Holyrood votes to end Right to Buy

cooncilhooses

The Scottish Parliament has voted to end the right to buy social housing. The Housing (Scotland) Bill passed at Holyrood yesterday will prevent the sale of up to 15,500 social houses over the next ten years and support improvements to the private rented sector. Housing charities have welcomed the decision.

The Bill will end the Right to Buy social housing in Scotland over the next two years, giving tenants time to consider their options and find financial advice if they want to exercise their right to buy their home

The legislation will establish a private rented sector tribunal which gives tenants and landlords access to specialist justice and allow them to resolve disputes more effectively.

Changes to mobile home site licensing will also improve the rights of over 3,000 households, many of whom are elderly, living permanently in mobile or park homes across Scotland.

Other measures in the Bill include introducing a regulatory framework for letting agents and giving local authorities new discretionary powers to tackle poor housing conditions in the private sector.

Housing Minister Margaret Burgess said: “This is a historic day for housing as it marks the end of Right to Buy social housing in Scotland.

“Stakeholders from across the sector have given this legislation widespread support as they recognise that we have put together a package of measures which will help improve housing in the social, private rented and owner-occupied sectors.

“Today I put forward a number of amendments to the letting agent provisions in the Bill to provide a robust regulatory framework that will ensure consistent and high standards of service for tenants and landlords across Scotland.

“I am very grateful to all those who have contributed their views on the Bill over the last nine months and more. But legislation is only one of many actions that this Government is taking to improve housing in Scotland.

“This government continues to invest in affordable housing. Earlier this week the First Minister confirmed we have invested £1 billion in affordable housing since April 2011, putting us well on track to delivering an additional 30,000 homes across Scotland by March 2016. This investment is supporting 8,000 jobs in each year of the five-year parliamentary term.

“This Bill is a landmark step forward for housing. With the full powers of independence we will have greater control to tailor our grants and housing supply investment, and to integrate housing and welfare policies to meet the needs of our communities and the homebuilding industry in Scotland.”

Margaret Thatcher’s Conservative Government introduced the right to buy policy in 1980 and it has proved to be very popular in Scotland – around 534,000 tenants have taken advantage of the scheme to purchase their homes at a discounted rate from their local council or social landlord.

But while Right-to-Buy was a hit with buyers, the loss – and non-replacement – of prime social housing has meant even longer waiting lists for tenants, and housing charities and social housing organisations have welcomed the decision to scrap the scheme.

The Scottish Federation of Housing Associations’ Andy Young said the Right-to-Buy policy had ‘no place in 21st century Scotland’.

“Right-to-buy has been beneficial to a relatively small number of individuals, but clearly a loss to the greater public good”, he said. “Around 500,000 social rented homes have been lost in the 35 years of this policy in Scotland, very often the better stock in the more popular areas.”

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Housing payment cap powers to be transferred

More help for 72,000 Scottish households 

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Thousands of Scots families can be given more ‘Bedroom Tax’ assistance following discussions between the Westminster and Scottish governments. The UK government has offered to transfer power over the housing payment cap to Holyrood, it was announced yesterday.

Housing help for people on benefits – known as Discretionary Housing Payments (DHPs) – is currently reserved to Westminster and administered by local authorities in Scotland. This power will now transfer to Scotland, however, and the Scottish Government is now urging Westminster to transfer these powers as soon as possible.

The Scottish Government has already spent up to the previous legal limit in order to mitigate the effects of the ‘Bedroom Tax’. Once the powers are transferred, a total of £50 million can be invested to help the 72,000 households in Scotland who are suffering from the effects.

Welcoming the news, Deputy First Minister Nicola Sturgeon said:

“We had already set aside the money to be able to help every household in Scotland affected by the ‘Bedroom Tax’ – once we have the powers, we will be able to use it and provide vital assistance to thousands of hard-pressed Scots.

“I am delighted that in future anyone who has been affected by this unfair policy will receive the help they need and would encourage them to contact their Local Authority to apply for assistance through the DHP scheme.

“We will never turn our back on people in need, and I am pleased to finally be able to get on and help people. But the fact is that this decision has taken far too long. We have been pressing since January for Iain Duncan Smith to remove this cap – and at last Westminster has seen sense and have given us what we requested. We will now work to ensure the law is changed as quickly as possible.

“The DHP scheme is the only legal way – under the powers that Scotland currently has – to provide regular financial payments to people on housing benefit. But the only way to get rid of the ‘Bedroom Tax’ for good is through the powers of an independent Scottish Parliament.

“We know that Scots want welfare decisions to be made and taken by the Scottish Parliament. The ‘Bedroom Tax’ has been rejected by people right across Scotland, yet is still being imposed on us by the UK Government.

“With independence we will have the opportunity to create a welfare system that really works for us.”

However the UK Government says that their willingness to transfer the power to set the cap on Discretionary Housing Payments (DHP) in Scotland demonstrates a ‘commitment to taking a pragmatic approach to devolution and to engaging intensely with local authorities in Scotland.’

In a letter to Nicola Sturgeon, Scotland Office Minister David Mundell has offered to transfer the power to the Scottish Government through a Section 63 Order which will require the agreement of the UK and Scottish Governments before being approved by both the UK and Scottish Parliaments.

If the Scottish Government chooses to accept this offer, it will have the flexibility to pass on more funding from its existing block grant to local authorities – it will be up to to the Scottish Government and local authorities how they choose to allocate their money.

As things currently stand, DHPs can be used by local authorities across Great Britain to provide additional funding for people in receipt of housing benefit who need extra support. At present each local authority must operate within a formula-based spending cap set by the Department for Work and Pensions. The proposal from the UK Government would mean that the Scottish Government would have the power to set the DHP cap for Scottish local authorities in future.

