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

GDP grew by 0.2% in the third quarter of 2017. (Scot Gov News Website)

Scotland’s economy has remained resilient going into the second half of 2017 despite a challenging economic environment and continued Brexit uncertainty, the Economy Secretary has said.

According to the latest GDP statistics published by the Scottish Government today, the Scottish economy grew by 0.2% in the third quarter of 2017, and has increased by a total of 0.8% since the start of the year.

In the latest quarter, Services grew by 0.2% and Production grew by 1.2% after a return to growth for both manufacturing, mining and quarrying.

Economy Secretary Keith Brown said:

“Despite the impact that continued Brexit uncertainty is having on our economy, today’s figures demonstrate the resilience of the Scottish Economy with the third consecutive quarter of positive growth.

“Although more modest than we would like, it is encouraging to see the economy grow by 0.2% overall. Within this, it’s particularly heartening to see Services continue to expand, and Production up by 1.2%, with a return to growth for manufacturing. While these figures show a fall in construction output, this is as a result of activity returning to more normal levels following our increased investment in large transport infrastructure developments over recent years, including the Forth Replacement Crossing, M8 missing link and the Borders Railway.

“Our determination to seize opportunity and grow our economy is demonstrated by the £270 million increase on economic spending we announced in the 2018/19 Draft Budget. However it cannot be stressed enough that the single biggest threat to our economy as a whole remains the lack of clarity from the UK Government over Brexit. This week the Scottish Government published analysis which showed that failure to remain in the Single Market or secure a free trade agreement would see Scotland’s GDP around £12.7 billion lower by 2030 than it would be under continued EU membership.

“I would once again call on the UK Government to give people and businesses greater certainty over the Brexit process in order to further stimulate growth in Scotland’s business communities and allow us to continue to attract and retain talent within our workforce.”

Article Source: news.gov.scot/news/scotlands-economy-continues-to-grow-1

“Continued membership would maintain labour force” – Russell

Staying within the Single Market is vital for securing Scotland’s future workforce, Minister for UK Negotiations on Scotland’s Place in Europe Michael Russell said today.

(Article via www.gov.scot)

Mr Russell visited Stoddart’s beef processing company in Broxburn, West Lothian and heard from the Managing Director about concerns over the future ability to access EU Nationals to work for the company. They also discussed concerns around continued tariff free access to the EU market for beef products, especially the Scotch Beef PGI brand.

Mr Russell said:

“A hard Brexit and the end of freedom of movement will create the very real risk that the number of people working in Scotland will fall.

“That will mean fewer tax-payers to support vital public services and many sectors of the economy will struggle to attract the workers they need.

“It is essential we remain a member of the Single Market and Customs Union. Many companies benefit from our fellow EU nationals’ work as well as having access to the world’s most lucrative market.

“The Scottish Government continue to push for continued membership, not just as part of a transition deal but as the final destination, so securing the future of our workforce and protecting access to valuable markets.”

Managing Director of Stoddart’s Grant Moir said:

“Scotland has to compete with the rest of Europe in its bid to attract people into the workplace. Following the initial Brexit announcement this has become an increasingly challenging task for many Scottish Food and Drink businesses.

“At Stoddart’s we depend on a large number of EU Nationals to make up our workforce without whom we would be unable to run our business at its current level. One third of our processing staff are non-UK EU nationals highly skilled in meat processing.

“Any restriction of freedom movement as a result of the Brexit negotiations will in my opinion be hugely detrimental to both our business and the wider Scottish Economy.

“Recruitment and retention of our EU National workers will remain our single biggest business challenge for the immediate future”

Chief Executive of Quality Meat Scotland, Alan Clarke, said:

“Having access to a pool of skilled labour is essential to ensure that the Scottish red meat sector can have sustainable growth. Non UK nationals are of fundamental importance throughout the red meat supply chain, especially in the processing sector, for example, in respect of statutory food safety inspection and monitoring carried out in Scottish processors, Food Standards Scotland report that around 98% of their official veterinarians are from outside the UK.”

