“Britain deserves a pay rise and Britain is getting a pay rise”

“The Budget today puts security first. The economic security of a country that lives within its means. The financial security of lower taxes and a new National Living Wage.

“The national security of a Britain that defends itself and its values. A plan for working people. One purpose. One policy. One nation. And I commend this Budget to the House.” – Chancellor of the Exchequer George Osborne

Every Chancellor loves a little drama; that opportunity to produce a rabbit from a hat and wrong-foot political opponents and leave them floundering. George Osborne took centre stage today, delivering the first Conservative budget since 1996, and in the finest traditions of vaudeville conjurers he kept something up his sleeve, saving the best ’til last – the big finish.

Yes, there was the expected £12bn cut to welfare – although over a longer time frame – and there were small giveaways here and clawbacks there, nothing too remarkable or unexpected. And then …

“In the last five years we’ve taken the tough choices to drive down our borrowing, make our business taxes competitive and reform welfare.

“It’s because we’ve taken these difficult decisions, and overcome the opposition to them, that Britain is able to afford a pay rise.

Because let me be clear: Britain deserves a pay rise and Britain is getting a pay rise.

I am today introducing a new National Living Wage.”

Now you can call it a new National Living Wage if you want, or just an increase to the National Minimum Wage if you prefer, but whatever you choose to call it, it’s a sizeable hike: more than either Labour or the SNP offered in their respective manifestos, the government has set it to reach £9 an hour by 2020.

Working people aged 25 and over will receive it, starting next April, at the rate of £7.20p.

Along with the slashing back of public expenditure through swingeing cuts to the welfare budget, the setting of a compulsory ‘National Living Wage’ is clearly designed to get the message out that this government intends to make work pay. The announcement delighted the massed Tory ranks, with architect of the benefits reforms Iain Duncan Smith (below) particularly enthusiastic. Rarely has the ‘quiet man’ been quite so animated!

Responding for the Labour Party, acting leader Harriet Harman said: “When you’re in opposition, the temptation is to oppose everything the government does – and believe me, I feel that temptation. But we best serve this country by being a grown-up and constructive opposition.

“So while we will fiercely oppose policies that hit working people, and we will expose policies that are unworkable, where the government comes forward with ideas that are sensible we will be prepared to look at them.”

On Scotland, Mr Osborne said very little: “But what really drives this government, is building up other parts of our United Kingdom, as a balance to London’s strength.

“For Scotland, we’re now delivering – as promised – major devolution of tax and welfare powers.

“The Scottish Government will soon have to answer the question; “you’ve got the powers, when are you going to use them?””

And that was it.

Scotland’s Deputy First Minister John Swinney called the Budget a ‘con trick’ which particularly hits low income households and young people.

He said the announced freeze in working age benefits and cuts to tax credits will see the most vulnerable in our society continue to be hit the hardest whilst the revised minimum wage fails to deliver a real living wage.

Mr Swinney said: “The reality is this budget is an attack on the low paid, the young and those entering the jobs market. This budget is a series of con tricks to try and hide the fact that individual households will now bear the brunt of austerity cuts.

“I support a meaningful living wage paid for by business – one that pays what people need to live, not one that fails to compensate for cuts to valuable tax credits.

“The Chancellor has not even promised to meet the current living wage of £7.85 and under 25’s will face the brunt of cuts but receive no increase in wages.

“As the Resolution Foundation – cited by the Chancellor – make clear the real living wage is based on people receiving tax credits and housing benefit so any new living wage must be far higher to compensate for it. The Chancellor’s con trick does not come close to meeting those costs.

“The Chancellor is cutting from the poor whilst paying out to the rich, he is short changing those on low incomes whilst giving tax breaks to the better off.

“There has been no easing up on austerity – he has simply shifted some of the balance from public services to the public themselves. The Scottish Government has faced a 10% cut in our overall budget for the last five years and the Chancellor today said deficit reduction would take place at the same pace in the future. Overall the scale of austerity being imposed by this UK Government remains unchanged.

“Despite revising down productivity and export figures in each of the next four years there was little in this budget to boost productivity or to set out a strategy for growth.

“The reality is that in delivering his emergency budget the Chancellor has simply exacerbated the emergency situation faced by many on low pay and low incomes.”

The Budget in summary:

1. Introducing a new National Living Wage of over £9 an hour by 2020

From April 2016, a new National Living Wage of £7.20 an hour for the over 25s will be introduced. This will rise to over £9 an hour by 2020.

