Westminster’s Treasury Committee is asking for evidence as it examines whether rules are needed to govern the acceptance of physical cash in the UK, ahead of public sessions which could begin in December.
Though the use of cash has declined over recent years, it remains a vital resource to many, with around 3.1 million people in the UK relying almost entirely on cash as a form of payment. Research indicates that the use of cash can provide a vital lifeline to groups such as those with long term poor health or people at risk of economic abuse.
The Bank of England has noted that the decline in cash usage is increasing the infrastructure costs of retaining physical cash as a viable payment method, which could lead to disruption for businesses and consumers.
Others have highlighted the dangers of an overreliance on digital payments, suggesting cash acceptance should be viewed as a form of civil preparedness. There are currently no regulations which require businesses to accept cash.
Evidence submitted to the Committee should seek to answer one or more of the following questions:
What is the current state of, and recent trends in, physical cash acceptance in the UK? Any forecasts on physical cash acceptance would be welcome.
Are there groups in society which disproportionately rely on businesses and public services accepting physical cash?
What challenges do they face?
Should the Government require parts of the economy to always accept physical cash?
Are there individual sectors of the economy where physical cash acceptance is particularly important, and should be protected?
What are the practical challenges that businesses might face from having to always accept physical cash?
How do these challenges differ between large and small businesses?
What would the costs to private firms and the public sector be from any imposed requirements to always accept physical cash?
How might any requirement for certain firms and public services to always accept physical cash affect financial services firms, especially those related to the provision of physical cash?
Are there any other areas or particular sectors where a decline in cash acceptance would cause problems?
Westminster’sJustice and Home Affairs Committee today publishes a letter to the Minister for Policing, Crime and Fire Prevention, Dame Diana Johnson MP, after conducting an inquiry into shop theft.
The Justice and Home Affairs Committee conducted an inquiry into shop theft. The Committee finds that shop theft is an underreported crime that is not being effectively tackled, leading to a devastating impact on the retail sector and the wider economy.
The Committee heard that there are almost 17 million incidents of shop theft annually, with few leading to an arrest and costing the retail sector almost £2 billion last year.
The nature of the offence has evolved from individualised offending to relentless, large-scale, organised operations accompanied by unprecedented levels of violence. Shop theft is now seen as a lucrative profit-making opportunity which is being exploited by organised criminal networks.
There is a widespread perception that shop theft is not treated seriously by the police. The Committee recognises the need for quicker reporting systems, better data collection and intelligence sharing between police forces across the UK.
The Committee welcomes the work of Pegasus, the new national scheme to tackle organised crime in the retail sector and recommends that existing schemes such as Business Crime Reduction Partnerships (linking police and local businesses) should all be part of a National Standards Accreditation Scheme.
The Committee concludes:
The outdated term “shoplifting” serves to trivialise the severity of the offence and should be phased out.
The Committee supports the plan to repeal the offence of “low-value shoplifting” under section 176 of the Anti-Social Behaviour, Crime and Policing Act, which in practice is decriminalising shop theft where the value of the goods does not exceed £200.
The Committee supports the creation of a standalone offence of assaulting a retail worker.
Improved reporting systems are required to enable retailers to report crime to the police quickly and easily.
The Committee recommends improving mechanisms for police and criminal justice systems to recognise and record when a crime has taken place in a retail setting.
Increased funding to community-based reoffending and rehabilitation initiatives are crucial to help divert prolific drug and alcohol addicted offenders away from further offending.
Public awareness campaigns are needed to target the stolen goods market.
The Committee supports the introduction of regulations and best practice guidance for the use of facial recognition technology by private companies.
Lord Foster of Bath, Chair of the Justice and Home Affairs Committee said: “In March 2024, 443,9953 incidents of shop theft were recorded by police – a 30% increase on the previous year and the highest-ever level since comparable records began over twenty years ago.
“But the figures are “a drop in the ocean” when compared with likely real figures estimated at 17 million with devastating consequences for businesses and families.
“The scale of the shop theft problem within England and Wales is totally unacceptable and action, like that underway in the Pegasus scheme, is vital and urgent.
“There’s no silver bullet. But, if adopted, the recommendations in our report should help tackle the problem and help keep the public and our economy safer.”
On 30 October, Chancellor of the Exchequer Rachel Reeves delivered her first Budget in Parliament. Here are 5 things to know:
1. Major funding boost for the NHS
The government is investing £22.6 billion in the NHS over the next two years. This is the biggest increase in NHS spending since 2010 (excluding COVID-19 years) and will help patients to access 40,000 more elective appointments each week as well as upgrades for GP facilities, new surgical hubs, and more diagnostic scans.
2. Protecting working people’s living standards
The Chancellor confirmed that working people will see no changes to their payslips as there will be no increases to Income Tax, VAT, or employee National Insurance. From April 2025, the National Living Wage will rise to £12.21 per hour – that’s £1,400 more per year for full-time workers. Pensioners will benefit from a 4.1% increase in the State Pension, and the fuel duty freeze means continued support for motorists.
3. Investing in Britain’s future
Major infrastructure investment totalling over £100 billion will go towards rebuilding our crumbling schools and hospitals and fixing our roads, including over 1 million potholes. Funding will also support local transport and regional growth as well as boosting our digital infrastructure, so that everyone across the country can access high power broadband.
4. Supporting businesses and economic growth
We are protecting the businesses that make up our high streets by permanently reducing tax on properties used for retail, leisure and hospitality from 2026. In the meantime, the government is supporting these businesses with a 40% reduction in their business rates bill, capped at £110,000.
We are also freezing the small business multiplier for one year to protect over a million small properties from inflationary bill increases. Lastly, the Chancellor confirmed that she will maintain Corporation Tax at 25% for the duration of Parliament – the lowest rate in the G7.
5. Fair and responsible taxation
We are reforming the tax system, closing loopholes and improving HMRC efficiency. The money saved will go directly to funding public services and fixing the foundations of the economy. Finally, this Budget laid out how we will ensure economic stability through new fiscal rules (rules the government sets itself to manage its own decisions on spending and taxes). The new fiscal rules will make sure that the government only borrows for investment and that public sector debt falls over time.
Chancellor ‘takes long-term decisions to restore stability, rebuild Britain and protect working people across Scotland’
No change to working people’s payslips as employee national insurance and VAT stay the same, but businesses and the wealthiest asked to pay their fair share.
Record £47.7 billion for the Scottish Government in 2025/26 includes £3.4 billion through the Barnett formula.
Funding for Green Freeports, City and Growth Deals, GB Energy and hydrogen projects to fire up growth and deliver good jobs across Scotland.
The Chancellor has ‘delivered a Budget to fix the foundations to deliver on the promise of change after a decade and a half of stagnation’. She set out plans to rebuild Britain, while ensuring working people across Scotland don’t face higher taxes in their payslips.
The UK Government was handed a challenging inheritance; £22 billion of unfunded in-year spending pressures, debt at its highest since the 1960s, an unrealistic forecast for departmental spending, and stagnating living standards.
This Budget takes ‘difficult decisions’ to restore economic and fiscal stability, so that the UK Government can invest in Scotland’s future and lay the foundations for economic growth across the UK as its number one mission.
The Chancellor announced that the Scottish Government will be provided with a £47.7 billion settlement in 2025/26 – the largest in real terms in the history of devolution. This includes a £3.4 billion top-up through the Barnett formula, with £2.8 billion for day-to-day spending and £610 million for capital investment.
Secretary of State for Scotland Ian Murray said: “This is a historic budget for Scotland that chooses investment over decline and delivers on the promise that there would be no return to austerity.
