Tag: UK Government

First Minister to convene summit with energy suppliers and campaign groups

The First Minister will convene an urgent summit with energy supply companies and consumer groups later this month, to discuss how advice and support for people struggling with energy bills can be improved.

The summit will consider what collective action can be taken by government, energy companies and the third sector to help businesses and consumers access advice, and get support with debt issues.

Scotland’s major energy suppliers including Scottish Power, OVO Energy, Centrica, Octopus and E.ON, as well as industry bodies and key consumer and poverty organisations will attend.

The summit follows last week’s meeting of the Scottish Government Resilience Committee on the cost living crisis and will take place ahead of OfGem’s next energy price cap announcement on 26 August.

First Minister Nicola Sturgeon said: “I know that this is an incredibly unsettling time for households and energy consumers across Scotland and the Scottish Government will continue to do everything we can to support those affected.

“There is a not a single solution to this problem and government, industry and the third sector in Scotland needs to work collaboratively together to ensure the right support is in place for householders and businesses during this challenging winter. This could include improving the availability of help and advice and considering a more compassionate approach to debt management.

“However, it remains the case that the powers and resources needed to tackle this emergency on the scale required – access to borrowing, welfare, VAT on fuel, taxation of windfall profits, regulation of the energy market – lie with the UK Government.

“Only the UK Government can access and make available resources on the scale required. They need to take action, now. As I said last week, a first step would be to cancel the energy price cap rise this autumn.”

Peter Kelly, Director, The Poverty Alliance said: “We are pleased that the First Minister will be convening this summit of energy companies, along with the Poverty Alliance and Energy Action Scotland.

“Across the country, people are increasingly being swept up amid a rising tide of hardship. But with the energy price cap due to increase in October, that tide threatens to become a flood.

“Households up and down Scotland are terrified of what the colder months will bring and the likelihood is that – without further action – lives and life chances will be at risk. The situation could scarcely be more urgent.

“But it is a situation we can do something about, by taking action to protect people most at risk of poverty and deeper hardship. It is that much-needed and urgent action that we are hoping the summit can bring about.”

Frazer Scott, CEO of Energy Action Scotland said: “With our colleagues at the Poverty Alliance, we welcome the First Minister’s intervention in gathering energy companies together to talk about how we can best support households struggling to afford spiralling energy bills.

“Fuel poverty will affect over one million Scottish households this winter requiring urgent intervention focussed on targeting those most in need.

“Cold, damp homes affect health and wellbeing and will put thousands of lives at risk as well as adding additional pressure to the NHS, making this a vital intervention for Scotland.”

The Scottish Government estimates that 906,000 or 36% of all households will be in fuel poverty in October 2022, based on an Ofgem price cap of £2,800 and taking into account previously announced government mitigations.

UK Government: Infected blood victims to receive £100,000 interim compensation payment

Thousands of victims of the infected blood scandal will each receive an interim compensation payment of £100,000, the Government has announced today (17 August).

The UK Government intends to make payments to those who have been infected and bereaved partners in England by the end of October. The same payments will be made in Scotland, Wales and Northern Ireland.

The commitment to pay interim compensation meets, in full, the recommendations set out by inquiry chairman Sir Brian Langstaff in his interim report last month. That report built on the study by Sir Robert Francis QC in his detailed consideration of the issues.  Details were announced by Chancellor of the Duchy of Lancaster Kit Malthouse today.

The intention is that payments will be tax-free and will not affect any financial benefits support an individual is receiving. Infected individuals and bereaved partners who are registered with any of the four UK infected blood support schemes will receive payment. Advice to those people on how exactly the interim payment will be made will be outlined to them shortly.

Prime Minister Boris Johnson said: “While nothing can make up for the pain and suffering endured by those affected by this tragic injustice, we are taking action to do right by victims and those who have tragically lost their partners by making sure they receive these interim payments as quickly as possible.

“We will continue to stand by all those impacted by this horrific tragedy, and I want to personally pay tribute to all those who have so determinedly fought for justice.”

Chancellor of the Duchy of Lancaster Kit Malthouse said: “Those affected by the infected blood scandal have suffered terribly over many years and that heart-breaking and unimaginable pain has been compounded by the financial uncertainty many have faced.

