Continue reading Quiet desperation: people ‘pushed to the margins’ secured Brexit victory
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Sturgeon moves to cushion Brexit damage
First Minister Nicola Sturgeon has announced measures to support and stimulate the economy in the wake of the EU referendum.
Capital spending on projects to support and create employment will be accelerated, starting with an additional £100 million of funding in this financial year. The capital funding will be used to speed up delivery of health and other infrastructure projects.
Projects will be assessed for accelerated funding against a range of criteria including how quickly work can start, the number of jobs that will be supported or created, the likely impact on the supply chain and geographic spread.
The Scottish Government will also set up a new dedicated service to provide information and support to businesses affected by the EU referendum, while a new Post-Referendum Business Network will work closely with the main business bodies, the STUC and the Scotland Office.
The plans were announced at the Golden Jubilee which will receive an extra £5 million to bring expansion of its elective centre forward from 2018-19 to this year.
Further details of the Capital Acceleration Programme, including the projects to be supported by the initial £100 million of additional funding and details of funding for future years, will be announced in due course.
The First Minister also called on the UK Government to give early certainty about EU Structural Funds and to urgently announce its own economic stimulus package, which would enable the Scottish Government to do even more to accelerate capital spending.
The First Minister said: “As I have made clear since the EU referendum, the Scottish Government will pursue all possible options to protect Scotland’s relationship with the EU and ensure that our voice is heard.
“However, it is also important to act now to support and stimulate the economy.
“Scotland is and remains an attractive and stable place to do business – however, there is no doubt that the referendum outcome has created deep and widespread uncertainty, with the impact on jobs and investment already being felt.
“The UK Government has not yet taken any meaningful action to alleviate uncertainty or to boost confidence.
“Scotland is and remains an attractive and stable place to do business – however, there is no doubt that the referendum outcome has created deep and widespread uncertainty, with the impact on jobs and investment already being felt.
“The UK Government has not yet taken any meaningful action to alleviate uncertainty or to boost confidence, and there are very real concerns that the damage to the economy and to jobs will be severe and long lasting.
“It is against this background that the Scottish Government is announcing early action to boost confidence, stimulate economic activity and support business.
“Our Infrastructure Investment Plan is already delivering major infrastructure improvements, with projects worth almost £6 billion currently under construction – we will now inject a further £100 million of spending this year to accelerate planned projects.
“We will also provide business with wider support to help them navigate the uncertainty caused by the referendum result. Business organisations have asked for a single point of contact and we will shortly launch a new Business Information Service that will provide up-to-date information and advice, and answer questions from individual businesses, going some way to alleviate business concerns about the future.
“We will also establish a new Post-Referendum Business Network, to work more closely and collaboratively with the main business bodies, the STUC and the Scotland Office to help shape future policy and support for business.
“These three initial measures will help support new and existing jobs and alleviate business concerns at this difficult time.
“However, it is important that the UK government also acts and I am calling today for urgent action on two fronts – firstly, early assurance about EU Structural Funds and, second, a UK wide stimulus package which, through consequential funding, would enable the Scottish Government to do more to accelerate capital spending.”
The STUC has welcomed the announcement. STUC General Secretary Grahame Smith said: “The STUC strongly endorses the approach set out by the First Minister today. The Scottish economy, already weak due to the downturn in the oil and gas sector, risks falling into technical recession as a result of Brexit induced uncertainty. In this context it is important that the Scottish Government accelerates capital projects where feasible in order to support employment.
“The First Minister is also entirely justified in calling on the UK Government to act swiftly to help minimise the economic consequences of their calamitous handling of the referendum and its aftermath. With borrowing costs at a historic low, now is the time to invest to support jobs in the present and increase the economy’s capacity to grow sustainably in the future.
“The STUC looks forward to making a positive contribution as a member of the new Post Referendum Business Network.”
Employers organisation CBI Scotland also welcomed the infrastructure investment. Hugh Aitken, CBI Scotland Director, said: “We welcome the Scottish Government’s commitment to boosting growth through infrastructure spending and look forward to seeing more details.
“Progress on the Glasgow airport link, together with improvements to the A82, A96 and A9 are projects previously identified by businesses as vital, alongside advances in digital infrastructure.
“Firms will also be encouraged by the Scottish Government’s pledge to work closely with the Scotland Office as it engages with firms following the EU Referendum.
“Our members stand ready to work alongside both the Scottish and the UK Governments as companies seek clarity on trade, regulation, access to talent and protection for the economic and social benefits of EU funded projects.