“It is the largest budget settlement for the Scottish Government in the history of devolution, including an additional £1.5 billion this financial year and an additional £3.4 billion next year through the Barnett formula. That money must reach frontline services, to bring down NHS waiting lists and lift attainment in our schools.
“It will also bring a new era of growth for Scotland and the whole UK, confirming nearly £890 million of direct investment into Freeports, Investment Zones, the Argyll and Bute Growth Deal, and other important local projects across Scotland’s communities, as well as £125 million next year for GB Energy and support for green hydrogen projects in Cromarty and Whitelee.
“The increase in the minimum wage will also mean a pay rise for hundreds of thousands of workers in Scotland, with the biggest increase for young workers ever. This is on top of our employment rights bill which will deliver the biggest upgrade in workers’ rights in a generation. The triple lock means an increase in the state pension by £470 next year, on top of £900 this year for a million Scottish pensioners.
“The budget protects working people in Scotland, delivers more money than ever before for Scottish public services and means an end to the era of austerity.”
Protecting working people and living standards
While fixing the inheritance requires tough decisions, the Chancellor has committed to protecting the living standards of working people. The decisions taken by the Chancellor to rebuild public finances enable the UK Government to deliver on its pledge to not increase National Insurance or VAT on working people in Scotland, meaning they will not see higher taxes in their payslip.
The National Living Wage will increase from £11.44 to £12.21 an hour from April 2025. The 6.7% increase – worth £1,400 a year for a full-time worker – is a significant move towards delivering a genuine living wage.
The National Minimum Wage for 18 to 20-year-olds will also see a record rise from £8.60 to £10 an hour.
Working people will benefit from these increases, with there estimated to be over 100,000 minimum wage workers in Scotland in 2023.
The Chancellor has made the decision to protect working people in Scotland from being dragged into higher tax brackets by confirming that the freeze on National Insurance Contributions thresholds will be lifted from 2028-29 onwards, rising in line with inflation so they can keep more of their hard-earned wages.
The Chancellor is also protecting motorists by freezing fuel duty for one year – a tax cut worth £3 billion, with the temporary 5p cut extended to 22 March 2026. This will benefit an estimated 3.2 million people in Scotland, saving the average car driver £59, vans £126 and Heavy Goods Vehicles £1,079 next year.
To support Scottish pubs and smaller brewers in Scotland, the UK Government is cutting duty on qualifying draught products by 1p, which represent approximately 3 in 5 alcoholic drinks sold in pubs. This measure reduces duty bills by over £70 million a year, cutting duty on an average strength pint in a pub by a penny. The relief available to small producers will be updated to help smaller brewers and cidermakers.
Over 1 million Scottish pensioners will benefit from a 4.1% increase to their new or basic State Pension in April 2025. This is an additional £470 a year for those on the new State Pension and an additional £360 a year for those on the basic State Pension.
Households eligible for Pension Credit will get £465 a year more for single pensioners and up to £710 a year more for couples due to a 4.1% increase in the Pension Credit Standard Minimum Guarantee, benefitting 125,000 pensioners in Scotland.
Around 1.7 million families in Scotland will see their working-age benefits uprated in line with inflation – a £150 gain on average in 2025-26.
Reducing the maximum level of debt repayments that can be deducted from a household’s Universal Credit payment each month from 25% to 15% will benefit a Scottish family by over £420 a year on average.
Rebuilding Britain
This UK Government will not make a return to austerity and will instead boost investment to rebuild Britain and lay the foundations for growth in Scotland. This includes £130 million of targeted funding for the Scottish Government, of which £120 million is in capital investment.
The Budget delivers on the first step to establish Great British Energy by providing £125 million next year to set up the institution at its new home in Aberdeen – helping to develop new clean energy projects in Scotland and across the UK.
The UK Government will deliver £122 million for City and Growth Deals, including the continuation of its contribution to the Argyll and Bute Growth Deal which delivers £25 million of investment in the region over 10 years. This Deal will be supported by a rigorous value for money assessment as part of the review of the business cases for projects within it, to ensure best value is being delivered.
The Budget gives certainty to local leaders and investors, confirming funding for the Investment Zones and Freeports programmes across the UK – including Scotland’s Green Freeports.
The Chancellor committed the UK Government to working closely with the Scottish Government on the Industrial Strategy, 10-year infrastructure strategy and the National Wealth Fund – to ensure the benefits of these are felt UK-wide and as part of the relationship reset between governments. These will mobilise billions of pounds of investment in the UK’s world-leading clean energy and growth industries.
To support economic growth and promote Scottish culture, products and services through diplomatic and trade networks, the UK Government is allocating £750,000 for the Scotland Office in 2025/26 to champion Brand Scotland as was committed in the manifesto.
We are supporting Scotland’s world-renowned Scotch Whisky industry by providing up to £5 million for HMRC to reduce the fees charged by the Spirit Drinks Verification Scheme and by ending mandatory duty stamps for spirits on 1 May 2025.
Two electrolytic hydrogen projects in Scotland have been selected for UK Government revenue support through the first Hydrogen Allocation Round: Cromarty Green Hydrogen Project and Whitelee Green Hydrogen. Both projects will bring in significant international investment and create good quality, local jobs.
An extension of the Innovation Accelerators programme will support the high-potential innovation cluster in the Glasgow City Region.
A corporate tax roadmap will provide businesses with the stability and certainty they need to make long-term investment decisions and support our growth mission. It confirms our competitive offer, with the lowest Corporate Tax rate in the G7 and generous support for investment and innovation.
The UK Government will also proceed with implementing the 45%/40% rates of the theatre, orchestra, museum and galleries tax relief from 1 April 2025 to provide certainty to businesses in Scotland’s thriving cultural sector.
Repairing public finances
The Chancellor has made clear that, whilst protecting working people with measures to reduce the cost of living, there would be difficult decisions required. The Budget will ask businesses and the wealthiest to pay their fair share while making taxes fairer. This will go directly towards fixing the foundations of the UK economy.
The rate of Employers’ National Insurance will increase by 1.2 percentage points, to 15%. The Secondary Threshold – the level at which employers start paying national insurance on each employee’s salary – will reduce from £9,100 per year to £5,000 per year.
The smallest businesses will be protected as the Employment Allowance will increase to £10,500 from £5,000, allowing Scottish firms to employ four National Living Wage workers full time without paying employer national insurance on their wages.
Capital Gains Tax will increase from 10% to 18% for those paying the lower rate, and 20% to 24% for those paying the higher rate.
To encourage entrepreneurs to invest in their businesses Business Asset Disposal Relief (BADR) will remain at 10% this year, before rising to 14% on 6 April 2025 and 18% from 6 April 2026-27.
The lifetime limit of BADR will be maintained at £1 million. The lifetime limit of Investors’ Relief will be reduced from £10 million to £1 million.
The OBR say changes to CGT raise over £2.5 billion a year and the UK will continue to have the lowest CGT rate of any European G7 country.
Inheritance Tax thresholds will be fixed at their current levels for a further two years until April 2030. More than 90% of estates each year will be outside of its scope. From April 2027 inherited pensions will be subject to Inheritance Tax. This removes a distortion which has led to pensions being used as a tax planning vehicle to transfer wealth rather than their original purpose to fund retirement.
From April 2026, agricultural property relief and business property relief will be reformed. The highest rate of relief will continue at 100% for the first £1 million of combined business and agricultural assets, fully protecting the majority of businesses and farms. It will reduce to 50% after the first £1 million. Reforms will affect the wealthiest 2,000 estates each year. Inheritance Tax reforms in total are predicted by the OBR to raise £2 billion to support stability.
