Scotland’s economy: glass half full or half empty?

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Just how real is the economic recovery? For some, the future’s certainly looking brighter but for many more life continues to be a daily struggle … 

The economic recovery in Scotland is now becoming more embedded, Scotland Office Minister David Mundell said yesterday. Commenting on the latest Scottish Chambers of Commerce business survey, Mr Mundell also stressed that there was further work to be done.

Mr Mundell said: “As today’s Scottish Chambers of Commerce survey and other recent business surveys confirm, optimism amongst Scottish businesses continues to grow. Key performance measures have reached levels not seen since 2007 which is leading to more and more Scottish businesses looking to recruit new staff.

The manufacturing sector continues to show robust growth with investment at its highest level in six years and export orders increasing for five consecutive quarters.

“As part of the UK, Scotland is doing well. Whilst our economic recovery is becoming more embedded there is still much work to be done. The Budget set out the next stage of our long term economic plan, making it easier for Scottish businesses to invest, to take on new staff and excel on a global stage.”

With business confidence rising, The Scottish Chamber of Commerce sees a brighter economic future for Scotland, The business organisation released their Business Survey results for the first quarter of 2014 yesterday.

“The hard work and determination of Scottish businesses is yielding positive outcomes for the growth of Scotland’s economy. All the indicators in this survey point to sustained economic growth as key sectors increase investment to expand activity, boosted by higher levels of business optimism”, said Scottish Chamber of Commerce Chief Executive Liz Cameron.

“Investment intentions of Scottish businesses are encouraging with the manufacturing industry showing superb results with higher levels of investment than at any time in the past 6 years and robust growth in export orders shown by a consistent increase over 5 consecutive quarters. Whilst investment levels in the construction sector remain low, for only the second time in 5 years investment has not declined, and over 70% of businesses in the sector have either maintained or increased commercial and domestic orders compared with the last quarter. Promisingly, almost 90% of construction businesses surveyed expect employee numbers to remain the same or increase in the next 3 months and less than 14% reduced employment in the previous quarter.

“Higher levels of business optimism in construction, wholesale, retail and tourism is a positive signal for continued growth, as all sectors reported higher levels of confidence in Q1 2014 compared with the same quarter last year.

“However, despite these positive indicators, challenges still remain. The retail industry is expecting a decrease in profitability in 2014 which may point to stalled consumer confidence and seasonal patterns, but benefit may be drawn from positive growth in the tourism sector as confidence levels among hotels remained high and a rise in the use of conference facilities was also reported.

“The issue of skills shortages is becoming more prominent as businesses look to expand and invest. Businesses in the manufacturing sector are reporting difficulties in recruiting skilled & technical staff and the tourism sector are also reporting difficulties in recruiting managerial staff and chefs. It is vital that the organisations responsible for the development of skills provision, actively work with the business community to ensure employees are provided with the skills required to succeed.

“The buoyancy and optimism of Scottish businesses is to be commended but Governments in Scotland and the UK must facilitate opportunities for businesses to access affordable finance, particularly as cash flow remains a pertinent issue for businesses in construction and manufacturing. Alongside this, efforts to export internationally must be strengthened by policy makers to enable Scottish businesses to take advantage of global trade opportunities.”

However other senior figures believe the latest figures don’t tell the whole story and that much still needs be done – particularly for the lowest paid.

Responding to the latest Labour Market and GDP statistics Scottish Trades Union Congress (STUC) General Secretary Grahame Smith said: “These figures include some more positive news on the Scottish labour market but confirm that recovery remains very slow. As some focus on the level it is important to stress that the employment rate – a significantly more accurate measure of the health of the labour market – remains fully 3.5% below its pre-recession peak.

“Youth unemployment continues to stagnate at a high level with the unemployment rate for 16-24 year olds falling by only 0.1% in the year to December. We also know that far too many of the jobs that are being created are low paid and insecure whilst the number of those needing more hours at work to make a decent living remains far too high.

“STUC is not unduly concerned by the fact that Scottish GDP growth in the last quarter of 2013 was much lower than for the UK as a whole. We expect growth to catch up in the subsequent quarter. Far more concerning is the overall lack of evidence of economic rebalancing in Scotland and across the whole of the UK.”

And earlier this week The Trussell Trust, the UK’s largest foodbank network, reported that over 900,000 adults and children have received three days’ emergency food and support from Trussell Trust foodbanks in the last 12 months, a 163 per cent rise on the previous year’s numbers. The charity says that despite signs of economic recovery, the poorest have seen incomes squeezed even more than last year and more people are being referred to foodbanks than ever before.

The Trussell Trust’s Chairman, Chris Mould, said: ‘That 900,000 people have received three days’ food from a foodbank, close to triple the numbers helped last year, is shocking in 21st century Britain. But perhaps most worrying of all this figure is just the tip of the iceberg of UK food poverty, it doesn’t include those helped by other emergency food providers, those living in towns where there is no foodbank, people who are too ashamed to seek help or the large number of people who are only just coping by eating less and buying cheap food.

