Autumn statement a ‘missed opportunity to end austerity’.

Commenting on the first Autumn Statement in the wake of the EU referendum, Finance Secretary Derek Mackay said the Chancellor’s plans laid bare the real cost of leaving Europe. The statement also failed to end damaging austerity, does not go far enough to get the economy on track and provide no additional funding for our public services.

Mr Mackay said:

“The truth about Brexit – and the UK’s financial and economic future – was laid bare by the Chancellor today. The real cost of Brexit has now been revealed – and it is a cost which will be paid through lower growth, lower tax revenues, higher borrowing, higher debt and higher inflation. That is the future the Autumn Statement revealed the UK faces as a result of leaving the European Union.

“Above all, this was a massive missed opportunity to end austerity. The Chancellor has failed to ease the punitive cuts that are hitting so many Scottish families. Instead he has continued the damaging austerity that is slashing the budget for public services, hammering family finances and failing to revive the economy.

“Under these plans, Scotland will see a real terms cut to the day-to-day budget that pays for public services. By 2019/20 it is expected to be almost 9% lower over the decade, reducing the scope we have to mitigate against Westminster austerity and invest in growing our economy.

“Even on the much heralded investment in infrastructure, all we have seen is the Chancellor moderating cuts already imposed on Scotland. As a result, Scotland’s capital budget will still be around 8% lower in real terms across this decade.

“Most shocking, perhaps, is the Chancellor’s failure to commit a single extra penny for the NHS today. This blatant disregard of our public services is deeply worrying. I am also concerned by the lack of commitment to the single market which would have provided a level of certainty in light of the weak economic outlook created by Brexit. The Chancellor’s forecast reflects the impact of EU exit with reduced growth forecast and higher borrowing of over £100 billion required over the forecast period.

“Today’s Autumn Statement is effectively tinkering around the edges and while I welcome the focus on capital expenditure, which I have been calling for, there is still not enough to help hard pressed families.

“It is deeply disappointing that the Chancellor has chosen not implemented the strong package of support needed for the North Sea, and affected communities, which continues to be impacted by low oil prices.

“I will publish the Scottish Draft Budget next month that will support our economy, tackle inequality and provide high quality public services for all – underlining the very different approaches our two governments take.”

Background

The Scottish Government has set out key commitments in its Programme for Government around the NHS, early years, attainment, policing and support for business – aimed at supporting the economy, tackling inequality and providing high quality public services. http://www.gov.scot/programme2016

The Scottish Draft Budget 2017-18 will be published on 15th December.

ARTICLE SOURCE: http://news.gov.scot/news/true-cost-of-brexit-revealed

Funding to reduce hospital appointment waiting times
Article by Scot gov 21/11/16

Over £10 million of additional funding is being allocated to health boards to support improvements in first outpatient waiting times.

The investment will allow the NHS to see thousands of patients that are waiting for an appointment more quickly, as well as helping to build additional capacity into the system ahead of winter.

It will fund an estimated 40,000 additional outpatient appointments across Scotland over the next few months, in areas such as orthopaedics, ophthalmology and gastroenterology.

Health Secretary Shona Robison said: “It is important to us that people are seen as quickly as possible when they are waiting for a hospital appointment. This £10 million investment is designed to get those patients who are currently waiting for a first appointment, and potentially a diagnosis, seen more quickly.

“It will also help to reduce waiting lists and help ease pressure on our outpatient services as we head in to winter.

“Demand has increased, with a 13.2% increase in outpatient activity under this Government. When I speak to staff on the frontline they stress to me just how important good planning can ensure waiting lists are managed effectively.

“That is why, as well as these short-term measures, we are also developing a long-term strategy to transform our outpatient care which will be published shortly.

“This will complement work on our new £200 million network of diagnostic and elective treatment centres to be delivered over the next few years – helping the NHS to meet the demands of the future.”

Article Source: http://news.gov.scot/news/gbp-10-million-for-outpatients

First Minister: Outward-looking, welcoming approach key to growth and opportunity

Address to investors at AAM conference in London.

The First Minister today contrasted the Scottish Government’s “Welcome in Scotland” approach with the approach being taken by the UK government.

