Tag: UK Government

Record £41 billion per year for Scotland in budget

‘The Budget delivers for people in Scotland’

  • UK Government will provide a record £41 billion per year to the Scottish Government.
  • Scotland will also benefit from UK-wide support for people and businesses, green jobs and investment to level up opportunities.
  • Targeted funding will support local projects across Scotland, including road and infrastructure improvements, investment in local communities and funding for businesses.

The Chancellor today announced Barnett-based funding for the Scottish Government of £41 billion per year – delivering the largest annual funding settlement, in real terms, since devolution over 20 years ago. This includes a £4.6 billion per year spending boost – as part of a Budget and Spending Review that delivers a stronger economy for the whole of the UK.

Rishi Sunak set out a plan to deliver the priorities of the British people by investing in stronger public services, levelling up opportunity, driving business growth and helping working families with the cost of living.

As part of the significant spending plans, Scotland will receive an average of £41 billion per year in Barnett-based funding representing a 2.4% rise in the Scottish Government’s budget each year. The Scottish Government will now receive around £126 per person for every £100 per person of equivalent UK Government spending in England.

Chancellor of the Exchequer, Rishi Sunak said: “This is a budget for the whole of the UK. We’re focused on what matters most to the British people – the health of their loved ones, access to world-class public services, jobs for the future and tackling climate change.

“By providing record funding, the Scottish Government can tackle backlogs in the NHS and ensure people in Scotland get the support they need as we recover from the pandemic.

“The UK Government continues to level up opportunities across all parts of the UK, with investments in green jobs and high-speed internet access for thousands more homes in Scotland through Project Gigabit.

Scottish Secretary, Alister Jack said: “The Budget delivers for people in Scotland, and right across the UK.

“The Scottish Government’s block grant, boosted by an additional £4.6 billion a year due to spending in England, means that the funding for the Scottish Government is the highest it has ever been.

“It demonstrates our commitment to level up right across the UK. The Budget ushers in an era of real devolution, ensuring money is spent on projects that matter most to people in Scotland.

“The UK Government 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. We are taking decisions in the UK rather than in Brussels and dealing directly with local authorities who know their communities best.

“From the Knoydart community pub, to Dumbarton town centre and the Granton Gasworks – all these projects will bring real, visible improvements for local communities. Special funding for Glasgow’s iconic Burrell Collection and Extreme E will help drive economic growth and jobs on the back of culture and tourism.

“The continuation of the freeze on spirit duty will be a boost to Scotland’s thriving whisky industry.

“Over the past 18 months the UK Government has been focused on protecting people’s livelihoods, their incomes, and their jobs. We now need to look to the future, to build a stronger economy for people in all parts of the UK.”

Targeted funding in Scotland

On top of the record funding for the Scottish Government, Scotland will benefit from the UK Government’s commitment to invest in people, jobs, communities and businesses. Targeted projects in Scotland include:

Over £200 million to be invested in Scotland to boost the post-pandemic recovery and enhance the Scottish economy, including:

  • £172 million of the Levelling Up Fund for 8 important projects including the redevelopment of Inverness Castle, the much-needed renovation of the Westfield Roundabout in Falkirk, and a new marketplace in Aberdeen City Centre.
  • Over £1.07 million of the Community Ownership Fund for five projects in Whithorn, Inverie, New Galloway, Kinloch Rannoch and Callander that are protecting valued community assets.
  • Providing £1.9 billion for farmers and land managers and £42.2 million to support fisheries.
  • Up to £1 million, to support the delivery of a ‘green’ formula E race showcasing Hebridean Green Hydrogen to a global audience.
  • Expanding the existing trade and investment hub in Edinburgh to grow trade for Scotland.
  • Up to £3 million to bring world-class art exhibitions to the Burrell Collection in the heart of Glasgow.

UK-Wide Support

As a result of our strong United Kingdom, Scotland will benefit from:

  • A 50% cut in domestic Air Passenger Duty for flights between England, Scotland, Wales and Northern Ireland and an additional £22.5 million of new funding in anticipation of the Union Connectivity
  • Review recommendations where we will work with the devolved administrations on improving UK-wide connectivity.
  • New funding for the British Business Bank to establish a £150 million fund in Scotland, helping Scottish businesses to get the financing they need.
  • The new £1.4 billion Global Britain Investment Fund which will support investment directly into Scotland.
  • A record £20 billion by 2024-25 in Research and Development supporting innovation in Scotland.
  • Confirmation that total funding will at a minimum match the size of EU Funds in Scotland, each year through the over £2.6bn UK Shared Prosperity Fund, which will invest in skills, people, businesses, and communities, including through ‘Multiply’, a new adult numeracy programme that will provide people across Scotland with essential numeracy skills.
  • An increase to the National Minimum Wage of £9.50 an hour, with young people and apprentices also seeing increases.
  • Freezes to fuel duty for the twelfth consecutive year and a freeze on Vehicle Excise Duty for heavy goods vehicles.
  • A freeze on alcohol duty, which will mean that whisky benefits from the lowest real terms tax rate since 1918.