2. The government will run a surplus in 2019-20

The deficit will be reduced by around 1% of GDP (the value of the economy as a whole) on average in each year, which is the same pace as over the last 5 years. This means a surplus (where more tax is raised than is spent) will be achieved in 2019-20, and debt will fall in every year. Included in this is:

£12 billion by 2019-20 through welfare reforms
£5 billion by 2019-20 from measures to tackle tax avoidance, planning, evasion, compliance, and imbalances in the tax system

Plans for the remaining savings will be set out in the autumn following the spending review.

3. The tax-free Personal Allowance will be increased from £10,600 in 2015-16 to £11,000 in April 2016

The tax-free Personal Allowance – the amount people earn before they have to start paying Income Tax – will increase to £11,000 in 2016-17.

Increases to the Personal Allowance since 2010, when it was £6,475, mean that a typical taxpayer will be £905 a year better off in 2016-17.

The government has an ambition to increase the Personal Allowance to £12,500 by 2020, and a law will be introduced so that once it reaches this level, people working 30 hours a week on the National Minimum Wage won’t pay Income Tax at all.

4. Protecting defence spending

The Ministry of Defence’s budget will rise by 0.5% (above inflation) each year to 2020-21. Up to an additional £1.5 billion a year will also be available by 2020-21 to fund increased spending on the military and intelligence agencies.

The government will meet the NATO pledge to spend 2% of national income on defence every year of this decade.

5. Reforming the welfare system to make it more affordable

The welfare system will be reformed to make it fairer for taxpayers who pay for it, while continuing to support the most vulnerable. Changes include:

working-age benefits, including tax credits and Local Housing Allowance, will be frozen for 4 years from 2016-17 (this doesn’t include Maternity Allowance, maternity pay, paternity pay and sick pay)
the household benefit cap will be reduced to £20,000 (£23,000 in London)
support through Child Tax Credit will be limited to 2 children for children born from April 2017
those aged 18 to 21 who are on Universal Credit will have to apply for an apprenticeship or traineeship, gain work-based skills, or go on a work placement 6 months after the start of their claim
rents for social housing will be reduced by 1% a year for 4 years, and tenants on higher incomes (over £40,000 in London and over £30,000 outside London) will be required to pay market rate, or near market rate, rents.

6. Reforming Dividend Tax

The dividend tax credit (which reduces the amount of tax paid on income from shares) will be replaced by a new £5,000 tax-free dividend allowance for all taxpayers from April 2016. Tax rates on dividend income will be increased.

This simpler system will mean that only those with significant dividend income will pay more tax. Investors with modest income from shares will see either a tax cut or no change in the amount of tax they owe.

7. Taking the family home out of Inheritance Tax

Currently, Inheritance Tax is charged at 40% on estates over the tax-free allowance of £325,000 per person. Married couples and civil partners can pass any unused allowance on to one another.

From April 2017, each individual will be offered a family home allowance so they can pass their home on to their children or grandchildren tax-free after their death. This will be phased in from 2017-18.

The family home allowance will be added to the existing £325,000 Inheritance Tax threshold, meaning the total tax-free allowance for a surviving spouse or civil partner will be up to £1 million in 2020-21.

The allowance will be gradually withdrawn for estates worth more than £2 million.

8. The amount people with an income of more than £150,000 can pay tax-free into a pension will be reduced

Most people can contribute up to £40,000 a year to their pension tax-free. From April 2016, this amount will be reduced for individuals with incomes of over £150,000, including pension contributions.

9. The higher rate threshold will increase from £42,385 in 2015-16 to £43,000 in 2016-17

The amount people will have to earn before they pay tax at 40% will increase from £42,385 in 2015-16 to £43,000 in 2016-17.

10. Corporation Tax will be cut to 19% in 2017 and 18% in 2020

The main rate of Corporation Tax has already been cut from 28% in 2010 to 20%, in order to boost UK competitiveness. It will now fall further, from 20% to 19% in 2017, and then to 18% in 2020, benefiting over a million businesses.

11. The annual investment allowance will be set at its highest ever permanent level at £200,000

The annual investment allowance, which has previously been increased temporarily, will be set permanently at £200,000 from January 2016.

The allowance means businesses can deduct the full value of certain items, including equipment and machinery, up to a total value of £200,000 from their profits before tax. This helps them with cash flow because it means the full tax relief is given in the year items are purchased, rather than over several years.

This permanent increase will help businesses plan their spending on longer-term investments.

12. The Employment Allowance will increase by a further £1,000 to £3,000

Businesses will have their employer National Insurance bill cut by another £1,000 from April 2016, as the Employment Allowance rises from £2,000 to £3,000. The Employment Allowance gives businesses and charities a cut in the employer National Insurance they pay.

This means, next year, businesses will be able to employ 4 people full time on the National Living Wage and pay no National Insurance at all.