“As options for the future take shape, it will be more important than ever for both governments to partner with businesses in navigating their approach.”
Opposition parties do not believe the stimulus is enough, however. Scotland Secretary David Mundell said Ms Sturgeon should rule out a second independence referendum to restore business confidence, while Labour’s Jackie Baillie said the £100 million commitment ‘feels like a drop in the ocean‘.
Scottish Labour Economy spokesperson Jackie Baillie said: “It is welcome that the First Minister has agreed with Labour’s calls to bring forward infrastructure spending to stimulate the economy, although the SNP could be much bolder with this investment.
“For context the SNP announced £100 million today – the Queen Elizabeth University Hospital in Glasgow cost £850 million and the Queensferry Crossing will cost over £1 billion. Any investment is welcome but this feels like a drop in the ocean.
“Labour outlined a series of policies in our Brexit Action Plan two weeks ago including the establishment of a Brexit support fund for at risk sectors. The SNP Government should adopt this Labour policy to give support to key industries.
“Today’s announcement must be only the start of the increased investment. Nicola Sturgeon must stop the cuts her government is imposing on public services in Scotland. The SNP Government is cutting hundreds of millions of pounds from schools and local services, our police force is facing cuts and our health boards are tens of millions in the red. It is not sustainable. Any post-Brexit stimulus from both the SNP and Tory Governments must include an end to austerity.
“Labour will continue to make the case to use the new tax powers of the Scottish Parliament to invest in our economy and stop the cuts to public services. The recent interventions from senior SNP figures like Kenny MacAskill show that a debate about tax is very much back on the agenda.”
You can read Labour’s Post Brexit Action Plan here
Brexit voters felt ‘ignored and left behind’
The independent Joseph Rowntree Foundation (JRF) is calling for a renewed drive to solve poverty, as new research reveals the extent people feel disconnected from the UK’s economic growth and how their concerns are ignored by the political establishment.
Following last month’s Brexit vote, which revealed deep divisions in British society, a poll of over 2,000 people conducted by Populus for JRF has revealed that those who voted for Brexit feel left behind by economic growth and ignored by politicians.
In one of the first polls after Brexit, it presents a clear instruction for the next government to ensure things do not return to ‘business as usual’ for people and places who feel left behind. The new Prime Minister, Theresa May, has said her premiership will focus on uniting the country and carrying out a programme of social and economic reform.
The findings show:
- Brexit voters are twice as likely to feel their local area doesn’t get its fair share of Britain’s economic success (23% vs 11%), and that their local area has been neglected by politicians (27% vs. 13%).
- Brexit voters are also nearly twice as likely to believe that national government does not listen to their concerns (40% vs. 23%).
- Brexit voters are more likely to believe wealth in the UK is not fairly distributed, and that they do not personally benefit from economic growth in the UK. In all cases, Brexit voters on low incomes were more likely to share these sentiments than those on higher incomes.
- Brexit voters feel more optimistic about their family’s future, although poorer Brexit voters less so. Asked whether they ‘feel optimistic about my family’s future’, 48% of DE Brexit voters agreed compared to 62% among AB Brexit voters.
- Brexit voters feel more optimistic about the country’s future, although poorer Brexit voters less so. 61% of DE Brexit voters agreed with this sentiment compared to 70% among AB Brexit voters.
This comes as separate polling for JRF shows poverty is a rising concern among the public as social mobility is perceived to be moving backwards. The poll, conducted a week before the Brexit vote and released yesterday, revealed:
- 90% of those polled say poverty reduction is task for central government
- Two thirds of people think poverty has increased over the last decade
- 52% believe it is harder for those living in poverty to escape than it was 10 years ago – compared to just 15% who say it’s easier.
JRF is calling for urgent action to tackle poverty and prevent further economic and social division. In September JRF will be launching a comprehensive strategy to solve poverty, outlining how national and local government, businesses and citizens can each play their part.
Julia Unwin, Chief Executive of JRF, said: “The reasons for people’s vote in the referendum are complex, but this clearly shows that millions of people up and down the country feel left behind by economic growth and ignored by those elected to serve them.
“We believe Britain will be stronger if we solve poverty, giving everyone regardless of their background the chance to live a decent and secure life. Yet instead we’re seeing a real sense that it’s harder to get on than it used to be and poverty is on the rise.
“The result of the EU referendum shows we cannot afford to return to business as usual for the poorest people and places across the UK. It is vital that politicians seize this opportunity to show that they are listening, and work not only across party lines but in collaboration with business, individuals and local communities to solve poverty once and for all.”