Politics – Page 202 – The NEN – North Edinburgh News

Welfare cuts: the worst is yet to come?

Reforms to the welfare system could see Scottish welfare spending reduced by around £6 billion over the six years to 2015-16, according to new analysis published today.

The reforms will see a reduction in support for families, children and those with disabilities.

The majority of the total reduction in welfare expenditure in Scotland, nearly 70 per cent, is expected to be in 2014-15 and 2015-16, with the largest reductions in expenditure brought about by changes to how benefits are uprated, tax credits and child benefit.

Deputy First Minister Nicola Sturgeon said:

“We are committed to mitigating against the harmful effects of Westminster welfare reforms where we can – but the majority of the cuts are still to come.

“These changes to the budget will not only impact on the most vulnerable in our society, they will also set our progress on tackling poverty back by at least ten years.

“Child Poverty Action Group has suggested that, after housing costs have been taken into account, 100,000 more children in Scotland will be pushed into poverty by 2020 because of these reforms.

“And according to the Trussell Trust, the number of people using food banks is increasing with 56,000 people needing help between April 2013 and February 2014.

“We want to develop a society that not only provides fair support and decent opportunities for all but also protects the vulnerable in our society. The only way to guarantee that is to have possession of the powers to deliver it. Only then can we finally stop these reforms from harming people who need our help.”

Speaking yesterday, Work and Pensions secretary Iain Duncan Smith defended changes to the welfare system, saying they would save the taxpayer £50 billion by the end of this Parliament.

Mr Duncan Smith said: “I think the work programme is now for the first time ever working with people, who were once on sickness benefits and who are now not, going back to work.”

Malcolm Chisholm to step down

Lesley Hinds to contest North and Leith

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.”

Letter: Need before greed

Dear Editor

Particularly during and since the Thatcher times people have been encouraged to think only of themselves. It has the divisive effect – which was it’s intention – of tearing people away from their natural instinct of caring for others. The evidence that the policy of looking after number one is the wrong thing to do is all around us, those with the most wealth have the most power.

A divided people are easier to manipulate: those in work against the unemployed who have to exist on benefits, the disgusting campaign against the disabled living on benefits, pitting those who work in the private sector against those in the public sector, the disgraceful ‘bedroom tax’ action taken against tenants and the continuing privatisation of public property …

The situation is not unique to this country; exactly the same is happening in many parts of the world, demonstrating that the capitalist system under which we live cannot solve their problems. What can we do? We can make a start to change things by identifying essential needs everyone has in common, to maximise unity; these essential common needs will show that no individual or groups of individuals should have the power to restrict or withhold them in the pursuit of profit. The following is a most obvious list of common needs upon which that unity can be achieved and removing them from those who only see those needs as a source of private profit:

Heating and power: this basic necessity should be treated as such, not as a source of private profit
Water & sewerage services: As above, absolute health essential
Transport: Essential public service to enable easy access to and from work and social activities
National Health Service: To ensure treatment is a permanent public universal service paid for out of taxation.
Recreation and Learning facilities of all kinds: Work is not an end in itself but a means of developing an intelligent quality of living in whatever choice of interest.
Greenbelt and Open Spaces: Selling these off to developers to be stopped immediately and lawful public consultation on any building applications.

A. Delahoy

Silverknowes Gardens

1 April was ‘devolution landmark’

1 April marked a major milestone in the continuing road of Scottish devolution, Scottish Secretary Alistair Carmichael said yesterday. He said that as part of the United Kingdom, Scotland has ‘the best of both worlds’

Major financial changes introduced as part the Scotland Act 2012 will begin to take effect on 1 April next year, increasing the accountability of the Scottish Parliament to the voters who elected it for raising revenue, and making decisions about how it is spent. These changes will mean that the Scottish Parliament will be responsible for funding around a third of devolved spending – roughly double the amount it currently funds.

Mr Carmichael said: “The Scotland Act provides the largest transfer of financial powers to Scotland in over 300 years. The Act received the unanimous support of both the UK and Scottish Parliament building on and strengthening the great success that is devolution.

“The Scotland Act devolves significant tax powers including the ability to set a new Scottish rate of income tax and gives the Scottish Government access to substantial borrowing powers. New powers bring new accountability and new responsibilities. To the people of our country, Holyrood will be more responsible and more accountable than ever before for the money it raises and for the money it spends.