Mr Mundell said: “I have completed a programme of visits to all Scottish local authorities and believe that transferring this power to the Scottish Government is the correct thing to do.

“The UK Government believes in taking a pragmatic approach to devolution and we believe in a United Kingdom that gives Scotland the best of both worlds. I hope that officials from both governments will now be able to take this forward.”

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Alexander urged to ‘come clean’ on assets share

As we confidently predicted yesterday (!) (see ‘Fantastical’), John Swinney was quick to counter Danny Alexander’s pronouncements on how an independent Scotland’s economy would shape up. Sadly the Holyrood Finance Secretary’s response made no reference to the forthcoming Eurovision Song Contest …

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Finance Secretary John Swinney said any claims about Scotland’s finances from the UK Government must include details on Scotland’s share of UK assets worth nearly £1.3 trillion.

Mr Swinney said the Chief Secretary to the Treasury has recently admitted to the Scottish Parliament that Scotland will inherit a share of UK assets.

He said billions of pounds could be paid to an independent Scotland in cash as many of the assets paid for by Scottish tax-payers will be physically located in the rest of the UK.

Mr Swinney said: “Danny Alexander has said the UK Treasury is examining the finances of an independent Scotland.

“We already know Scotland is one of the wealthiest countries in the developed world and that over the past 5 years our public finances have been healthier than the UK’s to the tune of around £1,600 per person.

“To have a shred of credibility any Westminster analysis should also set out in detail the assets that will be due to Scotland in the event of a vote for independence in September.

“As part its campaign rhetoric we know the UK Government talks about Scotland’s share of the debt run up by successive Westminster Chancellors. It cannot be taken seriously if does not also talk about Scotland’s share of assets.”

“Scotland’s share of UK assets will be realised in a combination of ways – through physical assets, cash transfer and continued use of assets through shared service agreements.

“Assets located elsewhere in the UK will be included in negotiations, as Scotland has contributed to their value over a long period of time. For physical assets like these, the equitable outcome may be to provide Scotland with an appropriate cash share of their value.

“We note with interest preliminary analysis by academics suggesting that on defence alone Scotland may be entitled to draw upon a notional sum of nearly £5 billion for physical assets located elsewhere

“The apportionment of the UK national debt will be negotiated and agreed as part of the overall settlement on assets and liabilities.

“On any reasonable scenario, because national income per head is higher in Scotland than the UK, an independent Scotland will have a lower debt burden as a share of GDP than the UK.

“Both the Scottish and UK Governments have signed the Edinburgh Agreement which commits both governments to working together on matters of mutual interest, good communication and mutual respect.

“The two governments have also said they will work together constructively, whatever the result, so we can expect these matters to be worked out in that spirit of mutual respect and co-operation.”

BUCKS FIZZ: Not mentioned in Swinney speech
BUCKS FIZZ: Not mentioned in Swinney speech

 

‘Fantastical’ referendum myths must be debunked – Danny Alexander

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It is time to debunk the calculations and claims that have been put forward by the Scottish government in this referendum, Chief Secretary Danny Alexander will say in a keynote speech to business leaders in Edinburgh today (30 April). And while Europe is a clearly a relevant referendum issue, the Eurovision Song Contest gets a mention for the first time!

Speaking on the day of publication by HMRC of new oil revenue data and ahead of publication of the Westminster government’s most comprehensive analysis of the fiscal consequences of separation yet, the Chief Secretary will challenge some of the ‘myths’ perpetuated by nationalists and call on the Scottish Government to be honest with people about the cost of independence.

He will also call on the Scottish government – and Finance Secretary John Swinney – to publish revised and realistic forecasts of oil and gas revenues.

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Danny Alexander (pictured above) will say:

“The nationalists’ assertions on Scotland’s finances are at best ill-informed and at worst, deeply misleading to Scottish voters. The fact is that their £1.5 trillion figure for the value of oil left in the North Sea doesn’t include any costs for getting the oil out of the ground and into the petrol pump.

“Over the whole 5 year period of the Scottish government’s Oil and gas bulletin [2012 to 2017], their most cautious forecast for Scottish oil and gas revenues is £41 billion. Yet the independent Office for Budget Responsibility forecasts that whole UK revenues will be just £25 billion over the same period. It doesn’t matter how deep you drill into the figures, they simply don’t add up. The indisputable point is that we are better off together.

“It is time for the Scottish government to confirm what we all know: that the White Paper was wrong, to correct the discredited Oil and gas bulletin and the errors at the heart of the White Paper. The Scottish government must confront the fact that it is promising tax revenues and public spending that it cannot deliver. It should revise its oil and gas forecasts or better yet, follow international best practice and follow an independent forecast like the OBR’s. It is the very least that the Scottish voters deserve.

On the ‘myths’ perpetuated about independence, Mr Alexander will say:

It’s perhaps true that the Referendum campaign here in Scotland hasn’t provided many laughs so far and given both the enormity – and the irreversibility – of the choice we face, that is perfectly understandable. But as the campaign continues, when it comes to some of the statements and assertions made by nationalists, you really do need a sense of humour.

On some of the basic financial assumptions made in the White paper, he will say that the nationalists ‘ignore the reality, that when the financial crisis hit, it was the government of the United Kingdom that stepped in to recapitalise RBS and HBOS and the taxpayers of the United Kingdom that extended £275 billion of total support to RBS alone’.

On currency, he will challenge the: “…continued, belligerent, assertion that Scotland could – and would – keep the pound. Alex Salmond has to face up to the fact that the rest of the UK does not have to – and would not want to – continue to share the credit card.”

