Scottish Political Insider – Friday 18 January 2019
Brexit has been dominating the political agenda this week – and how could it not? In Scotland, it’s not surprising to know how our 59 MPs voted as the Prime Minister’s Brexit deal was emphatically rejected by 432 votes to 202. Only 10 Scottish MPs voted for the deal, and all of these for votes were from Scottish Conservative MPs. Every other Scottish MP voted against.
On Wednesday, First Minister Nicola Sturgeon travelled to London for Brexit talks as Theresa May survived a confidence vote. Scotland’s First Minister wants a new referendum on Brexit so the UK can stay in the EU. But unsurprisingly she also said it was “increasingly clear” that “Scotland’s interests will only be protected with independence”.
In other Scottish political news this week, the Finance and Constitution Committee recommended that the Land and Buildings Transaction Tax (Scotland) Amendment Order 2018 be approved. This will impact homebuyers who are purchasing a second home such as buy to let or holiday homes. From the 25 January 2019, these purchases will be subject to additional dwelling supplement tax at the increased rate of 4%, rather than the rate of 3% now.
On Wednesday, the Finance and Constitution Committee took evidence from Finance Secretary Derek Mackay on his budget. Mr Mackay insisted that the Scottish Government has reinstated the “short changing” of £55m to the health budget. There will be a package of funding transferred to local government to help implement Frank’s Law and the cabinet secretary also noted during the Committee that the local government’s request for more cash for social care will be met.
Businesses will be able to access more than £100 million to help them expand and unlock investment through the next phase of the Scottish Growth Scheme, after an announcement by the Scottish Government was made earlier in the week. SMEs across Scotland will have the chance to apply for financial support, which includes microfinance loans of up to £25,000, debt or loan finance of up to £100,000, and equity investment in deals of up to £2 million. As part of this phase of the initiative, Scottish Enterprise has also introduced a loans scheme in the range from £250,000 to £2 million, or up to £5 million in exceptional circumstances, for growth-focused SMEs with a viable business plan and a clear ability to repay the debt.
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