“Today marks a major milestone in the continuing road of devolution. As part of the United Kingdom, Scotland has got the best of both worlds: a strong Scottish Parliament with financial powers that can take decisions on those things that affect our everyday lives, like our schools and hospitals and we can pool our resources ensuring we benefit from a strong UK economy that is growing and creating jobs.”

The powers which come into effect on April 2015 are:

The full devolution of stamp duty land tax and landfil tax from April 2015. The Scottish Government has taken forward legislation to replace these taxes in Scotland with the Land and Buildings Transaction Tax and Scottish Landfill Tax. It is also taking forward legislation to establish Revenue Scotland as the tax administration responsible for the collection of the new taxes.
Extended current borrowing powers of up to £500m and creation of a new Scottish cash reserve to help manage the new tax receipts.
A new £2.2bn capital borrowing power for the Scottish Parliament, with a limited version of the power in place from April 2013 to enable the Scottish Government to fund £100m of pre-payments for the Forth Road Crossing.

The powers which come into effect from April 2016 are:

A new Scottish rate of income tax. The basic, higher and additional rates of UK income tax will be reduced by 10 pence in the pound for Scottish taxpayers. The Scottish Parliament will set a new Scottish rate – with no upper or lower limit – which will apply equally to all of the reduced main UK income tax rates.
For example, a UK basic rate at 20 pence would be reduced down to 10 pence, and a Scottish rate of 9 pence would see Scottish taxpayers instead paying 19 pence per pound at basic rate.
The block grant to Scotland will be reduced by an amount corresponding to the 10 pence in the pound reduction on the UK rate of basic, higher and additional tax. This will mean that a Scottish rate of 9 pence would see a reduction in income for the Scottish Government, while a rate of 11 pence would see an increase as compared with current arrangements.
The Act also introduced a power to create new devolved taxes, by a process of agreement between the two governments. This power has been in force since May 2012. The Scottish Government has not yet made any proposals to create new devolved taxes using this power.

Game show to replace Referendum Special?

‘Referendum makes for tedious television’

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”.

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.

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”.

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!”

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.

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.

“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.”

Budget: ‘government is leaving retirement to chance’

‘Pensions ‘fiddle’ proves government is leaving retirement to chance‘

Britain’s biggest pensioners’ organisation The National Pensioners Convention (NPC) say pension changes in the recent Budget will simply store up bigger problems for later. The group adds that the private pensions industry might ‘make a killing’ but changes proposed by the Chancellor do not address the underlying problems of funding an adequate income in retirement.

The NPC’s main objective is to promote the welfare and interests of all pensioners, as a way of securing dignity, respect and financial security in retirement, and the organisation believes that the Chancellor’s real intention is to place further responsibility for retirement onto individuals and the market, rather than seeing it as a role for the government. The campaigning group adds that welfare caps, pensioner bonds and changes to pensions prove government ‘is leaving retirement to chance’.

Dot Gibson, NPC general secretary said: “Pensioners will be concerned that benefits such as the winter fuel allowance, cold weather payments and the Christmas Bonus have all been placed into the welfare cap, which could lead to cuts in the future, at a time when fuel bills in particular are continuing to rise. The announcements regarding a new Pensioner Bond and changes to ISAs were also rather rose-tinted. 55 per cent of all pensioners receive less than £10 from their savings and 29 per cent of older couples have less than £1500 put aside.

“The idea that older people therefore have huge amounts of money to invest is rather optimistic, but the most serious change was related to defined contribution pensions. These reveal that more has to be done to improve the prospects for future pensioners. The state pension is one of the worst in Europe and the high water mark of decent company pensions has long gone.”

She went on: “However, allowing people to take all their pension pot doesn’t make the pot any bigger and belies the fact that the average worker will have a pension pot of little more than £30,000 to cover all of their retirement. Enabling people to take their pensions from aged 55 also shows the chancellor has realised there is a huge problem coming down the line which has to be funded. His plans to raise the state pension age to 68 will create an army of older workers, who if lose their jobs in their late fifties will be unable to find work. The only way they will have to fund this period of limbo until they reach retirement age will be to use their pensions – which might solve the problem in the short-term but will store up bigger problems later on when their money starts to run out.

“Once again it’s a pensions’ fiddle and those left to carry the burden will be some of the lowest paid workers.