“These interim payments will start the process of securing that certainty. My priority is to get the money to those people as quickly as possible.

“I am grateful to Sir Brian Langstaff for the work he has done to date on the inquiry, and Sir Robert Francis, for his work on compensation. Of course, no amount of money will compensate for the turmoil victims and their loved ones have faced, but I hope these payments help to show that we are on their side and will do everything in our power to support them.”

Health and Social Care Secretary, Steve Barclay, said: “The infected blood scandal should never have happened. In accepting Sir Brian Langstaff’s recommendations, today we are taking an important step in righting this historic wrong for the thousands of people infected and bereaved partners left behind.

“Building on the ongoing support we are providing through the England Infected Blood Scheme, these new interim payments of £100,000 will ensure those impacted across the whole country by this injustice can access the compensation they need, right now.

“I’m grateful to those who have campaigned extensively in support of these changes – we have listened and work is underway to ensure those impacted by this tragedy receive the support they rightly deserve.”

The Government has updated Sir Brian Langstaff that his recommendations have been accepted.

Prime Minister launches ‘Dame Barbara Windsor Dementia Mission’

  • Prime Minister launches national mission to tackle dementia, and doubles research funding to £160 million a year by 2024
  • New taskforce to speed up dementia research, using the successful approach of the Covid Vaccine Taskforce 
  • Prime Minister calls for volunteers to come forward and join ‘Babs’ Army’ by signing up for clinical trials

Prime Minister Boris Johnson has launched a new national mission to tackle dementia and doubled research funding in memory of the late Dame Barbara Windsor.

Dame Barbara’s husband, Scott Mitchell, met with the Prime Minister earlier this week at Downing Street. They discussed the significant suffering caused by dementia and the slow process of finding treatments and cures.

In response, the Prime Minister has launched the ‘Dame Barbara Windsor Dementia Mission,’ in honour of Dame Barbara and the millions of other people and their loved ones who have had their lives ruined by dementia.

An additional £95 million in ringfenced funding will support the national mission, boosting the number of clinical trials and innovative research projects. This will help meet the manifesto commitment to double dementia research funding by 2024, reaching a total of £160 million a year.

The mission will be driven by a new taskforce, bringing together industry, the NHS, academia and families living with dementia. By speeding up the clinical trial process, more hypotheses and potential treatments can be tested for dementia and other neurodegenerative diseases.

The taskforce will build on the success of the Covid Vaccine Taskforce led by Kate Bingham. 

Prime Minister Boris Johnson said: “Dame Barbara Windsor was a British hero. I had the pleasure of meeting her both on the set of Eastenders as Peggy Mitchell, and at Downing Street as we discussed the injustices faced by dementia sufferers.

“I am delighted that we can now honour Dame Barbara in such a fitting way, launching a new national dementia mission in her name.

“Working with her husband Scott, and on behalf of everyone who is living with dementia or has a loved one affected by this devastating condition, I am doubling research funding and calling for volunteers to join ‘Babs’ Army.’ We can work together to beat this disease, and honour an exceptional woman who campaigned tirelessly for change.”

One million people are predicted to be living with dementia by 2025, and 1.6 million by 2040. Up to 40% of dementia cases are potentially preventable but causes are still poorly understood. Dementia can affect the brain years before people show any symptoms, which means treatments need to be tested on people far earlier.

More clinical trials are needed but these are often overly time consuming, with resources wasted on trying to find volunteers.

The Prime Minister has today issued a call for volunteers with or without a family history of dementia to come forward and sign up for clinical trials for preventative therapies, nicknamed “Babs’ Army.’ 

Scott Mitchell, Dame Barbara’s husband, said: “The first in 15 Prime Ministers and over 70 years to grasp the nettle and reform social care, I’m so pleased that Boris had the conviction to do this reform.

“I’m so honoured that not only has he reformed social care, but he’s also committed this new money in Barbara’s name to make the necessary research breakthroughs to find a cure for dementia.

“Barbara would be so proud that she has had this legacy which will hopefully mean that families in the future won’t have to go through the same heart-breaking experience that she and I had to endure. I can’t stop thinking about her looking down with pride.”