13. The standard rate of Insurance Premium Tax will increase to 9.5%

From November 2015 the standard rate of Insurance Premium Tax will be increased from 6% to 9.5%. Households’ insurance prices are falling and the standard rate remains lower than that of many other EU countries.

14. Clamping down on nuisance calls from claims management companies

The amount that can be charged by claims management companies – such as those that encourage claims for payment protection insurance (PPI) or personal injury insurance – will be capped, reducing nuisance calls to potential customers.

15. Restricting tax relief for wealthier landlords

Currently, individual landlords can deduct their costs – including mortgage interest – from their profits before they pay tax, giving them an advantage over other home buyers. Wealthier landlords receive tax relief at 40% and 45%. This tax relief will be restricted to 20% for all individuals by April 2020.

In addition, from April 2016, the ‘wear and tear allowance’, which allows landlords to reduce the tax they pay (regardless of whether they replace furnishings in their property) will also be replaced by a new system that only allows them to get tax relief when they replace furnishings.

16. Ending permanent non-dom status

Non-domiciled individuals (non-doms) live in the UK but consider their permanent home to be elsewhere. The UK rules allow non-doms to pay UK tax on their offshore income only when they bring it into the UK.

Permanent non-dom status will be abolished from April 2017. From that date, anyone who’s been resident in the UK for 15 of the past 20 years will be considered UK-domiciled for tax purposes.

17. Reforming the way banks are taxed

Following increasing bank profits, and to reflect changes in bank regulation, the government is:

introducing a new 8% tax on banking sector profits from January 2016
introducing a phased reduction in the rate of the Bank Levy (which is charged on banks’ balance sheets) from 0.21% to 0.1% between 2016 and 2021
excluding UK banks’ overseas subsidiaries from the Bank Levy from January 2021

18. 3 million new apprenticeships

3 million new apprenticeships will be created by 2020, funded by a levy on large employers. Firms that are committed to training will be able to get back more than they put in.

19. £30 million of funding for Transport for the North

Cities and counties in the North will be given even more control over local transport. Transport for the North (TfN) will be supported by £30 million in funding over 3 years, and will have more responsibility for setting out policy and investments.

20. 30 hours of free childcare for 3 and 4 year olds

From September 2017, working families with 3 and 4 year olds will receive 30 hours of free childcare – an increase from the 15 hours they’re currently offered.

21. Student maintenance grants will be replaced with loans

From the 2016-17 academic year, cash support for new students will increase by £766 to £8,200 a year, the highest level ever for students from low-income households. New maintenance loan support will replace student grants. Loans will be paid back only when graduates earn above £21,000 a year.

22. Road tax will be reformed and the money raised spent on the road network

The road tax system will be revised to make it fairer and sustainable. From 2017, there will be a flat rate of £140 for most cars, except in the first year when tax will remain linked to the CO2 emissions that cars produce. Electric cars won’t pay any road tax at all and the most expensive cars will pay more.

Existing cars won’t be affected – no one will pay more for a car that they already own. The money brought in from road tax in England will be spent on England’s roads from 2020.

The government will extend the deadline for the first MOT of new cars and motorcycles from 3 years to 4 years.

23. Public sector pay will increase by 1%

Public sector pay will increase by 1% a year for 4 years from 2016-17.

24. Making sure individuals and businesses pay what they owe

The government will continue to clamp down on tax avoidance, planning and evasion, as well as increasing resources for HM Revenue and Customs (HMRC) so they can make sure people pay the tax that’s due. This includes:

extra investment between now and 2020 for HMRC’s work on evasion and non-compliance
tripling the number of criminal investigations HMRC can undertake into complex tax crime, concentrating on wealthy individuals and companies
allowing HMRC to access more data to identify businesses that aren’t declaring or paying tax
clamping down on the organised crime gangs behind the illicit trade in tobacco and alcohol
stopping investment fund managers from using tax loopholes to avoid paying the correct amount of Capital Gains Tax on their profits from the fund (this is known as carried interest)
making sure international companies pay tax on profits diverted from the UK
introducing a ‘general anti-abuse rule’ penalty and tough new measures for serial avoiders, including publishing the names of people who repeatedly use failed tax avoidance schemes

Sturgeon: UK Budget will hit Scotland’s poorest children

Scottish Government figures give ‘frightening indication’ of potential impact of expected tax credit cuts

Expected cuts to the value of tax credits by the Westminster Government in tomorrow’s budget will impact most on the poorest children in Scotland, First Minister Nicola Sturgeon said this morning.