And on UK institutions, he will say: “There is also the fantastical claim, made in the White Paper that an independent Scotland would share a third of the UK’s institutions and services despite the fact that this is completely unprecedented anywhere in the world. This is a claim we have to listen to whenever an institution crops up that the nationalists haven’t had time to think about.

“So it won’t surprise me if next Saturday night Alex Salmond declares that an independent Scotland will share the UK’s automatic place in the final of the Eurovision Song Contest!”

BROTHERHOOD of MAN: Eurovision no more?
BROTHERHOOD of MAN: Eurovision no more?

The Treasury’s forthcoming fiscal analysis will set out the benefits of the UK and the costs of independence. In the absence of any detailed costings from the Scottish government, Treasury economists have spent months analysing data and forecasts and consulting with independent bodies to calculate in detail the figures that illustrate the benefits of the UK and the cost of independence.

That analysis will be published in coming weeks – but John Swinney’s response to Danny Alexander’s assertions will come considerably quicker than that. Nil points is a fair guess! 

Cross-border skirmish marks St George’s Day

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What’s Scottish independence got to do with the English, anyway? Well, quite a lot according to Prime Minister David Cameron. Mr Cameron chose St George’s Day to launch a passionate defence of the union, but in the evening Scottish First Minister Alex Salmond launched a cross-border raid to assure our neighbours that social and business links will remain as strong as ever …

David Cameron relected on England’s role in the United Kingdom in his St George’s Day message. The Prime Minister said: “I want to send my best wishes to everyone celebrating St George’s Day. Up and down the country – including here in Downing Street – the flag of St George is flying high and celebrations – from the archaic to the eccentric – are taking place:

“In Plymouth – a patriotic festival; in London – a great feast in Trafalgar Square; in Leicester – a medieval re-enactment; and in Worcestershire – an annual ‘asparagus run’, to welcome the new harvest.

“St George has been England’s patron saint since 1350. But for too long, his feast day – England’s national day – has been overlooked. Today, though, more and more people are coming together on or around April the 23rd, eager to celebrate everything it is to be English. And there is much to celebrate. Because this is a country whose achievements in industry, in technology, sport, music, literature and the arts – they far outweigh our size.

Our counties and cities are known the world over:

In America, where Newcastle Brown Ale is the most imported ale; in China, where the most popular international football team is from London: Arsenal; in Australia, where they go mad for a Cornish cuisine – the humble pasty; in South Korea, where Yorkshire-set Downton Abbey is a TV favourite. And across the globe, where the best-selling band is from Liverpool: the Beatles.

“This St George’s Day, I want us to reflect on one of England’s greatest achievements: its role in the world’s greatest family of nations – the United Kingdom. In just 5 months, the people of Scotland will go to the polls and decide whether they want to remain a part of this global success story. So let’s prove that we can be proud of our individual nations and be committed to our union of nations. Because no matter how great we are alone, we will always be greater together.

So once again, to everyone across England, I’d like to wish you a very happy St George’s Day.”

Alex Salmond did not miss an opportunity to reaffirm Scotland’s commitment to our friends across the border. The First Minister said that Scotland will not wait until independence day to strengthen Scotland’s relationship with the north of England and celebrate ‘the ties that bind the nations of these islands’ following September’s independence referendum.

In a St George’s Day speech delivered in the shadow of Carlisle Cathedral, Mr Salmond told the invited audience of business people that a successful Scotland will become a new beacon of growth to the north, shifting the centre of economic gravity of these islands and preventing the flow of power, wealth and talent flow downhill to the south east.

He said independence for Scotland would cause an economic rebalancing of Britain and the Scottish Government would refuse to wait 30 years for high speed rail to be delivered by Westminster and instead will commission a feasibility study on work on HSR beginning from the north heading south. The Scottish Government will also push forward its responsibility to make improvement to the West Coast rail line north and improve the transport connectivity between Carlisle and the south west of Scotland, creating a ‘a conurbation of connectivity’.

Announcing the study, the First Minister said: “The vision – of these border lands as hubs – requires the transport connectivity to link Scotland and the north of England more effectively together.

“The UK’s current plans for high speed rail lack high ambition – for Scotland and for the north of England. They also lack speed – they may not reach Manchester and Leeds, let alone Carlisle, until 2032. Indeed even Sir David Higgins, who is in charge of delivering the project, has expressed concern about that current timescale.

“But since 2007, rail travel has increased by 144% between London and Glasgow; by 191% between Manchester and Scotland; and by 261% between Birmingham and Scotland. Demand for freight is also increasing, but line capacity is constrained.”

The First Minister continued:

“But by the time high speed rail first came to the UK, when the Eurostar link was completed, the regions weren’t served at all. There was no further development of services beyond London. In fact, a report by the House of Commons Transport Select Committee pointed out that “The acquiescence of Members of Parliament to the Channel Tunnel Act 1987 depended on the provision of regional services.” Its view was that “The regions have been cheated.”

“And we have seen in the last ten years that the major upgrade to the West coast Main Line focused on Southern parts of the line. We then missed the opportunity for faster services to the north because the UK Government’s procurement process for the InterCity West Coast franchise collapsed. That piece of incompetence which cost taxpayers £50m. At the moment, we may have to wait for refranchising in 2017 to see a significant improvement.

“To summarise, under Westminster control, high speed rail won’t come to Carlisle for decades. The west coast line doesn’t get upgraded, and the franchise process collapses. The east coast line has seen consistent failures of operators – and when they do have a public operator which works, their answer is to change the franchise!

“By comparison, I am pleased to report that our two rail franchise procurements are proceeding well and on schedule. And we’re keen to get on with making major improvements to connectivity.

