General Question Time – in the Scottish Parliament at on 5 December 2024.
To ask the Scottish Government what steps it is taking to maintain and grow supported businesses. (S6O-04075)
The Scottish Government values the role of supported businesses and is committed to helping them to achieve commercial sustainability. In Scotland, we pride ourselves on leading in that area with legislation and systems that support that. Legislation such as the Procurement Reform (Scotland) Act 2014 contains a number of provisions to support supported businesses. The multi-supplier dynamic purchasing system for requirements reserved for supported businesses describes a range of products and services that supported businesses can provide to the public sector.
Recent data shows that almost £28 million of public sector spend was spent by public bodies with supported businesses in the previous year. Supported businesses are also included in the recently published social enterprise action plan. We are now working with officials to provide further guidance to public bodies and to set guidelines on how much they should seek to spend with supported businesses across the country.
I thank the minister for that answer. Haven Products in Larbert, with nine out of 10 of its workforce disabled, is facing closure. I have been pressing the Government to act to save those jobs for more than six months. As of today, neither the Government nor its short-life working group has come up with a plan to save the factory. This week, the board of Haven Products confirmed that, unless the situation is resolved, redundancy consultations will begin in early January. Does the minister agree that the time for words has long passed? Those workers need action. Will he give an undertaking today that a rescue plan will be put in place before Christmas to save those vital jobs?
I absolutely agree with the member, and I genuinely thank him for bringing the issue to the chamber. I have met the chief executive of Haven Products, who I believe will be visiting the Parliament in the next few days, at the request of Mr Leonard.
I have been working tirelessly on the matter to support Haven Products and other supported businesses, because we recognise that it is not only the right thing to do but, frankly, more cost effective to support such businesses than it is for them to close and for the individuals concerned to have to be supported, with costs to wider public services. I am absolutely committed to doing that.
Richard Leonard will be aware that we work within a regime on what we can and cannot do with specific procurement requirements, but I have told officials that we need to deliver on this and ensure that Haven Products and other supported businesses are supported. Officials have identified opportunities in the medium term, which is welcome, but, as Richard Leonard rightly identifies, we need the delivery of orders and financial support in the immediate term. He can rest assured that we are working to ensure that that happens.
The Scottish Council for Voluntary Organisations has estimated that Labour’s national insurance hike will cost the sector £75 million, with Edinburgh social enterprise Four Square warning that, after Labour’s tax hike, it has “nowhere left to cut”. What assessment has the Scottish Government made of the impact on the third sector of the changes? Will the minister outline how the Scottish budget, which was announced yesterday, is supporting third sector organisations, including social enterprises?
Colin Beattie raises an important point. The measures that have been taken in the United Kingdom budget have a significant impact on the sector. We are working with the sector and others to understand the full impact, and we are holding negotiations with the UK Government to secure funding for all the organisations that are impacted in Scotland as a consequence of those actions. Colin Beattie will know that the Scottish budget, which was published yesterday, contains a range of measures to support those enterprises.
I would be grateful for concise questions and responses.