Tag: opinion

Ways to work together to ease Scotland’s ongoing housing crisis

Just before Scottish Ministers slashed Scotland’s affordable homes budget by 26 per cent, Glasgow last month (November 30) became the latest major local authority in Scotland to declare a “housing emergency”, following the lead of Edinburgh and citing “unprecedented pressures” facing the council’s services (writes RICCARDO GIOVANACCI).

While of course there is a political element to these dramatic gestures – Labour-led Edinburgh is blaming Holyrood and SNP-led Glasgow is pointing the finger at Westminster – the declarations are a sure sign that the housing market isn’t working and that something needs to be done.

New statistics just released (December 13) show that the country’s housing crisis is intensifying, with plummeting numbers of both new starts and completions. Starts were down 24%, meaning that the crisis will only become more acute in years to come.

In more pragmatic times, before the private rental sector became public enemy No 1 in the eyes of some of the country’s more radical politicians, private landlords would have stepped into this breach and filled the gap between supply and demand.

They would have done this by bringing properties to market which would have accommodated a fluid and flexible population of tenants at rents they could afford until they found homes of their own or longer-term social rentals which suited their needs.

Now, however, many of the landlords who might previously have provided this service are abandoning the market, driven out by increasingly punitive legislation, fewer tax breaks, rent controls and the mora attractive market of holiday let sites such as Airbnb.

Is this sea change factored in to the concept of a housing emergency in the City Chambers of our great cities? There is little evidence to suggest that it is. Instead, councillors, single-issue charities and NGOs focus exclusively on the perceived plight of tenants. There is a marked lack of balance in current political thinking.

There does not appear to be much in the way of appreciation that elements such as the cost of living, rents, running costs, disposable income and inflation impact on landlords as well as the people for whom they are providing a roof over their heads.

Tenants’ Rights Minister Patrick Harvie was told in April this year by delegates at the Scottish Property Federation that rent control legislation he introduced the previous year had led to investors pulling millions of pounds out of Scotland.

Despite such warnings, the word on the street is that the Scottish Government is considering making the temporary restriction imposed on rent increases to help with the cost of living into a permanent rent control.

It is all very well to criticise others for inaction or for incomprehension of the seriousness of the situation, but what can realistically be done to help alleviate this escalating crisis?

Here are five suggestions which might go some way to help:

  1. The overall tax burden on landlords needs addressed. They are currently taxed full amount and there needs to be a reward to encourage further investment, since the activity is by no means risk-free. There is nothing at the moment withing the tax regime to encourage participants into the sector.
  1. Landlords should be treated with respect, rather than the current disdain. They are responsible grown-ups who want happy tenants. Longer-term lets are in everybody’s interest.
  1. There is no reason not to keep regulation as it is. Landlords have factored the current regime in. But upcoming legislation needs more balance, as it is too heavily weighted in favour of tenants at the moment.
  1. Rent caps are not working and experts said they wouldn’t work. The Government and other interested parties should listen to advice from professionals when it is asked for.
  1. Career advice for young people to consider the trades as a career to improve housing stock in long term.

These are simply suggestions, but the more the parties involved in Scotland’s housing market can work together, rather than against each other, the more likely it is that the current and future crises will ease.

Riccardo Giovanacci is Managing Director at Glasgow-based Rosevale Letting.

Social security net is failing during the Covid-19 crisis

The Covid-19 pandemic has revealed our benefits system to be unfit for purpose. It now needs a radical transformation

The failings of the UK’s social security system have been exposed as workers whose income has been hit by the Covid-19 crisis have sought to rely on the safety net, and in many cases promptly fallen through its holes (writes TUC’s ANJUM KLAIR).

This is the result of years of deliberate attacks on the social security system, with around £34 billion of cuts made to social security since 2010.

Over a decade of austerity, including benefit caps and freezes, a punitive sanctions regime and the introduction of the five-week wait in universal credit, has pushed working families into debt and poverty.

What has the current crisis exposed?

Claimants seeking financial support since the start of the pandemic are now experiencing the inadequacy of benefit rates: if you become unemployed, the basic rate of universal credit is £94 a week. This is around a sixth of average weekly pay.  

