Wellbeing Economy, Fair Work and Energy
Good afternoon. The first item of business is portfolio question time and the first portfolio is wellbeing economy, fair work and energy. I remind members who wish to ask a supplementary to press their request-to-speak button during the relevant question. I also remind members of the advice in relation to questions, which should take no more than 45 seconds, and responses, which should take no more than a minute. That will be rigorously enforced from here on in.
Fuel Insecurity Fund (Cunninghame South)
To ask the Scottish Government whether it will provide an update on how the fuel insecurity fund is supporting residents in the Cunninghame South constituency. (S6O-02456)
Each fuel insecurity fund partner is distinct in terms of delivery with regard to the use of funding, targeted support measures and approach, which is tailored to their local area. Cunninghame Housing Association has received £154,000 in the past year as part of the Scottish Federation of Housing Associations’ support, which is directed towards social housing tenants of registered social landlords. That has helped 1,500 tenants through fuel vouchers, support with energy debt and the provision of energy advice and low-energy products. To date, Advice Direct Scotland has provided more than £120,000 in funding to residents of the Cunninghame South constituency, at an average of £800 of support per household.
Although the key energy policy levers remain with the United Kingdom Government, it is welcome that the Scottish National Party Scottish Government continues to support people who are facing unprecedented rises in the cost of energy.
Does the minister agree that the Tories at Westminster have so far failed to take the necessary steps to ensure that households never again experience an energy crisis such as the present one? Will she join me in calling for the UK Government to put the energy and cost of living crisis front and centre of its work?
Of course, I agree with Ruth Maguire. We have consistently called on the UK Government to take action of the sort that she has mentioned. Although we are doing all that we can with our powers to support as many people as possible during the cost crisis, the biggest problem is the source of the problem. Only the UK Government has the fiscal and policy levers to truly address this unacceptable situation. Until it does so, we can step in to mitigate the situation for households only when there is a crisis.
Meaningful targeted support on energy bills for those who need it most must be prioritised, which is why we continue to call for the introduction of a social tariff for the most vulnerable in our society. I had a meeting with the UK minister, Amanda Solloway, on that very issue this week. The UK Government also needs to make the necessary energy market reforms, to permanently break the link between the price of electricity and the cost of gas and thereby ensure that the people of such a renewable energy-rich nation as Scotland never have to endure such a situation again.
Feed-in Tariffs Scheme
To ask the Scottish Government what further discussions it plans to have with the United Kingdom Government regarding lifting the 100kW deployment cap on its feed-in tariffs scheme for renewable energy generation from community and farm-owned micro hydro schemes in Scotland. (S6O-02457)
As I have said, the Scottish Government continues to meet the UK Government regularly to discuss a range of issues to do with the energy market and tariffs, in particular, including the provision of support schemes for renewable energy generation projects across the commercial and community sectors.
Scottish Government support remains available through our community and renewable energy scheme—CARES—to help communities to assess their priorities for net zero, including potential opportunities for energy generation.
Constituents have shared their frustration at being able to produce 40 per cent more electricity than the current cap but being unable to export it, as doing so would result in them losing all their feed-in tariffs.
In the face of the climate and energy crisis, does the minister agree that the UK Government should enable Scotland to do all that it can to harness its potential for renewable energy, especially from community and farm micro hydro schemes?
I absolutely do. I think that the UK Government is missing a trick because, cumulatively, such community energy schemes could be generating a huge amount of renewable electricity. Scotland’s and the UK’s net zero ambitions depend heavily on an energy system that supplies affordable, resilient and clean energy. Expanding community and locally owned renewable energy projects will be key to realising a fair and just transition, which is why we continue to press the UK Government to implement reforms to the energy markets that better support community and local projects.
We continue to take our own actions through schemes such as CARES, which support our progress towards our ambition of 2GW of community and locally owned energy by 2030. The member will be pleased to hear that we are almost halfway towards achieving that target.
Public bodies could play a much bigger role in supporting community schemes by using power purchase agreements in the national framework agreement for best supply of electricity, but, in written answers to me, the cabinet secretary has confirmed that no such agreements are in place. What is the Scottish Government doing to support public bodies and community groups that wish to create micro hydro or other renewable schemes and generate income from them?
I refer Ms Boyack to my earlier answer about CARES, which is doing exactly that. To date, CARES has helped more than 900 organisations and has provided more than £60 million in funding to communities, and it has supported progress towards our ambition of 2GW, as I said.
At the end of last year, there was an estimated 908MW of community and locally owned renewable energy capacity, estimated to produce nearly 2,000 gigawatt hours of renewable energy annually. We want to see that go up, so I would recommend that the bodies that Sarah Boyack has been speaking to get involved with CARES. If there is anything further that we can be doing, she should of course write to me to make suggestions. I am always willing to listen.
