Covid-19 Recovery and Parliamentary Business
Good afternoon. The first item of business this afternoon is portfolio question time. The first portfolio is Covid-19 recovery and parliamentary business. Any members who—
Members: We cannot hear you.
I will try again. Is that any better?
Members: No.
That is an inauspicious start to the afternoon.
There we go—you can hear me now. Third time lucky.
For those who are not aware, the first item of business this afternoon is portfolio question time. The first portfolio is Covid-19 recovery and parliamentary business. As ever, any member who wishes to ask a supplementary question should press their request-to-speak button or type “RTS” in the chat function if they are joining us remotely.
We are tight for time across this afternoon, so—as ever—I would appreciate succinct questions and answers whenever possible.
Covid Recovery Strategy (Evaluation of Progress)
To ask the Scottish Government how it will evaluate the progress made in achieving the intended outcomes of its Covid recovery strategy. (S6O-01476)
The Covid recovery strategy sets out three high-level outcomes, which focus on reducing inequalities and supporting people who have been most affected during the pandemic. Those outcomes, which are shared with local government, are also relevant to the Scottish Government’s on-going response to the cost of living crisis. The Scottish Government is working in close partnership with local government, Public Health Scotland and the Improvement Service to promote the shared outcomes and to consider the experiences of different people and places across Scotland. Together, we are using a range of data sources, including national performance framework indicators, to better understand and evaluate progress towards our shared outcomes.
We all know that Covid continues to have an impact on poverty, diagnostic waiting times and pupil attainment, for example. How is that impact being measured? The cabinet secretary alluded to the national performance framework, but I know that colleagues in the Parliament have struggled to secure questions relating to such measures. Does the cabinet secretary believe that tracking and reporting on such measures is part of the Covid recovery brief?
I would certainly judge that to be the case, yes. The issues that Mr Johnson raises are all relevant to the post-Covid situation. The recovery measures that we are taking are not just Covid related; for example, they also address the issue of inequality, which Mr Johnson has raised. He has heard me say before that Covid exacerbated inequality, it did not create it.
The framework that we have in place through the national performance framework effectively provides a forum in which to address the issues that Mr Johnson properly raises. For the record, I would be very happy to answer any questions on those matters, should they be selected.
That is helpful.
Covid Recovery Strategy (Rural and Island Tourism Businesses)
To ask the Scottish Government how its Covid recovery strategy is supporting rural and island tourism businesses. (S6O-01477)
The Government is committed to supporting the recovery of the tourism sector in our rural and island communities. Since the pandemic started, we have delivered packages totalling £258.5 million to support Scottish tourism and hospitality businesses. We established the rural tourism infrastructure fund to support critical projects in rural and island areas. Additionally, we have helped businesses to recover through the tourism recovery programme, which consists of 10 projects that are aimed at assisting and accelerating recovery and providing the foundations for the sustainable recovery of the sector. The new tourism and hospitality industry leadership group that we have established will drive sustainable long-term recovery.
I have been contacted by a number of hospitality businesses in my constituency, which are concerned that they may not survive this winter due to the impact of the cost of living crisis, with produce costs and energy bills both having skyrocketed. Given the devastating impact of that and of earlier events on the hospitality sector, can the cabinet secretary outline what representations the Scottish Government is making to the United Kingdom Government on the lack of adequate support for energy costs for small and medium-sized enterprises that are not on the gas grid?
Those issues are being put to the United Kingdom Government regularly by the Scottish Government, and the First Minister indicated those points in her letter to the new Prime Minister on 27 October.
The point that Dr Allan raises about the particular challenges of energy costs for non-grid users is a particular problem that is the subject of active dialogue with the United Kingdom Government, and I assure him that we recognise the importance of that being taken forward.
I would also make the point that the wider inflationary pressures beyond energy costs, in relation to food and supplies, to which Dr Allan has referred, are significant issues, and they have been exacerbated by the decisions that have been taken, which have fuelled inflation. The lack of action on energy costs over the summer has contributed significantly to that experience, too.
Covid Recovery (Carrick, Cumnock and Doon Valley)
To ask the Scottish Government whether it will provide an update on how it is working with colleagues in local government, as part of its Covid recovery strategy, to support Carrick, Cumnock and Doon Valley’s recovery from Covid-19. (S6O-01478)
The Scottish Government and the Convention of Scottish Local Authorities have agreed shared priorities for recovery, focusing on those most affected by the pandemic. The Covid recovery strategy brings together more than 70 actions that will support people across Scotland by increasing the financial security of low-income households, by enhancing the wellbeing of children and young people and by creating good, green jobs and fair work. The strategy also focuses on renewing public services to ensure that they meet the specific needs of people and communities.
