The “single market” explained
(By Alex Aitchison SNP)

The Tories are still no further forward in setting out what Brexit means, beyond “Brexit means Brexit”.

The position of the UK government became even more farcical this week.

First, David Davis, the UK Government’s Brexit Secretary, told MPs that it was “very improbable” that the UK would stay in the European single market, which means people, goods and services can move freely anywhere within the EU.

Number 10 Downing Street then said that the Brexit Secretary was setting out his own view and not that of the government.

Then Theresa May was unable to answer the simple question of whether she wants to see the UK in the single market – Yes or No.

In contrast, the SNP is clear that the best outcome, not just for Scotland but for the whole UK, is to remain a member of the single market.

What is the single market?

The single market has been achieved by removing barriers to trade and having a single set of trade rules across all member states. Put simply, the aim of the EU’s single market is to make it as easy to trade between Edinburgh and Dusseldorf as it is between Edinburgh and Dundee.

What would the impact of leaving the single market be on our economy?

For businesses in Scotland, being in the single market means being able to sell goods and services to 500 million people, without paying any tariffs and without having to adhere to completely different rules in each country. An estimated 300,000 jobs in Scotland rely on our trade with the rest of the EU.

Every sensible economic commentator recognises that leaving the EU will weaken our economy. This would be compounded if the Tories took us out of the single market as well.

One important example is the financial services sector in Scotland, which employed around 86,300 people in Scotland in 2014. Outside the single market, the Scottish financial sector would have no access to the financial services passport. This will mean firms cannot operate across the single market under a single licence. According to the Institute for Fiscal Studies (IFS) “No deal short of (near-full) single market membership would give similar access to that conferred by ‘passporting rights’”. Analysis by PwC has found that the impact on the financial services sector would be negative, reducing the sector’s output in both the medium and longer term.

Membership of the single market has also been vital to attracting investment into Scotland in recent years. In 2015 Scotland secured more foreign direct investment (FDI) than any nation or region of the UK except London. Since 2006, EY have estimated that 40,000 jobs have been created in Scotland as a result of FDI. However, the OECD has concluded that “if access to the single market was lost, lower FDI inflows would seem unavoidable, reducing the inflows of new ideas and knowledge into the UK. This would weaken fixed investment, reduce export capacity and hit innovation and productivity (technical progress) over time.”

What is the rest of the world saying?

The EU

Donald Tusk, President of the EU Council, has said that membership of the single market “requires acceptance of all four EU freedoms – including freedom of movement. There can be no single market à la carte.”

Jean-Claude Juncker, President of the European Commission has said: “those who want to have free access to our internal market have to implement our freedoms without exceptions and without nuances”.

France

President Hollande has said that for the UK to remain in the single market it must accept free movement: “There cannot be freedom of movement of goods, free movement of capital, free movement of services if there isn’t a free movement of people…It will be a choice facing the UK – remain in the single market and then assume the free movement that goes with it or to have another status.”

Germany

Angela Merkel, Chancellor of Germany said: “whoever would like to have free access to the European internal market will also have to accept all basic freedoms in return, including the free movement of people.”

Italy

Matteo Renzi, the Italian Prime Minister, said it is impossible “to speak only about [the] single market and not accept a politics about migration.”

Norway

Without membership of the European Free Trade Association (EFTA), the UK could not be a member of the European Economic Area. However, Norway’s European affairs minister, Elisabeth Vik Aspaker has said: “It’s not certain that it would be a good idea to let a big country into this organisation. It would shift the balance, which is not necessarily in Norway’s interests.”

Find out more about what this means in practice here.

Japan

The Japanese government has produced a fiften-page dossier that sets out in detail the potential implications of leaving the single market: a loss of company headquarters; a hit to exports; turmoil in labour markets; damage to financial services, and cuts to research and development investment.

