Author: pauld

Budget stage 1; NHS, economy and the low paid to benefit

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Scot Gov Website News Article:
Scotland’s NHS, the economy, public sector workers and the low paid will benefit from the Scottish budget, Finance Secretary Derek Mackay said today as he confirmed he had reached an agreement that will see the financial plan passed at all stages by the Scottish Parliament.

The budget takes steps to mitigate UK Government cuts, increases funding for the NHS by £400 million, invests in the expansion of early learning and childcare, delivers on our commitments to broadband, supports the building of 50,000 new homes, backs small businesses and innovation and provides essential funding for our frontline police and fire services.




The Finance Secretary also confirmed he will extend the Scottish Government’s commitments on public sector pay to ensure all public sector employees earning up to £36,500 receive a minimum 3% pay increase – meaning 75% of public sector workers, including NHS staff, will benefit from an inflationary pay rise.

As part of an agreement with the Scottish Green Party, the budget will now include a real terms increase in revenue investment for local authorities with local services benefitting from an additional £159.5 million of resource funding, and following discussions with Shetland and Orkney Island Councils, funding of £10.5 million will be made available to support inter-island ferry services in 2018-19 – with talks continuing on a long term solution.

Investment in Low Carbon infrastructure – which is already increasing from 21% of planned infrastructure investment in 2017-18 to 29% in 2018-19 – will continue to increase in each year of the parliament, with additional support made available this year for home energy efficiency, the exploration of new local rail services and the delivery of marine protected areas.

In addition, Mr Mackay confirmed that, following publication of the Scottish Government’s tax proposals in December, he would take steps to remove an anomaly that meant some higher rate tax payers saw their bills fall while others on slightly lower incomes saw a rise, due in part to changes in the personal allowance.

As a result, while 70% of taxpayers will continue to pay less next year than they currently do, 55% will pay less than they would elsewhere in the UK. All those earning above the new Higher Rate Threshold of £43,430, a 1% increase on the 2017-18 threshold, will see a modest increase in income tax. This distinct income tax policy will raise around £55 million and support an additional £420 million of investment in the Scottish budget.

Confirming the changes during the Stage 1 of the budget debate, Mr Mackay said:

“As a parliament of minorities, we must work across the chamber to find compromise and consensus in order to give support, sustainability and stimulus to our economy and to our public services.

“This budget invests record amounts in our NHS, supports our efforts to improve attainment in our schools, invests in our economy with support for infrastructure, for broadband and for innovation, and supports our ambitions to tackle climate change.

“We are lifting the pay cap with a real terms increase in pay for the majority of public sector workers and we are supporting local services with a real terms increase for day to day spending and for long term investment, with an additional £170 million going into local services, on top of the £10.5 billion already proposed.

“Our changes to tax ensure Scotland has a progressive tax system – with 70% of taxpayers paying less next year than they do currently and 55% paying less than they would across the rest of the UK – while businesses benefit from support for investment.

“The changes I have announced ensure that people in Scotland will benefit from the best deal for taxpayers in the whole of the UK.”

Article Source: beta.gov.scot/news/budget-stage-1/

Scot Gov Call for strengthened Brexit dialogue

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Russell sets out suggestions to new Minister of State. (Scot Gov News)

The UK Government must work more closely with devolved governments as they embark on a second phase of negotiations with the EU in order to achieve best possible outcome, said Minister for UK Negotiations on Scotland’s Place in Europe Michael Russell.

Following economic impact analysis, Scotland’s Place in Europe: People, Jobs and Investment which confirms remaining in the European Single Market and Customs Union would be best post-Brexit. The Scottish Government is calling for clarification and assurances from the UK Government on the meaningful participation of devolved governments in agreeing UK positions, as well as the urgent reconvening of the Joint Ministerial Committee (EU Negotiations).

Full text from Minister of UK Negotiations on Scotland’s Place in Europe Michael Russell to the newly appointed Rt Hon David Lidington MP as Minister of State (Cabinet Office) below.




Further to my letter to you last week, I am writing again to make some specific and urgent requests.

I am sure that you will agree that as the UK embarks on a second phase of negotiations with the EU, it is crucial that the UK Government and the devolved governments work closely together to achieve the best possible outcome.

We understand that the UK Government is to set out its approach to the second phase of negotiations in mid-February. I would be grateful, therefore, if you could share further detail on how the UK Government is reaching agreement on its desired end state relationship with the EU, and when devolved administrations can expect to have an opportunity to participate in and influence the outcome of that discussion.

To better enable our genuine participation, I would also welcome your clarification on the anticipated sequencing for phase two of the negotiations with the EU, including key dates for subject specific discussions. This should be the driver for the prioritisation of discussions, including at the Joint Ministerial Committee (EU Negotiations).

