Chamber and committees

Evidence from the Work Programme, and to a lesser extent Work Choice, shows that those further from the labour market have not been adequately supported to help enter work. A National Audit Office report on The Work Programme published in July 2014 (https://www.nao.org.uk/wp-content/uploads/2014/07/The-work-programme.pdf) highlighted that average DWP spend on those who were harder to help was less than on those who were deemed closer to the labour market.

Evaluation of the Work Programme has indicated that the payment model – which rewarded providers only for sustained job outcomes - skewed provider behaviour and resulted in parking of clients who needed additional support. The Scottish Government is clear that addressing this is a priority for the new services.

We are considering a range of options to ensure that those who need the support and can benefit from it will be able to access the new devolved employment services. We recognise the challenges and will monitor this aspect of delivery carefully from the outset.

In 2015, the Scottish Government carried out a consultation on future devolved employment support and in March 2016, we published our response to that consultation - A New Future for Employability Support in Scotland (http://www.gov.scot/Publications/2016/03/3009) which sets out our vision for future employability services in Scotland.

A literature review conducted for the Scottish Government by the Learning and Work Institute in 2015 (http://www.employabilityinscotland.com/media/519601/scotlands_future_employment_services_-_literature_review_-_cesi_-_january_2016.pdf) points to the value of highly skilled advisers with small caseloads to successfully support those with disabilities into work. We are keen to understand more about this and in our transitional year, have asked providers to gather data on adviser caseloads.

Yes. From April 2017, Scottish Government’s transitional employability services will have clear levels of the service to be provided for each customer. These will be detailed within the statement of requirement documents that will be issued within the tender documentation for the transitional services.

The Scottish Government is currently developing the service requirements for 2018 onward, and anticipate them also having defined minimum service standards.

Audited and projected estimated figures of the cost of the small business bonus scheme from 2008-09 to 2016-17 are shown in the following table. Estimates for future years are subject to final decisions and the impact of the 2017 revaluation and cannot be accurately provided.

Small Business Bonus - Costs and Forecasts - 2008-09 to 2020-21

1. Figures to 2014-15 are final Audited amounts

2. Figure for 2015-16 is a Mid-Year Estimate and subject to change

3. Figure for 2016-17 is Provisional Contributable amount and subject to change

The small business bonus scheme provides a competitive advantage for Scottish businesses worth up to £3,227 in 2016-17 compared to English competitors trading from equivalent premises.

Further to this, the government have made a commitment in the latest manifesto to extend the small business bonus scheme, so 100,000 of our small businesses will be removed from business rates completely.

The Scottish Government does not have such plans. Revaluation of properties for council tax purposes would potentially impose major changes to individuals’ council tax liabilities.

The remit of the business rates review group is to explore ideas and options to improve the business rates system in Scotland to better support business growth that consider how the system can respond to wider economic conditions and changing marketplaces; support long-term growth and investment; are based on overall revenue neutrality and on maintaining the overall level of funding for local government.

Ken Barclay, formerly Chair RBS Scotland has been appointed as Chair of the group and additional members, drawn from a range of backgrounds and expertise will be announced shortly.

The group will take a wide ranging look at the whole business rates system in Scotland, reporting by July 2017.

We will formally seek to consult local authorities on devolving a share of income tax to councils in due course and will engage with HMRC as appropriate to support this process.