The inability of the welfare system to cushion the financial fall for new claimants can be seen in the soaring demand on food banks during April: distribution of food parcels increased by 89 per cent compared to the same period in 2019 and for children there was a 107 per cent rise.

A survey on people’s experiences of the benefit system during the pandemic found 75 per cent of those claiming universal credit felt it would not stretch to cover their bills.

New universal credit claimants must wait five weeks for their first payment. Therefore, the system fails to support people when they are at their most vulnerable, and adds to the turbulence of their finances.

Advance loans are available, but these must be paid back out of future meagre benefit payments. People who have been reluctant to claim cite the fear of falling into debt.

Harsh and unfair rules

Callous rules have been introduced since 2010 to reduce eligibility and save money. 

The benefit cap limits the sums that can be received in social security payments, without reference to household need. Analysis by the Child Poverty Action group, predicts that up to 40,000 households are likely to be affected by the benefit cap as a result of the pandemic, the vast majority of whom will be families with children.

Introducing the two-child limit for social security also breaks the fundamental link between need and what a family receives. A quarter of a million households containing 911,000 children have been affected by the policy since its introduction. It is estimated that 60,000 families could be affected as a result of the Covid-19 crisis.

Harsh and unfair rules on conditionality and sanctions have been justified to motivate people to engage with job centre support and take active steps to move closer to work. However, the evidence of the effectiveness of this policy is limited.

The UK government has ended a three-month pause on the requirement for people receiving universal credit to prove that they are looking for work. However, the job market has shrunk dramatically, and as the job retention scheme winds up the challenges of finding work will be enormous.

The current crisis has highlighted the unfortunate situation of those living in the UK under the ‘No Recourse to Public Funds’ policy (NRPF), introduced in 2012. It is not right that those with the legal right to live and work in the UK and pay taxes are not entitled to access the vast proportion of social security needed in times of crisis.   

NRPF restrictions have pushed working families into poverty, forcing them into unsustainable debt and into homelessness or unsafe, overcrowded, insecure housing. Since the Covid-19 outbreak, their situation has worsened considerably; they have had to choose between their own health, public health, and the financial wellbeing of their household.

We need to transform and revitalise our safety net.

Many people need to rely on the social security system at some point in their lives. Illness and unemployment can strike anyone at any time, as the pandemic has shown. And when this happens we should be able to turn to social security to help us.

We urgently need a political commitment to protect the vulnerable.

The cost of adequately funding the social security budget is small compared to the cost of not acting, which includes both the deep social costs of inequality, and the impact of millions of families with less spending power.

Making our social security system fit for purpose requires fundamental changes, including scrapping universal credit.

The immediate priority, however, is for the government to devise an urgent plan to provide financial support and security to those who need it most.

Immediate steps to fix our social safety net

Universal credit and other benefits must be substantially reformed, by:

  • Raising the basic level of universal credit and legacy benefits, including jobs seekers allowance and employment and support allowance, to at least 80 per cent of the national living wage (£260 per week).
  • Ending the five-week wait for first payment of universal credit by converting emergency payment loans to grants.
  • Removing the savings rules in universal credit, allowing more people to access it.
  • Significantly increasing benefit payments to children and removing the two-child limit within universal credit and working tax credit.
  • Ensuring no-one loses out on any increases in social security by removing the arbitrary benefit cap. In addition, no one on legacy benefits should lose the protection of the managed transition to universal credit as part of this change.
  • The suspension on conditionality requirements for universal credit needs to remain.  

Sick pay must cover the basic costs of living

  • Statutory sick pay must be sufficient to cover basic living costs. Weekly payments must rise from £95.85 to the equivalent of a week’s pay at the Real Living Wage – around £320 a week.
  • The lower earnings limit for qualification for sick pay must be removed to ensure everyone can access it, no matter how much they earn.

Wider package of financial support for households

  • The NPRF restrictions need to be removed permanently.  Everyone living in the UK must have access to public funds.
  • Introduce a wider package of support for households, by increasing the hardship fund delivered by local authorities. A hardship fund should not just be there for the current crisis; government should put in place a fund that provides a permanent source of grants to support those facing hardship. 

