Budget is ‘last chance to change flawed economic policy’

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Today’s UK Budget provides the last opportunity for the Chancellor to scrap his failed austerity measures Deputy First Minister John Swinney said today. He said the final budget ahead of the General Election should be focused on delivering economic growth by tackling inequality.

In his final call to the Chancellor ahead of the Budget the Deputy First Minister urged him to scrap his failed economic policy. In the June 2010 Budget, the Chancellor stated that the UK Government was ‘on track to have debt falling and a balanced structural current budget by the end of this Parliament’. He has failed on both measures. Rather than debt falling as a share of GDP in 2014-15, it is now forecast to continue rising. Likewise, instead of running a structural current budget surplus in 2014-15, the UK Government is now forecast to run a structural current deficit of almost £50 billion (2.7% of GDP).

Speaking ahead of the UK Budget John Swinney said: “The current UK Government’s economic policy is fundamentally flawed and is damaging Scotland’s recovery. Despite the deep spending cuts we have seen, the Chancellor has not achieved the deficit reduction targets he set himself in his first budget in 2010.

“Between 2009/10 – 2014/15, Scotland’s budget has fallen by around 11% in real terms, within this capital expenditure has fallen by around 34%. This means our budget has been cut by a staggering £3.5 billion in real terms since 2009/10.

“And it doesn’t stop there. Scotland’s cumulative share of the cuts to day-to-day public spending over the 5 years to 2019-20 is forecast to be worth around £14.5 billion compared to 2014/15 levels.

“There is an alternative. George Osborne can use today’s budget to stop these deep cuts and grow our economy instead.

“The Scottish Government is doing all it can, within its limited powers, to support Scottish finances. The latest Scottish GDP figures show the economy grew by 3.0 per cent over the year to Q3 2014 – the fastest annual rate of growth in seven years – while the number of people in employment has risen by 180,000 since its post-crisis low in Spring 2010 and is now at a record high of over 2.6 million.

“However, successive UK budgets and Autumn Statements have undermined the Scottish Government’s ability to support economic revival, particularly through the significant cuts the Chancellor has made to capital investment over the spending review period and, in some cases, the in-year reductions he has made to the Scottish Government’s published spending plans.

“In addition to our proposals on austerity, the Budget must also deliver a permanent shift to a more competitive and predictable north sea oil tax regime, which will allow investors to shift their focus away from fiscal risk and towards the significant investment opportunities that remain in the North Sea.

“The Scottish Government has set out three key priorities for fiscal reform at this Budget:

  • an immediate reversal of the 2011 increase in the Supplementary Charge;
  • an investment allowance to provide a simple, stable and more competitive fiscal regime; and
  • an exploration tax credit to help increase exploration and sustain future production.

“I hope that the Chancellor will have listened to reasoned proposals ahead of delivering his budget and that economic growth and tackling inequality will be given equal representation in this final budget before the General Election.”

The Chancellor will deliver his budget speech at 12:30.

Fan ownership: it’s a goal …

Parliament to debate fan ownership as support grows

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Lazarowicz: time for tough action on tax dodgers

‘Paying tax is a basic duty of every citizen to fund the services, the hospitals, schools, we all depend on: tax cheats must not be allowed to escape paying their fair share.’ – Mark Lazarowicz MP

Tax dodging 2 - 17 March 2015

Speaking the day before the Chancellor delivers the Budget Mark Lazarowicz MP has called for tough action against tax dodging and declared his strong support for Oxfam’s campaign for a new Tax Dodging Bill.

The North and Leith MP attacked the Government for failing to take responsibility to tackle the systematic abuse now revealed at HSBC in Switzerland with clients being helped to conceal so-called “black accounts” from tax authorities and collusion with corruption.

Mark Lazarowicz said: “I am calling for tough action and new legislation to tackle tax dodging by individuals or corporations: it can’t just be shrugged off as something everyone does – they don’t, millions of people work hard every day and still pay their fair share.

“The Government has refused to take responsibility for tackling systematic tax fraud of the kind recently revealed at HSBC: simply passing the buck to Revenue and Customs won’t do.

Tax avoidance by corporations in the world’s poorest countries is shamefully depriving them of vital revenue.

“Here in the UK we will not rebuild trust in politics if tax dodging by the megarich is left unpunished whilst severe benefit sanctions are imposed for often trivial reasons forcing increasing numbers to turn to food banks.

“Paying tax is a basic duty of every citizen to fund the services, the hospitals, schools, we all depend on: tax cheats must not be allowed to escape paying their fair share.”