Figures due to be published tomorrow (Wednesday) by Scottish Government analysts show that, if the Chancellor cuts child tax credits back to 2003 levels in real terms as has been reported, the poorest 20 per cent of Scottish families with children will lose on average nearly 8 per cent of their income – a total impact of £425 million lost across the country – with 60% of Scottish children affected by the changes.

First Minister Nicola Sturgeon described the research as “a frightening indication” of the impact of the expected cuts and warned that the UK Government’s approach will “hit Scotland’s poorest children and families hard”.

The First Minister said: “The UK Government has already warned that tomorrow’s budget will continue their austerity approach, which we are clear is not just unfair but damaging to the economy – undermining attempts to stimulate growth.

“Tax credits form an important part of the tax and welfare system, designed particularly to support working families on low incomes.

“More than 500,000 children in Scotland benefit from tax credits. Two-thirds of the £2 billion expenditure on tax credits in 2013-14 went to low-income working families with children and only 5 per cent to households without children.

“If, as we expect, the UK Government targets tax credits for cuts in tomorrow’s budget, it will hit Scotland’s poorest children and families hard. It is a frightening indication of the potential impact of the expected cuts in tomorrow’s UK budget.”

The First Minister went on to describe the austerity approach as ‘economically counter-productive’:

“We want to support people to get into work and to stay in work and the tax credit system provides important practical help to families on low pay.

“These are people who are in jobs and often working very hard for relatively little pay. It is unfair that their children are the people made to pay for the mistakes of the austerity approach – not to mention economically counter-productive.

“When people are in work, they spend their wages in the local economy, leading to a virtuous circle. Cutting child tax credits back to 2003 levels, as we expect the UK Government to do tomorrow, will risk threatening Scotland’s economic recovery.

“The deficit needs to be reduced but this should be done in a more gradual manner with more resources allocated to a programme of additional investment in our economy, rather than risking a financial body-blow to hard-working parents and their children.”

MP ‘distressed’ by report on impact of benefits sanctions

‘It is time to make this system fit for purpose – and that should be to help people recover to better mental health.’ – Jo Anderson, SAMH

Scotland’s leading mental health charity, SAMH (Scottish Association for Mental Health) welcomed Joanna Cherry MP to their Redhall service to help launch a new report last week.

The ‘Fir for Purpose’ report documents the negative impact the welfare system has had on 15 people participating in SAMH’s therapeutic gardening programme. The report calls for an end to benefit sanctions which put undue stress on people with mental health problems.

Last year, one of the participants highlighted the negative impact this had on their health:

‘Well, last year my psychiatrist was reducing my medication. When I got this letter from the DWP… I had to stop that and increase my medication again… Suicidal thoughts are massively increased. Urges for self-harm massively increased. Basically, when it comes to getting reassessed, every other part of my life kind of shuts down because it just has a really bad effect on me. It’s almost as if they were to design a process to make it as difficult as possible to stay alive, this is exactly how they would do it.’

The key findings of the report are:

There was a lack of understanding about mental health throughout the assessment process, with those responsible appearing not to be well trained or experienced in mental health.
Those who experienced repeated reassessments or challenging a poor decision found the experience very stressful, which can have an adverse effect of an individual’s recovery.
SAMH is calling for the Scottish Government to ensure that when it takes over the Work Choice programme for disabled people in 2017, it also takes the opportunity to incorporate tailored support for individuals in order to help more people into work and stay mentally well.

Joanna Cherry MP was elected to represent Edinburgh South West in May. She is a QC and recently co-authored the textbook “Mental Health and Scots Law in Practice’. The new local MP said: “The findings from SAMH’s Fit for Purpose report are quite distressing and highlight the real need for a review of how Work Capability Assessments are conducted and monitored effectively.

“The Redhall service offers a great environment for people to receive training and learn to cope with challenges while recovering from enduring mental health problems. I have met some very inspirational people who have overcome huge obstacles in their life and it is important that both the UK and Scottish Government work together and ensure nothing stands in the way of each person’s recovery.”

Jo Anderson, Director for External Affairs at SAMH said: “We are very grateful to Joanna Cherry for supporting our calls for a review to the Work Capability Assessment, with many of those interviewed stating that their mental health had deteriorated as a result of these changes.

“The majority of people with mental health problems continue to be placed on the Work Programme as opposed to the more successful Work Choice, which offers specialised employment support to people with disabilities and other health issues.

“It is time to make this system fit for purpose – and that should be to help people recover to better mental health.”