From 2026-27 Air Passenger Duty (APD) for short and long-haul flights will increase by 13% to the nearest pound, a partial adjustment to account for previous high inflation. For economy passengers, this means a maximum £2 extra per short haul flight and tickets for children under the age of 16 remain exempt from APD. APD for larger private jets will be increased by a further 50%. Passengers carried on flights leaving from airports in the Scottish Highlands and Islands region are exempt from APD.
The rate of the Energy Profits Levy will increase to 38% from 1 November 2024 and the levy will now expire one year later than planned, on 31 March 2030. The 29% investment allowance will be removed.
To provide long-term certainty and to support a stable energy transition, the UK Government will make no additional changes to tax relief available within the EPL and a consultation will be published in early 2025 on a successor regime that can respond to price shocks. Money raised from changes to the EPL will support the transition to clean energy, enhance energy security and provide sustainable jobs for the future.
The Budget also announced a package of measures that disincentivise activities that cause ill health, by:
Renewing the tobacco duty escalator which increases all tobacco duty rates by RPI+2% plus an above escalator increase to hand rolling tobacco (totalling RPI+12%).
Introducing a new vaping duty at a flat rate of 22p/ml from October 2026, accompanied by a further one-off increase in tobacco duty to maintain financial incentive to choose vaping over smoking.
To help tackle obesity and other harms caused by high sugar intake, the Soft Drinks Industry Levy will increase to account for inflation since it was last updated in 2018, and the duty will rise in line with inflation every year going forward.
The UK Government will also uprate alcohol duty in line with RPI on 1 February 2025, except for most drinks in pubs.
The UK Government has set out the next steps to deliver its tax manifesto commitments in the July Statement. Having consulted on the final policy details where appropriate, this Budget delivers the UK Government’s manifesto commitments to raise revenue to pay for First Steps, with reforms that are underpinned by fairness, and tackle tax avoidance by:
A new residence-based regime will replace the current non-dom regime from April 2025 and will be designed to attract investment and talent to the UK.
Offshore trusts will no longer be able to be used to shelter assets from Inheritance Tax, and there will be transitional arrangement in place for people who have made plans based on current rules.
The planned 50% reduction for foreign income in the first year of the new regime will be removed.
Reforms to the non-dom regime will raise a total of £12.7 billion according to the OBR.
The tax treatment of carried interest will be reformed by first increasing the Capital Gains Tax rates on carried interest to 32% and then, from April 2026, moving to a revised regime – with bespoke rules to reflect the characteristics of the reward.
The Chancellor also ‘doubled down’ on fiscal responsibility through two new fiscal rules that put the public finances on a sustainable path and prioritise investment to support long-term growth, and new principles of stability. Spending Reviews will be held every two years, setting plans for at least three years to ensure public services are always planned and improve value for money.
One major fiscal event per year will give families and businesses stability and certainty on tax and spending changes, while giving the Scottish Government greater clarity for in its own budget-setting. A Fiscal Lock will also ensure no future government can sideline the OBR again.
Budget marks ‘step in right direction’
Scotland’s Finance Secretary responds to Budget
Finance Secretary Shona Robison has welcomed additional funding in the Autumn Budget, but said the Scottish Government will still face “enormous cost pressures” despite the measures.
The Finance Secretary said: “We called for increased investment in public services, infrastructure and tackling poverty. This budget is a step in the right direction, but still leaves us facing enormous cost pressures going forwards. The additional funding for this financial year has already been factored into our spending plans.
“By changing her fiscal rules and increasing investment in infrastructure, the Chancellor has met a core ask of the Scottish Government. But after 14 years of austerity, it’s going to take more than one year to rebuild and recover – we will need to see continued investment over the coming years to reset and reform public services.
“Indeed, there is a risk that by providing more funding for public services while increasing employer national insurance contributions, the UK Government is giving with one hand while taking away with the other.
“We estimate that the employer national insurance change could add up to £500 million in costs for the public sector unless it is fully reimbursed – and there is a danger that we won’t get that certainty until after the Scottish budget process for 2025/26 has concluded.
“With the lingering effects of the cost of living crisis still hitting family finances, it is disappointing that there was no mention of abolishing the two-child limit, which evidence shows would be one of the most cost-effective ways to reduce child poverty. Neither was there mention of funding for the Winter Fuel Payment.
“As ever, the devil is in the detail, and we will now take the time to assess the full implications of today’s statement. I will be announcing further details as part of the Scottish Budget on 4 December.”
Child Poverty Action Group: Chancellor misses golden chance to scrap two child limit
16 000 more children will now be pulled into poverty by time new UK child poverty taskforce reports in spring
“Good news on universal credit deductions, but no bold action on child poverty”
Barnett consequentials must now be prioritised to fund action on child poverty in Scotland
Responding to the UK Chancellor’s Budget, John Dickie, Director of the Child Poverty Action Group (CPAG) in Scotland, said;“The Chancellor brought good news on universal credit deductions, but this was not a Budget of bold action on child poverty. She missed a golden chance to scrap the two-child limit, a policy that will pull 16,000 extra children into poverty by the time the government’s child poverty taskforce reports in spring.
We welcome the new UK government’s ambition on child poverty but this budget played for time, time that children and families can’t afford. The UK spending review next spring will have to deliver much more to make a significant difference for children in poverty.”
Mr Dickie continued: “Here in Scotland and looking ahead to the Scottish budget it is vital that wider Barnett consequentials are now used to fund the action needed to deliver on the First Minister’s number one priority of ending child poverty.
“That must include funding a real terms increase to the Scottish child payment, expanding childcare provision, delivering on free school meal promises and increasing the supply of affordable family housing.”
POVERTY ALLIANCE:
Responding to today’s UK Budget, Poverty Alliance chief executive Peter Kelly said: “People across the UK believe in a nation based on justice and compassion. Today’s Budget was an opportunity for the Chancellor to turn those values into action, and to rebuild trust in government. Despite some welcome changes, there is still some way to go.
“Boosting the minimum wage is welcome, because for decades workers have been getting less and less from our growing economy. This increase will go some way to making up the gap, particularly for younger workers. But we need to remember that today’s Budget will still leave the legal minimum wages far lower than the real Living Wage rate – the only wage rate that is solely based on the cost of living – of £12.60 per hour, or £13.85 per hour in London.
“We know that too many people on Universal Credit find themselves pushed into destitution when they are chased for debt by public bodies, so it’s good that the maximum amount of benefit that can be taken from them has been reduced. But the Chancellor could have gone further, by strengthening our social security with a boost to Universal Credit that would guarantee that households can afford life’s essentials.
“She could have made it clear that every child matters, by scrapping the unjust and ineffective two-child limit, and ditching the unfair benefit cap which stops households getting all the support they are entitled to.
“There was a welcome focus on the importance of our public services to our shared prosperity and wellbeing. But the Chancellor could have done more to use our country’s wealth to tackle poverty and invest in a better society. Even with today’s changes, people who earn money from selling shares and business assets will pay Capital Gains Tax at a lower rate than workers pay in Income Tax. That’s just wrong.
“Freezing fuel duty and keeping the previous cuts in place will cost the Exchequer billions of pounds a year. It’s bad value for money, benefits the wealthiest in society most, and does little to make the transition to the green economy. The money would have been better invested in affordable, accessible, and sustainable public transport for all.
“It’s right that big companies pay their fair share towards building a strong society, but the Chancellor must urgently consider how increases to employer National Insurance will hit charities and community groups.
