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Category: Member Benefits

Temporary Change to Fit Note Requirement

Posted on by Fiona Campbell

It has been announced that between 10 December 2021 and 26 January 2022 employers cannot ask employees to go to their doctor for proof of sickness until the absence has lasted for 28 days or more (the requirement to self-certificate remains in place for that time).

It has also been made clear that SSP cannot be withheld due to late medical evidence.

This change is in light of the exceptional pressure placed on GPs in managing the government booster rollout.

This is a significant change from the usual requirement that requires a medical certificate to be provided after 7 days of absence, and will be difficult to manage for many employers.

Employers should be careful to make it clear to staff that this is a temporary change only, and not a permanent change to the sickness absence notification procedure.

Whilst employers cannot ask for proof of sickness for non-Covid related absences, it remains possible to ask for proof of a positive test or isolation request for those absences that are Covid related.

Employers may be concerned that employees will use this change to their advantage, and claim sickness for longer periods than necessary. If not already in place, it is highly recommended to have a thorough return to work process in which the sickness absence is discussed in detail and documented to assess for future patterns and possible evidence of inappropriate use of the sickness procedure.

[Source HR-Inform]

 

Budget Announcement: Impact on Non-Domestic Rates

Posted on by Fiona Campbell

Following the publication of the Scottish Budget 2022-23 on 9 December 2021, the following non-domestic rates measures were announced:

  • There will be a below-inflation increase in the Basic Property Rate (the poundage) from 49p to 49.8p.
  • Properties in the retail, hospitality and leisure sectors will be eligible for 50% rates relief for the first three months of 2022-23, capped at £27,500 per ratepayer.
  • The Business Growth Accelerator relief will be expanded by making increases in rateable value due to the installation of solar panels a qualifying improvement eligible for relief.
  • Enterprise Areas relief will be extended by one year to 31 March 2023.

The Budget will continue to fund the following reliefs which are set annually:

  • Small Business Bonus Scheme relief, which has lifted over 111,000 properties out of rates altogether as at 1 June 2021.
  • Transitional Relief, which caps annual rates bill increases at 12.5% for Aberdeen City and Aberdeenshire offices and for all but the very largest hospitality properties across Scotland

Scottish Government Draft Budget

Posted on by Fiona Campbell

Policy Context

  • The Cabinet Secretary for Finance and Economy Kate Forbes set out the first Scottish Government Budget of the current parliamentary term, following on from the UK Government’s Budget back in October, and amidst challenging economic circumstances.[1][2]
  • This was Forbes’ third budget and she framed it as one of “choices”. However, while there are difficulties facing public services due to the pandemic, the Scottish Government does have more resources at its disposal through record block grant funding from HM Treasury. Indeed, to meet its policy plans, choices will have to be made due to hefty health and social care spending commitments, as well as the interventions necessary to make net zero targets a reality.
  • The first budget of the SNP-Scottish Green government, and there was a strong environmental thread running through it, with Forbes set out three main themes underpinning her spending plans: reducing inequalities, supporting economic recovery, and tackling climate change.
  • The Cabinet Secretary pointed to Brexit, the UK Government’s financial settlement, and lack of full economic powers as factors hindering her plans, noting that she would have liked to have gone further in certain areas. However, the Budget did contain a range of bold spending pledges.

Key Announcements

Some of the key announcements from the Budget are as follows:

Income Tax/Council Tax

  • The Starter and Basic Rate bands will increase by CPI, and the Higher and Top Rate thresholds will remain frozen in cash terms, raising an additional £106m in 2022-23.
  • The Council Tax freeze will end next year as local authorities will be granted flexibility over council tax rates, the first time this has happened since 2007.

Support for Business and the Economy

  • The Scottish Government will continue to offer lowest Non-Domestic Rates poundage in the UK, as well as ongoing rates relief for the retail, hospitality and leisure sectors, at 50% relief for the first three months of 2022-23, capped at £27,500 per ratepayer.
  • They will continue the Small Business Bonus Scheme, expand the Business Growth Accelerator relief, and extend Enterprise Areas Relief until March 2023.
  • Provide £205.9m towards capitalisation for the Scottish National Investment Bank – helping it deliver against its missions of supporting Scotland’s transition to Net Zero.

Housing

  • The Budget provides £831m for affordable housing, progressing the government’s commitment to deliver 110,000 affordable, energy efficient homes across the next decade.

Tourism

  • £370.5m to support enterprise agencies and £49.2 million for VisitScotland.
  • The Scottish Government will also resume work on the Visitor Levy proposal.

Self-Catering

  • The Budget notes the following: “recognising the impact of COVID-19, the Scottish Government chose last year to delay the implementation of the requirement that self-catering properties be let for 70 days in order to be classed as non-domestic. We will lay legislation for 2022-23 to deliver this anti-avoidance measure, which has been recommended by the independent Barclay Review of Non-Domestic Rates in order to tackle a known potential loophole for second homes.”

Opposition Response

  • The Shadow Cabinet Secretary for Finance and Economy Liz Smith led the response for the Scottish Conservatives and criticised Forbes for ignoring the level of grant funding from the UK Government. She added that the Scottish Government should have extended business rates relief and challenged them on the lack of commitment to structural reforms and investment in skills and digital infrastructure.
  • Prior to the Budget, Scottish Labour’s attack lines had accidentally made their way into the public domain. Nonetheless, Daniel Johnson soldiered on and argued that the Scottish Government’s plans did not go far enough in terms of child payments and pay for care workers, noting that block grant funding enabled them to go further.
  • Alex Cole-Hamilton of the Scottish Lib Dems criticised the Scottish Government’s pay policy for public sector workers such as teachers and social care workers, and also appealed for extra funding for long Covid care.

Next Steps

  • The Budget will now pass to committee level – where amendments and changes can be made – before going to a vote in plenary of all MSPs in February 2022.
  • However, unlike in the previous parliamentary session where the SNP Scottish Government was a minority administration and relied on deals with opposition parties, due to the Cooperation Agreement with the Scottish Greens, the final vote is a formality.

[1] The Budget in full can be accessed here: https://www.gov.scot/publications/scottish-budget-2022-23/documents/

[2] The statement from the Cabinet Secretary for Finance and Economy is available here: https://www.gov.scot/publications/budget-statement-2022-23/