“We are already working with the UK Government to prepare joint plans for high speed rail links between England and Scotland. Initial findings from this review are due in the summer. And we are taking the initiative within Scotland – detailed planning is being undertaken for a high speed service between Edinburgh and Glasgow, which could link to high speed lines from England. The business case for that Edinburgh to Glasgow link will be sent to Scottish Ministers in a few weeks.

“An independent Scotland could do more. Rather than paying our share of the borrowing costs for high speed rail, as we wait decades for it to spread up from the south, we can use that money to build high speed rail from the north instead.

“It’s time to take positive action. I can confirm today that the Scottish Government will build on the joint work we are undertaking with the UK Government. We will establish a feasibility study to explore in detail the options for building high speed rail from Scotland to England. In doing so, we will work closely with partners across the UK, especially in the north of England. Of course we can’t determine the route, until we undertake the feasibility study. But it is a statement of intent.

“I want to draw a brief comparison. In the north of Scotland, we are investing to reduce the time it takes to travel between Aberdeen and Inverness. We’re doing that because we want to create a conurbation of connectivity across that part of Scotland. In a similar way, we can develop a conurbation of connectivity between Carlisle and the south west of Scotland.

“That way, a prosperous Carlisle and Cumbria will benefit south west Scotland, just as a prosperous Scotland will benefit the north of England.

“These rail projects could have the potential to bring huge benefits for all of us. But they require an initiative and impetus which is more likely to come from a Scottish Government whose main population centres are within 100 miles of here, than from a Westminster Government based 300 miles away.”

The First Minister’s commitment to closer cooperation between an independent Scotland and the border lands of England will also be recognised through a forum to forge strong economic links for those both north and south of the Border with a dedicated lead minister post-independence.

During the speech, the First Minister told a gathering of business people that a railway line from London to Manchester and Leeds would bring £3 billion benefit to Scotland – but a full High Speed Rail connection would bring £24 billion and lead a major shift from air to rail.

Concluding, the First Minister said:

“I look forward to a future of close collaboration between an independent Scotland and the north of England – in a partnership which will be good for Scotland, good for the north of England, and good for all of the nations of these islands. Happy St George’s Day. ”

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Malcolm Chisholm to step down

Lesley Hinds to contest North and Leith

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Popular Labour MSP and former health minister Malcolm Chisholm has confirmed that he will step down at the next Holyrood election. The member for North and Leith said that representing his local area for over twenty yeats has been the ‘greatest privilege of his life’.

It’s been known for some time that the former teacher – who has represented the constituency at both Holyrood and Westminster for over twenty years – has been planning to retire, and  he’s now officially confirmed that he will not contest the next Holyrood election.

Macolm Chisholm said:: “”Politicians sometimes say they want to spend more time with their family, and in this case it is true, as I have young grandchildren who play a big part in my life.

“I have served as the MP and then MSP for our area for over 20 years, and we’ve seen huge progress in that time but there is still a great deal more to do.

“I can think of nobody who is better placed than Lesley Hinds to campaign on the issues that matter to local people and hopefully to represent the constituency in the Scottish Parliament in due course.”

Inverleith councillor and former city Lord Provost Lesley Hinds has been selected to contest the Holyrood seat for Labour in 2016.

She said: “Malcolm Chisholm has been an outstanding public servant for our area, both as our MP and MSP, and we wish him a long and happy retirement when he steps down in 2016. I know he will be working hard every single day until then.”

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Game show to replace Referendum Special?

 ‘Referendum makes for tedious television’

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 There has been a furious reaction to the BBC’s decision to replace ‘serious’ coverage of the Scottish referendum debate with a referendum game show. First Minister Alex Salmond says it is a slap in the face for democracy but BBC chiefs claim they are simply giving viewers what they want.

BBC chiefs had originally planned a series of factual programmes and documentaries in the run-up to the September referendum, supplemented by three set piece debates on the week of the big vote itself. A through the night Referendum Special, jointly hosted by ‘dream team’ David Dimbleby and Jackie Bird, was also scheduled.

However BBC bosses have decided instead to scrap the lot and will now air ‘The Yes No Show’, a light-hearted game show in which will give viewers an ‘alternative opportunity’ to cast their vote on Scotland’s future.

A BBC spokesman said: “I’ve only ever been to Scotland for the Edinburgh Festival but chums tell me the natives up there are getting decidedly restless – lots of anger, claim and counter-claim and the level of debate has been decidedly dire. Wasn’t it P.G.Wodehouse who said: ‘’It has never been hard to tell the difference between a Scotsman with a grievance and a ray of sunshine’?

“Well, after careful consideration we thought it might be helpful to diffuse some of the heat by screening a game show that the whole family can enjoy – and not only the Jocks, either! Plans are at an advanced stage and we are really excited about the new show – we reckon it’s a real winner and we believe the public will really take to the format of the show”.

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All-round entertainer Dale Winton (pictured above) has been approached to front the referendum show. “I feel sorry for the Scotch, I really do – I mean, really – ‘yes’, ‘no’, sometimes there’s just too much choice! Their heads must be buzzing, it’s no wonder they get so angry and aggressive! I’m sworn to secrecy about the details of The Yes No Show, it’s all very cloak and dagger but very exciting. I’d really love to spill the beans but I’ve been warned that if I say anything at all I’ll be trussed up by the Trossachs, so for the moment at least I’m keeping mum!”

It’s understood that famous Scots entertainers like The Krankies, John Barrrowman, Susan Boyle and Sir Sean Connery were ruled out at an early stage as they are seen as ‘too Scotch’, but as a sop to nationalists ‘Go Compare’ tenor Wynne Evans, who was born in Carmarthen near Glasgow, has been pencilled in for a guest slot.

