Tag: UK Government

Scotland’s revenues grow by £3 billion

DEFECIT CONTINUES TO FALL 

Scotland’s notional deficit is falling faster than the UK’s, with onshore revenues increasing by 5.1% to reach £61.3 billion in 2018-19 as a result of continued economic growth.

According to the Government Expenditure and Revenue Scotland (GERS) figures published yesterday, Scotland benefitted from a £3 billion increase in onshore revenues in the last year – the fastest growth since 2010-11 as the overall notional deficit fell by £1.1 billion to 7.0% of GDP, down from 8%, in 2018-19.

The reduction in the notional deficit is the result of revenues growing at a faster rate than expenditure.

Commenting on the latest figures during a visit to manufacturing company Armadilla Ltd in Bonnyrigg, Finance Secretary Derek Mackay said: “With record tax revenues, strong economic growth and near record low unemployment, Scotland’s economy and public finances are strong. Today’s figures show overall revenue in Scotland reached £62.7 billion – exceeding £60 billion for the first time – reflecting the strength of our economy.

“Our notional deficit has fallen while public spending has increased thanks to our efforts to grow the onshore economy and the strong performance of taxes in Scotland. The Scottish Government’s choices on taxation are helping to create a more progressive tax system.

“This strong performance from Scotland’s economy is at risk as a result of the UK Government’s EU exit plans, and in particular a ‘no deal’ Brexit, which poses a severe threat to jobs, investment and living standards

“A ‘no deal’ Brexit could reduce revenues in Scotland by around £2.5 billion a year, holding Scotland back and demonstrating why people in Scotland increasingly recognise the importance of making our own decisions.

“These figures reflect Scotland’s position as part of the UK. The Scottish Government believes we could unlock our full potential with independence, allowing us to take the best decisions for Scotland.

“As we have always said, Scotland has a strong, and growing, economy and our future will be far brighter as an independent member of the EU.”

Westminster puts a different slant on the latest figures, of course. Commenting on the Scottish Government’s GERS figures for 2018-19, Scottish Secretary Alister Jack said: “Today’s GERS figures show clearly how Scotland benefits from being part of a strong UK with every man, woman and child in Scotland receiving a ‘Union dividend’ of nearly £2,000 a year.

“These Scottish Government figures also show there would be a £12.6 billion black hole at the centre of an independent Scotland’s finances. Real questions need to be asked about the First Minister’s stewardship of the country’s economy.

“With Scotland’s deficit now more than six times greater than the UK average, the Scottish Government needs to take action.

“Scotland remains the highest taxed part of the UK. This is harming our economy and should be a huge concern to us all.

“The UK Government is investing in Scotland to deliver jobs, opportunities and sustainable growth, including £1.4 billion for city and growth deals. We are working hard to support businesses and bring further opportunities as we leave the EU on 31 October.”

The UK Government notes:

  1. Using the Scottish Government’s own data, public spending in Scotland was nearly £1,661 per head higher than that of the UK average. In other words, in 2018-19 it was 13.6% higher than the UK average. Over the last five years, this gap has been on an upward trend from £1,182 or 10.2% in 2014-15 and £1,661 or 13.6% in the latest full financial year.
  2. Scotland’s tax contributions, at £11,531, continue to be around £307 per head less than the UK average, at £11,838.
  3. Scotland’s deficit [or borrowing] was nearly £1,968 per person larger than the UK average in 2018-19.
  4. Scotland contributed 8.0% of UK tax and received 9.3% of UK spending in 2018-19 (Scotland’s population share was 8.2% in 2018-19), demonstrating how Scotland receives secure and stable levels of spending irrespective of the volatile tax revenues from the North Sea.
  5. Whilst Scotland’s share of UK total revenue has marginally increased over the last year, it is generally on a downward trend. Since its peak at 9.7% in 2008-09, Scotland’s contribution to UK revenues has been on a downward trend in subsequent years and is currently at 8.0% of the UK total. This is marginally up from 7.9% the year before.
  6. Total North Sea revenues fell slightly from £1.30 billion in 2017-18 to £1.24 billion in 2018/19. This is up from a low of minus £85 million in 2015-16 and down from a peak in 2008-09 of £10.6 billion.
  7. Scotland’s net fiscal balance as a share of GDP was –7.0%, compared to –1.1% for the UK overall. This decreased from –8.1% in 2017-18, compared to the UK overall, which came down from –2.0%. In absolute terms, Scotland’s deficit was £12.6 billion in 2018-19, down from £13.8 billion in 2017-18 (incl. North Sea revenues).
  8. While Scotland’s overall fiscal position improved in 2018-19, Scotland’s deficit as a share of its economy is over 6 times higher than that of the UK.

