The UK has ‘mobilised’ over 40 countries and organisations to launch an unprecedented global fight against ruthless people smuggling gangs
The UK is spearheading the toughest ever international crackdown on organised immigration crime as the Prime Minister and Home Secretary host a landmark summit today (31 March).
The Organised Immigration Crime (OIC) Summit brings together over 40 countries, including the United States, Vietnam, Iraq, and France, to unite behind a new approach to dismantle people smuggling gangs and deliver on working people’s priorities for secure borders.
This is the first time the full range of factors driving illegal migration, from the supply chain in small boats to anti-trafficking measures, illicit finance and social media advertising, have been explored at a global summit of this scale.
The summit will also see representatives from Meta, X and TikTok discuss how to jointly tackle the online promotion of irregular migration.
Through the summit, the government will use all available levers at its disposal to push forward progress in bringing gangs to justice, tackle the global threat of organised immigration crime and protect vulnerable people from exploitation.
To back this drive, the Home Secretary has today announced £30 million of funding going directly to high impact operations from the Border Security Command to tackle supply chains, illicit finances and trafficking routes across Europe, the Western Balkans, Asia, and Africa.
An additional £3 million will enable the Crown Prosecution Service (CPS) to increase its capacity to prosecute organised international smugglers and expand its international footprint to support the Border Security Command to pursue, disrupt and arrest those responsible for dangerous people smuggling operations.
This reflects the Prime Minister’s long-held view, informed by his work as Chief Prosecutor, that cross border cooperation is the foundation of tackling international gangs and securing Britain’s borders.
In remarks delivered later today, the Prime Minister, Sir Keir Starmer, is expected to say: “This vile trade exploits the cracks between our institutions, pits nations against one another and profits from our inability at the political level to come together.
“When I was the Director of Public Prosecutions, we worked across borders throughout Europe and beyond to foil numerous plots, saving thousands of lives in the process. We prevented planes from being blown up over the Atlantic and brought the perpetrators to justice.
“I believe we should treat organised immigration crime in the same way.
“I simply do not believe organised immigration crime cannot be tackled. We’ve got to combine our resources, share intelligence and tactics, and tackle the problem upstream at every step of the people smuggling routes.”
The summit will deliver concrete outcomes across Europe, Asia, Middle East, Africa, and North America by strengthening international partnerships, enhancing intelligence sharing, and implementing targeted disruptions to Organised Immigration Crime networks.
As a direct result, we will be able to strengthen UK borders and security and create a more efficient and manageable asylum system, taking the burden away from housing, the NHS and schools, and giving hotels back to the local economy.
Speaking ahead of the summit, Home Secretary Yvette Cooper said: “Smuggler and trafficking gangs make their money crossing borders so law enforcement needs to work together across borders to bring them down. Only a coordinated international response, across the whole irregular migration route, can effectively dismantle these networks.
“The Organised Immigration Crime Summit is the first of its kind and will reinforce the UK’s position as a leader by securing international commitments to disrupt Organised Immigration Crime at every stage of the business model.
“The summit demonstrates mine and the Prime Minister’s absolute dedication to disrupting the callous Organised Criminal Gangs, strengthening our borders and ultimately save countless lives.”
The UK’s global leadership on this is issue is already delivering results. France has agreed to launch a unit of specialist officers who are mobile, highly trained and equipped to respond dynamically to prevent small boat launches.
Germany has committed to strengthen their laws against those who facilitate smuggling to the UK and a new UK-Italy taskforce is hitting people smugglers’ financial flows. After boosting the resources for the National Crime Agency to work with international law enforcement partners, they have seized 600 boats and engines since July.
Along with this, work continues at home through giving law enforcement tougher powers than ever to smash the smuggling gangs, ‘ramping up’ removals to record levels and surging illegal working raids to end the false promise of jobs used by gangs to sell spaces on boats.
This comprehensive approach is a vital aspect of the government’s Plan for Change, with the threat from organised immigration crime increasing in scale and complexity.
Organised immigration crime spans multiple countries, nationalities, and criminal methodologies, with recent estimate of the total global income from migrant smuggling reaching $10 billion last year.
Criminal gangs headed by hundreds of kingpins are using sophisticated online tactics, the abuse of legitimate goods and services, and illicit financial networks to facilitate dangerous and illegal journeys which undermine border security and put thousands of lives at risk each year.
The summit will also examine the work of the government’s Joint Maritime Security Centre (JMSC) in supporting the US, by providing innovative space-based maritime surveillance capability to monitor and dismantle any vessels along Haiti’s north coast suspected to be involved in illegal immigration, illegal fishing activities and drug smuggling.
The JMSC is harnessing cutting edge technology and capabilities to provide 24 hour monitoring of UK waters and ensure our borders are secure, by using satellite to provide a better overall understanding of incoming threats to the Turks and Caicos Islands. The UK government is working with our partners in Turks and Caicos to support and protect the Island from irregular migration.
This collaboration demonstrates the UK government’s commitment to deploying advanced capabilities against illegal migration while protecting overseas territories.
There has also been a series of major arrests of smuggling kingpins, including:
arrests linked to a major Syrian organised crime group responsible for smuggling at least 750 migrants into the UK and Europe
the arrest of a Turkish national suspected of being a huge supplier of small boats
the conviction of 2 men in Wales who ran a smuggling ring moving thousands of migrants across Europe
the arrests in February of 6 men wanted in Belgium over their suspected involvement in a major people smuggling ring
These arrests come alongside the NCA working with the authorities in the Kurdistan Region of Iraq for the first time, to facilitate the arrests of 3 men linked to a Kurdish people smuggling organised crime group, as well as an increase in the takedown of social media accounts linked to people smugglers.
Foysol Choudhury, MSP for the Lothian Region, spoke in yesterday’s Scottish Government Debate on Scotland—A Fair Trade Nation, raising urgent concerns over sustainability and ethical supply chains.
Foysol Choudhury, MSP, spoke to Scotland’s continued recognition as a Fair Trade Nation, highlighting its commitment to fairness, trade justice, and global cooperation.
His speech recognised local businesses and organisations, including One World Shop, Hadeel, and the University of Edinburgh, who are embracing fair-trade principles, pointing to Scotland’s role in supporting marginalised communities worldwide while fostering sustainable and ethical practices locally.
However, Foysol Choudhury MSP emphasised the importance of popular retailers, like Primark, in moving to adopt fair-trade practices to ensure fair wages are met and to ensure ethical practices in merchandise production.
By encouraging businesses to adopt fair-trade practices, Scotland can set a powerful example of how ethical commerce can combat exploitation in merchandise production, both at home and abroad.
Through initiatives like Edinburgh’s Fair Trade City status and support for international producers, Scotland demonstrates the impact of prioritising sustainable supply chains and fair wages on a global scale.
