Kate Forbes: UK Budget ‘must give economic certainty’

Finance Secretary Kate Forbes has written to Chancellor of the Exchequer Rishi Sunak calling for additional spending to support households and businesses who are facing a perfect storm of rising prices, reduced support and increasing shortages.

Writing ahead of the UK Autumn Budget and Comprehensive Spending Review, Ms Forbes urged the Chancellor to at least match the Scottish Government’s £500 million Just Transition Fund for the North East and Moray and increase the Scottish Government’s borrowing powers to enable greater investment in decarbonisation schemes.

She also called for an extension of the reduced 12.5% VAT rate for the hospitality sector, which is due to end on 31 March 2022, for a further year,  a reversal of the decision not to award the Scottish carbon capture, utilisation and storage project Track-1 status and for the UK Government to “prioritise spending that supports the financial security of low-income households, the wellbeing of children and young people and delivers good, green jobs and fair work.” 

The letter states:

Dear Rishi,

I am writing to you in advance of the UK Government announcing the Autumn Budget and Comprehensive Spending Review on 27 October, with a view to constructively progressing the recent dialogue with the Chief Secretary to the Treasury and the First Minister’s meeting with the Prime Minister.

I am conscious that over recent days there has been wide media coverage in relation to Budget and Spending Review content. The reports have contained differing degrees of detail and a lack of clarity on how much of the predicted spend is new. In the absence of direct engagement, I have not reflected this information.

The Scottish Government will work to ensure that our responses to the unprecedented public health, economic and wider challenges presented by Covid deliver for the benefit of all of Scotland. This environment is compounded by the complexity and financial detriment to Scotland of the UK Government’s decision to leave the European Union against the will of the Scottish people, while we continue to work urgently to address the needs of climate change. These challenges will require short and long-term solutions and I set out below how the UK Budget and Spending Review can support priorities in Scotland.

Net Zero

COP 26 in Glasgow will focus international attention on the urgent action needed to tackle the global climate emergency. As outlined in the joint nations letter, and by the UK Climate Change Committee, significant investment is required from the UK Government in reserved areas to meet the Scottish Government’s ambitious emissions reduction targets. Given the requirement for co-ordinated action to address this challenge, it was disappointing that the UK Net Zero Strategy was launched without any meaningful engagement. The UK Net Zero Strategy provides some encouragement in key areas, but overall does not go far enough in many of the critical elements for ensuring the deep decarbonisation that the Scottish Government has repeatedly called for action in.

In Scotland, our climate change targets set their own pace and scale, requiring us to avail ourselves of every lever at our disposal. However, many levers remain at UK level, even where they affect Scotland directly. Following on from our recent meetings, it is worth highlighting again those actions which would most benefit our delivery in relation to funding key climate change commitments:

  • Removal of the capital borrowing cap, replacing this with a prudential borrowing scheme to help leverage the greater volume of capital investment required;
  • Agreement that all new spending will reflect the devolution settlement, enabling us to address Scotland’s specific challenges in making the transition to net zero (such as the needs of rural populations);
  • Meaningful and consistent dialogue between UK Government and Devolved Governments to allow consideration of all relevant input in advance of key green policy and regulatory decisions;
  • Engagement in relation to the net zero roadmap and other key strategies.

The Scottish Government has committed to working with partners, communities and other stakeholders to take forward a ten-year £500m Just Transition Fund for the North East and Moray. Given the UK Treasury has, over decades, benefited from billions of pounds of revenue from activity in the North Sea, I ask that you at least match our commitment to help secure jobs the North East of Scotland, support the energy transition, and reduce emissions.

There are a number of areas where we need the UK Government to take more action and act faster, including support for carbon capture, utilisation and storage (CCUS). Scotland represents the most cost-effective and deliverable opportunity for CCS in the UK by the mid-2020s. Therefore, the recent UK Government announcement failing to award the Scottish Cluster clear and definitive Track-1 project status as part of your CCUS cluster sequencing process is illogical.

We have previously advised the UK Government that we would help to support the Scottish Cluster, and stand ready to do so. However, we do not hold all the necessary legislative and regulatory levers which are retained by the UK Government. We are therefore calling upon the UK Government to reverse this decision, and accelerate the Scottish Cluster to full Track-1 status without delay.

Health & Social Care

I welcome the approach from UK Government officials to Scottish Government equivalents to form a working group in relation to the implementation of the levy, however this rise will have a notable impact on taxpayers in Scotland. Without necessary investments in supporting low-income households, this regressive approach to revenue generation will further compound the financial hardship many families already face as detailed above.

Whilst the UK Government has provided indications of the consequentials we will receive as a result of this tax rise, I remain concerned that reductions will be made in other areas giving rise to negative consequentials overall, and ask that this is ruled out in the forthcoming Budget and spending review. As part of this, I expect the allocation to devolved administrations will cover the full costs of the levy that will be incurred by our public sector employers including local government.

It is imperative that the UK budget delivers on your commitment to ensure that the NHS receives whatever support it needs throughout this pandemic. While the Health and Social Care Levy will go some way to supporting services, it is clear in particular that this will be insufficient to address the scale of social care pressure and consequent impact on NHS services.

I reiterate my previous call for a comprehensive package of investment, taking the whole health and social care system into account, both in terms of delivery of services and addressing specific Covid-19 pressures. I would also reaffirm the need for increased transparency of UK Government spending arrangements, so that the Scottish Government is clear on the funding that will arise from key programmes such as testing and vaccinations.

As I have previously highlighted, it will continue to be necessary for the UK Government to accommodate flexibility across the UK in these programmes of activity, so that devolved administrations can deploy resources in a manner that best meets spending profiles and specific needs in Scotland.

Recovery from the Combined Impacts of Covid and EU Exit

The Barnett guarantee provided in 2020-21 was a successful demonstration of the benefits of fiscal flexibility. UK fiscal policy and any new fiscal rules should be flexible as well as credible. This is something the Institute for Fiscal Studies has recently advocated to ensure fiscal policy can continue to respond to temporary economic shocks and help ensure fairness across generations. It is essential that the UK Government adopt such an approach.

