News

Scotland must have choice over future

First Minister sets out plan for referendum in face of hard Brexit.

(Article From www.gov.scot)

The people of Scotland must be offered a choice between a hard Brexit and becoming an independent country, First Minister Nicola Sturgeon said, as she confirmed plans to seek parliamentary approval to begin discussions with the UK Government on the details of a Section 30 order to enable an independence referendum to take place.




In a speech ahead of the UK Government triggering the UK’s formal process to exit from the European Union, the First Minister said that, despite Scotland voting by 62% to 38% to remain in Europe, the UK Government ‘has not moved even an inch in pursuit of compromise and agreement’ since the Brexit vote.

In addition, the First Minister said the UK Government had ruled out membership of the European Single Market ‘with no prior consultation’ and warned of real economic damage caused by the UK leaving the single market.

Outlining how the democratic mandate for holding another referendum is ‘beyond doubt’, Ms Sturgeon said that the UK Government must stand by the position it took in 2014 that an independence referendum should be, in their words, ‘made in Scotland, by the people of Scotland.’

The First Minister added that there must be clarity on the implications of Brexit for Scotland – and clarity about independence – before the choice is put to the country. She therefore proposed that a referendum take place between the autumn of 2018 and the spring of 2019, when the shape of the UK’s Brexit deal will become clear.

The First Minister said:

“Scotland stands at a hugely important crossroads. On the eve of Article 50 being triggered, not only is there no UK wide agreement on the way ahead – the UK Government has not moved even an inch in pursuit of compromise and agreement.

“All of our efforts at compromise have been met with a brick wall of intransigence.

“UK membership of the single market was ruled out with no prior consultation with the Scottish Government or with the other devolved administrations, leaving us facing not just Brexit, but a hard Brexit.

“And far from any prospect of significant new powers for the Scottish Parliament, the UK Government is becoming ever more assertive in its intention to muscle in on the powers we already have. The language of partnership has gone, completely.

“I will continue to stand up for Scotland’s interests during the process of Brexit negotiations. But I will take the steps necessary now to make sure that Scotland will have a choice at the end of this process – a choice of whether to follow the UK to a hard Brexit, or to become an independent country able to secure a real partnership of equals with the rest of the UK and our own relationship with Europe.”

The First Minister added:

“The Scottish Government’s mandate for offering this choice is beyond doubt. So next week I will seek the approval of the Scottish Parliament to open discussions with the UK Government on the details of a Section 30 order – the procedure that will enable the Scottish Parliament to legislate for an independence referendum.

“The UK Government was clear in 2014 that an independence referendum should be, in their words, ‘made in Scotland, by the people of Scotland’ – that is a principle that should be respected today. The detailed arrangements for a referendum – including its timing – should be for the Scottish Parliament to decide.

“It is important that Scotland is able to exercise the right to choose our own future at a time when the options are clearer than they are now, but before it is too late to decide on our own path. By the time a choice comes to be made, there must be greater clarity about Brexit and its implications for us.




“It is just as important that there is clarity about the implications of independence. And there will be.

“We will be frank about the challenges we face and clear about the opportunities independence will give us to secure our relationship with Europe, build a stronger and more sustainable economy and create a fairer society.

“If I ruled out a referendum, I would be deciding – completely unilaterally – that Scotland will follow the UK to a hard Brexit come-what-may, no matter how damaging to our economy and our society it turns out to be.

“That should not be the decision of just one politician – not even the First Minister. It will be decided by the people of Scotland. It will be Scotland’s choice.”

Article Source: http://news.gov.scot/news/scotland-must-have-choice-over-future

£2.9 billion of cuts to Scotland over 10 years confirmed

Welfare cuts continue. by www.gov.scot

Finance Secretary Derek Mackay said that despite limited increases in Barnett consequentials the Chancellors’ spring budget plans confirm £2.9 billion of cuts to the Scottish budget over ten years.

Mr Mackay said it will hit Scottish families and provide absolutely no detail of how he plans to steady the economy in the wake of the UK Government’s plans for Brexit.




The Chancellor also failed to alleviate the welfare cuts that the UK Government is directing at some of the most vulnerable in our society or to lift the prospect of a further £3.5 billion of cuts to public spending in the years to come.

