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.

Fan ownership: it’s a goal …

Parliament to debate fan ownership as support grows

Green MSP Alison Johnstone has lodged amendments to the Community Empowerment Bill that would bring in a fans’ right to buy their football clubs – and those amendments will be considered by Holyrood’s Local Government and Community Committee later today.

The amendments have been signed by Labour MSP Ken Macintosh and are also supported by the Liberal Democrats, while the Conservatives’ 2010 Westminster manifesto pledged to ‘reform the governance arrangements in football to enable co-operative ownership models to be established by supporters’.

The campaign has also been backed by Scotland’s leading anti-sectarianism charity Nil By Mouth, Supporters Direct and by other leading lights in the supporter ownership movement.

Over the last fortnight Green MSPs received more than 250 replies to a survey of supporters and members of fans’ trusts on the proposals.

More than 95% supported giving fans the first right of refusal if their clubs are sold or go into administration, and 81% of those expressing a view backed a right to buy at any time. The proposal that trusts should be able to bid for government support to buy their clubs, whether as grants, loans or to underwrite bids, was backed by 89% of those expressing a view.

This response confirms the results of a Survation poll commissioned by Green MSPs last year, which showed overwhelming public support for a fans’ right to buy. 87% of those expressing a view backed a right of first refusal if a club comes up for sale or goes into administration, and 72% supported a fans’ right to buy their local club for a market value at any point.

Alison Johnstone MSP, who lodged the amendments, said: “You don’t need to be a football fan to know that Scottish football lurches from crisis to crisis, and that the current model of ownership has led to disaster at clubs from Gretna to Hearts.

You also only need to look at Germany, where almost all clubs are fan-owned, to see how well this model can work. But it’s not just about fans stepping in to save their clubs once they’ve fallen into administration. There are many well-run Scottish clubs in private hands, but those owners come and go, and when they go, we want to see fans have the first right of refusal. And where there’s a committed and well-organised group of fans with strong support on the terraces for a takeover, we want them to have the power to do so.

“The Community Empowerment Bill is a good piece of legislation, but this one small change could make it a landmark law. Football clubs are at the heart of many of our communities, large and small: what could empower those communities more directly than helping them run those clubs more successfully? I’m delighted to have Labour and Liberal Democrat support for these plans, and the Conservatives formally backed fan ownership in 2010. I’m hopeful that SNP MSPs will join the consensus and vote this week to put Scottish football fans first.”

Andrew Jenkin, head of Supporters Direct Scotland, said: “Supporters Direct Scotland was set up to support fan ownership of Scottish clubs, and we believe a well-constructed right to buy could be a game-changer for Scottish football.

“We welcome the principle of these amendments, although we recognise that another round of discussion will be required before the Community Empowerment Bill is considered at Stage 3, and that additional changes may be needed to allow other ownership models to be included. Using our considerable expertise and experience in this area we stand ready to help the Scottish Football Association, the Scottish Professional Football League and the Scottish Government refine these proposals so they can best empower supporter ownership and enshrine the voice of supporters in our game.”

Dave Scott, campaign director for Nil By Mouth, said: “In 2011 we published an action plan arguing for supporters trusts to be given funding to run their own anti-bigotry initiatives, and last year we worked with Supporters Direct Scotland on its ‘Colour of our Scarves’ project, which has been touring across SPFL clubs and the communities in which they operate to highlight the positive contribution the game brings to society. We have also had strong support for our work from a number of Supporters’ Trusts, as highlighted at the Supporters Direct Scotland conference last summer, where we led a session on sectarianism in the game.

“When we called for the introduction of ‘strict liability’ into the Scottish game, to make clubs responsible for sectarian behaviour by their fans, the strongest support we received came from supporters groups. For example, the Raith Supporters Trust officially wrote to their club asking them to place the proposals on the SFA’s AGM agenda. With all of this in mind, NbM would be supportive of proposals for greater fan control and ownership of their clubs and feel that this could be an exciting opportunity for the silent majority of fans to find their voice and use their increased position to bring about the real changes required to bring the Scottish game into the 21st century.”

