Scottish Political Insider & Scottish Budget special – Friday 1 February 2019

Scottish Political Insider & Scottish Budget special – Friday 1 February 2019

Scottish Political Insider & Scottish Budget special – Friday 1 February 2019

As we enter a new month, the Brexit narrative continues to stall. In Westminster on Tuesday, a majority voted in favour of a non-binding amendment that rejected a no-deal Brexit. They also voted in favour of an amendment that called for the backstop to be replaced with “alternative arrangements to avoid a hard border” in Ireland, but otherwise supported Theresa May’s deal.

However, this good news for the PM was swiftly followed by bad news from Brussels as senior EU politicians said they will not reopen the legal text of the withdrawal agreement that they negotiated with the UK. The saga continues with the outcome still unpredictable.

Scotland’s Brexit Minister Michael Russell also stated this week that 36 “critical” legislative measures will be pushed through the Scottish Parliament ahead of 29 March in a bid to protect the economy from a no-deal Brexit. The Scottish Parliament may need to schedule late sittings to deal with the extra work and Committee and Chamber business may also take place concurrently. 

The Scottish Budget was debated in Holyrood on Thursday. An overview of this is shared below.

Glasgow Airport bosses have called for urgent action to improve transport links with the city centre. Managing director Mark Johnston, is due to meet Scotland’s transport secretary and local council leaders to discuss this.  Mr Johnston told the BBC Scotland: “We’re the only airport in Europe that has road as its only means of access. The recent studies have shown that the congestion is only increasing on the M8. We have the funding available through the City Deal, so I think there’s a genuine acceptance that something needs to happen.”

It might be that you’ve not heard of industrial biotechnology (IB) before but the chances are it has benefitted your life. Whether it is turning food waste into green energy or improving the way we manufacture food, drink, vaccines and antibiotics, IB offers advantages for us all.

In client news, Industrial Biotechnology Innovation Centre (IBioIC) held its annual conference in Glasgow this week and on Thursday welcomed Trade and Innovation Minister Ivan McKee MSP to deliver a plenary session. The Minister highlighted the role of IBioIC to help stimulate the growth and success of IB technology in Scotland to £900 million by 2025. He also encouraged everyone working in the sector to ‘maintain a dialogue’ with all Scottish government departments.

And finally… The Scottish Parliament’s Business Bureau has unanimously agreed to establish a committee to consider the Scottish Government’s procedures and handling of the Alex Salmond case. It will be a nine-member committee with – controversially – an SNP Convener and a Scottish Conservative Deputy Convener. 

If you or your organisation would benefit from our political insight and specialist knowledge and contacts at all political levels, please get in touch with Julie McLauchlan on 07734 932578 or julie.mclauchlan@perceptivecommunicators.co.uk    

Scottish Budget January 2019

Finance Secretary Derek Mackay MSP has announced a deal to ensure support for the Budget at all parliamentary stages has been reached with the Greens. The deal was reached after the Cabinet Secretary agreed to a series of reforms to local government spending and finance, including an agreement to consult and implement legislation to allow local authorities to introduce a transient visitor levy; devolving Non-Domestic Rates empty property relief to local authorities in time for the next revaluation; and plans to bring forward a three year funding settlement for local government from the 2020-21 Budget onwards. 

It was also announced that the Government will convene cross-party talks on a replacement for council tax with a view to publishing legislation by the end of the current parliament. A letter confirming the Green’s support has also been published.

New measures for local authorities

In his speech to the Parliament, the Cabinet Secretary gave a commitment to increasing the power and funding of local authorities. He said the new measures would be “the most significant empowerment of local authorities since devolution”.

·       Council Funding: The Cabinet Secretary announced £90m of increased funding for local government. This would be delivered through flexibilities in the Budget and additional funding from “unexpected” Barnett consequentials due to UK NHS spending. However, he said this would not reduce NHS funding and the health budget would be £4m higher. Councils would also be given more flexibility on setting council tax rates, which could rise by up to 4.79%. Additionally, he said the costs of the teacher pay offer would be transferred to ease local government finances.

·       Local Tax Reform: Derek Mackay said “the present council tax system must end”. He committed to cross-party talks on abolishing the council tax. However, he indicated this would be for the next Parliament to implement

·       Tourist Tax: Members were told there would be a consultation and legislation which would allow local authorities to implement a tourist tax.

·       Workplace Parking & Empty Properties: The Cabinet Secretary said councils would be given powers to apply a workplace car parking levy, following Green amendments to the Transport (Scotland) Bill. The NHS estate would be exempt from these measures.

·       Empty Properties: The Scottish Government will commit to devolving the Non-Domestic Rates Empty Property Relief to local authorities in time for the next revaluation.

·       Financial Flexibility: The Cabinet Secretary said the Scottish Government would work with COSLA to move towards three-year budgeting.

·       Environmental Measures: Derek Mackay said there would be a move towards a 10p minimum levy for single use carrier bags. He also said there would be a consultation on tackling the use of disposable drinks cups. Members were told that Scottish Ministers would consider whether revenue from these sources should be transferred to local authorities.

·       Other Announcements: The Cabinet Secretary also reiterated the Scottish Government’s previous commitments on the Budget, including in relation to income tax rates, education funding, social security, business rates, affordable housing, childcare, the Scottish National Investment Bank, support for town centres, police and fire service funding, and mental health support.

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