“The support and advice provided by these organisations is vital for people who have been pushed into poverty, but too many are already struggling through a lack of fair funding, and this NI increase could push many over the edge.
“That would be a disaster for our communities, and leave more low-income households facing destitution and despair.”
TUC: Labour’s investment budget has begun process of “repairing and rebuilding Britain”
Union body says budget is a vital first step towards the growth, jobs and living standards working people desperately need
Commenting on Wednesday’s budget statement from the Chancellor Rachel Reeves, TUC General Secretary Paul Nowak said: “The Chancellor was dealt a terrible hand by the last Conservative government – a toxic legacy of economic chaos, falling living standards and broken public services.
“But with today’s budget the Chancellor has acted decisively to deliver an economy that works for working people.
“The government’s investment plans are a vital first step towards repairing and rebuilding Britain – securing the stronger growth, higher wages and decent public services that the country desperately needs.
“Tax rises will ensure much-needed funds for our NHS, schools and the rest of our crumbling public services, with those who have the broadest shoulders paying a fairer share. The Chancellor was right to prioritise hospitals and classrooms over private jets.
“There is still a lot more work to do to clean up 14 years of Tory mess and economic decline. – including better supporting and strengthening our social security system. But this budget sets us on an urgently needed path towards national renewal.”
Shelter Scotland has responded to the UK budget set out this afternoon by Chancellor Rachel Reeves.
The housing and homelessness charity urged the Scottish Government to commit to investing any new capital funding into delivering the social homes needed to end the housing emergency.
However, it also expressed disappointment at the continuation of the two-child limit and ongoing freeze to Local Housing Allowance.
Shelter Scotland Director, Alison Watson, said:“Having declared a housing emergency it’s clear that the Scottish Government must back words with actions.
“It is vital that any capital funding which becomes available as a result of the Chancellor’s investment plans is in turn used by Scottish Ministers to deliver social homes here, but we also need to see growth in the capital budget over a sustained period to support continued investment.
“Delivering more social homes remains the single most effective way to tackle the housing emergency in Scotland, and only the Scottish Government can decide how much of its budget it commits to that endeavour.
“However, we can’t ignore the role that austerity has played in exacerbating Scotland’s housing emergency.
“The freeze on local housing allowance and the two-child limit has forced thousands into poverty; they will continue to do so as it seems the Chancellor has chosen to keep them in place.”
COSLA:
ONE PARENT FAMILIES SCOTLAND:
Scotch Whisky industry says UK government has broken commitment to ‘back Scotch producers to the hilt’
Chancellor increases discrimination of Scotch Whisky and other spirits in on-trade
The Scotch Whisky Association (SWA) says the Chancellor’s decision to further increase duty on Scotch Whisky has broken the Prime Minister’s commitment to ‘back Scotch producers to the hilt.’
In her first Budget, Chancellor Rachel Reeves announced an RPI inflation increase to alcohol duty, but cut duty on draught products in the on-trade by 1.7%. Scotch Whisky and other spirits are excluded from this tax relief.
The SWA had called on the new Chancellor to take the opportunity to reverse the damage done by the 10.1% increase in August 2023. Instead, the damage done to the industry and to government revenue has been compounded by further increasing the tax burden on the sector, which is already the highest in the G7.
Spirits revenue fell by hundreds of millions of pounds as a result of the 10.1% duty increase last year, and the industry has warned that this further tax hike will not deliver the revenue ministers have been promised but will hurt businesses, the hospitality sector and hard-pressed consumers.
Commenting on the Budget, Chief Executive of the SWA Mark Kent said:“This duty increase on Scotch Whisky is a hammer blow, runs counter to the Prime Minister’s commitment to ‘back Scotch producers to the hilt’ and increases the tax discrimination of Scotland’s national drink.
“On the back of the 10.1% duty increase last year, which led to a reduction in revenue for HM Treasury, this tax hike serves no economic purpose. It will damage the Scotch Whisky industry, the Scottish economy, and undermines Labour’s commitment to promote ‘Brand Scotland’.
“She has also increased the tax discrimination of spirits in the Treasury’s warped duty system, and with 70% of UK spirits produced in Scotland, that will do further damage to a key Scottish sector.
“The disastrous 10.1% duty hike last year has now been compounded. This further tax rise means the lessons have not been learned, and the Chancellor has chosen continuity with her predecessor, not change.
“We urge all MPs who support Scotch Whisky to vote against this duty hike and tax discrimination of Scotland’s national drink.”
Rain Newton-Smith, CBI Chief Executive, said:“The Chancellor had difficult choices to make to deliver stability for the economy and public finances. A more balanced approach to our fiscal rules which prioritises capital investment should help to unlock private sector investment in our infrastructure and net zero transition over the long-term.
“This is a tough Budget for business. While the Corporation Tax Roadmap will help create much needed stability, the hike in National Insurance Contributions alongside other increases to the employer cost base will increase the burden on business and hit the ability to invest and ultimately make it more expensive to hire people or give pay rises.
“Only the private sector can provide the scale of investment required to deliver the government’s growth agenda.
“To achieve this shared mission of growing our economy sustainably, it’s vital that the government doubles down on its partnership with business to unlock the investment that is needed to drive opportunity around the UK.”
FSB: Employment allowance rise welcome from Chancellor in tax-raising Budget
The Federation of Small Businesses responds to the Chancellor’s Budget statement
Responding to the Chancellor’s Budget statement, Policy Chair of the Federation of Small Businesses (FSB), Tina McKenzie, said: “Increasing the employment allowance for small businesses by a record amount is a very welcome move and we’re pleased the Chancellor has heard us loud and clear.
“More than doubling it, from £5,000 to £10,500, will shield the smallest employers from the jobs tax, therefore is a pro-jobs prioritisation in a tough Budget.
“The decision to protect small businesses from an inflationary hike in business rates – by freezing the small business multiplier – will help small firms with premises across all sectors. Meanwhile, extending business rates relief, albeit at a lower level, for small firms in retail, hospitality and leisure will mitigate a potential cliff-edge tax hike for those in some of the toughest sectors.
“The true test of today’s Budget will be whether small businesses can grow and end the economic stagnation the UK has been stuck in.
“Larger small, and medium-sized, businesses will struggle with the rises on employer national insurance on top of the large costs from the Government’s employment law plans. We’ve been very clear in our warning of the difficulty SMEs will be confronted with in meeting all of these changes at once – and the potential impact on jobs, wages and prices.
“The Budget documents include plans for a small business strategy command paper, which is a welcome signal that ministers appreciate the central role that small businesses play in driving growth and we look forward to working with the Government closely on that.
“Investment in infrastructure is key to future growth, and the Chancellor’s announcement of additional funding for rail projects and fixing potholes is therefore encouraging. Many small firms, meanwhile, will be relieved at the decision not to raise fuel duty. The commitment to prioritise small housebuilders when it comes to housing investment is also welcome.
“Building a business involves a significant element of risk and personal, as well as financial, investment. But for the economy to grow, we need more people to be incentivised to take that leap and, in turn, create jobs, opportunities and prosperity in all communities across the country.
“The right decision has been taken to retain entrepreneurs’ relief (now branded Business Asset Disposal Relief) up to £1million, which is something we have campaigned hard for. Although the level of relief will gradually reduce over time, resulting in more tax being paid in the future on business sales, we’re pleased to see a differential has been kept.
“Against a challenging backdrop, today’s Budget shows a clear direction in business policy now for the whole of this Parliament to target support at small businesses, rather than big corporates – prioritising everyday entrepreneurs working in local communities in all parts of the country.”