Following the debate, Choudhury emphasised that while parts of the world may be casting their gaze inward when it comes to trade, Scotland can continue looking outward, ensuring sustainability and ethical practices remain at the forefront of Scottish development in the global realm.
Speaking in the chamber, Foysol Choudhury MSP stated:“Producers in the Global South can be considered to have done the least to cause the climate crisis but face the greatest losses as climates change.
“For a multinational corporation, a changing climate may mean a loss on the balance sheet, but for a small-scale farmer, it means losing their livelihood. With Fair Trade, producers are better able to adapt and protect their livelihoods and communities.”
“We must keep working to maximise the benefits of being a Fair-Trade nation.”
“We should also be looking to further encourage businesses across all sectors to adopt fair trade practices and supporting them in building sustainable, ethical supply chains.”
Family members involved in deaths in custody Fatal Accident Inquiries (FAI) are to have immediate, free access to legal aid support and advice.
Justice Secretary Angela Constance confirmed that she is using existing Ministerial powers to remove means-testing for legal aid in such cases, so that from 7 April families will not have to provide information on their income.
Ms Constance announced the move as she updated the Scottish Parliament on a range of actions to address systemic failures identified by Sheriff Collins in his FAI determination relating to the deaths of Katie Allan and William Lindsay (also known as William Brown) at HM Prison & Young Offenders Institution Polmont.
This followed the Justice Secretary’s previous statement to Parliament on the issue in January this year.
All of the Sheriff’s 25 recommendations have been accepted and work on these will be delivered at pace and progress will be closely monitored.
Ms Constance outlined the measures being implemented, which include:
• The Scottish Prison Service (SPS) has initiated a dedicated operational taskforce, chaired by the SPS Chief Executive, and involving NHS partners, to ensure all of the recommendations are actioned.
• His Majesty’s Chief Inspector of Prisons for Scotland will provide the Justice Secretary with an initial report by the summer on how the implementation of Sheriff Collins’ FAI recommendations will be independently reviewed.
• The Scottish Prison Service is overhauling its Suicide Prevention Strategy ‘Talk to Me’ across the prison estate. The strategy will be published at the end of this year, with a full training package to be rolled out in 2026.
• In consultation with the Lord Advocate, an independent review of the FAI system has been commissioned to focus on improving the efficiency, effectiveness, and trauma-informed nature of investigations into deaths in prison custody. The appointment of a Chair is expected to be announced shortly.
Ms Constance said: “I was grateful to have had the opportunity to again meet with the families of William Lindsay and Katie Allan today and extend my deepest condolences to them, as I do to all those affected by a death in custody.
“It is through ongoing and decisive action that we will create the lasting change they rightly demand and deserve. We have made substantial progress since my January statement to Parliament.
“We will continue to drive forward change and strengthen accountability. This is about changing the system and the culture that underpins it.”
Westminster’s Scottish Affairs Committee will examine the future of the Grangemouth oil refinery as part of its inquiry into GB Energy and the net zero transition on Wednesday 2nd April.
The imminent closure of Scotland’s only oil refinery at the Grangemouth industrial complex, one of Scotland’s major manufacturing facilities, threatens the jobs of around 400 workers.
This evidence session follows the publication of Project Willow, a feasibility study co-funded by the UK and Scottish governments to examine the viability of new sustainable opportunities at the Grangemouth refinery site. Carried out by consultancy EY, the study identified nine projects that could be developed with private sector investment.
The cross-party committee of MPs will question the refinery operator Petroineos, shareholder INEOS, and one of Project Willow’s authors, on the study’s findings.
Witnesses at 9.30am:
Anu Bhambi, Head of Energy Transition Strategy, EY Parthenon
Iain Hardie, Head of Legal and External Affairs, Petroineos
Colin Pritchard, Sustainability and External Relations Director, INEOS Grangemouth
Lothian MSP Sarah Boyack has secured confirmation over the timetable for the new eye pavilion.
Deputy Chief Exec of NHS Lothian, Jim Crosbie revealed that the new eye pavilion would be delivered in 6 years during a roundtable hosted by Ms Boyack.
Ms Boyack secured the meeting following her open letter to Scottish Health Secretary, Neil Gray on the lack of clarity over the new hospital’s progress.
The roundtable was attended by MSPs from across Edinburgh and the Lothians as well as stakeholders from sight loss organisations and patient groups.
NHS Lothian promised to continue to keep MSPs and stakeholders updated about progress and the health board also committed to proper consultation with the sight loss community.
The current Eye Pavilion has been shut since last year since asbestos was discovered in the building. This has caused major disruption for those in the sight loss community who rely on the hospital.
An organisation of patients supporting a new hospital, KEEP, were present at the roundtable and highlighted some of the difficulties for patients trying to access basic facilities since the closure of the current pavilion.
Speaking after the meeting, Ms Boyack said: “I am glad to finally have some clarity of when Edinburgh will finally see a new eye hospital.
“However, I can’t shake the feeling that this facility is way overdue.
“The current facility has not been fit for purpose since 2014, on the current timetable patients will be waiting another 6 before getting the standard of services they deserve.
“I will continue to hold the Scottish Government’s feet to the fire over this until the Eye Pavilion has been delivered.”
Popular Minister for Drugs and Alcohol Policy has passed away
Following the news of the sad passing of Christina McKelvie MSP, the Scottish Government Minister for Drugs and Alcohol Policy, the First Minister of Scotland, John Swinney MSP, said: “I am devastated to learn of the passing of Christina McKelvie – one of the kindest and most generous people I have ever met in my life.
“In all the years since I first met Christina, I have been so grateful to call her my friend and colleague and to benefit from her warmth and loyalty.
“Christina was fiercely proud of her Easterhouse roots, and she often spoke of how injustices her family experienced in her childhood had inspired her to join the trade union movement and enter elected politics.
“In her almost two decades as a Member of the Scottish Parliament, Christina put her values into action. Whether it was helping her constituents in Hamilton, Larkhall and Stonehouse, serving as a highly-respected committee convenor, or in the Ministerial posts she held, Christina was always a fierce champion for equality, social justice, for Scottish independence and for a better world.
“But for all her many political achievements, Christina was first and foremost deeply committed to her family. Everyone could see the joy that she and her partner Keith brought to each other’s lives, and she spoke so often over the years of her pride for her sons, and more recently her immense joy at becoming a granny.
“In recent years, when Christina returned to Parliament after treatment for breast cancer, she was determined to help those around her – using her platform to encourage women to check themselves and go to screening appointments.
