To ask the Scottish Government what progress it has made in implementing each of the points in its action plan to tackle pay day lending.
The action plan to tackle payday lending set out 12 action points. Progress on each action has been set out below.
1. Introduce the Financial Health Service which provides access to a range of money advice services and financial education, including a website and public information campaign.
The Scottish Government launched Scotland’s Financial Health Service (SFHS) website on 3 December 2014. The website is a hub of information and advice, bringing together different strands including financial education and advice on debt, employability and access to ethical and affordable lending, including a post-code search facility to identify appropriate credit unions and local sources of money advice. A television and press marketing campaign to raise awareness of the SFHS website commenced on 2 January 2015.
2. Explore how to further promote credit unions as potential alternative lenders as a key part of the SFHS.
I have chaired two meetings of the recently established credit union working group. The remit of the group, which includes representatives from the credit union sector and the Scottish Government, is to promote credit unions in Scotland. As an example, this engagement has led to the agreement that all credit unions across Scotland are promoted through SFHS website.
3. Invite the Financial Conduct Authority (FCA) to be part of the Scottish Government’s round table on payday lending which involves lenders, advice agencies and Trading Standards. Opportunity to promote good practice, highlight poor practice and raise Scottish concerns with FCA.
I chaired a meeting with stakeholders from the advice agencies, Consumer Finance Association and Trading Standards to discuss the proposals for the cap. The FCA were represented and provided a presentation on the proposals for the capping of high-cost short-term credit for comment and discussion by the group. This informed my response to the FCA consultation which was issued on 21 August 2014.
4. Scottish Planning Policy to include policy to support local planning decisions seeking to address over proliferation and clustering of the activities of concern.
The Scottish Planning Policy, launched in June 2014, includes national planning policy about the proliferation of activities such as pay day lending outlets and betting shops and the impacts on the character and amenity of town centres and high streets and the wellbeing of communities.
5. Consult on changes to remove the existing exemptions from planning control for betting offices and certain financial services.
The public consultation on planning legislation contained technical changes and closed on 14 November 2014. We are still considering the responses. The consultation was technical in nature and relates to legislative changes to the Use Classes Order and the General Permitted Development Order. Currently these mechanisms allow premises selling financial, professional and other services to change use to betting office or pay day loan related activities without requiring planning permission. The Smith Commission recommended the Scottish Parliament should have the powers to control the proliferation of pay day loans shops. This is necessary as planning cannot effectively control the sale of a particular financial service from variety of outlets.
6. The Scottish Government will continue to argue for responsibility for the regulation of gambling to transfer to the Scottish Parliament.
Through the Smith Commission process we have argued for further devolution of gambling policy. Now the commission has completed its work and recommended the devolution of a power in respect of fixed odds betting terminals, we continue to seek to engage with the UK Government on the delivery of that commitment.
7. While the power to regulate gaming, betting and lotteries lies with Westminster, Scottish Government will continue to seek to influence the UK Government’s gambling policy.
We have continued to press the UK Government to take action against problem gambling and a letter was issued jointly from the devolved administrations in June 2014 raising problem gambling as a public health problem.
8. The Scottish Government will explore with the Gambling Commission and local authorities ways in which the Scottish Government can support the regulation of betting shops.
We have continued to work with the Gambling Commission to encourage their efforts to work with local authorities in Scotland to make more effective use of their powers.
9. Implement the Town Centre Action Plan
The Town Centre Action Plan – One Year On report provides a snapshot of the progress made by the Scottish Government and its partners in the 12 months following publication of the Town Centre Action Plan on 7 November 2013. It covers updates on actions under seven key themes: town centre first principle; town centre living; vibrant local economies; enterprising communities; accessible public services; digital towns; and pro-active planning.
The report also provides summary information on progress on projects which are underway to demonstrate the key themes of the action plan. Highlights include amongst others: town centre data collection; town centre housing fund; town centre investment zones; simplified planning pilot; town centre asset audits; town centre charrettes; masterplanning toolkit; entrepreneurial initiative and a digital town centre regeneration project.
10. Explore with partners the scope to pilot the development of social impact evidence base for use in planning and development.
One of the strands of the town centres planning pilots will look at developing material which can be used when considering planning applications or appeals for pay day loan shops. Glasgow City Council and West Dunbartonshire Council are involved in this work, which will involve public consultation and the development of supplementary planning guidance.
11. Work with the Convention of Scottish Local Authorities and the Improvement Service on developing this action plan and to identify how good practice can be adopted and spread (autumn 2014).
A meeting between Scottish Government officials and the Improvement Service was held on 11 November 2014 to explore Improvement Service activities in this area and Scottish Government activities, including the Financial Health Service. We have agreed to improve co-ordination and communication and to meet again to review this in spring 2015 to consider next steps.
12. The Scottish Government to exclude pay day lenders from Small Business Bonus Scheme/Fresh Start business rates relief.
Exclusion from non-domestic rates reliefs has now been implemented.