Scotland Office

I have been working closely with my cabinet colleagues to achieve our clean energy Mission.

Scotland has a huge role to play, not least through GB Energy - headquartered in Aberdeen and backed with £8.3bn. It will work to deliver clean energy, lower bills, and bring the jobs of the future to all parts of Scotland.

This is on top of the largest ever Contracts for Difference round and the National Wealth Fund, which will mobilise billions into our world-leading clean energy industries.

I have been working closely with my cabinet colleagues to achieve our clean energy Mission.

Scotland has a huge role to play, not least through GB Energy - headquartered in Aberdeen and backed with £8.3bn. It will work to deliver clean energy, lower bills, and bring the jobs of the future to all parts of Scotland.

This is on top of the largest ever Contracts for Difference round and the National Wealth Fund, which will mobilise billions into our world-leading clean energy industries.

Scotland’s defence industry is vital to the UK’s security and economy. The newly published Defence Industrial Strategy is clear that this government will prioritise UK-based defence firms, including those in Scotland.

As part of Brand Scotland, I have been promoting the Scottish defence industry in Norway and in South-East Asia, where I visited HMS Spey, constructed by BAE Systems on the Clyde.

I welcome the announcement by BAE Systems that they will be investing £1 billion in education and skills across the UK, which will lead to more than 200 jobs in Glasgow.

This Government is supporting pensioners through increasing pension credit uptake and protecting the triple lock. This means an increase in the state pension for a million Scottish pensioners of up to £470 next year, on top of up to £900 this year.

This year marks twenty five years since the previous Labour Government delivered devolution in Scotland, one of its proudest achievements. I understand the SNP Government plans to use some of their record budget settlement to make different choices on this devolved policy area - that’s devolution in action. The Honourable Gentleman may wish to ask himself how he can justify voting against Scotland getting that record settlement.

The identification of buildings requiring cladding remediation work in Scotland is a devolved matter, and the Scottish Government has recently introduced its own Cladding Remediation Programme for Scotland.

How the Scottish Government chooses to use its block grant funding, and any additional funding arising from Barnett consequentials is a matter for the Scottish Government.

In the recent Budget, the Chancellor announced that the Scottish Government will be provided with a £47.7 billion settlement in 2025/26 – the largest in real terms in the history of devolution. This includes a £3.4 billion top-up through the Barnett formula, with £2.8 billion for day-to-day spending and £610 million for capital investment.

Scotland’s world class offshore oil and gas workers should be at the forefront of the race to clean power.

The UK Government is partnering with the Scottish Government, Offshore Energies UK, Renewable UK, OPITO, Global Wind Organisation (GWO) and other key industry stakeholders to deliver a skills passport for the clean energy transition in Scotland. This will help workers transition from carbon-intensive industries to clean energy sectors.

Our goal to become a clean energy superpower will create hundreds of thousands of new jobs, many of which I am pleased to say will be based in Scotland. With GB Energy also headquartered in Aberdeen, Scotland and the Northeast will be at the heart of the UK energy sector.

Scotland’s world class offshore oil and gas workers should be at the forefront of the race to clean power.

The UK Government is partnering with the Scottish Government to deliver a skills passport for oil and gas workers as part of the clean energy transition in Scotland. This will be delivered in collaboration with key industry stakeholders, including Offshore Energies UK, Renewable UK, OPITO, Global Wind Organisation (GWO).

Research from Offshore Energies UK shows that 90% of oil and gas workers have transferable skills for offshore renewable jobs. The development of this passport will help workers utilise their skills to play a vital role in the transition from carbon-intensive industries to clean energy sectors for workers across all regions of Scotland.

To achieve the UK Government’s Mission of becoming a clean energy superpower by 2030, the UK Government is establishing Great British Energy, an operationally independent company investing in and driving projects forward across all parts of the UK. The UK government will capitalise Great British Energy with £8.3billion of new money across this Parliament, with Scotland well-placed to benefit in terms of investment and the creation of high-quality jobs. This comes in addition to the record-breaking Contracts for Difference Allocation Round 6, which has committed £1.555 billion for investment in clean energy projects, including numerous offshore wind projects.

