Scotland Office

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.

This government is committed to the communities sector and community ownership through empowering communities to own and run those local assets which mean the most to them. To date, the UK Government’s Community Ownership Fund has helped more than 40 Scottish community organisations with around £17m in grants. As part of this programme, the UK Government is working closely with the Scottish Government to look for opportunities to jointly support projects, including through the Empowering Communities Programme and the Scottish Land Fund.

The projects awarded funding to date can be found online at: https://www.gov.uk/guidance/community-ownership-fund-first-round-successful-bidders.

Tackling child poverty is a shared priority across all parts of the UK. I am a member of the Child Poverty Taskforce, which is confronting the wide-ranging and deep-rooted causes of child poverty. The Child Poverty Taskforce will collaborate with the Scottish Government on our common goal to reduce and alleviate child poverty. The Taskforce will work with the Scottish Government in developing the UK-wide strategy, to be published in spring next year, to improve children’s lives and life chances now and address the root causes of child poverty in the long-term.

I have had a number of discussions with Scottish Government Ministers since my appointment, as have many of my Ministerial colleagues, including the Prime Minister. T o establish collaboration on the development of a UK-wide Child Poverty Strategy, the co-chairs of the Child Poverty Taskforce met with the First Minister and the Cabinet Secretary for Social Justice earlier this month. We look forward to continuing our partnership to build consensus for action and deliver sustainable change for all children across the UK. The Taskforce is also engaging directly with voluntary sector organisations from across the UK.

The Chancellor will set out overall fiscal and spending plans in her Budget on 30 October and the Spending Review in the spring.

The Government recognises the importance of tackling rural depopulation, and the wider challenges faced by rural and island communities in Scotland. We are committed to supporting these communities by boosting investment and opportunities.

For example, we are in the process of rolling out the Shared Rural Network (SRN) program (alongside EE, three, VMO2 and Vodafone), to improve mobile coverage and connectivity across the UK. Rural areas in Scotland will be among the biggest beneficiaries of this programme.

Furthermore, the UK Government is investing £50m covering the three island groups – Shetland, Orkney and Western Isles – through the Islands Growth Deal. The Deal supports the Islands’ ambitions for net zero, aquaculture and development of tourism and heritage projects. These investments exemplify the Government’s ongoing work towards growing the rural economy and improving infrastructure, which are critical to addressing rural depopulation.

Growing the economy across both rural and urban areas is a key mission for the Government, and helping rural businesses succeed is a significant part of this work. Nature recovery plays a critical role in supporting the rural economy, and in turn businesses can help provide food security, enhance biodiversity and accelerate progress towards net zero targets.

In Scotland, we work closely with the Scottish Government and its agencies to ensure that businesses have access to the support they need to grow and thrive, including through export, and that we showcase the opportunities offered in all parts of Scotland to potential global investors.

For example, the Investment Fund for Scotland offers a range of commercial finance options with smaller loans and debt finance from £25,000 to £2 million and equity investment up to £5 million. The fund covers the whole of Scotland, including rural and coastal areas..

Details of Ministers’ and senior officials’ meetings with external individuals and organisations are published quarterly in arrears on GOV.UK.

Data for the period of July to September 2024 will be published in due course.

The UK Government worked with the Scottish Government and the Convention of Scottish Local Authorities to inform the most appropriate mix of UKSPF interventions for Scotland. Under the UKSPF delegated delivery model, local authorities are given the autonomy to make decisions on how funding is spent in their area. Local authorities in Scotland therefore might choose to make place-based investments for regeneration and town centre improvements, which could include better accessibility for disabled people, including capital spend and running costs; as well as providing funding for the development and promotion (both trade and consumer) of the visitor economy, such as local attractions, trails, tours and tourism products more generally.

Volunteering is a devolved policy area. However, the UK Government funded and supported the launch of the 2024 Big Help Out, which was a UK-wide campaign and took place on 7-9 June. It aimed to raise awareness of volunteering and provided opportunities for people to support their communities. This event followed the success of the inaugural day of community volunteering to mark the Coronation of His Majesty the King and Her Majesty The Queen, held on 8 May 2023.

Millions of people took part in last year’s Big Help Out with a huge range of charities and voluntary organisations providing people with the opportunity to try out and experience volunteering.

UK Government officials will continue to engage with the devolved administrations on matters relating to volunteering policy and shared insights.

Under the UK Shared Prosperity Fund ‘Supporting Local Business’ investment priority, which includes support for social enterprises, local authorities in Scotland have already spent £10.9m as of April 2024. This includes close to £400,000 spent in Stirling, and more than £270,000 spent in Perth and Kinross.

Year 3 payments have now been paid to local authorities, and we anticipate further investment under this priority in the third year of the fund.

