Briefing: The Scottish Government’s Programme for Government, 2021-22

Introduction

  • The First Minister Nicola Sturgeon set out the Scottish Government’s legislative programme for the year ahead[1], entitled A fairer, greener Scotland, the first since the SNP Scottish Government reached a Cooperation Agreement with the Scottish Green Party.
  • While three Bills have already been introduced to the Scottish Parliament following the election back in May, the Scottish Government intend to introduce a further 12 Bills (including the annual Budget Bill) over the course of the parliamentary year.
  • The Programme for Government also includes a number of Bills, consultations, spending commitments, and regulations which will be taken forward later in the parliamentary session.
  • The First Minister outlined some major public service reforms, including the establishment of a National Care Service and support for NHS recovery, but also funds for increased housebuilding, as well as addressing the climate crisis through becoming a net zero nation. However, many of these were widely trailed or mentioned during her speech last week when welcoming the Scottish Greens into government.
  • While noting that her immediate priority was to lead Scotland towards Covid recovery, the First Minister reaffirmed her commitment to hold a second independence referendum, Covid-permitting, before 2023 and confirmed that the government would restart work on a detailed prospectus for independence.
  • In response, the opposition criticised the focus on independence above recovery as well as the paucity of ambition contained in the Programme for Government.

Bills and Headline Announcements

The Scottish Government will introduce the following 12 Bills in 2021/22:

Annual Budget (No.1) Bill Gender Recognition Bill
Bail and Release from Custody Bill Good Food Nation Bill
Coronavirus (Compensation for Self-isolation) Bill Miners’ Strike Pardon Bill
COVID Recovery Bill Moveable Transactions Bill
Fireworks and Pyrotechnics Bill National Care Service Bill
Fox Control Bill Non-Domestic Rates COVID-19 Appeals Bill

Relevant Programme for Government Announcements:

Short-Term Let Regulation

  • There was no mention of short-term let regulation in the Programme for Government but the Scottish Government have previously announced that the laying of their licensing regulations before parliament would be delayed until November 2021.

 Tourism

  • The document notes that the “tourism sector, along with the hospitality sector, is globally recognised as having been one of the hardest hit by the pandemic. Effective recovery will be vital in ensuring the sector can be a force for good in the local and national economy – through fair work, sustainable jobs, and value for communities – and place Scotland as a world leader in responsible tourism.”
  • The Scottish Government will support the recommendations of the Tourism Recovery Taskforce, including a £25 million portfolio of projects in 2021‑22, and consider the best approach to future years.
  • They will maintain their investment of over £6m annually in the Rural Tourism Infrastructure Fund.
  • Develop Scotland’s tourism infrastructure, in both urban and rural areas, investing £10m in initiatives like the Inverness Castle Project and Lossiemouth East Beach footbridge, and improving rural hotel facilities
  • Refresh and reinvigorate successful Brand Scotland activity, building on existing campaign activity, to enhance Scotland’s international reputation and the country’s position as an attractive place to live, work, study, visit and do business.
  • Review Air Passenger Duty rates and bands ahead of the introduction of the devolved Air Departure Tax to ensure that the policy aligns with climate change goals.
  • There was no mention of a tourist tax or levy in the Programme for Government.

Housing

  • Deliver 110,000 energy efficient, affordable homes by 2032 –– at least 70% of which will be in the social rented sector and 10% in remote, rural and island communities.
  • Develop a Remote, Rural & Islands Housing action plan, to meet the housing needs of, and retain and attract people to, those communities, backed by at least £45m as part of the overall affordable housing supply programme funding in this parliamentary session

Business Support

  • Maintain the Small Business Bonus Scheme for the lifetime of the Parliament.
  • Maintain the Business Growth Accelerator (BGA) and Fresh Start Reliefs for the duration of this Parliament.
  • Extend the 100% NDR relief for properties in the retail, leisure, aviation and hospitality sectors for all of 2021-22.
  • Introduce a Non-Domestic Rates COVID-19 Appeals Bill to prevent the inappropriate use of material change of circumstances provisions in the non‑domestic rates legislation in relation to COVID‑19, or COVID‑19 restrictions.

More generally, health, social care, inequalities, and the environment appear to be the main thrust of the prospectus, with the economy further down the list of priorities, partially reflecting the influence of the Scottish Greens in the Cooperation Agreement.

Some of the main headline announcements in the Programme for Government include:

  • Launching a new NHS Recovery Plan backed by more than £1bn of targeted investment to address backlogs and provide £10bn for the NHS estate;
  • Consult on the creation of a National Care Service;
  • Remove dental charges for all;
  • Supporting a world‑changing agreement at COP26 and implementing the first Just Transition Plan for the energy sector;
  • Bringing about a “green transport revolution” through decarbonising public transport and providing free nationwide bus travel for those under 22;
  • Providing a new system of “wraparound” childcare before and after school and during the holidays;
  • Develop work on a Minimum Income Guarantee and a pilot to introduce a four-day working week;
  • Provide £1bn of targeted investment for Covid-19 recovery;
  • Begin work on a National Infrastructure Company;
  • Launch a 10-year National Strategy for Economic Transformation in the autumn, alongside a new National Challenge Competition which will provide up to £50m to projects with the greatest potential to transform Scotland’s economy; and
  • Provide £3.5bn to provide additional affordable homes, 70% for social rent.

Opposition Response

  • The Scottish Conservatives Douglas Ross accused the First Minister of placing independence above jobs and Covid recovery.
  • Anas Sarwar of Scottish Labour attacked the lack of boldness and ambition in the Scottish Government’s plans, calling it a “tired and rehashed programme.”
  • Lib Dem Leader Alex Cole-Hamilton chose to focus on mental health waiting times, seeking answers as to how the Scottish Government intended to clear the backlog.