UK Budget fails “3 Key Tests for Scotland”, say Alba Party
Scottish Government must now fund universal entitlement to pensioners winter fuel payment
“To gain pass marks the new UK Labour Government had three key tests to meet in Scotland: it had to reverse its plan to cut the universal winter fuel payment; it had to save Grangemouth; and it had to fund a plan to save North Sea Oil and Gas jobs – on all three counts Labour has failed Scotland.”
This was said today by Acting Alba Party leader Kenny MacAskill reacting to Chancellor Rachel Reeves’ budget.
Alba Party say that the UK Government had three key tests to meet to deliver for Scotland. Former First Minister Alex Salmond helped launch a campaign to save the winter fuel payment last month.
Close to one million pensioners in Scotland are set to lose out on between £200-£300 this winter. Acting Alba Party leader Kenny MacAskill has been a leading voice in the campaign to save the Grangemouth Oil Refinery from closure.
Mr MacAskill has today hit out at the UK Government after Labour promised in the General Election to save Scotland’s only refinery that is set for closure next year but has failed to provide funding to save the refinery in today’s budget.
MacAskill has now called on the Scottish Government to use extra Barnett consequential funding to fully mitigate the cut to the winter fuel payment.
Alba Party have also hit out as successive UK Government’s have promised investment in Carbon Capture Technology in the North East of Scotland. Alba say the technology is vital to secure the future of the North Sea Oil and Gas industry and to help Scotland play its part in protecting the environment. Today’s UK Budget confirmed £22billion of investment in carbon capture projects in England – but snubbed the Acorn project on the Buchan coast.
Commenting Acting Alba Party leader Kenny MacAskill said: ““Today’s UK Budget is a continuity budget that proves that regardless of whether we have a UK Tory Government or a UK Labour Government, Scotland will always lose.
“To gain pass marks the new UK Labour Government had three key tests to meet in Scotland: it had to reverse its plan to cut the universal winter fuel payment; it had to save Grangemouth; and it had to fund a plan to save North Sea Oil and Gas jobs – on all three counts Labour has failed Scotland.
“ Close to a million Scottish pensioners are to be kept in the cold this winter, the UK Government has chosen to stand by and allow Scotland’s key industrial asset to close, and Labour have betrayed the North East of Scotland.
“ Nothing for Scotland’s pensioners, nothing for Grangemouth and nothing for Carbon Capture and the North Sea. It is now vital that the Scottish Government steps up to the plate and uses any additional funding consequentials it receives to fully mitigate the cut to the winter fuel payment.”
Budget is a ‘Missed Opportunity’
The budget is a missed opportunity to bring about the transformative change this country needs, said Westminster’s group of independent MPs.
A statement from the Independent Alliance:
LOCAL GOVERNMENT INFORMATION UNIT:
Dr Jonathan Carr-West, Chief Executive, LGIU, said: “The Chancellor billed this as an historically consequential budget of hard choices. That’s certainly true in many areas with £40bn of tax rises announced and significant changes to the government’s debt rules.
“For local government, however, it is a budget of choices deferred. It could have been worse – there’s an additional £1.3bn in funding including money for social care and additional funding for housing and special educational needs: the very areas that are driving many councils to bankruptcy.
“But this extra funding is not even half the gap that councils currently face.
“The longer-tem change that the sector desperately needs is all deferred for now. We are waiting on the Local Government Finance Settlement, on the Devolution White Paper and on a broader redistribution of funding through a multi-year settlement from 2026-27.
“There were some welcome highlights: retaining 100% of right to buy receipts and integrated settlements for Greater Manchester and the West Midlands and possibly for other places in future.
“Is this a start? Yes. Is it enough? Not by a long shot. At least not yet. There’s a positive direction of travel set out, but there’s a long way to go and the pressure on council finances means there’s a real risk that some councils will not be able to hang on long enough to get there.”
Chancellor confirms the NHS will receive funding needed to deliver extra 40,000 elective appointments per week
Chancellor and Health Secretary confirm funding plans to increase elective appointments ahead of the Budget tomorrow.
New funding and reform puts the NHS on course to reduce waiting lists.
Additional capital investment will further support reduced waiting times, with £1.5bn for new surgical hubs and scanners, alongside £70 million for new radiotherapy machines.
Funding to support the delivery of an extra two million NHS operations, scans and appointments a year to significantly cut waiting lists across England has been announced by the Chancellor and Health Secretary today. This comes following over a decade of neglect and underinvestment of the NHS.
Ahead of her Budget on Wednesday, the Chancellor has confirmed that the NHS will receive the funding needed to deliver an extra 40,000 elective appointments per week, delivering on one of the Government’s First Steps in office to reduce waiting times in the NHS. This includes an additional £1.8bn the government has invested in elective activity this year since the July Statement.
This will be supported by a significant uplift of capital investment, with new capacity including surgical hubs and scanners, meaning thousands of additional procedures and millions of diagnostic tests across the country, alongside funding for new radiotherapy machines to improve cancer treatment.
In his recent independent investigation into the NHS in England, Lord Darzi highlighted that the NHS is in “critical condition”. Patients across England are waiting too long, with the waiting list at over 7.6 million in August. In the same month, over 280,000 had been waiting for an operation, scan or appointment for over a year.
Today’s announcement is an integral step in reducing the waiting list and puts the NHS on course to meet the commitment that 92% of people wait less than 18 weeks to start treatment in the NHS.
The Chancellor’s budget tomorrow will set out how this government will fix the foundations to deliver change, by fixing the NHS and rebuilding Britain, while ensuring working people don’t face higher taxes in their payslips.
It will focus on “investment, investment, investment” in order to get the economy moving again and demonstrate how this government will take the long-term decisions needed to grow the economy and restore the country’s public services.
Chancellor of the Exchequer Rachel Reeves said: “Our NHS is the lifeblood of Britain. It exemplifies public services at their best, there for us when we need it and free at the point of use, for everyone in this country.
“That’s why I am putting an end to the neglect and underinvestment it has seen for over a decade now.
“We will be known as the government that took the NHS from its worst crisis in its history, got it back on its feet again and made it fit for the bright future ahead of it.”
Health and Social Care Secretary Wes Streeting said: “Our NHS is broken, but it’s not beaten, and this Budget is the moment we start to fix it.
“The Chancellor is backing the NHS with new investment to cut waiting lists, which stand at an unacceptable 7.6 million today. Alongside extra funding, we’re sending crack teams of top surgeons to hospitals across the country, to reform how they run their surgeries, treat more patients, and make the money go further.”
Building an NHS fit for the future is one of this Government’s five priority missions; but it is clear that alongside sustainable investment, the NHS will need significant reform across the board to be truly transformed.
The Chancellor has therefore confirmed an ambitious reform programme across health and social care in England, including reforming the delivery of elective activity and patient pathways. Billions of pounds are set to be invested in technology and digital innovations across the NHS to boost productivity and unlock significant savings for the NHS in the long-term.
The funding comes after the Government last week launched ‘Change NHS: help build a health service fit for the future’, a national conversation to help develop the 10 Year Health Plan, which will set out our long-term vision for health and the path to delivering the three shifts to reform and transform health: hospital to community, analogue to digital, and sickness to prevention.
Starting this week, the NHS will help people back to health and back to work by sending teams of top clinicians to hospitals across the country to help roll out reforms to cut waiting lists in hospitals – which will start with those in areas of the highest economic inactivity.
