least February. It is absolutely vital in the period ahead that education workers are listened to, and that a precautionary approach is maintained. Further changes to the plan for staggered return to universities also seems to be inevitable.

“We are also pleased our position has been heeded that shielding workers should not be required to attend work.

“However, we are deeply disappointed that, despite the severe circumstances, the First Minister, appears to be prepared to allow a range of non-essential workplaces such as construction and manufacturing to remain open.

“As well as posing increased transmission risks. this is a recipe for confusion and will place many workers in an invidious position, particularly those who have caring responsibilities. We intend to raise this as a matter of urgency with the Government.”

Responding to the latest announcements, David Lonsdale, Director of the Scottish Retail Consortium, said: “We recognise the situation with the pandemic is fast moving and are behind the government’s efforts to get on top of the virus.

“Nonetheless these further restrictions are unsettling and come at an incredibly difficult time for the retail industry. Non-food retail as a whole has been thwacked hard by the onslaught of coronavirus, and even before the latest lockdown came into effect was trading almost a quarter down compared to the same period last year.

“Even when stores are eventually permitted to re-emerge from this enforced hibernation, it is likely many will continue to suffer from lower shopper footfall. Prior to the current lockdown footfall was down by a third.

“Whilst a return to trading is crucial, it will not be a panacea for the industry. That’s why we hope to see a recovery plan from government to get retail moving once again, including visibility on the route out of lockdown, early clarity over continued rates relief for the coming financial year, and short term stimulus to boost consumer confidence and spending once shops can re-open perhaps through a high street voucher scheme.”

Police Scotland issued the following statement:

Responding to the First Minister’s announcement of a new lockdown, Director for CAMRA Scotland Joe Crawford said: “Tighter restrictions under the new national lockdown means that the light at the end of the tunnel still seems months away for Scotland’s beleaguered pubs and breweries.

“With pubs having missed out on any money through the tills over Christmas – which would have been their busiest time of year – and no prospect of re-opening on the immediate horizon, it is clear that the existing financial support on offer won’t be enough to save our pubs and breweries from permanent closure.

“The Scottish Government must recognise that local pubs are a force for good, bringing communities together and playing a key role in tackling loneliness and social isolation. 

“They deserve a new, long-term, sector-specific financial support plan to make sure that they can survive the next few weeks and months and are still around to open their doors again once restrictions start to be lifted.” 

The EIS has expressed its support for the decision to keep schools on a remote learning platform for at least the month of January, as part of the lockdown announced the Scottish Government.

Commenting on the decision, EIS General Secretary, Larry Flanagan said: “There was already heightened concern from teachers in Level 4 areas around school safety and the surge in infection levels, driven by the new variant, will have compounded those concerns especially as it seems clear that children can be as easily infected as anyone by the new strain, with subsequent transmission also occurring.

“Given that social distancing amongst pupils is physically impossible in crowded classrooms, moving to remote learning is the correct decision, therefore, if we are to successfully drive down community infection levels.  Suppressing the virus is key to school buildings safely reopening.”

He added, “Whilst the education system is better prepared to deliver education remotely than during the first lockdown, challenges remain and we need to ensure that all pupils, particularly those from disadvantaged backgrounds, can access learning on an equitable basis.”

Mr Flanagan concluded: “We have raised with the Scottish Government the question of prioritising vaccination of school staff as a mechanism to allow school buildings to reopen for all pupils.” 

STUC survey uncovers Covid concerns at work

A STUC survey had exposed widespread Covid-19 related concerns in Scottish workplaces, including a looming mental health crisis.

The research by Scotland’s national union body found the pandemic “has exacerbated a pre-existing lack of trust in employers when it comes to disclosing mental health conditions”. 

STUC says workers’ mental health has been significantly affected throughout the current public health crisis, with most workers saying they do not trust their employers to supporting their mental health.

Most indicated they do not feel supported by their employer when disclosing that there are battling with poor mental health, and almost half (47 per cent) do not feel comfortable disclosing their concerns to their employer.

