Independence IFS and buts

Think Tank report warns of spending cuts and tax hikes 

An independent Scotland would have to cut spending or increase taxes for its finances to be sustainable in the long-term, a leading think tank has warned. The Institute for Fiscal Studies (IFS) said Scotland would face a ‘fiscal gap’ of 1.9% of national income, more than double that of the rest of the UK (0.8%).

The report says that significant spending cuts or tax increases would be necessary to balance the books.

Better Together campaigners say the report leaves the economic argument for independence ‘in tatters’ but Scottish Finance Secretary John Swinney believes the report actually underlines the case for an independent Scotland.

The 69 page ‘Fiscal sustainability of an independent Scotland’ (attached below) concludes:

‘An independent Scotland would have the freedom to make its own decisions about spending priorities and the appropriate design of the tax system, but it would be constrained by the necessity to deliver a significant cut in spending and/or increase in tax revenues in order to put its public finances in a sustainable long-term position’.

Speaking after the publication of the report earlier today, Alistair Darling, leader of the pro-Union Better Together campaign, said: “This sober and impartial analysis by the IFS leaves the SNP’s economic case for independence in tatters. SNP ministers pretend that in an independent Scotland there would be more money to spend, but that notion has been comprehensively demolished by the analysis from this respected institution. Today’s report is clear that an independent Scotland would need big cuts to things like pensions, benefits and the NHS or a big increase in tax.”

Not so, say supporters of independence. Commenting on the IFS report, Mr Swinney said: “This report actually underlines the case for an independent Scotland with full control of its own economy and the ability to take decisions that can secure a stronger and more prosperous future for the country.

“It is no surprise that projections based on the UK’s economic position show a long-term deficit when the OBR state that the UK’s economic strategy is “unsustainable” and that the UK will run a fiscal deficit in each of the next 50 years.

“The IFS themselves admit their projections in this report are ‘inherently uncertain and could evolve differently if Scotland were independent rather than part of the UK; in addition they could be substantially effected by the policies chosen by the government of an independent Scotland’.

“The whole point of independence is to equip Scotland with the competitive powers we need to make the most of our vast natural resources and human talent and to follow a better path from the current Westminster system which stifles growth and which is responsible for the damaging economic decisions which this report – and its projections – are based on.

“Scotland has strong financial and economic foundations, and even without a single penny from oil and gas, both output and tax revenues per head in Scotland are virtually the same as for the UK.

“Next year’s independence referendum will give people in Scotland a choice between staying with a broken Westminster system that has created one of the biggest gaps between rich and poor in the western world, which concentrates far too many jobs in London and the South-East of England, has accumulated vast amounts of debt and which neglects manufacturing and trade – or using the full tools of independence to rebalance the economy, improve equality and support public services.

“Between 1977 and 2007, smaller independent European countries similar to Scotland grew their economies faster than ours, and if we had matched those rates that greater output would now be the equivalent of around £4.5 billion.

“Tomorrow the Scottish Government will publish detailed analysis of the economic security, growth and job opportunities that come with the powers of independence and by taking Scotland’s future into Scotland’s hands.”

IFS report

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Referendum Bill is passed

The Bill to allow the people of Scotland to choose whether Scotland should be an independent country has been passed by Holyrood.  

MSPs voted in favour of the Scottish Independence Referendum Bill following a final debate on the legislation this afternoon.
The Bill confirms that:

  • The people of Scotland will vote in a referendum on September 18th next year on the question: “Should Scotland be an independent country?”
  • The vote will be run to the highest international standards and will be overseen by the independent Electoral Commission.
  • The vote will be preceded by a 16-week formal campaign period.
  • The referendum will be conducted under the direction of a Chief Counting Officer responsible for appointing local Counting Officers to run the poll in local areas.

 

Deputy First Minister Nicola Sturgeon said:

“This is a truly historic moment in Scotland’s national story. It means that in September next year the people of Scotland will be asked whether they want this country to be independent.

“This Government believes independence will benefit everyone in this nation, and that having decisions taken here by the people who live and work here will help us create a fairer and more prosperous society.

“Later this month, we will publish the White Paper on independence, outlining in great detail the benefits and opportunities of having decisions made here in Scotland, for Scotland.

“The Edinburgh Agreement confirmed that next September’s referendum should be legislated for by the Scottish Parliament and that it should be conducted so as to command the confidence of parliaments, governments and people.

“With today’s vote, Holyrood has fulfilled that objective. It is a strong message that, whatever our political differences, we have agreed the rules and the procedure to be followed in the referendum.  “I hope we can continue in this spirit as we make our case for either outcome by committing to engage in a constructive and respectful debate.

“People want to know what the gains of independence will be for their families and communities.  We already take decisions here on a wide range of devolved issues, and these have led to real gains for communities all across Scotland.  Independence is the next logical step in Scotland’s Home Rule journey, and the passing of this Bill will allow people to have that choice.