“The reality is money purchase defined contribution pension schemes are simply not the answer to funding a decent income in retirement. The private pensions industry might make a killing from the schemes but most workers end up with much less than they thought.”

For further information about the National Pensioners Convention visit www.npcuk.org or email npc.scotland@yahoo.co.uk

Johnstone calls for Citizens Income to address poverty divide

CHILD POVERTY: JOHNSTONE HIGHLIGHTS CITIZENS INCOME IDEA

Green MSP for Lothian Alison Johnstone has urged the Scottish Parliament to consider new ideas – including a basic income for all citizens – to tackle poverty.

Speaking in a debate on child poverty yesterday Ms Johnstone, a member of Holyrood’s economy committee, highlighted a range of research including:

A paper by the Joseph Rowntree Foundation which says the single biggest risk to progress is benefit cuts and growing use of sanctions.
Research by the Fawcett Society which says a fifth of British women’s income comes from benefits, while for men the figure is one-tenth; therefore the loss of benefits and services hits women hardest.
The Jimmy Reid Foundation report ‘In Place of Anxiety’. The authors Willie Sullivan and the late Ailsa McKay focused on tackling the poverty wages that create in-work poverty.

Ms Johnstone said: “We live in a wealthy nation yet inequality is increasing, and the austerity agenda has a particular impact on women and children. Families struggling have not chosen to be in poverty, and are bearing the brunt of the UK cuts making the situation worse.

“One idea we would do well to explore is the citizen’s or basic income. This would replace our incredibly complex welfare system and end the stigma that many people face.

“It’s essential we measure our economic success on how we close the gap between rich and poor and how we create a fairer society for children.”

War of words over Scottish economy (Part 28)

Swinney: ‘Stark reality of UK budget cuts revealed’

Alexander: ‘being part of the United Kingdom brings true benefits’

Westminster and Holyrood finance spokesmen yesterday offered very different views on what last week’s Budget will mean for Scotland:

Speaking ahead of yesterday’s Conservative finance debate, Finance Secretary John Swinney expressed concern over the impact the UK Government’s Budget changes are having on the most vulnerable in society.

Mr Swinney said: “Treasury analysis shows that as a result of Westminster’s tax rises and benefit and public service cuts, the poorest 20% of households will be on average the equivalent of £814 worse off in 2015-16.

“Analysis of the current UK Government’s Budget changes to date, including Budget 2014, also shows that on average households will be worse off by the equivalent of £757 a year in 2015-16 as a result of changes to taxation, benefits and public services brought in by Westminster, while, when it comes to changes made to taxes, tax credit and benefits alone, those in the bottom 10% of income distribution are expected to see some of the largest losses as a percentage of their income.

“These figures are extremely concerning and impact on the most vulnerable in our society. Such drastic cuts to incomes and to services put the progress that has been made in tackling poverty at risk. As the Child Poverty Action Group has warned, these cuts coming from Westminster risk pushing a further 100,000 children into poverty by 2020.

“Those arguing for the status quo should consider the harm being done to households across the country as a result of Westminster budgets.

“The Scottish Government is committed to mitigating the harmful effects of Westminster welfare reforms and our social wage helps households during difficult times. However to respond to the key challenges of building a sustainable and secure economy, creating jobs and growing the working population, protecting public services, maintaining a decent social security system and closing the gap between rich and poor we need the powers of independence.”

With fewer than 200 days to go until the Scottish referendum, the UK Government yesterday produced the latest edition in a series of information packs – focussing on money and the economy in the context of the independence debate.

Visit the Scottish referendum page for more information

Danny Alexander, Chief Secretary to the Treasury, said: “As part of the UK the Scottish economy is growing, inflation is down and more people are in work. By remaining part of the UK, Scottish industry and jobs will be protected by the generous freeze on duties on spirits and the £3bn tax break for oil and gas industries we announced at the Budget, as well as the big cuts in income tax helping 2 million Scottish workers.

“This new pack sets out some key facts people in Scotland need to know before the referendum in September. I urge everyone to read up on the facts and understand the true benefits being part of the United Kingdom brings to Scotland.”