The document warns that “Japanese businesses with their European headquarters in the UK may decide to transfer their head-office function to continental Europe if EU laws cease to be applicable in the UK after its withdrawal.”

It also calls for the UK to “maintain access to workers who are nationals of the UK or the EU”.

Our plan for Scotland: supporting families
(By Liam Furby)

Nicola Sturgeon has set out the Scottish Government’s plans for the next year.

Here’s just some of the action the SNP Scottish Government is taking to support Scotland’s families.

• We will expand free early learning and childcare, taking further steps towards doubling provision by 2020. New ways to support low-income families with upfront childcare costs will be piloted too.

• Families of all newborn babies in Scotland will benefit from a baby box with essential items for a child’s first weeks.

• From Spring next year, all pregnant women will have access to free vitamins.

• We will take forward our plans to deliver 50,000 homes over the next five years – 35,000 of them housing association or council homes – and continue to help people purchase a home through our shared equity programmes.

• With new social security powers we will bring together Healthy Start food vouchers and Maternity Grants into a new expanded Best Start Grant. This will provide additional support for low income families during the early years of their children.

• Scotland leads the way on access to IVF treatment, and we will provide an additional £2 million to expand access further. From September 2016 access is extended to couples with children in the home, where one partner does not have a biological child.

• We are implementing our plans to reduce the poverty-related education attainment gap, backed up by the £750 million Attainment Scotland Fund, including £100 million, which will go directly to schools.

• We will introduce a new Child Poverty Bill to re-introduce statutory income targets abolished by the Tory UK government.

• We are increasing the child allowance in the Council Tax Reduction Scheme by 25 per cent. This will  benefit 77,000 households, including 140,000 children, by an average of £173.

• We will protect low-income families from cost of living increases by raising the Personal Allowance to £12,750 by the end of the Parliament.

• We will abolish the Bedroom Tax at the first available opportunity.

ARTICLE SOURCE: http://www.snp.org/our_plan_for_scotland_supporting_families

Parliament to hold series of Brexit debates

A series of parliamentary debates on the implications of Brexit were announced today by First Minister Nicola Sturgeon.

The First Minister announced that parliament would look at the impact on specific sectors such as education, the economy, rural affairs and the environment.

During a statement to parliament, the First Minister updated MSPs on the work the Scottish Government and Cabinet members have undertaken since the EU referendum.

The First Minister also said the Scottish Government would continue to press the UK Government for urgent clarification on how the UK will deliver on the Prime Minister’s commitment to full involvement for Scotland in the process around Article 50 and negotiations with the EU.

Addressing parliament, the First Minister said:

“Before the summer recess, parliament gave the Scottish Government a mandate to explore all options to protect Scotland’s relationship with the EU. Since the referendum, our first priority has been reassurance. In particular, we have sought to do everything we can to reassure non-UK EU citizens who live in Scotland and we have also taken targeted steps to support and promote economic stability.

“Last month, I set out a £100 million economic stimulus plan. Yesterday I announced that a £500m Scottish Growth Scheme will form a central part of our Programme for Government. In taking these steps, we are acting on our obligation to mitigate the immediate effects of the referendum result and we will continue to do so.

“But we also have to be realistic about the long term consequences of leaving the EU. There is no doubt that leaving the EU will be an extraordinary self-inflicted blow to the UK’s competitiveness and it will be compounded if the decision is to leave the single market as well. That is why it is so essential that we work to retain the benefits of our EU membership.

“We have been working hard over the summer in discussions with UK government officials and we continue to press for urgent clarification of how the UK will deliver on the PM’s commitment to full involvement for Scotland. The Parliament’s approval of the appointment of Michael Russell yesterday ensures that we will have a dedicated Minister leading for Scotland in this process.

“We also intend to propose a series of parliamentary debates over the next few weeks on the implications of Brexit in key areas such as the economy, rural affairs, education and the environment. These debates will give all members the opportunity to have their say on the issues the Scottish Government should be prioritising as our discussions with the UK government develop.

