Budget is ‘last chance to change flawed economic policy’

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

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

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

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

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

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

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

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

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

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

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

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

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

Lazarowicz: time for tough action on tax dodgers

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

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

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

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

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

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

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

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

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

Food bank fear factor: Holyrood committee ‘surprised and saddened’

‘It is a sad state of affairs when vulnerable people are frightened to engage with the very system that is supposed to offer them support and care.’ – Michael McMahon MSP

Evidence that shows the link between the UK Government’s welfare reform and an increase in the use of food banks has been sent to Scotland Office Minister David Mundell MP by the Scottish Parliament’s Welfare Reform Committee.

This follows a call from Mr Mundell to show him evidence of the impact of these policies after he expressed doubt that an increase in food bank use was as a direct result of welfare reform.

Much of this evidence has now been forwarded to UK Ministers and the Department of Work and Pensions – but many benefit claimants declined to send in their cases for fear that they might be subject to unfair treatment and reprisals from the DWP if their identity is revealed.

Committee Convener Michael McMahon MSP said: “The Welfare Reform Committee has amassed a growing volume of evidence documenting the impact of welfare reform on Scotland’s communities. We have now sent a further batch of evidence to Mr Mundell and the DWP. However, what we discovered during the course of our enquiries has surprised and saddened us. It is a sad state of affairs when vulnerable people are frightened to engage with the very system that is supposed to offer them support and care.”

Deputy Convener, Clare Adamson MSP said: “UK Government ministers continue to turn a blind eye to the appalling impact that their welfare policies are having on some of the most vulnerable members of society. We have now provided Mr Mundell and the DWP with irrefutable evidence that benefits cuts and sanctions are driving people in ever greater numbers to seek the assistance of food banks and other charities.”

The Background:

Committee’s letter to Rt Hon David Mundell MP.
David Mundell MP, Parliamentary Under Secretary of State for Scotland, gave evidence to the Committee on 3 February 2015 link to official report.
The Committee first evidenced the link between welfare reform and food bank use in its report, published in June 2014.
The Committee has submitted a file of evidence to Mr Mundell and the DWP. To protect identities, this information is not being published. The Committee received evidence from a number of housing and third sector organisations acting on behalf of their clients, and MSPs on the Committee also brought forward case studies involving their constituents. Evidence includes benefits recipients who have been sanctioned and individuals whose benefits payments has been subject to delay, all of which has led to an increased demand on food bank services.

May Days, May Days: VE Day commemoration plans announced

William Hague, Leader of the House of Commons, has announced three days of commemorations to mark the 70th anniversary of Victory in Europe Day (VE Day 70) this summer.

The plans include events across the UK to mark the 70th anniversary of the end of the Second World War in Europe. Events will range from a parade, a service of thanksgiving and a star-studded concert in central London, to street parties around the UK.

Mr Hague, Leader of the House of Commons, said: “I am delighted to announce three days of celebrations, which will pay fitting tribute to those who did so much to defend this country and ensure victory in Europe.

“It is right that we take time to reflect on the sacrifices made, not just by those in the Armed Forces, but by civilians such as Land Girls and those in Reserved Occupations and make sure that the whole country has the chance to take part in commemorating this momentous anniversary and remembering those who gave so much for our freedom.”

The celebrations in London will be echoed by other events across the country to mark VE Day 70 with local authorities and communities encouraged to participate.

They will celebrate with members of their communities who contributed to the war effort throughout the Second World War. The Royal British Legion, as the national custodian of Remembrance, will act as the government’s key partner in leading the nation in marking the commemoration, including hosting a major reception for 2,000 veterans in St James’s Park.

Vice Admiral Peter Wilkinson CB CVO, National President of the Royal British Legion said: “We are honoured to play our part in helping the nation mark 70 years since the end of the Second World War in Europe. The Legion has a responsibility to help the memories of those of who have fought and died in our nation’s Armed Forces live on for future generations.