As I have previously communicated, the Scottish Government is strongly opposed to any return to austerity and strongly urge you to reinstate the £20-per week uplift to Universal Credit. A real cost-of-living crisis is emerging as a result of this cut, combined with the escalating energy costs and upcoming rise in National Insurance Contributions. The Universal Credit cut alone will push an extra 60,000 people in Scotland, including 20,000 children, into poverty and hundreds of thousands more into hardship, whilst also reducing social security expenditure in Scotland by £461m by 2023-24.

I cannot accept that these cuts to individual income, alongside other poverty-inducing policies such as the benefit cap, or the two child limit for child tax credit are justifiable at this time. The UK Budget must prioritise spending that supports the financial security of low-income households, the wellbeing of children and young people, and delivers good, green jobs and fair work.

The choices made by the UK Government following Brexit are contributing to labour and skills shortages in Scotland. As predicted by Scottish Government modelling, severe impacts are disproportionately concentrated on the food and drink sector, particularly seafood, meat and dairy, as well as beverages and textiles. Evidence is mounting, including from BICs and HMRC Regional Trade Statistics to illustrate the detrimental impact on our trading performance, and supporting my call for the UK Government to re-engage in good faith with the EU and find pragmatic solutions to the blockages confronting businesses.

Where these create additional new costs or obstacles, I ask that the UK Budget and Spending Review is transparent about the impact and provides additional financial support to help compensate businesses for the losses incurred as a direct result of EU Exit.

Public Sector Pay

Decisions on public sector pay by the UK Government in this Budget and Spending Review are a material factor in setting pay awards for the public sector workforce in Scotland. Any continuation of the UK Government pay freeze has a material impact on our block grant settlement, within which we must balance reward and affordability. Public sector pay awards must be progressive, fair and allow valued workers to maintain their standard of living, as they continue to deliver the strong and innovative public services our people deserve.

Capital Investment

There is much common ground between UK and Scottish Government infrastructure priorities in delivering our net zero targets, delivering new jobs and securing Covid recovery. However, our economic recovery could be damaged if this spend is not prioritised and committed within the UK Budget. The decision taken by the UK Government to disburse the Levelling-Up Fund directly across the UK, despite previous commitments otherwise, impacts on the level of devolved funding available to the Scottish Government for Scotland.

To help achieve our Net Zero aims and grow our economy, I would welcome your assurance that the Scottish Government will receive a fair share of future years’ Capital and Financial Transactions allocations; that the gap in the Scottish Budget resulting from the change in approach to the Levelling Up Fund will be filled and that there will be appropriate governance arrangements for the UK Infrastructure Bank and other partnerships or funding routes to ensure that all interested parties have an appropriate ability to influence and control spend in the relevant areas of the UK.

VAT

I believe that the UK Government must make responsible tax policy decisions that will support the sectors and businesses economy throughout this challenging period, and I welcome measures taken on VAT to date. However, I am convinced that the increase in VAT from 1 October comes too soon.

This will affect many businesses that have been hit hardest by the Covid pandemic, potentially leading to their closure and therefore slowing the economic recovery in Scotland. It is vital that the UK Government takes account of the needs of all parts of the UK when deciding how best to support the recovery through its taxation levers, and I urge you to consider extending the reduced rate of VAT for the next financial year.

Air Passenger Duty

As you will be aware, the Scottish Government has a strong interest in the UK Government’s consideration of next steps for Air Passenger Duty following this year’s consultation on aviation tax reform. We accordingly asked to be fully consulted on any decisions before they are made, to ensure that any implications for devolution and the interests of Scotland are taken fully into account.

In that regard, it is concerning to see that the media appears to have been briefed on those decisions, without any discussion with the Scottish Government having occurred. Moving forwards, I would welcome your full commitment to meaningful dialogue on this, and indeed on all relevant tax matters, in advance of media briefings.

Replacement of EU Funding

In common with my counterparts in the Devolved Administrations, I expect full replacement of EU funds to ensure no detriment to Scotland’s finances, and I expect the UK Government to fully respect the devolution settlement in any future arrangements.

The current approach to the replacement of and participation in EU programmes leaves Scotland worse off. The ability to undertake long-term strategic planning has been significantly undermined as the flexible seven-year multi-annual funding mechanisms of EU funding are being replaced by annually managed allocations. Furthermore, the proposed methodology for determining farm funding allocations effectively penalises the use of the remaining flexibilities from legacy funding. I have written to you jointly with other finance ministers from the Devolved Administrations in order to express our concerns about this methodology and our expectations regarding future allocations.

With regards to fisheries, I consider the existing settlement to be vastly insufficient, given past underfunding and the significant impacts of Brexit on the sector. We provided clear evidence for a multi-year £62m allocation for Scottish fisheries, as opposed £14m allocation we received in the 20/21 Spending Review. Additionally, it appears that the yearly £5.5m top up which was previously provided to Scotland on the basis that the EU EMFF allocation was insufficient will no longer continue, increasing an already significant funding shortfall.

This process seems to mirror our experience with the Bew review, where commitments made in 20/21 are then being downgraded within the life of this parliament. In the case of the Bew review, this was to agree a process of engagement ahead of the upcoming Spending Review to address the issue of Bew funding from 2022/23 onwards. While the initial recommendations of the Bew review have been met, the proposed funding does not include any additional budget cover beyond 2021-22. This leaves Scotland in the same position as in 2019 where the inequality in distribution of land remains an issue.

Further discussions need to take place on the principle of intra-UK allocations in line with the wider observations of the Bew review. In the absence of such a review we would expect at least the £25.7m funding to continue beyond 2021-22 to address the funding inequality included in the previous ceiling levels. A failure to do so would result in a cut of £77.1m in our budget up to 2025. I require assurance that the UK Budget and Spending Review will redress these issues to ensure no detriment to Scotland’s finances.

Internal Market Act

The financial assistance powers in the Internal Market Act (IMA) confer new powers on UK ministers to spend directly in a wide range of devolved matters, bypassing parliamentary scrutiny and accountability at Holyrood. This also, in effect, gives the UK Government the power to bypass the Barnett Formula. Aside from being a profound departure from the existing devolution settlement, it introduces considerable additional uncertainty to future devolved funding and fundamentally alters the devolution landscape.

