Investing in the NHS, protecting low earners, backing Scotland’s economy

(Article via www.gov.scot 14/12/17)

The 2018-19 Draft Budget will protect the NHS and public services, support low earners and unlock Scotland’s economic potential, according to Finance Secretary Derek Mackay.

Setting out plans to invest an additional £400 million in Scotland’s health service, protect public services, lift the public sector pay cap and provide a package of investment in growing the economy and supporting small businesses, Mr Mackay said the budget would “invest in our public services and support business to thrive”.

The Draft Budget proposes the introduction of a more progressive income tax policy that will protect low and middle income taxpayers, resulting in the majority of taxpayers paying less income tax than they do now with those on the highest incomes paying proportionately more.

Publishing the Draft Budget to parliament, Mr Mackay set out a programme that will:

• Increase spending on the health service by over £400 million – £200 million more than inflation.
• Provide £120 million – over and above core education funding – direct to head teachers to help ensure all young people can fulfil their potential
• Lift the one per cent public sector pay cap and provide for up to a three per cent pay rise for NHS staff, police, teachers and others earning up £30,000
• Invest £243 million towards the expansion of free nursery education and childcare
• Protect funding for Police and Fire services including retaining VAT refunds in full
• Deliver a local government finance settlement worth more than £10.5 billion
• Contribute £756 million towards investment of more than £3 billion by 2021 to deliver 50,000 affordable homes
• Allocate over £4 billion of funding for infrastructure
• Deliver £600 million to ensure every home and business will have access to superfast broadband by 2021
• Deliver the first £70 million of a new £150 million Building Scotland Fund
• Set aside £340 million for initial capitalisation of the Scottish National Investment Bank
• Invest nearly £2.4 billion in our colleges, universities, enterprise and skills bodies – including a real terms increase for both college and Higher Education budgets

Mr Mackay said:

“This is a budget for a stronger economy and a fairer society, with increased funding for the NHS and protection for low and middle income earners.

“We are investing in our public services and supporting business to develop and thrive. This budget mitigates against the UK Government’s cuts to our block grant.

“It delivers an additional £400 million to the health service, it invests in expanding childcare, delivering broadband, building 50,000 new homes and supporting our police and fire services.

“It provides the investment we need to meet the challenges and seize the opportunities of tomorrow.”

Article Source: https://news.gov.scot/news/scotlands-budget

Housing figures published

(Article via www.gov.scot 12/12/17)

More than 70,000 affordable homes have now been delivered since 2007- a total of 48,813 homes for social rent, including 8,819 council homes, as well as 4,936 for affordable rent and 17,112 for affordable home ownership.

National statistics released today also show there were 19,598 new build homes started across all sectors for the year ending June 2017- 2,188 homes or 13% more than the previous year.

Housing Minister Kevin Stewart visited an affordable housing development in Edinburgh to meet tenants and mark the completion of the 70,000th affordable home.

Mr Stewart said:

“Making sure everyone has a safe, warm and affordable home is central to this Government’s drive for a fairer and more prosperous Scotland.

“We are determined to accelerate housing supply for communities across Scotland and I am delighted to announce more than 70,000 affordable homes have been delivered to date, including 48,813 homes for social rent.

“I am confident that we will continue to increase affordable housing across Scotland with our ambitious target to deliver 50,000 homes during the lifetime of this Parliament, backed by £3 billion of investment.

Location announced for centre of excellence

A new ‘Factory for the Future’ will be built on the banks of the Clyde.

(Article via www.gov.scot)

Renfrewshire will be home to the new £65 million National Manufacturing Institute for Scotland (NMIS), with Strathclyde University announced as the anchor university.

Work to build the centre, which will help manufacturing businesses throughout Scotland become world leaders in innovation, will begin next year. The centre at Inchinnan will be located right next to Glasgow International Airport and the M8.

The Scottish Government will invest £48 million in NMIS with £8 million from the University of Strathclyde. This is in addition to the £8.9 million announced in June 2017 for the Lightweight Manufacturing Centre as a first step towards the wider centre. Renfrewshire Council will provide a further £39.1 million through the Glasgow City Region Deal to support wider infrastructure work at the site.

First Minister Nicola Sturgeon and Economy Secretary Keith Brown made the announcement during a visit to Rolls-Royce’s manufacturing facility in Inchinnan. Rolls-Royce is a founding member of the University of Strathclyde’s existing Advanced Forming Research Centre.

Speaking after a meeting with some of Scotland’s leading manufacturing companies, the First Minister said:

“This exciting facility will be an industry-led international centre of manufacturing expertise. Research, industry and the public sector will work together to transform skills, productivity and innovation, attracting investment and making Scotland a global leader in advanced manufacturing.