You pays your money, you takes your choice. Make your own mind up:

The full statistical publication is available at http://www.gov.scot/gers

 

Extra UK aid to help stop the spread of Ebola to vulnerable countries

Countries at risk of Ebola will receive extra UK aid support to help stop the deadly disease from spreading, International Development Secretary Alok Sharma announced yesterday.

Since the epidemic began last August, the UK has been a major donor to the Ebola response and has now allocated a further £8 million for countries neighbouring the DRC, such as Uganda, South Sudan, Burundi and Rwanda, as the likelihood of Ebola spreading to these countries is high.

Trusted partners will use this money for prevention work to help contain the outbreak and stop its spread. The funding will deliver more temperature checks at border crossings, support Ebola treatment units, provide clean water and sanitation, and enable engagement with local communities to raise awareness of the dangers of Ebola.

International Development Secretary Alok Sharma said: “This UK aid to countries that neighbour the DRC will make a real difference in helping to prevent further spread of this deadly outbreak.

“Livelihoods depend on people being able to cross borders safely so it is essential we continue to put in place the tools to contain Ebola. If we don’t, the outbreak will spread and many thousands more could suffer – ultimately Ebola is a potential threat to us all.”

There have been more than 2,850 cases in the DRC and almost 2,000 people have died from the disease. Three cases of Ebola were found in Uganda in June. The treatment centre where the cases were taken in the first instance was funded by UK aid and swift action prevented the spread of infection.

During a visit to Uganda this week, Mr Sharma will see first-hand how existing UK support has helped to:

  • build two treatment units
  • train health workers in 22 districts
  • fund 16 ambulances to help people in areas most at risk
  • provide protective clothing for health workers and thermometers at borders to screen people
  • vaccinate health workers.

END GAME: Brexit Secretary signs order to scrap 1972 Brussels Act – ending all EU law in the UK

The Government has signed into law legislation to repeal the Act of Parliament which set in stone Britain’s EU (EEC) membership in 1972.

The 1972 Act is the vehicle that sees regulations flow into UK law directly from the EU’s lawmaking bodies in Brussels. Continue reading END GAME: Brexit Secretary signs order to scrap 1972 Brussels Act – ending all EU law in the UK

‘From fields to fork’: Public to have their say on the food system of the future

British shoppers will be able to buy environmentally friendly, healthy and affordable food under plans for a radical shake-up of the UK’s food industry.

As one of the first steps, the UK Government has launched a call for evidence, giving everyone from consumers, farmers and food producers, to scientists and academics, an opportunity to shape how we produce, sell and consume food in the UK. Continue reading ‘From fields to fork’: Public to have their say on the food system of the future

UK aid to provide vital food to hundreds of thousands of people in troubled South Sudan

UK Minister for Africa, Andrew Stephenson announced an extra £18 million of UK aid on his first visit in his new role, which will be given to trusted partners to help vulnerable families in desperate need. Continue reading UK aid to provide vital food to hundreds of thousands of people in troubled South Sudan

Foreign Office issues Rugby World Cup travel advice

Award-winning UK-based Japanese comedian Yuriko Kotani has teamed up with the Foreign & Commonwealth Office to produce some special advice for fans travelling to the Rugby World Cup in Japan this autumn.