Two-thirds (67 per cent) of people who have disclosed they have a mental health issue or illness have been offered no form of reasonable adjustment for their mental health.

The survey also found approaching half (43 per cent) of workers had not been offered any form of risk assessment for working at home.

STUC general secretary Roz Foyer said: “Despite the fact that poor mental health has become more honestly and openly discussed as a public issue, it appears that many workplaces have a long way to go in enabling people to be confident in disclosing mental health conditions or for supporting those who do.”

She added: “Employers should take heed of this. A crisis of trust between workers and managers could result in long term damaging impacts to a workplace and its workers. Employers need to understand that workers’ mental health is as important as their physical health, and must be treated as such.”

Scottish Pensioners’ Forum calls for creation of a National Care Service

The Scottish Pensioners’ Forum, the campaigning organisation for older people in Scotland, have today released a report calling for the creation of a National Care Service in light of the tragic number of deaths related to Covid-19 within care home settings.

The report is supported by the STUC.

Rose Jackson, SPF Chair, argued: “Covid-19 has had a disproportionate impact on the most vulnerable members of our society with many older people losing their lives prematurely due to the inadequate measures in place within residential care settings – things must change as a matter of urgency to ensure that more older people don’t lose their lives unnecessarily as a consequence of this.”

The report also highlights the profits being made by private companies and overseas investment in the care home sector and calls for an urgent review of this practice.

“We must replace a profit based system with something more akin to the NHS to avoid tax payers providing grossly inflated profits to shell companies and overseas speculators.”

The SPF, who have strong links with the STUC and its affiliates, have also set out a plan for a care service which would be beneficial for care home residents whilst also protecting the rights and welfare of employees in the care sector.

Roz Foyer, STUC General Secretary, welcomed the report stating: “Older people in Scotland have suffered greatly during this pandemic. Reports that half of all Covid deaths in Scotland have been from people living in care homes is a disgrace that should shame Governments and employers.

“The STUC has repeatedly called for a National Care Service, and while the Scottish Government have promised to review it, we must continue to push for a fully nationalised service that puts service users and care workers before profit and greed. That is why we continue to demand that the voice of care users and the voice of workers is directly represented on the Adult Social Care Inquiry.

“It is the least we, as a society, can do for our older population and for future generations to come.”

Follow Scottish Government guidelines on Working From Home, says STUC

As the UK Government embarks on a massive push back to work campaign, the STUC is urging employers and workers in Scotland to follow Scottish Government guidelines.

Roz Foyer, STUC General Secretary said: “The UK’s government’s plan to drive people back into their offices are adding even more confusion to an already shambolic Coronavirus response.

“In Scotland, we have taken a different track and are still in Stage 3 of the route map out of lockdown. It’s highly dangerous for the UK Government to be pressuring workers who don’t have to be based there back into the workplace and it needs to be made clear to all Scottish workers that this is not in line with public health guidance here in Scotland.

“Many offices, particularly call centres, are potential Coronavirus hot beds. Employers and Governments should be ensuring that they’re doing everything they can to assist workers to work effectively from home, until we can be confident that the virus has been sufficiently suppressed. We also need to keep the pressure off our public transport systems as far as possible at this key time.

“We understand that working from home can have its own challenges for workers and there are economic impacts on city centres, but continuing this where viable is still one of the best things we can do to prevent an autumn/winter spike in Coronavirus cases.

“Nothing could be more damaging for our economy than a second lockdown, which is why we must continue to show caution and restraint in the business of reopening our economy.

“The UK Government should be standing firmly in agreement with the Scottish Government that if you can work from home, you should work from home.”

Protecting Scotland, Renewing Scotland

Programme for Government 2020-21

Ensuring Scotland’s economic, health, and social recovery from the coronavirus (COVID-19) pandemic is the focus of this year’s Programme for Government.

Speaking in Parliament yesterday, the First Minister said the Scottish Government would prioritise work to suppress the virus – building on its commitment to COVID-19 testing, contact tracing, and surveillance.