Stuart Duncan, a former Director of Greenock Morton Football Club and Supporters Direct, said: “As an advocate for fan ownership since the establishment of Supporters Direct Scotland in 2002 I’m very excited at the prospect of fans being given the right to buy. Clubs, provincial and otherwise, are community assets as shown by my own club Greenock Morton who now have a vibrant and highly successful community trust, a fan led initiative, which is in their own words ‘the heartbeat of Inverclyde’. These community assets are best protected by people who have the club as the hub of the community at heart: fans.”

One Falkirk fan who completed the Green MSPs survey said: “My club went into administration in the late 90s and it was an awful time, not just for the club and the fans but the local communities in and around Falkirk as well as the dozens of small businesses depending on trade with the club and the ordinary people who worked at the club.

“The worst thing was to realise how important the club was to the town and people’s sense of connection to it, through the football, and to see it all play out as a big business game and feel totally disempowered. These proposals would give well organised groups the opportunity to act on behalf of communities and create something tangible to go with that feeling of a sense of belonging that goes with being a fan of a football club, especially a local one.”

A Pars fan said: “”I am a Dunfermline Athletic fan, and a member of Pars United, the majority shareholder of DAFC. Fan ownership has prevented our football club from being wiped out, brought a valuable community asset and stadium into public ownership, increased volunteering and employment opportunities in the area.

“Without the vision and dedication of those that led the buy-out effort we would not have a club any more. Every fans group in Scotland should have the opportunity to do similar for their club.”

Food bank fear factor: Holyrood committee ‘surprised and saddened’

‘It is a sad state of affairs when vulnerable people are frightened to engage with the very system that is supposed to offer them support and care.’ – Michael McMahon MSP

Evidence that shows the link between the UK Government’s welfare reform and an increase in the use of food banks has been sent to Scotland Office Minister David Mundell MP by the Scottish Parliament’s Welfare Reform Committee.

This follows a call from Mr Mundell to show him evidence of the impact of these policies after he expressed doubt that an increase in food bank use was as a direct result of welfare reform.

Much of this evidence has now been forwarded to UK Ministers and the Department of Work and Pensions – but many benefit claimants declined to send in their cases for fear that they might be subject to unfair treatment and reprisals from the DWP if their identity is revealed.

Committee Convener Michael McMahon MSP said: “The Welfare Reform Committee has amassed a growing volume of evidence documenting the impact of welfare reform on Scotland’s communities. We have now sent a further batch of evidence to Mr Mundell and the DWP. However, what we discovered during the course of our enquiries has surprised and saddened us. It is a sad state of affairs when vulnerable people are frightened to engage with the very system that is supposed to offer them support and care.”

Deputy Convener, Clare Adamson MSP said: “UK Government ministers continue to turn a blind eye to the appalling impact that their welfare policies are having on some of the most vulnerable members of society. We have now provided Mr Mundell and the DWP with irrefutable evidence that benefits cuts and sanctions are driving people in ever greater numbers to seek the assistance of food banks and other charities.”

The Background:

Committee’s letter to Rt Hon David Mundell MP.
David Mundell MP, Parliamentary Under Secretary of State for Scotland, gave evidence to the Committee on 3 February 2015 link to official report.
The Committee first evidenced the link between welfare reform and food bank use in its report, published in June 2014.
The Committee has submitted a file of evidence to Mr Mundell and the DWP. To protect identities, this information is not being published. The Committee received evidence from a number of housing and third sector organisations acting on behalf of their clients, and MSPs on the Committee also brought forward case studies involving their constituents. Evidence includes benefits recipients who have been sanctioned and individuals whose benefits payments has been subject to delay, all of which has led to an increased demand on food bank services.