Yuriko’s humorous tips are designed to help the 50,000 or more British fans expected to attend the tournament to support Wales, Scotland, England and Ireland to avoid pitfalls. Continue reading Foreign Office issues Rugby World Cup travel advice

Doubts over Erasmus+ after EU exit

The Scottish and Welsh Governments have raised serious concerns about the impact of a ‘no-deal’ Brexit on the popular Europe-wide international student exchange program Erasmus+.

In a letter to Secretary of State for Education Gavin Williamson, Scottish Further and Higher Education Minister Richard Lochhead and Welsh Education Minister Kirsty Williams have argued the case for continued participation in the exchange programme.

They say leaving the EU without a deal – and without the UK Government reaching an alternative Third Country agreement or other arrangement – would see universities, colleges, and schools across the UK ineligible to submit applications to participate in the final year of the current Erasmus+ programme in 2020.

Between 2014 and 2018, more than 15,000 students and staff from Scotland reaped the benefits of the EU-led scheme, which allows funded temporary study overseas as part of the their Scottish courses.

Mr Lochhead said: “Thousands of Scottish students benefit from Erasmus+ yearly, proportionally more than from any other country in the UK. The Scottish and Welsh Governments are clear that we must remain a full participant in Erasmus+.

“I am also alarmed to hear the UK Department for Education could be considering an Erasmus+ replacement programme for England only – with potentially no consequential funding for Devolved Administrations (DAs) to put in place their own arrangements. That’s why we have written to the UK Government calling for urgent action and assurances that Scottish students won’t miss out.

“It is the Scottish Government’s preference to remain in the EU, but in the event of a damaging ‘no-deal’ Brexit, students could now see the door to this fantastic cultural and educational exchange slammed shut.

“It is unacceptable that with less than 12 weeks left until the UK Government plans to take the United Kingdom out of the EU without an agreement in place, there is still no plan for alternative arrangements.”

Two recent studies have underlined how Erasmus+ continues to enhance students’ quality of life and career prospects – both during their course abroad, and long after it finishes. The research also highlights the programme’s success at driving innovation and social inclusion in higher education.

The results of the impact studies show Erasmus+ significantly benefits students’ career prospects and personal development.  The programme can act as a guide for students to discover what they want to do after their studies  – making for a happier career; Erasmus+ has also been shown to drive innovation and social inclusion in higher education.

Every year, more than 300,000 students study or train under the Erasmus+ umbrella – over five million students have directly benefitted since the launch of the programme in 1987. The Higher Education Impact study found that 80 percent of Erasmus+ graduates are employed within three months of graduation, with 72 percent stating their Erasmus+ experience helped them land their first job.  Nearly half of Erasmus+ trainees were offered a job in the company where they trained.

More than two-thirds of Erasmus+ students and trainees gained new insight about their career choices through studying or training abroad. This added awareness has allowed students to better orient their studies and training to match their career ambitions – leading to both happier careers and expanded professional opportunities.

The studies have also highlighted how Erasmus+ builds a sense of European identity and social cohesion. 90 percent of Erasmus+ students feel the programme has improved their ability to collaborate with people from different cultures, and are more positive about the role of the EU in society.

Erasmus+ mobility also supports the growth of innovative learning and teaching practices – as well as the expanded use digital technologies. Nearly 80 percent of academics reported their experience abroad has led to the development of more modern and innovative teaching practices and curricula in their faculties.

The impact study on Erasmus+ Higher Education Strategic Partnerships and Knowledge Alliances found that Erasmus+ has spurred equality in education – with nearly two-thirds of universities stating projects under Erasmus+ have increased social inclusion and non-discrimination in higher education.

Cooperation projects under Erasmus+ have also allowed students, higher education staff and other stakeholders to develop vital innovation and business skills. Over one in four projects under Erasmus+ contribute to strengthening entrepreneurial education and entrepreneurship – with nearly a third of these projects resulting in start-ups and spin-off enterprises.