I ask for assurance that the powers will not be used without the prior consent of the Devolved Governments, and for clarity on how decisions on use of IMA financial assistance powers will be made, and under what circumstances. Without this it is difficult to see how the principles of consent, transparency, and stability and predictability espoused in the Statement of Funding Policy can be met. Moreover, it risks poor value for money as a result of incoherent policy and disjointed spending decisions.

As a minimum I would ask that the forthcoming spending review set out details on any plans to spend under the IMA over the course of the period (and beyond where known), and that the implications for devolved funding arrangements and decision-making are addressed in the planned update to the Statement of Funding Policy.

I trust that you will consider the suggestions made above and that we can work collaboratively to address the matters raised in order to provide certainty to the wider public sector, boost the economy and support our most vulnerable at this challenging time.

Yours sincerely,

KATE FORBES

£150 million budget boost for Scottish small businesses

The Chancellor is expected to announce a new, £150 million fund to help thousands of small and medium sized enterprises in Scotland in tomorrow’s budget – building on the Government’s commitment to level up opportunities across the UK.

The fund will be delivered through the British Business Bank, working closely with local partners, and will help Scottish SMEs to invest and grow. It will build on the success of existing funds in other parts of the UK, which have been shown to support the creation of high-paying high productivity jobs and the upskilling of existing workforces.

Similar existing funds in England and Northern Ireland typically provide loans or invest in local companies – this can be recent start-ups looking to borrow smaller amounts to kickstart activity or established SMEs looking for larger investments to grow their business. Details on how businesses in Scotland can access the fund will be outlined in due course.

Chancellor Rishi Sunak said: “This fund will help thousands of small businesses in Scotland to make ideas a reality and grow their companies . I’m always impressed by the innovation and determination of SMEs and the UK government will continue to support businesses across the UK.”

Since the start of the pandemic the UK Government has spent £352 billion right across the UK on support measures. In Scotland this included protecting more than 900,000 jobs through the furlough scheme, £294 million in self-employment support, help for businesses and the procurement of vaccines.

In addition to the £150 million for Scotland, Wales will benefit from £130 million for a new fund and the British Business Bank will receive an additional £70 million to build on existing programmes in Northern Ireland.

Budget Briefing: Wage boost for millions of low-paid workers

  • The UK’s lowest-paid workers will receive a pay rise next year as the National Living Wage increases from £8.91 to £9.50 an hour – an extra £1000 a year for a full-time worker.
  • From 1 April, young people and apprentices will also see their wages boosted as the National Minimum Wage for people aged 21-22 goes up to £9.18 an hour and Apprentice Rate increases to £4.81 an hour.
  • This builds on the government’s continued action to support people with the cost of living including through the £500 million Household Support Fund, Energy Price Cap, Seasonal Cold Weather Payments and Warm Homes Discount, and keeps the government on track to meet its target to end low pay by 2024-25.

MILLIONS of the UK’s lowest paid workers will benefit from a pay rise next year, as the UK government takes further action to help the country’s poorest households.  

The Chancellor is expected to confirm at Wednesday’s Budget and Spending Review that the National Living Wage will increase from £8.91 to £9.50 an hour – a 59p an hour boost which means a full-time worker on the National Living Wage will see a pay rise of more than £1,000 a year.

The National Living Wage was introduced in 2016 and sets the minimum hourly pay a person over the age of 23 can earn when working.

Rishi Sunak is also set to announce a wage rise for young people under the age of 23. For those aged 21-22 the National Minimum Wage rate increases to £9.18 an hour, up from £8.36 – a 82p increase.

With apprenticeships a key part of our Plan for Jobs, the minimum hourly wage for an apprentice will also see a boost next year, with an 18 year old apprentice in an industry like construction seeing their minimum hourly pay increase by nearly 12%, going from £4.30 to £4.81 an hour.

Chancellor of the Exchequer Rishi Sunak said: “This is a government that is on the side of working people. This wage boost ensures we’re making work pay and keeps us on track to meet our target to end low pay by the end of this Parliament.” 

By introducing these changes, which are broadly consistent with previous increases, the government accepts all recommendations made by the Low Pay Commission – an independent advisory board which brings together economists, employer and employee representatives.

“The government remains committed to meeting its ambitious target of a National Living Wage of two-thirds of median earnings and expanding it to include workers over the age of 21 by 2024, provided economic conditions allow.

Since 2010, this government has continuously supported working people on the lowest wages – doubling personal tax thresholds, doubling free childcare for eligible working parents – worth up to £5,000 per child per year. It has also expanded Free School Meals to all five to seven-year-olds – saving families £400 a year.

This builds on recent action to support the lowest earners in the winter months, through measures like the £500 million Household Support Fund to help families with their food and utility costs, the Energy Price Cap, Seasonal Cold Weather Payments, and the Warm Homes Discount to ensure low-income households can keep their homes warm over the winter period.

As we enter the next stage of the Plan for Jobs, an extra £500m will also be invested to give people the skills and support they need to find good work as we build back better from the pandemic.

500,000 adults to ace maths with ‘Multiply’ numeracy programme

  • New £560 million Multiply programme to be launched providing personalised maths coaching for up to half a million people across the UK.
  • Transformational numeracy scheme will transform the lives of some of the 8 million adults in England who have numeracy skills lower than those expected of a 9-year-old.
  • Funding to be channelled through the new £1.5bn UK Shared Prosperity Fund – which replaces a pot of money previously divvied up and distributed by the EU and means the government can target funding where it is needed most.

A TRANSFORMATIONAL £560 million scheme to improve the maths skills of hundreds of thousands of adults across the UK is set to unveiled by the Chancellor next week.

At Wednesday’s Budget and Spending Review, Rishi Sunak will announce that up to 500,000 people will benefit from Multiply with improved basic numeracy skills through free personal tutoring, digital training, and flexible courses.

More than 8 million adults in England have numeracy skills lower than those expected of a 9-year-old with the North East, West Midlands and Yorkshire and the Humber worst affected. And by the age of 30, people with poor numeracy skills are more than twice as likely to be unemployed as their peers.

According to research, improving numeracy skills can increase your pay cheque by 14%, and reduce joblessness by half – boosting the economy and changing lives.