Ministers have unveiled the Employment Rights Bill to help deliver economic security and growth to businesses, workers and communities across the UK
Legislation introduced in Parliament to upgrade workers’ rights across the UK, tackle poor working conditions and benefit businesses and workers alike
Ahead of International Investment Summit, government reveals landmark reforms in under 100 days to boost pay and productivity, showing the benefits of a ‘pro-business, pro-worker’ approach
New balance for early months of a job at heart of pragmatic reforms to help drive growth in the economy and support more people into secure work
Employment Rights Bill will end exploitative zero-hour contracts and unscrupulous fire and rehire practices, while establishing rights to bereavement and parental leave from day one
Today (10 October) ministers have unveiled the Employment Rights Bill to help deliver economic security and growth to businesses, workers and communities across the UK.
Getting the labour market moving again is essential to economic growth with one in five UK businesses with more than 10 employees reporting staff shortages. Flexibility, for workers and businesses alike, is key to answering this challenge and is at the heart of the legislation to upgrade the law to ensure it is fit for modern life and a modern economy.
The existing two-year qualifying period for protections from unfair dismissal will be removed, delivering on the manifesto commitment to ensure that all workers have a right to these protections from day one on the job.
The government will also consult on a new statutory probation period for companies’ new hires. This will allow for a proper assessment of an employee’s suitability to a role as well as reassuring employees that they have rights from day one, enabling businesses to take chances on hires while giving more people confidence to re-enter the job market or change careers, improving their living standards.
The bill will bring forward 28 individual employment reforms, from ending exploitative zero hours contracts and fire and rehire practices to establishing day one rights for paternity, parental and bereavement leave for millions of workers. Statutory sick pay will also be strengthened, removing the lower earnings limit for all workers and cutting out the waiting period before sick pay kicks in.
Accompanying this will be measures to help make the workplace more compatible with people’s lives, with flexible working made the default where practical. Large employers will also be required to create action plans on addressing gender pay gaps and supporting employees through the menopause, and protections against dismissal will be strengthened for pregnant women and new mothers.
This is all with the intention of keeping people in work for longer, reducing recruitment costs for employers by increasing staff retention and helping the economy grow.
A new Fair Work Agency bringing together existing enforcement bodies will also be established to enforce rights such as holiday pay and support employers looking for guidance on how to comply with the law.
Deputy Prime Minister Angela Rayner said: “This government is delivering the biggest upgrade to rights at work for a generation, boosting pay and productivity with employment laws fit for a modern economy.
“We’re turning the page on an economy riven with insecurity, ravaged by dire productivity and blighted by low pay.
“The UK’s out-of-date employment laws are holding our country back and failing business and workers alike. Our plans to make work pay will deliver security in work as the foundation for boosting productivity and growing our economy to make working people better off and realise our potential.
“Too many people are drawn into a race to the bottom, denied the security they need to raise a family while businesses are unable to retain the workers they need to grow. We’re raising the floor on rights at work to deliver a stronger, fairer and brighter future of work for Britain.”
Business Secretary Jonathan Reynolds said: “It is our mission to get the economy moving and create the long term, sustainable growth that people and businesses across the country need. Our plan will give the world of work a much needed upgrade, boosting pay and productivity.
“The best employers know that employees are more productive when they are happy at work. That is why it’s vital to give employers the flexibility they need to grow whilst ending unscrupulous and unfair practices.
“This upgrade to our laws will ensure they are fit for modern life, raise living standards and provide opportunity and security for businesses, workers and communities across the country.”
Alongside the legislation, a ‘Next Steps’ document for the Make Work Pay Plan has been published outlining the government’s vision and long-term plans and setting out our ambitions for the plan to grow the economy, raise living standards across the country and create opportunities for all.
Ending one-sided flexibility
The legislation will level the playing field where all parties understand what is required of them and good employers aren’t undercut by bad ones.
The bill will end exploitative zero hours contracts, following research that shows 84% of zero hours workers would rather have guaranteed hours. They, along with those on low hours contracts, will now have the right to a guaranteed hours contract if they work regular hours over a defined period, giving them security of earnings whilst allowing people to remain on zero hours contracts where they prefer to. According to TUC research nearly two thirds of managers (64%) believe ending zero hours contracts would have a positive impact on their business.
Ending unscrupulous employment practices is a priority for this government and none more so than shutting down the loopholes that allow bullying fire and rehire and fire and replace to continue. The government is closing these loopholes and putting in place measures to give greater protections against unfair dismissal from day one, ensuring that the feeling of security at work is no longer a luxury for the privileged few.
This bill turns the page on the previously ineffective, costly and conflicting approach to dealing with industrial relations that has brought so much disruption to businesses and livelihoods. lt repeals the anti-union legislation put in place by the previous administration, including the Minimum Service Levels (Strikes) Act legislation that failed to prevent a single day of industrial action while in force.
Employment Rights Minister Justin Madders said: “We know that most employers proudly treat their staff well. However, for decades as the world of work has changed, employment rights have failed to keep pace, with an increase in one-sided flexibility slowing the potential for growth in the economy.
“The steps we’re taking today will finally right these wrongs, working in partnership with business and unions to kickstart economic growth that will benefit them, their workers and local communities.
“From tackling fire and rehire to ending exploitative zero hours contracts, we are delivering a modern economy that drives up living standards for families across the UK.”
Supporting working families
Too many people find that the current system isn’t compatible with the realities of everyday life, whether that’s raising children or supporting a loved one with a health condition. The government wants to make sure that everyone can get on in work and not be held back because work isn’t compatible with important family responsibilities.
That is why the government will:
Change the law to make flexible working the default for all, unless the employer can prove it’s unreasonable.
Set a clear standard for employers by establishing a new right to bereavement leave, with the entitlement sculpted with the needs of employees and the concerns of employers at the forefront.
Deliver stronger protections for pregnant women and new mothers returning to work including protection from dismissal whilst pregnant, on maternity leave and within six months of returning to work.
Tackle low pay by accounting for cost of living when setting the Minimum Wage and remove discriminatory age bands.
Establish a new Fair Work Agency that will bring together different government enforcement bodies, enforce holiday pay for the first time and strengthen statutory sick pay. It will create a stronger, recognisable single organisation that people know where to go for help – with better support for employers who want to comply with the law and tough action on the minority who deliberately flout it.
Beyond the bill
The Make Work Pay Plan doesn’t stop with this bill. Continuing to reform employment rights in line with changes to the economy and labour market is critical to maintaining growth, prosperity and opportunity. As an outlook to the future, the government has also today published a Next Steps document that outlines reforms it will look to implement in the future.
Subject to consultations, this includes:
A Right to Switch Off, preventing employees from being contacted out of hours, except in exceptional circumstances, to allow them the rest and get the recuperation they need to give 100% during their shift.
A strong commitment to end pay discrimination by expanding the Equality (Race and Disparity) Bill to make it mandatory for large employers to report their ethnicity and disability pay gap.
A move towards a single status of worker and transition towards a simpler two-part framework for employment status.
Reviews into the parental leave and carers leave systems to ensure they are delivering for employers, workers and their loved ones.
Responding to the government’s initiative, these businesses and employee groups have said:
Shirine Khoury-Haq, CEO of the Co-op, said: “We support the Government’s ambitions to strengthen rights for workers and value the co-operative approach to involve employers in the reforms.
“As the UK’s largest consumer co-operative, Co-op has long supported colleagues to have good working lives, with policies like our leading bereavement leave, day one right to request flexible working arrangements, and menopause support already in place. The positive impact of these policies is clear to see.