Holyrood committee to study impact of welfare reforms on women

Women urged to share their experiences of welfare reform

The impact of recent welfare reforms on women in Scotland will be the focus of a new inquiry by the Scottish Parliament’s Welfare Reform Committee.

Evidence seen by MSPs has suggested that women are being disproportionately affected and research recently published by the Committee highlighted that lone parents have been severely impacted upon. The Committee has now launched a call for views and is asking how welfare changes have affected women.

Committee Convener Michael McMahon MSP explained: “Previous research conducted for the Committee has shown a significant impact on lone parents. That suggests there is likely to be a wider impact on large numbers of women, a view put forward by Professor Steve Fothergill at our meeting this week.

“Our Committee has put personal experiences at the heart of our work. This inquiry will be no different and we would like to hear from people across Scotland on how welfare changes have impacted their life.”

Deputy Convener, Clare Adamson MSP added: “Our Committee has previously revealed the devastating impact of welfare reform on Scotland’s communities.

“The Committee has already heard first-hand testimony from women in Scotland on the challenges faced by many in light of the UK Government’s welfare reforms. We know there are many other women out there with experiences to share and I would encourage them to get in touch with us.”

The Committee would also like submissions to address the following questions:

What is your (or your clients) experience of being on benefits or employment support?
How has your (or your clients) experience with the benefit system changed in recent years since the introduction of the welfare reforms?
Are there any challenges involved in being in receipt of your (your clients) particular benefits?
What would be your priorities for change when certain benefits / elements of employment support come to Scotland?
Do you have any suggestions of practical improvements that you would like to see when certain benefits / elements of employment support are under Scottish control?

Smith Agreement: call for halt to Work Programme extension

Holyrood Ministers have called on the UK Government to keep its promises on devolving further welfare powers and reverse the extension of new Work Programme contracts.

The move came at yesterday’s Joint Ministerial Working Group on Welfare, where Social Justice Secretary Alex Neil and Fair Work Secretary Roseanna Cunningham met Scotland Office Undersecretary of State David Mundell and Department for Work and Pensions Minister of State Mark Harper to discuss progress on implementing the welfare elements of the Smith Agreement.

The UK Government agreed to consider revised wording from Scottish Ministers on its planned Scotland Bill in three areas – the power to create new benefits in devolved areas, the ability to make discretionary payments on reserved areas and clauses on support programmes for unemployed people.

Ms Cunningham said: “UK Ministers took a conscious decision to extend the Work Programme in Scotland until 2017, despite Smith recommending its devolution on expiry of the current contract. Despite successive requests, vital information on the cost and impact of existing services that would enable us to move forward quickly in re-designing support, has not been provided.

“So in order to build more effective, targeted and fairer employment support services in Scotland, I have asked the UK Government to cancel the Work Programme contract extension and for the transfer of the necessary resources and legal powers to deliver an alternative service to meet the needs of unemployed Scots from April next year.”

Mr Neil said: “We are committed to supporting a Bill that implements the Smith Agreement and commands broad support, but UK Ministers have watered down the proposals, given us mixed messages and stalled on progress.

“So I welcome today’s new offer to consider our proposed changes to the wording of the Bill, which we will supply as quickly as possible. I do however want to see decisions taken by UK Ministers before the election, to enable the Bill to be introduced as early in May as possible. As ever, the UK Government will be judged by its actions and how seriously they’re taking the Smith Agreement process.”

Johnstone: Government must get tough on TTIP

TTIP: ‘an assault on public protections’ – Alison Johnstone MSP

Questioning the Minister for Europe at Holyrood today, Green MSP Alison Johnstone called on the Scottish Government to broaden their stance on TTIP, the free trade treaty currently being negotiated between the US and the EU.

She highlighted figures contained in a new report from Westminster’s Environmental Audit Committee (1) on the difference between chemicals regulation in the US and EU. 1300 chemicals are restricted for use in cosmetics in EU countries, whereas only 11 are in the US.