Trade Unions (Scottish Government Policy Development)
To ask the Scottish Government how it is working with trade unions to ensure that it includes workers’ voices in its policy development. (S6O-02458)
Scottish Government ministers meet the Scottish Trades Union Congress regularly, reflecting the important role that unions play as key social partners in sustaining effective democracy in society and contributing to economic competitiveness and social justice. Our strategic relationship with the STUC is underpinned by a memorandum of understanding that includes commitments to include the STUC in relevant policy development and for the First Minister to meet the STUC biannually to discuss current issues.
The STUC and affiliate trade unions have been engaged in a number of recent policy developments, including our national strategy for economic transformation, advancing fair work in adult social care, our retail strategy and our refreshed fair work action plan.
Last week, in its response in support of my bill for an employment injuries advisory council, the Fair Work Convention said that it was “pleased to see” the principle of “effective voice” underpinning the bill, which would put the voices
“of trade unions at the heart of the Council”
and the new benefit.
Does the cabinet secretary agree that workers know their workplaces best? They know the illnesses and diseases that they face at work, so will the Government listen to the Fair Work Convention, which it established, and support the bill, so that we can secure workers’ voices in the new benefit?
We will respond to Mark Griffin’s proposals in due course. In principle, we continue to work with not just the STUC but the Fair Work Convention to ensure that, as Mark Griffin points out, we have effective worker voice across all elements of society and advance that as best as possible. That is a job that I am taking forward with ministerial colleagues across Government.
The Scottish Government’s tourism and hospitality industry leadership group has a trade union representative as a full member, which has been seen by all parties as a positive development that ensures a focus on fair work in the sector. Has the Scottish Government looked at whether there is scope for trade union representation on other industry leadership groups?
Yes. Trade unions are working with the Scottish Government alongside the Fair Work Convention, which is tasked with promoting fairer workplaces and encouraging employers to engage with the fair work agenda. Unite’s membership of the tourism and hospitality ILG is important in ensuring effective voice in strategic-level discussions with industry. Trade unions are an essential and integral partner in supporting our industries to adapt and innovate for future challenges and opportunities, and they engage across a range of industry sectors. The retail ILG has trade union representatives, such as the GMB and the Union of Shop, Distributive and Allied Workers, as full members of that group, which is promoting all aspects of fair work across the retail industry, and Unite is a full member of the construction leadership forum. Trade unions are also engaged in the construction accord and will continue to play an important role.
The Labour Party was a movement grown out of trade unions, with the purpose of supporting workers’ rights. However, Sir Keir Starmer’s Labour Party has moved so far to the right that it is content to leave Scottish workers’ rights in the hands of a right-wing, draconian Westminster Government.
Will the cabinet secretary provide an update on the Scottish Government’s continued attempts to guarantee, protect and strengthen workers’ rights in Scotland, and will he join me in calling for Scottish Labour politicians who are serious about tackling employment issues to commit to devolving employment law to Holyrood immediately?
Yes. The discomfort from Labour members on the different tracks that have been taken by Scottish Labour and its Westminster leaders is quite something to behold, and that continues.
We are using the devolved levers that we have to promote fairer work across Scotland. Our commitment is demonstrated through our fair work first approach in procurement and public sector grants and our broader support for fair work practices.
We are clear in our position on the Trade Union Act 2016 and subsequent anti-trade union Westminster legislation: we vehemently oppose those measures. Most recently, we opposed the Strikes (Minimum Service Levels) Act 2023, which we find abhorrent, and we will continue to encourage the United Kingdom Government to guarantee, protect and strengthen workers’ rights. Unfortunately, our efforts in that regard have yielded little result.
If Labour in Scotland is serious about tackling employment issues, it should join us in calling for the devolution of employment law, short of independence, immediately.
Wellbeing Economy (Investment)
To ask the Scottish Government how the investment announced in the 2023-24 programme for government will contribute towards a move to a wellbeing economy in the Central Scotland region. (S6O-02459)
The actions that are set out in the programme for government will drive our transition to a fair, green and growing wellbeing economy, providing opportunities for people to realise their full potential and businesses to thrive. They will ensure that prosperity and investment are shared across our communities and regions. That includes investing £2.2 billion in 2023-24 to address the impacts of climate change and deliver a just transition to net zero, a pay uplift for care workers and childcare workers to £12 an hour and a £15 million package to support enterprise and entrepreneurship, which will create new opportunities to start, scale and sustain businesses in Scotland.