“Being able to support colleagues when they need it, and in particular women, parents and carers, helps retain valuable talent and makes good business sense. We look forward to continuing to work with Government to make work pay and to deliver economic growth.”
Paul Nowak, TUC General Secretary, said: “After 14 years of stagnating living standards, working people desperately need secure jobs they can build a decent life on.
“Whether it’s tackling the scourge of zero-hours contracts and fire and rehire, improving access to sick pay and parental leave, or clamping down on exploitation – this Bill highlights the Government’s commitment to upgrade rights and protections for millions.
“Driving up employment standards is good for workers, good for business and good for growth. While there is still detail to be worked through, it is time to write a positive new chapter for working people in this country.”
Jane van Zyl, CEO at Working Families, said: “As campaigners for better rights for working parents and carers, we’re pleased there is hope on the horizon for the millions who stand to benefit from the transformational changes in the proposed Employment Bill.
“Establishing workplace rights from day one and making flexible working the default could be the key to unlocking labour market mobility, with the promise of getting the economy moving and ensuring parents and carers are not held back in their careers.
“In addition, we welcome any strengthening of legislation that helps protect pregnant women and new mothers against losing their jobs unfairly at a vulnerable time in their lives.
“The proposals in the Plan to Make Work Pay have the potential to remove barriers in the workplace, give a better start for new parents and reduce gendered roles in caring. The message it sends that worker’s rights matter, and the willingness to address inequalities, is very promising.”
Simon Roberts, Chief Executive of Sainsbury’s, said: “As one of the UK’s largest employers we put our colleagues at the heart of everything we do. We see the clear link between engaged, motivated colleagues and business performance and that is why we have increased colleague pay by over 50% in the last 5 years.
“We share the Government’s vision of making work pay, enabling growth and driving productivity. We welcome today’s announcement and Government engagement with business to date and look forward to seeing progress on business rates reform, which would deliver real benefits for our colleagues, customers and communities.”
Peter Cheese, Chief Executive of CIPD, the professional body for HR and Learning & Development professionals, said: “We share the Government’s ambition to raise employment standards and job quality through the Employment Rights Bill as part of the wider Make Work Pay agenda.
“The changes being proposed represent the greatest update in employment legislation in decades. We’re pleased to see the ongoing commitment from Government to engage with the business community to work through the important details to ensure they have a positive impact for both employers and workers.”
Jemima Olchawski, CEO of Fawcett Society, said: “Today’s draft employment bill is a win for women. Fawcett and our members have campaigned long and hard to see government chart a new course for inclusive economic growth and to improve women’s working lives.
“We share this government’s ambition to ensure all women can thrive at work and fully contribute to the economy.”
Mark Reynolds, Mace Group Chair and Chief Executive, said: “Ensuring British workers are supported with strong employment rights benefits everyone – employers as well as employees.
“This package of reforms is a welcome insight into the Government’s plans and show that they have engaged extensively with businesses and taken a pragmatic approach. We’re pleased to support it; both on behalf of Mace and the wider construction industry. We look forward to working closely with the Government as they take these plans forward.”
Brian McNamara, CEO of Haleon, said: “It is crucial that the Government continues to engage with the business community on such an important piece of legislation and we welcome the dialogue to date.
“Haleon is committed to creating an inclusive culture that provides all employees with equal opportunities. This is central to our company strategy and will be core to our future success.”
Greg Jackson, CEO of Octopus Energy, said: “In formulating these proposals it’s clear that the government has listened to both workers and employers to create protections against bad practices while enabling good businesses to invest in growth and training.
“For example, the probation period will allow progressive employers to give a chance to people without typical experience or educational backgrounds, opening up new opportunities for them in great careers.”
Chris O’Shea, CEO of Centrica, said: “As the largest Unionised workforce in the energy sector, we are pleased to see the Government publish their landmark legislation providing more rights and flexibility to employees.
“At Centrica, we offer a range of policies to support our 21,000 colleagues including flexible working and health and wellbeing support from day one, a leading 10 days paid carers policy, our Pathway to Parenthood which offers comprehensive financial support towards fertility treatment alongside paid leave to for any fertility, adoption or surrogacy appointments, and additional support for neurodivergent colleagues.
“It’s the right thing to do and we want to help our employees and share best practices with others. Our experience shows that there is a clear business case for doing this with savings from increased retention and ensuring colleagues don’t have to take unplanned absences.”
Helen Dickinson OBE, CEO of the British Retail Consortium, said: “As the country’s largest private sector employer, employing three million people, the industry stands ready to work with government to ensure these reforms are a win:win for employers and colleagues, and maximise employment opportunities, investment, and growth.
“Many of the expected provisions, including stopping exploitative contracts and offering flexibility in employment, are things that responsible retailers already do. Introducing these standards for everyone means good employers should be competing on a level playing field.
“We look forward to engaging the government on the details, including around seasonal hiring and the use of probation periods.”
Kate Nicholls, CEO of UKHospitality, said: “I’m pleased the Government has recognised the importance of flexibility to both workers and businesses. This is crucial for hospitality, which employs 3.5m people and provides countless flexible roles for working parents, students, carers and many more.
“We look forward to continuing our engagement and consultation with the Government on its plans, which are not without cost, to get the details right for all parties.”
A BT Group spokesperson, said: “BT Group believes that a strong economy is one that works for everyone, and has already adopted many of the measures that will be covered by this legislation.
“It will be crucial to get the details right, to avoid unintended consequences and keep the UK competitive, and we welcome the constructive, consultative approach that the Government is taking.”
Not all employers’ organisations are rejoicing, however. The Federation for Small Businesses (FSB) says the legislation will be devastating for the industry.
UK Government urged to reverse ‘damaging’ decision
The UK Government’s decision to introduce means testing for the Winter Fuel Payment must be reversed, according to MSPs.
Following a debate as part of Challenge Poverty Week, the Scottish Parliament voted in favour of a motion that the UK Government reverse its decision to restrict entitlement to the benefit. Labour MPs Richard Leonard and Alex Rowley supported the motion.
Fourteen Scottish Labour MSPs, including Edinburgh MSPs Sarah Boyack, Foysol Choudhury and Daniel Johnson, voted with their leader Anas Sarwar against the motion.
First Minister John Swinney said that as a result of this damaging decision, Scottish Government analysis indicates roughly 900,000 Scottish pensioners will no longer be entitled to support with heating costs this winter.
Commenting after the debate, the First Minister said: “More austerity is not the solution to the restrictive fiscal environment in which the UK Government, and governments across the globe, find themselves.
“It is a mistake to think that action to tackle poverty for our most vulnerable citizens are costs to be mitigated. These measures are investments in our people, our communities and our nation’s future. I have urged the UK Government to deliver an Autumn Budget that recognises this reality.
“Scotland’s Parliament has spoken, and I repeat my call for the UK Government to reverse its damaging decision to restrict entitlement to Winter Fuel Payments for pensioners.
“The Scottish Government will continue to support households with their energy bills and tackle fuel poverty. However the UK Government must ensure their budget in October provides the necessary support to those who need it most.”
Edinburgh North and Leith MP Tracy Gilbert has today called for the GB Energy Satellite Site due to be located in Edinburgh to be based in Leith.
The UK Labour Government was elected on a manifesto to establish Great British Energy, a publicly-owned energy generation company. Last month, the Prime Minister announced that GB Energy would be headquartered in Aberdeen with two satellite sites – one based in Edinburgh and another in Glasgow.
GB Energy is one of the key ways the UK Labour Government is decarbonising the economy while ensuring energy security and lower energy bills in the long term.
