300 new finance sector jobs fro Edinburgh

Plans by Australian financial services company Computershare to open a new technology centre of excellence in Edinburgh, creating 300 jobs, have been welcomed by First Minister Nicola Sturgeon.

The company secured a £2 million grant from Scottish Enterprise and has worked closely with Scottish Development International (SDI) to develop the project.

The expansion plans were announced on the same day SDI annual results were published, which showed 7,839 jobs were secured in Scotland through new and existing investors – an increase of 10% on the previous year.

The First Minister visited Computershare’s new office in the city centre which is being fully refurbished and will open next year. She said: “This announcement, with the creation of 300 highly skilled technology jobs and investment in the city centre, is fantastic news for Edinburgh’s economy.

“Scotland is open for business and continues to be a very attractive location for investment, as evidenced by the recent EY Attractiveness survey, which noted that Scotland was the top UK location for foreign direct investment outside London for the fifth consecutive year.

“Together with the inward investment figures published by SDI, this offers further evidence that we have the skills and expertise to attract and retain global companies like Computershare.”

Stuart Irving, global President and CEO of Computershare said: “As a truly international capital city, Edinburgh has a bright future and is a natural home for a global company. As a growing business we need the skills and hard work we see on offer in this city.

“We are grateful to the Scottish Government, Scottish Enterprise and Scottish Development International for helping us with our plans and are looking forward to our continued partnership.”

Neil Francis, operations director at SDI, said: “When a company like Computershare chooses to invest in Scotland, it sends a message to the rest of the world that Scotland is a first-class destination.

“We have a clear focus on winning the right kind of investment for Scotland – which is secured because of our skills base, science and research excellence and our connected business infrastructure, and this investment by Computershare is an example of this.

“We’re thrilled to have secured these new jobs for Edinburgh; it’s a ringing endorsement of our offering to international investors and we look forward to working with the Computershare team to help them fulfil their growth ambitions in Scotland.”

Computershare was founded in Melbourne in 1978 and its existing Edinburgh operation was established in 1998, serving locally-based clients and those further afield. From its current base in Edinburgh Park, the company provides relationship management and registry services to around 150 listed companies – from FTSE100 to AIM – many of whom are registered in Scotland.

Double whammy: Brexit and Autumn Statement will hurt poorest families, says Minister

The UK’s weak economic outlook and the UK Government’s austerity policies will hit low income family incomes hardest, according to Scottish Finance Minister Derek Mackay.

Analysis by the Institute for Fiscal Studies (IFS) shows that as a result of this slowdown, by 2021 incomes across the UK will still be lower than they were in 2008. That implies 13 years without any growth in real wages – the longest period of stagnant wages since World War II.

Meanwhile, the Office of Budgetary Responsibility (OBR) has set out the detrimental impact that Brexit and the UK Government’s approach to the negotiations is having on the economy. They expect that the uncertainty generated will lead to investment being postponed or cancelled; higher inflation squeezing households’ real incomes; and that trade with the EU will be reduced.

Analysis of the Chancellor’s Autumn Statement has also shown that the measures he announced will do little to offset the cuts to social security already put in place by the UK Government. For example, the Resolution Foundation estimate that a dual earning family with three children on low incomes will still be £3,650 worse off by 2020 as a result of the changes to the economic outlook and policy measures being introduced in this parliament. Likewise, they expect some lone parents to be up to £2,640 a year worse off.

Mr Mackay said: “Brexit has blown a huge hole in the UK economy – and the Chancellor’s Autumn Statement is an admission of that. With real wages forecast to still be lower in 2021 than they were prior to the financial crisis, Brexit is driving a decline that will be felt for generations.

“Meanwhile, the OBR has said that leaving Europe will create a £58 billion hole in the public finances, and unfortunately it’s families that are having to pick up the tab.

“Scotland did not vote for Brexit yet this renewed economic squeeze is going to hit hard-working families here who are already struggling to make ends meet.

“The tax and welfare reforms being introduced by the UK Government during this parliament are highly regressive, with those on the lowest incomes seeing the largest losses in both cash terms and as a share of their incomes.