Chancellor of the Exchequer Rishi Sunak said: “Better maths can mean a better job and a bigger pay packet. Multiply will help people develop new skills and create opportunities.”

Sam Sims, Chief Executive of National Numeracy said: “Low numeracy blights lives, holding millions of people back from fulfilling their potential and it comes at a huge cost to the economy.

“We need solutions that reach and engage people with low numeracy to build confidence with numbers as well as skills, as a steppingstone to further learning and opportunity.

“National Numeracy is delighted with the announcement of the government’s new ‘Multiply’ scheme, which promises to help improve the numeracy of hundreds of thousands of people.”

Launching in the Spring, Multiply will give people who don’t have at least a GCSE grade C/4 or equivalent in maths access to free new flexible courses to improve their maths.

It will also include a new website with bitesize training and free one-to-one online tutorials to help hundreds of thousands of people improve their maths in every part of the United Kingdom.

The programme will be funded through the new UK Shared Prosperity Fund, which replaces the EU’s Structural Funds, which were previously divvied up and distributed by the EU.

Funding for the UKSPF will increase to £1.5bn per year, meeting the Government’s commitment to level up all parts of the UK. The Multiply scheme is the first step of the new Fund, with further investment provided for Scotland, Wales and Northern Ireland.

Rather than the EU’s scatter gun approach, the UK Shared Prosperity Fund will ensure the UK Government can target funding where it is needed most – through schemes like Multiply which will help level-up the UK.

Secretary of State for Scotland, Alister Jack said: “The UK Govt made a clear commitment to maintain Scotland’s level of funding following the vote to leave the EU and we have delivered on that promise.

“This is good news for communities across Scotland who will continue to benefit from a range of important projects. Going forward, new arrangements will allow us to deal directly with communities ensuring money is spent on projects that matter most to the people of Scotland.”

£5 million for cutting-edge treatments for injured veterans

  • Chancellor expected to provide £5 million at Budget for new UK-wide Veterans’ Health Innovation Fund.
  • Investment will help to ensure veterans who have suffered injuries or mental health challenges receive the most cutting-edge treatments.
  • Innovative new surgery techniques and treatment options for amputees and blast victims to receive funding.

Veterans who have suffered injuries or mental health challenges are set to receive innovative and cutting-edge treatments thanks to a new £5 million fund, the Chancellor is expected to announce next week.

At Wednesday’s Budget and Spending Review, Rishi Sunak will unveil the new UK-wide Veterans’ Health Innovation Fund – which will be used to help develop ground-breaking treatments to help veterans with physical injuries, and those with hard-to-treat mental health injuries such as Post-Traumatic Stress Disorder.

Between 2001 and March 2021 there were more than 300 UK service personnel whose injuries included a traumatic or surgical amputation as a result of sustained injuries in Afghanistan.

One in ten serving military personnel were also seen by medics for a mental health-related reason last year, while the number of veterans entering psychological therapies on the NHS increased by around 45 percent between 2014 and 2020.

The Veterans’ Health Innovation Fund will provide grants for research into cutting-edge surgery techniques and treatments for amputees and veterans with blast injuries, new treatments for mental health challenges, and new technology to help injured veterans rebuild their lives and participate in work, education and sport. It will also fund research and treatment options for veterans with mild traumatic brain injury.

Grants could fund research into new surgery techniques such as Direct Skeletal Fixation, which enables artificial limbs to be permanently fixed to bones, removing the need to use traditional socket-based technology.

The Fund will also aim to support drug-assisted therapy trials, currently underway in the US and Israel, which have shown promising results in treating patients suffering with PTSD, and could also help with restoring patients’ function after brain injuries.

Chancellor of the Exchequer Rishi Sunak said: “We hugely value the sacrifices made by so many brave men and women in our Armed Forces. Supporting injured veterans and those with mental health needs is a crucial part of repaying the huge debt we all owe them.

“This new Fund will help ensure veterans get the support they deserve with the very best ground-breaking research and treatments.”

The fund will be distributed by the Office for Veterans’ Affairs (OVA) as part of the Government’s commitment to support veterans.

In addition to the new £5 million Veterans’ Health Innovation Fund, the Government has provided £10 million for veterans with mental health needs in both the 2021 and 2020 budgets. These funds are distributed through the AFCFT.

In September 2021, the Prime Minister also announced that Armed Forces charities would receive £5 million in additional funding to support veterans, including those who may be struggling following recent events in Afghanistan.

£700 million Budget boost for UK’s sports and youth clubs

  • Chancellor expected to confirm £700 million to improve sports and youth clubs.
  • Up to 8,000 state-of-the-art sports pitches to be built or improved across the UK to ensure every young person has a chance to take up sport.
  • Hundreds of youth facilities to be built or refurbished across England and the National Citizen Service to continue helping young people to build confidence and leadership skills outside of school.

As part of the government’s drive to level up the country, local communities will benefit from a £700 million wave of investment in football pitches, tennis courts, and youth facilities to help build the next generation of young talent, the Chancellor is expected to announce next week.

Following on from England’s roaring success at the Euros (Eh? – Ed.) and Emma Raducanu’s US Open victory, Rishi Sunak is set to announce new funding to build or improve up to 8,000 state-of-the-art sports pitches in villages, towns, and cities across the UK, as well as supporting a range of projects, including new clubhouses and community buildings.

This sits alongside the government’s commitment to refurbish more than 4,500 tennis courts across Great Britain.   

Up to 300 youth facilities, which could include scout huts, youth centres and activity centres, will also be built or refurbished in the most deprived areas, and funding will be committed to continue the National Citizen Service until 2024/25 – which provides 16-17 years olds from all backgrounds the opportunity to mix with their peers outside of school.

Chancellor of the Exchequer, Rishi Sunak said: “We’re backing the next generation of Ward-Prowses and Raducanus, not just sporting stars, but inspiring young leaders. Sports can be a fantastic way for young people to make friends and learn skills they’ll use for the rest of their lives – leadership, teamwork, and determination.

“This funding will level up access to sport and social clubs for youngsters ensuring they can get together and play the games they love most.”

Nadine Dorries, Secretary of State for Digital, Culture, Media and Sport said: “I want every young person, no matter where they’re from, to have the chance to get the best start in life and achieve success.