If you would like to download a copy of SAMH’s Fit for Purpose report, please visit: www.samh.org.uk/our-work/public-affairs/financewelfare

Charles Kennedy: a wee giant

Former Lib Dem leader dies aged 55

Lib Dem politician Charles Kennedy has died, his family has announced. He was only 55. Kennedy was one of a rare breed – that rare phenomenon, a popular politician – and colleagues and opponents have been swift to praise the likeable wee guy known to many as ‘Chat Show Charlie’.

A statement released on behalf of his family this morning said: “It is with great sadness, and an enormous sense of shock, that we announce the death of Charles Kennedy. Charles died at home in Fort William yesterday. He was 55. We are obviously devastated at the loss.

“Charles was a fine man, a talented politician, and a loving father to his young son. We ask therefore that the privacy of his family is respected in the coming days.

“There will be a post-mortem and we will issue a further statement when funeral arrangements are made.”

Scotland’s First Minister Nicola Sturgeon tweeted earlier this morning: “Sad beyond words to hear the news about Charlie Kennedy. A lovely man and one of the most talented politicians of his time. Gone too soon.’

Kennedy’s predecessor as Lib Dem party leader Paddy Ashdown remarked: “In a political age not overburdened with gaiety and good sense, he brought us wit, charm, judgement, principle and decency.”

Nick Clegg, who resigned as Liberal Democrat leader following last month’s general election, said: “Charles devoted his life to public service, yet he had an unusual gift for speaking about politics with humour and humility which touched people well beyond the world of politics.

“He was one of the most gentle and unflappable politicians I have ever known, yet he was immensely courageous too not least when he spoke for the country against the invasion of Iraq.”

A ‘One Nation’ Queen’s Speech?

‘The Queen’s Speech 2015 will be a clear programme for working people, social justice and bringing our country together’

Ahead of today’s Queen’s Speech Prime Minister David Cameron said:

“Behind this Queen’s Speech is a clear vision for what our country can be. A country of security and opportunity for everyone, at every stage of life.

“That is our ambition. To build a country where whoever you are and wherever you live you can have the chance of a good education, a decent job, a home of your own and the peace of mind that comes from being able to raise a family and enjoy a secure retirement.

“A country that backs those who work hard and do the right thing.

“This is the Queen’s Speech for working people from a ‘one nation’ government that will bring our country together.

“We have a mandate from the British people, a clear manifesto and the instruction to deliver. And we will not waste a single moment in getting on with the task.”

First Minister meets Prime Minister – no meeting of minds but progress made

First post-election talks are ‘constructive and helpful’

More powers for the Scottish Parliament and tackling austerity were on the agenda as First Minister Nicola Sturgeon met Prime Minister David Cameron at Bute House yesterday.

During their first face-to-face talks since the general election, the First Minister welcomed a commitment by the Prime Minister to look at proposals from the Scottish Government to extend Holyrood’s power beyond the plans outlined in the Smith Commission.

Ms Sturgeon also welcomed the Prime Minister’s agreement that legislation currently being drafted to take forward further devolution would implement in full the Smith Commission proposals and also take account of the report published by the Scottish Parliament’s Devolution Committee earlier this week.

The discussions, described by the First Minister as “constructive and helpful”, also covered her desire to tackle austerity, with further proposals on how this could be achieved within the UK Government’s own fiscal mandate now to be submitted by the Scottish Government and considered by the Prime Minister in due course.

To take forward these points, the First Minister and Prime Minister also agreed to much closer contact between their respective governments, with a commitment to increasing the number of bilateral meetings between the pair.

First Minister Nicola Sturgeon said: “I was pleased to welcome the Prime Minister to Bute House for what were constructive and helpful talks on a range of issues following the outcome of the UK general election.

“During the meeting, we had a productive discussion about the Smith Commission proposals and where we might go beyond them. From that, two things of importance were agreed. Firstly, there was a commitment from the Prime Minister that the legislation being drafted will fully implement the Smith Commission proposals and take account of the conclusions of the Holyrood committee report that was published yesterday.

“Secondly, the Prime Minister agreed that he would look at proposals the Scottish Government will bring forward on how we go beyond the Smith Commission in various important areas. There was no agreement on the substance of that, but the Prime Minister has said he will consider our proposals and there will be a meeting, in the first instance, between the Deputy First Minister and the Secretary of State for Scotland to look at how we take that further forward.”

The First Minister continued: “The Prime Minister and I have agreed to meet more regularly, which is a good step forward. We have also agreed to much closer contact between Ministers in the Scottish and UK governments to discuss issues of common interest and policies that impact on Scotland at a much earlier stage – that’s all very positive.

“David Cameron and I are a world apart politically but, where we can, I’m determined that we do business in the interest of people in Scotland and across the UK and I’m determined to have a constructive and business-like relationship.