“And I am deeply worried by reports that UK changes to tax and welfare through to 2020 will result in the poorest families with children seeing their incomes fall by up to £3,300 according to the IFS – that is a cut of nearly 18%. But we have seen no reversal on the UK Government’s damaging austerity agenda – in fact the Joseph Rowntree Foundation has highlighted that changes to universal credit are dwarfed by the existing UK cuts to social security.

“The Scottish Government, in contrast, is taking a very different approach to growing our economy, building a fairer welfare system and protecting our relationship with Europe. I was disappointed to see the Chancellor failing once again to commit to the single market instead pandering to the hard-Brexit agenda that is damaging our economy.

“I look forward to publishing the Scottish Draft Budget next month that will support our economy, tackle inequality and provide high quality public services for all – underlining once again the stark contrast between our two governments.

“Our overriding focus must now be on safeguarding Scotland’s place in Europe and continued membership of the single market, to protect us from the disastrous economic impact of Brexit, which is becoming clearer by the day.”

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.

“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

Jobless figures down but economy flat, latest figures reveal

Unemployment in Scotland fell by 18,000 in the period March to May, and now stands at 152,000, according to data released today. Continue reading Jobless figures down but economy flat, latest figures reveal

Budget: sweet and sour for Scotland

Yesterdays’ Budget statement was a perplexing mix of measures and raft of tax changes which pleased some and angered many more. Supporters hailed the budget as ‘historic’ but Labour leader Jeremy Corbin said the budget ‘has unfairness at its very core – paid for by those who can least afford it’ and the SNP’s John Swinney warned of ‘hidden cuts’. Continue reading Budget: sweet and sour for Scotland

U-turn welcome but Scotland still faces cuts

Swinney condemns ‘austerity of choice’

Chancellor George Osborne’s U-turn on tax credits has been widely welcomed, but Scotland’s Deputy First Minister John Swinney has warned that the Scottish Government will see a real terms reduction of almost 6 per cent in the funding for day to day public services over the next four years. Continue reading U-turn welcome but Scotland still faces cuts

Austerity: There IS another way, says Scottish Government

‘ … not only are these cuts ideologically driven, they are also unnecessary’ – First Minister Nicola Sturgeon

First Minister Nicola Sturgeon has set out an alternative option for a UK wide fiscal mandate that would ensure sustainable UK public finances while releasing additional investment in public services and infrastructure compared to the UK Government’s planned cuts.

The illustrative figures show that the austerity proposed by the UK Government is not required to secure a current budget balance.

Under an alternative fiscal plan, the UK’s current budget could be balanced from 2019-20, with public sector net investment increased to 2 per cent of GDP over the same period.

As an illustration of the scale of unnecessary reductions being pursued by the UK Government, this would allow an additional £150 billion in cumulative investment in public services across the UK between 2016-17 and 2019-20 compared to the UK Government’s current plans – which could see Scotland receive around £12 billion.

In contrast, the fiscal targets set out by the UK Government in its summer budget require a significant reduction in public spending, with cuts of £12 billion to welfare and potential cuts of around £20 billion to public services expected by 2019-20. UK Government reductions in spending go beyond what is necessary to balance the budget.

The work, published by the Scottish Government yesterday, shows that UK Government plans, which would see a significant reduction in public spending, with cuts of £12 billion to welfare and potential cuts of around £20 billion to public services expected by 2019-20 are not required.

The Scottish Government example would ensure that public sector debt and borrowing were on a downward path every year from 2016-17 to 2019-20. Net borrowing would continue to fall each year from 4.9 per cent in 2014-15 to 2 per cent in 2019-20 – below the average deficit of 3.6 per cent seen in the UK over the past 40 years.

The First Minister said: “This week, the UK Parliament will vote on the Chancellor’s proposals for what are unnecessary and ideological cuts to public spending.

“The pain of the UK Government’s austerity agenda is already having an impact on some of the poorest and most vulnerable in our society, and is beginning to bite across the country. But the UK Government’s latest fiscal targets mean even more painful austerity is ahead for people across the UK, with further cuts to public services and welfare planned over the next four years.