“This £700 million investment is a downpayment on our commitment to open doors for those who have been shut out. It will give young people the pitches and clubhouses they deserve to reap the benefits of sport and youth groups and help level up the country for the next generation.”

Robert Sullivan, Football Foundation Chief Executive Officer, said: “This investment is welcome news for all those involved in grassroots football across the country.

“We know that playing on good quality facilities helps people get fitter, improves mental wellbeing, grows confidence and builds stronger relationships. This is all essential for individuals and communities as we emerge out of the Covid-19 crisis.

“With the government, Premier League and The FA’s investment, we have made plenty of progress in the last two decades, but there is still lots of work to do to ensure all communities across England get the standard of local sports facilities they need and deserve.

“This new funding will unlock the power of even more pitches to help transform people’s lives.”

Mark Bullingham, Chief Executive of The FA said: “This investment into grassroots football pitches and multi-sport facilities is fantastic news for communities throughout the country.

“It will help the nation get active as we emerge from the impact of Covid. This is an important part of the Government’s £550m commitment to transform our grassroots football infrastructure, which will have a massive social and economic impact”.

Tim Hollingsworth, CEO of Sport England said: ‘We welcome the government’s decision to continue to invest in our young people and provide vital funding to support the facilities we need to enable sport in our communities.

‘There has never been a more important time to get the nation active and give people the opportunity to play sport, no matter their background.’

The government is investing £173 million to fund the continuation of the National Citizen Service in England; £368 million to fund up to 300 youth centres across England; and £155 million additional funding is being provided to invest in multi-use sports pitches and facilities throughout the UK.

DCMS will also receive a further £20 million to invest in youth services in England and the government will set out more detail in due course.

This builds on the government’s commitment to sport, having announced £50m of UK sports facility funding in July, as part of our ambition to ensure that you are never more than 15 minutes away from a high-quality pitch; and is in addition to the £30 million investment to refurbish more than 4,500 tennis courts across Great Britain; and the £25 million provided by the Chancellor for grassroots sports facilities throughout the UK at Spring Budget 2021.

The UK Government’s Plan for Jobs is also helping young people find new opportunities and better paid work; the government recently announced a £500 million extension of its supported schemes – targeted at young workers – including extensions to the Kickstart scheme, Job Entry Targeted Support Scheme, and the £3,000 incentive payment for businesses to hire apprentices.

UK launches world’s first green savings bonds

  • First ever green savings product from a sovereign issuer goes on sale online at NS&I for at least the next three months
  • The Green Savings Bonds will give UK savers the chance to back the Government’s green projects and join the collective fight against climate change
  • Bonds provide savers with financial returns and environmental benefits, backed by NS&I’s 100% guarantee

The world’s first green savings product from a sovereign issuer is available to UK savers from today (22 October 2021), less than two weeks ahead of the COP26 climate conference.

The landmark Green Savings Bonds give savers aged 16 or over the opportunity to back the Government’s green projects and put their money to work in the fight against climate change.

Green projects like zero-emissions buses, offshore wind and innovative low-carbon technologies will be eligible for funding, along with programmes to help us adapt to a changing climate like flood defences.

Projects to boost living and natural resources such as planting trees, protecting biodiversity and environmentally sustainable agriculture will also be eligible.

The Chancellor Rishi Sunak said: ““Our world-first Green Savings Bonds give savers across the UK the chance to back the Government’s green projects and put their money to work in the fight against climate change.

“The UK is already a world leader in green finance and these innovative new savings bonds will deliver both financial returns and environmental benefits, in a transparent and secure way.”

The Green Savings Bonds will be available from NS&I’s website and are offered at a 0.65% fixed annual rate over a three-year term.

With demand for environmentally friendly investments growing, particularly amongst young people, the bonds offer savers a way to generate both financial and environmental returns.

Research found that around 80% of people aged between 25-44 would be very or fairly interested in the concept of a green savings product, and that 42% of 18–34-year-olds would be willing to accept a lower return on their savings if they knew their money was being put towards green projects.

And because the Green Savings Bonds are offered by NS&I, the Treasury-backed savings organisation which offers Premium Bonds and other products, 100% of the investment is protected and guaranteed by the Treasury.

The Government will report regularly so savers can see which projects have been funded and the positive environmental impact their investment is making.

And in another world-first, the UK will report on the social co-benefits of the projects funded, so savers will also be able to track metrics such as the number of jobs created and SMEs or households who have benefitted.

Sean Kidney, CEO of Climate Bonds Initiative: “Every government has to green their budgets to meet climate targets.

“The UK’s landmark green savings bonds show just how that greening can and will be funded. It serves as an example to the world.”

Rhian-Mari Thomas, CEO of Green Finance Institute: “Following the success of the UK’s first two Green Gilt issuances, it’s great to see the launch of the new Green Savings Bonds, which will allow savers to put their money to work for the benefit of the environment.

“This is another important step to channel investment towards building a green, prosperous and inclusive UK economy, and an opportunity for savers to get involved.”

The Green Savings Bonds are the latest green finance initiative from the UK, which has been setting an example globally.

In the last month, the UK has issued £16bn of green sovereign bonds, with a record-breaking debut issue of £10bn that attracted the largest ever order book for a green bond, followed up by a successful second issuance of £6bn yesterday (21 October), which was even more heavily oversubscribed.

And earlier this week, the UK clamped down on greenwashing and set new global standards for environmental reporting with requirements for certain large businesses to set out their green credentials.

‘Wall of Defence’?

Advertising blitz to urge public to get flu and COVID-19 vaccines

  • Boots, LloydsPharmacy and Asda come together to support largest ever winter vaccine drive
  • This year will see the country’s biggest flu programme in history with 35 million people eligible for a free vaccine

A nationwide advertising campaign launches today (Friday 22 October) as part of the government’s call to the public to get their COVID-19 booster and flu jabs, to protect themselves and their loved ones this winter.

The multimedia campaign will run on outdoor billboards, broadcast and community radio and TV to support the national vaccine drive.

The colder weather traditionally leads to increased transmission of viruses. Experts have warned that this year there could be a significant flu surge coinciding with continuing or rising COVID-19 cases. Immunity to flu is expected to be lower due to lower levels of the virus in circulation last winter.