Alan Turing is voted Greatest Figure of the Twentieth Century

BBC Two viewers have voted Alan Turing as their ultimate icon of the 20th century. Alan Turing was in contention with finalists Nelson Mandela (Leaders), Ernest Shackleton (Explorers), David Bowie (Entertainers), Dr Martin Luther King Jr. (Activists), Muhammad Ali (Sports Stars) and Pablo Picasso (Artists & Writers) for the honour.

Continue reading Alan Turing is voted Greatest Figure of the Twentieth Century

Waterfront Consultation: put people at heart of Masterplan

YOU YOU can almost hear the groans of disbelief that yet another master-planning exercise has been announced for the Waterfront of north Edinburgh (writes ROSS McEWAN). Continue reading Waterfront Consultation: put people at heart of Masterplan

Mixed response to draft Budget

Responses to Scotland’s draft Budget have been mixed. Will the proposals take Scotland forward? As ever, opinion is sharply divided …

Convention of Scottish Local Authorities (COSLA):

Local Government has faced really difficult times over the last few years and these will remain into the future despite a more measured approach by the Scottish Government in delivering the local government settlement for next year.
However, this is not a flat cash settlement.

Councillor Gail Macgregor, COSLA’s Resources Spokesperson said: “I would like to start by putting on record the engagement the Cabinet Secretary has had with us to meet the pressures that we have presented, particularly in relation to our shared priorities.

“That said, the reality is that this is not a flat cash revenue settlement for local government.  It is a cut of £153m for essential local government services. In addition to this, while COSLA is fully supportive of wider capital investment we are disappointed that there is a cut of £60m to local capital funding.

“There are serious financial challenges that lie ahead in several areas and there is no doubt that these will have an impact on the essential services that councils deliver.  A particular issue is public sector pay if this is not fully funded. 

“Whilst councils have the ability to raise council tax in their local area that is a decision they will take based on local needs and circumstances and is subject to a 3 per cent cap which has been imposed on councils by the Scottish Government.

“The current Spending Review process makes it extremely difficult for councils to set medium and long term financial plans due to short term funding and annual settlements.” 

Councillor Macgregor concluded: “The discussions in relation to this year’s settlement between COSLA and Scottish Government have been both positive and constructive.”

COSLA President Councillor Alison Evison added: “COSLA has been engaging with all political parties across the Parliament throughout this process and, as this is a draft budget, we will continue to defend essential services over the coming weeks.”

Employers organisation CBI Scotland: 

Hugh Aitken, CBI Scotland Director, said:  “The Finance Secretary promised that today’s draft Scottish Budget would be a boost for business and he delivered on a number of fronts. 

“On business rates, we’re delighted to see that our call for full implementation of the Barclay Review recommendations and the linking of rate increases to CPI instead of RPI will largely be taken forward. We look forward to seeing further clarity on how this will be achieved in the implementation plan published today.

“Companies across Scotland will also benefit from additional investments in business R&D, transport, digital connectivity, education and city deals. Support for the Scottish National Investment Bank and the introduction of the new Building Scotland Fund should also be applauded.

“By putting productivity at the heart of the Budget it’s clear that Derek Mackay has listened to organisations like the CBI that have said consistently that boosting productivity is the only sure-fire way to grow our economy, generate the revenues we need for quality, sustainable public services and raise living standards. This is a step in the right direction and evidence of the value of business and government working together. 

“But things aren’t all rosy – the prospect of income tax rises and added complexity in Scotland’s tax code will be a bitter pill to swallow. At a time when our economy is stuck in a cycle of weak growth and we face unprecedented levels of uncertainty, the last thing we need is to make it harder for companies to attract talent or make Scotland appear a less attractive place to do business.”

Scottish Council of Voluntary Organisations (SCVO):

John Downie, Director of Public Affairs for the Scottish Council for Voluntary Organisations (SCVO) said: “Today’s Scottish Government Budget was a landmark one, with the Scottish Government quite radically overhauling the tax system. We welcome the introduction of a more progressive system and the raising of additional revenue – although there is room to go further in the future. However, we must be careful that this divergence from the UK wide system does not have negative implications for Gift Aid, which is a valuable source of income for so many charities across the country.

“We welcome the decision to remove the public sector pay cap, which will help people whose living standards have been squeezed over the past decade. However the budget fails to recognise the many third sector workers delivering public services who are not even being paid the living wage. We hope between now and passing the budget, the Cabinet Secretary will ensure third sector workers will also benefit from a similar commitment.