East Ayrshire Council and South Ayrshire Council, which cover Elena Whitham’s Carrick, Cumnock and Doon Valley parliamentary constituency, have been allocated an additional £38.6 million and £34.4 million respectively, through the local government settlement, to respond to the Covid-19 pandemic. Those payments are over and above their regular grant payments, which, in 2022-23, have each increased by more than 10 per cent.
What impact will the delay to the United Kingdom Government’s fiscal statement have on the Scottish Government’s ability to plan ahead in terms of the support that it can provide to local government, particularly in the context of the Tory Government’s trashing of the UK economy—a failure for which it is now making people pay the price through its new wave of impending austerity cuts, which will slash public services and cut incomes? Does the cabinet secretary agree that independence is the only way to keep Scotland safe from the damaging Tory cuts and long-term economic decline?
I fundamentally agree with Elena Whitham’s analysis. I make the point that the decisions that were taken in the mini-budget over the summer—about which I will have more to say in the statement that I will make to Parliament this afternoon—have significantly exacerbated the scale of the financial challenge that we, households and businesses are wrestling with, which will be felt acutely in the constituencies that Elena Whitham represents.
The timing of the fiscal statement, which has been delayed from 31 October to 17 November, compresses the available time that the Scottish Government will have in which to consider that information and, as a consequence, formulate the financial settlement for local government that arises. However, I assure Elena Whitham that we will take forward the dialogue with local government that she would expect of us in addressing those issues.
Covid Recovery Strategy (Stakeholder Engagement)
To ask the Scottish Government whether it will provide an update on its engagement with stakeholders regarding its Covid recovery strategy. (S6O-01479)
The Covid recovery strategy was informed by extensive stakeholder engagement, and the Scottish Government continues to work closely with a wide range of partners to ensure a successful recovery. We regularly meet stakeholders, including local government, community planning partners, the third sector and business organisations, to resolve barriers, identify solutions and maintain progress.
Our stakeholder engagement informs the discussions and decisions of the Covid recovery programme board, which I co-chair alongside the president of the Convention of Scottish Local Authorities, and it allows us to work together towards a shared national vision for recovery, as well as to support local recovery that is informed by local priorities.
I am pleased that the cabinet secretary mentioned the third sector. We all appreciate the value that charities and volunteers provided during the Covid pandemic. That period completely revolutionised the perception of selfless giving and of helping our fellows in our communities.
That said, in its pre-budget submission, Volunteer Scotland raised substantial concerns about what are likely to be substantial cuts to third sector funding over the next couple of years, notwithstanding the issues that were mentioned by the cabinet secretary. How do we ensure that those much-needed and vital voluntary organisations survive and thrive in our communities, given the good work that they do and the pressure that they take off paid public services?
Mr Greene raises a substantial point, and it is one that we need to keep in mind as we work our way through what will be a really difficult budget process this year, which will be compressed into a tight timescale. I will not rehearse all the issues around that, as I will have enough to say about it later.
The point that Mr Greene raises is one that I am anxious, at all times, not to lose sight of, because I am convinced—indeed, I am a strong advocate of this within Government—that the third sector can undertake work that will deliver better outcomes, more than likely for less money, if we can properly support and design that assistance.
This morning, with Mr Gray, the minister who is looking after the Ukrainian refugee programme, I visited a third sector venture in Aberfeldy, in my constituency. The group is called Feldy-Roo—I will leave members to reflect on the name—and is made up of local volunteers who emerged from the Covid programme that delivered vital assistance to families during the Covid pandemic. Those volunteers have created a hub for welcoming and supporting Ukrainian refugees and are now supporting more than 70 individuals in the community. That is working fabulously well, but it is a third sector venture that is achieving huge amounts of work with very small amounts of money. Therefore, I am anxious that we take Mr Greene’s point forward substantively during the budget process.
The decision to close all bar four of Scottish Enterprise’s offices, including one in Clydebank, suggests that regional economic development is not a strategic priority for the Scottish Government. There are real and genuine concerns that there is a disjointed approach to business support and economic recovery. Can the cabinet secretary tell me how he will ensure that regional economic development and support for business are not lost as a result of those decisions?