“The commemoration of this conflict, still in living memory, gives us the opportunity to salute the Second World War generation.We hope that all communities will use the VE Day 70 commemorations to thank them and celebrate the role they played in our nation’s history.”

Eric Goldrein, 94, from Hale Village, Liverpool, served with the Royal Artillery during the Second World War and was in Italy when the news came through that the war in Europe was over.

“We celebrated in a field, the Signallers set up speakers playing music and the locals came out and joined in too, happy that the war was finally over. I heard about the street parties back home and I’m looking forward to being part of these 70th Anniversary celebrations.”

Friday 8 May (VE DAY)

VE Day itself (Friday 8 May) will be a day of remembrance. A service of remembrance will be held at The Cenotaph, including a national two minute silence at 3pm, marking the moment Winston Churchill broadcast his historic speech (below) formally announcing the end of the war.

My dear friends, this is your hour. This is not victory of a party or of any class. It’s a victory of the great British nation as a whole. We were the first, in this ancient island, to draw the sword against tyranny. After a while we were left all alone against the most tremendous military power that has been seen. We were all alone for a whole year.

There we stood, alone. Did anyone want to give in? [The crowd shouted “No.”] Were we down-hearted? [“No!”] The lights went out and the bombs came down. But every man, woman and child in the country had no thought of quitting the struggle. London can take it. So we came back after long months from the jaws of death, out of the mouth of hell, while all the world wondered. When shall the reputation and faith of this generation of English men and women fail? I say that in the long years to come not only will the people of this island but of the world, wherever the bird of freedom chirps in human hearts, look back to what we’ve done and they will say “do not despair, do not yield to violence and tyranny, march straightforward and die if need be-unconquered.” Now we have emerged from one deadly struggle – a terrible foe has been cast on the ground and awaits our judgment and our mercy.

But there is another foe who occupies large portions of the British Empire, a foe stained with cruelty and greed-the Japanese. I rejoice we can all take a night off today and another day tomorrow. Tomorrow our great Russian allies will also be celebrating victory and after that we must begin the task of rebuilding our hearth and homes, doing our utmost to make this country a land in which all have a chance, in which all have a duty, and we must turn ourselves to fulfill our duty to our own countrymen, and to our gallant allies of the United States who were so foully and treacherously attacked by Japan.

We will go hand and hand with them. Even if it is a hard struggle we will not be the ones who will fail.

The Department for Education will be encouraging schools across the country to observe the 2 minute silence and to celebrate and commemorate in their own way – for example, by reading out Churchill’s historic speech, holding special VE Day-themed assemblies or organising tea parties.

In the evening a chain of over 100 beacons will be lit across the UK. Local communities that have already made plans for the day include Great Yarmouth, Island of Unst, Craig-Y-Dorth, Monmouthshire; Stokesby, Norfolk; and Lowestoft, Suffolk.

Saturday 9 May

Saturday 9 May will be a day of celebration. At around 11am, cathedrals across the country, from Durham to Canterbury, will be invited to ring their bells in celebration.

Festivities will peak with a star-studded 1940s themed concert held on Horse Guards Parade on Saturday night, featuring a line-up of international recording artists, stars and celebrities. The show will be one of the highlights of the year and will be broadcast that evening on BBC One.

Sunday 10 May

A service of thanksgiving will be held at Westminster Abbey, attended by veterans and their families, members of the Royal Family, representatives of allied nations and Commonwealth countries who fought alongside Britain in the conflict, along with other diplomatic representatives and senior members of government and the armed forces.

Following the service, there will be a parade of current personnel and veterans, supported by bands, from the Abbey along Whitehall, past the balcony of HM Treasury where Winston Churchill made his historic appearance before crowds on VE Day. Veterans who have taken part in the service and parade will then be invited to a reception in St James’s Park hosted by The Royal British Legion.