“Independence is not about this administration but about the right of the people of Scotland to choose a Government of our own.”

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Local MP backs Living Wage

This is Living Wage Week and Mark Lazarowicz MP has backed Labour’s plans to raise wages for thousands of low-paid workers in Edinburgh. 

If the party wins power at  the next General Election, Labour says it will introduce new tax breaks for employers that commit to paying the living wage – currently set at £7.65 in Scotland.  As well as making sure work really pays, it will also help cut benefit bills through savings in lower tax credits and benefit payments.

The North and Leith MP (pictured below) said: “In-work poverty has risen sharply so that many families that are being forced to turn to food banks or take out pay-day loans actually have a wage coming in. It is simply wrong that almost 60% of children in poverty in the UK come from households where at least one person is working.

“I know there are already councils like the City Council here in Edinburgh and private employers as well who are doing the right thing by their staff and paying the living wage. I strongly support Ed Miliband’s plans to encourage more employers to do the same so that hard-working staff are treated decently and paid a fair wage.”

As well as the City of Edinburgh Council, Fife, East Lothian, Falkirk and Scottish Borders Councils have also committed to paying the living wage.

Under Labour’s plans, firms that commit to paying their employees the living wage in the first year of the next Parliament will be offered a 12 month tax rebate of up to £1,000 for each individual worker that receives a pay rise. The money would be funded directly from increased income tax and National Insurance revenues.Mark Lazarowicz MP

Letter: public services paying the price

Dear Editor

Wage increases restricted to 1% maximum. Price increases averaging 3%, with gas, electricity and rail fares rising even more. This is not a one-off, it is a policy continuation over the last three years. Every working person is feeling the pinch, more so those on low incomes – in very many households the question of heating the home is decided by how much cold one can stand first.

Passing the cost of the colossal greed and mismanagement by the banks and financial institutions onto the people is bordering on criminal – especially as huge salaries and bonuses are still being paid to the people at the top, Their political supporters have been very busy making sure the people pay, but that is not enough for them.

They have also seized the chance to break up, privatise and destroy as many public services as possible – the very services, both local and national, that are needed more than ever. These services have been struggled for and paid for in taxation; they haven’t been given to us, this begs the question: how has the Tory/Lib government been able to do so much harm to so many?

First, any resistance had to be broken or diverted, pointing out people to blame, setting one section against another – those in work (‘hard workers’) against those out of work (‘layabouts’), people not on benefits against those on benefits (‘scroungers’), disabled people (‘shirkers’, or ‘work shy’). That so many people were taken in by these tales is a disaster, not only for the scapegoated but because every individual is under the same threat.

Emboldened by this success the Tory/Lib government felt confident enough to go even further and dictate how much space a hame needs (the ‘bedroom tax’) and in doing so giving the like-minded controllers licence to dictate, if on benefits, what people should or should not buy.

It is important every person listens very carefully to what is being told to them and why, and by defending others’ rights you defend your own. 

The famous speech by Pastor Neimoller is really worth recalling:

First they came for the communists

And I did not speak out because I was not a communist

Then they came for the socialists

and I did not speak out because I wasn’t a socialist

Then they came for the trade unionists

and I did not speak out because I wasn’t a trade unionist

Then they came for me

and there was no one left to speak for me.

Most people have one asset, the ability to work; when the opportunity to exercise this is denied it has disastrous consequences on individuals and families, made worse by destroying public services.

A. Delahoy

Silverknowes Gardens

Arise, Sir Baldrick!

images[3]At last, a ‘cunning plan’ has come together – and in British honours system hierarchy Baldrick now outranks his master Blackadder! Blackadder actor Tony Robinson has been knighted while his co-star Rowan Atkinson receives a CBE in the Queen’s Birthday Honours.

Among the other well-known names to receive honours are Adele, Rob Brydon, TUC General Secretary Brendan Barber, Clare Balding, golfer Paul Lawrie and former Lib Dem leader Sir Menzies Campbell, but the majority of recipients are unsung heroes – of the 1,180 people who appear on the Birthday Honours list, almost three-quarters are people who are actively engaged in charitable or voluntary work within their local communities.

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Broughton pupils on Question TIme

Two senior Broughton High School pupils are to appear on BBC’s Question Time tomorrow evening. Daniel McIvor and Tom Bagshaw were inspired by the recent ‘Question Time’ style event run by the school, are they were selected for the BBC programme for questions they submitted about the  Scottish independence referendum.

The show – which tomorrow comes from Edinburgh and features an audience of 16 and 17 year olds –  screens on BBC1 at 10.35 p.m.

BroughtonHS

Women city councillors unite to walk the Moonwalk

Lesley Hinds Ward 5 Inverleith Ward

This Saturday I will be participating in the MoonWalk. There is a cross party group of women Councillors walking as a team and we have created an online Fundraising Page for The MoonWalk Edinburgh Scotland 2013.