The COVID-19 response will be bolstered with the launch of Protect Scotland, a new proximity tracing app, later this month. The app will add an additional means of notifying people that they may have been exposed to the virus and that they should isolate to prevent onward transmission.

The First Minister also set out the government’s plans for renewal while ensuring a green recovery is at the heart of the economic recovery, with job creation, support for health and wellbeing and work to tackle inequalities all high on the agenda.

A National Transition Training Fund will support up to 10,000 people at risk of redundancy or unemployment. The Scottish Youth Guarantee will ensure every young person has the opportunity of work, education, or training.

A new £100 million Green Jobs Fund will be created while a new Inward Investment Plan will create 100,000 high value jobs over the next decade and boost GDP.

The pandemic has also reiterated the need for a radical rethink of social care. An independent review of the care system will be established to examine how adult social care can be most effectively reformed to deliver a national approach to care and support services. This will include consideration of a National Care Service.

In order to support families, applications for the Scottish Child Payment will open in November 2020, with the first payments to be made in February 2021.

A new £10 million Tenant Hardship Loan Fund will protect people from homelessness by providing interest-free loans for those struggling to pay their rent and there will be a ban on evictions until March 2021.

Other measures include:

  • accelerating the roll-out of Community Treatment and Assessment Centres so more people can receive medical care in their community rather than going to hospital
  • expanding digital access to health care to ensure more people can get the help they need
  • £1.6 billion low carbon funding to secure a just transition to a net zero economy, including a £100 million Green Jobs Fund, investment in heat and energy efficiency and industrial decarbonisation
  • a 20 year vision for energy efficient, zero carbon housing, with access to outdoor space, transport links, digital connectivity and community services
  • £500 million for infrastructure to support active travel
  • bringing 50,000 people into the digital world through the Connecting Scotland programme and creating a world class digital eco-system in Scotland
  • introducing legislation on domestic abuse protection orders and progressing legislation to improve forensic medical examinations for victims of sexual assault

The First Minister said: “The COVID-19 pandemic continues to have a profound impact on our health and wellbeing, on business and the economy – indeed, on our whole way of life. That is true here in Scotland, and across the globe.

“Today’s Programme is clear that suppressing COVID is our most immediate priority – and it will remain so for some time. However, it also makes clear that we will not simply hunker down and wait for the storm to pass.

“This Programme for Government sets out plans for a stronger, more resilient and sustainable economy – with a laser focus on creating new, good, green jobs.

“It guarantees opportunities for young people – and refuses to accept that their generation will carry the economic scars of COVID into adulthood.

“It sets out plans to strengthen and reform our public services, including our NHS. And it takes the first step on the road to a National Care Service.

“It promotes equality and wellbeing, with decisive action to combat child poverty. At its heart is the new, game-changing Scottish Child Payment.

“We must treat the COVID-19 challenge not as a brake on our ambitions but as an accelerant – helping us shape a stronger, greener, fairer future.”

STUC welcome National Care Service commitment in Programme for Government, but raise concerns around Fair Work

STUC General Secretary Roz Foyer said: “While we strongly support many of the aspirations in today’s Programme for Government, aspirations aren’t enough and it will take a serious stimulus package to deliver the sort of transformative change being talked about by the First Minister.

“We welcome the First Minister’s commitment to review adult social care and support for a National Care Service. This is a very important development that we have long called for. However, it is deeply disappointing that trade unions representing the workers in this sector have not been offered a seat at the table for any review in order to hold the Scottish Government to account and represent our members.

“Additionally, given the scandal that has unfolded across our care services and the sub-standard employment practices that have been uncovered the Government must commit now to ensuring that the profit motive is removed from any future social care model and Fair Work issues are addressed as an urgent priority.

“We commend the Programme’s ambition of building a green economy. Unfortunately, the level of investment to create a zero-carbon economy is simply too small to meet the scale of the challenge. Supporting workers to upskill and retrain is important, but it counts for little when there is currently a lack of jobs and demand in the green economy.

