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

Working closer with northern neighbours

(Article via www.gov.scot 21/11/17)

A new Arctic Strategy will be developed by the Scottish Government, External Affairs Secretary Fiona Hyslop has confirmed at the closing session of the Arctic Circle Forum.

The Forum brought together policy makers, academics, business leaders and others interested in the future of the Arctic region and was the first ever forum to be held in in the UK.

Speaking after the end of the two-day Forum, Ms Hyslop said:

“Scotland is the closest neighbour to the Arctic States and we have many shared interests and challenges, from renewable energy and climate change targets to social policies and improving connectivity.

“With the threat of a hard Brexit still possible, it is important we continue to work with our northern neighbours to build strong relationships. Our involvement with the Arctic Circle organisation is an excellent opportunity to do this.

“The forum has given us plenty of scope to identify policy links and there has been a lot of interest in our policies and practices in Scotland. As a result I am pleased to announce we will develop an Arctic Strategy for Scotland.

“There is growing global interest in Arctic issues and our new strategy will highlight Scotland’s role in both contributing to the flourishing of Arctic regions and benefiting from the exciting opportunities which are opening up now and in the future.”

Former President of Iceland and Arctic Circle Chairman Ólafur Ragnar Grímsson said:

“The new Arctic neighbourhood needs Scotland. Climate change is the most pressing issue of our time. In addressing it, it’s important that Scotland’s expertise is involved. The economic future of Scotland can in turn benefit from new opportunities in air and sea transport and the development of marine and tourism links.”

“Whatever Scotland’s constitutional position, you can enter the Arctic discussion in a full and inclusive way. The new Arctic neighbourhood needs Scotland, and the development of a formal Arctic policy indicates the Scottish Government is beginning to prioritise this engagement.”

Article Source: https://news.gov.scot/news/arctic-strategy-for-scotland

UK Supreme Court ruling hailed as ‘landmark moment’ for public health

(Article via: www.gov.scot 18/11/17)

The UK Supreme Court has today ruled that minimum unit pricing for alcohol, which was passed overwhelmingly by the Scottish Parliament in 2012, can now proceed.

Health Secretary Shona Robison welcomed the decision and confirmed she intends to make a statement to Parliament shortly, setting out the Scottish Government’s next steps.

Following the unequivocal backing of the highest court in Scotland – and a referral to the European Court of Justice – the UK Supreme Court has now dismissed an appeal by the Scotch Whisky Association and others, ruling that the proposed minimum unit pricing policy is appropriately targeted, lawful and proportionate.

Prior to implementing the policy, Ministers will now conduct a consultation on the proposed 50 pence per unit price and refresh the Business and Regulatory Impact Assessment (BRIA) that is required by Parliament. The Scottish Government anticipates setting the minimum unit price at 50 pence per unit, subject to the outcome of the consultation and the refreshed BRIA.

Ms Robison said:

“This is a historic and far-reaching judgment and a landmark moment in our ambition to turn around Scotland’s troubled relationship with alcohol.

“In a ruling of global significance, the UK Supreme Court has unanimously backed our pioneering and life-saving alcohol pricing policy.

“This has been a long journey and in the five years since the Act was passed, alcohol related deaths in Scotland have increased. With alcohol available for sale at just 18 pence a unit, that death toll remains unacceptably high.

“Given the clear and proven link between consumption and harm, minimum pricing is the most effective and efficient way to tackle the cheap, high strength alcohol that causes so much damage to so many families.

“So we will proceed with plans to introduce minimum unit pricing as quickly as possible. I intend to make a statement to Parliament shortly setting out our next steps, including our preferred implementation timetable and how we will engage with retailers and industry to make this a success.

“The Scotch Whisky Association were within their rights to make this case. I am pleased that the case has now been settled decisively by the courts and I know the Scotch Whisky Association will accept the decision.

“The Scottish Government has always supported whisky as a key part of our economy and an icon of Scottish food and drink, and we will continue to work closely with the sector to ensure its economic success. We will also work closely on the promotion of safe and responsible alcohol consumption and the smooth implementation of the policy.”

Article Source: https://news.gov.scot/news/alcohol-minimum-unit-pricing-to-go-ahead

• The latest report on Scotland’s economic performance has shown a strong first half of 2017.

(Article via www.gov.scot 10/11/17)

The State of the Economy paper has been published by Scotland’s Chief Economist, Dr Gary Gillespie.

It sets out the key trends in the economy in the first half of 2017 and the outlook for the coming year. The report highlights:

• Economic performance has strengthened in 2017 with growth picking-up over the first half of the year
• The labour market has continued to perform strongly, with the employment rate close to its record high and unemployment rate close to its record low;
• The composition of the labour market shows full-time employment has risen by 55,000 over the past year, whilst part-time employment has fallen by 15,000
• Sectors linked to the oil and gas supply chain have grown over the first half of the year as confidence gradually returns to the sector
• Growth forecasts remain positive, projecting growth of around 1% in 2017 and 2018
• Brexit remains the key risk to Scotland’s economy with on-going uncertainty risking business investment and the depreciation in Sterling already feeding through to higher inflation

Economy Secretary Keith Brown said:

“It is encouraging to see further evidence that the foundations of Scotland’s economy remain strong, with positive forecasts on growth.

“However, growth is slower than we would like to see and the UK Government’s stance on Brexit continues to present a huge threat to jobs and prosperity in Scotland.

“We will continue to do all we can to support growth in our economy.”

Article Source: https://news.gov.scot/news/state-of-economy-report

The UK Government is keeping devolved administrations ‘substantially in the dark’ over EU withdrawal negotiations, according to First Minister Nicola Sturgeon.