“The Scottish National Party has lost one of its finest, and I have lost an outstanding Minister in my government. I know her loss will be felt right across the Parliament and among the countless constituents she supported over the years. Christina was such a big-hearted woman, with compassion and social justice at her core. Her political allies and opponents would agree – she truly was a force of nature.
“Today, my thoughts and prayers are with Keith, her sons Jack and Lewis and her wider family and many friends.”
Chancellor ‘delivers security and national renewal in a new era of global change’
Chancellor vows to bring about “new era of security and national renewal” as she delivered a Spring Statement to kickstart economic growth, protect working people and keep Britain safe.
People to be on average £500 a year better off by the end of this parliament compared to under the previous government, putting more money in people’s pockets.
OBR forecast concludes government’s landmark planning reforms will result in a £6.8 billion boost to the economy and housebuilding at its highest level in over 40 years by 2029-30
Growth at the heart of Plan for Change as £13 billion of additional capital spend allocated alongside £2.2 billion defence funding boost next year.
THE Labour government said people will be on average £500 better off from 2029, relative to OBR’s autumn forecast, helping to deliver the Plan for Change as the Chancellor yesterday (Wednesday 26 March) announced a Spring Statement to grasp the opportunities in a changing world.
THEY WON’T. From November 2026, 370,000 people who already get PIP will lose it and another 430, 000 who would qualify now no longer will. These people will lose £4500 a year each. And 150,000 carers who look after them will no longer receive their £83.30 a week Carer’s Allowance.
The OBR has also concluded that the government’s landmark planning reforms will result in UK housebuilding reaching its highest level in over 40 years, bringing the UK one step closer to its Plan for Change mission to build 1.5 million homes.
The government says economy will be 0.2% larger in 2029-30 because of the reforms – worth around £6.8 billion in today’s money – growing to 0.4% over the next ten years. This represents the biggest positive growth effect it has ever forecasted for a policy that comes at zero-cost to taxpayers. The reforms will secure over 170,000 new homes for hard working families and leave borrowing £3.4 billion lower in 2029-30.
The Chancellor also set out how the government is protecting national security and maximising the growth potential of the UK defence sector by confirming a £2.2 billion increase in the defence budget in 2025-26 while ensuring UK defence is on the cutting-edge of technology and innovation.
But growth is still not where it should be, so at this Spring Statement, this government has gone ‘further and faster’ to kickstart growth by training up to 60,000 young people to get Britain building again; increasing capital investment by £13 billion over this parliament; and fixing public services by tearing out waste from its roots.
Growth
Kickstarting economic growth is the number one mission of this government, putting more money in people’s pockets. The government has already made considerable progress; supporting a third runway at Heathrow; revitalising the Oxford Cambridge Growth Corridor, launching the National Wealth Fund and making the right choices on public investment to drive growth across the UK.
The actions of this government across the Autumn Budget and Spring Statement, if sustained, lead to a 0.6% rise in the level of real GDP by 2034-35, signalling the government’s growth plan is working.
The OBR concluded that the stability rule is met by £9.9 billion and the investment rule is met by £15.1 billion. Both rules are met two years early, meaning from 2027-28 the government is only borrowing for investment and net financial debt is falling.
The government is not satisfied with short-term growth figures, and is going further and faster today to improve this:
To go further and faster to get Britain building, the Chancellor has today announced a further £13 billion of capital investment over the Parliament to go further on growth, on top of the £100 billion uplift announced at Autumn Budget. This will deliver the projects needed to catalyse private investment, boost growth and drive forward the UK’s modern industrial strategy – unlocking the potential of the Oxford Cambridge Growth Corridor which could add up to £78 billion to the UK economy by 2035.
Taken together, this greater capital investment more than offsets the modest savings on day to day spending and means the total departmental spending will increase over the next five years, when compared with plans in the Autumn.
Over this Parliament, the government is funding a £625 million package to boost skills in the construction sector, which is expected to provide up to 60,000 more skilled construction workers to support the government’s plans to deliver 1.5 million homes in England over the parliament and progress vital infrastructure projects.
As part of this, the government is providing further support to scale up existing construction skills pathway over this Parliament through £100 million for 35,000 additional training places in construction-focused Skills Bootcamps, supporting trainees, ‘returners’, and existing employees to succeed in the sector. Building on the £40 million investment in the new Growth and Skills Levy at Autumn Budget 2024, the government is also providing a further £40 million to support up to 10,000 more young people to access new construction Foundation Apprenticeships, which will provide a key entry route into a thriving industry.
The government is ensuring there are enough skilled construction workers in the system, with £100 million to deliver 10 Technical Excellence Colleges specialised in construction across every region in England, and £165 million to increase funding for training providers delivering construction courses for 16-19-year-olds and adults.
The government is committed to supporting employers to unlock further investment in training to deliver more skilled construction workers, and is providing £100 million, alongside a £32 million contribution from the Construction Industry Training Board to deliver up to 40,000 industry placements in construction each year.
Supported by the construction skills package, the government confirmed this week that there will be a £2 billion injection of new grant funding to deliver up to 18,000 new social and affordable homes. The new funding will only support developments on sites that will deliver in this Parliament, getting spades in the ground quickly to build homes in places such as Manchester and Liverpool.
Defence
The world is changing before our eyes, reshaped by global instability, including Russian aggression in Ukraine. Europe is facing a once-in-a-generation moment for its collective security, with conflicts overseas undermining security and prosperity at home.
A month ago, the PM announced the biggest sustained increase in defence spending since the Cold War as a result of the changing global picture, now reaching 2.5% of GDP by April 2027, and with an ambition to reach 3% in the next Parliament subject to economic and fiscal conditions.
We are going further and faster to protect our national security and maximise the economic growth potential of the UK defence sector:
Increasing the defence budget by £2.2 billion in 2025-26, taking additional spending on defence to over £5 billion since the Autumn Budget.
This raises spending on defence to 2.36% next year and will be invested in fitting Royal Navy ships with Directed Energy Weapons five years earlier than planned, providing better homes for military families and modernising His Majesty’s Naval Base Portsmouth.
Setting a minimum 10 percent ringfence for equipment spending on emerging technologies like drones and autonomous systems, dual-use technology, and AI-powered capabilities, so that British troops have the tools they need to fight and win in modern warfare.
Getting this new tech into the hands of our armed forces quicker by cutting away bureaucracy, with a new UK Defence Innovation unit within the Ministry of Defence spearheading efforts to identify promising technology and ensure these get to the frontline at speed, while also bolstering the UK tech sector and crowding in private investment.
Creating bespoke procurement processes for different types of military equipment, learning lessons from our rapid support for Ukraine to drive faster timescale targets for operationalising new tanks, aircraft and other essential tools for modern warfare.