In her recent budget, the Chancellor announced a highest-ever £20.4bn investment in UK R&D to drive economic growth, and our clean energy and other missions.

Scotland Office ministers have regular meetings with the Deputy First Minister, where we discuss local economic growth as one of the key missions of this Government. Our two Governments effectively co-manage the successful Glasgow City Region Growth deal, which includes funding for infrastructure.

Both local and national rail and bus routes in Scotland are devolved, however, and therefore the responsibility of the Scottish Government.

The UK Government is committed to supporting those who have experienced the loss of a child through a range of reserved measures, including Statutory Parental Bereavement Pay and Leave.

My officials have regular discussions with their Scottish Government counterparts on a wide range of policy matters. Provision of social care for bereaved families is a devolved matter and my department stands ready to assist the Scottish Government to ensure this care is accessible to those who need it.

My officials have had discussions with the Scottish Borders Council and with officials from both the Department for Transport and the Scottish Government on the funding of the feasibility study for the extension of the Borders Railway.

The Department for Transport will continue to work with the Scotland Office, the Scottish Government and the Scottish Borders Council on the next stage of development for this scheme as part of the Borderlands Growth Deal.

Officials from my department remain in discussion on this matter with counterparts in the Department for Transport. The Department for Transport will continue to work with the Scotland Office, the Scottish Government and the Scottish Borders Council on the next stage of development for this scheme as part of the Borderlands Growth Deal.

I have regular meetings with the Deputy First Minister, where we discuss local economic growth as one of the key missions of this Government.

My officials have had discussions with the Scottish Borders Council and with officials from both the Department for Transport and the Scottish Government on the funding of the feasibility study for the extension of the Borders Railway as part of the Borderlands Growth Deal.

The Scottish Seafood Industry Action Group last met under the previous Government, in March 2024. This government recognises the vital role these industries play in ensuring coastal communities and the wider Scottish economy thrive. Since taking up office in July 2024, Scotland Office Ministers have met with Salmon Scotland, the Scottish Fisherman’s Federation, Loch Long Salmon, and many others across the seafood and fisheries sectors. The UK government will continue to work closely with industry representative bodies on issues that impact the sector.

The Scottish Seafood Industry Action Group last met under the previous Government, in March 2024. This government recognises the vital role these industries play in ensuring coastal communities and the wider Scottish economy thrive. Since taking up office in July 2024, Scotland Office Ministers have met with Salmon Scotland, the Scottish Fisherman’s Federation, Loch Long Salmon, and many others across the seafood and fisheries sectors. The UK government will continue to work closely with industry representative bodies on issues that impact the sector.

The Advanced Manufacturing and Innovation District for Scotland (AMIDS) is Scotland’s home of manufacturing innovation, and forms an integral part of the £1bn UK and Scottish Government funded Glasgow City Region Deal. AMIDS is home to two world-class innovation centres - the National Manufacturing Institute Scotland and the Medicines Manufacturing Innovation Centre.

Since its establishment, AMIDS has already become home to world renowned names, including Boeing and Thermo Fisher, and with the landmark opening of the Renfrew Bridge, my department expects AMIDS to achieve even greater successes in delivering up to 10,000 new jobs across the River Clyde.

I have not, but I am aware that you have written to the Chancellor of the Exchequer on this matter in connection with infrastructure enhancements that may be required at the port of Rosyth.

This Government recognises the importance of upgrading our port infrastructure, and that is why we have created the National Wealth Fund, which will bring together key institutions and a compelling proposition for investors.

The National Wealth Fund is now open for engagement, and can be contacted via www.uknwf.org.uk.

My officials have spoken with colleagues in the Department for Transport and the Treasury on this matter and I am aware of your campaigning on this issue.

This Government recognises the importance of upgrading our port infrastructure, and that is why we have created the National Wealth Fund, which will bring together key institutions and a compelling proposition for investors.

