THE BIG STORIES
Reeves gets the dreaded vote of confidence | A good day for CalMac on the Clyde

📣 The future of the UK economy - and of Chancellor Rachel Reeves - is being questioned as the pound continues its slide, and the cost of government debt goes up. That leaves Reeves at high risk of breaking her own fiscal rules - which could mean she’ll need to cut spending, raise taxes, or both. And soon.

Reeves was given the Prime Minister’s “full confidence” yesterday “in that dread phrase presaging the implosion of a ministerial career,” noted The Times, dryly. This is being driven by Trump's ascent and the likelihood of higher inflation in the US: this isn’t all Reeves’ fault. But it is her problem to deal with.

There are widespread reports of government departments being told to produce plans for “ruthless” cuts, but the FT warns sudden moves could smack of desperation, rather than build credibility. It calls for a doubling-down of efforts to encourage hiring, investment and business expansion.

• No 10 backs Rachel Reeves to remain in post (Guardian)

• The Times view on economic malaise: Easy Rider (The Times)

• FT’s view: Bond vigilantes have the UK in their sights (Financial Times)

📣 Former First Minister Nicola Sturgeon announced the end of her marriage to Peter Murrell, the SNP’s former chief executive. The news - not unexpected among political circles - prompted reflection on the “rise and fall” of the SNP’s power couple.

• The rise and fall of the SNP’s former power couple (The Scotsman)

• “Perhaps the greatest surprise is that it endured for so long.” (Mail+)

• How singleton Sturgeon re-invented herself on Instagram (The Times)

• “Nicola: That's one life decision made. How about another?” (The Herald)

📣 It was a good news day on the Firth of Clyde, as new ferry Glen Sannox had her first full day of passenger-carrying sailings to and from Arran. The first crossing of the day was packed, it appears, with journalists and TV crews: a few offer their verdicts today.

• Alastair Dalton (The Scotsman) found it “bright, comfortable and spacious to go with it. “The ferry seemed to cope well with the slight swell that made some on board feel queasy,” he writes, “amid reports of several people reaching for the sickbags.” (The Scotsman)

• Steph Brown (The National) welcomed the lifts on board, and the big restaurant. “She had some zip about her as she sped towards Brodick, and it wasn’t too long before she received a good test of her core strength as we hit extremely choppy waters,” wrote Brown, adding there were hopes “the Glen Sannox will bring; more steel amid stormy conditions. I feel confident she will deliver.” (The National)

• Severin Carrell (The Guardian) said Glen Sannox “set sail nearly seven years late but in the event proved its worth […] as if to prove its durability, some passengers on its first scheduled voyage at dawn on Monday reacted in the traditional fashion to heavy seas, by vomiting into its brand-new toilets, while cafeteria trays slid over the tables.” (The Guardian)

IDEAS
We’re gonna need a bigger coat

🗣️ I loved Kenny Farquharson’s paean to Scottish “zines” - fanzines, wee magazines - in his newsletter, The Jaggy Thistle. He highlights three of them: Birthday Bedlam, The Best Supermarket in Edinburgh and Four Punctuation Marks. Remarking on the second of those, he bemoans the obsession for many writers of cracking “the industry”, when here’s “a young woman writing like a dream in a 20-page zine, with total editorial and design control, having what seems to this reader like a lot a fun, and selling copies for £8.50 a pop. More of this, please.” Indeed so. (The Jaggy Thistle)

🗣️ We had that furiously angry piece by Kevin McKenna about Glasgow’s safe (drug) consumption room in the newsletter yesterday. In the interests of balance, here’s a case for the facility by Alan Grant in the Express today, made all the more interesting - I think - because he avoids the usual platitudes and drives hard at the reason for what is an experiment, full of compromises and uneasy moral choices: it might save lives. (Scottish Express)

AROUND SCOTLAND

📣 The revamp of the Royal High School building on Calton Hill in Edinburgh is due to begin within months, after the plan won £5m in funding from the National Lottery Heritage Fund, and the promise of more funding later. The building will be transformed into the National Centre for Music, and an indoor music venue. It’ll also sport “the biggest new city centre public gardens for more than 200 years.” (The Scotsman)

📣 Scottish Conservative leader Russell Findlay takes aim at Labour today, saying his party is the only one for “change”. The claim, to be delivered in a speech later, follows Labour’s decision to let the SNP budget pass. Findlay will also take aim at the UK Labour government’s decisions on tax and winter fuel payments. (Holyrood)

📣 A sofa - yes, a sofa - blocked a lane on the Kingston Bridge yesterday. (STV)

AROUND THE UK

📣 Drones delivering weapons to prisons are now a national security risk, according to the chief inspector of prisons for England and Wales. He said authorities had “ceded the airspace” above prisons. (BBC)

📣 A new YouGov/Sky News poll puts Reform UK only one point behind Labour. Data collected over the weekend puts Labour on 26%, Reform on 25%, the Conservatives on 22%, Lib Dems on 14% and Greens on 8%. (Sky News)

AROUND THE WORLD

🌎 Those wildfires in LA threaten to worsen today: the return of strong winds will likely hamper attempts to quell two now-massive blazes. At least 24 people are known to have died in the fires: the death toll is likely to rise further. (AP)

🌎 Spain is planning a 100% property tax for homes bought by non-EU residents, including people from the UK. Flats let to tourists will also see tighter regulation, and higher taxes. The Spanish Prime Minister said the measures were needed to deal with the country’s housing emergency. (BBC)

🌎 Falling debris from Elon Musk’s SpaceX rockets forced Quantas to delay several Sydney to Johannesburg flights, the airline said. (Guardian)

BUSINESS & ECONOMICS

💰 The Scottish Government is being urged to drop its presumption against new oil and gas in the North Sea by the Aberdeen and Grampian Chamber of Commerce. Their call comes after Donald Trump railed against the UK’s move away from oil and gas. “It should not fall to the President-elect of America to make the case for jobs and investment here,” said the chamber’s chief executive, Russell Borthwick. (The Herald) (The Scotsman)

💰 Scotland’s private sector ended 2024 on a sour note, new data from the Royal Bank of Scotland shows. Both manufacturing and the services industry reported falls in output - reduced activity, redundancies and non-replacement of staff all played their part. The survey paints a picture of a fragile economy just as Rachel Reeves was unveiling her budget, which increased employer National Insurance costs. (The Scotsman)

SPORT

⚽️ The BBC rounds up the views of Rangers fans, who are divided on what needs to happen to make their side more competitive. Were the club’s ultras right to walk out at the 55th minute of their team’s game against St Johnstone? Or were other fans right to boo them (as some did)? And should manager Clement go? You sense tomorrow’s home game against Aberdeen will swing a majority vote one way or the other. (BBC)