I reassure Jackie Baillie that I do not consider that the test or measure by which we deliver effective business support is the arrangements for having offices around the country. There are many changes in the way in which services are now being delivered, with an increasing move towards digital delivery of services and the remote working with which we have all become familiar. If the decisions that have been taken are a means of enabling us to deliver a wider range of business support, we should be prepared to embrace reform.
I will have much more to say about it this afternoon, but the existing financial arrangements will put enormous strain on maintaining the current network of arrangements that we have in place.
Finally, I want to make it clear to Jackie Baillie that the national strategy for economic transformation recognises the absolute centrality of regional economic policy. I welcome the opportunity to put that on the record today and to reassure Jackie Baillie about that, because there is no point in the Government pursuing an economic strategy that works only for some parts of the country. It needs to work for all parts of the country, and that is the focus of the national strategy’s regional economic policy approach.
Covid Recovery Strategy (High Streets)
To ask the Scottish Government what support is available in the context of its Covid recovery strategy to help high streets to recover from the pandemic and ensure that there are no long-term scarring effects. (S6O-01480)
We are working with all of Scotland’s cities and towns to support their recovery and help to build thriving and sustainable towns and cities of the future.
We maintain a competitive non-domestic rates regime and are delivering the lowest non-domestic rates poundage in the UK for the fourth year in a row, and we are supporting a generous package of non-domestic rates reliefs that is worth £801 million.
That is in addition to the action that we are taking to support our town and city centres, and to help retailers and communities to recover, not least through our £80 million Covid economic recovery fund, the £6 million city centre recovery fund, the £325 million place-based investment programme, our retail strategy and the town centre action plan.
Last week, the Scottish Retail Consortium reported that the recovery in vacancy rates has stalled in Scotland, compared with what is happening in the rest of the United Kingdom. That is evident in my home city of Aberdeen, where the business improvement district company, Aberdeen Inspired, has organised an emergency summit next Wednesday in order to save Union Street. Will the cabinet secretary attend that summit, so that he can hear, at first hand, from the retail and hospitality industries about the issues that they face?
It is unlikely that I will be able to attend that event, but I am glad that it is happening and that the business community is drawing together partners to ensure that it can happen. If Mr Lumsden wishes to write to me after the event to let me know the issues that are raised and the points that are identified, I will happily engage on those questions.
In the case of the city of Aberdeen, it is important that individual communities join together the work of local authorities and business improvement districts. Just the other week, I had a discussion with Opportunity North East to identify further steps that we can take to advance much of the good collaboration that is going on on those measures. I will be very happy to address any questions that arise from the summit, if Mr Lumsden draws them to my attention.
In addition to the challenges that are posed by the pandemic and Brexit, businesses on Scottish high streets now face pressures that have been caused by the catastrophic economic policies of the Tory Government at Westminster. With nothing but uncertainty and austerity cuts on the horizon as a consequence, does the Deputy First Minister share my view that the people of Scotland should have the right to decide whether to continue to suffer in a less productive and highly unequal UK economy, or to seize the opportunities that independence gives us?
I would very much welcome the opportunity for people in Scotland to decide on the independence question and to exercise a choice about the approach to governance that they wish to see in Scotland. We face extremely difficult challenges ahead, which have been made worse by a combination of Brexit and the United Kingdom Government’s decision making, which has had catastrophic implications for businesses and families.
Mr Kidd’s point is a substantial one with which I agree. I would welcome the opportunity for people in Scotland to exercise that choice.
Question 6 has not been lodged.
Parliamentary Privilege
To ask the Scottish Government what discussions ministers have had with the United Kingdom Government regarding making MSPs prescribed persons under the Public Interest Disclosure Act 1998, and extending parliamentary privilege. (S6O-01482)
The Scottish Government has no formal role over MSPs or the Scottish Parliament, and the Scottish Parliamentary Corporate Body therefore led in making a direct request to United Kingdom Government officials on the issue.
The UK Government laid the statutory instrument that adds MSPs to the list of whistleblowing prescribed persons in Westminster on 17 October. When the change comes into force on 15 December, MSPs will have parity with MPs on the matter. The Scottish Parliament will be responsible for providing MSPs with guidance and training on the impact of the legislation.
I welcome the minister’s response in relation to PIDA, which is an act that I think is long overdue for reform.
Every one of us in the chamber will hear from our constituents, on a regular basis, stories of injustice, people being let down very badly by service providers, mistreatment and worse. The Scottish Parliament must be the place where such issues can be brought up, discussed and addressed, and members of this Parliament should be unafraid of censure or legal challenge. MPs are given legal protections when speaking in the House of Commons. Therefore, will the minister support a move to introduce the same privileges to members of the Scottish Parliament that are enjoyed by MPs in the House of Commons?