The National Wealth Fund is now open for engagement, and can be contacted via www.uknwf.org.uk.

At Autumn Budget 2024, the government confirmed that from 1 November 2024, the Energy Profits Levy (EPL) rate would increase by 3 percentage points to 38%, the EPL investment allowance would be abolished and the EPL decarbonisation allowance rate would be adjusted to 66%. The government also confirmed an extension to the period the levy applies from 31 March 2029 until 31 March 2030. To support investment and jobs in current and future industries, the government decided to make no additional changes to the availability of capital allowances in the EPL.

The government has carefully considered the impact of the removal of the EPL’s investment allowance. HM Treasury publishes impacts in summary form for tax measures in tax information and impact notes (TIINs) alongside the Finance Bill. The summary of impacts from these changes to the EPL can be found here: https://www.gov.uk/government/publications/energy-profits-levy-reforms-2024

The UK Government recognises that oil and gas will continue to have a role in the UK’s energy mix for decades to come. Nonetheless, public and private investment must be driven towards cleaner energy, including in the north east of Scotland. Money raised from changes to the Energy Profits Levy will be used to support the transition to clean energy, enhance energy security and provide sustainable jobs for the future. 

The UK Government recognises that oil and gas will continue to have a role in the UK’s energy mix for decades to come and is committed to managing the energy transition in a way that supports jobs in existing and future industries. But we require the sector to contribute to the ambition to make the UK a clean energy superpower.

At Autumn Budget 2024, the government confirmed that from 1 November 2024, the Energy Profits Levy (EPL) rate would increase by 3 percentage points to 38%, the EPL investment allowance would be abolished and the EPL decarbonisation allowance rate would be adjusted to 66%. The government also confirmed an extension to the period the levy applies from 31 March 2029 until 31 March 2030. To support jobs in future and existing industries, the government decided to make no additional changes to the availability of capital allowances in the EPL.

The government has carefully considered the impact of the removal of the EPL’s investment allowance. HM Treasury publishes impacts in summary form for tax measures in tax information and impact notes (TIINs) alongside the Finance Bill. The summary of impacts from these changes to the EPL can be found here: https://www.gov.uk/government/publications/energy-profits-levy-reforms-2024

The UK Government recognises that oil and gas will continue to have a role in the UK’s energy mix for decades to come and is committed to managing the energy transition in a way that supports jobs in existing and future industries. But we require the sector to contribute to the ambition to make the UK a clean energy superpower.

At Autumn Budget 2024, the government confirmed that from 1 November 2024, the Energy Profits Levy (EPL) rate would increase by 3 percentage points to 38%, the EPL investment allowance would be abolished and the EPL decarbonisation allowance rate would be adjusted to 66%. The government also confirmed an extension to the period the levy applies from 31 March 2029 until 31 March 2030. To support jobs and provide certainty, the government decided to make no additional changes to the availability of capital allowances in the EPL.

The government has carefully considered the impact of the removal of the EPL’s investment allowance. HM Treasury publishes impacts in summary form for tax measures in tax information and impact notes (TIINs) alongside the Finance Bill. The summary of impacts from these changes to the EPL can be found here: https://www.gov.uk/government/publications/energy-profits-levy-reforms-2024

Food and drink is a key strength of Scotland’s, and the Scotland Office and Department for Business and Trade are working closely on a range of shared priorities to increase the value of numerous Scottish exports.

Scotch whisky exports are being championed through the Brand Scotland initiative, and I will be in Malaysia and Singapore later this month to promote our first-class food and drinks exports to growing markets in Asia.

I am proud to champion Scotland’s interests globally through Brand Scotland. I have just returned from a successful visit to Norway and will be visiting South East Asia next week to promote Scottish trade, investment, and culture. Following the announcement of £750,000 for promoting Brand Scotland internationally next year, planning is underway to ensure the programme maximises opportunities for growth in Scotland.

I meet regularly with the Scotch Whisky industry, and am pleased we can work closely on a range of shared priorities to support growth in the sector.