“In the last year we have seen things get worse, rather than better, for many people on low-incomes. It’s been extremely tough for a lot of people, with parents not eating properly in order to feed their children and more people than ever experiencing seemingly unfair and harsh benefits sanctions.

“Unless there is determined policy action to ensure that the benefits of national economic recovery reach people on low-incomes we won’t see life get better for the poorest anytime soon.

“A more thoughtful approach to the administration of the benefits regime and sanctions in particular, increasing the minimum wage, introducing the living wage and looking at other measures such as social tariffs for essentials like energy would help to address the problem of UK hunger.”

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‘Moral case’ for welfare reforms is a sham, says Minister

The UK Government’s “moral case” for welfare reform is harming the living standards of poor and vulnerable people in Scotland, Welfare Minister Margaret Burgess said yesterday. Trussell Trust figures show that over 50,000 people in Scotland received assistance from their foodbanks in the last ten months.

Mrs Burgess highlighted her concerns to MSP’s during a welfare reform debate in the Scottish Parliament, where she said that the current reforms are creating deep concern and anxiety and is leaving already vulnerable people at risk of extreme poverty and exclusion.

The Scottish Government estimates that the reduction in welfare expenditure in Scotland could reach as much as £4.5 billion by 2015.

Margaret Burgess said: “The reforms are unfair and unjust and impact on some of the most vulnerable members of our society. Yet, even with all of that, the UK Government talks about the ‘moral case’ for welfare reform. It is a sham.

“What is evident is that more and more people are struggling to cope and being flung into a downward spiral of misery. Where is the morality in that? It is shameful that in the 21st century, there are people in Scotland who are in desperate straits because of the UK’s relentless and unfair policies. Rather than help, the UK Government’s plans are punishing the most vulnerable in our society.

“In the meantime, the Scottish Government is taking direct action and delivering real support to help people deal with the cuts and changes to welfare provision. That includes investing at least £258 million over the period from 2013-14 to 2015-16 to mitigate the worst impacts of these reforms.

“But these are resources that have been taken away from other areas, money that could have been used for other priorities. For example we could have used this money to invest more in health and education for our people – and in growing Scotland’s economy. With independence, we can take decisions about welfare that will ensure fair and decent support for people in Scotland.”

Ewan Gurr, Scotland Development Officer for the Trussell Trust said: “While The Trussell Trust celebrates the ways in which communities pull together in lean times to respond to emerging need, we do not celebrate the fact the need exists in the first place.

“Foodbanks are a grass-roots response to a systemic problem and are often a lifesaver to many individuals and families who feel they have nowhere else to turn. We applaud the consistent efforts of the Scottish Government to mitigate the effects of food poverty and to raise the profile of this issue in an effort to identify creative solutions.”

However The Department for Work and Pensions said the government’s welfare reforms will make three million households across the UK better off, and refutes claims that welfare reforms have caused increased dependency on food banks. A spokesperson for DWP said: “The benefits system supports millions of people who are on low incomes or unemployed and there is no robust evidence that welfare reforms are linked to the increased use of food banks.”

Last month Prime Minister David Cameron told the Daily Telegraph that the government’s economic plan for Britain was ‘about doing what is right’. He wrote: ‘For me, the moral case for welfare reform is every bit as important as making the numbers add up.’

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Wake up call: one family in five struggle to feed their children

foodbank2One in five UK families can’t afford to feed their children, according to new research published jointly by Fareshare, the Trussell Trust and Tescos.

The research highlights the biggest ever increase in UK foodbank use and a 170% rise in numbers turning to foodbanks in the last twelve months. The Tressell Trust found that 100,000 more people than anticpated were given emergency food, and the charity says this must be a ‘wake-up call to the nation’.

Trussell Trust foodbanks have seen the biggest rise in numbers given emergency food since the charity began in 2000. Almost 350,000 people have received at least three days emergency food from Trussell Trust foodbanks during the last 12 months, nearly 100,000 more than anticipated and close to triple the number helped in 2011-12.

Rising cost of living, static incomes, changes to benefits, underemployment and unemployment have meant increasing numbers of people in the UK have hit a crisis that forces them to go hungry. This dramatic rise in foodbank usage predates April’s welfare reforms, which could see numbers increase further in 2013-14.

346,992 people received a minimum of three days emergency food from Trussell Trust foodbanks in 2012-13, compared to 128,697 in 2011-12 and up from 26,000 in 2008-09. Of those helped in 2012-13, 126,889 (36.6 percent) were children.

The Trussell Trust has seen a 76% increase in the number of foodbanks launched since April 2012 but has seen a 170% increase in numbers of people given emergency food. Well- established foodbanks that have been running for several years are showing significant rises in numbers helped during the last 12 months. Christian charity The Trussell Trust is launching three new foodbanks every week to help meet demand and has launched 345 UK foodbanks in partnership with churches and communities to date.

Trussell Trust Executive Chairman Chris Mould said: ‘The sheer volume of people who are turning to foodbanks because they can’t afford food is a wake-up call to the nation that we cannot ignore the hunger on our doorstep. Politicians across the political spectrum urgently need to recognise the real extent of UK food poverty and create fresh policies that better address its underlying causes. This is more important than ever as the impact of the biggest reforms to the welfare state since it began start to take effect. Since April 1st we have already seen increasing numbers of people in crisis being sent to foodbanks with nowhere else to go.’