Today in the House of Commons, Tracy Gilbert MP called for the Edinburgh site to be located in Leith due to growing renewables sector that has already developed in the area.
In the House of Commons, Tracy Gilbert MP asked, “Can I welcome the actions outlined by my right honourable friend. In particular, I would like to welcome the announcement over the conference recess that GB Energy will be headquartered in Aberdeen with satellite sites in Edinburgh and Glasgow.
“Can my right honourable friend outline the role he expects the satellite sites will have and given the investment already underway at the Port of Leith, the number of renewables companies already based in Leith and the potential for supply chains and manufacturing nearby will he consider locating the Edinburgh site in Leith?”
Speaking after her question, Tracy Gilbert MP said, “The transition to renewables is already taking place across Edinburgh and Leith, from the multi-million pound investment at the Port of Leith to support renewable infrastructure as part of the Forth Green Freeport deal.
“Alongside the number of renewables companies and manufacturers based locally and with the proximity to research and academic Leith is the ideal place for a GBE satellite site.
“I look forward to working with stakeholders in Leith to make the case for Leith to be chosen as the location for the GBE satellite site.”
The full exchange between Tracy Gilbert MP and the Secretary of State for Energy Security and Net Zero can be found here:
Leaders from across the UK will come together in Scotland next Friday (11 October) as the Prime Minister convenes the first Council of Nations and Regions.
Prime Minister convenes leaders from across the UK for Council of the Nations and Regions in Scotland on Friday 11 October.
Council to focus on maximising opportunities to deliver investment and growth across the UK.
Comes as speakers are confirmed for the UK Government’s inaugural International Investment Summit.
Leaders from across the UK will come together in Scotland next Friday as the Prime Minister convenes the first Council of Nations and Regions.
Three days ahead of the International Investment Summit, the first Council will focus on investment and growth and is a key moment to ensure everyone is collectively playing their part to maximise the opportunity the Summit presents for the whole of the UK.
The Council brings together First Ministers, Northern Ireland’s First Minister and Deputy First Minister and regional Mayors from across England, as the UK Government forges new partnerships, resets relationships and seizes the opportunity to secure long term investment with the aim of boosting growth and living standards in every part of the UK.
Prime Minister Keir Starmer said: I’m determined to bring forward a new era of stability, trust, and partnership with businesses, investors, Devolved Governments, and local leaders to boost the economy and restore the UK’s reputation one of the best places in the world to do business.
“I’ve set out that we will be doing things differently, and that’s exactly why we are delivering our promise to convene the first Council of the Nations and Regions as we work as one team to maximise opportunities ahead of the Investment Summit.
“No more talking shops of the past. Genuine, meaningful, and focused partnership to change the way we do business, redefine our position on the world’s stage, and unlock the whole of the UK’s untapped potential to make everyone, everywhere better off.”
Tracy Brabin, Mayor of West Yorkshire, said: “This new era of genuine partnership working between the Government and Mayors will help us to unleash the potential of our great regions and boost growth.
“Mayors are champions of their regions at home and abroad, attracting investment, creating good jobs, and putting more money in people’s pockets. Our investments in transport, skills and homes, create the right environment for growth by connecting businesses to the talent and finance they need to succeed.
“Through partnership working and by listening to business, we’ll deliver the long-term investment our country needs to shake off stagnation and face the future with confidence.”
Local leaders as well as Heads of the Devolved Governments have also been invited and are expected to attend the International Investment Summit to forge new partnerships with businesses to unlock growth in every corner and every community across the UK.
The UK Government led inaugural International Investment Summit is expected to be opened by the Prime Minister where he will take part in an in conversation event with Eric Schmidt – the pioneer behind Google’s transformation from start up to one of the world’s most powerful companies.
Eric Schmidt, Former CEO & Chairman of Google KBE said: “Artificial intelligence represents one of the most transformative technologies of our time. It will change how economies everywhere function, and it will determine which countries stay competitive in the decades to come.
“Last year, when the UK hosted the first global summit on AI safety, the country displayed its commitment to being a leader in responsible innovation. Now, it has the opportunity to go even further and articulate a vision for the future where the UK is a hub for world-class talent.
“I’m looking forward to discussing with the Prime Minister how we can drive even greater investment in research and education to ensure the UK stays at the forefront of these technological breakthroughs.”
The Summit will gather UK leaders, high-profile investors and businesses from across the world at a historic venue in central London – with confirmed speakers including Ruth Porat President & Chief Investment Officer, Alphabet and Google, Alex Kendall, CEO of Wayve and Bruce Flatt, CEO of Brookfield Asset Management.
The event will provide an opportunity for the Government to establish enduring partnerships with businesses to boost investment in the UK and to give investors the certainty and confidence they need to drive growth.
It will be sponsored by Barclays, HSBC, Lloyds, M&G plc, Octopus Energy, and TSL.
Today’s announcement follows the Government confirming funding this week to launch the UK’s first carbon capture sites in Teesside and Merseyside.
In a boost for economic growth and protecting the environment, the new carbon capture and CCUS enabled hydrogen projects will create 4,000 new jobs, sustain important British industry, and help remove over 8.5 million tonnes of carbon emissions each year – the equivalent of taking around 4 million cars off the road.
C.S. Venkatakrishnan, Group Chief Executive, Barclays said: The International Investment Summit is an important opportunity for the Government to build further investor confidence based on its priorities for driving UK economic growth.
“The UK’s stability, skills and history of innovation make it an attractive investment destination. The private sector has an important supporting role in helping the economy. Barclays has made its largest ever capital investment in the UK to drive economic growth and we continue to connect both domestic and international investors with opportunities across the country.”
Georges Elhedery, Group CEO, HSBC said: “From SMEs to multinational corporates, UK companies’ enterprise, expertise and innovation present huge opportunities for partnership and economic growth.
“With our long history of helping UK customers trade with the world and international customers to invest in the UK, HSBC is pleased to support the International Investment Summit.”
Charlie Nunn, Group Chief Executive, Lloyds Banking Group said: “The UK business environment remains an innovative and dynamic destination for investors and global talent, and we are proud to support the International Investment Summit.
“Lloyds works with corporate and institutional clients from the UK and across the world – generating jobs and growth, attracting inward investment, and increasing exports. These are essential ways we are helping Britain prosper.”
Andrea Rossi, CEO, M&G plc said: “The UK has a clear national mission to drive economic growth and back wealth creation across every region of the country.
“At M&G, we have actively invested in the UK for 175 years, driving progress and helping people, businesses and communities thrive. We continue to support a range of companies, invest in critical infrastructure and play our part in boosting regional economies.
“The International Investment Summit is a crucial moment to put the UK back on the investor map, showcase market opportunities and reinforce how business and government can work in partnership.”
Greg Jackson, CEO of Octopus Energy said: “The UK is the vanguard of green innovation, brimming with the talent and technology needed to accelerate the global energy revolution.
“By investing in British renewables and clean tech, we’re not just creating greener energy for people but driving the solutions that will power the world. The International Investment Summit is a great opportunity to showcase the UK’s climate leadership and revolutionise the sector.”
Jackie Wild, TSL Group CEO said: “We are delighted to be a partner to the International Investment Summit. We founded TSL more than two decades ago with the vision of creating a British export model of technical engineering and construction excellence.
“We are proud to be delivering projects for international clients across the world to power the fourth industrial revolution.
“In addition, through the creation of SmartParc, our cutting edge, investable platform for food industry change, we continue to facilitate inward investment into the UK’s food industry to safeguard our national food security.”