The UK Government Money & Economy pack highlights the following key facts, demonstrating that a United Kingdom makes for a stronger economy benefitting us all:

United means shared economic success. Following the financial crisis both the UK and Scottish economies are growing again and employment is at its highest ever level.
United means we benefit from a single, domestic market, and a truly borderless economy. This means people and businesses in Scotland can buy and sell goods and services freely with the rest of the UK. Creating a border would reduce trade and cost jobs.
United means we pool resources and share risks, which helps us prosper. Being part of the UK’s broader tax base means the peaks and troughs in oil and gas receipts are evened out so public spending remains stable.
United means our finances are more secure. During the financial crisis, the banking system received extraordinary support, which was only possible due to the scale of the UK. If Scotland were an independent country, its banking sector would over 12 times the size of its economy. Not even the Icelandic, Irish or Cypriot banking sectors were that big at the height of the financial crisis.
Going it alone could be costly: The National Institute of Economic and Social Research has assessed that Scottish interest rates could be up to 1.7% higher than the continuing UK, which could cost homeowners in Scotland an extra £1,700 to an annual mortgage payment.
Spending matters: Last year Scotland received around £1,300 more public spending per person than the UK average.

For more information and to access the material go to: www.gov.uk/scottishreferendum

The Money & Economy Pack is the second in a series of packs produced b the UK Government highlighting the benefits of Scotland remaining in the UK. The aim is to provide voters with clear and accurate information to help them make an informed decision ahead of the Scottish independence referendum in September 2014.

The material comes in a factsheet-style format and complements the more detailed Scotland Analysis series, which contains in-depth analysis of the benefits of a United Kingdom.

Lazarowicz: Green technology must be at the heart of economic strategy

Mark Lazarowicz MP is calling on the UK and Scottish Governments to realise fully the potential of the green economy to create skilled, long-term jobs at the same time as tackling climate change and fuel poverty.

In a wide ranging essay for the Scottish Fabian Society, the North and Leith MP says the green economy could draw on existing industrial strengths, pointing to local examples in Edinburgh as well as elsewhere in Scotland.

Mark Lazarowicz (pictured above) said: “The financial crisis graphically illustrated the need to rebalance the Scottish and UK economies and we should place the green economy at the heart of our economic strategy.

“For instance, energy to heat your home should not be a luxury and energy efficiency is one of the most important ways to tackle fuel poverty in the long term as well as climate change.

“Green technology also has the potential to be a major export sector, not just in large-scale manufacture of say, wind turbines, but also of the parts required and project design where Scotland already has a wealth of expertise.

“It’s much more than a niche industry: with new rules on recycling and targets for cutting carbon emissions we have to green our economy and Scotland should be leading not lagging behind.”

The MP’s article appears in a new collection of essays by Scottish Labour MPs setting out policy alternatives for a new future for Scotland. It can be found at

http://www.scottishfabians.org.uk/publications/

Budget 2014: Rich rewards?

All Budgets are political, but some are more political than others and George Osborne’s Budget speech yesterday was clearly looking ahead to the next General Election – with half an eye on the Scottish Referendum too.

With the economy growing faster than forecast, unemployment falling and business confidence growing, Britain may not be booming but the worst of a deep recession is clearly behind us and a confident Chancellor took the opportunity to reward the ‘makers, the doers and the savers’.

The Chancellor expressed particular sympathy for those with savings and pensioners, who he said had suffered most during the long recession – and many of whom, incidentally, would be natural Conservative voters.

The main points of the Budget were a new Pensioner Bond savings scheme offering up to 4% interest and a new single ISA with an annual tax-free savings limit of £15,000. Those ‘hard-working families’ so beloved of the politicians were supported too – the amount workers earn before income tax will go up by £500 to £10,500 and this comes on the back of extra funding for childcare support announced on Tuesday.

Other headline-grabbers include a 1p cut in beer duty with no increase on spirits or cider, and Bingo tax halved from 20% to 10%. Inevitably smokers will be asked to cough up more – cigarettes go up by 2% above inflation.

Predictably there has been a mixed reaction to the Budget statement.

Responding to Osborne’s statement, Labour leader Ed Miliband said the Budget ‘confirms people are worse off under the Tories. A worse off budget, from an out-of-touch Chancellor.’

Mr Miliband said: “The Chancellor spoke for nearly an hour. But he did not mention one central fact: the working people of Britain are worse off under the Tories.

“Living standards down: month after month, year after year.2011 – living standards down. 2012 – living standards down. 2013 – living standards down. And since the election working people’s living standards £1,600 a year – down.