This government is determined to transform the defence sector into an engine for growth by focusing this investment on where it boosts the productive capacity of the economy such as investment in innovation and novel technologies. As a result of the increase in defence spending to 2.5%, the government estimates this could lead to around 0.3% higher GDP in the long run, equivalent to around £11 billion of GDP in today’s money.
The government’s investment in defence will also support its number one mission to deliver economic growth. UK citizens will be protected from threats at home whilst creating a stable environment in which businesses can thrive, and supporting highly skilled jobs and apprenticeships across the whole of the UK.
Reform
The government is determined to make the public sector more productive and to improve services for working people. But the changing world means we need to go further and faster to ensure we can deliver the public services that working people care most about.
The government has shown its commitment to taking the difficult decisions required to drive efficiencies and reform the state – including announcing that the world’s largest quango, NHS England, will be brought back into the Department for Health and Social Care, reducing bureaucratic inefficiencies and duplication; and driving out wasteful government spend through cancelling thousands of government credit cards.
Getting more people into jobs is also central to the government’s growth mission. This broken welfare system that is letting people down by asking them to prove what they can’t do, rather than focusing on what they could do with the right support – trapping people due to fear of trying work, lack of support and poor financial incentives.
The social security system will always protect those who can never work, that is why this government is proposing an additional premium that will safeguard their incomes. And will end reassessments for people with the most severe, life-long conditions to give them dignity and security.
Helping more people into work is a central aim of these reforms and which is why the government is tackling incentives to be inactive by abolishing the WCA, rebalancing Universal Credit, and investing more into employment support.
We will always support those with long term health conditions through the Personal Independence Payment, which will remain an important non-means tested benefit for disabled people and people with long term health conditions. But these reforms will make the system more targeted and sustainable to ensure the safety net is there for those who need it most.
The OBR have now set out their final assessment of costings and confirmed this welfare package will reduce welfare spending by £4.8 billion in 2029-/30.
The government will modernise the Civil Service into a more productive and agile organisation that can effectively deliver the Plan for Change, underpinned by a digital revolution, while cancelling thousands of government procurement cards.
Today, the Chancellor has gone further:
The Chancellor has confirmed the creation of a £3.25 billion Transformation Fund to support the fundamental reform of public services, seize the opportunities of digital technology and Artificial Intelligence (AI), and transform frontline delivery to release savings for taxpayers over the long-term.
The Fund will invest in vital public services and accelerate the modernisation of the state by taking the next step to reform the children’s social care system through an additional £25 million for the fostering system. This will include funding the recruitment of a further 400 new fostering households, providing children with stability and addressing cost pressures on local government.
The fund will also support the managing offenders in the community, by providing £8 million for new technology so probation officers can focus on reducing reoffending, rather than filling out forms.
In addition, it will provide £42 million for three pioneering DSIT-led Frontier AI Exemplars. These Exemplars will test and deploy AI applications to make government operations more efficient and effective and improve outcomes for citizens by reducing unnecessary bureaucracy.
To create an agile and productive state we are also providing £150 million for government employee exit schemes. This will support a leaner and more efficient Civil Service, helping to reduce administration costs by 15% by the end of the decade. The Chancellor also announced a package of measures to close the tax gap, raising £1 billion per year by 2029-30. The UK tax gap was estimated to be around £40 billion in 2022-23.
The Spring Statement earmarks around £80 million in new money for third party debt collectors to bring in £1.3 billion over the next five years – a return of around £16 for every pound spent for UK public services and investment projects. HMRC will also receive £4 million in new funding to pilot a new test and learn programme with the private sector to improve the tax collection agency’s approach to recouping older unpaid tax debt. Ministers will decide whether to proceed with a larger exercise later this year based on the results of this test.
An additional 600 staff will also be recruited into HMRC’s debt management teams. This means that for every £1 spent on these staff, over £13 of debt is expected to be recovered. The staff will work with the private sector to make collecting tax debt more efficient including through automating admin processes.
The Spring Statement also announces £100 million in new funding for HMRC to recruit a further 500 compliance officers from April 2025. This will raise £241 million in unpaid tax over the next five years.
Late payment penalties for VAT and Making Tax Digital for income tax Self Assessment will increase to incentivise taxpayers to pay on time. This will be from 2% to 3% at 15 days, 2% to 3% at 30 days, and 4% to 10% from day 31. This will take effect from April 2025.
As announced in the autumn, Making Tax Digital for income tax Self Assessment will be extended to sole traders and landlords with income over £20,000. The Spring Statement confirms that this additional group will join Making Tax Digital from April 2028. This will build on the existing plan which will see sole traders and landlords with income above £50,000 joining from April 2026, and those with income above £30,000 joining from April 2027. Around 4 million businesses have an income below the £20,000 threshold.
Looking Forward
This Spring Statement builds on the Autumn Budget and the decisions taken since required to deliver stability to the British economy and kickstart economic growth.
The government will set out its plans for spending and key public sector reforms at the Spending Review which will conclude on 11 June 2025.
This will not be a business-as-usual Spending Review. The government has fundamentally reformed the process to make it zero-based, collaborative, and data-led, in order to ensure a laser-like focus on the biggest opportunities to rewire the state and deliver the Plan for Change.
At the Spending Review, the Budget in the autumn and across the Parliament, the government will continue to prioritise growing the economy to deliver change.
RESPONSES:
UK spending cuts ‘risk harm to most vulnerable’
Finance Secretary responds to Spring Statement
Spending cuts announced by the Chancellor risk harming some of the most vulnerable people in society, Finance Secretary Shona Robison has said.
Responding to the Spring Statement, Ms Robison said: “Today’s statement from the Chancellor will see austerity cuts being imposed on some of the most vulnerable people in our society. The UK Government appears to be trying to balance its books on the backs of disabled people.
“Not content with these cuts, the UK Government is still expected to short-change Scotland’s public services on additional employer National Insurance costs to the tune of hundreds of millions of pounds. This will be felt in public services that people rely on up and down the country – services such as our NHS, GPs, dentists, social care providers, and universities.
“The UK Government’s choice to increase defence investment is welcome, but its choices to shortchange public services and deliver austerity cuts to some of the most vulnerable are deplorable.”
TRUSSELL:
Trussell responds to ‘catastrophic’ Spring Statement
Cara Hilton, Senior Policy Manager at Trussell in Scotland, said: “Today’s announcement has incredibly worrying implications for disabled people in Scotland.
“The insistence by the Treasury on driving through record cuts to disabled people’s social security to balance the books is both shocking and appalling. People at food banks are telling us they are terrified how they’ll survive.
“These brutal cuts to already precarious incomes won’t help more disabled people find work, but they will risk forcing more people to skip meals and turn to food banks to get by.
“Cuts come at a cost. Driving up hunger and hardship means more spending on already struggling public services, with increased hospital and GP visits a very likely outcome of these actions.
