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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Scotland and the UK: safer together?

Threats to Scotland and the UK from organised crime gangs, cyber criminals and global terrorism are best confronted with Scotland inside the UK, Home Secretary Theresa May claimed today. However ‘Yes’ campaigners have been quick to challenge the Home Secretary’s analysis and say that Scotland will continue to work closely with international partners on security issues.

The Home Secretary (pictured below) was in Edinburgh to launch ‘Scotland analysis: Security’, the seventh in a series of UK government papers to inform the debate ahead of next year’s independence referendum.

The paper examines how the UK and Scotland derive mutual benefit from an integrated approach to security, cyber, justice and policing, as well as from security exports and our international alliances and relationships.

The possible consequences for both Scotland and the continuing UK of a vote for independence are subject to analysis in the paper. It stresses that while the UK does work with other countries, such as the Republic of Ireland, to improve security and fight organised crime, there is a significant difference between these relationships and Scotland’s current position as a privileged and influential part of the UK.

The analysis concludes that independence could disturb the united protection provided to Scotland by the UK’s security and intelligence architecture. The report suggests:

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  • Scotland facing a technically complex and expensive requirement to establish its security infrastructure. In the meantime, there would be a risk to both Scotland and the continuing UK of diminished security.
  • Scotland no longer being covered by the UK’s National Cyber Security Programme, which strengthens the services the public rely on and makes the UK a safer place for businesses to operate.
  • Co-operation between Police Scotland and other UK forces may not be as straightforward as it is now. Long established UK-wide laws make it easier to pursue justice across borders despite different legal systems and police jurisdictions.
  • A limit to the amount of information the continuing UK would be able to share with Scotland. Under the “Control Principle”, the UK could not share the kind of information used to fight and counter terrorism with Scotland, passed to it by another country, unless the UK had that country’s consent.

Home Secretary Theresa May said:

“This report sets out in plain terms the security consequences of independence, not just for Scotland but for the UK as a whole. Undoubtedly we are stronger and safer together.

“The national security risks the UK faces are complex and changing. Terrorists and organised criminals will seek new ways to exploit any weakness in our justice and policing capabilities, and the scale of emerging threats, such as cyber crime, demands a comprehensively resourced response.

Now is the time to work more closely together for the security of all citizens of the UK.”

The UK government believes that Scotland is better off as part of the UK, and that the UK is stronger, safer and more secure with Scotland as part of it.

In the event of a vote in favour of leaving the UK, Scotland would become an entirely new state and would have to establish its own security arrangements.

However, supporters of independence have been quick to refute the Home Secretary’s claims. The Scottish government said that, in the event of independence, Scotland would work closely with the rest of the UK and international partners on security and intelligence matters.

KennyMacAskillJustice Secretary Kenny MacAskill (pictured above) told the BBC: “These claims are wrong – not least because Scotland is already an independent jurisdiction when it comes to policing and justice issues, and current cross-border cooperation shows how well that can work to combat terrorism and other threats.

“An independent Scotland will have first-rate security arrangements to counter any threats we may face. And we will continue to work in very close collaboration with the rest of the UK and international partners on security and intelligence matters, which is in everyone’s interests.”

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Government cash to support families in need

The work being carried out by Pilton-based Circle Scotland was praised by Aileen Campbell, the Minister for Children and Young People, during a visit to the project yesterday. Ms Campbell also announced details of £10 million Strategic Partnership Funding for voluntary sector organisations working with children and families.

Families across Scotland will benefit from better support services with 45 third sector organisations receiving a funding boost from the Scottish Government. This £10 million of Strategic Partnership Funding will strengthen the work of young people’s organisations working across Scotland, in areas such as adoption, vulnerable families, child health, literacy, bereavement counselling and parental support.

Minister for Children and Young People Aileen Campbell (pictured below, right) said: “We are working to make Scotland the best place in the world to grow up, including increasing the level of free early learning and childcare through the Children and Young People Bill, which will save families equivalent to around £700 per child. Scottish families already benefit from a wide range of support and the organisations receiving a share of this £10 million will help to improve what is on offer. Thanks to our investment, great organisations like Circle, which I am visiting today, will be able to take their work further into the community, helping families in need across Scotland get access to the right information and resources.”

Funding of £20 million through the Third Sector Early Intervention Fund and £10 million through Strategic Funding Partnerships was announced last month.