Whilst the Joint Agreement reached by the UK Government and EU in December was a welcome step forward, it is clear that the next phase of these negotiations will be significantly tougher than the first. It is essential that all Governments across the UK are fully involved in preparing for and delivering progress. Therefore there is, as I set out in my letter last week, an urgent need to convene a meeting of the JMC (EN) and agree joint working arrangements going forward. A meeting of the JMC (Plenary) will also be essential in order to take a high level view of this matter.

I remain concerned that as we move forward we have yet to agree mechanisms for joint working between the UK Government and Devolved Administrations which fully reflect the type of engagement and involvement envisaged in the terms of reference of the JMC (EN) and in subsequent meetings. I also see a serious risk that the important activity to agree joint working arrangements going forward will not be complete until after the UK has established its position on the end state relationship. That would not be acceptable. We did of course reach a positive agreement at the meeting of the JMC (EN) on 12 December 2017 that there should be greater involvement and engagement of the devolved administrations in phase two of the negotiations.

I, therefore, hope that agreement on the detail of this can be rapidly reached and endorsed by the next meeting of the JMC (EN), so that such engagement can commence.

I will be in London on 29 and 30 January and would welcome discussion with you to progress these matters with urgency.

I am copying this letter to the Secretary of State for Exiting the EU, David Davis, the Secretary of State for Scotland, David Mundell, the Cabinet Secretary for Finance in the Welsh Government, Mark Drakeford and the Permanent Secretary for the Northern Ireland Executive, David Sterling.

Michael Russell

Article Source: news.gov.scot/news/call-for-strengthened-brexit-dialogue

Scotland’s economy continues to grow

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GDP grew by 0.2% in the third quarter of 2017. (Scot Gov News Website)

Scotland’s economy has remained resilient going into the second half of 2017 despite a challenging economic environment and continued Brexit uncertainty, the Economy Secretary has said.

According to the latest GDP statistics published by the Scottish Government today, the Scottish economy grew by 0.2% in the third quarter of 2017, and has increased by a total of 0.8% since the start of the year.

In the latest quarter, Services grew by 0.2% and Production grew by 1.2% after a return to growth for both manufacturing, mining and quarrying.




Economy Secretary Keith Brown said:

“Despite the impact that continued Brexit uncertainty is having on our economy, today’s figures demonstrate the resilience of the Scottish Economy with the third consecutive quarter of positive growth.

“Although more modest than we would like, it is encouraging to see the economy grow by 0.2% overall. Within this, it’s particularly heartening to see Services continue to expand, and Production up by 1.2%, with a return to growth for manufacturing. While these figures show a fall in construction output, this is as a result of activity returning to more normal levels following our increased investment in large transport infrastructure developments over recent years, including the Forth Replacement Crossing, M8 missing link and the Borders Railway.

“Our determination to seize opportunity and grow our economy is demonstrated by the £270 million increase on economic spending we announced in the 2018/19 Draft Budget. However it cannot be stressed enough that the single biggest threat to our economy as a whole remains the lack of clarity from the UK Government over Brexit. This week the Scottish Government published analysis which showed that failure to remain in the Single Market or secure a free trade agreement would see Scotland’s GDP around £12.7 billion lower by 2030 than it would be under continued EU membership.

“I would once again call on the UK Government to give people and businesses greater certainty over the Brexit process in order to further stimulate growth in Scotland’s business communities and allow us to continue to attract and retain talent within our workforce.”

Article Source: news.gov.scot/news/scotlands-economy-continues-to-grow-1

Analysis shows Single Market essential for Scotland

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Jobs and living standards must come first. (Scot Gov News Article)

New economic impact analysis by the Scottish Government confirms that in the event of Brexit taking place, the best way to protect the economy would be to remain in the Single Market and the Customs Union.

A failure to remain in the Single Market or to secure a free trade agreement would see Scotland’s GDP around £12.7 billion lower by 2030 than it would be under continued EU membership.

This would mean a loss equivalent to £2,300 per year for each person in Scotland.

The analysis takes account of the impact on trade, productivity and migration of different future relationships. It shows that a so called ‘Canada-type’ deal with the EU would still leave Scotland’s GDP £9 billion lower by 2030 – or £1,610 per head.




Other key findings include:

Remaining within the Single Market could see an additional benefit to Scotland’s economy if the EU makes progress on completing the Single Market in services, energy and the digital economy
Continued migration from the EU in line with Freedom of Movement is required to support continued economic growth, with each additional EU citizen working in Scotland currently contributing an average of £10,400 in tax revenue
Any relationship with the EU short of remaining in the Single Market could have a significant impact on social protections, environmental and consumer policies

Publishing the new analysis Scotland’s Place in Europe: People, Jobs and Investment, First Minister Nicola Sturgeon said:

“By insisting on hard-line pre-conditions the UK Government is itself closing the doors on what can be achieved in talks with the EU on the future relationship.