Mr Mackay said:

“The Chancellor has today confirmed a real terms cut to the Scottish budget of 9.2 per cent between 2010/11 and 2019/20. While I welcome the additional Barnett consequentials that were announced today, no one should think that this budget provides an end to austerity from the UK Government – in fact there is still a further £3.5 billion of cuts to come.

“On top of that the Chancellor continued with the UK Government’s damaging welfare cuts that will make many vulnerable and low income households worse off.

“The real elephant in the room in this budget was Brexit. There was no mention of the UK Government’s plans to protect and grow the UK economy as the Prime Minister gets ready to trigger Article 50. This is simply not acceptable. Brexit is a real threat to people across Scotland in so many ways. The Chancellor must tell us his plans.

Commenting on some of the proposals in the budget, Mr Mackay added:

“We have repeatedly called on the UK Government to take action to support the Oil and Gas sector. While welcome, today’s announcement on a ‘discussion paper’ is long overdue and is not the urgent action that the industry needs.

“The Scottish Government will continue to do everything it can to boost the economy, tackle inequality and provide high quality public services but today’s UK budget does little to support those aims.”

Article Source:
http://news.gov.scot/news/welfare-cuts-continue




Derek Mackay: Budget reassurances needed

UK must call a halt to austerity and support economic growth (via scot.gov)

The UK Government’s budget must set out measures to protect households from further austerity and the uncertainty of Brexit, Finance Secretary Derek Mackay has said.

In a letter to the Chancellor, Mr Mackay outlined the urgent need for constructive discussions on the single market and immigration, a reversal of the UK Government’s damaging austerity plans and further support for the oil and gas sector.




Fraser of Allander Institute research has found leaving the single market could reduce Scotland’s GDP by around £8 billion per year and mean 80,000 fewer jobs, compared to a scenario where the UK remains in the EU. With around 181,000 EU nationals currently living in Scotland, Mr Mackay also voiced concerns that any move to limit migration could seriously harm Scotland’s economy.

With the UK Government planning for an additional £3.5 billion of spending cuts in 2019-20, at the point when departure from the EU is likely, Mr Mackay said this was the wrong time for more austerity.

In addition Mr Mackay called for help for the oil and gas industry by improving access to decommissioning tax relief, incentivising exploration, and for them to deliver on their commitment to provide loan guarantees to protect critical infrastructure. He urged the UK Government to follow Scotland’s lead and fund projects that demonstrate they can improve the capacity of Scottish sites for securing decommissioning, dismantling and disposal contracts.

Mr Mackay said:

“Between the confusion and uncertainty created through the UK Government’s approach to Brexit and a welfare reform agenda that has hammered some of the most vulnerable people in society, the Chancellor must this week offer Scottish people some relief in his budget.

“We need to see investment and support for economic growth not more austerity at a time when Brexit poses an unprecedented risk to the UK economy, public finances and consumer confidence.

“A particular issue for both Scotland and the UK is the future of the oil and gas industry. While we are taking action to help the sector, the Chancellor must also step up the plate.

“There must be action to improve decommissioning tax relief, ensuring that the right assets are in the right hands, and delivery of their commitment to provide loan guarantees which is of vital importance to both the supply chain and ensuring critical infrastructure remains operational.

“With around £17.6 billion expected to be spent in the North Sea over the next decade on decommissioning, the UK should join Scotland in funding projects to help secure work and cut costs in this emerging field.”

Article Link: http://news.gov.scot/news/budget-reassurances-needed




Nicola Sturgeon speech to the David Hume Institute

Below is a speech given by SNP Leader and First Minister of Scotland Nicola Sturgeon to the David Hume Institute.

I value – as I am sure all the party leaders do – the opportunity to discuss with you some of the key issues facing Scotland for the future.

When I first spoke here as SNP leader in 2015, it was in the aftermath of the independence referendum. Last year, it was during the run-up to the Scottish parliamentary elections and the EU referendum. And so I hoped – as I suspect many of you did – that 2017 might be a slightly quieter year in Scottish politics.

However, as you have probably noticed, things haven’t quite turned out that way. Within a month, we expect the UK Government to formally trigger Article 50 – setting the United Kingdom on course towards leaving the European Union.

And so this evening – perhaps not surprisingly – I want to talk about that. I’m not planning to concentrate on the likely impact that leaving the EU and the single market would have on Scotland – although as you know, I believe Brexit’s effects would be profound, long-lasting and damaging to our economy and our society.