“As we continue to consider the best way forward, my assurance is this: our guiding principle will continue to be – at all times – the best interests of the people of Scotland.”

ARTICLE SOURCE: http://news.scotland.gov.uk/News/First-Minister-updates-parliament-on-EU-2a52.aspx

£500m new support for businesses

Scotland First Minister

First Minister sets out Programme for Government.

A new £500m package of financial support for private sector business investment was announced by First Minister Nicola Sturgeon today as she set out plans to increase economic growth in her Programme for Government.

The three-year Scottish Growth Scheme will see the Scottish Government unlock investment for the private sector, which is facing increased uncertainty as a result of Brexit. Individual investment guarantees, and some loans, of up to £5 million will be available to small and medium sized firms who would otherwise be unable to grow because of a lack of investment finance.

The scheme will be open to new and early-stage high growth potential companies, with clear export growth plans, particularly in technology-intensive sectors and businesses in emerging markets, such as financial technology (FinTech). As financial guarantees, the support will not come from existing spending plans, and will instead see the Scottish Government share some of the risk faced by small companies, when they make big investment decisions.

The announcement came as the First Minister revealed which capital investment schemes will benefit from £100 million of accelerated capital spending in this financial year.

In a programme designed to boost growth and equip Scotland’s economy for the future, the First Minister also announced steps to deliver on the Government’s commitment to 100 per cent superfast broadband and establish a National Manufacturing Institute for Scotland. She also confirmed £290m worth of European Structural Funds projects to support Scotland’s people, communities and businesses. With partner funding, this will deliver a total investment of £650m.

The announcement of new economic support came as part of wide-ranging legislative programme that will see 14 bills introduced, continuing to deliver on the Scottish Government’s priorities to create opportunities for all and transform public services. Four of the bills will be introduced as a result of new powers devolved to the Scottish Parliament including a Social Security Bill to establish a social security agency.

On education, the First Minister reaffirmed her commitment to plans that will deliver the Government’s priorities for childcare, improve school attainment and widen access to further and higher education.

This will include a review of school governance, the direction of more funding to headteachers and a focus on de-cluttering the curriculum to empower schools and free teachers to focus on standards and attainment.

The First Minister announced that the provision of fully funded early learning and childcare would be doubled over the Parliament, and that immediate approaches to reducing up-front childcare costs would be piloted.

In the further and higher education sector, at least 116,000 full time equivalent college places will be maintained and student support reviewed. The Scottish Government will work with stakeholders and the Commissioner for Fair Access to develop an implementation plan for the recommendations contained in the Widening Access Commission’s “Blueprint for Fairness”.

Outlining her plans for continuing to support Scotland’s public services, the First Minister confirmed an investment of £200m in the Golden Jubilee National Hospital and five elective centres across Scotland over the next five years, and also the introduction of a Domestic Abuse Bill to prevent and eradicate violence against women and children.

The Land Reform Act will be implemented and the measures in the Community Empowerment Act taken forward as first steps towards making it easier for people to develop their local economies and environments.

The First Minister said: “This is a new parliament, with new powers, operating in a new political, economic and constitutional context.

“This Programme for Government sets out how we will use those powers and adapt to that new context.

“It recognises that Government is about more – much more – than legislation. It therefore sets our legislative programme in the context of our wider ambitions and, crucially, it sets out how we will seek to protect Scotland’s interests, particularly our economic interests, in the wake of the EU referendum. Today’s statement is about the nuts and bolts of delivery – the hard graft of turning our commitments into reality.

“Most importantly of all, it demonstrates how we will implement the mandate the people of Scotland gave us to drive sustainable economic growth, reform education and create opportunities for all, transform our public services and empower local communities.”

Setting out a major new economic initiative, the First Minister said: “The proposal for a Scottish Growth Fund is an exceptional response to an exceptional economic challenge.