Volunteers can register their interest through the Join Dementia Research website. The new taskforce, combined with the extra funding, will work to reduce the cost of trials while speeding up delivery. Existing NIHR infrastructure will be used, building on new ways of working pioneered during covid vaccination clinical trials.

A recruitment process will start this week for a taskforce lead, with the successful candidate focusing on galvanising action while ensuring the best use of tax-payer money.

The new national mission will build on recent advances in biological and data sciences, including genomics, AI and the latest brain imaging technology, to test new treatments from a growing range of possible options.

Researchers will look for signals of risk factors, which could help those who are at risk from developing dementia to understand how they might be able to slow or prevent the disease in the future.

Health and Social Care Secretary, Steve Barclay, said: “Anyone who lives with dementia, or has a loved one affected, knows the devastating impact this condition can have on their daily lives, but for too long our understanding of its causes have not been fully understood.

“By harnessing the same spirit of innovation that delivered the vaccine rollout, this new Dementia mission, backed by £95 million of government funding, will help us find new ways to deliver earlier diagnosis, enhanced treatments and ensure a better quality of life for those living with this disease, both now and in the future.”

Hilary Evans, Chief Executive at Alzheimer’s Research UK, said: “We’re delighted the Government has recommitted to doubling dementia research funding, and that our call for a Dementia Medicines Taskforce to speed up the development of new treatments has been heard.

“This marks an important step towards finding life-changing treatments for dementia and supporting our NHS to be able to deliver these new medicines to the people who need them when they become available.

“We are incredibly grateful to our tireless supporters who have helped keep dementia on the political agenda over the past three years. Over 50,000 people joined us in contacting their MPs, signing petitions, and even writing personal letters to the Prime Minster himself.

“The upcoming 10-year dementia plan is a chance for the next Prime Minster to make sure this funding is met with ambitious action and we look forward to working with the Government to turn it into a reality.”

Downing Street showdown does nothing to address energy cost fears

The Prime Minister, Chancellor Nadhim Zahawi and Business and Energy Secretary Kwasi Kwarteng met industry leaders from the electricity sector yesterday to discuss what more they can do to help people struggling with rising energy prices – but the meeting did nothing to resolve the impending crisis.

The Prime Minister, Chancellor, Business and Energy Secretary stressed the need to act in the interest of the country in the face of rising energy prices caused by Putin’s illegal invasion of Ukraine and how vital it was that the Western world continued to stand by the Ukrainian people during their battle for survival.

The Chancellor and energy firms agreed to work closely over the coming weeks to ensure that the public, including vulnerable customers, are supported as unprecedented global events drive higher energy costs.

Government support worth £37 billion is being provided this year to help people with the rising cost of living, including £1,200 for the most vulnerable households over the course of the year and £400 discounted off everyone’s energy bills from October.

It was noted that the market is not always functioning for consumers, and extraordinarily high bills will ultimately damage energy companies.

As set out in the Energy Security Strategy, the Government has launched a consultation to drive forward market reforms and ensure the market works better for consumers. Discussion focussed on how Government and industry can collectively drive forward reforms to ensure the market delivers lower prices.

The Prime Minister, Chancellor and Business and Energy Secretary emphasised the importance of investing in North Sea oil and gas, renewables, biomass and nuclear to strengthen our domestic energy security.

The Chancellor added the Government continues to evaluate the extraordinary profits seen in certain parts of the electricity generation sector and the appropriate and proportionate steps to take.

The Prime Minister set out that it will be for the next Prime Minister to make significant fiscal decisions.

Prime Minister Boris Johnson said: “Countries around the world are feeling the impact of Putin’s damaging war in Ukraine. We know that this will be a difficult winter for people across the UK, which is why we are doing everything we can to support them and must continue to do so.

“Following our meeting today, we will keep urging the electricity sector to continue working on ways we can ease the cost of living pressures and to invest further and faster in British energy security.

“We are continuing to roll out government support over the coming months, including the second £324 instalment of the cost of living payment for vulnerable households, extra help for pensioners and those with disabilities, and the £400 energy bills discount for all households.”

Chancellor of the Exchequer, Nadhim Zahawi, said: “This morning I hosted industry leaders from the electricity sector to discuss what more they can do to work with Government and act in the interest of the country in the face of rising prices caused by Putin’s illegal invasion of Ukraine.