Instead, I wish to concentrate more specifically on what Brexit means for democracy in Scotland – how it has exposed the democratic deficit which still exists at the heart of our governance, and what options we have for addressing that.

But I want to begin by looking back. This year marks the 20th anniversary of another referendum – the one which led to the establishment of the Scottish Parliament. That referendum confirmed overwhelming support for devolution – it was supported by almost ¾ of those who voted.

And it’s maybe worth thinking back to why the decision was so resounding. The campaign for a Scottish Parliament was based – above all –on the idea that we faced a democratic deficit. Decisions were being taken for Scotland – so often by governments we didn’t vote for – rather than by Scotland.

The late Canon Kenyon Wright made the argument well in 1989, on the first day of the Scottish Constitutional Convention. He was speaking two days before the poll tax came into force in Scotland. And he said this about the UK Parliament

“Again and again…it has debated measures which have affected quite fundamentally Scotland’s national institutions and the quality of life of our people. Again and again the elected representatives of the Scottish people have voted….against these damaging policies. Again and again and again parliament has imposed these on Scotland.”

The poll tax wasn’t the only example of this democratic deficit. Many social and economic policies of the 1970s and 1980s – such as the way in which deindustrialisation was handled across many parts of the country – would also stand as examples.

But the poll tax – perhaps more than anything else – came to exemplify Scotland’s democratic deficit. It was implemented in Scotland despite overwhelming public opposition. And perhaps the overriding reason that so many people in 1997 endorsed the idea of a Scottish Parliament, was to prevent that – or anything like it – ever happening again.

In many respects, of course, the Scottish Parliament has been a very significant success. It is now firmly established as the centre of Scottish public life – the institution which people expect, and most trust, to reflect their priorities, values and dreams.

Devolution has enabled us to pursue a different approach to politics. Now, I don’t want to overstate this case. Scottish politics – and I’m being polite here – is never knowingly non-tribal!

But at the very least, the modern working practices of Holyrood are far removed from some of the more arcane rituals of Westminster. And the fact that we have proportional representation means that a search for consensus – a degree of give and take and negotiation – is part and parcel of the Scottish parliamentary system.

But of course the contrast between the Scottish and UK Parliaments isn’t just one of approach; there have also been significant differences in policy.

Early Scottish Parliaments saw measures such as world leading homelessness legislation and a ban on smoking in public places. The Government I now lead reintroduced free university tuition and set the most ambitious climate change targets in the world. It has legislated for a minimum price for alcohol – although that’s a measure still held up in the courts. It has mitigated the impact of UK Government welfare cuts such as the Bedroom Tax, and expanded early years education and care.

All of these are significant achievements of devolution.

And let me stress, they belong to more than one government and more than one party.

One of the areas where that contrast with the UK Government has been most obvious in recent years, has been our approach to universal benefits. The Scottish Parliament has chosen to provide, defend and extend certain core universal services, rights and benefits.

That decision helps households across the country. It helps, for example –

Students who benefit from higher education without incurring £9000 a year of debt for tuition costs;
Older people who are entitled to concessionary bus travel and who are eligible, if they need it, for free personal care.
Commuters who no longer pay bridge tolls for their journey into work.
Families who benefit from a health service which is free at the point of delivery. Before 2007, more than half a million people who earned as little as than £16,000 a year had to pay for prescriptions.

Now, as you know, the Scottish Parliament decided last week that higher rate taxpayers in Scotland should have a different tax threshold from taxpayers in the rest of the UK.

Instead of following the UK Government with a hefty increase in the higher rate threshold – one of the policies that the Resolution Foundation has said will take the UK back to levels of inequality not seen since the days of Margaret Thatcher – we decided to freeze it. As a result, we are asking people who earn more than £43,000 a year, not to pay more than they do now, but to forego a tax cut of approximately £7.70 a week: less than the price of a single prescription in England.

There has been a lot of misleading analysis of that decision. It has been reported that it makes Scotland the most highly taxed part of the UK. But that argument simply isn’t true.

It completely ignores the fact that the Scottish Government protected households across Scotland from council tax increases for 9 years. That didn’t happen in the rest of the UK.