During the afternoon there will be a flypast of current and historic aircraft from the Royal Air Force – including the Hurricane, Spitfire and Lancaster of the famous Battle of Britain Memorial Flight, which played such a famous role in the European War. The Spitfire, with its unmistakable design, won the admiration of many for its daring role in the Battle of Britain, engaging in dogfights in the sky against enemy aircraft in the defence of the nation. The Avro Lancaster is perhaps the most famous of the aircraft used by Bomber Command during the Second World War, used in many raids on enemy territory, including the famous Dambuster Raids on the Ruhr Valley.

Central London will also be transported back to the 1940s by a display of period vehicles from the 1940s in St James’s Park.

Further details on the commemorations, including event listings, are available at https://www.gov.uk/government/topical-events/ve-day-70th-anniversary.

Information on how veterans will be able to join in the London celebrations, including how to get involved in the lighting of the VE Day Beacons on 8 May and participating in the parade on 10 May, will be announced shortly.

Ministers mark National Apprentice Week

National Apprenticeship Week 2015 activity got off to a flying start on Monday when apprentices from across London met Secretary of State for Business, Vince Cable, at the London Eye, marking the official launch event of the week.

The event took place in the wake of research from economists at the Centre for Economics and Business Research (Cebr), showing that millions of consumers would prefer to do business with apprentice employers.

Business Secretary Vince Cable said: “The benefits of apprenticeships are clear – they make a vital contribution to the economy, boost business productivity and give people the skills they need to get on in the world of work.

“As this research shows, there has been an important shift in the attitudes towards apprenticeships with businesses, consumers, and young people recognising the significant opportunities they can offer.

On Tuesday Jason Holt CBE hosted an event at the House of Commons showcasing the products and services made by apprentices at small to medium-sized enterprises and featuring speeches from political and business leaders. Jason also officially launched ApprenticeMakers, a peer support service for small businesses interested in taking on apprentices.

The event featured exhibitions from SMEs, including: Heartplus, John O’Conner Ltd, The Bridal Gallery, Mike Rowland and Son, Blue Moon Creative Ltd, Michael Taite, Jonny’s Sister Ltd, K&M McLoughlin Decorating Ltd, Promo 2 U Limited, Holition and Optimity.

On Wednesday evening, the Deputy Prime Minister, Nick Clegg (top), welcomed employers and apprentices from the finance, legal and insurance services sectors at a reception in Whitehall. Skills Funding Agency executive director, Keith Smith, was accompanied to the event by an SFA apprentice who works in the legal team.

A catwalk-themed reception for Trailblazer employers was held yesterday at Elstree film studios, in partnership with the British Fashion Council, as a ‘thank you’ for the employers’ work in designing and implementing new apprenticeship standards.

Skills and Equalities Minister, Nick Boles, MP (above) said: This week is a time to celebrate the employers, young people and adults from across the country that are making apprenticeships such a success.”

Smith Agreement: call for halt to Work Programme extension

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

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

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

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

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

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

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

Welfare powers: get a move on!

Scottish government says swift action is needed on welfare

Scottish ministers have urged the UK government to deliver Lord Smith’s recommendations for new powers on welfare almost four months after the report’s publication .

The call comes ahead of the Joint Ministerial Working Group on Welfare in Edinburgh later today (March 11) that will be attended by Social Justice Secretary Alex Neil and Fair Work Secretary Roseanna Cunningham, and which will focus on future delivery of welfare and employment support services in Scotland .

Mr Neil said: “It has been over a month since the Working Group met for the first time and weeks since the Smith Commission delivered its recommendations. Over that period of time there has been a frustrating lack of progress from the UK government in recognising that its current proposals do not meet Lord Smith’s recommendations.

“We want to see early progress on flexibilities around Universal Credit as well as assurances that the UK Government will deliver the Smith report in full. It’s really frustrating that the UK has refused to make early progress on those flexibilities, although these are technically feasible now. And they have refused to change their draft clauses which fall short of the Smith proposals.