BUDGET REACTION

Rachel Reeves MP, Labour’s Shadow Chancellor, responding to the Budget, said: Families struggling with the cost of living crisis, businesses hit by a supply chain crisis, those who rely on our schools and our hospitals and our police – they won’t recognise the world that the Chancellor is describing. They will think that he is living in a parallel universe.

The Chancellor in this budget, has decided to cut taxes for banks. So, Madame Deputy Speaker, at least the bankers on short haul flights sipping champagne will be cheering this budget today.

And the arrogance, after taking £6 billion out of the pockets of some of the poorest people in this country, expecting them to cheer today for £2 billion given to compensate.

In the long story of this Parliament, never has a Chancellor asked the British people to pay so much for so little.

Time and again today, the Chancellor compared the investments that he is making to the last decade. But who was in charge in this lost decade? They were.

So, let’s just reflect on the choices the Chancellor has made today – the highest sustained tax burden in peacetime.

And who is going to pay for it?

It’s not international giants like Amazon – the Chancellor has found a tax deduction for them. It’s not property speculators – they’ve already pocketed a stamp duty cut. And it’s clearly not the banks  – even though bankers’ bonuses are set to hit a record high this year.

Instead, the Chancellor is loading the burden on working people. A National Insurance Tax rise – on working people. A Council Tax hike – on working people. And no support today for working people with VAT on their gas and electricity bills.

And what are working people getting in return? A record NHS waiting list, with no plan to clear it, no way to see a GP and still having to sell their home to pay for social care.

Community policing nowhere to be seen, a court backlog leaving victims without justice and almost every rape going unprosecuted.

A growing gap in results and opportunities between children at private and state schools. Soaring number of pupils in supersize classes and no serious plan to catch up on learning stolen by the virus. £2 million announced today – a pale imitation of the £15 billion catch up fund that the Prime Minister’s own education tsar said was needed. No wonder, Madame Deputy Speaker, that he resigned.

Now the Chancellor talks about world class public services. Tell that to a pensioner waiting for a hip operation. Tell that to a young woman waiting to go to court to get justice. Tell that to a mum and dad, waiting for their child the mental health support they need.

And the Chancellor says today that he has realised what a difference early years spending makes. I would just say to the Chancellor, has he ever heard of the Sure Start programme that this Tory government has cut?

And why are we in this position? Why are British businesses being stifled by debt while Amazon gets tax deductions?

Why are working people being asked to pay more tax and put up with worse services?

Why are billions of pounds in taxpayer money being funnelled to friends and donors of the Conservative party while millions of families are having £20 a week taken off them?

Madame Deputy Speaker, why can’t Britain do better than this?

The Government will always blame others. It’s business’ fault, it’s the EU’s fault, it’s the public’s fault.

The global problems, the same old excuses. But the blunt reality is this – working people are being asked to pay more for less for three simple reasons:

  •     Economic mismanagement,
  •     An unfair tax system,
  •     And wasteful spending.

Each of these problems is down to 11 years of Conservative failure and they shake their heads but the cuts to our public services have cut them to the bone. And while the Chancellor and the Prime Minister like to pretend they are different, the Budget they’ve delivered today will only make things worse.

The solution starts with growth. The Government is caught in a bind of its own making. Low growth inexorably leads to less money for public services, unless taxes rise.

Under the Conservatives, Britain has become a low growth economy. Let’s look at the last decade – the Tories have grown the economy at just 1.8 percent a year.

If we had grown at the same rate as other advanced economies, we could have spent over £30bn to invest in public services without needing to raise taxes.

Let’s compare this to the last Labour Government. Even taking into account the global financial crisis, Labour grew the economy much faster – 2.3 percent a year.

If the Tories matched our record, we would have spent £30bn more on public services without needing to raise taxes.