Average council tax charges in Scotland are significantly lower than in the UK as a whole – to the tune of around £300-400 a year. Even now, the level of council tax increases in Scotland – a maximum of 3 per cent – is lower than the 5 per cent increases permitted in England.

And of course the argument about tax shouldn’t simply be about what you pay in; it’s about what you get back. For many households – if they have children at university, or parents who need personal care, or if they themselves need prescriptions – the benefits of living in a country with strong universal public services far outweigh the benefits of a £7.70 a week tax cut.

I’ve stressed that principle of universality – partly because it has become a key point of distinction between Scottish and UK Governments, but also because it reflects a bigger principle. Universal services are part of a social contract between the government and the people.

We invest in public services to help provide a secure, stable and inclusive society for everyone who lives here. We believe that by doing so we can encourage people’s talent, enterprise and ambition. We can help to ensure that Scotland will be a place where people want to visit, invest, work and live.

And as part of that, we don’t try to divide society between one mass of people who contribute taxes, and another group who receive benefits. That doesn’t actually reflect reality. We help and support everyone to contribute to society; and we enable everyone to receive some common services or benefits.

In my view – though again, I don’t want to overstate this – one possible reason why the result of the EU referendum was different in Scotland than elsewhere in the UK, is that we have been able to demonstrate a more progressive, inclusive approach to social and economic policy.

That doesn’t mean that everything here is perfect – of course it doesn’t. And it certainly doesn’t disregard the fact that a very substantial minority of people in Scotland – 1 million in total – voted to leave the EU. But it may mean that the sense of being left behind or ignored – which is often perceived as a factor in the wider UK’s Brexit vote – played less of a part here.

In addition, the institutions established by devolution command – certainly in relative terms – widespread confidence. According to the most recent figures, 73 per cent of people in Scotland trust the Scottish Government to act in Scotland’s long-term interests. That is more than three times higher than trust in the UK Government. It’s maybe worth being clear about that – it’s not three percentage points higher, it is actually three times higher than trust in the UK Government.

So in my view, the distinctive approach to politics which has been pursued by successive Scottish Parliaments may well be – at least in part – responsible for the different EU referendum results in Scotland and the rest of the UK.

However it is that distinctive approach that is also now challenged by the outcome of the EU referendum.

Having our own national parliament and a government located here in Scotland has unquestionably made the governance of Scotland more democratic, more representative and more responsive to the people.

But after 20 years of progress, devolution in Scotland is now facing a grave threat from the Conservatives at Westminster.

The democratic deficit which fuelled the demand for a Scottish Parliament in the 1980s and 1990s has opened up again.

The Brexit process has emboldened a now powerful Westminster faction, which perhaps never fully embraced devolution, and which now sees an opportunity to rein in the Scottish Parliament.

In place of a multinational United Kingdom democracy, they see Brexit as the way to claw back ground.

This direction of travel is clear for all to see when we examine what happened before, during and after the Brexit vote.

In the 2014 independence referendum, a key plank of the Better Together campaign was the assertion that a Yes vote would put our EU membership at risk and a no vote would secure it.

However, in no time at all after Scotland voted to stay in UK, we faced an EU referendum – even though the Tories whose policy it was returned just one MP in Scotland at the General Election.

The Scottish Government argued that 16 and 17 year-olds should have the vote – but Westminster said Nn.

We also argued EU citizens should be allowed to vote – but Westminster said no.

And we also took seriously the UK Government’s argument – one which was made repeatedly during the independence referendum campaign – that the United Kingdom is a partnership of equals. We proposed, on that basis, that the United Kingdom should only leave the EU, if all four countries within it voted to leave.

After all, if the UK truly is a partnership of equals, that should be reflected in the reality of legislation, as well as the rhetoric of campaigning. But Westminster ruled that out too.

A clear pattern of Westminster closing the door on any compromise with Scotland and closing their ears to the democratic voice of Scotland was already emerging.

That pattern has continued.

When the vote itself came, Scotland voted by a decisive 24-point margin to remain in the EU.

Every single one of the nation’s 32 local authority areas voted to remain.

The Scottish Parliament then voted by 92 votes to zero to mandate the Scottish Government to explore options for protecting Scotland’s relationship with the EU, and our place in the single market

Now, the party I lead was very clear in its manifesto for last year’s Scottish elections. We said that the Scottish Parliament should have the right to hold a referendum “if there is a significant and material change in the circumstances that prevailed in 2014, such as Scotland being taken out of the EU against our will.”