Many projects across my Central Scotland region, such as those delivered through the Falkirk Foundation and the Motherwell Football Club Community Trust, contribute greatly to the wellbeing of their communities, including by providing lunches to children, football camps, employability schemes and mental health support. How can the Scottish Government ensure that practical as well as financial support is provided to projects that deliver positive outcomes such as those?
Scottish football has a strong track record of delivering on national and local outcomes through projects and programmes such as CashBack for Communities, the Scottish Association on Mental Health changing rooms extra time mental wellbeing programme and out-of-school childcare at Ayr United Football Club. I must also welcome the work of the incredible Diamonds in the Community in Airdrie, in my constituency.
The breadth and diversity of the communities that our football clubs service is considerable. Many of those communities are in areas of significant deprivation, and we continue to work with the Scottish Football Association to improve the wellbeing of communities across Scotland.
We have invested £36 million over two years in our communities mental health and wellbeing fund, with approximately 3,300 grants going to local projects across Scotland. In 2022-23, 15 local community football mental health and wellbeing projects received more than £150,000, including £10,000 to the Falkirk Foundation and just over £30,000 to the Motherwell Football Club Community Trust. A further £15 million is committed in 2023-24, and we are providing local authorities with £15 million a year for community-based mental health support for children and young people.
Tourism Sector (Support)
To ask the Scottish Government whether it will provide an update on what action it is taking to support the tourism sector. (S6O-02460)
The Scottish Government recognises how vital tourism is to our economy, and, working with VisitScotland, we actively promote Scotland as a tourist destination through targeted campaigns to domestic and international markets. Recent events that have helped to promote Scotland to international audiences, such as the Union Cycliste Internationale cycling world championships, have been very successful in attracting not just competitors but visitors from around the globe.
A key component of our national strategy for economic transformation is our tourism policy, “Scotland Outlook 2030: Responsible tourism for a sustainable future”. Supporting the sector will help us to achieve the responsible and sustainable goals for Scotland to be a world leader in 21st century tourism.
I recently met a number of tourism businesses that operate in the national parks, and they told me that the current situation is unsustainable and heading towards crisis. Hospitality businesses in England and Wales can receive up to 75 per cent non-domestic rates relief. The Scottish Government, which we know has received funding based on that policy, has chosen not to pass any relief on to the struggling Scottish sector. Will the minister agree to meet the national park destination management group to hear its concerns first hand? Why, in the midst of a cost of living crisis, does he not think that that relief is justified?
I would be delighted to meet the group that Jackie Baillie has mentioned, as I am keen to hear its views. To put things into perspective, I have to say that—notwithstanding the big pressures that are faced by the businesses that she mentioned—the results from the survey of the sector, which was carried out in August 2023, said that the three biggest concerns for businesses in the sector were energy prices, inflation and interest rates, in that order. She will be aware that the Government and the Parliament do not have responsibility for those issues; they are United Kingdom Government issues.
The new deal for business and the working groups within that have been looking at some of the issues that Jackie Baillie outlined in relation to rates and so on, and the report on that will be published shortly. We are keen to help the hospitality sector in Scotland as much as we can, but we also need help from the UK Government.
Right now, the tourism sector is united in raising concerns about the licensing of short-term lets regulations that are due to come in on 1 October, which will affect not only self-catering units but bed and breakfasts, guest houses, home shares and home swaps. Given those concerns and the unintended consequences of the regulations that are coming in, if the Scottish Government really is listening to business, it should surely now pause the introduction of the regulations and give time for a proper and thorough review of what is going wrong as a result of the policy.
I listened very closely to the Minister for Housing’s statement on that subject during topical question time yesterday. The minister gave an up-to-date report on where things are and said that he is listening closely to stakeholders.
I want to put on record the valuable role that self-catering accommodation, bed and breakfasts and similar short-term let accommodation play in the Scottish economy and the tourism sector. However, the Government—indeed, the policy had support from members across the chamber and from all parties—is trying to balance some important factors. We have to take into account consistency of standards across the sector and the impact on neighbourhoods and communities, which is why all parties at Westminster—indeed, in the past, all parties in this chamber—and governments around the world are looking at regulating short-term lets right now. Even San Francisco, which hosts the global headquarters of Airbnb, has had to introduce stringent regulation of short-term lets. It is quite right that we look at that.
There were three consultations, and businesses have until 1 October to apply.
Can the minister provide an update on the steps that are being taken within the powers currently available to the Scottish Government to support tourism businesses that have reported staff shortages due to the loss of freedom of movement?