“I hope that the Prime Minister can now show he can respond and deliver a better deal for Scotland, with an empowered Scottish Parliament with the powers over business taxes and employment law, the minimum wage and welfare that enables us to grow our economy, get more people into jobs, and lift people out of poverty. Because, ultimately, that is what this process is all about.”

The First Minister confirmed that discussions had also covered austerity and public spending across the UK. She said: “The Prime Minister has a fiscal mandate, but even within that that I believe there is enough flexibility to ease the pain of austerity, invest in the things that matter while still getting the debt and deficit down. We have agreed to send our analysis and proposals to the UK Government and he has agreed to look at them. I have a duty as First Minister of Scotland to stand up for the things I believe the people of Scotland want and I will not shy away from doing that.”The visit came within a week of the election result, and the Westminster government says this underlines the Prime Minister’s commitment to renewing and refreshing the United Kingdom and the importance he places on the respect agenda.

Speaking before the meeting, Prime Minister David Cameron said: “I am here today to underline my commitment to our United Kingdom and Scotland’s important place within it.

“That means remaining true to the promise we made to implement the all-party Smith agreement to make Scotland one of the most accountable and powerful devolved parliaments in the world.

“It also means recognising those things which unite us in these islands: the achievements we have made together, the institutions we have built together, our great social history, the common economic challenges we face today, and the strength which comes from pulling together for the common good in the future. This is our one nation agenda in action.

“Scotland has two governments and it is the duty of the First Minister and myself to respect each other’s roles and responsibilities and to work together for the benefit of all the people of Scotland.

“As more powers are devolved to Scotland, it is time to move beyond the debate about processes and focus on those bread and butter issues that affect every family in our United Kingdom – jobs, homes, good schools and strong public services, and dignity and respect in retirement. These are the building blocks we need to provide a brighter future for people in every part of our country.”

Murphy: ‘Overwhelmed by history and by circumstance’

‘We will be again the change that working people need’ – Scottish Labour leader Jim Murphy

Scottish Labour leader Jim Murphy has responded to his party’s near wipeout in yesterday’s general election by promising to fight to make Labour the natural voice for working people once again.

Time is not on his side. The party that has dominated the Scottish political scene for so long – in the industrial heartlands it’s said they used to weigh the Labour votes, not count them – has been reduced to one solitary MP: and the Scottish Parliamentary Elections are just a year away.

Mr Murphy, who lost his own East Renfrewshire seat last night, divides opinion both inside and outside the Labour Party, but it will come as no surprise to many that he’s decided to tough it out while Ed Miliband, Nick Clegg and Nigel Farage (perhaps!) have called it a day.

He’s a fighter is oor Jim, and in a typically combative message to members said Labour will bounce back after having been ‘overwhelmed by history and by circumstance’:

Firstly, thank you.

Thousands of members and activists worked so hard for Labour across Scotland and across the UK for a Labour Government. Your dedication is extraordinary.

I want to thank the 700,000 people across Scotland who voted Labour yesterday. Those people voted for the most radical Scottish Labour manifesto in a generation.

We are coming to terms with a dreadful night for our party.

Far worse than that we have the realisation of a terrible day for Scotland, and for working class people across the UK, as David Cameron forms another government.

The friends and colleagues lost have been faithful servants to our party and forceful advocates for their constituents.

But this isn’t about us. It isn’t about individual’s careers.

Because while we have lost seats the thing that hurts most is the loss of hope that will be felt as we face another five years of a government totally lacking in vision and compassion.

I didn’t stand for leader out of a sense of personal ambition. I stood because I knew that Scottish Labour after losing in 2007 and 2011 and after the emotional hangover of the referendum faced the biggest challenge in our 127 year history.

As Leader I wanted to take responsibility for meeting these challenges and I still do.

Our campaign was energetic and professional on the ground.

But we have been overwhelmed by history and by circumstance. We make no excuses. A party can never blame the electorate.

Scotland deserves a stronger Scottish Labour Party. Working class people need the party back on its feet.

So where now for Scottish Labour?

We have to start from our strengths. And here the success of the SNP strategy offers us a guide on how to move forward.

‘We have been beaten by a party who claimed our heritage, clothed themselves in our values, and copied many of our policies.

We will take confidence in the principles behind our policies and we will renew and retarget them for the Scottish election.

With less than a year to the Scottish Parliament elections. We cannot afford another period of introspection.

People need Labour now.

They need a strong opposition.

They need us to be what we have always been at our best: a voice for working people.

This morning as the sun rose we were hurting.

But in a morning like this, before too long.

We will bounce back.

We will again be the change that working people need.