“It will help companies right across Scotland embrace new manufacturing techniques, support cutting edge research and help to further develop the skills of our workforce. The manufacturing jobs of the future offer exciting and rewarding careers for young people. We want to inspire them to work in this sector and revive Scotland’s proud tradition of manufacturing and engineering.

“Inchinnan provides a gateway to the world through proximity to the airport and revives Scotland’s proud tradition of manufacturing and engineering.

“Although the centre will sit on the Clydeside, the benefits will be felt throughout Scotland.

Economy Secretary Keith Brown added:

“Manufacturing is a key industry, already accounting for 52 % of Scotland’s international exports, and nearly £600m of Scotland’s spend on business research and development.

“Our investment in NMIS builds on our support for the Lightweight Manufacturing Centre and will support that and our ambitious target of doubling business expenditure on research and development by 2025. This centre will not only see us continue to reach out worldwide, but also see the rest of the world turning to Scotland for innovation and expertise.”

Professor Sir Jim McDonald, Principal and Vice-Chancellor of the University of Strathclyde, said: “Today’s announcement marks the beginning of a new chapter for Scottish manufacturing, building on a great tradition of innovation. By capitalising on world-class, industry-relevant research and supporting skills-development, the new institute will attract inward investment to Scotland, stimulate the creation of jobs and help companies compete globally.

“The University of Strathclyde prides itself on forging new levels of collaboration between researchers and the public and private sectors to accelerate the pace of research and development, and crucially, to deliver benefit to businesses and the economy. We are delighted to be the anchor university for the Institute and will ensure close engagement with the Scottish Research Partnership in Engineering representing a consortium of Scotland’s leading research intensive universities. We also look forward to working closely with new and existing partners to deliver a step-change in advanced manufacturing for Scotland.”

Renfrewshire Council Leader Iain Nicolson said: “Renfrewshire has long been renowned for its manufacturing expertise and innovation, not least in giving Paisley Pattern to the world, and I am excited about the prospect of helping to play our part in making Scotland a global leader in advanced manufacturing.

“I believe through our existing manufacturing expertise combined with excellent transport connections by air, land and sea – which will be further enhanced by our Glasgow City Region City Deal projects – Renfrewshire offers the perfect environment for the National Manufacturing Institute for Scotland to flourish and we look forward to working with colleagues to deliver its ambitious aims.”

Managing director at Scottish Enterprise, Linda Hanna said: “supporting growth in Scotland’s manufacturing sector is a key priority for us and central to the future of Scotland’s economy. Today’s announcement marks a great milestone in the journey towards creating expertise and capability in a new hub to help drive increased innovation and investment. We are looking forward to continuing to work closely with partners to deliver this ambitious project and grow Scotland’s reputation as a global hub for high value manufacturing.”

Dr. Hamid Mughal, Director of Global Manufacturing, Rolls-Royce said: “We welcome the Scottish Government’s announcement on the National Manufacturing Institute for Scotland, which is positive news for the Inchinnan district. It is hugely encouraging to see that the strategic importance of advanced manufacturing is being duly recognised and that the Scottish Government intends to work closely with industry to promote greater innovation and productivity.”

Article Source: https://news.gov.scot/news/national-manufacturing-institute-for-scotland

First Minister Nicola Sturgeon has set out the Scottish Government’s position on the agreement of a proposal to settle the first phase of the negotiations between the UK and the EU on the UK’s decision to leave the European Union.

(article via www.gov.scot)

The First Minister said:

“While the Scottish Government remains clear that we wish Brexit was not happening and that the UK as a whole was not leaving the European Union, today’s proposed agreement is a welcome step forward in the negotiations.

“The next phase will be significantly tougher and it is essential all the UK’s Governments are now fully involved in the negotiations on the UK’s future relationship with the EU – something that has not happened to this point.

“We fully support the protection of the Good Friday Agreement in all its parts and the UK Government’s guarantee that there will be no hard border on the island of Ireland.

“We will be seeking clarity on how the UK Government intends to deliver full alignment with the rules of the Single Market and Customs Union.

“And there is no doubt that the provisions relating to Northern Ireland raise major new questions over proposed UK-wide frameworks that are the subject of on going talks between the UK and Scottish Governments

“And I am absolutely clear that any special arrangements for Northern Ireland must now be available to other nations of the UK – the Scottish Government will not accept any arrangements which risk putting Scotland at an economic disadvantage.