As well as the other issues that have an impact on tourism and hospitality in Scotland, the fourth issue that is often mentioned is the impact that Brexit has had through a shortage of labour and skills—particularly in rural Scotland, the west of Scotland and the islands. That is a big issue.
This week, I met with the industry-led tourism and hospitality skills group to see what more the Scottish Government can do not only to put pressure on the UK Government to do the right thing on immigration and rural visas but to make tourism and hospitality an attractive career option for the young people of Scotland.
The practical implications of short-term lets licensing applications are posing a threat to the emergence and growth of tourism in Scotland. A combination of a shortage of qualified trades and long travel times to islands is making it very difficult for some accommodation providers to complete necessary work and get certification for their applications, which is putting businesses at risk. I raised that with the Minister for Housing and the council, who are both aware of the issues but are unable to identify a solution. How is the Scottish Government working with local authorities to ensure that local needs are addressed for the licensing requirements?
I will certainly pass on the member’s comments to the housing minister. One issue that is often raised with me by tourism businesses on the islands and across Scotland is that they sometimes cannot recruit staff because there is nowhere for them to live, and there is nowhere for them to live because of second homes and houses and properties bought for tourism purposes—short-term lets—and for other purposes.
That is one of the reasons why we are looking at those issues, and I say to Beatrice Wishart that the key worker housing policy that we are developing at the moment and the forthcoming rural plan will say a lot more about that. The First Minister has already announced substantial resources for a key worker housing plan. I understand that that is a big issue in Shetland—I remember that from my own visit there. We are very serious about addressing those issues.
Clyde Mission Regeneration Programme
To ask the Scottish Government whether it will provide an update on the Clyde mission regeneration programme. (S6O-02461)
On 28 August, the First Minister confirmed that leadership of the Clyde mission will move from the Scottish Government to local authorities in the Glasgow city region and Argyll and Bute. The Government is committed to empowering our regions to drive economic development that is focused as much on wellbeing as it is on growing our economy.
The Scottish Government remains a partner in the Clyde mission, investing £1.5 million in a new master plan. Alongside previous investment of £13.6 million and a commitment of £25 million to new heat decarbonisation projects, total Scottish Government investment will top £40 million.
Ensuring that Glasgow’s communities are better connected is a perennial discussion that I have with my stakeholders in the constituency. The pedestrian bridge that will connect Partick, which is in my constituency, and Govan across the river will go a long way towards achieving connection between communities that are cut off from each other.
What further projects does the Government foresee to better connect communities and improve the lives of those who live in them?
I agree that connectivity between communities is crucial and that the new bridge connecting Govan and Partick is a very exciting project. There are other similar projects in Glasgow, such as the recently opened Sighthill pedestrian bridge. That was funded by the Glasgow city region deal, which the Scottish Government supported, and has huge potential to improve the connections between communities for work and leisure. I am also aware of the £2.3 million of Scottish Government investment into the regeneration of the Govan graving docks, which will be used to deliver new greenspace and address existing barriers to access to the riverfront for communities.
Community Energy Schemes (National Grid Access)
To ask the Scottish Government what discussions it has had with the United Kingdom Government regarding ensuring access to the national grid for community energy schemes in Scotland. (S6O-02462)
The Scottish Government has long understood the value of community energy in engaging Scotland’s communities in the journey towards net zero and in delivering the economic and social benefits to local areas that are at the heart of our just transition. We regularly discuss the availability of grid connections with the UK Government, the electricity system operator, relevant network companies and Ofgem, making clear that the network must support the connection and delivery of clean power to communities, homes and businesses across Scotland.
I was pleased that the minister accepted my invitation to visit the Penpont community micro-hydro scheme in Dumfries and Galloway during recess. It is clear that such schemes are crucial in supporting our renewable energy output and providing green power at a local level. They are also crucial in our fight against the climate emergency. However, the UK Government seems unwilling to adopt those schemes to the national grid. Will the minister confirm that an independent Scotland will have a focus on those schemes, providing low-cost power through a national grid of our own?
I first thank Emma Harper for the invitation to visit Penpont community energy scheme. I enjoyed my visit very much.
The Scottish Government has been clear that increased renewables—which are lower cost than gas-fired power or nuclear—in conjunction with long duration storage technologies will be key to meeting our net zero ambitions. Although the rules and regulations relating to electricity networks are reserved to the UK Government, an independent Scotland would seek to maximise our vast renewables potential. That would not only support energy self-reliance and ensure that we generated enough green electricity to power Scotland, but also mean exporting increasing amounts of low-carbon energy to our neighbours and supplying new markets, such as the emerging hydrogen economy.
Very briefly, Brian Whittle.