“As our alternative proposals demonstrate not only are these cuts ideologically driven, they are also unnecessary.

“Our paper published today – which updates our fiscal mandate proposals following the UK Government’s summer budget – outlines an alternative to ensure the debt and deficit are put on a downward path while allowing up to an additional cumulative £150 billion of investment across the UK by 2019-20 – with around £12 billion in Scotland.

“The Scottish Government has consistently demonstrated that the deficit and debt can be brought down without the need for the huge public spending reductions that have been set out.

“As this alternative option shows, not only could we maintain investment in public services and protect the poorest and most vulnerable in society, the UK current budget would be balanced by 2020, with limited borrowing set aside for capital investment to increase the country’s productive capacity.

“There is a different path to austerity available – as our alternative option shows, it is a viable path and it is an opportunity that the UK Government should grasp.”

The alternative options are set out in the paper –http://www.gov.scot/Topics/Economy/Publications/Options-for-the-UK-Fiscal-Mandate

Budget reaction

Reaction to George Osborne’s summer budget:

This is a Budget for the whole of the UK. It rewards work, backs aspiration and ensures fairness for taxpayers across the UK. We’re moving towards a lower tax, higher wage and lower welfare economy. And within the welfare system, we continue to protect the most vulnerable.

The economy is growing. We are taking more people out of tax. Jobs are being created. The deficit is coming down . Our economic plan is working.

The UK currently has 1 per cent of the world’s population, but 7 per cent of the world’s welfare bill. That cannot be right and is not sustainable.

Work is the best route to a secure future, and the peace of mind which that brings . We are making sure we have a welfare system which always rewards work, while making sure the most vulnerable are protected.

The National Living Wage is an essential part of the move from a low wage, high tax, high welfare society to a higher wage, lower tax, lower welfare society. It ensures that work pays, and reduces reliance on the State topping up wages through the benefits system.

There is no sensible person who suggests the deficit we inherited should not be tackled. Even our opponents agree with us on that. It would be wrong to burden our children and grandchildren – the next generations – with debt run up by previous governments in this generation.

This is part of being a responsible, responsive Government.

David Mundell MP, Scottish Secretary

The Chancellor is giving with one hand and taking away with the other. Massive cuts in support for working people will hit families with children hardest.

The Chancellor has finally woken up to the fact that Britain needs a pay rise. The TUC has long campaigned for the minimum wage to rise faster and the Chancellor has listened to us at last.

For young people, it was all bad news as they will not get the minimum wage boost and will suffer from cuts to higher education grants and housing benefit. And it was not a one-nation budget for public sector workers who will face years more of cuts to real wages.

Massive tax cuts for the wealthiest show the Conservatives are still the party of the inheritors, rather than the workers.”

TUC General Secretary Frances O’Grady

This is a double edged Budget for business. Firms will welcome measures to balance the books and boost investment, but they will be concerned by legislating for wage increases they may not be able to deliver.

Firms have been unwavering in their support for the Chancellor’s deficit reduction plans and will welcome the clarity that the new fiscal rules provide. Other standout measures include making the Annual Investment Allowance permanent at £200,000, which the CBI called for, as well much-needed investment in our roads network.

The further reduction in corporation tax is a welcome surprise but tax reductions for employers don’t appear to match the businesses most affected by a rise to £7.20 in the National Minimum Wage next April – a 7% increase.

The CBI supports a higher skilled, higher wage economy, but legislating for a living wage does not reflect businesses’ ability to pay. This is taking a big gamble that the labour market can absorb year-on-year increases of an average of 6%.

Firms want to play their part in training up more apprentices but an apprentice levy is a blunt tool. A volunteer army is always better than conscription but the CBI will work with the Government to make the best effect of this measure.

These new (fiscal) rules strike the right balance between getting down our national debt as share of GDP and ensuring we can respond to future shocks in the economy.”

On the introduction of the National Living Wage:

Small shops, hospitality firms and care providers are the businesses that will face real challenges in affording the National Living Wage.

Delivering higher wages can only be done sustainably by boosting productivity. Bringing politics into the Low Pay Commission is a bad idea.