It could not be clearer. The Conservatives are now the party of high taxation, because the Conservatives are the party of low growth.

The Office for Budget Responsibility confirmed this today – that we will be back to anaemic growth. The OBR said that by the end of this Parliament, the UK economy will be growing by just 1.3%. Which is hardly the  plan for growth that the Chancellor boasted about today, hardly a ringing endorsement of his announcements.

Under the Tory decade we have had ow growth and there’s not much growth to look forward to.

The economy has been weakened by the pandemic but also by the Government’s mishandling of it.

Responding to the virus has been a huge challenge. Governments around the world have taken on debt, but our situation is worse than other countries.

Worse, because our economy was already fragile going into the crisis. Too much inequality, too much insecure work, too little resilience in our public services.

And worse, because the Prime Minister dithered and delayed, against scientific advice – egged on by the Chancellor – we ended up facing harsher and longer restrictions than other countries.

So, as well as having the highest death toll in Europe, Britain suffered the worst economic hit of any major economy.

The Chancellor now boasts that we are growing faster than others, but that’s because we fell the furthest.

And whilst the US and others have already bounced back to pre-pandemic levels, the UK hasn’t. Our economy is set to be permanently weaker.

On top of all of that, the Government is now lurching from crisis to crisis. People avoiding journeys because they can’t fill up their petrol tank is not good for the economy. People spending less because the cost of the weekly shop has exploded is not good for the economy. And British exporters facing more barriers than their European competitors because of the deal that this government did is not good for the economy.

If this were a plan, it would be economic sabotage. When the Prime Minister isn’t blagging that this chaos is part of his cunning plan, he says he’s “not worried about inflation.”

Tell that to families struggling with rising gas and electricity bills, with rising prices of petrol at the pump and with rising food prices. He’s out of touch, he’s out of ideas and he’s left working people out of pocket.

Madame Deputy Speaker, Conservative mismanagement has made the fiscal situation tight. And when times are tight it’s even more important to ensure that taxes are fair, that taxpayers get value for money. But the Government fails on both fronts.

We have a grossly unfair tax system with the burden heaped on working people.

Successive budgets have raised council tax, income tax and now National Insurance. But taxes on those with the broadest shoulders, those who earn their income from stocks, shares, and property portfolios have been left largely untouched.

Businesses based on the high street are the lifeblood of our communities and often the first venture for entrepreneurs.

But despite what the Chancellor has said today, businesses will still be held back by punitive and unfair business rates. The Government has failed to tax online giants and watered-down global efforts to create a level playing field.

And just when we need every penny of public money to make a difference, we have a government that is the by-word for waste, cronyism and vanity projects.

We’ve had £37 billion for a test and trace system that the spending watchdog says, ‘treats taxpayers like an ATM cash machine’. A yacht for ministers, a fancy paint job for the Prime Minister’s plane and a TV studio for Conservative Party broadcasts, which seems to have morphed into the world’s most expensive home cinema.

£3.5bn of Government contracts awarded to friends and donors of the Conservative Party, a £190 million loan to a company employing the PMs former Chief of Staff, £30 million to the former Health Secretary’s pub landlord. And every single one of those cheques signed by the Chancellor.

And now he comes to ordinary working people and asks them to pay more. More than they have ever been asked to pay before and at the same time, to put up with worse public services. All because of his economic mismanagement, his unfair tax system and his wasteful spending.

There are of course some welcome measures in this budget today, as there are in any budget.

Labour welcomes the increase in the National Minimum Wage, though the Government needs to go further and faster. If they had backed Labour’s position of an immediate rise to at least £10 an hour then a full-time worker on the minimum wage would be in line for an extra £1,000 a year.

Ending the punitive public sector pay freeze is welcome, but we know how much this Chancellor likes his smoke and mirrors. So, we’ll be checking the books to make sure the money is there for a real terms pay rise.

Labour also welcomes the Government’s decision to reduce the Universal Credit taper rate, as we have consistently called for. But the system has got so far out of whack that even after this reduction, working people on universal credit still face a higher marginal tax rate than the Prime Minister. And those unable to work – through no fault of their own – still face losing over £1000 a year. And for families who go out to work everyday but don’t get government benefits, on an average wage, who have to fill up their car with petrol to get to work, who do that weekly shop and who see their gas and electricity prices go up – this budget today does absolutely nothing for them.

We have a cost-of-living crisis.

The Government has no coherent plan to help families to cope with rising energy prices. Whilst we welcome the action taken today on Universal Credit, millions will struggle to pay the bills this winter.