However, a referendum on independence has not been our starting point. I didn’t decide on 24 June last year to immediately exercise that mandate. Instead, since June, the Scottish Government has consistently sought to find common ground, or areas of compromise, with the UK Government.

During the autumn, we argued that the UK Government, notwithstanding its exit from the EU, should remain inside the single market. We still support that solution. In my view it remains, overwhelmingly, the obvious compromise solution for the UK as whole. It would reduce the worst economic and social consequences of Brexit.

And it would also be the most democratically justifiable option. After all, 48 per cent of those who voted chose to remain. So did 2 of the 4 nations of the UK. Even in Wales, which voted to leave, the Welsh Government and Plaid Cymru are now jointly arguing for continued single market participation, which they say could include remaining part of the European Economic Area.

But again, the UK Government said Nn. The Prime Minister’s speech last month confirmed the policy of a hard Brexit, outside the single market. I think it is important to note that even though she said shortly after becoming PM that she would seek to agree with the devolved administrations a UK wide approach to triggering Article 50, something I was very heartened by at the time, her speech – ruling out continued UK membership of the single market – was made without any prior consultation whatsoever with the Scottish Government or the other devolved administrations.

Now, as things stand, there remains one further opportunity for compromise. The Scottish Government has proposed that as part of its negotiations the UK Government would seek an outcome that would allow Scotland to retain single market membership, even after the rest of the UK has left. That would mean that we would continue to benefit from free trade and free movement of people

Single market membership under these terms is not an ideal scenario for Scotland. For example, it seems almost certain that we would be inside the single market, but outside the European Customs Union. Our proposals address the technical issues which arise from that.

But although elements of our proposals are complex, and less than ideal – that is inevitable. As we all know, everything about Brexit will be complex, and less than ideal.

We have already seen that the UK Government – rightly – is considering special measures to ensure an open border is maintained in Ireland. Gibraltar’s circumstances will also require particular attention. And there has been talk about specific deals for specific sectors of the economy.

These times require open mindedness, fresh thinking and flexibility. The Scottish Government has tried to bring those qualities to our discussions with the UK Government.

But so far the UK Government has refused to commit to putting our proposal forward as part of its Article 50 aims.

Again, despite its promise to listen and to seek agreement, whenever Scotland’s voice is asserted, the reaction of Westminster is to say no.

I mentioned earlier, that we were told repeatedly during the independence referendum that Scotland was an equal partner in a family of nations. But the EU referendum last June was the most important UK-wide decision of my lifetime. When the Scottish Government made proposals on how the referendum should be run, we were ignored. When people in Scotland voted to remain, we were outnumbered. Now – when the Scottish Government is doing everything we can to seek a compromise – it looks as though we are being disregarded.

There are those who argue that, as the vote was a UK-wide one, the result in Scotland is essentially an irrelevance, of mere academic interest.

However, to do so is to deny a long-established constitutional and political tradition in Scotland, one that goes well beyond the confines of my own political party.

Namely, that Scotland – as a nation – should always have the right to determine its own destiny, and that the people of this nation should be able to determine the form of government best suited to their needs.

The UK Government and Parliament, to their great credit, accepted that principle back in 2012 in the Edinburgh Agreement and the legislation that followed. After the independence referendum, it informed the work of the Smith Commission, and appeared in its final report.

But the actions of the Conservative Government in relation to Brexit and the devolved administrations seem to disregard it. And they go further than just a lack of partnership in forming a common position with regard to Article 50 – they actually threaten the existing basis of devolution.

Because, far from the promises of the Leave campaign that a Brexit vote would automatically see swathes of new powers repatriated from Brussels to Holyrood, there is not yet any real guarantee from the Tories that the Scottish Parliament and the other devolved administrations won’t be stripped of some of their powers.

In my view, the post Brexit landscape would demand a fundamental rebalancing of powers across the UK. It would be time to consider whether, for example, employment law should be devolved instead of left at the mercy of a UK Government that has already threatened a race to the bottom if it doesn’t get its way in the EU talks. And surely, it is time now for a real debate about where power over immigration should lie and whether a one size fits all policy is any longer fit for purpose.