“This is a half-billion pound vote of confidence in Scottish business, Scottish workers and the Scottish economy.

“We are determined to build an economy where everyone has a fair chance to contribute to growth, and where everyone can share in the benefits of growth.”

Highlighting the continued focus on education, FM continued: “Supporting children and families is at the heart of this Programme for Government. We will ensure that every young person can fulfil their potential, because that’s the only way in which Scotland can fulfil its potential.

“We must not tolerate a situation where some children from deprived areas do less well at school than those from affluent areas. The measures we will implement over the next five years constitute a comprehensive approach to tackling that attainment gap.

“This Programme for Government demonstrates how, with an iron focus on the day to day business of government, we will create opportunity for all.”

FULL DOCUMENT DOWNLOAD: http://www.gov.scot/Resource/0050/00505210.pdf

Article Source: http://news.scotland.gov.uk/News/-500m-new-support-for-businesses-2a31.aspx

Our plan for Scotland: what you need to know
(By Liam Furby)

Today Nicola Sturgeon set out the Scottish Government’s programme for Scotland for the year ahead. It maintains a focus on the day-to-day priorities of government, against the backdrop of the political and economic uncertainty caused by Brexit.

The Programme for Government includes measures to create a more equal society, grow our economy, and protect Scotland’s place in the world. Read the plan in full here.

Here’s just some of what it includes.

Action to ensure our education system is world-class, with opportunities for all

In the coming year the Scottish Government will continue to implement plans to reduce the poverty-related education attainment gap, backed up by the £750 million Attainment Scotland Fund. Read more about our plan to reduce the attainment gap here.

We will also take forward a range of actions to ensure that by 2030 students from the 20 per cent most deprived backgrounds represent 20 per cent of university entrants.

We will further expand free early learning and childcare, taking further steps towards doubling provision by 2020, and new ways to support low-income families with upfront childcare costs will be piloted too.

Families of all newborn babies in Scotland will benefit from a baby box with essential items for a child’s first weeks. And, from Spring next year, all pregnant women will have access to free vitamins.

£500 million to help young companies to grow and expand

The Scottish Growth Scheme will provide up to £500 million over three years of investment guarantees, and some loans, and will be focussed on start-up companies who have the potential to grow and export more.

£100 million of infrastructure spending to tackle the economic impact of Brexit and support jobs

In addition to £5 million for the Golden Jubilee Hospital announced in August, projects include road maintenance, rail improvements, maintenance in our colleges and universities, and maintenance across the police and fire estates too.

Nicola Sturgeon also confirmed approval of European Structural Funds, meaning £650 million in investment will be delivered for communities and businesses across Scotland.

Nurturing and improving our NHS

Over this Parliament, we will increase resource spending in our NHS by £500 million more than inflation.

While NHS staff levels are at an historic high, we will train more nurses, doctors and paramedics.

To build capacity in the social sector to address the demands of an aging population we’re transferring £250 million each year to health and social care partnerships.

And, we’ve also ensured that from next month, all adult social care workers will be paid the real Living Wage.

New legislation to tackle child poverty

It is simply unacceptable that one in five children live in poverty in Scotland. That’s why a new Child Poverty Bill will set out our clear ambition to eradicate child poverty. The Bill will re-introduce statutory income targets abolished by the Tory UK government.

A Social Security Bill establishing a Scottish social security system founded on dignity and respect

We will deliver on our manifesto commitment to introduce a Social Security Bill in the first year of the new Parliament. The Bill will deliver on our commitments to use new powers to increase Carer’s Allowance to the level of Jobseeker’s Allowance, introduce a Jobs Grant and an expanded maternity grant. And, we will abolish the Bedroom Tax at the first available opportunity too.

Empowering our island communities

An Islands Bill will ensure that the needs and and aspirations of our island communities are at the very centre of our agenda. We’ve already announced the establishment of a new Islands Strategic Group and the development of a National Islands Plan.