“Disabled people are already three times more likely to face hunger, and over three quarters of people in receipt of Universal Credit and disability benefits are already struggling to afford the essentials like food. This will only get worse.
“These cruel cuts are out of touch with what voters want from this government. The government says people voted for change in Westminster, but we know that seven in ten voters across political parties agree the social security for disabled people should at least be enough to cover essential living costs. This is a change for the worse, and it is disabled people who will pay the price.”
David, 46, has a bone disease and is terrified by the prospect of cuts to his disability benefits. He has recently been forced to turn to a Trussell food bank for support.
He said: “I am terrified now that the Chancellor has confirmed that my disability benefits will be cut. The bone tumours in my hips cause me pain everyday and force me to use crutches, and in the cold weather my symptoms worsen but I already can’t afford to put the heating on.
” I don’t know how I’ll survive. It’s not my fault I’m disabled, and I shouldn’t be punished for it.
“Life costs more if you’re disabled. Things like specialist equipment and travel to healthcare appointments all add up. PIP – which the government is brutally cutting – is there to account for these extra costs. It is not a luxury, and I shouldn’t need to use a food bank or turn to charities like Trussell for support.
“Cutting my benefits won’t get me back to work – it will just push me deeper into poverty.”
JOSEPH ROWNTREE FOUNDATION
“The Chancellor said today that she would not do anything to put household finances in danger Yet the government’s own assessment shows their cuts to health related benefits risk pushing 250,000 people into poverty, including 50,000 children.
“Their assessment also found:
800,000 will lose PIP according to the OBR
3m will lose money from changes to the main health element of UC, £500 a year for existing claimants, and £3000 for new claimants
£500m will come out of the carers benefits bill as 150,000 lose carers allowance or UC care element.
“The Chancellor said the world has changed, and today’s announcements places the burden of that changing world on the shoulders of those least able to bear the load. These cuts will harm people, deepening the hardship they already face.”
CHILD POVERTY ACTION GROUP:
Responding to today’s Spring Statement, chief executive of Child Poverty Action Group Alison Garnham said: “Stealth social security cuts bring neither stability nor security to struggling families and will push child poverty even higher.
“Growth and better living standards are not achieved by taking money from families with the least.
“Government must invest in social security support – not cut it – for the most vulnerable, or risk being remembered as the Labour administration under whose watch child poverty continued to rise.”
CARERS UK:
STUC:
INDEPENDENT ALLIANCE MPs:
KIM JOHNSON MP:
OCTOPUS ENERGY:
Greg Jackson, CEO of Octopus Energy, said: “It’s good to see the focus on planning and other reforms that can unlock investment to help make Britain more productive and drive growth.
“We were also pleased to see the receipts from the Government’s sale of Bulb to Octopus funding 36,000 homes for armed forces families. It’s a sign of how business and Government can work together for the good of the country.”
FRONT PAGES:
MOMENTUM:
NEW ECONOMICS FOUNDATION:
JEREMY CORBYN:
PRIME MINISTER KEIR STARMER:
THE NATIONAL:
TRADES UNION CONGRESS (TUC):
Responding to today’s (Wednesday) Spring Statement, TUC General Secretary Paul Nowak said: “Labour inherited a toxic economic legacy from the Conservatives. But at the Budget the Chancellor took the right call to invest in repairing our public services and infrastructure.
“To rebuild Britain this approach must continue long-term. In the face of strong global headwinds, we need to keep building stronger foundations at home. That must include protecting the most vulnerable.
“As the last 14 years have shown us – you cannot cut your way to growth. UK taxes are low as a share of GDP. Those with the broadest shoulders must continue to contribute more through a fairer tax system.
“And the Tories’ botched Brexit deal must be improved to boost growth and trade.”
On the government’s social security reforms, Paul said:“Ministers need to rethink their plans. Decisions that affect millions of people’s lives must be made with care – not as a last-minute response to changed fiscal forecasts.
“These changes mean many disabled people – whether they are in work or not – will be pushed into hardship.
“And removing support could even make it harder for some people to stay in their jobs.
“Disabled people need timely access to high quality healthcare, and accessible jobs – particularly in the towns and communities where there are fewest opportunities.”
On the public sector workforce, Paul added:“Public sector workers are key deliverers of national renewal.
“But after 14 years of Tory chaos and ruin, many feel burnt out and demoralised.
“It’s vital the government invests in these workers and recognises the key role they play in improving the services we all rely on.
“Any approach to transforming our public services must include clear workforce plans for every part of our public sector, developed in partnership with staff and unions.”
On the OBR’s growth forecasts, Paul said: “It is time to review both the role of the OBR and how it models the long-term impacts of public investment. Short-term changes in forecasts should not be driving long-term government decision-making.”
UNITE THE UNION:
UK FINANCE:
David Postings, Chief Executive Officer, UK Finance said: “The chancellor’s Spring Statement focused on stability and growth in the UK. We welcome the government’s continued commitment to growing the economy and the financial services sector is committed to playing its part in support.
“Building on recent positive regulatory reform plans, we now look forward to the upcoming Industrial Strategy, which will be key to unlocking further investment and delivering growth through various sectors, including financial services.”
MENTAL HEALTH FOUNDATION:
LLOYDS BANKING GROUP:
Charlie Nunn, Chief Executive Officer, Lloyds Banking Group said: “A safe and lasting home is the foundation for good lives and livelihoods, and we welcome this boost to building much-needed social and affordable homes.
“As the UK’s biggest commercial supporter of social housing, we’re working across the private, public and community sectors to help increase provision of good quality, genuinely affordable housing for those in need.”
UNITE HOSPITALITY:
DAILY MIRROR:
POVERTY ALLIANCE:
Responding to the Spring Statement, Poverty Alliance chief executive Peter Kelly said: “People in the UK voted for change at the last election because they were desperate for a government that delivers a just and compassionate country. Today’s announcements undermine that ambition.
“It is completely unjust to, once again, balance the books on the backs of the those on the lowest incomes. Today’s statement layered additional cuts to our social security system on top of those announced last week. That will have a devastating impact for households across the country.
“The Government’s own analysis shows that these changes will push at least 250,000 people, including 50,000 children into poverty, undermining the forthcoming child poverty strategy before it’s even published.
“These cuts will push people into debt and destitution. They will continue the need for food banks. They will stop people heating their homes, or charging essential medical and support equipment.
“People know that there is no justification for these cuts. It does not have to be like this. The Chancellor could scrap her self-imposed fiscal rules or use our taxation system to raise the revenue needed for the better future we all want to see.
“The UK Government is re-running a failed experiment – austerity will not deliver economic growth. And it certainly won’t deliver a just and compassionate society.”
