LABOUR shortages which are crippling key industries cannot be properly combated in Scotland while immigration laws remain reserved to Westminster, Kate Forbes has warned.
Several sectors have been hit by the shortages in recent months, in part due to the pandemic but made much more severe in Britain due to Brexit.
Scotland’s Finance Secretary says the most important actions to counter the issues – which have resulted in empty supermarket shelves, a fuel crisis and a potential mass cull of pigs – lie with the UK Government.
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Speaking before the Finance and Public Administration Committee at Holyrood, Forbes explained: “What I would strongly emphasise is that I don’t believe that shortages and challenges can in any way be resolved through the Scottish Government’s budget alone.
“We have a role to play, we will play that role and we take that responsibility seriously, but when it comes to labour market shortages it’s well documented that the acute shortages we are facing right now are largely to do with immigration policy, over which we have no control.
“We can intervene, some of those interventions may look small, but we’re doing what we can – for example funding a marketing campaign in the hospitality industry to try and recruit more people.
“But I’m sure the industry will say that is small fry compared to what we really need which is the ability to access visas and bring in far more people to work in these sectors.”
She added: “Where we can intervene we certainly will, but I don’t think anyone is suggesting the Scottish Government can resolve it, and certainly from our budget perspective, these issues are much bigger than financial support – indeed, financial support will only go so far.”
The Scottish Government made an attempt in early 2020 to take control of immigration from Westminster, publishing plans for a bespoke Scottish visa system that was rejected within hours by the Home Office.
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Meanwhile, Forbes reaffirmed her government’s commitment to doubling the Scottish Child Payment to £20 “as soon as possible”, which has received support across the Holyrood chamber.
She told the committee plans would be laid out in the upcoming draft budget – which will be published in December.
The Finance Secretary also repeated her desire for greater borrowing powers to be afforded to Scotland – a call which she has made several times since coming into post almost 18 months ago.
But with a review of the fiscal framework due soon, Forbes did not seem hopeful.
“I’m certainly hopeful to discuss it,” she said.
“We’re not getting a huge appetite for change, I’ve certainly not had much evidence of an appetite for change during the pandemic when we looked for temporary fiscal flexibilities – so I think it’s unlikely.
“But I do think there’s an opportunity for civic Scotland, on a cross-party basis, to come to a position on borrowing that is actually good for Scottish businesses and the Scottish economy.”
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