Nicola Sturgeon set out her determination to keep Scotland in the Single Market even if the rest of the UK leaves, following the Brexit vote.

The First Minister addressed 200 investors at AAM’s annual investment conference in London on the themes of growth, empowerment, and the importance of investing in an inclusive economy.

Ms Sturgeon said

“Scotland voted very strongly to remain in the European Union – by 62% to 38%. Every local authority area in Scotland voted to retain EU membership.

“It is my job, and the job of the whole Scottish Government, to protect our vital national interests. We are currently exploring all options that will enable us to do that.

“More than anything else our long-term economic success will depend on nurturing the talent of those already in Scotland and of those who believe ours is the kind of welcoming country that allows ambition to flourish.

“That’s why I am so personally committed to reducing the attainment gap in Scotland’s schools. Education and skills will always be at the heart of how individuals’ fulfil their potential.

“We also believe freedom of movement helps to enhance and enrich our country. It creates opportunity for those born here and for those who move here.

“The position of the UK Government and some others is very different. From the refusal to guarantee the status of fellow EU nationals living in Scotland and the UK, to the threat to draw up lists of foreign workers, the UK Government seems intent on sending out a “not welcome here” message.

“I am determined that we send out a different message: one that says to all those living, working and studying in Scotland that they are most definitely welcome.

“We want to trade as freely as possible with our EU partners; to continue to welcome people from across the EU and around the world; to maintain ties which have enhanced our prosperity and enriched our society.

“And we want to ensure that Scotland remains an open, internationalist country. Our relationship with Europe has become part of Scotland’s sense of itself. So we will argue for an approach to Brexit which retains as much of that relationship as possible.”

Background:

The First Minister’s speech is available here: http://news.gov.scot/speeches-and-briefings/aberdeen-asset-management-annual-investment-conference

ARTICLE SOURCE: http://news.gov.scot/news/first-minister-outward-looking-welcoming-approach-key-to-growth-and-opportunity

Our history with Europe. (Scot Govt Publication)

A document outlining Scotland’s extensive historical engagement with Europe and its present democratic and constitutional position in relation to the UK, Europe and Brexit has been published today.

The document, for an international audience, explains the historical, political and legal reasons why Scotland’s voice needs to be heard following the EU Referendum. In addition the Scottish Government has set out our intention to publish plans to maintain Scotland’s relationship with Europe in the coming weeks.

Cabinet Secretary for Culture, Tourism and External Affairs Fiona Hyslop said:

“Scotland has benefitted tremendously from our EU membership in terms of trade, skills, funding, people and rights. And, individuals, businesses and communities have gained from the ability to live, study, work and travel across 28 Member States.

“In turn the EU has benefitted from years of partnership working with Scotland on areas ranging from climate change, social policies and research.

“A clear majority of people in Scotland voted to maintain their relationship with Europe and we will continue to pursue all options to protect Scotland’s interests.

“This document is to help partners across Europe to understand Scotland’s distinct position.

“Scotland has had a strong and committed relationship with the EU for over 40 years and we want to continue a positive relationship for many more.”

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

“Since the Scottish Parliament was re-established in 1999 the people of Scotland have exercised their democratic right to have a government that represents their needs.

“The rest of the United Kingdom acknowledged and respected the right of the people of Scotland, within the Union, to make these decisions themselves.

“EU law stands at the centre of these arrangements, shaping the powers of the Scottish Parliament, and providing rights to the citizens of Scotland.

“However, following the EU referendum their rights in areas that are devolved to the Scottish Parliament are now under threat.

“Whilst we accept that the formal EU negotiating role belongs constitutionally to the UK, it is also clear that Scotland’s political history and current constitutional framework make it imperative that our distinctive voice and views are heard loud and clear in London and throughout Europe.”

To read the full document visit http://www.gov.scot/Publications/2016/11/4961

ARTICLE SOURCE: http://news.gov.scot/news/scotland-a-european-nation

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Decommissioning support could boost the value of older fields by 50%.

The UK Government must meet its obligations to the oil and gas industry if the sector is to continue to overcome the prolonged period of subdued prices, Minister for Business, Innovation and Energy Paul Wheelhouse will warn on a trip to the North East today.