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Another big name to miss out is showbiz legend Sir Bruce Forsyth (pictured above). The self-styled superstar of light entertainment was said to be devastated at missing out on the referendum special. “Bitter? Me? Never. It’s their loss – I’m probably the only all-round entertainer and variety superstar who was alive at the Treaty of the Union. I remember the Glasgow Empire – if they like you they let you live! – and the Jocks loved me, they just couldn’t get enough. Up there, they show their appreciation by throwing missiles onto the stage and goodness, was I bombarded that night? The more gags I cracked, the more the bottles rained down. Wonderful, wonderful memories as I remember saying to the ambulance driver”.

Forsyth went on (and on): “They had a few good comics of their own, like Harry Lauder, Will Fyfe and Little David Steel, but none in my league and I ask you – where are they now? And did any of them come up with a memorable catchphrase like ‘Nice to see you, to see you nice’? I don’t think so. Bitter? Keep dancing, that’s what I say”.

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The highlight of the show is expected to be a surprise guest appearance by two former Prime Ministers. An entertainment insider said: “Double acts have always been very popular – Laurel and Hardy, Abbot and Costello and Cannon and Ball, for example – and we think we’ve unearthed two more comedy greats in Tony and Gordon. We’ve dubbed them the Prime Ministers of Mirth and we think viewers will be blown away. Tony is a natural who can turn his hand to anything, but it’s Gordon who really steals the show. In one sketch Gordon has to hit Tony over the head with a large plank of wood – and we had to redo this take twelve times because everyone was laughing so much, particularly Gordon! Well, maybe not everyone – Tony was a bit miffed but he soon cheered up when we confirmed the details of his fee! He told us he’s going to speak to Ken Dodd for some tax advice and asked to be paid in used notes – what a guy!”

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The sketch – ‘Mr Brown’s Boys’ – is also expected to feature Douglas Alexander, Jim Murphy and Lord Foulkes as Granddad, and the ladies aren’t forgotten – Margaret Curran and Johann Lamont have confirmed that they will be taking part.

However while some politicians see the show as just a bit of fun some Holyrood politicians are furious that referendum coverage is to be scaled back and are particularly scathing about the game show phone vote plans.

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Scotland’s First Minister Alex Salmond said: “This decision is almost beyond belief and it shows the depths to which the Londoncentric BBC has plummeted – it takes ‘dumbing down’ to a whole new level. Perhaps the BBC is punishing Scotland for River City and our Hogmanay Specials, but this is a step too far. I have nothing against Dale Winton, or any other orange people – indeed I remain a huge fan of Supermarket Sweep – but the future of our nation cannot be decided by a phone-in during a game show, no matter how entertaining that game show may be. Scotland deserves better”.

A spokesperson for the Electoral Reform Society was less dismissive, however. “Lots of people just can’t be bothered voting, and as we believe that as many people as possible should take part in the democratic process we welcome this bold initiative. Eyebrows have been raised about the cost of phoning in to register your vote, but everything costs money these days and let’s be blunt: poor people don’t normally vote anyway, and if they can’t afford to phone in but still want to vote they can troop down to their local polling station if they want to. More affluent viewers will have the opportunity of voting as often as they can afford without having to leave the comfort of their own armchair.

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“As we see it, you’ll get more people voting, which is great for democracy, and the premium rate phone numbers will boost the much-loved BBC’s income. It’s a win, win situation but we would remind voters – particularly younger callers – to get the bill payer’s permission before phoning in”.

He went on: “The BBC is clearly thinking outside the box – the box, geddit? – and we hope that this new form of engagement will encourage more people to participate. We think it deserves to be a success, and if it works in Scotland in September I’m sure it will be rolled out across the rest of the UK – I believe that’s happened before. This could be a bold new dawn, both for democracy and for public service broadcasting.”

It’s understood that STV are now also rethinking their referendum coverage. While refusing to comment on programme plan details, a senior executive confirmed: “What the BBC broadcasts is up to them. Our own plans are a closely-guarded secret and will remain so until nearer the time – October or November perhaps. Yes, we have been speaking to both Johnny Beattie and Ronnie Corbett but we talk to top showbiz celebrities all the time – some mischievous media people are clearly speculating, putting two and two together and coming up with four.”

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Six months to go: gamble or golden opportunity?

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With just six months to go until Scotland’s date with destiny the politicians have been having their say once again. To varying degrees the Better Together parties – Conservative, Labour and the Lib Dems – all now support the granting of further powers to the Scottish Parliament, the ‘Devo Max’ option, but the SNP and Greens argue that Scotland can only fulfill it’s potential through independence.

Prime Minister David Cameron told the Conservative Party conference in Edinburgh last weekend: “A vote for No is not a vote for no change. We are committed to making devolution work better still – not because we want to give Alex Salmond a consolation prize if Scotland votes No, but because it’s the right thing to do. Giving the Scottish Parliament greater responsibility for raising more of the money it spends – that’s what Ruth (Davidson) believes, and I believe it too.”

The prime minister added: “Here’s the re-cap. Vote ‘Yes’ – that is total separation. Vote ‘No’ – that can mean further devolution, more power to the Scottish people and their parliament, but with the crucial insurance policy that comes with being part of the UK.”

He was supported today by Scottish Secretary Alistair Carmichael, who said: “With just six months to go until voters make their choice in the Scottish independence referendum, voters need to remember that a referendum is not like an election. You cannot change your mind in five years’ time if you do not like the choice you make. Once the union with England, Wales and Northern Ireland has been unpicked there will be no going back.

“The UK has been the most successful social, political and economic union that the world has ever seen. The decision to end it is not one that any sensible person would want to take lightly.

