_edited.jpg)
The Scottish Budget was in many ways quite a mixed bag. I am pleased that the government has listened to the Scottish Liberal Democrats and included spending on social care, affordable homes, insulation, winter fuel payments, additional support needs, ferries, GPs, dentists, long covid, mental health, and vital capital expenditure such as Edinburgh’s Eye Pavilion and the Belford Hospital. This does demonstrate how the electoral system at Holyrood requires the governing party to engage with opposition parties and their priorities as part of the process. On the other hand, there a number of changes that are less welcome. The changes to rates relief, an inflationary increase to the Intermediate and Higher Property Rates and, despite the reversal, the impact of last year’s cut to the Affordable Homes Scheme is having a significant impact.
Last week I met with small businesses across North East Fife to mark Small Businesses Saturday. I was delighted to meet Alana, owner of East Nook Studios, which was named as one of the top one hundred small businesses in the UK! I also visited Penny & Black in Lundin Links, Khee in Leven and lots of independent artists and designers at the Pittenweem Arts Festival Fair as I try and get things sorted for Christmas. Engaging with businesses has included those concerned by the impact that the changes to rates relief will have on many in the hospitality sector, which has not seen the same support as other parts of the UK in recent months. As part of the Budget, the Scottish Government announced 40% business rates relief for hospitality businesses paying the Basic Property Rate. This means businesses with a rateable value up to £51,000 will be eligible for this relief. But many will not. Those businesses will face both increased employer National Insurance Contributions from the UK Budget and the impact of the increase to the Intermediate and Higher Property Rates. These concerns have been echoed by small business owners across all sectors.
Similarly, while I welcome that the funding for the Affordable Homes Scheme is returning to its original level, this does not immediately reverse the damage of the last budgets’ cut, as valuable time has been lost. Acquisition opportunities have been missed, limited resources have been redistributed away from new builds, and long term building targets have been reduced. Although I hope the increased budget will help social housing providers, they are starting from a much more difficult position than 2 years ago. I know from my constituent casework how difficult the current social housing situation is, and a recent FOI by my team showed that of those expressing an interest in a move, one constituent had been in that pool for 17 years!
If you find yourself struggling as a result of the changes, or would like some support, please get in touch with me at wendy.chamberlain.mp@parliament.uk. Plus, this Christmas, if you can, support your local businesses – shop local, eat local and support local!