Babies will receive Meningitis B vaccine ‘as quickly as possible’

Vaccine to be part of Scottish childhood immunisation programme

All infants in the UK are to be offered a vaccination against meningitis B following a deal struck between the Westminster government and drug manufacturing giant GlaxoSmithKline. The agreement was also reached on behalf of the Scottish Government and Scotland’s health secretary Shona Robison said the vaccine will be offered here ‘as quickly as possible’.

The NHS will now introduce the vaccine, Bexsero, to the immunisation programme for infants. Vaccination will prevent the life-threatening strain of meningitis to all infants – around 1,200 people, mainly babies and children, get meningitis caused by the meningococcal group B bacteria each year in the UK, with around one in 10 dying from the infection.

The vaccination will be given in three doses at two, four and 12 months, with all babies in Scotland aged two months at the point of introduction being eligible. The Joint Committee on Vaccination and Immunisation (JCVI) has also advised that when the programme starts there should be a one-off, catch-up programme for babies aged three and four months of age.

Health Secretary Shona Robison said: “The Scottish Government has been consistent in its support for the introduction of the Meningitis B vaccine, Bexsero. We will now work to roll out the vaccination programme as quickly as possible.

“The Meningitis B vaccine will now form part of the routine childhood immunisation programme in Scotland, underlining our commitment to ensuring the health and wellbeing of our children.

“Meningitis B is life-threatening and can affect people of any age, but is most common in babies and young children. By offering this vaccine as part of the routine programme we will be able prevent this and save lives. This disease can be devastating for children and their families and I’m very pleased we can now take the necessary steps to tackle its effects.”

Lazarowicz: justice for Thalidomide victims plea

‘The German government surely owes a moral debt to those who have suffered’ – Mark Lazarowicz MP

Mark Lazarowicz MP is among a number of Labour MPs to have written to the German Chancellor, Angela Merkel, calling for the German Government to engage in dialogue with representatives from the Thalidomide Trust and to look to compensate victims who are now in their 50s so that their increasing health needs can be met.

The drug was manufactured by a German company, Grünenthal, and was prescribed in the UK mainly for use by pregnant women to treat morning sickness between 1958 and 1961 but was then withdrawn after concern over side-effects.

It is now clear that the manufacturer had prior knowledge of the dangers of Thalidomide which were ignored – and those people affected and their families should have been entitled to a much larger settlement than they agreed to at the time.

The North and Leith MP said: “I am regularly contacted by people here in Edinburgh whose lives have been affected by Thalidomide – the compensation paid to Thalidomide victims in the UK remains inadequate, yet their health needs are complex and increasing as they and their families age.

“The German government surely owes a moral debt to those who have suffered as a result – if families had known of the prior knowledge that existed they could have pressed for much higher compensation.

“I call on the German government to sit down with the Thalidomide Trust and agree to compensation that will allow victims’ health needs to be met as they get older and bring them justice at last.”

Around 40% of babies affected died at or shortly after birth whilst over 10,000 people worldwide were born with a disability as a result. The Thalidomide Trust currently supports 468 survivors in the UK, over 50 of whom are in Scotland.

Britain: The Comeback Country?

“Never has the gap between the chancellor’s rhetoric and the reality of people’s lives been greater” – Labour leader Ed Miliband

“Mr Deputy Speaker, five years ago I had to present to this House an Emergency Budget. Today I present the Budget of an economy stronger in every way from the one we inherited. The Budget of an economy taking another big step from austerity to prosperity.

We cut the deficit – and confidence is returning.

We limited spending, made work pay, backed business – and growth is returning.

We gave people control over their savings and helped people own their own homes – and optimism is returning.

We have provided clear decisive economic leadership – and from the depths Britain is returning.

The share of national income taken up by debt – falling.

The deficit down.

Growth up.

Jobs up.

Living standards on the rise.

Britain on the rise.

This is the Budget for Britain. The Comeback Country.”

So concluded Chancellor George Osbourne at the end of yesterday’s budget statement. Mr Osborne painted a picture of Great Britain brought back from the abyss by a resolute government’s astute economic management. Yes, there were a few pre-election sweeteners in there too but in the main this was a steady-as-you-go budget with one clear message to voters – the job isn’t finished so don’t let Labour loose on the economy; they will wreck the ongoing recovery and undo all the good work of the last five years.

Welcoming the statement Scottish Secretary Alsitair Carmichael said the budget will bring in a range of measures which will support key Scottish business sectors, workers and families across Scotland.

The Chancellor announced significant changes to the tax system which will see 2.33 million people in Scotland take advantage of more generous personal allowances, benefiting by an average of £555 in real terms.