“Just last week both the Welfare Reform Committee and the Joseph Rowntree Foundation highlighted the scale of the damage inflicted by Westminster’s austerity agenda on people across Scotland.

“With more powers in our own we hands we could build a system better suited to our needs. The Scottish Parliament is best placed to make decisions about welfare policies that affect the people of Scotland.”

Ms Cunningham added: “This Government’s commitment to Fair Work means we believe people should be supported into work, instead of being punished for being unable to secure employment. The UK Government’s current conditionality and sanctions regime isn’t working and the UK Government needs to adopt a positive and proportionate approach to support people, rather than cutting their incomes and having to deal with misguided policies such as the ‘bedroom tax’.

“We await vital information on employment services, such as the Work Programme, to enable the Scottish Government to move forward quickly in re-designing this type of support for Scotland. We are determined to use these powers to deliver seamless, effective support in Scotland that helps unemployed people in Scotland into work and delivers sustainable and inclusive economic growth.

“As we move towards the UK pre-election period, we call upon the UK government to act swiftly on the Smith recommendations to ensure we can bring forward a Bill that is fit for purpose and allows us to take a new approach to tackling inequality.”

Lazarowicz welcomes plan to close education gap

Mark Lazarowicz MP has welcomed the plan announced at the Scottish Labour conference to use funding from Labour’s cut in pension tax relief for highest earners to set aside £125m extra for the Scottish education budget to close the educational attainment gap between children from rich and poor backgrounds.

The cut in pension tax relief will also provide funding for school leavers to ensure more students from the most deprived backgrounds have the chance to go to university and all young people start their working lives on a secure footing.

The extra £125m is only part of the plan which would also:

require Ministers and local councils to report annually on progress in reducing inequality in education

see all local authorities appoint a chief education officer to lead the work to close the gap in attainment

create a National Centre of Excellence of Education to enable best practice to be shared

double the number of teaching assistants in those primary schools that send children to the 20 secondary schools where there is most concern over attainment

Labour also plans to introduce

better grants for poorer students, worth over £1000 to enable more students from deprived backgrounds to attend university

a fund worth £1,600 each to support young people who don’t go on to college or university or an apprenticeship to pay the cost of training, setting up a small business or expenses like driving lessons

Mark Lazarowicz said: “This funding from taxing highest earners will enable us to really tackle the gap in attainment between children from the richest and poorest backgrounds which has been too often neglected.

“It will also ensure young people who don’t go on to study at a college or university or gain an apprenticeship are not forgotten by helping them with the cost of training or other expenses as they start their working lives.

“Educational opportunity at every level should be our aim and we must do much more to make that a reality to give all our young people the chance they deserve.”

The Scottish Labour leader, Jim Murphy, has reaffirmed that there will be no tuition fees at Scottish universities if Labour wins the next Scottish Parliament elections but he also went on to highlight the need to widen access so that students from the most deprived backgrounds have the chance to study at university in much greater numbers.

Independent studies show that Scotland currently has the lowest proportion of university students from the most deprived backgrounds in the UK.

The funding would come from the funding that the Scottish Government would receive from Labour’s cut in pension tax relief for highest earners. That would cut

the rate of pension tax relief for people earning over £150,000 a year to the basic rate;
the annual limit on pension contributions free of tax from £40,000 to £30,000;
the lifetime allowance from £1.5 million to £1 million.

Family matters: extensions for innovative family support projects

An extra £2.5 million in government funding to help charities and other groups support families going through relationship breakdown has been announced today (8 March 2015) by Steve Webb, Minister with responsibility for child maintenance.

Scotland’s Family Decision Making Service partnership is one of sixteen trial Innovation Fund projects to have been providing tailored support across the country helping separated parents work together for the benefit of their children since 2013. The new funding means they will now be extended until September.

Projects include specialist support to teenage parents working with their children’s grandparents, face-to-face services for separated parents caught up in long-term disputes, and tailored help for Muslim families who are experiencing relationship breakdown.

