Tag: Press Release

The press release issued by the Scottish Government on 2 August 2023.

The Scottish and UK Governments have reached agreement on the Fiscal Framework, providing greater long-term funding clarity for Scotland and some more flexibility on how the Scottish Government manages the public finances.

After a joint review, the two governments have agreed to permanently adopt the existing Indexed Per Capita (IPC) method used to calculate the funding received from the UK Government.

This enshrines the current way the Fiscal Framework operates, taking into account the devolution of some tax and social security powers and protecting the Scottish Budget from the risk of Scotland’s population growing at a slower rate from the rest of the UK.

In addition, the amount the Scottish Government can borrow to mitigate against errors in forecasting will be increased from £300 million to £600 million, with no limits to the amount that can be drawn from the Scotland Reserve, providing some greater flexibility to handle funding volatility.

Borrowing and reserve limits will grow in line with inflation and will therefore be maintained in real terms.

Deputy First Minister Shona Robison said:

“This is a finely balanced agreement that gives us some extra flexibility to deal with unexpected shocks, against a background of continuing widespread concern about the sustainability of UK public finances and while it is a narrower review than we would have liked, I am grateful to the Chief Secretary to the Treasury for reaching this deal.

“As I set out in the Medium-Term Financial Strategy, we are committed to tackling poverty, building a fair, green and growing economy, and improving our public services to make them fit for the needs of future generations.

“We still face a profoundly challenging situation and will need to make tough choices in the context of a poorly performing UK economy and the constraints of devolution, to ensure finances remain sustainable.”

Background

The Fiscal Framework Agreement

Joint communique with His Majesty’s Treasury

The Fiscal Framework sets out the Scottish Government’s financial arrangements including how its UK Government funding is calculated. It also gives the power to borrow money to handle the tax and social security reconciliations, through which the Budget is adjusted to correct errors in forecasting.

The Fiscal Framework was agreed between the Scottish and UK Governments in 2016, following recommendations made by the Smith Commission – a cross-party group who produced a report on further devolution in Scotland. The original agreement states that a review of the Fiscal Framework would take place after a parliament’s worth of experience to consider how well the agreement was working and whether any changes needed to be made.

The 2016 agreement introduced annual adjustments to the funding received from the UK Government – known as the Block Grant – to take into account the devolution of new taxes and social security expenditure to Scotland. It was agreed at the time that the Indexed Per Capita (IPC) method would be used until another solution was agreed.

An independent report which considered various methods of calculation and how they met the principles set out by the Smith Commission was jointly commissioned with the UK Government in 2022. The Scottish Government has also published its response to the call for evidence which took place ahead of the independent report.

The Scotland Reserve allows the Scottish Government to transfer funds between financial years. The Scottish Government also has the ability to add to the Reserve each year, should there be any money left over at the end of a financial year, which can then be used in subsequent years. There was previously a limit to how much of these funds could be used each year; removal of these limits allows for greater flexibility when using in the future.

The Scottish Government’s Medium-Term Financial Strategy

The press release issued by the Scottish Government on 2 August 2023.

The very best of cultural talent from Scotland will be under the spotlight this month as Edinburgh welcomes visitors from home and abroad to its world-class summer arts festivals.

Six of the festivals have received support from the Scottish Government’s Expo Fund to commission new work, some of which will tour internationally following festival performances. Under the Made in Scotland banner there are 18 funded shows this year featuring an exciting mix of theatre, music and dance commissions and performances.

In addition, the Platforms for Creative Excellence (PLACE) programme – jointly funded by the Scottish Government and the City of Edinburgh Council – focuses on programme innovation, creative development, and community.

Culture Secretary Angus Robertson said:

“Scotland has a wealth of phenomenally talented artists and the Edinburgh festivals provide a fantastic platform for them to reach a much wider audience.

“Expo and PLACE funding have not only helped to raise the profile of Scottish artists but contributed to a more vibrant and diverse arts scene both at home and internationally.

“There is something for everyone across the summer festivals and I hope people from home and abroad, whether they’re taking part in events or watching performances will enjoy this fantastic celebration of culture.”

Festivals Edinburgh chair Dr Simon Gage said:

“We warmly welcome this sustained support from the Scottish Government for our festivals and the people who make them happen. This is crucial in allowing us to deliver unparalleled cultural, social and economic benefits that enhance lives at home and Scotland’s profile around the world.”

Background

Since it was set up in 2008, the Expo cohort has received £32 million. Within the first ten years, the fund had supported the commissioning of more than 550 new works of art, music and theatre.

Recipients awarded a share of the £1.8 million Expo Fund for 2023-24 include Edinburgh Art Festival (£130,000), Edinburgh Festival Fringe Society (£550,000), Edinburgh International Book Festival (£85,000), Edinburgh International Festival (£100,000), Edinburgh International Film Festival (£59,000) and Edinburgh Jazz & Blues Festival (£100,000).

The PLACE Fund was set up five years ago to provide £1 million each year over five years to the Edinburgh festivals.

The press release issued by the Scottish Government on 1 August 2023.

Owners of short-term let properties are being urged to apply for a licence under Scotland’s short-term licensing scheme before the 1 October 2023 deadline.

Short-term let hosts must apply for a licence with their relevant local authority before the deadline. Anyone who operated a short-term let before 1 October 2022 can still accept bookings and guests until an application is determined, but must apply before the 1 October 2023 deadline. Owners who started operations after 1 October 2022 cannot begin trading until they receive their licence.

Hosts must apply for a licence with the local authority their property is located and are being urged to check local criteria before making an application.

Local councils’ licensing schemes are in operation across Scotland and many short-term let hosts have already obtained licences.

Housing Minister Paul McLennan said:

“Short-term let accommodation plays an important role in Scotland’s economy, supporting our tourism and hospitality sector and allowing tourists and holiday goers somewhere to take them closer to the best that Scotland can offer.

“However, it is also important that there is appropriate regulation in place to ensure the safety of guests, and so that local authorities can make decisions that are right for their local areas. That is why the Scottish Government has introduced the short-term lets licensing scheme.

“I would like to thank those who have already signed up to the scheme, bringing assurances to tourists that their safety is paramount and that they have met local guidelines.

“Visitors coming to Scotland can already expect to see the benefits of properties being licensed and meeting specific standards. Meanwhile, the thousands of short-term let operators who provide a quality service can have the assurance that would-be competitors have to meet licensing standards as well.

“There is only two months to go until the 1 October deadline and so I would urge anyone who owns short-term let accommodation and has yet to apply to do so as soon as possible to ensure you can still take bookings and welcome guests from far and wide.”

Short Stay St Andrews Director Jordan Mitchell said:

“As the largest holiday letting agency in St Andrews and the East Neuk, the initial thought of an application process for short-term letting our 130+ managed properties was a daunting one.

“However, the application process has been plain sailing once we had all the required safety certification in place.

“Fife Council has been extremely supportive in its quest to process the applications despite the extra pressure on its systems.

“I can only recommend applying as soon as possible to give your business plenty of time to adjust to the new Scottish Government requirements.”

Background

Owners have until 1 October 2023 to apply for a short-term lets licence, with local authorities required to process applications by 1 October 2024.

Apply for a short-term let licence:

gov.scot/shorttermlets