“Short of continuing EU membership, the best outcome for jobs and living standards is to retain membership of the Single Market and Customs Union – both in transition and permanently. We will continue to argue that case, including at the next meeting of the Joint Ministerial Committee in London next week.

“We will be studying the details of the phase one agreement but we welcome the fact that finally there has been some movement to guarantee the rights of EU and UK citizens – although it is disgraceful that it has taken this long and there is still more to do in phase two.

“In addition it seems the UK could also now be paying around £50 billion just for the right to negotiate an inferior trade deal than the one we have now.”

Article Source: https://news.gov.scot/news/first-minister-comments-on-brexit-developments

Michael Russell asks UK Government to share analysis with public

(article via www.gov.scot 28/11/17)

Minister for UK Negotiations on Scotland’s Place in Europe Michael Russell has written to the UK Government asking for the sectoral analysis reports to be published online and for the full breadth of analysis to be shared with the devolved administrations.

The full text of Mr Russell’s letter to the Secretary of State for Exiting the EU is below.

We received yesterday the copies of the sectoral reports which you committed to sharing

with the UK Parliament earlier this month and are in the process of assessing this material.

Whilst we welcome the sharing of information we have concerns about both the manner in

which these reports have come to us, and their content.

The First Minister and I have both been clear that the UK Government’s analysis of the

impact of Brexit on sectors or the economy as a whole should be made public. It is essential

that people across the UK fully understand the consequences of decisions being taken about

their future. It is disappointing that the UK Government has persisted in keeping this

information from being publicly available and have shared with us only on the basis that we

do not release it into the public domain. I urge you to reconsider this approach, be up front

with people and publish these reports immediately.

Aside from the matter of publication, it is clear is that these reports do not contain any actual

impact analysis. They seem to be a collation of sectoral information, and as useful as that is

it fails to address the key need; to understand what assessment the UK Government has

made of the likely impact of its approach of leaving the Single Market and Customs Union

and what mitigating measures if any are being put in place to manage negative impacts.

I am therefore requesting that you share the full breadth of the analysis that the UK

Government has undertaken with the devolved administrations as a matter of urgency.

I am copying this letter to Damian Green, First Secretary of State; Mark Drakeford, Cabinet

Secretary for Finance and Local Government; and, David Sterling as the head of the

Northern Ireland Civil Service.

Yours Sincerely

MICHAEL RUSSELL

Article Source: https://news.gov.scot/news/call-for-full-brexit-analysis

Finance Secretary responds to UK Government financial plans

(Article via www.gov.scot 22/11/17)

The UK Government’s budget does not represent a good deal for Scotland, as a consequence of a real terms cut to Scotland’s revenue block grant of over £200m next year.

Commenting on today’s UK Government budget Finance Secretary Derek Mackay said that Scotland is being “short changed”.

Despite a commitment of over £300m resource funding for the NHS in England this year, Scotland will receive only £8m in consequentials in 2018-19 due to UK cuts elsewhere.

Of the additional money the UK Government announced as being added to Scotland’s budget, over half of it – £1.1bn – are financial transactions which the Scottish Government cannot spend on frontline public services, and which have to be repaid to the Treasury.

Mr Mackay said:

“Scotland’s resource block grant for day to day spending will fall by over £200m in real terms next year and while money for the NHS in England should see a proportionate share come to Scotland, cuts in other UK departments mean that instead of receiving over £30m this year the Scottish Government will receive only £8m – a fraction of that spending.

“The reality is that over £1.1bn of the money being promised to Scotland over the next four years are loans that the Scottish Government cannot spend directly on frontline public services and that have to be paid back to the Treasury.

“Austerity has not ended and over ten years of this UK Government, between 2010-11 and 2019-20, we will continue to see Scotland’s discretionary budget fall in real terms by £2.6bn, that’s 8.1%.

“At the same time this budget has failed to lift the public sector pay cap. The Scottish Government believes all public sector workers deserve a pay rise and we will deliver one.

“On business rates and stamp duty the UK Government are following our lead. We have already moved to make revaluations more frequent and the vast majority of first time buyers are already exempt from tax when they buy a home.

“Ending the VAT obligation on police and fire services and supporting the oil and gas industry is welcome, but in both cases these moves are well overdue, and the UK Government must now pay back the £140m of VAT they have already taken.

“The reality of today’s budget is that Scotland continues to be hit by UK austerity and the decision to leave the EU. Compared with the £1bn awarded to the DUP, the funding settlement for Scotland unveiled today is disappointing.

“I have consistently argued for a better settlement for Scotland, and this budget does not reflect that.”

Article Source: https://news.gov.scot/news/budget-falls-short-for-scotland