The UK Government has taken the latest step toward ‘levelling up’ for every part of Scotland by pledging £40 million for the Falkirk Growth Deal – this will boost investment, create new jobs and drive forward economic growth across the area.

The deal will see funding directed towards potential projects to boost the local economy by creating skilled jobs and investing in infrastructure improvements to support sustainable travel, tourism and energy.

It will also help support the region’s strong chemical manufacturing industry at Grangemouth, securing local jobs and driving forward innovation as we move to a low carbon economy.

The Falkirk growth deal is the 11th UK deal in Scotland. To date, the deals have set out support for numerous sectors across Scotland, including:

• north-east Scotland looking to become a global centre for expertise on decommissioning and sustainability
• the Borders region boosting tourism through the mountain biking centre
• Inverness Castle being transformed
• robotics and forensics attracting cutting-edge tech businesses to Scotland’s universities
• Scotland’s engineering legacy being reborn through new advanced manufacturing and aerospace clusters

Scottish Secretary Alister Jack said:

We know that City Region and Growth Deals will be vital to Scotland’s economic recovery from coronavirus. The Falkirk Growth Deal will enable the regional economy to innovate, boosting investment and providing sustainable, high-quality jobs.

The pandemic has called for extraordinary economic measures, and the UK Government has done everything we can to support jobs and businesses. We have supported 900,000 jobs in Scotland with our furlough and self-employed schemes, including 18,500 in Falkirk.

This new deal brings the UK Government’s investment in growth deals across Scotland to £1.46 billion.

We look forward to working with our partners in Falkirk and the devolved administration in Scotland to develop innovative and effective proposals.

Background

The UK Government’s Coronavirus Retention Scheme is supporting 15,500 jobs in Falkirk and the Self-Employment Income Support Scheme has 3,000 recipients with payments worth £8.9 million issued locally.

This new award will bring the total pay rise over the last 3 years to 7%, and increase starting salaries for an officer by £545; £634 for a Corporal and £400 for a newly trained soldier, sailor or air man or woman.

As a result, the basic pay for other ranks on completion of their initial training will now be £20,400 and the average salary for a Corporal will be £32,797.

Personnel will see the 2020/21 rise implemented in their September pay packets and backdated to April 2020. The award comes in addition to the non-contributory pension and access to incremental pay progression.

Defence Secretary Ben Wallace said:

Our people do vital work every day to protect this country and I’m pleased armed forces personnel will receive a recommended 2% pay rise this year.

Whether through serving abroad or supporting public services during the coronavirus pandemic at home, this pay increase is a recognition of their hard work and dedication.

Over the past 3 years, service personnel have received pay rises totalling 7% which has helped defence attract and retain the best people for the armed forces.

The Armed Forces’ Pay Review Body’s recommendations on changes relating to allowances, recruitment and retention payments, bespoke pay arrangements, reservist bounties and food and accommodation charges have also been accepted and will be backdated to April, where applicable.

The review will set UK Government departments’ resource budgets for the years 2021/22 to 2023/24 and capital budgets for the years 2021/22 until 2024/25, and devolved administrations’ block grants for the same period.

The CSR will prioritise:

• strengthening the UK’s economic recovery from COVID-19 by prioritising jobs and skills
• levelling up economic opportunity across all nations and regions of the country by investing in infrastructure, innovation and people – thus closing the gap with our competitors by spreading opportunity, maximising productivity and improving the value add of each hour worked
• improving outcomes in public services, including supporting the NHS and taking steps to cut crime and ensure every young person receives a superb education
• making the UK a scientific superpower, including leading in the development of technologies that will support the government’s ambition to reach net zero carbon emissions by 2050
• strengthening the UK’s place in the world
• improving the management and delivery of our commitments, ensuring that all departments have the appropriate structures and processes in place to deliver their outcomes and commitments on time and within budget

Due to unprecedented uncertainty, the Chancellor did not fix a set spending envelope, but confirmed that departments’ resource and capital budgets would grow above inflation and that the government will deliver on the commitments made at Budget to level up and invest in the priorities of the British people.

Given the impact COVID-19 has had on the economy, the Chancellor was clear there will need be tough choices in other areas of spending at the review. As part of their preparations for the CSR departments have been asked to identify opportunities to reprioritise and deliver savings. Departments will also be required to fulfil a series of conditions in their returns, including providing evidence they are delivering the government’s priorities and focussing on delivery.

The Chancellor of the Exchequer, Rishi Sunak, said:

The first phase of our economic response to coronavirus was about safeguarding employment as far as possible. Our goal in the second phase is to protect, create and support jobs and we set out our plan to achieve this two weeks ago.

The Comprehensive Spending Review is our opportunity to deliver on the third phase of our recovery plan – where we will honour the commitments made in the March Budget to rebuild, level up and invest in people and places spreading opportunities more evenly across the nation.

To help frame the government’s approach at the Spending Review, an interim report of the Net Zero Review will be published this Autumn, followed by a final report in the Spring.

HMT has opened a process for the Comprehensive Spending Review to allow external stakeholders to submit representations.

Further information

• The Chancellor’s letter outlined that in the interest of fairness we must exercise restraint in future public sector pay awards, ensuring that across this year and the spending review period, public sector pay levels retain parity with the private sector.
• The date for the conclusion of the review will be confirmed in due course.
• Representations to the CSR can be submitted here.

Passengers travelling in taxis and private hire vehicles (PHVs), including app-based services, will be kept safer under tough new licensing standards introduced by the government, Transport Secretary Grant Shapps announced today (21 July 2020).

The new Statutory Taxi and Private Hire Vehicle Standards which local authorities will be expected to implement are designed to improve consistency in the licensing system, reducing the risk of harm posed to children and vulnerable passengers in the process. It follows historic and serious cases of taxi and PHV drivers abusing their position of trust.

Criminal record checks for drivers every 6 months form a key part of the standards, as does safeguarding training to help drivers identify and respond to passengers that may be being abused or exploited. A recommendation for licensing authorities to consider whether the use of CCTV would be beneficial or proportionate in their areas is also included, which sets out that potential privacy issues must be taken into account.

Transport Secretary Grant Shapps said:

We know the majority of drivers provide an important and safe service for communities, but in light of appalling incidents in places like Rochdale, Oxford, Newcastle and Rotherham, more must be done to protect passengers from those who abuse their position of trust.

That’s why we’re looking to licensing authorities to enforce these rigorous new standards, ensuring drivers are fit to transport passengers in a safe environment and to stop those who aren’t.

We expect all licensing authorities to implement the standards and won’t hesitate to introduce legislation if they don’t fulfil their responsibilities to keep the public safe.

Following extensive consultation across government as well as with industry and regulators, the strengthened measures will mean all drivers applying for a licence should now be required to disclose if they hold or have previously held a licence in another area. Local authorities will also now have to have robust reporting systems in place to make sure passengers feel comfortable reporting incidents and or suspicious behaviour. This follows the Casey Report which found there was inadequate investigation of some complaints in Rotherham.

Licensing authorities will be expected to fully implement these measures as soon as possible. The department will closely monitor progress, work with authorities not meeting their responsibilities and look to introduce legislation if licensing authorities fail to adopt the standards and update their operations.