Mark Lazarowicz spoke in a major debate on tax dodging last month and you can find his speech here. He is pictured at an event outside Parliament today supporting Oxfam’s campaign for an anti—tax dodging Bill. You can find more details of Oxfam’s campaign here.

 

Minimum wage to rise to £6.70

A pay packet

The government has announced that the National Minimum Wage will increase by 3% to a new rate of £6.70 per hour, effective from October – the largest real-terms increase in the National Minimum Wage since 2008. Over 1.4 million of Britain’s lowest-paid workers are set to benefit but critics say the increase doesn’t go far enough.

The Prime Minister and the Deputy Prime Minister have also announced that the National Minimum Wage for apprentices will increase by 57p an hour to £3.30. This is the largest ever increase in the National Minimum Wage for apprentices and will halve the gap with the National Minimum Wage rate for 16 to 17 year olds, which will be £3.87 an hour from October 2015. The government will also launch a consultation with businesses on the future of the National Minimum Wage rate for apprentices.

The government is also putting employers in control of the funding for apprenticeships by introducing a new digital apprenticeship voucher.

Apprenticeship vouchers will further simplify things for employers and give them the purchasing power over the government contribution to apprenticeship funding. The employer would register their details on a system being developed by the Skills Funding Agency including their type of business, the details of the apprentice and the apprenticeship standard being signed up to.

The discounted rate, which could be up to 100% for 16 to 18 year olds, at which employers can purchase training would be calculated and the employer would be able to pass on the voucher code to the provider that is delivering the training for their apprentice. The provider would then reclaim the value of the voucher from the Skills Funding Agency.

Prime Minister David Cameron said: “At the heart of our long-term economic plan for Britain is a simple idea – that those who put in, should get out; that hard work is really rewarded; that the benefits of recovery are truly national.

“That’s what today’s announcement is all about – saying to hardworking taxpayers: this is a government that is on your side. It will mean more financial security for Britain’s families; and a better future for our country.”

Deputy Prime Minister Nick Clegg said: This is just one of the many ways in which we’ve created a fairer society whilst building a stronger economy. If you work hard, this government is behind you all the way. Whether you’re on low pay or starting your dream career through an apprenticeship, you will get more support to help you go further and faster.”

However some feel the help to Britain’s lowest paid doesn’t go far enough.

TUC General Secretary Frances O’Grady said minimum wage workers will be hit by the Chancellor’s cuts. “For the low paid to get a fair share of the recovery, this was a year in which we could have had a much bolder increase in the minimum wage,” he said.

“With one in five workers getting less than a living wage, this is nowhere near enough to end in-work poverty. Britain’s minimum wage workers should be very fearful of the billions of pounds of cuts to government help for the low paid that the Chancellor is planning if re-elected.

“Apprentices will welcome the increase to their minimum wage, which will reduce the shortfall in their minimum pay relative to 16 and 17 year-old employees. But there really shouldn’t be a gap at all. The TUC will continue to call on the Low Pay Commission to recommend a future increase that will match the apprentice rate to that for 16 and 17 year-olds.”

Labour’s shadow business secretary Chuka Umunna said: “This 20p rise falls far short of the £7 minimum wage which George Osborne promised over a year ago. Ministers have misled working families who have been left worse off. Under David Cameron we’ve seen the value of the minimum wage eroded – we need a recovery for working people.”

Labour has promised the minimum wage would rise rise to £8 an hour over the course of the next parliament if it wins in May.

This latest announcement – coming on the back of positive news about pension annuities yesterday and before a likely rise in personal tax allowances is announced tomorrow – makes one thing pretty clear: the economy will be the government’s chosen battleground in May’s general election.

The Chancellor’s statement this week may not quite be a giveaway budget – but it certainly won’t be a takeaway one either. And if the economy really is the number one priority when voters go to the polls in May, the government is giving itself a fighting chance of re-election. ‘Not a political budget?’ – we’ll see!

The National Minimum Wage rates from 1 October 2015, as recommended by the Low Pay Commission. (LPC) will be:

  • a 20p (3%) increase in the adult rate (from £6.50 to £6.70 per hour)
  • a 17p (3%) increase in the rate for 18 to 20 year olds (from £5.13 to £5.30 per hour)
  • an 8p (2%) increase in the rate for 16 to 17 year olds (from £3.79 to £3.87 per hour)
  • The National Minimum Wage rate for apprentices will increase by 57p (20%) from £2.73 to £3.30 per hour. The LPC recommended an increase of 2.6% to £2.80 in the apprentice rate.