“The Government’s flagship commitment to delivering 100% superfast broadband coverage is highly ambitious, but the full benefits of this will not be realised unless broadband packages are made more affordable and the most marginalised in our society have the skills to realise the benefits it can bring, in terms of reducing poverty, improving health and social exclusion.”

Federation of Small Businesses Scotland (FSB):

Andy Willox, FSB’s Scottish policy convenor, said: “We wanted to see a Scottish Government budget which offered firms a little ballast in choppy market and political conditions. Instead the Scottish Government has chosen to steer us into uncharted economic waters. 

“A majority of those in business in Scotland were against changes to the income tax regime. However, the Cabinet Secretary underlined that his tax changes were designed to cause minimum economic disruption. Only time will tell what the wider impact will be, but our members have a real concern about the effect of these changes on household spending power. 

“On rates, we’re pleased to see Ministers seize upon the most sensible recommendations of the Barclay review. Moving to a different inflation measure will mean a smaller increase to many firms’ bills. Further, the introduction of a new business accelerator relief is a clever move that deserves plaudits. By far the most valuable commitment in the budget for Scottish smaller firms is the retention of the Small Business Bonus rate relief. 

“It is great to see the Scottish Government allocate funding to fulfil their manifesto commitment to address Scotland’s patchy digital infrastructure. We need to see governments in Edinburgh and London work together to address broadband and mobile issues north of the border.  

“Other initiatives – like cash for the Scottish National Investment Bank and support for the enterprise and skills agencies – won’t mean a lot to many ordinary businesses. Ministers have to ensure that these bodies and initiatives deliver for local economies and the wider business community.”

UNISON Trade Union:

Dave Watson, UNISON Scottish organiser said: “Any relief from Tory austerity is welcome, but the very modest use of tax powers, particularly for the highest earners, means that public services will be under considerable pressure next year. Yet again it is councils who will bear the brunt of austerity with another real term cut in revenue allocations.

“A real terms increase for workers below £30k in the pay policy is a move in the right direction, but for many others a 2% increase is another real terms cut in pay. However, an unfunded pay policy is of no value for council workers.”

David Watt, Chief Executive of Arts & Business Scotland:

“On behalf of all of our stakeholders and members at Arts & Business Scotland, we strongly welcome the Scottish Government’s commitment of an additional £6.6 million to Creative Scotland’s regular funding programme next year. It’s a real lifeline for Scotland’s cultural sector, helping to offset the recent downturn in Lottery funding and an important recognition of the crucial contribution culture makes to the wider economy in Scotland.”

Hew Edgar, RICS (Royal Institute of Chartered Surveyers) Policy Manager:

Following in the footsteps of Philip Hammond and scrapping LBTT for first time buyers to the value of £175,000 is not the answer to stimulate activity in the Scottish housing market, making today’s announcement disappointing .

Whilst this change has potential to stimulate activity in the short term, it comes at a time when the market is subdued, and does not tackle the overarching problem of housing shortage supply across all tenures.

This Government must realise that prioritising demand side measures is not conducive to market fluidity and will do little to solve the chronic shortage of suitable accommodation across Scotland’s housing options.

Once again, we call on Scottish Government to review the current LBTT as a priority going forward as this current framework is not only limiting market activity, but could ultimately bring the market to a standstill.   That said, we hope that the “Building Scotland” fund will provide the required support for alternative models of housing delivery.

On a more positive note, the £600m investment in providing superfast broadband – ensuring the last 5% of Scotland’s ‘non-spot’ dwellings – will be connected to the fourth utility by 2021, will be greatly received.

As part of £4bn investment in this budget – £1.2bn of which will be directed towards transport – tackling the infrastructure deficit is always welcome. But Mackay held back and gave little away as to where the funding will be directed. He also missed an opportunity to attract and retain top talent to Scotland by not building on Scotland’s infrastructure success of the Queensferry Crossing, with no addition of noteworthy projects to the infrastructure pipeline.

General Election ’17: What if the Greens had stood?