90% of Scotch Whisky is already exported and therefore pays no duty. Increases on duty are in line with inflation and under the previous Government, duty was increased by 10.1% following the duty review.

Despite the previous government increasing duty by 10.1%, the Scotch Whisky industry employs 11,000 people directly in Scotland, 7,000 of whom work in rural areas. In addition, the industry supports a further 42,000 jobs across the UK, 36,000 of which are based in Scotland. Furthermore, the increases in duty are in line with inflation. I am confident that the sector will continue to offer excellent employment opportunities to people in Scotland, while remaining one of our most successful exports, for years to come.

The overall alcohol package within the recent Budget balances commercial pressure on the alcohol industry with the need to raise revenue to address the £22 Billion blackhole caused by the decisions of the previous government. Increases on duty are in line with inflation and under the previous Government, duty was increased by 10.1% following the duty review.

90% of Scotch Whisky is exported, paying no duty. To provide specific support to the Scotch Whisky industry, the government will reduce fees for geographical verification.

I have had several meetings with the Scotch Whisky Association (SWA) in recent months, including during my first week in office, and am pleased to be working closely with them on a range of shared priorities.

I will be driving growth in Scotland around the world through the Brand Scotland initiative, and will work closely with the SWA to promote the UKs largest food and drink export across all four corners of the globe.

This Government inherited a £22 billion black hole in the nation’s finances. The action we are taking in this Budget restores economic stability so we can invest in the future.

The government recognises the need to protect the smallest businesses, including small restaurants, which is why we have more than doubled the Employment Allowance to £10,500, meaning more than half of businesses with NICs liabilities either gain or see no change next year.

In addition, we are making business rates in England fairer to protect the high street. The Government will introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties with rateable values less than £500,000, alongside 40% relief next year for RHL properties up to a cash cap of £110,000 per business. Business rates are devolved and the Scottish Government could support Scotland;s high streets by using some of the record budget settlement it received to match these reforms.

Also, to recognise the economic and cultural importance of pubs, and commitment to supporting smaller brewers, the government is cutting alcohol duty on draught products from February next year.

This Government inherited a £22 billion black hole in the nation’s finances. The action we are taking in this Budget restores economic stability so we can invest in the future.

The government will protect the smallest businesses by increasing the Employment Allowance to £10,500. This means that next year around 43% of UK employers will pay no employer NICs.

The Federation for Small Businesses (FSB) has called for an increase to the Employment Allowance, and for it to be indexed to the National Living Wage. We have met the FSB’s ask for the Employment Allowance to cover 4 National Living Wage employees in 2025/26.

Despite a massive £22 billion black hole in the nation’s finances that this Government inherited, the Scottish Government will receive a record £47.7 billion settlement in 2025/26 - the largest in real terms in the history of devolution.

This includes additional Barnett consequentials of £1.5 billion for 2024/25 and a further £3.4 billion for 2025/26.

On top of this, the UK Government committed to invest directly around £1.4 billion on important Scottish local growth projects. This includes Freeports, Investment Zones, long term plans for towns, Levelling Up Fund projects, Levelling Up Partnerships and a full commitment to remaining Deal projects. As well as a further £900 million of support for the expanded UK Shared Prosperity Fund in 2025/26.

Also, our new approach is making the UK inheritance tax system fairer, ensuring the wealthiest households contribute more while reflecting people’s strongly held desire to pass down their assets to children and grandchildren.

This Government inherited a £22 billion in year black hole in the nation’s finances. The action we are taking in this Budget restores economic stability so we can invest in the future.

The government recognises that people want to pass on their assets to their families. However, the government is making the inheritance tax system fairer by ensuring that wealthy estates contribute more to the public finances.

The vast majority of agricultural estates currently pay no inheritance tax, and that will continue to be the case after the reforms announced at Budget. This means that any farm, following the death of the owner, can pass on a £1 million free of inheritance tax if they leave their residence to direct descendants.