You’re worse off under the Tories. Their 2010 manifesto promised: “An economy where…[people’s] standard of living…rises steadily and sustainably”. But they have delivered exactly the opposite. Standards of living not rising steadily and sustainably, but falling sharply and steeply.

And today the Chancellor simply reminded people of the gap between the Chancellor’s rhetoric and the reality of peoples’ lives. Living standards falling for 44 out of 45 months under this Prime Minister – unmatched since records began. No amount of smoke and mirrors today can hide it.

We already know the answer to the question millions of people will be asking in 2015: “Are they better off now than they were five years ago?” The answer is no. Worse off. Much worse off. Worse off under the Tories.”

Miliband said the Budget was the ‘same old Tory trick – a classic Tory con. Give with one hand and take far more away with another’. He went on: “The Chancellor painted a picture of the country today that millions of people simply will not recognise. Because this is Cameron’s Britain 2014: 350,000 people going to food banks, 400,000 disabled people paying the Bedroom Tax, 1 million more people paying 40p tax, 4.6 million families facing cuts to tax credits.

“But there is one group who are better off. Much better off. We all know who they are. The Chancellor’s chums. The Prime Minister’s friends. The Prime Minister rolls his eyes, he doesn’t want to talk about the millionaire’s tax cut. No mention of it in the Budget speech – the beneficiaries of this year’s millionaire’s tax cut.”

Scotland’s Finance Secretary John Swinney said the Chancellor’s Budget ‘fails to deliver for Scotland.’ and said that independence is the only way Scotland can properly create opportunities and secure the investment in public services and the economy Scotland needs.

Commenting on the Chancellor’s Budget, John Swinney said: “Scotland is a wealthy country and we can more than afford to be independent. In each of the last 33 years Scotland has paid more in tax per head than the UK and in the last five years Scotland would be £1600 per head better off than the UK – money that could have been invested in the economy, in public services and reducing debts.

“This was Westminster’s last chance to show it could create opportunity for Scotland and reject the diet of austerity. Once again Westminster has failed to deliver for Scotland. This budget confirms a further squeeze on public spending and a further austerity plan.

“The £63m added to the Scottish budget today is small beer compared to the significant cuts Scotland has faced since 2010. The Chancellor is planning a further £37 billion of cuts across the UK over the next two years and tens of billions to come afterwards. These cuts would be worse still if Scotland does not vote for independence and Westminster takes the knife to the Barnett formula.

“The reality is Westminster has presided over the weakest recovery in living memory, and since the downturn began the UK has had the weakest performance of any G7 country outside of Italy.

“UK public sector debt is now set to reach £1.5 trillion, its highest level in history, confirming that the Chancellor’s economic strategy has failed.

“Despite the Chancellor’s claims of improved economic performance by the end of next year, the UK economy is now expected to have grown by 5% less than he projected when he first came to office – forcing him to borrow an additional £190bn beyond his original forecast.”

The Finance Secretary continued: “While I welcome the Chancellor’s choice of whisky as his referendum tipple, sticking with the Westminster system will leave Scotland with a severe hangover. The changes on APD simply do not go far enough to solve the problems faced in Scotland and with independence we will reduce rates of APD by 50% with a view to abolishing them completely when conditions allow.

“Help for savers and pensioners is long overdue but with real incomes being squeezed very few families in Scotland will be able to take full advantage of what is on offer.

“And with the welfare cap set to include pensions credit and savings credit which currently offer real help to poorer pensioners and will continue in an independent Scotland the Chancellor’s claims to protect pensioners do not stack up.”

Commenting on the latest projections from the Office of Budget Responsibility and the Chancellor’s claims on North Sea oil, Mr Swinney added: “Westminster and those opposed to independence cannot simultaneously accept in full the Wood Report with its projections of higher production and at the same time cite the OBR forecasts of lower revenues from declining production.

“Increased investment in the North Sea will lead to increased production with a further 24 bn barrels of oil still to come from the North Sea.

“The Scottish Government has shown the progress that can be made in Scotland with the few powers we currently have. Figures today show Scotland is continuing to outperform the UK across all headline labour market indicators, with a lower unemployment rate, higher employment rate and lower economic inactivity rate. In addition, the latest surveys show business is both investing in Scotland and hiring in Scotland.