Exploring all options to protect our place in Europe

In the first instance, we will seek to positively influence the UK Government’s negotiating position, to ensure that options for Scotland to maintain our relationship with Europe are explored.

However, if independence appears to be the best – or only – way to protect our interests in Europe, it is essential that such an option is available. That’s why we will consult on – and have ready for introduction if necessary – a Referendum Bill.

ARTICLE SOURCE: http://www.snp.org/scottish_programme_for_government

A prosperous Scotland with equal opportunities for everyone, no matter their background

(By Nicola Sturgeon)

Today we return to the Scottish Parliament for the beginning of a new term. It has not exactly been the quiet recess many will have hoped for after a busy election period, with the repercussions of a vote to leave the EU, a new and increasingly right wing UK Tory government and the continued squabbling of the Labour party to contend with.

And it is set to be a busy session with a number of key debates, including one on refugees, taking place in parliament this week.

It is now one year since the Scottish Government and our partners held a summit on the refugee crisis. We led calls for the UK to play a greater role in the EU-wide effort to address the biggest refugee crisis since the Second World War. One year later and Scotland has shown itself to be the outward-looking and open society we all know it to be, having welcomed 1000 refugees – around one third of the UK total.

A significant number of those refugees have made their homes in Glasgow. Our city has a track record of welcoming people from across the world and I want to thank all of those in the Scottish Refugee Council, volunteer organisations and the people behind welcome projects like Refuweegee, local council staff and all those in our local communities who have supported our new Glasgwegians.

This is still a tiny proportion of those in need, but it makes me extremely proud to know we are opening up our communities and helping people to build new lives in a safe and stable environment.

Today is also the day the Scottish Government publishes our Programme for Government – a plan which sets out our programme of activity for the next year and beyond.

I have always been clear about my vision for Scotland and in turn the priorities for the Government I lead. I want to see a fair, equal and prosperous Scotland with equal opportunities for everyone, no matter their background. Our Programme for Government is our plan for achieving that.

Over the summer we have been busy building on our progress and delivering on promises made during the election campaign.

Within the first few months of this SNP administration taking office we have already taken action in key priority areas including improving school attainment. We held a major education summit and published a plan setting out how we intend to empower teachers and individual schools to help deliver a world-class education system in Scotland. Last week John Swinney and I met with our new International Council of Education Advisers, to ensure we learn from experts around the world.

We are also building on our commitment to further improve the NHS, with plans for new elective treatment centres, 1000 additional paramedics and increased training places for GPs. Our commitment to health equality was demonstrated by the announcement of an expansion of IVF treatment, free vitamins in pregnancy, as well as plans for a baby box for all newborns, helping to ensuring that children get the very best start in life.

We have also launched a consultation on building a new Scottish social security system, ensuring that key stakeholders can input into the design of a system, based on dignity and respect, tailored to the needs of the Scottish people.

Achieving all of this requires a strong and stable economy, which is why investing in our economy and supporting jobs is a key priority. The EU referendum has created deep and widespread uncertainty, with the impact on jobs and investment already being felt. In stark contrast to the distinct lack of action from the UK Government, the Scottish Government is accelerating £100 million of infrastructure investment to boost confidence, stimulate economic activity and support business. I will confirm more support for the economy this week.

Alongside this work we have been engaging with EU Member States, EU institutions, the UK Government and key stakeholders to ensure Scotland’s voice is heard loud and clear in the wake of the EU referendum result.

These are just some of the initiatives we have taken forward in the past few months and the Programme for Government that I am publishing today will outline our priorities and action for the next year in more detail. It is not just a plan for Government, but a plan for us all to help make Scotland the very best country to live, work and grow up in. The Government I lead will work day in day out towards achieving these ambitions.

ARTICLE SOURCE: http://www.snp.org/nicola_sturgeon_prosperous_scotland_with_equal_opportunities