Does the minister recognise the opportunities to develop off-grid local energy systems such as through using wind and solar power to develop green hydrogen, which in turn could power big business and transport? What support is the Government giving to those opportunities, and how will the minister promote them?
As briefly as possible, minister.
I point to our hydrogen strategy and to some of the visits that I made over the course of the summer. We are putting a lot of money into innovation, particularly around small electrolysers. I met a company in the south of Scotland that is looking to diversify from large electrolysers to small units that would allow farms, for example, to generate their own hydrogen. If Brian Whittle wants to see me afterwards, I could point him to that company and he could maybe make a visit of his own.
Employment Law Devolution (Impact on Labour Market Strategy)
To ask the Scottish Government what assessment it has made of the potential impact that any future devolution of employment law to the Scottish Parliament would have on its long-term labour market strategy. (S6O-02463)
Securing the full range of powers in relation to employment law will enable the Scottish Parliament to implement policies that will best meet Scotland’s distinct needs. In “Building a New Scotland: A stronger economy with independence”, we outlined plans to offer comprehensive employment rights including flexible working, parental leave and unfair dismissal claims on day 1 of employment. Those powers would create fairer workplaces, enhance workers’ rights in Scotland and help to shift the curve on poverty and deliver on our shared ambition for a wellbeing economy that is fair, green and growing, with a just transition to net zero.
Is it not the case that, just like the Scottish National Party Scottish Government, the Scottish Trades Union Congress has been campaigning for the devolution of employment law precisely to ensure that workers are better protected? Would that not be the better path?
Absolutely. The STUC and the Scottish Government have long shared the view that employment powers should be devolved to Holyrood. Both parties continue to press the United Kingdom Government for the full devolution of employment powers in order to protect and enhance workers’ rights. I hope that they will bring the Labour Party in Scotland with them on that journey, as it has consistently blocked the passage of employment law being devolved to the Parliament.
In “Building a New Scotland”, we set out the protection that Scotland could introduce if it had full employment law powers. For example, we propose repealing unfair labour laws such as the UK’s Trade Union Act 2016, legislating to ban fire and rehire and properly resourcing the enforcement of a Scottish national minimum wage. Policy coherence with the full suite of powers of independence, including powers over migration, would ensure that we had a migration strategy and a labour policy that were joined up and that addressed the needs of Scotland’s economy.
Finance and Parliamentary Business
The next portfolio is finance and parliamentary business. I remind members who wish to ask a supplementary question to press their request-to-speak button during the relevant question. I also remind members of the time requirements. Questions should take up to 45 seconds and responses should take no more than a minute. That will again be rigorously enforced. On that basis, I call Daniel Johnson to ask question 1.
Public Sector Headcount
Challenge accepted.
To ask the Scottish Government what the change in public sector full-time equivalent headcount has been in the last 12 months across all devolved areas. (S6O-02464)
Full-time equivalent employment in Scotland’s devolved public sector increased by 2,910 over the 12 months to March 2023. That represents a 0.6 per cent increase to a total full-time equivalent figure of 463,200. Local government showed the largest increase in employment—that figure increased by 1,620 over the period. It is for public bodies, in dialogue with their respective trade unions, to determine the target operating model for their workforces, while ensuring that plans are affordable and reflect our stated commitment to no compulsory redundancies.
Indeed—that is their priority. However, between 2021 and 2022, civil servant headcount increased by 4,500—almost twice as much as the increase in the national health service headcount, which was less than 2,500. That was at a time when the number of police, fire and further education workers flatlined or declined. What does it tell us about the Government’s priorities when it prioritises increases in bureaucracy and the number of spin doctors, rather than front-line doctors and nurses?
I do not accept that, and it does a great disservice to the hard-working civil service. I am sure that the civil service unions will be paying attention to what Daniel Johnson said. What he has not taken into account is the impact of events such as the European Union exit and the Covid-19 pandemic, which we had to ensure that the civil service was able to respond to.
However, going forward, the workforce has to be affordable. In partnership with the trade unions, we have agreed that work will be taken forward to make sure that the operating model for the civil service delivers efficiently and can meet the needs of the organisation in a sustainable and affordable way. As I said, we will take forward that work in partnership with our trade union colleagues.
I am sure that the Deputy First Minister agrees that it is critical to deploy resources on the front line of service delivery and in support of the Government’s agenda of tackling poverty, rather than on support activities. What has been the change in core Scottish Government headcount and costs over the past three years? What work is being done to minimise those costs to ensure that maximum resources are applied to delivering the Government’s agenda on the front line?