Minister for Child Maintenance Steve Webb said: “Family breakdown can be difficult for everyone involved, but the evidence shows that children stand a much better chance of getting on in life when their parents are working together.

“This funding will allow these projects to continue their excellent work by helping parents to put aside their differences for their children’s sake.

“We are starting to see some very encouraging results from these projects which will be invaluable when it comes to designing future services and are proving priceless for the families being helped.”

Children 1st’s Family Decision Making Service (Scotland) has worked with more than 1500 individuals since it’s launch.

This bespoke service provides support to parents 365 days a year over the telephone or through live webchat. It draws upon the expertise of three organisations: Children 1st, Scottish Child Law Centre and One Parent Families Scotland.

Assistant director Linda Jardine said: “This extra funding is good news for separated and separating families in Scotland.

“Children cope better with family break-up if their parents work together on the decisions which affect them, and through the Family Decision Making service parents are able to draw on the combined expertise of three partners to help them to do this.

“So far the service, which is unique in Scotland, has worked with more than 1,500 individuals to make sure that, whatever difficulties the adults may be experiencing, their children remain the focus.”

Part of the DWP’s work on relationship support, the projects were originally set up to work alongside the new Child Maintenance Service, which is taking a fresh approach to tackling the issue of family breakdown.

More than 6 out of 10 separated parents using the new Child Maintenance Service are now choosing to make their own financial arrangements rather than relying on the state to collect and pay maintenance on their behalf.

At the heart of the reforms lies the principle that children have a much better start in life when both parents work together across a range of issues including contact, schooling and finances – even if they have separated.

The third party organisations delivering the projects were encouraged to come up with new and innovative ways of delivering the support.

Each of the projects is unique in the type of support that they offer, which can be delivered through face-to-face sessions, over the telephone and online.

Some of the projects target specific groups, such as teenage parents, people on low incomes and families with diverse cultural background. Practical guidance is also offered on a range of matters including legal advice.

A total of £10 million was set aside to fund the various projects when they were introduced in 2013. The results from the projects will be used to design future government services.

The Innovation fund projects are:

Howells: Working Together for Children (South Yorkshire)

Family Lives (Leicester, Waltham Forest, Gloucestershire)

Resolution: Family Matters (Doncaster, Wakefield, Scunthorpe, Grimsby, Retford)

Sills and Betteridge: Moving Forward (Lincolnshire)

Mediation Now: Changing Lives (Hampshire and Portsmouth)

Spurgeons: Supporting separated teenagers (West Midlands and Warwickshire)

Changing Futures North East: Moving On (Teeside, Sunderland and County Durham)

Tavistock Centre for Couple Relationships: Parents In Dispute (London)

Children 1st: Family Decision Making Service (Scotland)

Pinnacle People: Families Together (Bristol)

Malachi Family Support Services (Birmingham and West Midlands)

One plus One: Splitting Up? Put Kids First (nationwide)

National Family Mediation: At Court Mediation (Hereford and Worcester, West Yorkshire and Berkshire)

Family Matters Mediate: Listening to Children Matters (Yorkshire and Nottinghamshire)

General Election 2015: your questions matter!

Come along and ask candidates the questions that matter to you! Pilton Community Health Project will be holding hustings in each of the two constituencies in the area.

Candidates for Edinburgh North and Leith have been invited to attend hustings on Thursday 19 March from 6.30 – 8pm at Royston Wardieburn Community Centre. A light soup supper will be available from 6 with questions starting from 6.30. The event will be Chaired by the very able Harry Woodward.

Candidates for Edinburgh West have been invited to attend hustings on Thursday 26 March from 6.30 -8pm at Muirhouse Millennium Community Centre. A light soup supper will be available from 6 with questions starting from 6.30. The event will be Chaired by the very able Harry Woodward.

Get in touch if you would like some help with childcare or have any questions – contact Anita on 0131 551 1671.