 

Scotland will eventually leave UK, research suggests

Political engagement is highest in Scotland – but few people believe they can make a difference

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Most people in the UK now believe Scotland will become an independent country and eventually leave the UK, according to new research from the University of Edinburgh.

The findings are taken from a survey of more than 7000 voters across Scotland, England, Wales and Northern Ireland which asked people about a range of constitutional issues.

The majority of people surveyed across the four nations believe that Scotland will eventually leave the UK – 69 per cent in Scotland; 59 per cent in England; 54 per cent in Wales; and 59 per cent in Northern Ireland.

The survey found that 15 per cent of Scots think the country will become independent within five years and 32 per cent believe it will happen within ten. Overall, more than two-thirds of Scots believe the country will eventually vote for independence.

Deputy First Minister John Swinney said: “The Scottish Government continues to believe independence is the best option for Scotland, and the survey finds most Scots think this is where the constitutional journey will take us.

“We also believe strongly that Scotland being taken out of the EU in a referendum in circumstances, where a majority of Scots had voted to stay in, would be massively damaging economically and have major constitutional implications.

“The referendum on independence was a wonderful experience of democratic engagement, bringing people into politics who in some cases had not been involved in decades, if at all.

“I therefore welcome the findings that political engagement in Scotland is higher than in the rest of the UK, particularly among young people and that there remains a strong appetite for debate over the constitution. Scots are significantly more likely to say that they will vote in the 2015 Westminster election.”

Despite the views on constitutional issues, those surveyed do not believe ‘ordinary people’ have a big influence on how the UK is run – politicians, political parties, businesses, trade unions and local councils are seen to hold greater influence on the running of the country.

Dr Jan Eichhorn, of the University of Edinburgh’s School of Social and Political Science, said: “People across the UK show an appetite for discussions about how the country should be governed. However, it is worrying to see how little people think they can actually make a difference.”

Dr Daniel Kenealy said: “Despite Nicola Sturgeon’s call for an EU referendum veto by the four nations of the UK, and First Minister of Wales Carwyn Jones’s support for the idea, it remains unpopular with people across the UK.”

A Labour spokesman said: “This poll shows that people are frustrated with the way that politics works, and they want to have a bigger say in how our country is run. Making our country work for working people is the best way to bring all parts of it together again.

“That is why Labour has committed to a constitutional convention, made up of people from all parts of the country and all walks of life, to change the way our country works.”

A spokesman for the Scottish Conservatives said fears about the end of the Union were being heightened by the prospect of a pact at Westminster between Labour and the SNP in the event of a hung parliament.

The spokesman said: “With Labour flirting with the SNP in the hope it gets them into government, and the Lib Dems dead in the water it’s no surprise people fear the constitutional question isn’t yet over.”

Ten thousand and rising …

STV GREENS SNUB: Legal challenge not ruled out

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More than ten thousand people have signed the petition calling for Scottish Green Party inclusion in STV’s leaders debate. Leaders of Scotland’s other four major parties have also announced their support for the Greens inclusion.

Launched at 11am on Thursday, after STV announced their plans to hold a debate with four of Scotland’s five parties, the petition has received support across Scotland, peaking at forty signatures a minute and reaching ten thousand signatures at 13.53 on Saturday.

Commenting on the public and political support, Patrick Harvie MSP said: “This groundswell of support across Scotland shows that there is a clear demand for the Greens to be included in the debate. These past two years have seen high-quality, enjoyable televised debates, with STV often hosting the best of them and with the Greens regularly given a platform. The public clearly expect this diversity of vision to continue being on offer, if only for them as voters to give us the scrutiny we all deserve.

“We are also grateful for the messages of support from the leaders of Scotland’s four other major parties. Their statements add considerable weight to the call by over ten thousand members of the public for STV to reconsider and extend an invitation to the Greens. Taking legal action is not our preferred option but it is one we will have to keep open unless the broadcaster reconsiders their position.”

Lazarowicz: ‘Government must listen to people’s call for action’

North & Leith MP supports Earth Hour

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Mark Lazarowicz, MP for Edinburgh North and Leith, has signed up to support this year’s WWF Earth Hour when millions of people around the world come together to switch off their lights for one hour in a symbolic act of support for action to tackle climate change. 

Earth Hour takes place on Saturday 28 March from 8:30 – 9.30pm. You can find more information at www.earthhour.wwf.org.uk/

As part of this year’s Earth Hour, the North & Leith MP pledged to back protection of the world’s forests at a WWF reception in Parliament this week through support for a responsible trade in sustainably-sourced forest products. 