I will not repeat the figures that I have given, but I can write to Ivan McKee with more detail. In 2022-23, the size of the core Scottish Government decreased as enhanced recruitment controls were applied to reflect the changing economic and financial context. Effective prioritisation meant that the Government was still able to deliver on its key priorities, including our Ukraine response, our on-going net zero and new ScotWind commitments and addressing the cost of living crisis through our social security policies. The Scottish Government continually monitors the cost of its operations to ensure that resources are aligned to our programme for government commitments. As I said, I am happy to write to Ivan McKee with detailed figures.
Public Sector Pay Settlements (Impact on Services)
To ask the Scottish Government what impact recent public sector pay settlements are having on the provision of services. (S6O-02465)
The Government values the vital role of the public sector and the people who deliver its services. We support fair work principles and partnership approaches with trade unions through collective bargaining arrangements. However, our budget has been hit by inflation and, in 2022-23, we directed about £900 million to fund higher pay awards. Despite that pressure and the lack of consequentials from the United Kingdom Government, agreed pay settlements for national health service staff, teachers, firefighters and others provide evidence of the success of our approach of providing fair settlements to maintain high-quality public services and avoid costly industrial action.
I put it on record that I fully support the Scottish Government in helping folk to cope with the UK cost of living crisis by negotiating those settlements within its fixed budget. However, the Scottish Government has no control over inflation, which is running at 8 per cent. Is it not crystal clear that the constraints of devolution are there for all to see—causing us to eat into other budgets to the amount that the cabinet secretary just disclosed—and that we need to be independent of this failing UK sooner rather than later?
I agree completely with Christine Grahame’s last point, but, in the meantime, the Treasury could support the cost of pay deals but refuses to do so. The Tory UK Government seems to have a high threshold for industrial action. That is not something that the Scottish Government supports. We believe in going forward in partnership, and we absolutely recognise the cost of industrial action to public services and the people who rely on them.
The chief executive of Scottish Water has been awarded a pay rise that unions have highlighted as being £50,000 above the Scottish Government’s current policy on public sector pay, while lower-paid staff are in dispute over their wages. Will the cabinet secretary listen to unions that are calling for a review of public sector pay policy, including excessive executive pay at the top?
Pay rises are a matter for public bodies, but we would expect them to abide by public sector pay policy, and it is important that those in leadership positions in public bodies lead by example. We reinforce that through our sponsorship teams, and we will continue to do that. I should say that Scottish Water—in terms of its performance, operation and delivery, and as a financial model—is doing a lot of good work. Nevertheless, in times such as these, the need for constraint should be recognised by everyone, particularly those in leadership positions.
Council Tax (Community Engagement)
To ask the Scottish Government what engagement it has had with communities in the North East Scotland region on any increases to and reform of council tax. (S6O-02466)
In partnership with the Convention of Scottish Local Authorities, we are seeking views on the proposals to increase the charges in council tax property bands E to H. The fairer council tax consultation closes on 20 September and will take into account the views of all respondents and stakeholders, including those from the north-east.
I have been contacted by several constituents who are pensioners and are concerned about the possible changes to council tax bands E and above. Faced with the cost of living crisis and a fixed income, they are already not looking forward to winter. Will the minister say more about the options for change and what the timescale will be, and say what more can be done, other than through the council tax reduction scheme, to tackle pensioner poverty? Further, will he provide a timeline for the much-needed and long-awaited comprehensive overhaul of council tax?
The consultation is seeking views on whether people who are in properties that are in the highest bands should make a greater contribution only when they can afford to do so. The council tax reduction scheme ensures that nobody has to pay a council tax bill that they cannot be expected to afford, regardless of their property band, so, in addition, the consultation seeks views on whether the reduction scheme should be expanded to protect people on lower incomes from any increases.
Scottish councils have been treated fairly throughout UK-imposed austerity, but we recognise the challenging environment that they face. That is why we are continuing to have, and are committed to, a new deal with local government to ensure the sustainability of local services.
Maggie Chapman will be aware that the working group on local government funding is working in collaboration with COSLA and other partners. They will consider what other options might be brought forward. The proposal that COSLA and the Scottish Government are consulting on could result in significant additional funding—
Thank you. I will take a supplementary from Michael Marra.
—to local services in the short term.
The minister should know that up to 80,000 low-income households could face rises of up to 22 per cent as a result of the proposals that he has made. In the worst cost of living crisis in a generation, why does the Government think that ordinary Scots should foot the bill for its failure to fund local services?
It is impossible and impractical to suggest that we should continue investing in local services but not look at how we will face the cost of living crisis and cost of energy crisis. Mr Marra talks about 80,000 households paying 22 per cent more. In the proposal that is being consulted on, 22 per cent relates to band H properties. In Dundee, just over 30 properties are in that band.