The reforms announced for agricultural property relief are only expected to affect around 500 claims at death each year from 2026-27. Almost three-quarters of estates claiming the relief are expected to be unaffected.

The recent budget saw the Scotland Office awarded 750 thousand pounds to expand its international trade activities and establish the Brand Scotland initiative.

Brand Scotland funding will support industry via trade missions, projects delivered by the overseas network, and promotional events in the UK and overseas. The Scotland Office routinely promotes Scotch Whisky at events we run overseas, for example during my visits to Norway, and South East Asia this month. Scottish exports, including whisky, will all benefit from this work.

I have had frequent discussions with the Deputy First Minister of Scotland and have been clear that immigration should not be used as an alternative to training or tackling workforce problems here at home. We value the important contribution made by workers from overseas, but we need to consider issues in the round, and work with industries to ensure they can attract the workforces they need for the future. To achieve this we are strengthening the Migration Advisory Committee, and establishing a framework for joint working with skills bodies across the UK, the Industrial Strategy Council and the Department for Work and Pensions.

We are taking a joined up-approach across government, linking migration policy and visa controls to skills and labour market policies – so immigration is not used as an alternative to training or tackling workforce problems here at home. We value the important contribution made by workers from overseas, but we need to consider issues in the round, and work with industries to ensure they can attract the workforces they need for the future. To achieve this we are strengthening the Migration Advisory Committee, and establishing a framework for joint working with skills bodies across the UK, the Industrial Strategy Council and the Department for Work and Pensions.

The UK Government recognises the substantial contribution the Scottish tourism industry makes to the UK visitor economy. We are committed to working with industry to strengthen the future of this key sector.

While tourism is devolved, we work closely with the Scottish Government and its agencies to ensure that the sector thrives. This Government will also continue to encourage tourism across the whole of Scotland through our Brand Scotland work to promote Scotland around the world.

The UK Government is committed to making Britain a clean energy superpower by 2030.

As we make the carefully phased transition to clean energy, we will build alternative opportunities for oil and gas workers - to which we’ve already committed £22bn of investment.

What’s more, we have created the National Wealth Fund to invest in our clean energy industries. I have seen first hand what great work is taking place - including just last week at Dundee Port.

The UK Government is committed to making Britain a clean energy superpower by 2030.

As we make the carefully phased transition to clean energy, we will build alternative opportunities for oil and gas workers - to which we’ve already committed £22bn of investment.

What’s more, we have created the National Wealth Fund to invest in our clean energy industries. I have seen first hand what great work is taking place - including just last week at Dundee Port.

This Government is committed to ensuring families have the best start in life.

Through the Employment Rights Bill, we will strengthen the protections for pregnant women, and new mothers returning to work.

These legislative measures aim to tackle maternity and pregnancy discrimination and avoid women leaving the workforce.

The UK Government is committed to working with local partners in the Borders to boost economic growth, in line with our growth mission.

The project referred to sits within the Borderlands Growth Deal. Local partners are submitting proposals for a reset to the Deal for review by late autumn, which will set out revised plans to ensure the programme has the greatest possible economic impact.

We are transitioning towards a clean energy future, but oil and gas production in the North Sea will be a key part of the UK energy landscape for many years to come.

Scotland has the heritage, expertise and world-class workforce to help win this global race for high-quality green energy jobs. This Government is working closely with industry, including to introduce a new skills passport for oil and gas workers, to ensure we take the opportunities that this transition provides.

The Scotland Office currently has 39 civil servants assigned to its London Office and 46 assigned to its Edinburgh Office. There are 30 desks available in the London Office and 26 desks in the Edinburgh Office.

For the 4-week period from 2 September 2024 to 27 September 2024, the Scotland Office’s London Office had an average of 17 staff attend per day and an average of 56% of desks occupied. Please note that part of this reporting period included recess when we are more likely to have leave, visits and stakeholder engagement. We are not required to collect this data for our Edinburgh Office.

The Scotland Office has not spent any money on new furniture and fittings and other refurbishments of Ministerial offices since the dissolution of the last Parliament.