The Minister, Humza Yousaf, replied that while the Scottish Government has raised a number of concerns with the UK Government, TTIP as a whole is “difficult to oppose without seeing the final agreement”.

Alison Johnstone, Green MSP said: “This deal risks much more than our precious public services. There is a real risk that important environmental and public health protections will be weakened by this treaty, which would undermine decades of political progress towards a more sustainable world.

“Overall the components of TTIP add up to an assault on public protections with little evidence of any reward, and it should not be so difficult for the Scottish Government to oppose this.”

Welfare powers: get a move on!

Scottish government says swift action is needed on welfare

Scottish ministers have urged the UK government to deliver Lord Smith’s recommendations for new powers on welfare almost four months after the report’s publication .

The call comes ahead of the Joint Ministerial Working Group on Welfare in Edinburgh later today (March 11) that will be attended by Social Justice Secretary Alex Neil and Fair Work Secretary Roseanna Cunningham, and which will focus on future delivery of welfare and employment support services in Scotland .

Mr Neil said: “It has been over a month since the Working Group met for the first time and weeks since the Smith Commission delivered its recommendations. Over that period of time there has been a frustrating lack of progress from the UK government in recognising that its current proposals do not meet Lord Smith’s recommendations.

“We want to see early progress on flexibilities around Universal Credit as well as assurances that the UK Government will deliver the Smith report in full. It’s really frustrating that the UK has refused to make early progress on those flexibilities, although these are technically feasible now. And they have refused to change their draft clauses which fall short of the Smith proposals.

“Just last week both the Welfare Reform Committee and the Joseph Rowntree Foundation highlighted the scale of the damage inflicted by Westminster’s austerity agenda on people across Scotland.

“With more powers in our own we hands we could build a system better suited to our needs. The Scottish Parliament is best placed to make decisions about welfare policies that affect the people of Scotland.”

Ms Cunningham added: “This Government’s commitment to Fair Work means we believe people should be supported into work, instead of being punished for being unable to secure employment. The UK Government’s current conditionality and sanctions regime isn’t working and the UK Government needs to adopt a positive and proportionate approach to support people, rather than cutting their incomes and having to deal with misguided policies such as the ‘bedroom tax’.

“We await vital information on employment services, such as the Work Programme, to enable the Scottish Government to move forward quickly in re-designing this type of support for Scotland. We are determined to use these powers to deliver seamless, effective support in Scotland that helps unemployed people in Scotland into work and delivers sustainable and inclusive economic growth.

“As we move towards the UK pre-election period, we call upon the UK government to act swiftly on the Smith recommendations to ensure we can bring forward a Bill that is fit for purpose and allows us to take a new approach to tackling inequality.”

Lazarowicz anger over broadband ‘notspots’

Mark Lazarowicz MP attacks buck passing by Government and providers

Mark Lazarowicz MP has attacked the buck passing by Government and broadband providers that is denying numerous properties access to superfast broadband that is vital to Edinburgh’s economic future.

Speaking after a Westminster debate on the subject, Mr Lazarowicz said: “I am repeatedly contacted by constituents living in different parts of my constituency ranging from the City Centre to North Edinburgh and the waterfront area who can’t get access to superfast broadband.

“It’s a vital part of economic infrastructure for businesses, the many people working from home as well as for anyone to access information and government services.

“Sometimes, developers may not install cable when converting or building properties but then the broadband provider won’t connect them either because of the cost.

“The Government says it won’t provide public funding where superfast broadband can be provided commercially but broadband providers won’t do it because they say it is not commercial for them to do so.

“It’s high time broadband providers and the UK and Scottish Governments took action: if private providers won’t tackle the notspots Government must act because it is too important to Edinburgh’s economy to leave people in our city unable to access superfast broadband.”

Mr Lazarowicz has raised this issue in Parliament on a number of occasions but the Government has simply pointed to the funding it is providing with the Scottish Government following suit in highlighting its partnership with BT in rolling out access.