The allowance will increase to £10,800 in 2016-17 and to £11,000 in 2017-18. This means people in Scotland will be able to keep more of their pay before being taxed. This also means 287,000 people in Scotland will have been taken out of paying income tax altogether.

The Scottish Government will benefit from additional funding of £31 million in 2015-16 through Barnett consequentials. This means it has seen additional spending power of £2.7 billion since 2010.

This Budget also delivers a substantial package of support for important Scottish industries including the oil and gas sector, the Scotch whisky industry and the video games industry, much of which is centred in Dundee, will benefit from a £4m support package.

Vehicle owners will also benefit from the cancellation of the September 2015 fuel duty increase. By the end of 2015-16, a typical motorist will have saved £675, a small business with a van £1,400 and a haulier £21,000.

Mr Carmichael said: “This Budget is another positive step forward for Scotland in the wider journey to economic stability which has taken place over the past five years.

It gets the important things right, with a focus on helping create a fairer and more generous personal tax system which will benefit thousands of people in Scotland and giving a helping hand to some of our key business sectors, securing jobs and prosperity for the future.

This progress has been hard-won by this Government and builds a strong base for Scotland’s economic future as part of the UK.”

It wasn’t what was announced, it was the things that weren’t mentioned that worry government critics. Labour leader Ed Miliband said Osborne’s budget statement made ‘no mention of investment in our National Health Service and our vital public services’ and added: “Never has the gap between the chancellor’s rhetoric and the reality of people’s lives been greater.”

Mr Miliband said: “Mr Deputy Speaker, never has the gap between the Chancellor’s rhetoric and the reality of people’s lives been greater than today. This is a Budget people won’t believe from a government that is not on their side. Because of their record, because of their instincts, because of their plans for the future and because of a Budget, most extraordinarily, that had no mention of investment in our National Health Service and our vital public services. It’s a budget people won’t believe from a government they don’t trust.”

He added that the Tories also plan to cut NHS spending – ‘That is the secret plan that dare not speak its name today.’

The Scottish government’s reaction was also less then appreciative. Deputy First Minister John Swinney said: “The Chancellor had every opportunity to end the damaging cuts from the UK Government and has instead turned his back on investment in public services.

“We face the same £30 billion of unfair and unnecessary cuts today as we did yesterday. That is despite the clear admission from the Chancellor that there is headroom to invest to protect our public services.

“If we are to believe the Chancellor that the economy is making such a successful recovery, then there is no justification for the destructive cuts that impact on the most vulnerable in society. That tells you everything you need to know about the values and priorities of this Chancellor.”

Commenting on the ‘U-turn’ on the North Sea fiscal regime, Mr Swinney said:

“Measures to safeguard the North Sea are a step in the right direction for our oil and gas sector. The Scottish Government has been calling for such measures, along with the industry, for some time. Today’s measures are a glaring admission by the Chancellor that his policy for the North Sea has been wrong and the poor stewardship by the UK Government has had a detrimental impact on our oil and gas sector and the many people who work in the industry. It has taken the Chancellor four years to admit the tax rise he implemented in 2011 was a mistake. A heavy price has been paid for this mismanagement.

“Today I cautiously welcome the U-turn by the UK Government to take action on the future of the North Sea. We will study the proposals in detail. It is now essential that work is focussed on boosting investment and growth in the North Sea sector.”

The Scottish Greens also criticised Mr Osborne’s ‘fantasy economy’. They said the Chancellor’s rosy depiction of the economy is not being felt on the ground, with low wages, ins, inecure employment and welfare sanctions continuing to reinforce poverty and inequality in the UK.

The Greens are leading a debate in Holyrood today on in-work poverty, and are campaigning for a £10 minimum wage by 2020. Patrick Harvie, Green MSP for Glasgow, said: “This is not a plan to make the UK a fairer or more sustainable society. Instead of an eye-watering £1.3 billion subsidy for fossil fuels, the Chancellor could have provided a gigantic boost to locally-owned clean energy or backed the return of our railways to public hands.

“This Coalition has delivered five years of hacking away at the public good and at the foundations of our welfare state. It’s been a devastating and costly campaign by an elite in Westminster and the prospect of another round should terrify everyone who is fighting for social justice in this country.”

Alison Johnstone, Green MSP for Lothian, said: “The Westminster coalition try to paint a rosy picture but what they describe will seem to many like a fantasy economy, far removed from the reality of rising rents, insecure low paid work and the misery of welfare cuts. The Greens want to see a £10 minimum wage and the small rises announced today are completely inadequate in a world of extreme high pay at the top.”

Wednesday was show day, today is the day the boffins scrutinise the Budget in fine detail. I wonder what they’ll discover as they pick through the bones?