SCOTTISH HUMAN RIGHTS COMMISSION:
Deep concern about impact of UK Government’s Spring Statement
The Scottish Human Rights Commission (SHRC) is deeply concerned about the impact of announcements on the future of the UK welfare system in the UK Government’s Spring Statement, especially for disabled people and their families and communities.
Plans to cut the health element of Universal Credit will have a direct effect on the human rights of those disabled people in Scotland who are unable to work. Although payments to support people with the additional costs of disability are devolved in Scotland, the UK Government’s proposals will have negative consequences for the Scottish Budget.
Severe economic hardship
Earlier this month, the UN Committee on Economic, Social and Cultural Rights, which holds governments around the world to account for their record on human rights, warned that changes to the UK welfare system introduced since 2012 have “eroded the rights to social security and to an adequate standard of living, disproportionally affecting persons with disabilities, low-income families and workers in precarious employment” and warned that these changes have resulted in “severe economic hardship”.
Last year, the UN Committee on the Rights of Persons with Disabilities reiterated its position that the UK welfare system is leading to ‘grave and systematic’ violations of disabled people’s rights. Over the past week many disabled people, Disabled People’s Organisations and civil society organisations have expressed shock and fear about what further changes to the system could mean for people.
Professor Angela O’Hagan, Chair of the SHRC, says: “With these announcements, the UK Government is not only disregarding the expert findings and recommendations of human rights bodies, but actively pursuing regressive changes that further deteriorate the rights of disabled people in Scotland.
“Indeed, these steps may potentially represent a breach of the UK’s obligations under international human rights law, particularly its duty to progressively realise the rights to social security, an adequate standard of living, and non-discrimination.
“Social security, an adequate standard of living, and non-discrimination are not optional benefits — they are binding human rights that the UK is required to respect, protect, and fulfil for everyone.
“These proposals fly in the face of both the letter and the spirit of the UK’s human rights obligations.”
VOLUNTEER SCOTLAND:
We share the concerns voiced by many third sector organisations regarding the Chancellor’s Spring Statement on Wednesday (writes Volunteer Sotland’s SARAH LATTO).
The significant cuts to health-related benefits have the potential to push more people into financial difficulty. This would create significant additional demand for third sector services and the volunteers that support them.
This comes at a time when the third sector is facing unprecedented pressures, and volunteer participation is in significant decline. Given the reported challenges many organisations are experiencing in recruiting new volunteers, this could add considerable pressure to existing volunteers who give their time to support people in crisis. This is not sustainable and could contribute to a further decline in volunteer participation.
This same research also found that the effect of volunteering on mental wellbeing for people with a disability or long-term health condition was seven times larger than for people without.
Despite these clear benefits, we are concerned that the announced reduction in welfare spend will prevent many people in receipt of benefits from pursuing volunteering.
This is because of competing demands on their time and rising stress or anxiety regarding their finances. The planned changes to welfare spend will likely exacerbate this situation further, meaning many people in receipt of health-related benefits may feel unable to participate in an activity that is likely to improve their health and wellbeing.
As a result, we join many voices from the third sector in urging the Chancellor to rethink her plans around welfare spend.
FRASER OF ALLANDER INSTITUTE:
Spring Statement reaction: a second fiscal event of the year after all
It was also one where the forecasting process was nowhere as smooth as we hoped it might be given how much hay the Chancellor made out of strengthening the role of the OBR in the Autumn. Instead, we have seen a number of measures either uncertified or included only on a provisional basis, and with no time to evaluate their supply-side effects.
Given how long these measures have been speculated about, the last-minute tweaks and the scramble to announce further welfare reforms to make the sums add up to the £5bn in savings are pretty disheartening. It also makes us wonder about the reasons for announcing the headline amounts last week, before ultimate certification by the OBR.
It is not credible that the Chancellor or the Work and Pensions Secretary were not aware of the OBR’s concerns at the time of the announcement, and so we are left to wonder why figures that weren’t final were bandied about beforehand instead of being left for the appropriate fiscal event.
The underlying picture deteriorated significantly, and so spending cuts have filled the gap
As widely predicted, the Chancellor would have seen her fiscal rules broken had she not made significantly policy decisions, which collectively cut current spending by nearly £9 billion a year by 2029-30.
Chart: How the Chancellor restored her headroom
Source: OBR
Debt servicing costs are the main reason for the deterioration. Higher market interest rates raised the cost of servicing government by just over £10 billion by the end of the decade, more than wiping the starting headroom. Faced with this, and after staking her credibility on complying with the fiscal rules, the Chancellor decided to mostly lean on the spending side of the ledger to essentially get back to where she started.
This means a heavily backloaded set of policy decisions, with spending cuts coming from 2027-28 onwards. Changes to incapacity and disability benefits mostly affect spending from then on, by £1.8 billion in that year and rising to £4.6 billion by 2029-30.
Changes to the path of day-to-day departmental spending also rise to over £5 billion by 2029-30, although some of that is offset by specific investment programmes such as employment support, DWP delivery and HMRC compliance. On net, current departmental spending has been cut by £3.6 billion by 2029-30 relative to plans.
There have also been some increasing in the tax take. Much of it is from compliance activity and tax debt collection, although there are also additional council tax increases allowed in England and increases to passport and visa fees. Receipts are higher by £2.3 billion by 2029-30 because of measures.
But the Chancellor has had to run just to stand still. She is just as close to missing her fiscal rule as she was in October, and that leaves her exposed to any weaknesses or market movements between now and the Autumn. Things may well turn out for the better – but that is far from guaranteed, and it’s as close to a 50-50 bet as it gets.
Chart: Headroom against the main fiscal target since 2010
Source: OBR
What do the announcements mean for the Scottish Budget?
In the very short-term, there is a small amount of additional funding (£28 million) for the Scottish Government in 2025-26 due to a small increase in departmental spending at UK Government level.
Towards the end of the forecast, however, the picture is significantly more challenging in terms of what it means for Holyrood’s finances. The cuts in departmental budgets announced by the UK Government – even after accounting for some consequentials from employment support programmes and DWP delivery of welfare reforms – mean significant reductions in funding for the Scottish Government relative to what was previously included in the forecasts. Of particular significance are the £200 million and £435 million cuts in implied funding for the Scottish Budget in 2028-29 and 2029-30.
The current forecast points to the PIP reforms reducing the block grant adjustment for social security devolution by increasing amounts, from £177 million in 2027-28 to £455 million in 2029-30. This is in line with what we discussed in recentblogs.
Put together, and in the absence of any other changes, the Scottish Budget would be around £900 million worse off on the current side in 2029-30 than previously projected. On the other hand, some additional capital spending on areas which are devolved in Scotland – so aside from the defence spending increases – are expected to raise the Scottish Government’s capital budget by nearly £250 million by 2029-30 relative to current plans.