)Article via www.gov.scot 10/11/17)

On the first day of the 29th British Irish Council in Jersey the FM said the UK Government had not honoured its repeated assurances to share information on the progress of the negotiations.

In particular, clarity was urgently needed on transition arrangements for wholly devolved issues such as agriculture and fisheries.

The FM said:

“In less than 18 months’ time, the UK will be leaving the EU – but despite reassurances that all devolved administrations will be consulted on the withdrawal negotiations, we remain substantially in the dark.

“The UK Government assured us that the Joint Ministerial Committee (JMC) would seek to agree UK positions and discuss issues stemming from the negotiations, respecting the devolved competencies– but the UK Government then allowed that process to fall short of what is required, with only one meeting of the JMC EN in October since EU negotiations began on 19 June.

“We remain cut out of decisions on key issues and the impact the UK Government believe Brexit will have on Scotland and our economy.

“This is not an abstract debate about process. Leaving the EU will have an enormous impact on Scottish jobs, our economy and our relationship with the world – indeed, Brexit’s effects are already being felt. We know from businesses in Scotland that a hard Brexit will cause serious and long term economic damage and it is crucial we stay in the Single Market and Customs Union.

“As has previously been said, the clock is ticking on Brexit and it is essential that the UK Government live up to its promises to give devolved administrations a genuine role on what is by far the most important issue facing every corner of these islands.”

Article Source: https://news.gov.scot/news/brexit-negotiations

Start-ups sector is “thriving”

(Article via www.gov.scot 08/11/17)

The number of businesses in Scotland is at the highest level since records began.

Official statistics show there were 365,600 private sector businesses (registered & unregistered) operating in Scotland as at March 2017 – up by more than 50% since 2000 – providing more than 2 million jobs in Scotland.

The figure represents an increase of 11,110 (3.1%) over the year, taking the number of businesses in Scotland to its highest level in the 17 years since the figures were first recorded.

The number of these firms which are VAT/PAYE registered is up for the sixth year in a row, by 2,405 (1.4%) from 173,995 in 2016 to 176,400 in 2017 – and is also at a record high.

And the estimated number of unregistered businesses (the smallest firms with an annual turnover below the VAT threshold of £83,000 and do not have employees) rose from 180,500 in 2016 to 189,200 in 2017 – an increase of 8,700 (4.8%).

Scottish Government Minister for Business, Innovation and Energy, Paul Wheelhouse, said: “These figures show Scotland’s business scene is thriving, and the rise has been driven in particular by the success of our small business start-ups. But it is very encouraging to see the growth in the number of VAT registered businesses too.

“We’re committed to helping businesses to start-up and grow, and our Small Business Bonus Scheme is benefitting the occupiers of more than 100,000 properties this year by either eliminating or substantially reducing their business rates bill. The scheme has been significantly expanded this year, with half of all rateable properties across Scotland now paying no rates.

“Business Gateway supports new start-ups, as well as existing and growing businesses. It assists around 10,000 people to start their own business every year. Last year that was estimated to have created more than 11,000 jobs. The support also helped 12,669 existing businesses, and more than 5,000 businesses with help to grow but clearly we want to see as wide a number of businesses engage with enterprise agencies to further enhance Scotland’s economic growth.”

The number of businesses operating in Scotland is up by 52.4% since 2000.

While the number of medium-sized (50 to 249 employees) enterprises decreased between 2016 and 2017 to 3,855 – down 65 businesses – there has been an increase of 505 medium-sized enterprises since the records began.

And the number of large businesses (with 250 or more employees) remained at 2,365 from the year before, albeit this is an increase of 120 since 2000.

The Business in Scotland 2017 report shows that the two largest industry sectors were ‘Professional, Scientific & Technical Activities’ (52,985 enterprises) and Construction (45,940 enterprises). Together, these two sectors make up 27% of all private sector enterprises in Scotland.

Article Source: https://news.gov.scot/news/scottish-businesses-at-record-high

Commenting on the Brexit negotiations on the issue of the Irish border, First Minister of Scotland Nicola Sturgeon said:

“Despite the fact that no deal on the Irish border issue has been reached today, and while full details of any such deal are still to become clear, I welcome the fact that there now appears to be the outline of an agreement which would ensure that there is no return to a hard border on the island of Ireland.

“The potential for a hard border has been one of the most concerning aspects of Brexit, and the UK Government’s position to date on protecting the terms of the Good Friday Agreement has left much to be desired.

“While I welcome the proposed commitment for Ireland and Northern Ireland – and while the particular circumstances in Scotland are distinct and separate from those in Ireland – today’s developments show very clearly that if one part of UK can retain regulatory alignment with the EU and effectively stay in the single market, there is no good practical reason why others cannot do the same.

“Indeed, any special status for Northern Ireland would make a similar solution for Scotland even more vital. For Scotland to find itself outside the single market, while Northern Ireland effectively stays in would place us at a double disadvantage when it comes to jobs and investment.

“While the simplest answer to the Brexit problem is for the whole UK to stay in the single market, the Scottish Government has already put forward very detailed compromise proposals for how Scotland’s place in the single market could be maintained if the rest of the UK insists on leaving – proposals which were previously rejected by the UK Government as unworkable. Indeed, if Northern Ireland is effectively kept in the single market it makes it all the more vital for Scotland’s national and economic interests that we are too.

“Today’s developments also demonstrate in the clearest possible way, through the role played by the Irish Government at the top table in Europe, the importance of being independent when it comes to defending your vital national interests.

“Scotland voted overwhelmingly to remain in the EU, and the Scottish Government will continue to make the case, as strongly as ever, for that democratic choice by the people of Scotland to be respected and for our place in Europe to be protected.”

Article Source: https://news.gov.scot/news/brexit-talks-2