To show your support for this effort and raise funding for breast cancer in Scotland, please donate at

http://www.walkthewalkfundraising.org/strident

This Team Web Page will be active until 29 Oct 13.

Thank you for uniting against breast cancer

With good wishes and good health,

Lesley Hinds

RIOT! Radical roadshow arrives in North Edinburgh

The Radical Independence on Tour roadshow will be stopping off at North Edinburgh Arts Centre tonight at 7pm in the first of a series of ‘community assemblies’.

Speakers include Jean Urquahart MSP, John Finnie MSP, Green councillor Maggie Chapman and community activist Fraser Young.

All welcome.

 

 

Letter:Reality

Dear Editor
From and including the times of Thatcher there has  been a steady campaign to depict the ‘working class’, 90% of the population, as uneducated, fairly lazy  and undeserving. What is behind this campaign – such a sustained attack must have motives?
The 1other 10% of the population, the wealthy class, have always feared a united people striving for and getting major improvements to their lives and gaining control over decision-making; this, they had to stop. This unity had to be broken,
First they had to break any resistance by people’s organisations, launching a
vicious attack on the trade unions, following this  by wholesale closing of industries, from shipbuilding, ports, coal mines, printing, car & aircraft  production, steelworks etc, destroying scores of thousands of people’s  lives.
What better method could there be to break this unity, by pitting one against another in a scramble for a job while at the same time propagating the possibility of  individuals climbing up the ‘social ladder’ and becoming ‘middle class’!!
The 90%, if opportunities are available, have  differing levels of skill, giving differing levels in quality of life, but nevertheless are still of the working class in  which everyone depends on everyone else to maintain their quality of life. The 90%, have the values of decency and thoughtful  caring in wanting society to be organised and run for the benefit of all.
The same cannot be said of the remaining 10%, their  campaign of vilification of the working class goes on; the recent  past and present times are  witnesses of their intentions.
Tony Delahoy (by email)
thatcher

Sorry, folks: council set to pull the plug on Leith Waterworld

The city council looks set to accept a £1m bid to convert Leith Waterworld into a soft play area, only months after agreeing to work with local campaigners to reopen the leisure pool as a community enterprise.

The decision will be formally made at tomorrow’s full council meeting, but speaking earlier today Culture and Leisure convener Councillor Richard Lewis said the “difficult decision” to support a proposal by Glasgow-based A&G Property Group to create a soft play and leisure centre at Waterworld had been taken.

Leith Waterworld closed in January last year, but supporters have campaigned to have the popular facility reopened ever since. Campaign group Splashback have worked tirelessly to get the facility reopened as a community asset – and felt they might be on the verge of success when councillors voted to support a feasibility study earlier this year – council officers have even been working alongside the Splashback group to firm up proposals.

However campaigners were concerned when news of the A&G bid emerged last week and Councillor Lewis’ comments today has confirmed their worst fears.

Councillor Lewis said: “This has been a very difficult decision and one that this Council does not take lightly. Firstly I’d like to thank Splashback for the work and commitment they have demonstrated in progressing the community bid. However this coalition feels that the potential purchaser will create a high quality leisure facility that will greatly benefit the community in Leith and the wider Edinburgh area.

“In recognition of Splashback’s commitment to creating affordable and accessible swimming opportunities for young people in the community, we’re proposing to commit £125,000 towards free swimming for primary aged children in Edinburgh.

“Ultimately this option ensures that the community in Leith has an accessible leisure facility for many years to come, that swimming opportunities are available and also that the Council gets best value for the taxpayers of Edinburgh.”

In a statement on their Facebook page, Splashback campaigners told friends and supporters: “Outraged to report to all our wonderful supporters that Coalition Motion for tomorrow’s Full Council meeting is to pull the plug on Waterworld and accept the other bid. We have, however, been working frantically behind the scenes in the last 24 hours to salvage SOMETHING for the city’s families.

“Consequently, the motion includes a commitment to ring-fence the £125,000 they promised us in the first year for a Council-led ‘programme of free swimming opportunities for primary aged children in Edinburgh, and other free swimming initiatives; and that the impact of these programmes will be monitored and assessed.’ SORRY FOLKS, that’s the best we could do …”

Commenting on the council’s decision to sell Leith Waterworld, Lothian Green MSP Alison Johnstone said: “This decision sends the worst possible message to communities trying to come together to protect services and improve facilities in their area. Despite all the warm words we hear on community empowerment and people power, when a developer comes along with a wad of cash, community efforts seem to count for little.”

She went on: “Families in Leith and right across the city made it very clear that they valued Waterworld as a unique leisure pool, and just five months after giving everyone hope that it would reopen, the Council have pulled the plug and campaigners will be feeling totally gutted.”

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