Although I think that Stephen Kerr makes a number of important points, the Scottish Parliament, rather than the Scottish Government, has now taken action that will, from the perspective of Stephen Kerr and other MSPs, at least improve the situation and give them parity with MPs. In respect of whistleblowing, that means that anyone who wishes to approach an MSP can do so with their own employment protected, as is the case in relation to MPs in Westminster.
With regard to any other improvements relating to the privileges or otherwise of MSPs that Stephen Kerr would like to see, he might wish to raise them with the Presiding Officer of the Scottish Parliament.
Covid-19 Booster Vaccination Programme
To ask the Scottish Government what role the autumn/winter Covid-19 booster vaccination programme will play in its Covid recovery strategy. (S6O-01483)
The winter vaccination programme will play a vital role in protecting people at the highest risk from severe illness and hospitalisation this winter. That will help to ease the potential additional pressures that Covid-19 and flu put on the national health service and social care services over the winter months.
Although uptake of the vaccines has exceeded our expectations, we are continually exploring ways to increase the vaccination rate. In line with our commitments in our Covid recovery strategy, we have embedded inclusivity as a key aspect of the vaccination programme from its outset, and we are working alongside health boards and other partners to encourage uptake, remove barriers and respond to evidence of low uptake in certain communities, including people from more deprived areas.
The winter vaccination programme began on 5 September, starting with front-line health and social care workers, and residents and staff in care homes for older adults. Appointments for those aged 65 and over began on 19 September. Those aged 50 to 64 with no additional risk factors have been able to book an appointment online since 24 October. Appointments for those aged five to 64 in a clinical risk group also began in the week commencing 24 October.
Does the cabinet secretary agree that it is vital that as many people as possible take up the offer of both Covid and flu vaccinations? That is one way that they can help to protect themselves, their family and the wider community, and take pressure off front-line health services.
Yes, I do. The Covid vaccination programme has been an unbridled success. It has given assurance to the population, and it has given protection to our vital public services, which would have been overwhelmed without it. It has also enabled many of us, but not all of us—some of our fellow citizens still face real challenges because of their own wider health factors—to return to something that is closer to normality in our lives. The programme has delivered welcome progress in that regard.
I take this opportunity to encourage everyone in the eligible groups to take up vaccination.
I echo everything that the Deputy First Minister has said about the importance of taking up the booster vaccination. I booked my booster for next week. Perhaps I will see him when I attend.
However, there seems to be anecdotal evidence that some individuals are reluctant to come forward for a booster. Perhaps that is because they think that the pandemic is over. Does the Scottish Government have any data as yet on take-up figures for the booster? If not, when are we likely to get that data? What more can the Government do to target groups, including certain ethnic minorities, that have historically been reluctant to come forward to get vaccinated?
I am glad to hear that Mr Fraser has booked his appointment; so have I. I was going to be rather impertinent and suggest that I would have thought that he would have been in an earlier group to me, age-wise. Clearly, it would be inappropriate for me to even infer that.
Take up has been very encouraging; it has exceeded our expectations to date. I have numbers in front of me, so I presume that I can use them. Among older adults in care homes, uptake is 85 per cent, and in the age 65 and over age group 74.2 per cent have been vaccinated already—and we are not through the programme yet.
We are very encouraged by the progress that has been made so far. However, having said that, I note Mr Fraser’s legitimate point. We must use every opportunity to encourage people to take up vaccination and not to be deterred by some of the stuff that swirls around. Vaccination offers essential protection not only for individuals but for our public services, because it is a way of reducing the demand that might otherwise present itself.
I assure Mr Fraser and Parliament that the Government is tailoring its messages to ensure that we reach—as I mentioned in my earlier answer to Mr McMillan—the groups in which, from our evidence and experience, take up can be low. We are taking steps to improve that through our communications.
I can confirm that I, too, have booked my appointment. I assume that that is because NHS Orkney is working through the age groups more quickly than other health boards are. [Laughter.]
On a point of order, Presiding Officer. When asking my question, I failed to point members to my entry in the register of members’ interests as a director of WhistleblowersUK. It is important that I put that on the record.
Thank you, Mr Kerr. That is, indeed, on the record.
Finance and Economy
The next portfolio is finance and the economy. I encourage members who wish to ask a question to press their request-to-speak button or, if they are joining us remotely, to place “RTS” in the chat function during the relevant question.