Chart: Effects of the Spring Statement measures on the Scottish Budget
Source: OBR
There’s still much we don’t know about the welfare reforms
One key policy change from last week’s Green Paper that the OBR have not been able to cost is the removal of the Work Capability Assessment (WCA) that currently determines whether a person is eligible for the Universal Credit (UC) health element. The UK Government have proposed that the PIP assessment will be used instead.
The OBR note the absence of key policy detail, including how entitlement will operate in Scotland where PIP is being phased out. They do state that they expect the policy to have a “material” fiscal impact, both on spending on UC but this could be offset by an increase in people claiming PIP. The labour market response of this (as with most of the other Green Paper policies) is also yet to be analysed by the OBR.
These changes will directly impact on people in Scotland as UC is a reserved policy, but as already noted, how this will happen given that PIP will soon not exist in Scotland, is unknown. The number of people impacted could be significant. The Scottish Government could mitigate this impact through its own social security top up powers but, as with the recently announced mitigation of the two-child limit in UC, would need to be able to find the money to do so from within its own budget.
But distributional analysis shows significant numbers of people will be worse off
Alongside the Spring Statement documents, the UK Government also update their distributional analysis (the differential impact of policies on poorer, middle, and higher income households). The impact of the Spring Statement, the policies from the Spring Statement are added to the policies from the Autumn Statement, making it difficult to isolate the impact of the Spring Statement, although the regressive nature of the welfare measures is clear to see: those in the lower half of the income distribution are facing most of the cuts.
This makes for sobering reading. The impact of changes to the eligibility for PIP will affect 800,000 people who will no longer be eligible for the Daily Living component. They note a further 150,000 people will not receive Carer’s Allowance of the UC Carer element as a result. These numbers are for England and Wales only given that disability benefits are devolved.
These results, on their own, will increase the number of working age people in poverty by 250,000 and 50,000 children. The UK Government are careful to say that these estimates do not account for any employment impact of those who lose benefits subsequently moving into work, and we will need to wait for the OBR to judge on the strength of these employment effects to understand the potential for offsetting of these numbers.
The reduction and or freezing of the UC health element will affect Scottish claimants as well as those in England and Wales. 2.25 million people who are current claimants will be affected by the freeze and 730,000 new claimants will receive the new lower rate and freeze. A further 50,000 working age people will be in poverty as a result of these changes.
There is as yet no analysis of the impact of the abolition of the Work Capability Assessment in UC, and the only impact that is shown is the reversal of a 2023 change to the descriptors in the Work Capability Assessment, which will not apply given the decision to abolish it.
We’ll have to wait until the OBR has been able to look at the whole policy package in aggregate before we understand the full scale of the impact both on the UK and Scotland. But it is clear from what we know so far that this is a package of measures that will raise poverty across the UK.
How does departmental spending look in historical context?
In October, the Chancellor announced significant increases in departmental spending. But we and others also noticed how frontloaded some of those announcements were.
This has been made even more so by the changes at this forecast to the latter years of the projections. Day-to-day departmental spending per person is now forecast to grow by a strong 3.4% in real terms in 2025-26, slowing to 1.5% in 2026-27 and remaining at 0.6% a year for the rest of the decade.
We’ll leave others to decide on words to characterise this path of spending. We’ll instead note that this leaves spending per person only 8% higher than it was in 2007-08. And as a share of national income – a better measure of affordability and of the Government’s prioritisation of the country’s resources – there is a slight increase in spending in the short-term. But day-to-day departmental spending then falls back by 0.4 percentage points by the end of the decade relative to its peak of 16.1 per cent of GDP in 2025-26 and 2026-27.
Chart: Resource departmental spending per person in real terms and as a share of GDP since 2007-08
Foysol Choudhury MSP Stands with Unsung Community Heroes in Edinburgh
Foysol Choudhury, MSP for Lothian, calls for greater support and funding for local community organisations in Edinburgh, such as the Polish Family Support Centre, following a series of ruthless budget cuts from the Scottish Government.
Foysol Choudhury MSP has issued a heartfelt and urgent appeal for greater support and funding for local community organisations in Edinburgh. During a recent visit to the Polish Family Support Centre, Mr. Choudhury emphasised the critical role these organisations play in encouraging community cohesion and providing essential services to underrepresented groups.
This comes after the Scottish voluntary sector was struck with further budget cuts. The Scottish Council for Voluntary Organisations (SCVO) have revealed that real-term cuts to public funding have surmounted to over £177m since 2021, where more than 76% of third-sector organisations report financial challenges because of inflation and rising costs.
These cuts are not just numbers; they represent the struggles of countless individuals and families who rely on these vital services.
This situation may only worsen with changes to employers’ National Insurance contributions, imposed by Labour Chancellor Rachel Reeves, which could leave the sector with another £75m to find each year.
In his recent visit to the Polish Family Support Centre, Mr. Choudhury witnessed significant challenges due to limited funding and resources.
As a one-stop-shop for all, the Polish Family Support Centre provides a wide range of services, including professional counselling, workshops, and support groups, all aimed at helping Polish families and individuals navigate the complex nature of life in Scotland.
However, the Centre’s ability to expand its reach and impact has been drastically obstructed by financial constraints. According to the Office of the Scottish Charity Regulator, the Polish Family Support Centre has lost hundreds of thousands in funding, and with over 4,040 yearly sessions in 2023 – an increase of 2,000 from 2018 – it is clear that the Polish Family Support Centre needs further backing.
Other community organisations such as the Edinburgh Children’s Hospital Charity, Milan SWO, Edinburgh Diwali, the Bihari Community of Scotland, and other third sector organisations are also crying out for support.
Mr. Choudhury’s call to action comes at a time when many third-sector community organisations struggle to secure funding and resources. He has been a vocal advocate for these groups, hosting roundtable discussions at the Scottish Parliament to address the current funding model and barriers to access.
Here, the Scottish Government and other public bodies need to take a fair funding approach, moving to inflation-based settlements of three years or more, which consider costs such as uplifts in the real living wage.
Community organisations, such as the Polish Family Support Centre, continue to exist as a symbol of hope for the people of Edinburgh, driven by a mission to support and empower individuals and families.
Commenting, Foysol Choudhury MSP said:“Community organisations exist as the backbone of our society. They offer vital services, from psychological support to advocacy, yet they remain overlooked and underfunded.
“It is crucial that we recognise their contributions to our community and provide them with the necessary support to continue their work.
“Edinburgh and the rest of Scotland must address the barriers to funding and ensure that smaller community-based organisations have access to the resources they need, as their work is crucial in promoting social inclusion and supporting minority groups.