LUKE CAMPBELL reckons we could have seen some different results had the Greens contested more seats in the recent general election …

In the 2017 snap General Election the Scottish Green Party fielded just three candidates – Lorna Slater contested Edinburgh North and Leith, Patrick Harvie (Co-convenor and List MSP for Glasgow Region) stood in Glasgow North, and Debra Pickering was the first ever Green candidate in Falkirk for a UK parliamentary election.  Continue reading General Election ’17: What if the Greens had stood?

42% of young voters steered clear of snap General Election

LUKE CAMPBELL reflects on the general election results and says more must be done to engage young people in the democratic process:

A YouGov poll, published on Tuesday 13 June has suggested that UK-wide 42% of all eligible voters aged under 25 did not vote in the snap General Election of Thursday 8th June (writes Luke Campbell). Continue reading 42% of young voters steered clear of snap General Election

Opinion: Solidarity and Borders

It may seem obvious, but it is essential to stress that solidarity does not end at borders. In recent years, UK politicians and many celebrities have been given a public stage to describe how disappointed, even ‘sad’, they would be were Scotland to succeed and become a fully independent state – see The Independent’s ‘Love letters to Scotland from writers who want it to stay in the union’ (September 2014), David Bowie’s “Scotland, stay with us” comments via Kate Moss (February 2014), or The Herald’s ‘200 celebrities and public figures sign letter backing indyref No vote’ (August 2014), writes LUKE CAMPBELL.

Within the UK, Scotland has a shared recent history with England, Wales, and Northern Ireland. So too, Scots have a record of international solidarity with the likes of Chile and Spain. In 1974, whilst then-Prime Minister Margaret Thatcher was a personal friend of the Augusto Pinochet, 4,000 workers at the East Kilbride Rolls-Royce factory refused to repair the dictator’s Hawker Hunter aircraft used in the attack on the democratically elected socialist government of Salvador Allende.

A fan boycott campaign even took place when in 1977 the Scottish Football Association decided that Scotland’s men’s team would play at the Estadio Nacional Julio Martínez Prádanos in Santiago. The stadium was used as a detention centre during the military coup, with more than 40,000 people having been held prisoner. During the Spanish Civil War, more than 2,000 volunteers from throughout the UK fought for the International Brigades against General Franco’s fascist regime.

International solidarity has never stopped at political borders, nor has it been dependent on the permission of governments. In 2003, 3million people protested in Rome against the Iraq war (a country of 57.3million at the time, the protesters representing 5.2% of the Italian population), 1.5million protested in Madrid (42.7million, 3.5%), 1million in London (50million, 2%), and 100,000 in Glasgow (5.1million 2%).  Likewise, within the political union of the UK, borders have never prevented class solidarity. When the Conservatives trialled The Community Charge (the Poll Tax) in the UK ‘region’ of Scotland in April 1989, the Scottish and English working classes protested side-by-side as they sought to abolish the charge, and prevent its implementation in our neighbouring states.

Indeed, some 1,000 people travelled from Liverpool to Glasgow for the anti-poll tax demonstration. More recently, we’ve witnessed large turnouts at demonstrations in reaction to US President Donald Trump’s Executive Order barring citizens from seven Muslim majority countries from entering the US, along with an indefinite suspension of their Syrian refugee programme.

We are already witnessing efforts to reduce the effectiveness of Trade Unions. Having introduced employment tribunal fees, and in doing so created a financial barrier to social justice, May’s Government pushed through the Trade Union Bill in May 2016. Whilst solidarity of the working class was a fundamental aspect of demonstrating participation on the global stage, as outlined above, the passing of the bill marked a “dark day for working people” according to Unite’s General Secretary Len McCluskey (May 2016).

He added that “it is the workers of England, who will bear the brunt of the Conservative government’s measures, for the devolved administrations in Scotland, Wales and Northern Ireland have all stated this law has no place in their countries or workplaces”. In addition, despite Theresa May’s promises to “ensure that workers’ rights are fully protected and maintained” her inaction in the face of withdrawal from the EU risks further reduction to workers’ rights.

UK Labour Party MP for Great Grimsby, Melanie Onn, who’s bill to ensure that workers’ rights remain the same post-Brexit was met by Tory filibustering, has likened May’s willingness to discuss workers’ rights post-Brexit to ‘radio silence’ (January 2017).