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The following 45 organisations will receive support through the Strategic Funding Partnerships to enhance or develop work focussed on supporting the needs of young people and their families:

Article 12 in Scotland, Asthma UK Scotland, Birthlink, British Association for Adoption and Fostering Scotland, Capability Scotland, Care and Learning Alliance, Comann nam Pàrant (Nàiseanta), Cruse Bereavement Care Scotland, Dyslexia Scotland, Families Need Fathers Scotland, Family Service Unit Scotland (Circle), Fathers Network Scotland (FNS), Genetic Alliance UK, Girlguiding Scotland, Health and Social Care Alliance Scotland, Hearts and Minds, John Muir Trust, Federation of City Farms and Community Gardens, Lead Scotland, Learning Link Scotland, LGBT Youth Scotland, National Day Nurseries Association, Parent Network Scotland, Partners in Advocacy, Relationships Scotland Core, Relationships Scotland Project, Scotland’s Learning Partnership, Scottish Association of Young Farmers Clubs, Scottish Community Development Centre, Scottish Environmental & Outdoor Education Centres Association, Scottish Marriage Care, Scottish Trades Union Congress, Scottish Youth Parliament, Sense Scotland, Sleep Scotland, The Boys’ Brigade, The Girls Brigade in Scotland, The Iona Community, The Mentor Foundation UK (Mentor), Working On Wheels , The Princes Trust, The Scout Association, Woodcraft Folk , Workers’ Educational Association and YWCA Scotland.

Holyrood Bill will support families

Charities have welcomed news that three and four year old children will, for the first time in Scotland, be entitled to 600 hours of funded early learning and childcare through the Children and Young People (Scotland) Bill, published today. Third sector organisations will also receive an additional £10 million.

The Bill proposes a range of measures which also include:

  • Looked after two year olds and those with a kinship care order will receive the same entitlement as three and four year olds
  • A named person for every child and young person from birth to safeguard and support their wellbeing, working with other bodies as required
  • Providing kinship carers with more support from local authorities to increase family stability.

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Minister for Children and Young People Aileen Campbell (pictured above) also announced an extra £10 million on top of the £20 million third sector fund to be shared between 45 organisations working closely with children, young people and families, as part of wider investment in prevention and early intervention. This lifts the total budget for the fund to £30 million over two years, an increase on the funding available over the previous two years.

Ms Campbell said: “There is excellent work being done across Scotland to support parents, carers, children and young people. This Bill will improve levels of care and support to children and families across the country through an increase in free and more flexible early learning and childcare from 475 to 600 hours, as well as more joined up services to support the wellbeing of all children and young people through a named person. Further measures will also add stability to kinship care arrangements. The level of investment the Scottish Government is putting into ensuring the Bill works for Scotland’s young people also demonstrates our commitment to investing in our children from the very start.

“We must also recognise the important role of the third sector in reaching out to families and children in inventive and inspirational ways, which is why I am providing an additional £10 million on top of the Third Sector Early Intervention Fund for groups working directly with children, young people and their families. The £20 million Third Sector Early Intervention Fund captured the imagination of many key organisations that work with children and young people. This additional funding means that even more organisations will be able to work with the Scottish Government and each other, as they continue to improve the lives of Scotland’s children, young people and their families.

“Together with the publication of the Children and Young People (Scotland) Bill, today is the biggest step forward so far on the path towards making Scotland the best place in the world to grow up.”

kid1Anne Houston, Chief Executive of CHILDREN 1ST, said: “The Children and Young People (Scotland) Bill has a key role to play in achieving the Scottish Government’s ambition of making Scotland the best place for children to grow up. For CHILDREN 1ST, that means a place where every child and young person has a happy, healthy, safe and secure childhood. We support the Bill’s intentions and must all now maximise the opportunity before us to achieve the Scottish Government’s vision.

“We are heartened by the proposals to provide 600 hours of flexible early learning and childcare for children in kinship care aged two and to provide a statutory definition of well-being.”

Martin Crewe, Director of Barnardo’s Scotland, said: “Barnardo’s Scotland is pleased to see the introduction of the Children and Young People (Scotland) Bill in Parliament. This Bill will be an important step forward in improving the lives of Scotland’s most vulnerable children and young people. We are particularly pleased to see more support for those young people leaving care, many of whom are not getting the help they need to make a successful transition into adulthood.

“We are looking forward to scrutinising the Bill and working with the Scottish Parliament to ensure that it delivers on the Scottish Government’s aim to make Scotland the best place in the world to bring up children.”

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A 12 week consultation on the Bill was launched in July 2012 and was accompanied by extensive stakeholder communication, including national engagement events with over 800 stakeholders and activities with nearly 2,400 children and young people.

The Children and Young People (Scotland) Bill will also increase the powers of Scotland’s Commissioner for Children and Young People as well as improving support for kinship carers, families and care leavers

Provisions relating to a ‘named person’ will:

  •  Place a duty on NHS Boards to allocate every child with a named person from birth to school age
  • Place a duty on local authorities to allocate every child with a named person until they are 18 or leave school, whichever is later.
  • Oblige all relevant authorities to share information with the named person if it is necessary to safeguard, support and promote the wellbeing of the child.