Vaccines give high levels of protection but immunity reduces over time, so it is vital vulnerable people come forward to get their COVID-19 booster vaccine to top-up their defences and protect themselves this winter. For those not eligible for a booster, the protection from two doses is sufficient.

Vaccines provide the best possible protection against infection and serious disease. The UK government is pushing the biggest ever winter vaccine campaign for COVID-19 and flu, so people can protect themselves and their loved ones this winter and play their role in reducing pressure on the NHS.

The campaign television advert hits screens today and asks people to “get vaccinated, get boosted, get protected.” It features Michelle, an NHS nurse, explaining the benefits of the flu jab and COVID-19 booster vaccine.

The new television advert will be seen in primetime spots alongside Emmerdale and Coronation Street as well as daytime shows such as This Morning and Loose Women.

Targeted digital channels will also carry the campaign adverts including social media platforms, digital radio and online video such as YouTube.

People will be invited for the COVID-19 booster jab when it’s their turn – if they have not been contacted within a week of reaching 6 months since their second jab they can call 119 or book online. Those who are eligible for a free flu vaccine can book an appointment through their GP surgery or local pharmacy.

The offer of a first and second COVID-19 vaccine remains open to anyone who is eligible. Vaccines are available for those aged 12-15 to offer the best possible protection this winter in schools, and they will also be available in vaccine centres from this weekend.

This week the country’s leading pharmacies have joined forces to encourage people to come forward and get their free flu vaccine and COVID-19 booster jab when eligible. Alongside independent pharmacists, Boots, LloydsPharmacy and Asda – who together have over 4,000 pharmacies across the UK – have backed the call for people to get vaccinated for the best possible protection this winter.

Secretary of State for Health and Social Care, Sajid Javid, said: “Our vaccine programme is building a wall of defence across the country and our booster rollout is now well underway with more than 4 million jabs in arms.

“As we go into winter, it is vital that eligible people get their booster jab and their flu jab to protect themselves, their loved ones and the NHS.

“This is a national mission and I’m hugely grateful to the public, volunteers and NHS workers rolling out jabs. It is fantastic to see some of our biggest high street pharmacies give their backing to the winter vaccination programme.

Vaccine confidence is high with data from the Office for National Statistics showing nearly all (94%) of those aged 50 to 69 say they would be likely to get their COVID-19 booster if offered, with the figure rising to 98% for those over 70. Similarly, over three quarters (77%) of those 50-69 would be likely to get the flu vaccine and nearly all (94%) of those over 70.

Dr Raj Patel, GP and Deputy National Medical Director of Primary Care for NHS England, said: “Flu is a huge killer and last year GPs and pharmacists jabbed record numbers of people and as we head into what could be one of the most challenging winters yet for the NHS, it has never been more important to get your flu and covid booster jab.

“Flu has a serious impact on the health of thousands of people every winter and it has never been easier to ensure you are protected, so I would urge everyone to book an appointment directly with you GP or pharmacist as soon as possible.”

Mary Ramsay, Head of Immunisation, UK Health Security Agency said: “This is the first winter when COVID-19 and seasonal flu are expected to be circulating together, putting more lives at risk. Vaccinations are important to protect against both diseases.

“Please book an appointment if you are eligible for the flu vaccine, or get your COVID-19 booster as soon as you are invited – which is due 6 months after a second dose.”

Michelle, Nurse who features in the advert said: “As a frontline worker for the NHS, I’ve seen first-hand the devastating impact both Covid and flu can have in winter.

“Vaccines offer the best protection and I hope this campaign drives home to the importance of coming forward for your vaccine.”

GP and TV doctor, Dr Dawn Harper said: It’s really important that if you are eligible to take up the offer for the different vaccinations – this is both the flu vaccine and COVID-19 booster – you do so.

“Thousands of people die from the flu each year and this year we’re expecting high levels to circulate as we head into winter. With the added threat of further COVID-19 and our immunity wavering, it’s so vital that people get protected against both these deadly viruses.

“This is a huge drive and we need everyone do their part by protecting themselves, and those around them. You can get your COVID-19 booster and flu vaccinations at vaccination centres, GPs or community pharmacists so please, make sure to book your appointment as soon as you’re invited.

Dr Leyla Hannbeck, Chief Executive Association of Independent Multiple Pharmacies, said: “Community pharmacies are already on track to smash last year’s flu vaccination record this season which showcases that patients are keen to get protection against the flu.

“Pharmacies, bravely remained open throughout the pandemic despite the risks and are increasingly seen as first port of call for members of the community to meet their basic healthcare needs.

“They provide accessibility and convenience for patients to get their flu vaccination. As we are approaching winter and with the potential higher cases of Covid, it is essential that all eligible patients get vaccinated.”

Marc Donovan, Chief Pharmacist at Boots, said: “Boots offers free NHS and private flu jabs and are seeing high demand this year. We have already taken over one million flu jab bookings to date but there are still plenty of appointments available at our pharmacies across the UK.

“Boots is also supporting the NHS to deliver COVID-19 booster jabs this winter at select pharmacies, offering a free flu jab at the same time to all eligible patients. Having both vaccines offers optimum protection from getting seriously unwell from these viruses in the coming months.”

Victoria Steele, Superintendent Pharmacist at LloydsPharmacy, said: “It is very likely that we’ll see much greater levels of transmission of the influenza virus this winter. Immunity and protection are increasingly at the forefront of our minds, and we have seen this through the high volume of flu bookings at LloydsPharmacy this year and through increased sales of winter medicines, as many start to take precautions as we head into cold and flu season.

“It is important that we all do what we can to protect ourselves and loved ones this winter by getting both the flu vaccine and the COVID booster vaccine, for those who are eligible.

“I’d encourage people to book as soon as possible, as it does take time for the body to develop its antibodies after any vaccine. You can book your appointment for a flu vaccine online or by visiting your local LloydsPharmacy.”

‘Incredibly concerning’ that Government is not taking more action to protect public against Covid, warns BMA

Responding to the press conference given by Health Secretary Sajid Javid on Wedneday in which he said that the number of Covid cases are expected to rise to 100,000 a day and that the Westminster Government would not be implementing its ‘Plan B’ at this stage, BMA council chair Dr Chaand Nagpaul said: “The Westminster Government said it would enact ‘Plan B’ to prevent the NHS from being overwhelmed; as doctors working on the frontline, we can categorically say that time is now.