It is really important that we look at the matter in the round. If Mr Marra has other suggestions on how we can raise funds for local services across the piece, I ask him to please make them. However, he cannot say, “No council tax rises, no income tax rises, no VAT.” I do not know, but is that a song, perhaps?
Islands Cost Crisis Emergency Fund
I think that it is a song, minister.
To ask the Scottish Government, in light of the announcement by the local government empowerment minister in July, whether it will provide an update on what discussions he has had regarding the roll-out of the islands cost crisis emergency fund. (S6O-02467)
I was delighted to announce the launch of the £1 million islands cost crisis emergency fund on behalf of the Cabinet Secretary for Rural Affairs, Land Reform and Islands during my visit to Shetland this summer. Shetland Islands Council immediately welcomed the announcement and commended the greater flexibility that it provided to support business as well as communities. It was also welcomed in other island communities, including Alasdair Allan’s and the Deputy Presiding Officer’s.
The current cost of living crisis and its effect on our island communities continues to be a key priority for the Scottish Government and it will be discussed in further detail at the upcoming islands strategic group in October.
That welcome additional support for island communities in the cost of living crisis recognises the higher costs, including energy bills, that islanders incur. What is the minister’s view on the United Kingdom Government’s decision to scrap the energy bill support scheme from last winter, which means that many of my constituents’ bills will be even higher than they were?
The October energy price cap, coupled with the UK Government’s scrapping of the energy bill support scheme, will mean that average households will pay more this winter. That will negatively impact people and businesses on Scotland’s islands, who already face far higher costs than the average household. That is why the UK Government should not have ended the energy bill support scheme.
Despite Scottish ministers’ repeated calls for the chancellor to extend the scheme, he has failed to do so, which leaves our island communities exposed to higher energy bills. I take the opportunity once again to call on the UK Government to provide the support that people and businesses across all Scotland will need this winter.
Women with a History of Offending and Substance Abuse (Budget Allocation)
To ask the Scottish Government how much it has allocated from its 2023-24 budget to community justice services for the purpose of supporting women with a history of offending and substance abuse. (S6O-02468)
The Scottish Government is investing around £134 million in community justice services in 2023-24. That is made up of around £123 million to local authorities with the remainder being direct funding for third sector services. Local authorities have the autonomy to direct funding according to local needs and that might include supporting services for women with a history of offending and substance abuse.
I refer members to my entry in the register of members’ interests, as I am a member of Unite the union.
Turning Point Scotland’s 218 service in Glasgow is a lifeline service for women, but, today, Unite the union has called for an urgent review of an £850,000 budget cut by the Government and Glasgow City Council that could force the centre to close and make 30 workers redundant. Will the cabinet secretary agree to review the community justice services budget and this funding crisis with a view to saving the service, saving lives and saving jobs, and to keep the Parliament updated?
We have not reduced the overall funding that is available for community justice services across Scotland, nor have we asked local authorities to reduce any specific funding within that. Decisions about the commissioning of individual community justice services are for local authorities. Community justice funding is primarily based on a local model whereby we provide the funding to local authorities, which then commission the services according to local needs.
If services are reviewed and changed, that is a matter for the local authority. Even when aspects of that funding are targeted at more specific needs, as is the case with the funding that is currently provided to the 218 service, the commissioning and management of those services, including any retendering, are matters entirely for the local authority. We do not get involved in those decisions.
I am sure that Glasgow City Council will be able to discuss with the member the detail and the reasons for that change following the review of that service, if she wants to take up that opportunity.
Question 6 has not been lodged.
Local Services (Budget Allocation)
To ask the Scottish Government how much it has allocated to local authorities from its 2023-24 budget to prevent the closure of local services in light of rising energy and running costs, including to prevent the closure of swimming pools. (S6O-02470)
Despite the most challenging budget settlement since devolution, the local government settlement increased by £793 million to nearly £13.5 billion in 2023-24. The vast majority of that funding is provided as a block grant, and it is for locally elected representatives to make decisions on how best to allocate those resources across their communities.
The fiscal environment for councils is unquestionably challenging, as it is for the whole of the public sector. That is why we are committed to a new deal with local government in order to ensure the sustainability of local services.
This Tory-inflicted cost of living crisis is affecting not only individuals but community hubs, assets and sports centres, including swimming pools. As we all know, swimming pools are vital in teaching people the life skill of swimming, as well as being invaluable community resources.
I recognise that the Scottish Government is operating with one hand tied behind its back, but what other steps are being taken to work with local authorities to ensure that swimming pools remain at the centre of our communities?