The Government has done nothing to help people with their gas and electricity bills with that cut in VAT receipts as Labour has called for. A cut that is possible because we are outside the European Union and can be funded by the extra VAT receipts that have been experienced in the last few months.

Working people are left out in the cold while the Government hammers them with tax rises.

National Insurance is a regressive tax on working people, it is a tax on jobs.

Under the Chancellor’s plans, a landlord renting out dozens of properties won’t pay a penny more. But their tenants, in work, will face tax rises of hundreds of pounds a year. And he is failing to tackle another huge issue of the day. Adapting to climate change.

Adapting to climate change presents opportunities – more Jobs, lower bills and cleaner air. But only if we act now and at scale. According to the OBR, failure to act will mean public sector debt explodes later, to nearly 300% of GDP.

The only way to be a prudent and responsible Chancellor is to be a Green Chancellor. To invest in the transition to a zero-carbon economy and give British businesses a head-start in the industries of the future.

But with no mention of climate in his conference speech and the most passing  of references today, we are burdened with a Chancellor unwilling to meet the challenges we face.

Homeowners are left to face the costs of insulation on their own, industries like steel and hydrogen are in a global race without the support they need and the Chancellor is promoting domestic flights over high speed rail int he week before COP26.

It is because of this Chancellor that in the very week we try and persuade other countries to reduce emissions, this Government can’t even confirm it will meet its 2035 climate reduction target.

Madame Deputy Speaker, everywhere working people look at the moment they see prices going up and shortages on the shelves. But this Budget did nothing to address their fears.

Household budgets are being stretched thinner than ever but this Budget did nothing to deal with the spiralling cost of living. It is a shocking missed opportunity by a government that is completely out of touch.

There is an alternative.  Labour would scrap the business rates and replace it with something much better by ensuring online giants pay their fair share. That’s what being pro-business looks like.

We wouldn’t put up National Insurance for working people, we would ensure those with the broadest shoulders pay their share. That’s what being on the side of working people looks like.

We’d end the £1.7 billion subsidy the Government gives private schools and put it straight into local state schools. That’s what being on the side of working families looks like.

We’d deliver a climate investment pledge – £28bn every year for the rest of the decade. That’s Giga-factories to build batteries for electric vehicles, a thriving hydrogen industry and retrofitting, so we keep homes warm and get energy bills down. That’s what real action on climate change looks like.

This country deserves better but they’ll never get it under this Chancellor who gives with one hand but takes so much more with the other.

The truth is this – what you get with these two is a classic con game. It’s like one of those pickpocketing operations you see in crowded places. The Prime Minister is the front man – distracting people with his wild promises. All the while, his Chancellor dips his hand in their pocket. It all seems like fun and games until you walk away and realise your purse has been lifted.

But people are getting wise to them. Every month they feel the pinch. They are tired of the smoke and mirrors, of the bluster, of the false dawns, of the promises of jam tomorrow.

Labour would put working people first. We’d use the power of government and the skill of business to ensure that the next generation of quality jobs are created right here, in Britain.

We’d tax fairly, spend wisely and after a decade of faltering growth, we’d get Britain’s economy firing on all cylinders.

That is what a Labour budget would have done today.

Edinburgh Pentlands SNP MSP Gordon MacDonald said that the Tory UK Government’s budget makes it clear that “independence is the only way to give Edinburgh a fair recovery from the pandemic.”

Gordon MacDonald said that the budget, described by the head of the Institute for Fiscal Studies as “actually awful” for living standards, is failing the people of Scotland by failing to tackle the cost of living crisis, the Brexit crisis and the climate crisis whilst the Tory Government prioritise cuts to the cost of champagne and giving tax breaks to bankers.

The Edinburgh Pentlands MSP said: “What the Tory UK Government has outlined today does not meet the ambition needed to build a fair and sustainable recovery and to tackle the cost of living crisis.

“It’s painfully clear that there will be no fair recovery from the pandemic under Westminster control.

“This Tory budget fails Scotland as a whole and doesn’t go anywhere near supporting people in Edinburgh, who are being hit by an energy crisis, a Brexit crisis, labour shortages and an inflation crisis under Westminster control.

“The UK Government budget is leaving families in Edinburgh hundreds of pounds worse off next year due to Tory cuts, tax hikes and the soaring cost of Brexit.