Cost of Living (United Kingdom Government Support)
To ask the Scottish Government what its latest engagement has been with the United Kingdom Government regarding the funding available to support people with the increased cost of living. (S6O-01484)
I had an initial meeting with the new Chief Secretary to the Treasury last week, and I have sent a number of letters to the UK Government to request urgent action to address the cost of living crisis, given that the powers to properly support people and businesses are currently reserved. The First Minister also wrote to the Prime Minister last week to call for urgent action that meets the scale of the challenge, including additional funding for devolved Governments to support our people, provide fair public sector pay uplifts, and protect our public services.
Households on low incomes desperately need stability and certainty as they try to afford the essentials, pay their rent, and keep food on the table. Will the Scottish Government call on the UK Government to extend its cost of living support with new support packages that target the households that are most impacted by the increased cost of living, as we have done in Scotland, and demand the uprating of benefits in line with inflation?
We have made those calls to the United Kingdom Government. We recognised the importance of increasing social security benefits in line with inflation in April and, if we were able to see the bringing in of a permanent £25 uplift to universal credit, for example, that would make a huge difference to the circumstances of low-income households.
The Government in Scotland is, of course, taking steps in the public sector pay deals that we are putting in place to ensure that those with the lowest incomes receive the highest percentage increases. All those measures are designed to support people practically.
I assure Stephanie Callaghan that the Scottish Government is using every opportunity to engage with our United Kingdom Government counterparts to advance those important issues.
Disabled People (Employment Rate)
To ask the Scottish Government what progress has been made regarding increasing the employment rate for disabled people. (S6O-01485)
The latest figures from the Office for National Statistics annual population survey show that the employment rate for disabled people in 2021 was estimated to be 49.6 per cent. That is an increase from 42.8 per cent in 2016, which was our baseline year for halving the disability employment gap. That indicates that we have made significant progress towards meeting our first interim target to increase the employment rate of disabled people to 50 per cent by 2023.
The progress that the minister has outlined is very welcome. Can he confirm that the Scottish Government is on track to meeting its overall targets in increasing the employment rate for disabled people?
In the Scottish Government’s 2018 publication “A Fairer Scotland for Disabled People: Employment Action Plan”, we identified the interim milestone that the employment rate for disabled people will increase to 50 per cent by 2023, as I have said, and that it will rise to 60 per cent by 2030. I confirm that it is our understanding that we are currently on track to meet those targets. The Scottish Government also made an overarching commitment to ensuring that the disability employment gap is reduced by at least half of its 2016 level by 2038. We are making good progress in Scotland, but there is, of course, still a lot to do.
Jeremy Balfour has a supplementary question.
Can the minister shed a little light on why Scotland lags behind England in terms of disability employment? The latest figures that I have, which are from 2021, show that the average English employment gap is 27 per cent and that the gap is as low as 22.4 per cent in the south-east of England, whereas the gap in Scotland is 32.8 per cent. Why is there that difference?
I would be happy to look at the regional figures for England and to try to delve a bit further into why there might be any differential. It is encouraging that we are making progress in Scotland on closing the disability employment gap, and I hope that the measures that we are taking are making a difference. Of course, many stakeholders and organisations are supporting that, as well. There are a number of different indicators. Some show that Scotland is ahead of the rest of the United Kingdom. Jeremy Balfour has highlighted some regional disparity perhaps. I would be happy to look into that further and perhaps to drop Jeremy Balfour a note.
Employability (Budget Reduction)
To ask the Scottish Government whether it will provide details of the £53 million reduction in the employability budget announced by the Deputy First Minister in September 2022. (S6O-01486)
The £53 million was to support additional employability activity in 2022-23. Of course, the decision not to issue that funding was not taken lightly but, at a time of acute labour shortages, historically low unemployment and soaring inflation, the Scottish ministers have been clear on the need to prioritise money in people’s pockets now over additional spending on employability, which is unlikely to result in immediate benefits for individuals. However, we have maintained our existing investment in employability this year, with more than £59 million being made available through the no one left behind approach, and £23.5 million available through fair start Scotland in 2022-23.
Any cuts to the employability budget could impact on essential apprenticeship places right across Scotland. Presently, there are almost 1,000 apprenticeships in Dumfries and Galloway with employers such as Jas P Wilson and DuPont Teijin Films. Those apprentice places provide an excellent pathway for young people to develop their skills and give them a great start in their career, but they also provide vital skills that are needed in my constituency. Will the minister give a commitment to protecting apprenticeships so that young people in my constituency and across Scotland will continue to have such opportunities?