It is important that we do not overlook the fact that councils are democratically elected to make decisions on the priorities in their local communities. On the specific issue of swimming pools, the Scottish Government will continue to work with sportscotland, our national agency for sport, on the Scottish swimming facilities project to accurately understand the provision of current facilities and to predict the landscape in the short, medium and long term to ensure the sustainability of those important facilities.
We all know the benefits of physical activity in general, but swimming, in particular, is a life-saving skill.
Consequentials were added to the Scottish block grant after the United Kingdom Government announced the £63 million swimming pool support fund. How much of those consequentials was passed on to local authorities, and what additional funding has been provided to support swimming pools in Scotland?
I confirm that all the consequentials that have come to the Scottish Government have been allocated. The Scottish Government has worked hard to ensure that local government gets a fair settlement. It is ironic that the member comes to the chamber on the day that another English council—in Birmingham—goes bust—
It is a Labour council.
It is one Labour council and, to be fair to the Labour Party, that council joins several Conservative councils across England.
This morning, on “Good Morning Scotland”, Jonathan Carr-West, the chief executive of the UK-based Local Government Information Unit, was asked whether that could happen in Scotland. He said:
“Scottish councils haven’t seen the same sustained austerity that English councils have seen over the last 13 years. We have seen a squeeze on local government funding in Scotland over the past couple of years, but we are starting from a ... safer place.”
We want to enter into a fair agreement with local government, working in partnership, to ensure that we can deliver better services for the whole of Scotland. We will do that across the board. The Tories need to get on board—if they want us to spend the money, they need to tell us where it is going—
Thank you. I call Sue Webber.
Council Tax Bills
To ask the Scottish Government whether it can provide an estimate of the number of households whose council tax bills have risen this year. (S6O-02471)
Council tax is a local tax that is set and administered by individual local authorities. Each council has the capacity to set the council tax rate that is appropriate for the local authority area. Although council tax was increased in each council area, that was, in each case, below the rate of inflation at that time, according to the consumer prices index.
We provide a generous package of discounts, reductions and exemptions, including the council tax reduction scheme, which is based on the ability to pay and benefits more than 450,000 households, with more than 380,000 households paying no council tax as at March 2023.
Pensioners now disproportionately pay the highest rates of council tax, and nearly one in 10 people now pay the highest rates of income tax.
I will again put the question that Michael Marra asked as the minister did not quite answer it constructively. The damaging 22.5 per cent rise in council tax is nothing more than a raid on pension incomes. Will the Scottish National Party reconsider that increase as it is threatening to push thousands of people out of homes in which they have lived for decades just to make up for its gutting of local government funding over the years?
I will go back to what Jonathan Carr-West said on “Good Morning Scotland” this morning:
“I don’t want to minimise for Scottish councils”
or for
“many of our members in Scotland who are feeling the pinch a bit now and are having to make tougher decisions than hitherto, but they are starting in a much more comfortable place than English local authorities that have had more than a decade of really savage funding cuts.”
The member has a brass neck.
There are a couple of supplementaries, the first of which is from Kenny Gibson.
Will the minister advise how average council tax in Scotland compares with that in England under the Tories and with that in Wales under Labour?
Council tax is considerably lower in Scotland than elsewhere in the United Kingdom. [Interruption.] Every Scottish household benefits from cheaper council tax, and the average council tax bill in Scotland is £604 less than the average bill in England in 2023-24. [Interruption.] The average—
Minister, I ask that you take your seat for a second.
Members, I know that there is a lot of interest in this issue, but it will help the proceedings if we can hear both the questions and the answers and if we do not have those on the front benches shouting at each other.
I ask the minister to resume.
Every Scottish household benefits from cheaper council tax, and the average council tax bill in Scotland is £604 less than the average bill in England in 2023-24. The average band D charge in Scotland is £648 less than that in England and £463 less than that in Wales.
Research that the TaxPayers’ Alliance published last month found that, as a proportion of average income, Scotland has the lowest council tax bills in the UK.
The SNP position on council tax has changed significantly over the past 16 years. It has moved from abolishing it to freezing it and now to making the biggest-ever hikes to it. I have sat through endless cross-party talking shops in this Parliament on reform of the council tax, but absolutely nothing has been done about it. When will the SNP deliver its promise from 16 years ago to abolish the unfair council tax?
The member will be aware that the joint working group, which involves the Convention of Scottish Local Authorities, is looking at options for local government finance. However, an option is being considered right now that will bring extra money into local government and make the regressive council tax fairer. I hope that the member and his party will support that extra funding for local government.
That concludes portfolio questions on finance and parliamentary business. There will be a brief pause before we move on to the next item of business, to allow a changeover of those on the front benches.