Global events over the festive period have shown the deep challenges we face in the coming year, not least in the world economy.
Here in Scotland 2009 cannot be a year for “politics as normal”. These are unprecedented times and require a different approach. We face this international crisis together and we will get through it by pulling together. I again pledge to work across party lines with anyone who is working for Scotland.
Scotland deserves nothing less. That is why I have asked Iain Macmillan at the CBI to convene the second meeting between the CBI, STUC, the British Government and the Scottish Government.
Scots the world over are proud of their heritage. I want to use the Saltire- which belongs to every Scot, regardless of their politics – to bring the diaspora home both for tourism and for business. As we enter this difficult year I will redouble my efforts to work with anyone to promote the interests of Scotland. That is why I have agreed with David Miliband, the Foreign Secretary, that the international network of British Embassies will promote the Homecoming, which me must use to kickstart our tourist industry. It is also why I have been speaking to Scottish Financial Enterprise about promoting our financial services industry internationally.
We know there remain two different visions for Scotland. The SNP government believe Scotland would be better off separate from the rest of the UK while most Scots believe that we are stronger as part of the UK. But despite this it is important that we emphasise what we have in common because the challenges of 2009 mean we must work together.
If there was ever a New Year for resolution, it is 2009.
It’s been another varied week. Earlier in the week I was involved in the publication of the white paper on welfare reform, which is an issue close to my heart. I was pleased to have had a hand in helping Glasgow be chosen as one of five pilot areas for ‘benefit recycling’, which is a new idea that essentially means using money that would have been used to pay benefits in the future to invest in programmes now to get people off benefit and into work. Last night I gave a speech at the Royal Society in Edinburgh to the David Hume Society on the economy, which you can read in full elsewhere on the Scotland Office website.
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I’m typing this on my blackberry in Amsterdam airport on my way back from Germany where I’ve had an incredible day meeting some remarkable people. I’ve been to visit the Royal Scots Dragoon Guards - Scotland’s most senior regiment in the British Army - at their barracks at Fallingbostel, not far from Hamburg, and have had the honour of presenting campaign medals to a number of them who have recently returned from Iraq and Afghanistan.
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It’s been another busy week. Yesterday Whitehall came alive for the annual spectacle that is the State Opening of Parliament. Parliament is always an evocative place, but on Queen’s Speech day more than at any other time I am keenly conscious of the weight of history and tradition behind the institutions and rituals. Yesterday was all the more meaningful because as well as the pageantry there were some really significant pieces of legislation for Scotland contained in the programme.
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Last weekend was a busy but productive one as I attended two events on subjects very close to my heart. On Saturday morning I attended a photocall in Glasgow aimed at publicising the ‘It’s your call’ campaign run by the Department for Business which is designed to raise awareness of the National Minimum Wage and give low-paid workers access to information and support they need in case they have to bring a complaint. This is the kind of thing that got me involved in politics in the first place as it makes a real difference to the lives of the low-paid, and I still believe that the introduction of a national minimum wage is among the Government’s finest achievements. But we need to remain watchful and ensure it is complied with, as it affects up to 90,000 Scots, and both Ann McKechin and I are keen that as many Scots workers hear about the campaign as possible.
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Today I met with Scotland’s leading citizens advisory groups to find ways to help the poorest in Scottish society stay out of avoidable debt during the credit crisis. I met representatives of Citizens Advice Scotland and Money Advice Scotland and looked at how best the UK Government can direct advice and new resources unveiled in Monday’s Pre-Budget Report in order to help the most needy in society.
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At twenty to nine last night, Parliament was prorogued. That probably doesn’t (and shouldn’t) mean anything to you unless you’re an aficionado of parliamentary procedure, but for the ordinary person it means the third session of this Parliament came to a close. The fourth session begins next week with the Queen’s speech and the new legislative programme (of which more here in due course) but first it’s worth reflecting on what has happened during the last year.
The UK Parliament has continued to play a pivotal role in Scotland, legislating on important reserved matters: continually improving our immigration system; ensuring affordable and sustainable energy supplies; putting strong counter-terrorism measures in place and delivering a comprehensive system of child maintenance for all.
Yesterday’s Pre-Budget Report was significant for Scotland in many ways. The Chancellor’s bold steps to support families, business and the economy mean a £2 billion boost for the country at a difficult time.
As Scotland woke up this morning, it was to a 15% rate of VAT, a package of measures targeted at supporting small businesses and their cash flow – as well as the employment they create – and, for the average household, £275 of extra spending money a year. The Government also announced a commitment from the major mortgage lenders to give those struggling with repayments a leeway of three months before making a decision on repossession. There was also a further £1.3 billion for Jobcentres across the country to help the unemployed back into work and a more equitable income tax regime for high earners.
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The national minimum wage has had a huge and lasting impact on the working lives of millions of hard-working people across the UK since it was introduced a decade ago. Over 90,000 Scots benefited from the increase to the NMW when it went up on 1 October.
I was therefore pleased to welcome today’s news the UK Government is to embark on a wide-ranging consultation to reform the way tips are paid to workers on the national minimum wage.
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I arrived in a windswept Reykjavik in an Iceland battered by an economic storm. The banking system here has literally collapsed, and politics here is currently highly charged but a lot less formal. I started by meeting the Prime Minister and we discussed the things we need to do together to allow the technical experts to work on the detail of recovering UK savers’ and investors’ money. Ultimately we share the same aim, which is to restore the stability of the banking sector, not only in Iceland but across Europe and beyond.
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