I am happy to give Finlay Carson the assurance that he asks for. However, I point out that the employability budget is a different matter. It comes under our limited powers in relation to employment, through which we can support people who are very far from the labour market to come into it. That is what we are speaking about when we talk about employability budgets.
I make the obvious point to Finlay Carson that, if he is concerned about the budgets that are available to the Scottish Government and the Parliament, he should be making representations to the United Kingdom Government, and he might wish to offer his support to the Deputy First Minister when he delivers his budget statement in a short while.
The notable thing about the employability cut is that the employability line was the only line within the skills and training budget that was actually going up. That underlines the need to focus on the area. What is being done to improve the accessibility to disabled people of apprenticeships and other skills measures?
I reiterate that we retain our employability budget and that what was cut was the planned increase. Clearly, we took that decision against a very difficult backdrop. I dealt with Daniel Johnson’s point about apprenticeships in responding to Finlay Carson’s question, and I dealt with the point about disabled people in answering the previous question. This specific question is about the employability budget. We still have that budget, but the substantial increase that we planned was cancelled due to the pressures on Scotland’s overall budget.
Prestwick Airport (South Ayrshire Economy)
To ask the Scottish Government whether it can provide an update on Prestwick airport’s contribution to the South Ayrshire economy. (S6O-01487)
Prestwick airport continues to grow steadily, making a positive contribution to the local and regional economy and supporting 300 direct jobs as well as many more in the local economy. The airport is working with the councils in the area to play its part in attracting inward investment through projects that are connected with aviation. The management and board have a clear strategy to deliver growth, and the airport continues to strengthen its position as a niche airport with a reputation for being innovative and flexible in meeting customers’ needs.
Prestwick was one of the few airports in the world to make a profit during the pandemic, and it has played a major part in cargo distribution across the United Kingdom. With the Brexit chaos and the backlog of cargo at Heathrow, it was actually quicker to send cargo to Prestwick and then down to London than it was to get it out of Heathrow. Prestwick airport is also an integral part of the aerospace industry, which currently supports more than 4,000 jobs locally. Does the minister agree that the continual Conservative criticism in the chamber of Prestwick airport is bizarre?
I agree with Siobhian Brown that it is important for all of us to consider the language that we use in the chamber and to make sure that, when we make critical points, we do not do so in a way that talks down or undermines confidence in any sector of our economy.
Prestwick has clearly had significant challenges, but the recent performance of the business is promising and welcome. Significant progress has been made in winning a bigger share of the fixed-based operations market, property around the campus has very high occupancy rates and, as well as continuing passenger operations, the airport is focused on growing its dedicated cargo operations, for which it has a strong reputation. As the home to approximately half of Scotland’s aerospace sector, Prestwick is playing a key role in the Ayrshire growth deal and helping to unlock significant inward investment, thereby creating high-value jobs and potential supply chain opportunities in South Ayrshire. All of us, including all the Opposition parties, can surely be proud of that progress.
I apologise for not advising members earlier that there is a grouping for this portfolio. Question 5 is grouped with question 8, so I will take any supplementary questions after question 8.
Economy (Engagement with United Kingdom Government)
To ask the Scottish Government what recent engagement it has had with the United Kingdom Government on matters impacting the Scottish economy. (S6O-01488)
Over the past few weeks, I have had discussions with a number of Chief Secretaries to the Treasury—I had a discussion with the new one just last week. I also had extensive discussions with the previous Secretary of State for Levelling Up, Housing and Communities on investment zones. I have made clear the impact of the current economic crisis on people across Scotland and our economy, including the increased pressures on the Scottish budget and the vital public services that we support.
Aberdeen and the rest of the north-east have made significant contributions to UK Government coffers through the energy sector. In return, the north-east of Scotland has been gifted Brexit—with Aberdeen being the worst-hit UK city, at a cost of £9,000 per person—turmoil in the housing market, and sky-high energy bills, which have damaged families and forced small businesses to close. Does the Deputy First Minister agree that it is time for the UK Government to stop treating the north-east as a cash cow and that Rishi Sunak must get a grip on the economy, which his party has ruined?