“We have already acted to protect households with £400 off energy bills and direct payments of £1,200 for 8 million of the most vulnerable British families. In the spirit of national unity, they agreed to work with us to do more to help the people who most need it.”

The meeting was attended by representatives from:

  • EDF
  • RWE
  • E.ON
  • Drax
  • Orsted
  • Uniper
  • National Grid
  • SSE
  • ScottishPower
  • Centrica
  • Octopus Energy
  • Vitol
  • Intergen
  • Greencoat Capital
  • Energy UK

Scottish Government Resilience Room convened to discuss ‘cost emergency’

The First Minister chaired the Scottish Government Resilience Committee yesterday (August 11) to discuss urgent steps to mitigate the growing cost emergency which is affecting people and businesses.

Ministers assessed the current situation and likely scenarios in the months ahead and agreed a number of immediate actions. The Scottish Government will:

  • Continue to maximise the direct financial assistance available to those most in need, principally through ongoing work to extend eligibility for and increase the value of the Scottish Child Payment
  • Undertake an emergency budget review to assess any and all opportunities to redirect additional resources to those most in need, reduce the burdens on business and stimulate the Scottish economy
  • Consider urgently all options within devolved powers for regulatory action to limit increases in costs for people, businesses and other organisations
  • Bring together energy companies, banks and food retailers to examine what further help can be provided by these businesses to limit cost increases and protect those most vulnerable 
  • Work with partners to strengthen the safety net of emergency food/fuel provision, prioritising a ‘cash first’ approach
  • Provide further advice to households on using energy more efficiently and reducing consumption

The Resilience Committee will meet on a weekly basis for the foreseeable future to oversee and direct progress on these immediate actions and keep under ongoing review any further steps that the Scottish Government can take.

In addition to doing everything possible within its powers, the Scottish Government is renewing its call for urgent and substantial action from the UK Government including:

  • An immediate doubling of the direct financial support already provided, with payments made by October. It is estimated that for an out-of-work couple with two children, the payments already announced by the UK Government fall around £1,600 short of meeting the recent changes to benefits and living costs – a gap that must be filled
  • Cancellation of the forthcoming increase in the energy price cap, followed by urgent work between the government and energy companies on energy market reforms and associated financing options to ensure sustainable costs for consumers in the long term
  • The urgent introduction of an energy price cap for Small and Medium Enterprises
  • Support for business to prevent closures due to energy price rises and investment in economic stimulus to minimise the scale of the projected recession
  • A further windfall tax to ensure nationalisation of the profits being made out of the current pressures
  • Additional funding to support public sector pay increases and protect the recovery of public services from the pandemic

The First Minister said: “It is clear that the UK currently faces a rapidly escalating emergency that goes beyond simply the cost of living and is now a more general cost of everything crisis. This emergency may be of a different nature to the COVID-19 pandemic, but it is on a similar scale.

“In the absence of substantial and urgent action, this emergency will cause acute deprivation and suffering. It will affect access to practical necessities for millions of people across the UK. Bluntly, it will cost lives.

“To illustrate the severity of the situation, the Scottish Government estimates that, even with current UK Government mitigations, at least 700,000 households in Scotland – 30% of all households – will be living in extreme fuel poverty by October. That number could be even higher, if the Ofgem price cap for October 2022 is above £2,800. 

“It is essential, therefore, that the response from government at every level is commensurate, in scale and speed, to the nature and magnitude of the emergency.

“In developing a response, governments must first and foremost address immediate need. We must all focus on supporting individuals, businesses and jobs by addressing the principal root causes of the problem.

“Scottish Ministers are clear that the powers and resources needed to tackle this emergency on the scale required – access to borrowing, welfare, VAT on fuel, taxation of windfall profits, regulation of the energy market – lie with the UK Government. This is reflected in the actions we have proposed and set out today.

“At the same time, the Scottish Government will continue to do everything within our resources and powers to help those most affected.”

‘Boris, We Need To Talk’: FM urges action to address cost of living crisis

Sturgeon calls for emergency meeting

The First Minister has sought an emergency meeting of the Prime Minister and Heads of devolved Government Council to agree steps to help people in need as a result of the cost of living crisis.