Article Source: https://news.gov.scot/news/keeping-scotland-in-the-single-market

A 28% funding increase will help deliver at least 50,000 affordable homes over this Parliament, as announced in the Draft Budget by Finance Secretary Derek Mackay

(article via www.gov.scot)

In 2018/19, more than £756 million will be made available through the Affordable Housing Supply Programme – 28% higher than the previous year. The programme is expected to support up to 14,000 jobs in the construction and related sectors over the next four years.

The Draft Budget commitment follows statistics showing some 71,000 affordable homes have been delivered since 2007. This includes almost 49,000 homes for social rent, 5,000 homes for affordable rent, and more than 17,000 homes for affordable home ownership.

Communities Secretary Angela Constance said:

“Ensuring everyone has access to a safe, warm and affordable place to call home lies at the heart of our ambition for a fairer Scotland – this budget will deliver on that.

“Core to that is our commitment to deliver at least 50,000 affordable homes over this Parliament. While that is challenging, we have shown before that we can deliver.

“Overall, this funding delivers on our More Homes Scotland approach – increasing supply across all tenures, supporting aspiring home owners, and boosting the economy. We have reintroduced council house building, supported first-time buyers, invested in shared equity, and introduced innovations like the Rental Income Guarantee Scheme and bringing empty homes into ownership.

“This builds on our commitment to work with councils and housing associations to ensure they have the financial certainty to increase developments. We will continue working closely with them and others as we take action to deliver good quality, secure, affordable housing.

Article Source: https://news.gov.scot/news/building-a-fairer-scotland

Prioritising rural Scotland

(article via www.gov.scot)

The first phase of the £600 million ‘Reaching 100%’ broadband programme will focus on delivering superfast broadband access to Scotland’s rural and island communities, to provide a truly national fibre network.

The procurement will be made up of three regional Lots (North, Central and South), with each containing a mix of the commercially attractive rural areas and harder-to-reach communities.

This model has been designed to ensure the best possible chance of maximising competition whilst driving value and innovation.

Connectivity Secretary Fergus Ewing said:

“We have taken the decision not to focus on urban city centre premises in this first phase, but to target investment where it is needed most – in rural and remote Scotland. We are working with the private sector to encourage their own investment in unconnected urban areas, rather than rely on public funds.

“Reaching 100% will not be easy to achieve, however achieve it we must. Fast and reliable digital connectivity is a fundamental expectation of all communities, regardless of location.

“To deliver our ambition, this government is investing £600 million through the Reaching 100% programme – more than any government in the UK has ever invested in broadband.

“I am confident that this procurement approach, funded by our record investment, will put delivery of our unique 100% commitment within touching distance. We are aiming to provide a robust fibre backbone to underpin delivery of superfast broadband for all by the end of 2021.”

Article Source: https://news.gov.scot/news/superfast-broadband-rollout-to-benefit-rural-areas

inance Secretary highlights budget support for frontline NHS services

(Article via www.gov.scot)

Investment and reform of the health service will be prioritised, Finance Secretary Derek Mackay confirmed in his Draft Scottish Budget.

Mr Mackay visited the Queen Elizabeth University Hospital in Glasgow to meet NHS Greater Glasgow & Clyde staff and students in the teaching and learning centre, where he took part in a teaching session on cardio-pulmonary resuscitation (CPR).

The health portfolio resource budget will increase by more than £400 million, taking it to a record high of over £13.1 billion.

Mr Mackay said:

“We want to continue to provide the best possible care to help people lead healthier lives, which is why we are prioritising investment in frontline services, with frontline health boards to receive additional funding of 3.7%.

“This will ensure continued investment in facilities and services, funding a new GP contract and increased investment in mental health, while also supporting key reforms such as major trauma centres.

“Of course, none of this happens without a dedicated workforce. Lifting the pay cap will benefit thousands of nurses and healthcare staff, guaranteeing a minimum increase of 3% for staff who earn up to £30,000 – rewarding and investing in hard-working public sector staff.

“The resource budget is now £360 million higher than if we had only delivered real terms increases since the last Scottish Parliament election. Our approach of investment and reform will deliver better care and health for the people of Scotland, helping meet the challenges of an ageing population and rising demand for health services.”

Article Source: https://news.gov.scot/news/record-investment-in-health