“It’s important to realise that a vote for independence is a gamble – there are simply too many unanswered questions, particularly regarding currency, pensions and the economy. Why would anyone want to leave a successful union – which has helped Scotland prosper for generations – for such an uncertain future?

“That’s why, as a Scot, I appeal to all voters to get the facts and consider what is best for our future. And we also need to remember that it’s not just our future which is at stake – what kind of Scotland do we want our children and grandchildren to inherit?”

Scottish Labour chose to launch their devolution commission findings today. Introducing the report, Leader Johann Lamont said: “I set up Scottish Labour’s devolution commission because it was clear that while the majority of Scots want to stay part of the United Kingdom, they want a stronger Scottish Parliament.

“With colleagues from Holyrood, Westminster, the European Parliament, local government, the trade unions and party members, I wanted to have a debate about where power should best lie to serve the people of Scotland, so I am pleased to publish our plans to strengthen devolution today before putting them to our party conference on Friday.

“The commission has worked hard to ensure that our proposals are consistent with Scotland remaining strong in the United Kingdom but also give us the flexibility to do things differently where we want to.

“We have engaged widely with business, trade unions, academics and constitutional experts and believe this is the most comprehensive package of devolution while also allowing Scotland the security and certainty of the United Kingdom.

“I believe it will make our parliament more accountable and more progressive. We also want to see power devolved from Holyrood down to local government and our communities.

“Labour should be proud of our record on devolution. It was a Labour Government that brought about the Scottish Parliament 15 years ago and we initiated the Calman process which resulted in greater tax and borrowing powers for Holyrood through the Scotland Act.

“With six months to go until Scotland decides on its future, our devolution proposals set out part of our positive alternative to the narrow politics of nationalism. Labour has always been the party of change, and we will change Scotland for the better.”

However ‘Yes Scotland’ supporters argue that the changes being proposed by the Unionist parties do not go far enough and will not solve Scotland’s problems.

Deputy First Minister Nicola Sturgeon said a ‘No’ vote would mean handing control “straight back to Westminster” and she gave six reasons why Scotland should vote for independence: more jobs, control of taxes, protecting the NHS, not ending up with Conservative governments we don’t vote for, the prospect of retiring later than south of the Border and the creation of an oil fund to make the most of Scotland’s North Sea resources.

“Today I am setting out six reasons for Yes with six months to go,” Ms Sturgeon said. “The referendum is a choice between taking Scotland’s future into Scotland’s hands or leaving our future in the hands of an out-of-touch Westminster establishment.

“The No campaign call themselves Project Fear but we have seen a move to Project Threat in recent days with increasingly over-the-top comments. So it’s no wonder that support for Yes continues to advance in the polls while the No campaign has stalled, with a swing of only around 5 per cent now needed to secure a Yes vote.”

Scottish Green Party leader Patrick Harvie also believes that a ‘yes’ vote could transform Scotland. He said: “I urge those who are as yet undecided to seize the opportunity to challenge both sides in this debate, and consider whether a Yes or a No gives the best chance of transforming Scotland into the more equal, more sustainable and more democratic society we’re capable of becoming.

“Green Yes campaigners are reaching out to communities across Scotland. For us a Yes vote gives the best chance of achieving the kind of Scotland where wealth is more fairly shared, where nuclear weapons have no place and where communities have real power.”

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Gloves come off over currency union

A currency union in the event of a vote for independence ‘would not be in the interests of either the people of Scotland or the remaining UK’, Chancellor of the Exchequer George Osborne told an Edinburgh audience on Thursday. Unsurprisingly his claims have been rubbished by supporters of independence, but while the two sides disagree over currency union, one thing is clear – the gloves are well and truly off …

Mr Osborne’s speech follows official Treasury advice that in the event of independence they would not recommend a currency union to the Government of the continuing UK, and in an unusual departure from procedure he also published the advice he received from the Treasury Permanent Secretary on whether to join a currency union should Scotland become independent.

Speaking at the Point Hotel on Thursday, the Chancellor said: “I hope passionately that the people of Scotland choose to stay within our family of nations in the United Kingdom. I want Scotland to keep the pound and the economic security that it brings. But it is clear to me I could not as Chancellor recommend that we could share the pound with an independent Scotland. The evidence shows it wouldn’t work. It would cost jobs and cost money and wouldn’t provide economic security for Scotland or for the rest of the UK.I don’t think any other Chancellor of the Exchequer would come to a different view.

“The Scottish government says that if Scotland becomes independent there will be a currency union and Scotland will share the pound. People need to know – that is not going to happen.”

The Treasury also  published the detailed analysis on the economics of a currency union which underpins its advice to the Chancellor. The paper states that while the United Kingdom is one of the most successful monetary, fiscal and political unions in history, the fiscal and financial risks of entering into a currency union with a separate Scottish state would be too great.

The analysis states:

UK is a successful union because taxation, spending, monetary policy and financial stability policy are coordinated across the whole UK, with risks pooled and clear political accountability

  • Scotland’s economy would be more exposed in the event of independence, with greater risks from shocks in the financial and energy sectors
  • in a currency union, the continuing UK would be exposed to much greater risk from a separate Scotland, with the possibility of continuing UK taxpayers being asked to support that state in the event of a fiscal or financial shock
  • if people in Scotland vote for independence, the Treasury would advise the continuing UK Government against entering into a currency union with an independent Scotland

The Chancellor’s view was supported by the finance spokespersons of both the other main Westminster parties.

The announcement was also welcomed by the Better Together campaign. Former Chancellor Alistair Darling, who leads the campaign, said: “If we vote to leave the UK in September, Scotland will not be able to keep the pound. That is the message Scotland must keep in mind when deciding how to vote. This was the day on which Alex Salmond’s bluff and bluster about independence came face to face with reality.