“I urge everyone from policymakers to residents, to recognise the invaluable work these organisations do. They are not just service providers; they are the heart and soul of our communities.
“By supporting them, we are investing in a more inclusive, compassionate, and resilient society. Let’s come together to ensure that nobody is left behind.”
The Scottish Government has called on UK Government ministers to urgently deliver a targeted energy bill discount to protect customers in greatest need and drive down high fuel poverty rates.
The final report of the Social Tariff Working Group – comprising energy suppliers, consumer and fuel poverty groups and disabled people’s organisations – published today, recommends targeted energy bill support to address the issue of unaffordable bills, plus a move beyond determining eligibility based on receipt of benefits.
The group concluded that support applied automatically to eligible households, using metrics based on a combination of household income, medical need and rurality would have a positive impact.
Acting Climate Action Minister Alasdair Allan said: “High energy prices remain the single greatest driver of fuel poverty in Scotland, and we have taken various steps – within the limits of our devolved powers – aimed at raising household incomes and improving energy efficiency.
“We have reinstated the Winter Fuel Payment for pensioners; we have increased funding for Warmer Homes Scotland by £20 million, helping around 1,500 more households save on energy bills; and we have committed a further £20 million for the Scottish Welfare Fund to support the most vulnerable people.
“However, this is not enough to drive down stubbornly high fuel poverty rates and energy prices continue to rise. Targeted bill support is urgently needed to ensure that consumers are protected against high costs at source and can afford all their energy needs.
“We have worked very productively with energy providers and advice groups to come up with a deliverable scheme, and the final report demonstrates clear consensus on the way forward. However, the fundamental levers to make a difference are with the UK Government.
“Existing one-off flat rate rebates are insufficient and are not a long-term solution, and the UK Government must urgently deliver a unit rate discount, with the level of discount proportionate to need. The outputs from our group must act as a foundation and mainstay of a revised strategy, providing a signal of intent and leadership by the UK Government in tackling fuel poverty at source.”
The group considered fuel eligibility, consumer eligibility and data, level and form of support, and funding, as well as feedback from frontline advisers and campaigners.
Its conclusions differ from previous models which would have meant moving customers on to a different tariff, thereby removing them from the competitive market and from other means of saving money.
CHANCELLOR EXPECTED TO SLASH WELFARE IN SPRING STATEMENT
New polling reveals people in Scotland would overwhelmingly prefer the very richest to pay more in tax rather than see cuts to public spending, as parallel Oxfam analysis shows the UK’s wealthiest people continue to amass even greater fortunes.
It comes as new number crunching by Oxfam, Patriotic Millionaires UK and Tax Justice UK finds that UK billionaires have seen their fortunes swell by £11 billion in the past 12 months alone – the combined amount the UK Government plans to cut from international aid and social security entitlements for people in the UK with disabilities or illnesses.
Campaigners say the data shows the UK Government’s recent cuts are not about financial scarcity, but rather about political priorities, and they sharply contrast with public opinion.
The polling, carried out ahead of the Spring Statement by YouGov on behalf of Oxfam, shows that people aged over 16 in Scotland strongly back action to fairly tax the wealthiest:
68% think the very richest should pay more in tax.
More than three-quarters (79%) would rather tax the very richest than see cuts to public spending.
79% support a new 2% wealth tax on assets worth more than £10 million.
The findings pile further pressure on the UK Government to introduce wealth taxes on the richest millionaires and billionaires.
Tax justice campaigners have identified a series of fair tax reforms and loopholes that could be closed to raise additional revenue. They say that a 2% wealth tax alone, applied to assets worth more than £10m, could raise up to £24 billion annually or around £460 million a week while only impacting 0.04% of the population – around 20,000 people.
For illustrative purposes, if the 2% wealth tax on assets over £10 million was introduced now, UK billionaires would still have seen their personal wealth soar by an average of £141 million each – a total of nearly £7.5 billion combined – since this time last year.
The money raised could be used to reduce poverty and inequalities, strengthen public services, including the critical care sector, and boost climate action, instead of padding the pockets of the super-rich while deepening economic, gender and racial inequalities.
Jamie Livingstone, Head of Oxfam Scotland, said:“We all feel it in our bones: it’s indefensible that public spending to support those in poverty and crisis is being slashed, while private wealth is quietly stashed away.
“People in Scotland are crystal clear: they’d rather tax the richest than see cuts to public spending. Yet the UK Government has chosen to snatch £11 billion from the pockets of those who need it most while the same amount has been added to the bloated bank balances of those who need it least in just 12 months.
“It’s time for the UK Government to put fairness first; tax the super-rich and protect people in poverty. The choice is that simple.”
Mark Campbell, entrepreneur and member of Patriotic Millionaires UK, said:“As a millionaire I know the economy is working for a few people like me and working against the vast majority.
“Spending cuts are short-sighted and will only increase the worries of millions of people in the UK who are struggling to put food on the table and heat their homes.
“Meanwhile, the very richest people in our society are watching their wealth grow exponentially. It seems outrageous that the wealth of the richest is taxed at a much lower rate than the income of working people who will bear the brunt of these budget cuts.
“A wealth tax is a very clear alternative. Given that most people want higher taxes on the very richest, and plenty of millionaires – people like me – also want it, what’s stopping the UK Government?”
As part of Tax Justice Scotland, a campaign backed by more than 50 diverse civil society organisations, think tanks, trade unions and academics, Oxfam Scotland is urging the UK and Scottish Governments to use their respective tax powers to fairly raise more money to enable greater investment in key poverty-reducing public services, like care, while combatting inequalities, and rewarding businesses that provide fair and flexible work – including for parents, and particularly women – while paying the real Living Wage.
Oxfam Scotland says the Scottish Government must also use devolved powers to help combat the growing gap between the wealthiest and those struggling to make ends meet, with the richest 10% having 217 times more wealth than the least wealthy 10%, and with record high income inequality.
Wealth inequality is not only deeply unfair, but a barrier to reducing poverty. It exacerbates social and environmental harms, fuels wider inequalities – such as those related to gender and race, and drives a wedge between those with wealth and those without it.
Campaigners are calling on Scottish Ministers to use the devolved tax tools at their disposal, such as landing a fair tax on pollution-spewing private jets using Scotland’s airports and finally replacing the discredited Council Tax with a system to tax property wealth fairly.
Jamie Livingstone added:“Scotland’s political leaders can’t afford to wait for Westminster to make the fair and obvious choice to make the wealthiest pay their share.
“As we approach the 2026 Holyrood election, they would be fool hardy to ignore the public mood. People want to see real progress on fairness. Scotland has powers to tax wealth more fairly to combat runaway inequality and to build a better and greener country, it’s time to use them.”