In a letter to the Prime Minister urging the suggested September meeting be brought forward due to a “fast deteriorating” situation the First Minister made her view clear that “many people across the UK simply cannot afford to wait until September for further action to be taken”.

The meeting between leaders of the devolved governments and the UK Government would provide an opportunity to agree actions that can be taken now and formulate a plan of action for the long term. 

The Scottish Government Resilience Room (SGoRR) will convene this week to discuss what steps can be taken to urgently ease the burden on households across Scotland, both now and in the future.

First Minister Nicola Sturgeon said: “While we will continue to take all actions available to us within devolved responsibilities and budgets – the Scottish Government is investing almost £3 billion this year in a range of measures which will help address the cost of living pressures – it is a statement of fact that many of the levers which would make the biggest difference lie with the UK Government.

“It is also the case that only the UK Government can access and make available resources on the scale required. Therefore, actions by devolved governments alone – though important  – will not be enough to meet the unprecedented challenges we face.  

“Action is needed now to address significant gaps in help for households, in particular those on low incomes, who are increasingly vulnerable to the impact of rising household costs.

“However, it is also vital, given further increases to energy bills due to be announced later this month, that a substantial plan be developed now to avert and mitigate what will otherwise be a crisis of unprecedented proportions – a crisis in which many people will be unable to feed themselves and their families or heat their homes.   

“While few will escape some impact of the cost of living crisis, these impacts are not being experienced evenly. That is why the focus must be on providing targeted support to those most adversely impacted, rather than an irresponsible reduction in broad-based taxes which will benefit the relatively better off over those most in need.

“The current crisis requires clear, focused and determined leadership and co-operation to develop and deliver – at pace – a package of interventions to protect those most impacted.”

The First Minister’s letter to the Prime Minister can be read in full online. 

Council makes £12m bid to boost community projects

Edinburgh is bidding for more than £12m in Shared Prosperity Funding from the UK Government as the Council targets support for a series of poverty-tackling community projects.

From money for employment initiatives and skills development to new measures to help Edinburgh’s most disadvantaged through the cost-of-living crisis, up to 32 projects to reduce inequalities between communities could benefit from funding.

The shortlist also includes an initiative to create a number of new community growing areas, projects designed to support people into work and an innovative ‘GreenTech’ Accelerator programme to promote entrepreneurial skills and new start-ups. A ‘Residents First’ programme of exclusive access to cultural events is also planned, alongside a new youth work space and events for older people at risk of social isolation.

Following the submission of the Council’s investment plan, there will be negotiations with the UK Government before initial funding can be released.  

If successful, the money will be provided by the UK Government under the Shared Prosperity Fund, which aims to build pride in place and increase life chances across the UK by funding projects which support local business, people and skills and boost communities and local places.

Acting as a successor to European Union Structural Funds, it could start supporting projects in Edinburgh as early as this October, all the way through to 2025.

A report outlining the bid was agreed by the Housing, Homelessness and Fair Work Committee on Thursday (4 August).

Councillor Jane Meagher, Housing, Homelessness and Fair Work Convener, said: “Our communities make our city and we’re so lucky to have a great number of incredible people working so hard to support local projects and bring forward new ideas.

“It hasn’t been easy for the panel to narrow this shortlist down and I’m really grateful to everyone involved. They have chosen an exciting and diverse mix of important projects – each and every one of them designed to tackle poverty and improve lives at a local level – and I’m pleased the selection has received Committee’s approval.

“We agreed that we would provide updates on the bid regularly, including the role of under-represented groups. We all want to make sure these efforts are inclusive and support a diverse range of residents.

“This funding allocation really will mean the world to those involved and will allow us to help thousands of people. I’m looking forward to early confirmation from the UK Government on our success with this bid, as I’m keen that we start delivering right away.”

Adult Social Care needs immediate funding injection and long-term plan, says Levelling Up Committee

The UK Government urgently needs to come forward with additional funding this year to help the ravaged adult social care sector meet immediate pressures, including inflation and unmet care needs, says the cross-party Levelling Up, Housing and Communities (LUHC) Committee in a report published last week.