“We need to see major investment and intervention and would have liked to have seen an extension of public ownership in key areas like transport, construction and energy to ensure that the government’s aspirations can be delivered effectively.

“Where money is invested it is essential that it comes with Fair Work conditionality attached. We are disappointed that the Fair Work agenda and conditionality has not featured more heavily in today’s programme.

“We would also have liked to have seen more commitment to increased funding for local government, which is absolutely vital if we are to ensure services in local communities for our most vulnerable.

“Overall the programme is full of the right ambitions, but it’s too cash tight. We will continue to call on both the UK and Scottish Governments to work together to deliver the level of stimulus our economy so desperately needs as this investment can’t wait for the debate on independence to be resolved.

“Today’s programme has good potential, but we need more investment to ensure real transformative change in our society.”

Joanna Barrett, NSPCC policy and public affairs manager, said: “It is clearly right that Covid-19 recovery, including for children, is at the heart of this year’s Programme for Government.

“Calls to our Childline service from children and young people who had experienced sexual abuse in the home tripled during lockdown. And there was an increase in referrals from our helpline to Scottish agencies, due to parental behaviour, physical and emotional abuse and neglect, during this time.

“It is, therefore, crucial that any efforts to support children recover from the effects of the pandemic, especially those focusing on mental health, include specialist and timely treatment for those who have endured traumatic experiences, such as abuse and neglect.”

Full Programme for Government

Full First Minister statement

Bills to be progressed during this parliamentary session (2020-21):

Budget Bill

Domestic Abuse Bill

Incorporation of United Nations Convention on the Rights of the Child (UNCRC) Bill

University of St. Andrews (Degrees in Medicine and Dentistry) Bill

Defamation and Malicious Publication Bill

Forensic Medical Services (Victims of Sexual Offences) Bill

Hate Crime and Public Order Bill

Heat Networks Bill

Redress for Survivors (Historical Child Abuse in Care) Bill

Social Security Administration and Tribunal Membership Bill

UK Withdrawal from the European Union (Continuity) Bill

Coronavirus: danger at work

Nearly 600 people in Scotland are thought to have caught coronavirus at their place of work, new figures show. The data includes eight people who died from the virus since April.

Care home workers account for nearly two thirds of the suspected occupational exposures, according to Health and Safety Executive (HSE) data, but many other groups – hairdressers, funeral directors, beauty therapists and NHS workers among them – are also believed to have been exposed to the virus at work.

STUC General Secretary Roz Foyer said: “These figures confirm our view that undervalued key workers in care and the NHS have borne the brunt of workplace transmission of the virus with some, tragically, dying as a consequence.

“These figures are almost certainly the tip of the ice-berg. We suspect that there has been significant under-reporting, not to mention a significant incidence of transmission from workers without symptoms.

“Even taken at face value these figures shine a light on the failures we have witnessed in the delivery of adequate PPE and the slow response to the provision of testing for suspected Covid infection.

“Now, more than ever, government and every employer have the responsibility to get things right. Workplaces have been at the centre of localised outbreaks. We need the utmost vigilance, full engagement with unions and an open door for union roving health and safety reps in non-recognised workplaces.”

Gary Smith, secretary of the GMB Scotland union, said there is likely to be significant under-reporting of the suspected workplace coronavirus cases. He said: “The events of the last six months simply do not give any confidence in these figures.

“In sectors which predominately employ women, such as social care and food manufacturing, we are talking about industries notorious for the under-reporting of workplace incident and injury pre-Covid.

“We now know that many of the workers in these industries have been failed on basic health and safety issues, from the delay in the delivery of proper PPE provision to the ability to access testing for suspected Covid infection.”

SCHOOLS GO BACK ON 11th AUGUST

‘Significant steps back to a less-restricted way of life’

Schools will return from 11th August, First Minister Nicola Sturgeon has confirmed. Ms Sturgeon said she expects all pupils to be back in class full time from 18 August “at the very latest”.