On changes to Corporation Tax:

The Chancellor has provided clarity on the future direction of corporation tax rates for the remainder of this Parliament. Combined with a welcome commitment to publish a business tax roadmap in April 2016, which was called for by the CBI, this must provide businesses of all sizes with the certainty they need to invest.”

On the apprenticeship levy:

In the past, the training delivered by levy approaches has often been costly and not linked to the needs of businesses and learners. The real solution to more quality apprenticeships lies in giving greater control over content to businesses working together in partnership.”

On reducing the bank levy and introducing an 8% surcharge:

By phasing out the bank levy, the Chancellor has tackled an issue that was making the UK uncompetitive for global banks headquartered here. But the proposed new banking profits surcharge will need careful examination to avoid unintended consequences and ensure it doesn’t stifle choice in the banking sector.”

On further tax avoidance measures:

We support efforts to counter tax avoidance and evasion, such as increasing HMRC resources, and we look forward to consulting closely with the relevant authorities on a number of matters to ensure they are well designed.”

On transport and energy commitments:

The Chancellor is right to address the £8bn black hole in the existing road budget through the creation of the new Roads Fund. However there’s more to do to reverse rather than simply halt the decline in road funding.

The CBI has long argued that the current business energy efficiency regime is far too complex and burdensome and so we welcome the review announced. Better designed green taxes and regulation will drive business investment.”

On boosting local growth:

New enterprise zones, city and county deals, smart transport investments and science and innovation audits provided further detail on the Northern Powerhouse agenda. Business wants to work with Government to ensure new powers boost job creation and business investment.”

On further pensions changes:

The Chancellor is right to tread carefully in reforming the taxation of pension saving. Previous mis-steps in this area have damaged our savings culture. Any future measures should not damage the attraction of saving in a workplace pension for employees –this remains the best way of preparing for retirement.

John Cridland, Confederation of British Industry (CBI)

(On the announcement that automatic entitlement to housing benefit is to be cut from 18-21 year olds): This is a youth tax and a shameful decision which is unjustified and cruel. It completely removes the safety net that is in place to protect young people whose circumstances often prevent them from staying in or returning to the family home.

Whether it’s someone fleeing an abusive relationship or thrown out of their home, or someone caught between jobs a long way from home, we have a duty to support young people.

Cutting this vital lifeline for many thousands of young people is simply wrong and I fear that, despite Shelter Scotland and other support service’s best efforts this will cause very hard times and lead to a rise in homelessness among young people.

Short-sighted cuts like this do nothing to fix the root cause of the housing benefit bill – which has grown due to the chronic shortage of affordable homes, a growing reliance on the private rented sector and sky-high rents. That’s why the reduction in the benefit cap doesn’t make sense as it will drive those affected by it out of their homes for not being able to pay their rent, in effect, clearing out people who rely on housing benefit from high rent areas.

In Scotland, we need to build at least 10,000 new homes for social rent each year for the foreseeable future to tackle the shortage of affordable housing. By investing in affordable housing, not only would this bring hope to the 150,500 households on council waiting lists, it would also gradually reduce the housing benefit bill, which in turn would leave more funds available for investment in housing.

Graeme Brown, Shelter Scotland

There was further support to reduce corporation tax, fix the annual investment allowance and boost regional growth, where investment in roads will be particularly well received. We agree with the focus on productivity but need to see the details to raise skills through the apprenticeship levy on large firms. Planning reforms are also critical to raising productivity and again we look forward to seeing the proposals on Friday.

However, even though offset by a welcome increase in the employment allowance, some will find the new National Living Wage challenging. Changes to the treatment of dividends will also affect many of our members.

Commenting on specific areas detailed in the Budget:

The National Living Wage
The introduction of a new National Living Wage for over 25 year olds, set at £7.20 an hour from next April, will pose significant challenges for many small firms, particularly those in the hospitality, retail and social care sectors. We have been supportive of gradual increases in the National Minimum Wage in recent years, to reflect the
improvement in the economy. However, we believe annual increases should be set according to the recommendations of the independent Low Pay Commission (LPC). We support the idea of giving employers a clearer indication of where minimum wages are heading in the medium term, but we note this move risks undermining the independent
status of the Commission.