“Why would taxpayers in England want to bail out the banks of what would be a foreign country? Why would a continuing UK Treasury accept a veto from what would be a foreign government over tax, spending and borrowing?

“And why would Scotland agree to have its budget subject to a veto by the rest of the UK? That’s how a currency union works. You only have to look at the problems of the eurozone to see that. It makes little sense. Yet everything about the First Minister’s case for breaking up the UK rests on keeping the pound.  The jobs of thousands of Scots in our financial services industry depend on using the pound. Without the pound, all of these are at risk. That is a big gamble we simply don’t have to take.”

The Better Together campaign called on Yes Scotland to explain what currency Scotland  would use if we vote to leave the UK – would we join the euro, or maybe even set up a new, separate currency? Put simply, if yer no’ gettin’ the pound, what’s your Plan B?

Calling for clarity, Better Together campaign director Blair McDougall said:

The nationalists have been in chaos on currency over the last few days. Alex Salmond is a man without a plan. First he says we will keep the Pound, even though it is now clearly off the table. Now Yes Scotland tell us we can keep the Pound without a formal agreement, even though the SNP’s own Fiscal Commission Working Group ruled this out. And Patrick Harvie, a Yes Scotland board member, today said that Alex Salmond needs to set out an alternative to the Pound.

“It is time they got their line straight. If Plan B really is the Panama plan that would mean if something like the collapse of RBS happened again a crisis would become a disaster in an independent Scotland.

“Leaving the UK and losing the Pound would mean higher mortgage repayments, more expensive credit card bills and a big risk to thousands of jobs in our financial services industry. Alex Salmond is gambling with the livelihoods of the people of Scotland.

“The message from those of us who support Scotland remaining in the UK is very simple – a vote for separation is a vote to lose the Pound. The only way to keep the Pound is to stay in the UK.”

However, supporters of independence have cast doubt on the Chancellor’s assertions. First Minister Alex Salmond accused Mr Osborne of ‘bluff, bluster and bullying’ and former Labour Scottish First Minister Henry McLeish also expressed concern over Osborne’s ‘misguided’ intervention, saying the Chancellor’s heavy-handed tactics could push more Scots into voting Yes.

Mr McLeish said: “He is basically saying vote yes and we won’t allow you to join a currency union. We will withdraw any goodwill and sacrifice the best interests of Scotland, England, Northern Ireland and Wales.

“Do we really believe that would be the response if Scotland voted to exit the Union? I don’t think so. Wisdom and sanity would return. It would help if the Union would spell out their vision, provide an alternative to independence and offer a bit more carrot and less stick to Scots voters.

“Let’s remember that Osborne’s party want to take us out of the EU. It is the Union that is on trial, not Scotland. Creating a currency union is first and foremost a political decision, not a financial or technical one.

The UK and Scotland would have to settle the politics of this in their respective parliaments or at the polls, so the people of England, Wales and Northern Ireland could have a say in this significant decision.”

Scottish Finance Secretary John Swinney maintains that an independent Scotland will continue to use the pound as it is in the best interests of Scotland and the rest of the UK .

Responding to the Chancellor’s comments on a currency union, the Finance Secretary said that the Treasury analysis has been developed without any discussion with the Scottish Government – and without acknowledging the independent expert work of the Fiscal Commission Working Group (FCWG).

The Scottish Government last year published comprehensive analysis of the different currency options available to an independent Scotland. This analysis by the Fiscal Commission Working Group, consisting of four pre-eminent economists including two Nobel laureates, considered the full range of options and concluded that a monetary union would be in the best interests of Scotland and the rest of the UK.

The Fiscal Commission provided advice on:

  • Banking union
  • Risk sharing
  • Monetary and exchange rate policy
  • Duration of a currency union

The HM Treasury has had no discussion with the Scottish Government on any of these points.

Responding to the Chancellor’s comments, Mr Swinney said:

“We welcome the opportunity to continue the debate with the Chancellor on the merits of our proposals on a currency union.

“However the Chancellor made clear his conclusions on currency union were based on the advice of Treasury officials. That advice is incomplete and with regard to the size of the Scottish financial sector and operation of monetary unions is backward looking and takes no account of the comprehensive evidence provided by the independent economic experts of the Fiscal Commission, including two Nobel laureates, Professor James Mirrlees and Professor Joseph Stiglitz.

“On every one of the four points the Chancellor rehearsed today, the FCWG have already published comprehensive advice and analysis and their proposed macroeconomic framework is a workable model that would ensure financial stability and allow both governments autonomy over economic and social policies, including fiscal policy. In addition the Governor of the Bank of England has confirmed the Bank will deliver a currency union if agreed by both Governments.

“On the banking union: no country should have to bail out banks again. Across the EU and UK recent regulation has been designed to break the link between taxpayers and banks. The Treasury hugely overstates the size of the banking sector in Scotland which is in line with the rest of the UK. It is the City of London which is hugely reliant on the financial services sector, accounting for 50 per cent of UK financial services GVA. A banking union with an independent Scotland is in the interests of the rest of the UK as the sector benefits from integrated trade.

“On fiscal risk sharing: Scotland’s fiscal position is stronger than that of the UK. An independent Scotland would have had the opportunity to spend more, tax less, invest in an oil fund and still borrow proportionally less than the UK. The Fiscal Commission proposition ensures a harmonised system for financial regulation and resolution of banks. Scotland would take its fair share of responsibility recognising that ‘both Scotland and the UK have a shared interest in ensuring financial stability’.

“On monetary and exchange rate policy: Scotland would have full fiscal and economic freedom to set taxes and economic policy, as has been shown by many countries in the different currency unions which have operated internationally.

