Tag: austerity

Letters: Austerity – Never Again!

Dear Editor

When the banks crashed through mismanagement and greed most were bailed out by the government, using public money to do so.

People were told that everyone was ‘in it together’.

But as we know from thise years, the government embarked onn what they called Austerity, in whih wages were frozen for years; prices were rising; major cuts were made in services of all kinds;unemployment and zero hours contracts grew.

The years of tremendous sacrifices made by the people in their lives have now been forgotten by employers and government alike.

In fact there is an indication that both of these are preparing the repeat of austerity, more severe than the last – and that will last much longer.

The people must not allow this to happen again!

The investors and financial institutions are intent to make everyone pay and once again decimate the lives of all people.

Tony Delahoy

 

What a waste: Holyrood spends £100 million to mitigate Tory welfare cuts

This year more than £100 million has been spent to mitigate the effects of UK Government austerity and this money could have been better spent on more anti-poverty measures, Social Security Secretary Shirley-Anne Somerville has said. Continue reading What a waste: Holyrood spends £100 million to mitigate Tory welfare cuts

New TUC report reveals the damage from a decade of austerity

  • Every developed nation that cut public spending since the financial crisis has experienced slower GDP growth
  • Wage growth has halved across OECD nations since the financial crisis

Every developed nation that cut government spending since the financial crisis has experienced slower GDP growth, according to a new TUC report.

The report looks at the impact of austerity across the OECD. It finds that the rate of GDP growth reduced in all 32 countries where government spending was cut

The only OECD countries with higher GDP growth are Germany and Japan, which both increased government spending after the crash.

Living standards

The report also reveals the devastating impact of austerity on living standards.

Wage growth has halved across OECD nations since the crash, with annual real pay growth averaging less than 1% for two-thirds of countries.

UK workers have been among the worst affected. Only Lithuania, Estonia, Greece and Latvia have experienced a greater reduction in real wage growth than Britain since the financial crisis.

Over this period the number of people in working households living in poverty in Britain has increased from 5 million to 8 million.

Commenting on the report, TUC General Secretary Frances O’Grady  said:  “Austerity was always a political choice. It’s now clear how much harm it caused, holding down economic growth and living standards.

“We can’t afford to make the same mistake again. If there’s another crisis, the government’s response must be to focus on public investment to make our economy stronger.

“But we shouldn’t wait for the worst to happen. The best way to deal with a recession is to prevent it. There are already warning signs, so the government should act now by boosting public sector pay and spending on public services.”

Recommendations from the report:

  • An independent review of how the Office for Budget Responsibility and Bank of England judge the impact of government spending on the economy.
  • Urgent fiscal support for aggregate demand through public sector pay increases and spending on services.
  • Fast-track increases to UK public infrastructure spending to least the OECD average of 3.5% GDP.
  • Increased expenditure should initially be financed by borrowing rather than increased taxation. This will strengthen the economy, leading to higher revenues that can support spending increases longer term.
  • Fiscal policy should be part of a wider plan to deliver sustainable growth across the UK, including investment in the public services families rely on, the skills workers need for the future, a just transition to net zero carbon emissions, and giving workers a real voice at work.

Crisis? What crisis?: More than 336,000 households aided through Scottish Welfare Fund

Scottish Welfare Fund annual spend hits £35 million.

poverty family JRF

People in crisis made more than 165,000 successful applications to the Scottish Welfare Fund in the last financial year, according to the latest statistics.

The Fund paid out £35 million, including £10.4 million in Crisis Grants to people in financial emergency, such as those struggling on low incomes or benefits  – a 14% increase on 2017-18. The money helped people with essentials such as food, heating costs and household items.

A further £24.8 million in Community Care Grants helped those facing extreme financial pressures with one-off costs for purchases including beds, washing machines and cookers.

The Scottish Welfare Fund is part of an annual package of over £125 million to mitigate against the impact of UK Government welfare cuts. Since its launch in April 2013, the Fund has paid out more than £200 million to support over 336,000 households, with a third of recipients being families with children.

Social Security Secretary Shirley-Anne Somerville said: “We would much rather these resources were invested in anti-poverty measures than protecting our people from another government’s cuts – a positon the UN Special Rapporteur on Poverty recently described as ‘outrageous and unsustainable’.

“The fact that so many households in Scotland are in need of emergency financial help is appalling, and a sad indictment of the UK Government’s record on austerity and welfare changes.

“As their welfare cuts continue to cause harm and damage, we continue to do our best to mitigate against them and provide financial support to low income families and carers through new social security benefits.”

In the UN Special Rapporteur on Poverty report published earlier this year, Professor Philip Alston praised Scotland’s “ambitious” schemes for addressing poverty, including the Fairer Scotland Action Plan and the Tackling Child Poverty Delivery Plan.

He also noted Scotland’s “promising social security system, guided by the principles of dignity and social security as a human right, and co-designed with claimants on the basis of evidence”

The Scottish Government’s response to the Special Rapporteur’s report shows UK Government welfare cuts have increased the risk of deprivation for low-income families across Scotland

The Scottish Welfare Fund statistics

 can be found on the Scottish Government’s website

UK Government ideology responsible for systemic poverty, says UN expert

Damning indictment of Tory policies

The UK Government’s policies have led to the ‘systematic immiseration of millions across Great Britain’, the UN’s expert on poverty and human rights said in a report released on Wednesday. UN Rapporteur Philip Alston has called for a new vision that embodies compassion to end the unnecessary hardship.   Continue reading UK Government ideology responsible for systemic poverty, says UN expert

Austerity: Council spending has fallen by half since 2010

  • People living in cities shouldered the equivalent of £386 worth of cuts per head since 2009/10, compared to £172 per person elsewhere
  • Liverpool and Barnsley worst hit by cuts to local government budgets
  • 50% of cities spend more than half their budget on social care
  • The Spending Review must mark the end of local government austerity

Cities have borne nearly three-quarters (74%) of all real-terms local government funding cuts in the last decade despite being home to just 54% of the population, according to Centre for Cities’ annual Cities Outlook 2019 report – the Centre’s annual health check on UK city economies. Continue reading Austerity: Council spending has fallen by half since 2010

Scottish Government commits £125 million to combat UK austerity

Scottish Ministers are on course to invest over £125 million in 2018-19 to mitigate against the worst impact of UK Government welfare reforms and to protect those on low incomes. Continue reading Scottish Government commits £125 million to combat UK austerity

“A state of denial”: UN Human Rights expert condemns UK Government

‘Poverty is a political choice. Austerity could easily have spared the poor, if the political will had existed to do so’ – Professor Philip Alston Continue reading “A state of denial”: UN Human Rights expert condemns UK Government

Ben Macpherson MSP: UK Government’s unjust budget fails to address Scotland’s needs

SNP MSP Ben Macpherson has criticised the UK Government for failing the people of Edinburgh Northern and Leith, and all of Scotland, following this year’s UK Government Budget announcement. 
Continue reading Ben Macpherson MSP: UK Government’s unjust budget fails to address Scotland’s needs