Mark Lazarowicz said: “Earth Hour is a clear demonstration of people’s concern around the world about climate change and I am really pleased to see that Edinburgh will be taking part again with the lights at Edinburgh Castle, the Scottish Parliament, the Scott Monument, and Forth Rail Bridge all going out.

“Economic growth can make a real difference to the lives of people around the world but it must be sustainable: that’s why I want to see action on deforestation with businesses and governments making a commitment to responsible trade in wood and paper.

“The world has lost nearly half its forests, and already global demand for wood for timber, paper and fuel is set to triple by 2050.

“The UK is the fifth-largest importer of timber and wood-based products in the world so what we do makes a difference and Government must listen to people’s call for action at Earth Hour.”

Mark Lazarowicz is a member of the House of Commons Environmental Audit Committee (EAC) which produced a report in December on agreeing ambitious goals for sustainable development which you can find here. The EAC also produced a report on climate change adaptation which you can find here.

 

 

Keir: control of APD ‘a gamechanger’ for Scotland

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Edinburgh Western MSP Colin Keir has welcomed comments by a senior airlines executive that Air Passenger Duty (APD) is having an adverse effect on trade.

Following comments by David Thomas, a regional director of American Airlines, that Air Passenger Duty is ‘stifling demand’ on flights between Scotland and the United States, Colin Keir, Edinburgh Airport’s MSP, said: “Mr Thomas’s comments are most welcome and further validate our position that the Scottish Government must have control over Air Passenger Duty.

“As Edinburgh Airport’s recent report showed, reducing APD in Scotland by 50% will initially support 800 new jobs and create millions for the economy, is most welcome and must be taken seriously by the UK Government.

“The tourism tax, that is particularly damaging to Scottish airports, should be cut at once. Devolution of APD would be a game changer for Scottish airports.

“The Scottish Government has committed to cutting Air Passenger Duty once it is devolved and that responsibility cannot come soon enough for passengers and Scotland’s airports. Only a strong team of SNP MPs elected on May 7 will ensure Scotland gains the powers it has been promised – including APD – to create jobs and build a more prosperous and fairer country.”

Council leader hails taxi accessibility talks

Access Action Plan is on it’s way

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Council Leader Andrew Burns and Convener of the Regulatory Committee, Cllr Gavin Barrie met with charity campaigner Gordon Aikman yesterday to discuss concerns about taxi accessibility in Edinburgh.

Recently Mr Aikman, who has motor neurone disease, struggled to find a taxi that was able accommodate his wheelchair. He was due to introduce Ed Miliband at the Labour Party Conference in the capital but missed the opportunity after two taxis he called were unable to pick him up – one because the electric ramp was not working and the other because he ‘took too long to come down’.

Cllr Burns said: “What happed to Gordon is of course completely unacceptable and the purpose of today’s meeting was to discuss what we can do to make sure this doesn’t happen again. We have identified steps that we can take as the licensing authority for taxis in the city, to ensure that these vehicles are accessible to wheelchair users.

“For example, we will be cracking down on drivers who fail to stop for disabled customers and increasing the number of spot checks to check that the taxis’ ramps are operational. We will also be calling for taxi companies to review their allocated waiting time for collections with a view to extending this for people with mobility issues.

“We want to make sure that wheelchair users in Edinburgh have a positive experience when using taxis and I would like to thank Gordon for highlighting this very important issue.”

Other actions agreed include a review of the current driver training arrangements to improve accessibility training and looking at introducing refresher courses. Taxi drivers who are exempt from manually loading wheelchairs for health reasons may also be asked to display a prominent sign on their vehicle indicating that they are not accessible.

The agreed measures will now be taken forward by the Council, led by Councillor Gavin Barrie as Convener of the Regulatory Committee.

Welcoming the outcome of yesterday’s meeting, Gordon Aikman said: “This crackdown is very welcome. Wheelchair or not, each and every one of us should be able to get into a cab and get from A to B without any hassle. I’ve only been in a wheelchair for a couple of weeks, but have been shocked by the treatment disabled folk have to put up with.

“I’m confident this Access Action Plan will help make taxis in our capital more accessible. I hope other councils follow Edinburgh’s lead. This is not about special treatment – it is about equal access. No disabled person should have to put up with second rate service.”

Smith Agreement: call for halt to Work Programme extension

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

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

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

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

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

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

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