“And on permanence; all Sovereign states have the ability to determine currency arrangements that are appropriate for their circumstances. That is not a barrier to successful currency unions.

“The model proposed by the Fiscal Commission Working Group has not been considered and the Chancellor’s statement today is political and completely counter to the spirit of the Edinburgh Agreement, which commits both Governments to working in the best interests of both countries whatever the result of the referendum.

“If the UK Government is to honour its commitment to the terms of the Edinburgh Agreement, the discussion that the Chancellor has entered into today must be informed by the best evidence available. The Fiscal Commission have recommended early engagement between the Scottish and UK Government to properly address these critical issues. The gaps in the Chancellor’s analysis demonstrates the force of that recommendation.”

So there you have the two sides of the currency union divide. The Unionists say it can’t and won’t happen, the Nationalists say it can and it will. Political panic over narrowing poll leads, or a pie in the sky economic gamble?

You pays your money, you takes your choice. For now at least, that money is sterling.

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Independence white paper: Seconds out, round two

‘Rarely have so many words been used to answer so little’

Scottish Secretary Alistair Carmichael says the independence white paper is a ‘wish list not a price list’ and has called on the Scottish Government to share their figures for the cost of independence with the Scottish people.

Meanwhile First Minister Alex Salmond has said that enhanced childcare entitlement, one of the key commitments of the independence mission statement, would only be possible in an independent Scotland.

MSPs will debate the white paper at Holyrood this afternoon.

The 670 page independence white paper provides no answers on crucial questions like currency, pensions and the cost of independence, Scottish Secretary Alistair Carmichael said.

‘Rarely have so many words been used to answer so little’, said Mr Carmichael following the publication of the paper.

He also expressed disappointment that the Scottish Government had deliberately sought to ignore the uncertainties and difficulties of independence.   He said it was astonishing that the Scottish Government had refused to put a price tag on independence even though their private cabinet paper had discussed costs.

Mr Carmichael said: “This was their chance to level with people. They have chosen a different path and people will judge them on that.

“For years we have been promised that all the answers on independence would be in the white paper. The big day has finally arrived and we have 670 pages that leaves us none the wiser on crucial questions such as currency, pensions and the cost of independence. Rarely have so many words been used to answer so little.

“People will draw their own conclusions that the Scottish Government have deliberately sought to ignore the uncertainties and difficulties of independence. We are simply expected to believe that everything will be perfect after we leave the UK.  We are asked to accept that ending a 300 year United Kingdom will be straightforward. We are told it will all be alright on the night.

“We know that the terms of independence would  need to be negotiated with many countries including the rest of the UK and the EU. An honest assessment of the challenges and uncertainties of leaving the UK would have seriously helped the debate between now and September. Instead we have been given a wish with no price list. Today was their chance to level with people. They have chosen a different path and people in Scotland will judge them on that.

“It is astonishing that the Scottish Government can sit in private discussing the costs of independence and then refuse to share those figure with the Scottish people. John Swinney’s leaked paper said it would cost £600m every year to run an independent tax system but today we saw nothing about that.

“It looks more and more  like the Scottish Government will continue to keep these things private. If they had convincing answers then today really would have been the day to share them with everyone. From now until September 18th we will keep making the positive case for the UK. It works well for Scotland. It gives us the best of both worlds. It offers us a better future. We will fight hard to preserve it against those who have been obsessed with independence for their entire political lives but now seek to disguise it.”

‘transformational change in childcare’

Improved childcare entitlements is one of the most eye-catching sections in the white paper – and would be very popular – but some critics have suggested that the Scottish Government could act now to improve childcare and need not wait for independence.

The Scottish Government says families will save up to an estimated £4,600 per child, per year under plans to extend childcare to every child from the age of one. The proposed entitlement in an independent Scotland is for 30 hours of childcare each week – the same number of hours as a child in school.

The move would benefit around 240,000 children, 212,000 families and has the additional benefit of allowing more women to return to work by removing the barrier of childcare costs.

Implementation would be phased and the proposal will see the workforce expand in line with the hours, creating up to 35,000 jobs in the childcare sector, mainly for women.

The Holyrood government says independence offers the opportunity to bring in this proposal as tax revenues generated by more women returning to work will stay in Scotland. Under devolution, increases in tax revenues – and savings from reduced benefits claims – go to Westminster.

Speaking ahead of a debate on ‘Scotland’s Future – Your Guide to an Independent Scotland’ in the Scottish Parliament, First Minister Alex Salmond said:

“Independence would enable us to bring about a transformational change in childcare. The early years are the most crucial years in a child’s development. Our plan will provide high quality childcare that is both flexible and affordable for parents.

“Our current childcare costs are lower than the rest of the UK but every working family with children knows it is a real burden on the family finances. Improving access to quality childcare will not just benefit children – it will help many more women into work.

“At the moment, without all the powers of independence, we have managed to prioritise childcare and are increasing the number of hours from 412.5 to 600.

“Independence offers us the powers to go much further.  If we matched, for example, the female labour market participation of Sweden, this would generate an extra £700 million in tax revenue. As we progressively expand childcare, the tax revenue generated would pay for further expansion. Without independence, however, that revenue would leave Scotland, go to Westminster and not be available to fund the further expansion we need.

“With independence, we would keep this revenue here in Scotland to reinvest it in childcare for all, a model we know from countries such as Netherlands works well for children’s development, female participation in the labour market and the wider economy.

“This transformational change in childcare will help give children the best start in life, allow parents to choose to work without worrying about costs and create up to 35,000 new jobs. This is just one of the many opportunities to make Scotland a fairer, more prosperous country through independence.”

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