“In just under six months’ time voters in Scotland can choose to put all the decisions on taxation, spending and job-creation in the hands of the people of Scotland, not Westminster politicians, build on our success and escape from the poor decisions of Westminster governments we didn’t elect.”

Childcare charities have welcomed the extra support to working families, but they claim it has shown the Government has continued to fail to put children at the centre of spending decisions.

Dr Hilary Emery, chief executive of the National Children’s Bureau said: “Today’s Budget is not that of a Government aspiring to make our country the best for children to grow up in. While NCB welcomes commitments to assist families with the costs of childcare and to extend the pupil premium to early childhood services, we are concerned that the Government is again taking a piecemeal approach, failing to put children at the heart of spending decisions.

“For childcare to make a difference to the life chances of vulnerable children, it must be good quality. So, it is vital that the early years pupil premium raises the quality of childcare – increasing levels of staff qualifications, securing strong leadership and providing support for children with additional needs.”

The Child Poverty Action Group said: “We responded positively to announcements of increased investment in childcare cost support through Universal Credit. But we believe that overall the Budget has done too little to help families and will lock-in austerity cuts for the long-term.

“Shortly before the Budget, we published research that helps shed light on the likely consequences of the Chancellor’s new ‘welfare cap’, which will set a ceiling on support for families, single parents, disabled people and carers. It will affect social security, benefits and tax credits for those groups and will mean that any future governments will play of these groups needs against each other in a zero-sum game. We believe it will tie the hands of future governments, making it almost impossible for them to take direct measures to reduce child poverty as part of their child poverty strategy.

“We have also highlighted in our press statement how the cumulative effect of all the Coalition’s budgets is largely regressive. The poorest are the worst affected, whilst many people in the wealthier half of the population have actually been made better off as a net effect of all measures due to the size of tax cuts they have received relative to the impact of cuts on them.”

Scottish Secretary Alistair Carmichael argued that the Budget emphasises that Scotland’s economy is successful and stronger as part of the UK.

The Secretary of State for Scotland said: “The Budget means the consequences of our referendum decision are becoming clearer. Do we want to gamble our place in a UK that is working well for Scotland in return for a go-it-alone option with no UK Pound and falling oil revenues?

“We can decide to remain part of a strong United Kingdom. Scotland would be staying part of a fast growing UK economy. We would be sticking with a UK that is creating more jobs, increasing spending in Scotland and keeping our UK Pound in our pocket. A Scotland where we share opportunities and risk with all other parts of the UK.

“Or we could choose to walk away from the UK. We could stop sharing with the rest of the UK and gamble on a Scotland that goes it alone. This would be a Scotland without the UK Pound. A Scotland with volatile and falling oil revenues, with higher costs and with our big companies looking to leave. We would be turning the rest of the UK into our biggest competitor. We would be turning to 28 different EU governments for negotiations on Scotland’s future. The consequences are clearer. The decision is ours.”

The Trades Union Congress say that the Budget is ‘ a short-term Budget to shrink the state and help the rich’.

TUC General Secretary Frances O’Grady said: “This was a pre-election Budget, with its give-aways aimed at the better off rather than lifting the living standards of the many. It will be paid for by further years of austerity, public services brought to near collapse, public sector pay cuts and a welfare cap that bites into the safety net that any of us might need.

“There was nothing for the young who continue to face the worst job market in decades and unaffordable housing.
“Nor was there any relief for low and middle earners who, after years of falling living standards, have no spare cash to take advantage of the help for savers, and who now face year on year cuts in benefits for working families as the welfare cap bites.

“The best news for the long-term health of the economy is the genuine help for manufacturing, but it was the exception in this highly political short-term Budget that continued the Chancellor’s project to shrink the state and help the rich.”

However employers’ organisation the CBI gave the Budget the ‘thumbs-up’. CBI’s Chief Policy Director Katja Hall said: “The Budget will put wind in the sails of business investment, especially for manufacturers. This was a make or break budget coming at a critical time in the recovery and the Chancellor has focussed his firepower on areas that have the potential to lock in growth.

“It’s encouraging to see higher than expected growth in the short-term, but as the Chancellor recognised, tough challenges remain ahead, so it’s right that the Budget reflected the fiscal reality. The economy needs to rebalance and this Budget will help businesses hungry to invest and export.”