He continued: ‘Last year The Trussell Trust estimated that our foodbanks would help 250,000 people in 2012-13, we’ve helped 100,000 more than that. 2012-13 was much tougher for people than many anticipated. Incomes are being squeezed to breaking point. We’re seeing people from all kinds of backgrounds turning to foodbanks: working people coming in on their lunch- breaks, mums who are going hungry to feed their children, people whose benefits have been delayed and people who are struggling to find enough work. It’s shocking that people are going hungry in 21st century Britain.’

Only four per cent of people turned to foodbanks due to homelessness; 30% were referred due to benefit delay; 18% low income and 15% benefit changes (up from 11% in 2011-12). Other reasons included domestic violence, sickness, refused crisis loans, debt and unemployment. The majority of people turning to foodbanks were working age families.

Over 15,000 frontline care professionals such as doctors, social workers, schools liaison officers and Jobcentre Plus referred their clients to foodbanks in 2012-13. Foodbanks are community driven with an estimated 30,000 volunteers giving their time across the UK. Over 3,400 tonnes of food was donated by the public in 2012-13.

Chris Mould added: ‘Whilst it’s deeply concerning that so many people are facing hunger in the UK, the evident willingness of the public to help their neighbours through foodbanks has prevented thousands of crises escalating into disaster. We regularly hear people say that ‘the foodbank saved my life’ and it’s local communities that make that possible.’

ChildPovertyResponding to these statistics, Citizens Advice Scotland’s Chief Executive Margaret Lynch said: “Sadly these figures won’t come as a surprise to anyone who has worked in a Scottish CAB. Right across the country, our advisers are having to deal every day with people who are struggling to make ends meet, and increasing numbers whose situation is so bad that they and their families are living in real poverty.

“In just the last three months Scottish CAB advisers saw nearly 300 people whose situation was so bad that they had to be referred to a food-bank or other form of emergency support. That means they literally could not afford to feed themselves that day, nevermind pay the rent or heating bills. It is no longer unusual for a CAB to deal with such a case.

“It’s very important to understand that the recession is not the only reason for this. The UK government’s welfare reforms have also had a devastating impact on many people throughout Scotland – and those who have suffered most are those who were on the lowest incomes to begin with. These include sick and disabled people as well as families with young children.

“Such people were hit hard by the recession, and many of them have then seen their benefits cut as well. Figures like those published today are the inevitable result. Many people in our society are now living in poverty, and are finding they can’t rely on the welfare safety net that is supposed to support them.”

A helping hand at North West Foodbank

foodbank_logo_Edinburgh-NW-logo[1]With little sign of the recession ending any time soon families are finding it increasingly hard to make ends meet. Wages, for those who do have a job, are not keeping up with rising prices and for those on benefits – well, it’s never been tougher and with more reforms in the pipeline it’s going to get tougher still.

One sign of this is the growing dependency on foodbanks – for some families it’s become the only way to put food on the table. Figures released by The Trussell Trust show that the current economic climate is seeing many more people struggle to put food on the table, including families who are in work. Over 45,000 children were fed by foodbanks in 2011-12, while the numbers of adults and children fed nationwide increased from 61,468 in 2010-11 to 128,697 in 2011-12.

For many foodbank clients, the rising cost of food and fuel combined with static incomes, high unemployment and changes to benefits have forced them into a crisis where they cannot afford to eat.

The latest addition to the growing number of foodbanks opened recently – in Edinburgh North West. 

How do foodbanks work? Foodbanks operate through food donated at ‘Supermarket Collections’.  Foodbank volunteers engage shoppers at supermarkets and give them a ‘foodbank shopping list’, asking them to buy an extra item with their regular shop, which is then donated to the foodbank. Schools, churches, businesses and individuals also donate non-perishable, in-date food to the foodbank – all food given out by foodbanks is donated.

Once collected, the food is sorted by volunteers who check it’s in date and pack it into boxes ready to be given to people in need. Care professionals – doctors, health visitors, social workers, Citizens Advice Bureau staff, welfare officers, the police and probation officers, amongst others – identify people in crisis and issue them with a foodbank voucher.

Foodbank clients bring their voucher to a foodbank centre where it can be exchanged for three days supply of emergency food. Volunteers meet clients over a cup of tea or free hot meal and are able to signpost people to agencies able to solve the longer-term problem.

Like many organisations in this cash-straitened times, foodbanks rely on the generosity of volunteers. How you can help? Your gifts of time, funds or food could help stop local people going hungry – and there are lots of ways you can help. For further information see the Edinburgh North West Foodbank website at:

http://edinburghnw.foodbank.org.uk

The Edinburgh NW Foodbank is now open.

Crisis food packs with a referral from frontline care agencies and charities only.

For enquiries, please telephone 0131 202 9130

Email: info@edinburghnw.foodbank.org.uk

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