The UK Government’s target is superfast broadband should be available to 95% of properties by 2017 – but there is no statutory obligation for developers to install broadband cable in new build properties let alone converted buildings.

The North & Leith MP’s speech can be found here.

Nicola of the hundred days

First Minister marks milestone with focus on young people

Opportunities for young people in Scotland will be the focus for First Minister Nicola Sturgeon this week as she approaches her 100th day in office.

On Friday (27 February) it will be 100 days since the First Minister was sworn in by the Scottish Parliament, and she will begin the week by travelling to London to see first-hand how an attainment challenge has helped some of the poorest children in society.

The visit follows the recent announcement by the First Minister of the £100 million Attainment Scotland Fund, which will draw on the lessons learned by the London Challenge scheme as part of our efforts to improve education outcomes in Scotland’s most disadvantaged communities.

On Wednesday, the First Minister will announce further support to help young people into employment and living wage jobs, ahead of a speech at the David Hume Institute entitled what sort of Scotland do we want to create?

That speech will outline her commitment to removing the barriers that limit opportunity in Scotland, as she set out her vision for a Scotland based on prosperity, fairness and participation.

On Friday, Ms Sturgeon will mark her 100th day in office by visiting GlaxoSmithKline in Irvine to announce a new initiative to encourage more young women to take up modern apprenticeships.

The First Minister said: “When I became First Minister in November, I set out how I wanted to run a Government with the strongest focus on boosting our economy, tackling inequality and protecting public services.

“And I hope over these last months I have demonstrated my commitment to making this a better country in which everyone can live and work.

“Central to that is a strong economy that helps us build the prosperous and fair Scotland we all want to see. As I said on the day that I was sworn in as First Minister – the biggest investment we can make in Scotland’s future is in our people.

“That is why it is hugely important to make sure that all of our young people – no matter what their background or where they come from – have the very best chance to get on in life. That is how we not only improve lives but also grow our economy.

“So as we approach my 100th day in office, I am focused on delivering for the young people of Scotland, by improving attainment in Scotland’s schools, opening up job opportunities and encouraging more young women to improve their skills and get on in life by taking up a modern apprenticeship.”

Righting a wrong? Poll Tax debt to end today

Councils to stop collecting the debt from 1 February

From February 1, 2015 the liability to pay ‘Poll Tax’ arrears in Scotland will end, subject to final approval of the Scottish Parliament later this month. John Swinney says Holyrood has acted ‘to right a historic wrong’.

The Scottish Government brought forward the bill to bring an end to collection of debts under the Community Charge, the discredited tax which was abolished in 1993 after four years in operation in Scotland.

The issue was brought to the fore following the independence referendum, amid reports that the expanded electoral registers could be used to identify and pursue Poll Tax debts at a time of record democratic engagement.

The amount of Poll Tax arrears collected by local authorities across Scotland has fallen in recent years to less than £350,000 in 2013-14, and some local authorities have ceased recovery of debts altogether. Nonetheless, the Scottish Government will cover the cost to local authorities of the Poll Tax debt that they would have expected to recover under existing arrangements.

This week parliament agreed to the general principles of the Bill and also approved a timescale that will see the Bill complete its parliamentary passage by 19 February.

Deputy First Minister John Swinney said: “The Scottish Government has acted act expeditiously to address the use of information gathered from voter registration to pursue historical debts from a tax that is discredited and which has not been operational in Scotland for more than 20 years.

“The amount of Poll Tax arrears which have been collected by councils across Scotland has fallen to near negligible levels in recent years, from around £1.3 million in 2009-10 to less than £350,000 in the most recent financial year.

“We will ensure that local authorities are properly compensated in line with current collection rates in respect of outstanding amounts and ensure that they are not out of pocket.

“The poll tax is a defunct tax, but it has left a bitter legacy in Scotland – the Scottish Parliament has acted to right a historic wrong.”