Employment Allowance

The increase in the Employment Allowance to £3000 is welcome although, for many small businesses, it is unlikely to fully off-set the increase in costs brought by the new over 25s National Living Wage rate. FSB’s research shows that in the past the Employment Allowance has enabled members to increase wages and spending on staff
training. Going forward we expect the allowance to primarily be used to meet higher wage costs, as a result of the new National Living Wage.

Annual Investment Allowance

The Annual Investment Allowance has been an important incentive for people investing in the future growth and productivity of our small businesses. We have long called for the Allowance to be set permanently and at a reasonable level. Small firms will therefore
welcome the move by the Chancellor to do just that by setting the Allowance permanently at £200,000.

Introduction of an apprenticeship levy

The increasing focus on vocational on-the-job training is the right approach but we must not let the drive for greater numbers come at the expense of quality. Encouraging small businesses to take on an apprentice is the only way to deliver the Government’s
target of three million apprenticeships. While we welcome the exclusion of small firms from the proposed apprenticeship levy, we urge Government to talk further with businesses about the wider implications and implementation of the levy.

Productivity and infrastructure

Closing the productivity gap is the best way to boost the long term health of the UK economy. It’s the key to reducing the budget deficit, delivering higher wages, and improving living standards. Solving the productivity puzzle requires long-term effort and focus, and we look forward to seeing the Chancellor’s thinking when he publishes his
productivity plan later this week. Among the range of measures we will be looking for are proposals to address longstanding planning issues, ending delays in infrastructure investment, and giving young people the skills businesses really need to grow and for them to have successful, rewarding careers.

The new road fund announced today will be particularly welcome for small businesses which are heavily reliant on the road network for the success of their businesses.

Tax simplification

Working out just what tax you owe can be a huge headache for small businesses. Getting it right costs unnecessary time and money. Businesses want a much simpler system, which is why they will welcome the greater resources and new statutory footing
awarded to the Office of Tax Simplification (OTS) and the greater resources to support its work. To deliver simplification, it is critical Ministers implement the recommendations the OTS has already made. Working with stakeholders, they also need to present a clear
roadmap on how they will take simplification forward in the future. This should be done with a clear regard to boosting productivity and growth.

Fuel duty

Small firms, especially those in rural areas are disproportionately hit by the cost of fuels. Continuing to freeze fuel duty will be welcomed by small firm still struggling with the cost of fuel at the pump.

John Allan, Chairman, Federation of Small Businesses

For the first time the Chancellor has finally admitted that his attack on the poorest and most vulnerable people in our communities isn’t actually about tackling the deficit. It’s all part of his push for a low tax low welfare society.

This is the work of an economically-illiterate Chancellor who is dead set on cutting, freezing and scrapping welfare to reach his target of £12bn cuts.

He’s demonstrating a cruel disregard for the impact this will have on hundreds of thousands of people’s lives. The sad truth is that far too many people can’t afford to feed and clothe themselves and their families, or keep a roof over their heads.

Taking money from the pockets of our poorest people will only plunge them deeper into poverty and increase inequality which will be a drag on the economy.

Setting the new statutory living wage at £7.20 for next year when the recommended living wage is currently £7.85 is just a headline-grabbing con. Combined with tax credit cuts it means that people will be worse off and only the Treasury will benefit.

The Chancellor and Prime Minister’s war on tax credits will back fire and will worsen poverty levels in the UK. We’re a rich country. It’s utterly senseless that we’re treating people like this.

John Downie, Director of Public Affairs, Scottish Council for Voluntary Organisations (SCVO)

Greens on Greece: ‘a crisis caused by the rich’

Greens stand with people of Greece as economic crisis deepens

The Scottish Greens have pledged to stand shoulder to shoulder with the Greek people in their fight against austerity. They have also urged both the UK and Scottish governments to put pressure on financial institutions to negotiate a fair debt restructure for Greece.