Scottish Government analysis of fields already nearing decommissioning has identified that the remaining value of these assets could increase by more than 50%, or almost half a billion pounds, if there were successful measures to reduce costs and increase production. This could also have future benefits for other fields that are currently in earlier stages of their production cycle.

Mr Wheelhouse underlined the figure as part of a two-day visit to Aberdeen to co-chair the Oil and Gas Industry Leadership Group and meet with oil and gas companies. He will discuss a range of topics including decommissioning, developing international opportunities and supporting exploration.

The Scottish Government has called for the Chancellor’s Autumn Statement to include measures that widen access to decommissioning tax relief. Mr Wheelhouse has also highlighted that – nine months after the UK Government’s March Budget – there has been no action on the commitment to use loan guarantees to support infrastructure investment, which could help the sector access a further two billion barrels of oil and gas.

Mr Wheelhouse said:

“The UK Government retains control of the key taxation levers affecting the sector and must take the action needed to protect businesses and jobs.

“Last week’s Decommissioning Insight report from Oil and Gas UK highlighted the £17.6 billion decommissioning opportunity over the next ten years and the need for HM Treasury to work with the industry to attract fresh investment, avoid premature decommissioning, and ensure decommissioning is carried out in a timely and cost-effective manner.

“The Chancellor’s Autumn Statement presents an ideal opportunity to offer the industry the support and clarity it deserves. The UK Government must provide support in widening access to decommissioning tax relief to ensure that the full potential of late-life assets can be realised.

“To illustrate the potential opportunities, Scottish Government analysis of fields nearing decommissioning has identified that the remaining value of these assets could increase by over 50%, or almost half a billion pounds, if there were successful measures to reduce costs and increase production.

“The UK Government should also reaffirm its commitment to provide loan guarantees to the sector, which could be important for unlocking capital investment and stimulating investment. This is of vital importance to the supply chain, which is being hardest hit by the recent slowdown and requires immediate support.

“Scottish Government analysis has identified 45 unsanctioned potentially commercial fields within the North Sea with the potential to unlock around two billion barrels of oil and gas, however this will require around £39 billion in capital expenditure.

“Without greater investment and activity we risk losing vital capacity and skills that will support production and ensure we maximise economic recovery from the North Sea. The Scottish Government believes the oil and gas industry can have a bright future. The Scottish Government is taking action where we can to help the industry, but the Chancellor must also step up to the plate and do all that he can to support the sector.”

Background

The Scottish Government has called for the Chancellor’s Autumn Statement to include measures that:

Improve access to decommissioning tax relief

In order to achieve the tripartite commitment to Maximise Economic Recovery from the North Sea, it is essential that assets are in the right hands and there are no barriers to late life asset transfers. This is of particular significance when fields are maturing and opportunities exist for companies with a competitive advantage or focus in operating late-life assets to assume ownership. The UK Government should take steps in the Autumn Statement to allow the transfer of corporate tax history along with the transfer of an asset and associated commissioning liability to close the value gap that exists between a seller and potential buyer. Addressing fiscal barriers to asset transfers could extend field life and reduce decommissioning costs – both of which will have a positive impact on exchequer revenues.

Urgent clarity on the use of loan guarantees

Nine months on from the announcement at the March 2016 Budget, there is now a pressing need for the UK Government to work directly with the industry to agree and deliver loan guarantees for critical offshore infrastructure. The Cabinet Secretary for Economy, Jobs and Fair Work previously met with HM Treasury in June 2016 to discuss delays to this process, and while receiving assurances that plans will be developed, nothing has yet materialised at this critical time for the industry.

Measures to stimulate exploration

With exploration levels currently at record lows, with only 16 exploration and appraisal wells in the first three quarters of the year, the UK Government should consider further action to stimulate exploration activity. The Scottish Government have previously called on policy changes – such as the introduction of an Exploration Tax Credit (ETC) or reforms to the Investment Allowance (IA) to widen eligibility for unsuccessful exploration. I also understand the UK Government has shown a lack of progress on proposals put forward by the industry itself.

ARTICLE SOURCE: http://news.gov.scot/news/uk-chancellor-challenged-to-step-up-for-north-sea

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