“By the Health Secretary’s own admission we could soon see 100,000 cases a day and we now have the same number of weekly Covid deaths as we had during March, when the country was in lockdown. It is therefore incredibly concerning that he is not willing to take immediate action to save lives and to protect the NHS. Especially as we head into winter, when the NHS is in the grips of tackling the largest backlog of care, with an already depleted and exhausted workforce.

“The Government has taken its foot off the brake, giving the impression that the pandemic is behind us and that life has returned to normal. The reality today is an unacceptable rate of infections, hospitalisations and deaths, unheard of in similar European nations. In comparison to France, we have more than 10 times the number of cases and almost four times as many deaths per million.

“It is wilfully negligent of the Westminster Government not to be taking any further action to reduce the spread of infection, such as mandatory mask wearing, physical distancing and ventilation requirements in high-risk settings, particularly indoor crowded spaces. These are measures that are the norm in many other nations.

“While new treatments are always welcome, the UK Government itself has said these will not be available to patients until at least the end of the year, but urgent action is needed now to stem the scale of suffering and the real risk of overwhelming the NHS.

“It’s vital that the Government does everything to ensure it is made as simple and easy as possible for people to receive their booster, or even their first and second jab, especially in groups where uptake is lower. However, relying on the vaccination programme alone without other measures will not be sufficient to prevent rising infection rates, illness and deaths, given that no vaccine is 100% effective.

“Only last week two select committees found the UK was an international outlier when it came to public health policy during this crisis. We are rapidly approaching a position where, yet again, the Government is delaying for too long, and equivocating over taking action. This is the time to learn the lessons of the past and act fast, or else we will face far more extreme measures later.”

NHS Confederation: Enact ‘Plan B plus’ to avoid stumbling into winter crisis

“The government should not wait for COVID infections to rocket and for NHS pressures to be sky high before the panic alarm is sounded”

Health leaders are calling on the UK government to introduce measures, such as mandatory face coverings in crowded and enclosed spaces, without delay to keep people well and avoid the NHS from becoming overwhelmed this winter.

The NHS is seeing worrying increases in coronavirus cases in its hospitals and the community at a time when it is preparing for a busy winter period, its staff are close to burnout, and it is being expected to recover many of its services that were disrupted by the pandemic.

The NHS Confederation is warning that the extent of this recovery could be at risk without preemptive action over winter from the government and the public.

Last month, the government set out its COVID-19 winter strategy, which focused on building the population’s defenses through vaccinations and other pharmaceutical interventions, as well as test, trace and isolate measures, and public health messaging.

Within that, a ‘Plan B’ would be enacted if pressures on the NHS were deemed to be at risk of becoming unsustainable. Additional measures could include clear communications to the public that the level of risk has increased, introducing certificates for people’s COVID-19 vaccine status, and legally mandating people to wear face coverings in certain settings, in addition to considering asking people to work from home if they can.

Many of these measures, particularly around mask-wearing and COVID-19 certification, are already common in parts of Europe where the prevalence of the disease is lower.

The membership body is calling for these actions to be introduced sooner rather than later so that if cases of coronavirus still rise to worrying levels, the government can then introduce tougher measures, if needed.

Alongside this, the NHS Confederation believes that this should go further with a ‘Plan B plus’, calling on the public to mobilise around the NHS and do whatever they can to support frontline services this winter. This could include:

  • Getting vaccinated, including booster shots when invited.
  • Turning up for scheduled healthcare appointments on time.
  • Using frontline services responsibly, such as by only calling 999 in emergency situations and accepting appointments with primary care professionals other than GPs, such as practice nurses and community pharmacists, as well as remotely from both primary and secondary care, if offered and suitable
  • Volunteering to support the NHS and joining or returning to the workforce, if eligible. 

Matthew Taylor, chief executive of the NHS Confederation, said: “The NHS has shown that it has been there for its patients throughout the pandemic and is working hard to tackle the increased demand for its services, with 1.1 million procedures and 25.5 million GP appointments delivered in August.

“The NHS is preparing for what could be the most challenging winter on record and it will do everything it can to make sure its services are not disrupted but these outside pressures are not solely within its gift to influence. As cases of coronavirus continue to climb, alongside other demands on the health service and pressure on staff capacity in both the NHS and social care, leaders are worried about what could be around the corner.

“There is a crucial opportunity for the public to pull together and show extra support for the NHS by behaving in ways that will keep themselves and others safe and also safeguard stretched frontline services for those most in need.

“It is time for the Government to enact Plan B of its strategy without delay because without preemptive action, we risk stumbling into a winter crisis. Also, health leaders need to understand what a ‘Plan C’ would entail if these measures are insufficient.

“The government should not wait for COVID infections to rocket and for NHS pressures to be sky high before the panic alarm is sounded.

“Additional investment has been given to the NHS to support its recovery and leaders are committed to putting that to best use as rightly, the public expects a return on its investment but if the government fails to get a grip on the rising cases of coronavirus and other illness, this could be put at risk.”

Confirmed cases of coronavirus in the UK have exceeded 40,000 for the last seven days, with 43,738 recorded yesterday and 49,156 on Monday. The last time cases were in this bracket was in mid-July.

Also, English hospitals have seen a 10% increase in Covid-19 cases in the last week, with 7,749 people reported at the last count. Deaths are averaging around 120 a day but today there were 223 deaths within 28 days of a confirmed positive diagnosis.

Vaccinations have played a significant role in keeping these numbers lower than they could have been and were in previous waves of the pandemic, with the NHS currently supporting booster shots and flu vaccinations to more patients than ever, as well as supporting Covid-19 jabs for 12- to 15-year-olds.

Over 83 million jabs have been given in England so far.