Audrey Nicoll raises serious economic issues that are affecting the north-east of Scotland. The principal issue that she raised was Brexit and its implications on the supply of labour and on companies’ ability to trade effectively with markets with which they were very familiar up until the implementation of the Brexit deal. That difficulty has been added to by turmoil in the housing market, which has been severely damaged by the effects of the mini-budget, and the wider consequences that Audrey Nicoll highlighted. She has raised significant issues that are having a negative effect on the north-east of Scotland’s economy.
The Scottish Government is keen to support the north-east through the matching funding that we have provided for the Aberdeen city region deal and the £75 million that we have provided for the energy transition fund. We have also committed to the £500 million just transition fund.
We recognise the significant challenges that the north-east of Scotland’s economy faces. We must make a transition to net zero, and that must be done in a just fashion, so the Scottish Government is determined to work with the north-east and interested local authorities and parties to advance that agenda. However, the prevailing economic conditions are very challenging because of Brexit and the prevailing economic mood that has arisen from UK Government decisions.
Chancellor of the Exchequer (Meetings)
To ask the Scottish Government when it last met with the Chancellor of the Exchequer. (S6O-01491)
I have not had a meeting with the current chancellor, but I have corresponded with chancellors on a number of occasions, as has Kate Forbes, the substantive finance secretary. I point out that a number of letters from Kate Forbes, the Welsh finance minister and the Northern Irish finance minister were not replied to by United Kingdom chancellors for a significant number of months. Given that we get lectured in this Parliament about engagement with the UK Government, I point out that some of our correspondence quite simply does not get answered. I have had an apology for that fact and, I am glad to say, a reply to my most recent letter from the Chief Secretary to the Treasury. It is difficult for us to advance dialogue when there is nobody at the other end to engage on such questions.
It is very disappointing to note that the latest UK chancellor, by not finding the time to speak with the Deputy First Minister and acting finance cabinet secretary directly, appears to have as little regard for Scotland and our elected Government as his predecessors did. As for the lack of response to correspondence, there is no excuse for that. What on earth happened to the respect agenda?
What options, if any, would be open to the Deputy First Minister, in the context of the devolved settlement, to protect the people of Scotland from further UK Tory Government austerity cuts, for which people in my Cowdenbeath constituency and across Scotland did not vote?
Annabelle Ewing puts her case powerfully, as I would expect. The constituents she represents in Cowdenbeath will be significantly affected in a negative way by a further programme of austerity and, in her case load, Annabelle Ewing will be dealing with the consequences of the last round of austerity from the UK Government.
The Chief Secretary to the Treasury has promised me dialogue in advance of the statement on 17 November. I will obviously commit myself to that at any occasion, in the hope of influencing the agenda in order to avoid a further round of austerity, which would be damaging for Ms Ewing’s constituents and members of the public around the country.
I point out that there was no interaction with the Scottish Government before the mini-budget in late September. There was absolutely no dialogue—indeed, not even the courtesy of an advance phone call—which is a breach of the normal protocols of dialogue. The current Chief Secretary to the Treasury has assured me that the normal protocols of interaction have been restored, and I will hold him to that, because it is vital that the Scottish Government and the Welsh Government—my colleagues in Wales and Northern Ireland are just as livid about this as I am—that we are properly engaged with to ensure that we can put forward the concerns and the views of members of Parliament and, in particular, of constituents such as those of Ms Ewing, which she has put to me today.
The Deputy First Minister has mentioned his engagement with the UK Government, but I was disappointed to learn recently that there has been minimal engagement from Scottish ministers on the development and refresh of the UK national shipbuilding strategy. Will the Deputy First Minister please commit to having the Scottish Government engage fully with that strategy, given that we are the second biggest purchaser of vessels in the public sector, after the Ministry of Defence? We need to get this right, because when vessels are awarded to Turkey, it is a failure for the Scottish industry.
I am happy to commit to dialogue on any aspect of strategy that affects the industrial base of Scotland or any other question affecting Scotland. I respectfully point out to Mr Sweeney that there has not been a functioning UK Government for the best part of 12 months. The UK Government has literally not functioned: interaction has been appalling; dialogue has been one way; no decision making has come back from the UK Government, and what decision making it has undertaken, such as in the mini-budget, was, as Mr Sweeney and I will agree, catastrophic.
I hope that we have some degree of functioning government in the UK Government to allow us to advance the legitimate issue that Mr Sweeney has put to me this afternoon.
Hospitality Sector (Support)
To ask the Scottish Government what support it is providing to businesses in the hospitality sector, in light of the recovery from the Covid-19 pandemic and the cost of living crisis. (S6O-01489)
The hospitality sector is vital to Scotland’s economy. We provided more than £4.7 billion in support to businesses during the pandemic, including across the tourism and hospitality sector, and we are closely monitoring impacts of the cost crisis. We are also establishing a tourism and hospitality industry leadership group to drive sustainable long-term recovery.
