Politics – Page 265 – The NEN – North Edinburgh News

Cross-border skirmish marks St George’s Day

What’s Scottish independence got to do with the English, anyway? Well, quite a lot according to Prime Minister David Cameron. Mr Cameron chose St George’s Day to launch a passionate defence of the union, but in the evening Scottish First Minister Alex Salmond launched a cross-border raid to assure our neighbours that social and business links will remain as strong as ever …

David Cameron relected on England’s role in the United Kingdom in his St George’s Day message. The Prime Minister said: “I want to send my best wishes to everyone celebrating St George’s Day. Up and down the country – including here in Downing Street – the flag of St George is flying high and celebrations – from the archaic to the eccentric – are taking place:

“In Plymouth – a patriotic festival; in London – a great feast in Trafalgar Square; in Leicester – a medieval re-enactment; and in Worcestershire – an annual ‘asparagus run’, to welcome the new harvest.

“St George has been England’s patron saint since 1350. But for too long, his feast day – England’s national day – has been overlooked. Today, though, more and more people are coming together on or around April the 23rd, eager to celebrate everything it is to be English. And there is much to celebrate. Because this is a country whose achievements in industry, in technology, sport, music, literature and the arts – they far outweigh our size.

Our counties and cities are known the world over:

In America, where Newcastle Brown Ale is the most imported ale; in China, where the most popular international football team is from London: Arsenal; in Australia, where they go mad for a Cornish cuisine – the humble pasty; in South Korea, where Yorkshire-set Downton Abbey is a TV favourite. And across the globe, where the best-selling band is from Liverpool: the Beatles.

“This St George’s Day, I want us to reflect on one of England’s greatest achievements: its role in the world’s greatest family of nations – the United Kingdom. In just 5 months, the people of Scotland will go to the polls and decide whether they want to remain a part of this global success story. So let’s prove that we can be proud of our individual nations and be committed to our union of nations. Because no matter how great we are alone, we will always be greater together.

So once again, to everyone across England, I’d like to wish you a very happy St George’s Day.”

Alex Salmond did not miss an opportunity to reaffirm Scotland’s commitment to our friends across the border. The First Minister said that Scotland will not wait until independence day to strengthen Scotland’s relationship with the north of England and celebrate ‘the ties that bind the nations of these islands’ following September’s independence referendum.

In a St George’s Day speech delivered in the shadow of Carlisle Cathedral, Mr Salmond told the invited audience of business people that a successful Scotland will become a new beacon of growth to the north, shifting the centre of economic gravity of these islands and preventing the flow of power, wealth and talent flow downhill to the south east.

He said independence for Scotland would cause an economic rebalancing of Britain and the Scottish Government would refuse to wait 30 years for high speed rail to be delivered by Westminster and instead will commission a feasibility study on work on HSR beginning from the north heading south. The Scottish Government will also push forward its responsibility to make improvement to the West Coast rail line north and improve the transport connectivity between Carlisle and the south west of Scotland, creating a ‘a conurbation of connectivity’.

Announcing the study, the First Minister said: “The vision – of these border lands as hubs – requires the transport connectivity to link Scotland and the north of England more effectively together.

“The UK’s current plans for high speed rail lack high ambition – for Scotland and for the north of England. They also lack speed – they may not reach Manchester and Leeds, let alone Carlisle, until 2032. Indeed even Sir David Higgins, who is in charge of delivering the project, has expressed concern about that current timescale.

“But since 2007, rail travel has increased by 144% between London and Glasgow; by 191% between Manchester and Scotland; and by 261% between Birmingham and Scotland. Demand for freight is also increasing, but line capacity is constrained.”

The First Minister continued:

“But by the time high speed rail first came to the UK, when the Eurostar link was completed, the regions weren’t served at all. There was no further development of services beyond London. In fact, a report by the House of Commons Transport Select Committee pointed out that “The acquiescence of Members of Parliament to the Channel Tunnel Act 1987 depended on the provision of regional services.” Its view was that “The regions have been cheated.”

“And we have seen in the last ten years that the major upgrade to the West coast Main Line focused on Southern parts of the line. We then missed the opportunity for faster services to the north because the UK Government’s procurement process for the InterCity West Coast franchise collapsed. That piece of incompetence which cost taxpayers £50m. At the moment, we may have to wait for refranchising in 2017 to see a significant improvement.