Build Back Greener: Government sets out Britain’s path to net zero

The Net Zero Strategy sets out how the UK will deliver on its commitment to reach net zero emissions by 2050

  • Net Zero Strategy sets out how the UK will deliver on its commitment to reach net zero emissions by 2050
  • outlines measures to transition to a green and sustainable future, helping businesses and consumers to move to clean power, supporting hundreds of thousands of well-paid jobs and leveraging up to £90 billion of private investment by 2030
  • reducing Britain’s reliance on imported fossil fuels will protect consumers from global price spikes by boosting clean energy
  • it comes as the UK prepares to host the UN COP26 summit next week, where the Prime Minister will call on other world economies to set out their own domestic plans for cutting emissions

A landmark Net Zero Strategy setting out how the UK will secure 440,000 well-paid jobs and unlock £90 billion in investment in 2030 on its path to ending its contribution to climate change by 2050 has been unveiled by the UK government yesterday (19 October).

Building on the Prime Minister’s 10 Point Plan, today’s UK Net Zero Strategy sets out a comprehensive economy-wide plan for how British businesses and consumers will be supported in making the transition to clean energy and green technology – lowering the Britain’s reliance on fossil fuels by investing in sustainable clean energy in the UK, reducing the risk of high and volatile prices in the future, and strengthening our energy security.

The commitments made will unlock up to £90 billion of private investment by 2030, and support 440,000 well-paid jobs in green industries in 2030. This will provide certainty to businesses to support the UK in gaining a competitive edge in the latest low carbon technologies – from heat pumps to electric vehicles – and in developing thriving green industries in our industrial heartlands – from carbon capture to hydrogen, backed by new funding.

As part of the strategy, new investment announced yesterday includes:

  • an extra £350 million of our up to £1 billion commitment to support the electrification of UK vehicles and their supply chains and another £620 million for targeted electric vehicle grants and infrastructure, particularly local on-street residential charge points, with plans to put thousands more zero emission cars and vans onto UK roads through a zero emission vehicle mandate
  • we are also working to kick-start the commercialisation of sustainable aviation fuel (SAF) made from sustainable materials such as everyday household waste, flue gases from industry, carbon captured from the atmosphere and excess electricity, which produce over 70% fewer carbon emissions than traditional jet fuel on a lifecycle basis. Our ambition is to enable the delivery of 10% SAF by 2030 and we will be supporting UK industry with £180 million in funding to support the development of UK SAF plants
  • £140 million Industrial and Hydrogen Revenue Support scheme to accelerate industrial carbon capture and hydrogen, bridging the gap between industrial energy costs from gas and hydrogen and helping green hydrogen projects get off the ground. Two carbon capture clusters – Hynet Cluster in North West England and North Wales and the East Coast Cluster in Teesside and the Humber – will put our industrial heartlands at the forefront of this technology in the 2020s and revitalise industries in the North Sea – backed by the government’s £1 billion in support
  • an extra £500 million towards innovation projects to develop the green technologies of the future, bringing the total funding for net zero research and innovation to at least £1.5 billion. This will support the most pioneering ideas and technologies to decarbonise our homes, industries, land and power
  • £3.9 billion of new funding for decarbonising heat and buildings, including the new £450 million 3-year Boiler Upgrade Scheme, so homes and buildings are warmer, cheaper to heat and cleaner to run
  • £124 million boost to our Nature for Climate Fund helping us towards meeting our commitments to restore approximately 280,000 hectares of peat in England by 2050 and treble woodland creation in England to meet our commitments to create at least 30,000 hectares of woodland per year across the UK by the end of this parliament
  • £120 million towards the development of nuclear projects through the Future Nuclear Enabling Fund. There remain a number of optimal sites, including the Wylfa site in Anglesey. Funding like this could support our path to decarbonising the UK’s electricity system fifteen years earlier from 2050 to 2035

The policies and spending brought forward in the Net Zero Strategy mean that since the Ten Point Plan, we have mobilised £26 billion of government capital investment for the green industrial revolution.

More than £5.8 billion of foreign investment in green projects has also been secured since the launch of the Ten Point Plan, along with at least 56,000 jobs in the UK’s clean industries – and another 18 deals have been set out at the Global Investment Summit to support growth in vital sectors such as wind and hydrogen energy, sustainable homes and carbon capture and storage.

Through energy efficiency measures, falling costs of renewables and more, the measures in the strategy also mean people’s energy bills will be lower by 2024 than if no action was taken particularly as gas prices rise.

As the first major economy to commit in law to net zero by 2050 and hosts of the historic UN COP26 climate summit, the UK is leading international efforts and setting the bar for countries around the world to follow.

The UK has hit every carbon budget to date – today’s Net Zero Strategy sets out clear policies and proposals for meeting our fourth and fifth carbon budgets, and keeps us on track for carbon budget 6, our ambitious Nationally Determined Contribution (NDC), while setting out a vision for a decarbonised economy in 2050.

Prime Minister Boris Johnson said: “The UK’s path to ending our contribution to climate change will be paved with well-paid jobs, billions in investment and thriving green industries – powering our green industrial revolution across the country.

“By moving first and taking bold action, we will build a defining competitive edge in electric vehicles, offshore wind, carbon capture technology and more, whilst supporting people and businesses along the way.

“With the major climate summit COP26 just around the corner, our strategy sets the example for other countries to build back greener too as we lead the charge towards global net zero.”

Business and Energy Secretary Kwasi Kwarteng said: “There is a global race to develop new green technology, kick-start new industries and attract private investment. The countries that capture the benefits of this global green industrial revolution will enjoy unrivalled growth and prosperity for decades to come – and it’s our job to ensure the UK is fighting fit.

“Today’s plan will not only unlock billions of pounds of investment to boost the UK’s competitive advantage in green technologies, but will create thousands of jobs in new, future-proof industries – clearly demonstrating that going green and economic growth go hand in hand.”

Both the Net Zero and Heat and Building Strategies build on the Prime Minister’s Ten Point Plan in November 2020 which laid the foundations for a green industrial revolution, kick-starting billions of pounds of investment in new and green industries to help level up the country. To date, the UK has decarbonised faster than any other G7 country.

Published alongside these two strategies is HM Treasury’s Net Zero Review, an analytical report which explores the key issues as the UK decarbonises. It helps to build a picture of where opportunities could arise and the factors to be taken into account when designing decarbonisation policy. While there are costs in reaching net zero, the cost of inaction is much higher.

Net Zero Strategy 

Heat and Buildings Strategy.