Guidance issued to councils said children should ‘return to school as quickly and as safely as possible’.

Children will return to schools full-time from August 11, with quick access to testing for all those who are symptomatic, and a targeted, enhanced surveillance programme to highlight any impact on pupils and staff.

The First Minister has also announced the return to schools will be supported with an additional £30 million to recruit new teachers. This brings the total additional Scottish Government investment in the teaching profession to £75 million, enough to recruit up to 1,400 new teachers. This funding will help address learning loss and ensure much-needed resilience in our schools as we recover from coronavirus (COVID-19).

On top of £20 million of funding previously committed, a further £30 million will also be available as part of a £50 million education recovery fund for local authorities. This will support cleaning, facilities management, school transport and other practical issues that are vital in ensuring a safe return to school.

The First Minister told Parliament: “In many ways, Scotland is in a better position in relation to COVID than I would have dared hope a few weeks ago. But this position is fragile.

“If we are not careful now, then in two or three weeks we could easily be facing some of the issues here in Scotland that we are currently seeing around the world.

“The two changes I have announced – on schools and shielding – are very significant, and we need to see if there has been any impact from changes that have already taken place. It is important, in particular, that we allow the impact of re-opening our schools to be assessed before we proceed with further major changes.

“Caution remains essential. We want to open up society and the economy as soon as we safely can, but we do not want to have to re-impose restrictions. That start-stop pattern seen in other countries is potentially more harmful to the economy, and our health and wellbeing.

“Do not drop your guard now. Every single time one of us breaches the rules, we give the virus a chance to spread. If we allow complacency to creep in now, it will – without exaggeration – be deadly.”

The STUC has called for the Government and local authorities to heed the advice of teachers and the whole education workforce to ensure that schools are safe environments for pupils and staff.

STUC Deputy General Secretary Dave Moxham said: “Schools re-opening full-time is an enormous step which requires continuing suppression of the virus across communities, the full implementation of safety guidance and a proactive testing regime. We support the call of education unions to ensure that smaller class groupings are the norm with sufficient resources ploughed into schools to ensure this can happen.

“Despite the correct decision not to move into Phase 4, it is vital that we recognise that school re-opening coincides with a wider return to work under phase 3 and that pressures on school and public transport must be carefully monitored.

“Government and local authorities will need to listen carefully to staff across the whole school community as they strive to maintain a safe environment, allay the fears of pupils and parents and provide a positive education experience in these abnormal times.”

Councillor Stephen McCabe, COSLA Children and Young People Spokesperson and Co-chair of the Education Recovery Group said:  “The guidance published today was a truly collaborative effort between local authorities, the Scottish Government, trade unions and parent organisations.

“The overriding priority for everyone involved is to ensure a safe return to education for our children and young people. At the same time, we have been extremely conscious of the impact that not being in school has on children, young people and families.

“The guidance is designed to give clear direction to all of those in local authorities preparing for the return to school. There are many issues to consider including arrangements for cleaning, school transport, testing and surveillance. Local authority staff have been working over the summer to make preparations not only for a full return but for the contingency of blended learning.

“Now that guidance has been finalised the hard work of school staff – cleaners, janitors, catering staff, teachers, support staff and youth workers –  will be focussed on making sure that our children and young people get the very best from their education in what will be a very different environment from what they were used to before the pandemic.”

Councillor Gail Macgregor COSLA Resources Spokesperson added:  “We welcome the additional funding that has been provided by the Scottish Government and this will allow local authorities to move forward on preparations for a full return to school in August.

“Safety is the key priority in returning and we have always been clear that any request for funding is on that basis. As we move through the school year additional costs are likely to be incurred by local authorities.

“We look forward to working with the Scottish Government as we see these costs emerge. It is our expectation that Scottish Government will provide additional funding to meet evidenced and reasonable costs.

“I would like to thank all council staff for the exceptional work they are doing as they continue their preparations for the safe return to school for our children and young people.”