Examining the Government’s charging reforms and local government finance, unpaid carers and workforce challenges, the report says the “message rang clear throughout our inquiry: the adult social care sector does not have enough funding either in the here and now, or in the longer-term”.

The Committee’s report outlines that:

  • On adult social care, the Government currently has nothing more than a vision, with no roadmap, no timetable, no milestones, and no measures of success.
  • The Government should come forward with 10-year plans for how it will achieve its vision outlined in the People at the Heart of Care White Paper and for the adult social care workforce
  • The Government should provide a multi-year funding settlement to give local authorities what they need in terms of their own sustainability and their ability to help shape sustainable local care markets.

Clive Betts, Chair of Westminster’s Levelling Up, Housing and Communities Committee, said: “As Prime Minister, Boris Johnson said he would fix the crisis in social care once and for all.

“The Government deserves credit for attempting reform and for acting to try to prevent the unpredictable and catastrophic costs which can be inflicted upon people for their care. However, the Government should be under no illusions that it has come close to rescuing social care and it needs to be open with the public that there is a long way to go.

“Ultimately, whether it relates to immediate cost pressures or on wider structural issues in the sector, the fundamental problem is that there continues to be a large funding gap in adult social care which needs filling. Those who need care, their loved ones, and care workers deserve better.

“The NHS and adult social care provision should not be pit against one another. The two systems are interdependent and each needs to be adequately funded to reduce pressure on the other. Wherever the money comes from—from allocating a higher proportion of levy proceeds to social care, or from central government grants—the Government urgently needs to allocate more funding to adult social care in the order of several billions each year.”

The report notes the additional pressures of Covid-19 as having exacerbated the underlying structural challenges of rising demand, unmet need, and difficulties in recruiting and retaining staff.

It also notes severe current pressures arising from increases in the National Living Wage and the National Minimum Wage, and from rising inflation. That most of the funding from the Health and Social Care Levy Levy will go to the NHS, and the money that will go to adult social care is for reforms, not cost pressures, is also highlighted in the report.

Addressing the Government’s sector reforms, the report notes the positive stakeholder reception to the vision outlined in the Government’s White Paper on long-term reform of adult social care, titled People at the Heart of Care.

The report commends the Government for introducing many welcome initiatives such as those relating to housing and data which could make a significant difference in the long-term to people’s lives.

The report calls on the Government to publish a 10-year plan for how its vision in the People at the Heart of Care White Paper will be achieved, taking into account how the different policies interweave and affect one another. The Government should also publish a 10-year strategy for the adult social care workforce which includes a clear roadmap with core milestones, outcomes, and measures of success.

The report expresses concerns about the sheer number of reforms and new ways of working in respect of adult social care that involve and affect local authorities. To help local councils deliver the numerous social care reforms, it’s important the Government provides a multi-year funding settlement to give local authorities what they need in terms of their own sustainability and their ability to help shape sustainable local care markets.

The report also calls on the UK Government to publish a new burdens assessment by the end of the year to determine the level of resource needed by local government in terms of staff, expertise, and funding to deliver the full package of adult social care reforms.

The Scottish Government has committed to establishing a functioning National Care Service by the end of this parliamentary term in 2026:

national-care-service-statement-benefitsDownload

Levelling Up reaches the Hebrides

UK Government Minister for Scotland Iain Stewart has visited the Hebrides to meet community groups, businesses and council representatives.

Levelling up was top of the agenda as UK Government Minister for Scotland Iain Stewart visited innovative island businesses and community projects on a five-day visit to Skye, Lewis and Harris, ahead of the inaugural Islands Forum later this year.

Starting his visit in Skye, Minister Stewart met with the Staffin Community Trust and local fishermen to discuss plans to redevelop Staffin Harbour and consider ways the UK Government could support the project. He then headed to Skye’s largest town, Portree, to host a roundtable discussion with representatives from local community groups, where he invited views on how levelling up could enhance the area.

Minister Stewart at Staffin Harbour, Skye

The Minister then made his way to Harris where he paid a visit to the Harris Distillery. He enjoyed hearing about how the island-based enterprise has grown through training and employing young people from the local area, meaning they don’t have to leave the island for work.

