A tailored migration system for Scotland (Scot Gov Website News)

“Overwhelming case” for Scotland-specific system.

Scotland’s population projections show there is an ‘overwhelming case’ for Scotland to have the power to tailor its own migration policy, External Affairs Secretary Fiona Hyslop has said.

With the number of deaths expected to outweigh the number of births for every year until 2040, action is required to maintain and grow Scotland’s working age population to help support the welcome fact that people are living longer.

A new Scottish Government discussion paper on migration looks in detail at the impact that falling migration levels would have on Scotland’s economy and what a devolved migration policy could look like.

The paper sets out ways in which the Scottish Government could be given a greater say on UK migration policy in support of Scotland’s needs, as well as options for a Scotland-specific migration system, including:

• Scottish ministers to set specific criteria to address Scotland’s needs, rather than arbitrary caps on numbers
• A new Scottish body could be set up to administer the policy
• Devolved powers to make it easier for migrants’ family members, and those of UK citizens, to join them in Scotland.

The discussion paper found that by 2040, lower migration alone would reduce Scotland’s real Gross Domestic Product (GDP) by 4.5% – equivalent to a fall of almost £5 billion a year. The reduction across the rest of the UK would be 3.7%, demonstrating the Scottish economy’s greater reliance on migration.

In a ‘worst case scenario’ where migration is reduced to tens of thousands, the cost to the Scottish economy could be £10 billion per year by 2040.

The paper also identifies specific differences in the migration needs of Scotland and the UK including:

• The importance of migration to help grow our working age population
• The value of inward migration to rural Scotland, where it helps sustain employment and essential public services in rural communities
• A need for migration routes to Scotland that allow for and promote long-term settlement, rather than just short-term work visas, to help support demographic sustainability.

Launching the paper on a visit to Outplay Entertainment, a games company in Dundee with a high ratio of skilled workers from overseas, Ms Hyslop said:

“In the absence of clarity from the UK Government on what migration policy will be post-Brexit, this paper looks in some detail at Scotland’s population needs and how they can be achieved.

“It is clear that the UK Government’s plans to reduce migration would not support Scotland’s economy or our population needs – all of Scotland’s population growth over the next 25 years is projected to come from migration. So this paper sets out what a devolved migration system could look like, and the principles we would follow.

“Inward migration does not just bring economic benefits. By welcoming people to live, work and study in Scotland we can strengthen our society and enrich our lives.

“Migrants contribute to our economy by bringing new skills and fresh approaches. Without their contribution Scotland’s economic growth will suffer. Scotland’s economy is heavily reliant on inward migration – particularly of workers with the skills we particularly need, like those I met today in Dundee.

“This paper demonstrates that it simply does not make sense to set arbitrary targets to reduce net migration, or to end free movement of people by leaving the single market.

“There is now an overwhelmingly strong case for Scotland to have the power to tailor its own migration policy to reflect its own unique circumstances. Indeed, there is a growing consensus that this is the only logical step in the face of UK Government policy which is determined to restrict the number of people who can choose to make Scotland their home.”

Article Source: news.gov.scot/news/a-tailored-migration-system-for-scotland

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/

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