Responding to the First Minister’s announcement that schools will return full time from August 11th, the EIS has warned against complacency and called for more to be done to ensure that schools are safe environments for pupils and staff.

Commenting following the announcement, EIS General Secretary Larry Flanagan said, “The decision of the Scottish Government to reopen schools with a full pupil return is predicated on the current successful suppression of the virus but as we are seeing in parts of Europe, that situation can change quite quickly.

“Even with full implementation of the guidelines and its mitigations, many teachers and parents will be understandably nervous about a return to the classroom.

“The EIS believes more could be done to reassure school communities around safety if smaller classes were introduced as the norm, employing the many unemployed teachers currently seeking work. The additional funding announced is welcome, therefore, but this needs to translate into smaller class grouping to support physical distancing amongst pupils.”

Mr Flanagan continued: “Smaller classes would also provide real extra support to pupils, who we know will have suffered emotionally as well as educationally as a result of lockdown. Reopening schools is only the start of education recovery.”

He went on: “The EIS will be insistent that the broader mitigations proposed are implemented rigorously, particularly physical distancing between staff and pupils, which will have significant pedagogical implications.”

“It certainly will not be ‘business as normal’. We will be seeking, also, further reassurances from the Scottish Government on proactive testing and monitoring of the school estate.”

Eileen Prior, Executive Director of Connect (formerly the Scottish Parent Teacher Council), said: “We know how hard it has been for many, many families, particularly for those facing multiple pressures. So this announcement will be the light at the end of the tunnel for the majority of parents.

“Our recent survey report, reflecting the views of nearly 8000 parents, showed that most parents want their children to get all the social and educational benefits of nursery and school. 

“However, parents also told us they are anxious: parents need clear information. We’re calling on the Scottish Government to help schools and parents with an education programme about COVID-19, to make sure we are all able to work together to support young people as they go back to school with a positive attitude and agreed, shared approaches to help our children and young people be healthy and happy.

“We’d like to see a communication plan in every school, so parents know what to expect in the event of a local lock down – how communication between school and home will take place, whether and how school work at home can happen.

“Putting together the plan must involve parents.'”

Lothian MSP Miles Briggs said: “This is very welcome news for parents, teachers and most importantly school pupils, who will be able to return to school mid-August.

“What is vital now is that the return of schools is managed effectively and teachers are provided full support to implement protocols for reopening schools.

“Even though lockdown rules are easing, it is vital that we don’t become complacent, and continue to social distance wherever possible, to reduce the risk of Covid-19 spreading.”

Johnson’s ‘jolly’ won’t dispel the gloom, says STUC

As the Prime Minister Boris Johnson visited Scotland on Thursday, the Scottish Trades Union Congress warned of further constitutional unrest if economic issues are not addressed

Prime Minister, crabs: Choose your own caption!

Roz Foyer, General Secretary of the STUC said: “Johnson’s jolly to Scotland won’t dispel the gloom that’s setting in as thousands hear the news that they have lost their work.

“The scale of the economic crisis we are facing is huge. Rather than insult the people of Scotland with his ignorance, he should focus his effort onto announcing concrete plans to rebuild our economy.

“He knows that economic unrest will find a channel in constitutional demands, and he is right to be worried. People in Scotland know how closely politics and the economy are interlinked, as the slump starts setting in across the sectors in the wake of the coronavirus crisis.

“Extending the furlough scheme, all across the UK, would massively help many industrial sectors such as hospitality weather the coming storm.

“Investment in a proper Green New Deal would create the environmentally friendly jobs and economic boost that our workers and hard-struck communities are desperate for.

“For far too long, the government and employers have undervalued the kind of work that coronavirus has shown to be of utmost importance. An increase in the minimum wage to £10 an hour, and an additional £2 an hour for all key workers who have kept us safe during this catastrophic pandemic, would be a start in righting the wrongs of the past.

“Boris won’t be so jolly once he starts to see how workers in Scotland respond in the wake of his woeful response.”