“The aim of the Scottish Government, and the evidence presented in this paper, is to start opening those doors again.

“For the sake of jobs, the economy and the next generation, today we are calling on the UK Government to drop its hard Brexit red-lines so that Scotland and the UK can stay inside the Single Market and Customs Union.

“Scotland is particularly well-placed to take advantage of the developing and deepening Single Market – the world’s biggest economy of 500 million people, eight times the size of the UK.

“Our brilliant world-class universities, our unrivalled potential in renewable energy, our life sciences industry, our digital sector and other key areas of the Scottish economy are all in prime position to reap the rewards of these developments.

“That will mean more jobs and higher wages. It would be a tragedy for future generations if we let that opportunity pass us by.

“The fact that the Prime Minister wants to leave not only the political structures of the EU but come out of the European Economic Area shows just how extreme the UK Government position is. With just weeks to go before the opening of talks on the future relationship that extreme stance must be dropped.”

Minister for Negotiations on Scotland’s Place in Europe Michael Russell said:

“People in Scotland voted decisively to remain in the European Union and we continue to believe this is the best option for Scotland and the UK as a whole. Short of EU membership, the Scottish Government believes the UK and Scotland must stay inside the Single Market and Customs Union.

“The decisions taken in the next few months will be crucial for jobs, wages and opportunities for generations to come and it is vital that the Scottish Government are properly engaged in these decisions.”

Article Source: news.gov.scot/news/analysis-shows-single-market-essential-for-scotland

Scot Gov: Current Trade Bill unacceptable

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Scottish Government can’t recommend consent

(Article via www.gov.scot)

The Scottish Government cannot recommend that the Scottish Parliament gives legislative consent to the UK Government Trade Bill as currently drafted.

The UK Government has recognised the role of the Scottish Government in implementing trade deals and the Trade Bill confers powers on Scottish Ministers to do so.

But the bill imposes unacceptable constraints on the way that these powers can be used.

In a letter from Cabinet Secretary for Economy, Jobs and Fair Work Keith Brown to Minister of State for Trade Policy Greg Hands he explains that it is the Scottish Government’s intention to produce amendments in consultation with the Welsh Government which will address our concerns.




Full text below.

20 December 2017

Dear Greg,

Thank you for your letter of 7 November in which you confirmed that the UK Government had introduced the Trade Bill and tabled resolutions for the Taxation (Cross-Border Trade) Bill. We agree with your analysis that Part 1 and Schedules 1 to 3 of the Trade Bill affect the devolved competence of Scottish Ministers and will therefore require the legislative consent of the Scottish Parliament.

It remains a matter of regret to the Scottish Government that the UK plans to withdraw from the EU. Nevertheless we accept that preparations should be made for withdrawal from the EU, including maintaining continuity in trading relationships, and ensuring continued access to government procurement markets.

My officials will work with yours on developing the detailed provisions of the Bill to ensure that, as far as they go, they support the interests of the Scottish economy.

However, as the Trade Bill is currently drafted the Scottish Government cannot recommend that the Scottish Parliament gives its legislative consent to those parts of the Bill which fall within devolved competence.

The UK Government has acknowledged that the implementation of trade agreements falls to the devolved administrations and accordingly the Trade Bill confers certain powers on the Scottish Ministers. The Scottish Government welcomes these powers but cannot accept the constraints placed on the use of them which are analogous to those in relation to the way in which powers are conferred in the European Union (Withdrawal) Bill.

We have therefore lodged a legislative consent memorandum in the Scottish Parliament which explains our detailed objections to the Trade Bill and our intention to produce amendments in consultation with the Welsh Government which will address our concerns. I hope that these amendments will be supported in due course.

As you point out in your letter the Trade Bill does not relate to trade agreements with countries other than the EU’s existing trade agreement partners. It does not deal with future trade agreements. I welcome the commitment you made in your letter (and those made by Liam Fox when we met on 2 November) about the need to engage in more detailed discussions with the Scottish Government about our involvement in the development of future trade agreements and their implementation.

If a more inclusive approach from the UK Government is to be delivered then it will require a step change from the lack of any meaningful engagement on trade matters up to now. When I met Liam Fox I mentioned the lack of substantive discussion of the proposals contained in your Government’s Trade White Paper before publication; the fact that the Scottish Government was only given a few hours’ notice of the contents of the White Paper on 9 October; and the reluctance of DIT officials to discuss any of the detail following the publication of the White Paper. Following that meeting, Scottish Government officials were only given two working days’ notice of the contents of the Trade Bill before its introduction and no opportunity for input, even though the UK Government has since acknowledged that the Bill affects devolved areas and therefore requires the legislative consent of the Scottish Parliament. Most recently, and despite your Government’s recognition that the devolved administrations have a critical role to play in the Industrial Strategy and that we should be consulted on it, I received a draft of the Strategy at 9pm on the evening of Saturday 25 November ahead of publication on 27 November.