The £10 million will go towards Strategic Funding Partnerships for children and youth organisations.

The Third Sector Early Intervention Fund is managed by the BIG Lottery on behalf of the Scottish Government.

Edinburgh to act against impact of welfare reforms

CityChambersPlans to mitigate the impact of national welfare reform measures on the capital have been announced by the City of Edinburgh Council. The plans, which will see an additional investment of £350,000 in advice and support services, will be discussed by the Corporate Policy and Strategy Committee on Tuesday (16 April).

The introduction of policies such as the Housing Benefit Under-occupancy Restrictions (or ‘bedroom tax’), which are expected to affect 3,800 Council tenants, and around 2,500 Housing Association tenants, combined with national reductions in benefits will have a significant impact on some Edinburgh residents and the city’s economy as a whole.

The Council has taken steps to minimise these repercussions where possible and is considering further actions to offer support. Residents affected by the under-occupancy restrictions have been contacted to provide advice about options such as moving to a smaller home, taking in lodgers or budgeting on a lower income.

Health, Wellbeing and Housing Convener, Councillor Ricky Henderson, (pictured below)said: “The new changes to the national welfare system will have a significant impact on the city and particularly those receiving benefits. It is also expected that the introduction of the under-occupancy changes will lead to increasing rent arrears, which may have an adverse impact on the Council’s ability to deliver services and capital investment in its homes.

“We have taken steps to bolster Council and voluntary sector advice services to make sure that residents are aware of these changes and the help that is available to them. It is vital that we support our most vulnerable citizens and do what we can to minimise these repercussions where possible.”

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The committee will be asked to approve an investment of £350,000 to provide additional advice services. Of this sum, £100,000 will be provided to Citizens Advice Edinburgh, £22,000 to the Community Ability Network, £15,000 to The Action Group, £15,000 to FAIR and £7,000 to COSS. Some of the extra funds will also be invested in the Council’s own Advice Shop service and Contact Centre.

An additional £67,000 has already been agreed for the Welfare Rights and Health Project, CHAI Advice Service and Granton Information Centre.

Recent Scottish Local Government Forum Against Poverty figures suggest that changes to the national welfare system will lead to a loss of income of £223 million by 2015/2016 for people in Edinburgh. These changes mainly affect individuals and families living on low wages, those seeking work and disabled people who are unable to work. This will result in a greater need for advice about benefits, debt and budgeting, as well as an increased demand on social work, housing and homelessness services.

The administration of Crisis Grants and Community Care Grants is now the responsibility of the Council, after being transferred from the Department for Work and Pensions on 1 April. Crisis Grants are available as emergency payments where there is an immediate threat to health or safety and are now paid out from Council Neighbourhood and City Centre Offices with an out of hours service also available. A new team has been recruited to deal with the assessment and processing of claims, which can be made by phone, online, on paper and in person. Community Care grants will help to enable or continue independent living by providing furniture, carpets and white goods.

Further measures will be discussed by the Health, Wellbeing and Housing Policy Development and Review Sub Committee on Tuesday 23 April 2013.

The city council’s announcement comes as new independent research by Sheffield Hallam University has shown that welfare cuts will take more than £1.6bn a year out of the Scottish economy and hit the poorest parts hardest – the equivalent to about £480 a year for every adult of working age. The biggest losses are from reforms to incapacity benefits at about £500m a year.

The report states: “The financial losses arising from the reforms will hit the most deprived parts of Scotland hardest. Glasgow in particular, but also a number of other older industrial areas, will feel the impact most. The loss of benefit income, which is often large, will have knock-on consequences for local spending and thus for local employment, which will in turn add a further twist to the downward spiral.”

The report added: “A key effect of welfare reform will therefore be to widen the gaps in prosperity between the best and worst local economies across Scotland.” Researchers note that the scale of financial loss in Scotland would have been greater if the Scottish government had chosen to pass on the cut to council tax benefit.

The report was commissioned by the Holyrood’s welfare reform committee, and while it’s findings are unlikely to come as a major surprise, committee convener Labour MSP Michael McMahon said: “Our committee wanted a detailed picture of what would happen on the ground when these reforms were fully implemented. It is obvious to all that the impact is dramatic – and more so in the areas that can least afford it.”

A Scottish government spokesman said: “Sheffield Hallam have used the same publicly available data as the Scottish government analysis and reach broadly the same conclusions on the scale of the cuts. It is completely unacceptable that hard-working people and vulnerable groups will bear the brunt of the UK government’s welfare cuts.”

The UK government insists that changes must be considered alongside other measures like the increase of the tax threshold, that changes to the welfare system were necessary and that reforms will benefit the Scottish economy in the long-term.

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