City councillor Maggie Chapman, Co-Convenor of the Scottish Green Party, said:
“We are in the midst of a crisis caused by the rich. The great economic challenge of our time is ending their power to punish the rest of us for a crisis we did not cause. Austerity is the mechanism they use and the place that has borne the brunt of austerity more than anywhere is Greece.

“We know austerity is doomed to fail, but in that failure it will only extend the economic pain felt by the most vulnerable people in society. All around Europe we must stand with the people of Greece in their stand against austerity, for a decent future and for democracy.

“The election of an anti-austerity SYRIZA led government in January was a clear signal that the people of Greece have rejected austerity. Greece’s creditors, represented by the so-called Institutions – the European Commission, the European Central Bank and the International Monetary Fund – are trying to subvert that democracy. Their actions have been counterproductive and destructive.

“After five and a half years of brutal austerity Greek debt is higher, while the Greek people have suffered untold harm.

“As a democratic party and a party opposed to austerity the Scottish Greens stand with the people of Greece. As Co-Convener of the Scottish Greens I stand in solidarity with my SYRIZA & Ecologist Greens comrades in the the Greek Government as they lead Europe’s opposition to austerity. We call on the Scottish and UK Governments to intervene with the Institutions to secure the substantial restructuring of Greece’s debts and an end to austerity.”

Budget is ‘last chance to change flawed economic policy’

Today’s UK Budget provides the last opportunity for the Chancellor to scrap his failed austerity measures Deputy First Minister John Swinney said today. He said the final budget ahead of the General Election should be focused on delivering economic growth by tackling inequality.

In his final call to the Chancellor ahead of the Budget the Deputy First Minister urged him to scrap his failed economic policy. In the June 2010 Budget, the Chancellor stated that the UK Government was ‘on track to have debt falling and a balanced structural current budget by the end of this Parliament’. He has failed on both measures. Rather than debt falling as a share of GDP in 2014-15, it is now forecast to continue rising. Likewise, instead of running a structural current budget surplus in 2014-15, the UK Government is now forecast to run a structural current deficit of almost £50 billion (2.7% of GDP).

Speaking ahead of the UK Budget John Swinney said: “The current UK Government’s economic policy is fundamentally flawed and is damaging Scotland’s recovery. Despite the deep spending cuts we have seen, the Chancellor has not achieved the deficit reduction targets he set himself in his first budget in 2010.

“Between 2009/10 – 2014/15, Scotland’s budget has fallen by around 11% in real terms, within this capital expenditure has fallen by around 34%. This means our budget has been cut by a staggering £3.5 billion in real terms since 2009/10.

“And it doesn’t stop there. Scotland’s cumulative share of the cuts to day-to-day public spending over the 5 years to 2019-20 is forecast to be worth around £14.5 billion compared to 2014/15 levels.

“There is an alternative. George Osborne can use today’s budget to stop these deep cuts and grow our economy instead.

“The Scottish Government is doing all it can, within its limited powers, to support Scottish finances. The latest Scottish GDP figures show the economy grew by 3.0 per cent over the year to Q3 2014 – the fastest annual rate of growth in seven years – while the number of people in employment has risen by 180,000 since its post-crisis low in Spring 2010 and is now at a record high of over 2.6 million.

“However, successive UK budgets and Autumn Statements have undermined the Scottish Government’s ability to support economic revival, particularly through the significant cuts the Chancellor has made to capital investment over the spending review period and, in some cases, the in-year reductions he has made to the Scottish Government’s published spending plans.

“In addition to our proposals on austerity, the Budget must also deliver a permanent shift to a more competitive and predictable north sea oil tax regime, which will allow investors to shift their focus away from fiscal risk and towards the significant investment opportunities that remain in the North Sea.

“The Scottish Government has set out three key priorities for fiscal reform at this Budget:

an immediate reversal of the 2011 increase in the Supplementary Charge;
an investment allowance to provide a simple, stable and more competitive fiscal regime; and
an exploration tax credit to help increase exploration and sustain future production.

“I hope that the Chancellor will have listened to reasoned proposals ahead of delivering his budget and that economic growth and tackling inequality will be given equal representation in this final budget before the General Election.”

The Chancellor will deliver his budget speech at 12:30.