Minister Stewart at Harris Distillery

In Lewis, Minister Stewart’s busy itinerary included meeting Comhairle nan Eilean Siar – Western Isles Council – to talk about how levelling up could benefit the local community.

He visited the headquarters of Gaelic Media Service MG Alba to learn about how they are creating premium Gaelic language content, and also paid a visit to Charles Macleod butchers, makers of the world-renowned Stornoway Black Pudding, to discuss their success in exporting from the island.

Minister Stewart meeting Comhairle nan Eilean Siar in Lewis

He also met with Lewis-based Horshader Community Trust, a charity taking forward green initiatives including decarbonising transport and nurturing trees to create woodland. The trust has received more than £70,000 from the Community Renewal Fund to help local residents gain new skills, support the development of two green projects, and work with business partners to strengthen the island’s renewable energy sector.

Minister Iain Stewart said: “It was a pleasure to visit Skye, Lewis and Harris. From discussing plans to regenerate Staffin Harbour, to seeing how the Horshader Community Trust is making Lewis more sustainable, to hearing how the Harris Distillery is supporting jobs for young people, it’s clear these islands have talent, innovation and resourcefulness in droves.

“It’s also clear that the Islands Growth Deal and investment through the UK Government’s Levelling Up Funds are making a real difference in these places, for the benefit of people who live here.

“However, while our island communities have unique strengths, they also face unique challenges. Infrastructure, transport and depopulation are issues that islands often have to contend with, and must be addressed for our rural areas to truly thrive.

“The Islands Forum was set up to discuss these problems. It will give a platform for those who understand remote communities and their needs best, putting islands at the heart of our Levelling Up agenda which has so far resulted in more than £2 billion being invested directly in Scottish projects.”

The UK Government’s first Islands Forum will take place in Orkney later this year. The forum will put islands at the heart of the Levelling Up agenda, with island communities across the UK invited to discuss common challenges including connectivity, infrastructure and demographic trends.

Holyrood appeals for more funding to meet public sector pay deals

Urgent talks sought with the UK Government

The UK Government has been urged to provide additional funding for public sector pay deals or the Scottish Government may be unable to fund equivalent offers without cuts to public services, according to Deputy First Minister John Swinney.

In a letter to the Chancellor of the Exchequer Nadhim Zahawi, Mr Swinney outlines concerns that last year’s UK Spending Review, which determined the majority of the current Scottish Budget, did not take into account the level of pay increase recently proposed by the independent pay review bodies.

Mr Swinney also warned that the UK Spending Review did not consider the wider effects of rising inflation and that without any further funding, the Scottish Government may only be able to propose similar pay rises by reducing budgets elsewhere which would have a knock-on impact on the public sector’s ability to respond more widely to the cost of living crisis.

The letter states:

“I write to notify you that I have taken on responsibility for the Finance and Economy portfolio whilst the Cabinet Secretary, Kate Forbes, is on maternity leave.

“I look forward to working with you and, while I appreciate there may be some limitations on the business of the UK Government pending conclusion of the Conservative leadership process, I am open to engagement with you through this period.  I also appreciate the value of the on-going dialogue between our respective officials.

“There is one urgent issue I would wish to take the opportunity to raise given its importance to the delivery of public services in Scotland.  Further to the joint letter from devolved administration finance ministers to you on 15 July, and in light of the UK Government’s subsequent announcements regarding public sector pay, I am concerned that no associated funding is being provided to meet these additional costs.

“Last year’s UK Spending Review, which as you know determines the majority of the Scottish Budget, did not take account of the levels of pay uplift now proposed or indeed the wider effects of inflation. 

“The associated reduction in spending power across public-sector budgets is deeply worrying for our public services and our capacity to respond to the cost of living crisis, which will undoubtedly bring renewed challenges through the coming autumn and winter period. 

“Given our fixed budgets, our restricted borrowing powers and the inability to change tax policy in year, the lack of additional funding for public sector pay deals via the Barnett Formula means the Scottish Government could only replicate these pay deals for public workers in Scotland with deep cuts to public services.

“I would urge you to consider appropriate funding for public sector pay, and would welcome early discussions with you on this matter.”

On 15 July, the Finance Ministers for the three devolved governments wrote to the Chancellor outlining economic areas of concern ahead of the forthcoming UK Budget.