The Ministry of Housing, Communities and Local Government is committed to evaluating and publishing findings on the impacts of the UK Shared Prosperity Fund, and Scotland is a key component of this evaluation. The UKSPF evaluation strategy clearly sets out the approach to evaluation.

Since coming into office, I have had several meetings with the Scottish Government, including the Deputy First Minister. Economic growth is the key mission of this Government and one that I am absolutely committed to delivering in partnership with the Scottish Government. City Region and Growth Deals are a fundamental part of this mission.

Since coming into office, the UK Government and Scottish Government have jointly agreed the £100 million Falkirk and Grangemouth Growth Deal.

Since coming into office, I have had several meetings with the Scottish Government, including the Deputy First Minister. We have discussed a range of key issues including economic growth across all of Scotland, which is the priority mission of this UK Government.

The jointly funded City Region and Growth Deals programme, including the Stirling and Clackmannanshire City Region Deal, is a fundamental element to the economic growth plan.

The UK Government commitment to the deal is for £45.1m, the Scottish Government have also committed £45.1m and with partner contributions this make it a £214m Deal.

The UK Government commitment covered investment in the following: Clackmannanshire Fund, National Aquaculture Technology Innovation Hub, Scotland’s International Environment Centre, the transfer of MoD land at Forthside, the National Tartan Centre and skills and employability provision in Alloa.

The Scotland Office does not employ staff directly. All staff that join do so on an assignment, loan or secondment from other Government bodies, principally the Scottish Government and the Ministry of Justice, who remain the employers and hold the information you have requested.

I have had a number of discussions with Scottish Government Ministers since my appointment, as have many of my Ministerial colleagues, including the Prime Minister.

My most recent meeting was with the Deputy First Minister, on Tuesday 1 October, who I am meeting regularly. We have discussed a range of issues such as our joint plan to secure the industrial future of the Grangemouth site, following confirmation of Petroineos’ decision to close the oil refinery next year.

This Government is committed to working with the Scottish Government. By working collaboratively together, we will deliver the change that the people of Scotland expect.

The Scotland Office uses a vehicle provided by the Government Car Service (GCS) under a contract agreed by the previous government. The car is a Jaguar i-Pace and is an electric vehicle. The total annual cost of the contract (excluding VAT) is £86,347.44.

The Scotland Office follows the policy of the Government Car Service on the allocation of Government Car Service cars to senior officials under a contract agreed by the previous government. This states that the Department can make the Service available for other senior officials at the department at their discretion. No Scotland Office senior officials have used the vehicle since 4 July 2024.

The Scotland Office does not employ staff directly. All staff that join do so on an assignment, loan or secondment from other Government bodies, principally the Scottish Government and the Ministry of Justice, who remain the employers and will hold records on civil servants who have been appointed to civil service posts without competition.

Since 4 July 2024, a new member of the Boundary Commission for Scotland has been appointed. No direct ministerial or other public appointments to the Scotland Office have been removed from their posts or have been asked to resign in the same period.

None. This is a devolved matter and, as such, a decision for the Scottish Government.

I have recently met UK bus manufacturers to understand how the UK Government can support the transport sector.

The Scotland Office is working closely with local partners and the Scottish Government to deliver for the people of Ayrshire through the £251 million Ayrshire Growth Deal.

As part of this, my department is supporting a programme review of the Deal in order to make strategic changes to ensure the originally envisaged benefits of the Deal are realised.

This includes proposals from the Ayrshire Councils to develop the new Prestwick space and aerospace proposition. This is a normal part of the Deal process, to ensure the programme can respond to external challenges such as inflation whilst having the greatest possible impact.

The Scotland Office has not had any positions that have included (a) diversity, (b) inclusion, (c) equity or (d) equality in their job title in any of the last five years.

The previous Government publicly committed to providing £8m in development funding to complete a detailed feasibility study for specific upgrades to the A75 and to fund targeted improvements identified by the study, subject to the Scottish Government’s business cases at various stages throughout the process. We recognise the importance of this project to communities in Southwest Scotland and remain in regular contact with DFT on it.

Scotrail run rail services in both Fife and wider Scotland, and responsibility for these services lie with the Scottish Government. Similarly, ferry services are also devolved to the Scottish Government. This Government is, however, working to ensure public ownership across rail services. The Passenger Railway Services (Public Ownership) Bill will ensure that ScotRail is kept in public hands.

This Government is committed to resetting the relationship with the Scottish Government to ensure we can work together to deliver for the people of Scotland on the things that matter most to communities, including on transport links between Scotland and the rest of the UK. I have already met with the Deputy First Minister on numerous occasions to discuss a variety of issues. My officials regularly engage with their counterparts in the Scottish Government, working with their colleagues in the Department for Transport, to identify opportunities for collaboration on improving transport and other services.