But far from being open to these discussions, it seems that the UK Government wants to go in the opposite direction. It is clear from their statements that even elements of farming and fishing policy – which have been wholly devolved competences from day one – now risk being taken back to Westminster.

That would be utterly unacceptable.

It would betray the claims and promises made during the EU referendum campaign.

And more profoundly it would fundamentally undermine the basis of the existing devolution settlement.

The Scotland Act 2016 supposedly enshrined in law the principle that the Westminster Parliament should not normally legislate in devolved matters without the consent of the Scottish Parliament.

But in the recent Supreme Court case the UK Government went out its way to argue that its own legislation was in fact worthless and that the Westminster Parliament could legislate at any time on any matter whether devolved or not.

So what we have is in effect an attack on the very foundations of the devolved parliament we voted for 20 years ago.

It is being made by a UK Government which speaks the language of partnership but which in reality is paying scant if any heed right now to Scotland’s democratic voice. The question we face, is how to respond to it.

I began this speech by talking about the 1997 referendum. That referendum, of course, gave rise to the 1998 Scotland Act, which in turn led to the establishment of the Scottish Parliament.

After it had been passed by the Westminster Parliament, Tony Blair gave Donald Dewar a signed copy of the Scotland Act. It’s now kept in the Parliament building at Holyrood. The Act was inscribed to Donald with the words “It was a struggle, it may always be hard; but it was worth it. Scotland and England together on equal terms!”

The Scotland Act was a significant achievement – a lasting testament to Donald Dewar’s career in public service. And Tony Blair’s sentiment was undoubtedly a generous one. But it wasn’t quite accurate. Scotland is not on equal terms in the United Kingdom. The EU referendum has demonstrated that more clearly than ever.

The entire process, so far, has echoed those words of Canon Wright from 28 years ago: “Again and again the elected representatives of the Scottish people have voted… against these damaging policies. Again and again (the UK) parliament has imposed these on Scotland.”

There are no easy answers to the situation Scotland finds itself in – it is one which is not of our making or choosing.

But the basic question we face is actually quite simple – what sort of country do we want Scotland to be and who gets to decide?

The policies of Scotland’s elected parliament, since devolution, provide some sort of an answer. They suggest that the people of this country overwhelmingly believe in a Scotland that is progressive, internationalist, outward looking, connected and compassionate.

Those values and priorities are threatened by the type of Brexit which the UK Government appears to be pursuing – one which is inward looking, regressive and which ignores Scotland’s views time and time again.

The UK Government still has an opportunity to change course before it triggers the Article 50 process. I very much hope it does.

However if it doesn’t, it will show that the democratic deficit which people voted to end in 1997 doesn’t just endure – it continues to cause harm to Scotland’s interests, to our international relationships, to our very sense of our own identity.

And so if those circumstances arise, proposing a further decision on independence wouldn’t simply be legitimate, it would arguably be a necessary way of giving the people of Scotland a say in our own future direction.

It would offer Scotland a proper choice on whether or not to be part of a post Brexit UK – a UK that is undoubtedly on a fundamentally different path today than that envisaged in 2014.

And in the absence of compromise from the UK Government, it may offer the only way in which our voice can be heard, our interests protected, and our values upheld.

As a result of the Brexit vote, we – Scotland and the UK – stand just now at a crossroads. Decisions taken in the months to come will reshape our economy, our society and our place in the world – in short, they will shape the kind of country we are going to be. The question is should we decide for ourselves which path to take or are we willing to have that decided for us?

We may all offer different answers to that question. But surely the choice should be ours.

Article Source: https://www.snp.org/david_hume_institute




Scottish Local Government Financial Statistics: 2015-16

A National Statistics Publication for Scotland. (via www.gov.scot)

Scotland’s Chief Statistician today published Scottish Local Government Financial Statistics: 2015-16. This is an annual publication that provides a comprehensive overview of financial activity of Scottish local authorities based on their final, audited accounts. The publication covers: local authority revenue expenditure and income, capital expenditure and income; reserves; debt; local taxation; and local authority pensions. The figures released today were produced by independent statistical staff free from any political interference, in accordance with professional standards set out in the Code of Practice for Official Statistics.