[1] The Programme for Government for 2021-22 can be viewed in full here: https://www.gov.scot/binaries/content/documents/govscot/publications/strategy-plan/2021/09/fairer-greener-scotland-programme-government-2021-22/documents/fairer-greener-scotland-programme-government-2021-22/fairer-greener-scotland-programme-government-2021-22/govscot%3Adocument/fairer-greener-scotland-programme-government-2021-22.pdf

Investing in the tourism sector

Supporting businesses to recover.

A multi-million pound package of support has been invested to help tourism and hospitality businesses recover from the coronavirus (COVID-19) pandemic.

Delivered in the first 100 days of the new Scottish Government, the support is part of a wider £129 million investment in the sector which has been particularly hard hit by the pandemic. The package of support includes:

  • £4 million for VisitScotland to deliver the Days Out scheme which will help support the tourism sector throughout the year
  • £3 million for domestic marketing highlighting Scotland as an attractive year round destination
  • £1.4 million for holiday vouchers for carers and low income families

More than 60 jobs, including 47 seasonal rangers, have also been funded to support rural areas cope with higher than usual visitor numbers due to the rise in staycations this summer.

Economy Secretary Kate Forbes said:

The past year has been extremely difficult for many businesses, especially in our prized tourism and hospitality sector. As well as being impacted by the necessary public health restrictions to curtail the spread of the virus, Brexit has also caused problems, particularly regarding staffing and supplies.

“The Scottish Government has worked closely with industry at every stage of the pandemic to deliver where we can on its asks, including 100% non-domestic rates relief, specific restart grants and funding to help alleviate staffing concerns.

As we begin to carefully emerge and recover from the pandemic, we must work together to seize Scotland’s potential and build an economy for everyone by delivering greater, greener and fairer prosperity. Our tourism and hospitality sector is key to the Scottish economy and we will continue to listen carefully to the support it needs to bounce back from the pandemic.

Read more.

Scotland’s Economy: An update on Covid baseline measures for business

“Ms Forbes, The Cabinet Secretary for Finance and the Economy has just issued this statement online, highlighting the need for everyone to remain focused on current baseline measures and their importance to the collective effort to supress the virus.

“The guidance that remains in place around baseline measures and good practice is highlighted here:

Coronavirus (COVID-19): tourism and hospitality sector – gov.scot (www.gov.scot)

“As you will all be aware, we remain in a delicate place with high rates of infection across the country, so we need to collectively focus on maximising adherence on current baseline measures.”

Since the start of the pandemic, businesses have made huge changes and sacrifices to protect public health. I’m incredibly grateful to the business community and would like to thank everyone who has spent time and effort to make their businesses as safe as possible for customers and staff. Your contribution has been vital in helping us control the spread of the virus.

We know these necessary modifications have often had a detrimental impact on the economic activity of businesses so I’m pleased our economy is now able to open fully as we move beyond Level 0.

However, the virus has not disappeared and case numbers have been increasing. That is why it is important we keep some precautionary measures in place to allow for a gradual and cautious approach, particularly as we move into the winter when more people will be interacting indoors. This will help to reduce the risk of outbreaks and allow all sectors of the economy to stay open.

Businesses have shown great leadership throughout the pandemic in encouraging adherence with mitigations and we would ask that this continues at this fragile time. I would urge customers to follow the guidance too, to support the businesses they use.

The most important step we can take to control the virus is to get vaccinated and we would encourage all who have not yet been vaccinated to do so.

Alongside this we urge businesses to continue to communicate and work with their employees to implement measures which will help us supress the virus:

  1. wear face coverings – this is legally required in most indoor public places including retail, restaurants, cafes, bars, workplaces and on public transport for staff and customers
  2. support staff to self-isolate if they are asked to do so by the NHS
  3. regular testing of staff to help break the chains of transmission
  4.  support staff to work from home some of the time to reduce the ability of the virus to transmit
  5. keep your premises as well ventilated as possible

Guidance for safer businesses and workplaces can be found on the Scottish Government website, including a range of further precautionary measures and good practice which can be used in workplaces to reduce the risk of outbreaks.

By working together, we can ensure businesses remain open and our economy recovers from the effects of the pandemic.

Kate Forbes
Cabinet Secretary for Finance and the Economy

During her COVID-19 media briefing today, First Minister Nicola Sturgeon covered the follow (27/08/21):

  • The FM reported that 6,835 new cases of COVID-19 had been registered and that 479 people were in hospital, with 47 in intensive care. She also reported that there had been 4 additional deaths, bringing the total to 8,103. On vaccines, she noted that 4,085,552 people had received their first dose of the vaccine and 3,587,145 second doses had been administered.
  • The FM noted that this was the sharpest rise in new cases since the pandemic began and that it was a cause for concern. However, she also observed that there had been a record number of tests and that vaccines were having a positive effect. However, she reiterated her claim that the situation was “fragile”.
  • The FM confirmed that she was not considering a “circuit breaker lockdown” at the moment.
  • The FM reiterated her calls for businesses and individuals to observe the guidance in place but noted that she could not rule out further measures in future.
  • In the following session of questions, STV asked what the tipping point for further rules being imposed would be. The FM responded by saying that it was not a binary decision and that the government was monitoring the situation closely. ITV Border raised the case of the South of Scotland, which had seen people turned away at hospitals. The FM said that she was aware of the situation and encouraged everyone in the area to do what they could to alleviate the pressure on local services. The Herald and the Mail both raised the subject of vaccine passports. The FM noted that there were ethical concerns to be considered but that the Scottish Government wouldn’t rule any further action.