“To summarise, under Westminster control, high speed rail won’t come to Carlisle for decades. The west coast line doesn’t get upgraded, and the franchise process collapses. The east coast line has seen consistent failures of operators – and when they do have a public operator which works, their answer is to change the franchise!

“By comparison, I am pleased to report that our two rail franchise procurements are proceeding well and on schedule. And we’re keen to get on with making major improvements to connectivity.

“We are already working with the UK Government to prepare joint plans for high speed rail links between England and Scotland. Initial findings from this review are due in the summer. And we are taking the initiative within Scotland – detailed planning is being undertaken for a high speed service between Edinburgh and Glasgow, which could link to high speed lines from England. The business case for that Edinburgh to Glasgow link will be sent to Scottish Ministers in a few weeks.

“An independent Scotland could do more. Rather than paying our share of the borrowing costs for high speed rail, as we wait decades for it to spread up from the south, we can use that money to build high speed rail from the north instead.

“It’s time to take positive action. I can confirm today that the Scottish Government will build on the joint work we are undertaking with the UK Government. We will establish a feasibility study to explore in detail the options for building high speed rail from Scotland to England. In doing so, we will work closely with partners across the UK, especially in the north of England. Of course we can’t determine the route, until we undertake the feasibility study. But it is a statement of intent.

“I want to draw a brief comparison. In the north of Scotland, we are investing to reduce the time it takes to travel between Aberdeen and Inverness. We’re doing that because we want to create a conurbation of connectivity across that part of Scotland. In a similar way, we can develop a conurbation of connectivity between Carlisle and the south west of Scotland.

“That way, a prosperous Carlisle and Cumbria will benefit south west Scotland, just as a prosperous Scotland will benefit the north of England.

“These rail projects could have the potential to bring huge benefits for all of us. But they require an initiative and impetus which is more likely to come from a Scottish Government whose main population centres are within 100 miles of here, than from a Westminster Government based 300 miles away.”

The First Minister’s commitment to closer cooperation between an independent Scotland and the border lands of England will also be recognised through a forum to forge strong economic links for those both north and south of the Border with a dedicated lead minister post-independence.

During the speech, the First Minister told a gathering of business people that a railway line from London to Manchester and Leeds would bring £3 billion benefit to Scotland – but a full High Speed Rail connection would bring £24 billion and lead a major shift from air to rail.

Concluding, the First Minister said:

“I look forward to a future of close collaboration between an independent Scotland and the north of England – in a partnership which will be good for Scotland, good for the north of England, and good for all of the nations of these islands. Happy St George’s Day. ”

Happy birthday, Bedroom Tax?

North & Leith MP joins anti-bedroom tax protest

On the first anniversary of the introduction of the so-called ‘Bedroom Tax’, Mark Lazarowicz MP has reiterated the pledge that a future Labour government will scrap the legislation altogether. The Welfare Reform Act, to give it it’s proper name, has hit over 4,600 people in Edinburgh and over 71,000 people across Scotland.

Mr Lazarowicz spoke at a protest organised by Unite trade union outside Westminster to mark the anniversary earlier today.

The Scottish Labour and the SNP Scottish Government reached agreement in February over funding to protect tenants in the social rented sector in Scotland from eviction as a result of the Bedroom Tax alone but that is only an interim solution as the extra funding has to come from elsewhere in the overall budget.

Mark Lazarowicz MP said: “Getting on for 5,000 people in Edinburgh have been hit by this cruel and costly tax with arrears totalling £5 million according to the Scottish Housing Regulator.

“Those affected are often amongst the most vulnerable people in society: Citizens Advice Scotland found that two-thirds of people coming to them for help because of the Bedroom Tax were disabled and another one in ten cared for a disabled person.

“Scottish Labour took the lead in campaigning for the Scottish Government to provide additional funding, and I am glad that the SNP government eventually agreed to do so. It should have done so earlier, but I nevertheless welcome the fact that it did so. The long-term answer, however, is to axe the Bedroom Tax, and Labour is fully committed to do that.

“The Government said the Bedroom Tax would save money but the housing benefit bill continues to rise. It won’t listen to reason, Labour is clear: we will scrap the Bedroom Tax.”

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.