Revenue Expenditure and Income

Scottish local authorities reported an overall revenue surplus on the provision of services of £0.45 billion (2.7% of total revenue expenditure) at 31st March 2016. Of this surplus, £0.34 billion was transferred to the Capital Fund to be used for Capital expenditure and £0.03 billion was transferred to other reserves (e.g. Insurance Fund), the remaining £0.07 billion contributed to General Fund and HRA reserves.

Gross revenue expenditure on services was £15.3 billion in 2015-16, up 0.7% on 2014-15. Of this, £0.66 billion, up 0.7% on 2014-15, of expenditure relates to the provision of housing through the Housing Revenue Account (HRA) and £14.7 billion, up 0.7% on 2014-15, relates to the General Fund.

Net revenue expenditure on services was £10.1 billion in 2015-16, up 0.7% on 2014-15. The highest spending service in the General Fund is education which had net expenditure of £4.7 billion (45% of General Fund net revenue expenditure). Social Work is the next largest service with net expenditure of £3.2 billion (30%).

Finance and investment net expenditure (interest and debt repayments net of investment income) was £1.5 billion in 2015-16, up 2.5% on 2014-15.

Total General Funding in 2015-16 was £12.0 billion. This is made up of Scottish Government General Revenue Grant £7.1 billion (60%), Non Domestic Rates £2.8 billion (23%), Council tax £2.1 billion (17%), and other funding of £0.001 billion (rounds to 0%).

Council Tax

The average Band D Council Tax in Scotland was £1,149 in 2015-16. Council Tax income was £2.05 billion in 2015-16 (after Council Tax Reduction).

The total number of chargeable dwellings (i.e. the tax base) has increased slightly each year, rising from 2.39 million in September 2011 to 2.46 million in September 2016.

Non-domestic Rates

Non-domestic rates bills are calculated using the rateable value (RV) of a non-domestic property, multiplied by the poundage rate (48.0p in 2015-16) plus any relevant supplements (such as Large Business Supplement), less any rates reliefs.

Non-domestic rate income collected increased from £2.511 billion in 2014-15 to £2.579 billion in 2015-16. This is due to the net effect of several factors such as the inflationary increase in the poundage rate, the impact of revaluation appeals, changes to rates relief schemes and other changes to the tax base (e.g. new or demolished properties).

Non-domestic rates reliefs provided relief of £0.626 billion in 2015-16, up from £0.607 billion in 2014-15. Increases in Small Business Bonus Scheme and Charity relief were the main factors which contributed to the increased total.

As at 1st April 2016, the non-domestic rate tax base comprised of 225,259 non-domestic properties on the Valuation Roll with a total rateable value of £6.796 billion.

Reserves

On 1 April 2015 local authorities had total revenue reserves of £1.84 billion; over the course of the year this increased by £0.05 billion (2.6%) to stand at £1.89 billion on 31st March 2016. Capital reserves increased by £0.1 billion (18.3%), from £0.53 billion at the 1st April 2015 to £0.63 billion at the 31st March 2016.

Capital Expenditure

Total capital expenditure was £2.54 billion in 2015-16 (£0.64 billion in the HRA and £1.89 billion in the General Fund), compared to £2.40 billion in 2014-15 – an increase of 5.6%. The majority (83%) of capital expenditure went on new construction, conversions and enhancements to existing buildings.

Loans Fund Borrowing

The total value of Loans Fund advances outstanding at 31st March 2016 was £13.41 billion (of which £10.05 billion was General Fund and £3.36 billion was HRA). General Fund Loans Fund advances outstanding increased by £0.09 billion (0.9%) between 31st March 2015 and 31st March 2016. HRA loans fund advances outstanding rose by £0.14 billion (4.5%) between 31st March 2015 and 31st March 2016. At 31st March 2016, the Scottish average General Fund loans fund advances outstanding was equal to £1,870 per person, up 0.4% on 31st March 2015, and the average HRA loans fund advances outstanding was equal to £10,609 per HRA dwelling, up 4.6% on 31st March 2015.

Assets

The total value of assets held by local authorities at 31st March 2016 was £40.7 billion. This is an increase of 3.3% (£1.29 billion) since 31st March 2015. The vast majority of the assets were operational assets (£39.1 billion, 96% of total assets), including £11.3 billion of council dwellings (28% of total assets) and £19.0 billion (47%) of other land and buildings.