Onn noted that were the UK to leave the EU without replacing the European Communities Act, legislation including parental leave, the working time directive, and equal rights for part-time and agency workers would disappear. Even the Great Repeal Bill results in a scenario whereby ‘hard-fought protections could be scrapped with just a simple vote of Parliament’ (Kentish, January 2017).

An Inclusive Country?

UK records state that at present, approximately 181,000 EU nationals live in Scotland. On 13th March 2017, Westminster rejected a House of Lords bill amendment that would have guaranteed the rights of EU citizens following the Brexit process. The UK Government’s desire for any referendum on Scottish independence to be held post-Brexit may, therefore, arguably be down to a desire to prevent EU nationals from voting, just as they were denied the right to vote on Brexit itself – this being despite eligibility to vote in the 2014 Scottish independence referendum.

Only those aged 18 and over from the UK, Ireland, or the Commonwealth could vote in June’s Brexit referendum. Sixteen and seventeen year olds, legally able to leave school and get married in Scotland, were permitted to vote in the 2014 referendum, they too were ineligible. The Brexit vote saw all 32 local council authorities in Scotland vote to remain in the EU, a Scottish rate of 62% to remain compared to just 48% UK-wide. At the SNP’s Spring Conference in March 2017, Aberdeen South and North Kincardine branch tabled a motion that read, “Conference believes extending voting rights to all those who make their home in Scotland would send an important message that we are an inclusive nation that believes in equal rights.”

The motion was passed unanimously, highlighting the stark contrast in approaches taken between the UK Conservative Party and the SNP. Whilst the former Scottish Labour leader Johan Lamont may have stated on the STV that Scottish people are “not genetically programmed to make political decisions” (February 2014 – aye, seriously!), as a nation, we in Scotland voted overwhelming to remain in the EU.

Immigration was a central theme during the Brexit campaign, and since the success of the leave vote, the likes of The Guardian and The Telegraph have regularly run articles noting the concern of workers from other EU countries living in the UK regarding their right to live the lives they have built here for themselves. The Guardian (January 2017) stated that the Home Office has faced ‘a 50% increase in the number of applications [from EU citizens] seeking permanent residency since the Brexit vote on 23 June’ (56,024 in June 2016, up from 36,555 in April 2016).

In March 2017 academics at the University of Oxford stated that ‘staff would go if they were not reassured about their future’, whilst similarly The Times reported that the ‘NHS could lose 25,000 workers because of EU vote’ (March 2017) representing two-fifths of EU citizens working UK-wide in the NHS.

We have witnessed the dismantling of the NHS in England – outsourcing of national services to Virgin Care, Care UK, and Bupa, letters have been sent by NHS Trusts to asylum claimants that ‘contravene NHS guidelines’ regarding maternity care, and the passing of the Health & Social Care Act which removes the UK Government’s responsibility for the NHS (El Gingihy, 2015).

The NHS was a rarity, a British system that we could be proud of, now south of the border it has been eroded beyond recognition. With the UK Government dictating the size of the Block Grant received by the Scottish Government, little stands in the way of increased pressure being placed on the Scottish Government to follow suit. Despite assurances over the protection of “our most cherished public service”, the SNP can’t hold out forever.

Conclusion

With The Times stating that Whitehall officials are intent on forming ‘Empire 2.0’ (March 2017), remaining in the UK seems to signal an inward looking political entity, determined to relive its history. Becoming independent may be our only chance to create a modern fit-for-purpose political state, one that values the 181,000 EU nationals who have chosen to make this country their home.

The mass exodus of workers that looms over the Brexit negotiations lends itself to metaphors of rats fleeing a sinking ship. The risks posed to workers’ rights in light of the Trade Union Bill, the precariousness of the Great Repeal Bill, and the Tory mockery in the face of efforts to protect the rights of EU citizens demonstrates that despite a desire for progressive and inclusive politics from some, in the face of the current UK Government these efforts are futile.

In March 2017, the Scottish Conservative Party posted to Twitter that ‘A referendum cannot happen when Scots have not been given the opportunity to see how our new relationship with the EU is working’.

I don’t have to have experienced homelessness to know that I won’t enjoy it, and I don’t have to have lived in an isolationist UK to know that I would rather fight for an internationalist and outward looking Scotland. The people of Scotland may have a chance to break away and rebuild in the 21st century. I firmly believe we should take it.

LUKE CAMPBELL