We maintain competitive non-domestic rates, delivering the lowest non-domestic rates poundage in the United Kingdom for the fourth consecutive year, supporting a package of non-domestic rates reliefs worth £801 million.
In light of increased pressures and limited powers, we will continue to press the United Kingdom Government for support.
During the October recess, I was invited to meet a number of pub owners in Coatbridge Main Street, who expressed real concern about the viability of their businesses in the short term, due to the cost of living crisis, rising energy costs and changes in behaviour following the pandemic. One of those is the Eden group, which employs nearly 100 people in my constituency and was in The National this weekend—the minister might have seen that. It called on the chancellor to immediately cut VAT, offer rates assistance and provide some form of recovery funding. Does the minister agree with those calls on the UK Government and will he lend his voice to them?
14:45
We understand that businesses such as the Eden Group, which operates in Fulton MacGregor’s constituency, continue to face significant challenges, including as a result of the longer-term impact of the pandemic and the cost crisis. We do not underestimate the scale of those challenges. That is why my colleague the Deputy First Minister wrote to Jeremy Hunt, the new chancellor, on 19 October to re-emphasise the need for targeted support for households and businesses, funded by windfall gains in the energy sector, and to seek clarity on the support that will be available from April 2023.
We will continue to work with businesses in Scotland to press the UK Government for a range of measures—including recovery support and measures on VAT—to help to ease the pressures.
Douglas Lumsden has a brief supplementary question.
The Audit Scotland report “Scotland’s financial response to Covid-19”, which was published this year, stated that 100 per cent of the £4.5 billion of Barnett consequentials relating to business support was allocated. However, how much of that £4.5 billion was allocated to funds but not spent? Is that money now available to help businesses that are struggling now?
We have committed all Covid consequentials for business support that we received during the pandemic to support businesses. I missed some of the detail of the member’s questions, but I am happy to consult the Official Report and to get back to him in writing if I missed anything.
Small Businesses (Support)
To ask the Scottish Government what support it is providing to small businesses through the cost of living crisis. (S6O-01490)
We understand the challenges that are facing small businesses, which have been exacerbated by the economic upheaval caused by the United Kingdom Government in recent weeks. We have in place an existing package of non-domestic rates reliefs worth over £800 million, which includes the UK’s most generous small business bonus scheme. However, the powers and resources that are required to tackle this crisis lie with the UK Government. We will continue to press it to do everything possible to help Scotland’s small businesses.
I thank the minister for that answer, and I refer members to my entry in the register of members’ interests. I have been contacted by business owners in the Lothian region, particularly those with restaurant businesses who have been operating for decades but now find themselves having to close for good thanks to the perfect storm of Covid, a staffing crisis and, now, the cost of living crisis. As that is happening across multiple sectors, does the Scottish Government share my fear that we might have preserved our economy through the worst of the Covid pandemic, only to see it hollowed out by the latest crisis?
I assure Foysol Choudhury that we absolutely share his fears and concerns about the impact of the cost of living crisis and rising energy bills on small businesses in Lothian and throughout Scotland.
Foysol Choudhury and I, along with others in the chamber, were at the Asian restaurant awards dinner last night, where we not only enjoyed fantastic curry and good company but heard from numerous small businesses in the hospitality and catering sector, including restaurants, about the enormous challenges that they face as a result of rocketing energy bills, bills for ingredients and other costs. The situation is very serious.
Of course, as recently as 27 October, the First Minister wrote to the new Prime Minister to stress the urgent need for clarity on what support will remain available for non-domestic consumers beyond April. We have committed to working with the business sector to explore how businesses can be supported with their energy costs, within our devolved powers. We are supporting Business Energy Scotland, and businesses should contact Business Energy Scotland for advice. We will do everything else that is within our powers to help.
Bill Kidd has a brief supplementary question.
Many small businesses in Scotland face substantial pressures, as has been said. Can the minister provide any update on the Scottish Government’s latest engagement with the UK Government regarding the support that is available to small businesses to deal with those rising costs?
Bill Kidd makes a powerful and valid point. I reiterate that the First Minister has just written to the new Prime Minister about those issues, and we await a—we hope positive—response. I have no doubt that the Deputy First Minister will address some of those issues in his forthcoming statement.
That concludes portfolio questions.