“It’s little wonder that, in May’s election, the people of Scotland voted overwhelmingly for a different future when they gave the SNP the highest share of the vote since the dawn of devolution and a clear mandate for an independence referendum – Independence is the only way to keep Scotland safe from Tory cuts.”

Commenting on today’s budget and spending review (Wednesday), TUC General Secretary Frances O’Grady said: “The chancellor has gone from pay freeze to pay squeeze.

“The chancellor admitted that we will have zero pay growth across the economy next year. And he has no plan to get real wages rising for everyone after an eleven year pay squeeze, with average real pay growth over the next four years predicted to be just 0.3 per cent.

“Millions of key workers who saw us through the pandemic will still be worse off than they were in 2010. That puts vital services under pressure as even more staff leave, and it risks the recovery.  

“He should have announced fair pay deals for whole industries, negotiated with unions, designed to get pay and productivity rising in every sector.

“Families face a triple whammy of a £1,000 universal credit cut, tax hikes and fast-rising energy and food bills. All the while wages across the economy stand still.”

On the universal credit taper cut, she added:

“Workers on universal credit should always have been able to keep more of their wages. This change does not make up for the £1,000 per year cut to universal credit, and does not help those on universal credit who cannot work.”

Centre for Cities’ Chief Executive Andrew Carter said: “Raising the National Living Wage is a quick win for the levelling up agenda and will have the biggest impact in the places that are crucial to the Prime Minister winning the next election. Four of the five places where the most people will benefit are in the North.

“While a pay increase is good news for people struggling with the cost of living crisis, it does not address the reasons why they live on low pay in the first place: a lack of well-paid jobs in their local area.

“We’ve seen today the beginnings of a plan focused on skills, innovation and infrastructure to address this, but turning it from rhetoric to reality will depend on ministers’ willingness to work with metro mayors and councils on delivering it.

“I am now looking to the delayed Levelling Up White Paper to set out how this will happen.”

Katie Schmuecker, Deputy Director of Policy & Partnerships at JRF said: “This is a tale of two Budgets for families on low incomes. 

“For those in work, the change to the taper rate and work allowance, alongside the National Living Wage increase, are very positive steps, allowing low-paid workers to keep more of what they earn. Together these measures improve our social security system for working families and demonstrate a serious intent to turn the tide on the pre-pandemic trend of rising in-work poverty.  

“But the reality is that millions of people who are unable to work or looking for work will not benefit from these changes. The Chancellor’s decision to ignore them today as the cost of living rises risks deepening poverty among this group, who now have the lowest main rate of out-of-work support in real terms since around 1990. 

“Among the people in our society who cannot work are cancer patients, people with disabilities and those caring for young children or elderly parents. 

“Their energy bills and weekly shop are going up like everyone else’s and they face immediate hardship, hunger and debt in the months ahead. The Chancellor had an opportunity to support families on the lowest incomes to weather the storm ahead, and he did not take it.” 

New analysis by the independent Joseph Rowntree Foundation reveals that the rising cost of living wipes out much of the financial gain some families will receive from the Universal Credit changes announced today.

Weekly incomes and Costs for 2022/23Family 1: single adult, no children, not workingFamily 2: single parent, with one young child (assume age 5), part-time 16 hours per weekFamily 3: couple with two young children (assume 7 and 5). One FT workerFamily 4: single parent, with one young child (assume age 5), full-time 35 hours per weekFamily 5: Couple with two young children (assume 7 and 5). 1 FT worker (35 hours), 1 PT worker (16 hours)
Weekly income before new announcements£77£278£433£333£489
Weekly gain from taper rate and work allowance£0£8£19£19£31
      
Total loss from higher cost of living due to…-£13-£16-£23-£18-£24
1) increase in energy prices-£7-£7-£7-£7-£7
2) overall cost of living increase-£6-£8-£13-£8-£13
3) increase in National Insurance and impact of inflation on earnings£0-£1-£3-£3-£4
      
Overall weekly gain or loss after measures and cost of living-£13-£8-£4£1£7

Note all five families lost £20-a-week in October 2021, due to the cut in the Universal Credit Standard Allowance, so all are worse-off than they would have been in September 2021. All workers are assumed to be paid at the National Living Wage rate, so benefit from its increase.

Peter Kelly,Director of the Poverty Alliance, said: “It is a shameful, unjust decision that makes the Chancellor’s rhetoric about ‘levelling up’ seem as empty as the pockets of the hundreds of thousands of people swept into poverty as a result.”

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.