Article Source & Further Info: http://news.gov.scot/news/scottish-local-government-financial-statistics-2015-16




Brexit meeting update 23/02/17

“Urgent answers needed” on powers, farming, fisheries and environment. (via www.gov.scot)




Guarantees over future powers and the protection of European funding and market access are needed urgently, Rural Economy Secretary Fergus Ewing said.

At a meeting between the UK Secretary of State Andrea Leadsom and devolved administrations, Rural Economy Secretary Fergus Ewing, Environment Secretary Roseanna Cunningham and Minister for UK Negotiations Michael Russell repeatedly pressed for all areas of EU powers within devolved competence to be passed straight to Scotland, Wales and Northern Ireland.

They also asked for clarity on how the UK Government sees Brexit impacting on key areas including:
•Protection of funding that currently benefits the Scottish rural economy, including through the Common Agricultural Policy and the European Maritime and Fisheries Fund
•Tariff free access to the single market
•Guarantees on the rights of EU nationals to remain and future access to the European workforce
•Guarantees that permanent access to our fishing waters will not be negotiated away
•The future of environmental protection and regulation.

Mr Ewing said:

“European funding and powers are vital to our rural economy and we need urgent and binding guarantees from the UK Government on what will happen after Brexit. Following repeated requests, I have again pressed the Secretary of State for clarity that EU powers will pass straight to Scotland, Wales and Northern Ireland.

“I have also asked the UK Government to guarantee that Scotland will continue to receive funding at least at current levels provided from Europe.

“Many of our farmers and food producers want to know that they will continue to have access to the single market without tariffs or other barriers and access to much needed EU workers. While our fishermen rightly want to ensure access to our waters isn’t negotiated away.

“l raised all these matters today and I will continue to call for urgent progress on the answers our rural communities and economy need.”

Environment Secretary Roseanna Cunningham said:

“European legislation and regulation offers vital protection for our environment and I have been pressing the UK Government to ensure this will transfer in full after Brexit, without any dilution of standards either on exit or as a result of subsequent trade deals. A healthy natural environment is central to Scotland’s economy, our health, landscape and our way of life and must be given its place in negotiations.

“I have also once again highlighted the need of many, including our research institutes, to have clarity on the long term rights of EU nationals to live and work in Scotland and on future access to EU workers – given how vital those from other European nations are to our research community.

“It is crucial that the UK Government honours its commitment to joint working and to take seriously the right for the Scottish Government to play a full role in decision making and negotiations of these key issues.”

Article Source: http://news.gov.scot/news/brexit-meeting-update




New TV channel for Scotland

Culture Secretary responds to BBC announcement (via www.gov.scot)




Scotland’s new BBC TV channel is a welcome step in the right direction, but must be properly resourced, Culture Secretary Fiona Hyslop said today.

Responding to today’s announcement that a new TV channel for Scotland will begin broadcasting next Autumn and an additional £20m will be made available for Scotland to make UK-wide programmes, Ms Hyslop said:

“This is a real shift in the right direction from the BBC and responds to calls we’ve made for some time for a new TV channel for Scotland. While the increased investment in both journalism and wider production in Scotland is long overdue, this is a very positive development.

“The Scottish Broadcasting Commission estimated in 2009 that a similar channel would cost around £75 million a year – more than double the £30 million announced today. It’s vital that the new BBC Scotland channel has complete commission and editorial independence, and is provided with the funding needed to match ambition.

“The new channel will increase the proportion of the licence fee raised in Scotland that is spent in Scotland in years to come – but sadly will still fall well short of the proportiate share being spent in Northern Ireland and Wales. We continue to call for the BBC to put Scotland on an equal footing with other devolved nations.

“I welcome the additional £20m for Scotland to make BBC network programmes, which will strengthen growth in our vibrant creative industries. We want to see this investment continue to increase so that Scottish content on the wider BBC network is not sidelined.

“Investment in 80 new journalism jobs is fantastic news, and goes to underline that Scotland has the talent and skills to produce an hour-long news and current affairs programme covering issues from home and around the world.

“In the intervening 18 months before the new TV channel is established, the BBC must invest in quality news and affairs programming so that they deliver content that is relevant to the people of Scotland as we move through Brexit, the triggering of Article 50 and beyond.”

Article Source: http://news.gov.scot/news/new-tv-channel-for-scotland