However, our officials began discussions about future arrangements in a constructive meeting in Edinburgh on 19 December and I look forward to building on this early next year. The Scottish Government believes the UK should remain in the EU Customs Union. But if an alternative path is taken, it will be vital that the Scottish Government (and other devolved administrations) are fully involved at every stage of the process leading to future trade agreements. This should not be limited as at present to an explanation after the event of what the UK Government has done but should deliver engagement at a point where the aims, objectives and coverage of any trade deals are still in play. We would, for example, expect the UK Government to seek agreement with us before embarking on discussions with third countries about future trade agreements, and the opportunity to be part of those discussions.

I am copying this letter to the Deputy First Minister, the Minister for UK Negotiations on Scotland’s Place in Europe, the First Secretary of State and the Secretary of State for Scotland.

Keith Brown

Article Source: https://news.gov.scot/news/current-trade-bill-unacceptable

‘Staying within the Single Market is vital for Scotland’s future’

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“Continued membership would maintain labour force” – Russell

Staying within the Single Market is vital for securing Scotland’s future workforce, Minister for UK Negotiations on Scotland’s Place in Europe Michael Russell said today.

(Article via www.gov.scot)

Mr Russell visited Stoddart’s beef processing company in Broxburn, West Lothian and heard from the Managing Director about concerns over the future ability to access EU Nationals to work for the company. They also discussed concerns around continued tariff free access to the EU market for beef products, especially the Scotch Beef PGI brand.




Mr Russell said:

“A hard Brexit and the end of freedom of movement will create the very real risk that the number of people working in Scotland will fall.

“That will mean fewer tax-payers to support vital public services and many sectors of the economy will struggle to attract the workers they need.

“It is essential we remain a member of the Single Market and Customs Union. Many companies benefit from our fellow EU nationals’ work as well as having access to the world’s most lucrative market.

“The Scottish Government continue to push for continued membership, not just as part of a transition deal but as the final destination, so securing the future of our workforce and protecting access to valuable markets.”

Managing Director of Stoddart’s Grant Moir said:

“Scotland has to compete with the rest of Europe in its bid to attract people into the workplace. Following the initial Brexit announcement this has become an increasingly challenging task for many Scottish Food and Drink businesses.

“At Stoddart’s we depend on a large number of EU Nationals to make up our workforce without whom we would be unable to run our business at its current level. One third of our processing staff are non-UK EU nationals highly skilled in meat processing.

“Any restriction of freedom movement as a result of the Brexit negotiations will in my opinion be hugely detrimental to both our business and the wider Scottish Economy.

“Recruitment and retention of our EU National workers will remain our single biggest business challenge for the immediate future”

Chief Executive of Quality Meat Scotland, Alan Clarke, said:

“Having access to a pool of skilled labour is essential to ensure that the Scottish red meat sector can have sustainable growth. Non UK nationals are of fundamental importance throughout the red meat supply chain, especially in the processing sector, for example, in respect of statutory food safety inspection and monitoring carried out in Scottish processors, Food Standards Scotland report that around 98% of their official veterinarians are from outside the UK.”

Article Source: https://news.gov.scot/news/keeping-scotland-in-the-single-market

£756 million investment in affordable housing.

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A 28% funding increase will help deliver at least 50,000 affordable homes over this Parliament, as announced in the Draft Budget by Finance Secretary Derek Mackay

(article via www.gov.scot)

In 2018/19, more than £756 million will be made available through the Affordable Housing Supply Programme – 28% higher than the previous year. The programme is expected to support up to 14,000 jobs in the construction and related sectors over the next four years.

The Draft Budget commitment follows statistics showing some 71,000 affordable homes have been delivered since 2007. This includes almost 49,000 homes for social rent, 5,000 homes for affordable rent, and more than 17,000 homes for affordable home ownership.




Communities Secretary Angela Constance said:

“Ensuring everyone has access to a safe, warm and affordable place to call home lies at the heart of our ambition for a fairer Scotland – this budget will deliver on that.

“Core to that is our commitment to deliver at least 50,000 affordable homes over this Parliament. While that is challenging, we have shown before that we can deliver.

“Overall, this funding delivers on our More Homes Scotland approach – increasing supply across all tenures, supporting aspiring home owners, and boosting the economy. We have reintroduced council house building, supported first-time buyers, invested in shared equity, and introduced innovations like the Rental Income Guarantee Scheme and bringing empty homes into ownership.

“This builds on our commitment to work with councils and housing associations to ensure they have the financial certainty to increase developments. We will continue working closely with them and others as we take action to deliver good quality, secure, affordable housing.

Article Source: https://news.gov.scot/news/building-a-fairer-scotland