In our first Budget, the Labour Government took a decisive step: we ended austerity. Now, with £4.9 billion in additional funding secured for Scotland by decisions taken by Scottish Labour MP’s, all eyes are on the Scottish Government budget announced last week to see if it will deliver for the
For 14 long years, austerity—a state-shrinking fiscal policy synonymous with Tory rule—has inflicted untold hardship on the people of Falkirk, Scotland, and communities across the UK.
Austerity left jobs scarce, costs soaring, and public services crippled. Locally, Falkirk has faced disproportionate SNP inflicted cuts and council tax freezes, leading to closed facilities, fewer bin collections, potholes in our roads, and now a proposal to slash classroom hours being considered this week. The Scottish Government has clearly stated that such cuts would harm attainment and hinder progress in closing the attainment gap.
When this Labour Government was elected in July, we had to be clear-sighted about what was possible in our first year. The Conservatives had left a multi-billion-pound black hole in the public finances, recklessly endangering our economic stability by committing the treasury’s reserves three times over in a single year without identifying where they would obtain the additional funding.
If I committed to three holidays in a year but didn’t happen to mention that my budget barely covered a single weekend—and that I’d be dipping into my emergency savings to fund even that—my partner would be fully justified in packing my stuff in black bin bags and dumping them on the kerb. This is why the Conservatives lost: they were simply not serious people. Far from learning their lessons, their new leader Kemi Badenoch has been committing to £12 million in new spending pledges every hour since she took office in November.
This is why ending austerity was essential, no more short-term thinking, no more unfunded commitments, a clear and honest solution to reverse a strategy that everyone can
To set the country on a distinct path the Labour Government needed to wipe the slate clean from the years of failed fiscal policy. To start a national renewal, we needed to seriously start investing in our front-line services. Increasing Employer National Insurance contributions by 1.2% and a reduction to the secondary threshold will raise £23.8 billion for the upcoming fiscal year and over £25 billion a year by the end of the Parliament. The SNP have opposed this rise, but just like their uncosted manifesto, they will never put the truth of what they would do otherwise on the front page of their leaflets: raise taxes on ordinary, working people.
I recognise the concern that is being raised by local businesses, third-sector organisations and charities. In addition to the £4.9 billion in additional resources the budget provided Scotland, the Scottish Government will have £300 million to mitigate the cost of the rise on the public sector. It is important to look at the facts, changes to the employer allowance to incorporate a greater extent of smaller businesses mean that more than half of businesses with NIC [National Insurance contributions] liabilities will either gain from this budget or see no changes in
Claims that this rise is austerity through the backdoor by SNP HQ is an atrocious attempt at politicking to justify their record of failing our public services and underfunding our councils and health services to crisis level.
This increase was amongst other tax raising measures such as: Abolishing Non-Dom loopholes, increasing rates of Capital Gains Tax, increasing the rate of the Energy Profits Levy by 3% so that oil and gas giants making record profits pay their fair share towards investing in green jobs and infrastructure, removing the exemption on Private Schools VAT, and increasing rates of Passenger Duty for private jets. All tax raising measures that both make those with the broadest shoulders pay their fair share and stick by our promise to not raise taxes on ordinary working people, a promise made, and a promise kept.
This UK Labour budget delivers billions for compensation schemes for the Infected Blood Scandal, the historic Mineworker’s Pension Scheme, and the Post Office Horizon Scandal. I met with leaders of the Falkirk Women Against State Pension Inequality (WASPI) Campaign the week after the Budget and remain a supporter of a fast and fair compensation scheme
Despite the SNP and Tories opposition to many of these measures, the investment in our public services will leave everyone but the richest 10% of households better off as evidence from the Budget papers shows:
As the tools for investment in health, education and local government sit at Holyrood, all eyes turned to the Scottish Government draft Budget announced last week. The UK Budget delivered £4.9 billion in additional funding for this and next years’ Scottish Budget. The Scottish Trades Union Congress were clear in their assessment on the 30th of October: “The Westminster blame game is finished. They have the money. They have the powers.”
Now as Falkirk’s MP I’m firmly in favour of devolution. I won’t attempt to dictate policy demands to Edinburgh like the Scottish Government is prone to do to local government. I will leave that to the people of Falkirk to articulate their needs to their Scottish Government for areas under
The concerns I heard come up on the doorstep before and since the election are focused on pressures in the NHS, decline in council services and the cost of living. The Scottish Government deploying a portion of the £4.9 billion extra secured by the UK Labour budget for the NHS is welcome, but cuts this year to Primary Care, Alcohol and Drug Partnerships and Mental Health are a matter of grave concern. On Local Government a supposed real-terms funding increase bucks the trend of 17 years of SNP budgets, but it will take more than this to make up for 17 years of disproportionate cuts to local services.
Case in point, the most prominent local concern that still comes up consistently on the doorstep is the proposal to cut the school week. The SNP administration delayed a decision in October awaiting the UK and Scottish Government budgets. Labour delivered for Falkirk with a record funding settlement for the Scottish Government, and the Scottish Government clearly believe their settlement is sufficient to avoid this cut as SNP Minister Natalie Don-Innes stated on Thursday the 5th of December “ Falkirk Council’s settlement will be published on 12 December, and I am confident that the council will be able to revisit those decisions.”
I was clear when I was a councillor, and I am clear now: education is a route out of poverty and the number one enabler of opportunity and social mobility. These cuts will hit the children of parents on the lowest incomes the hardest. I will leave it to the SNP group on Falkirk Council to decide whether they concur with their colleagues in Holyrood that this Scottish Budget does enough to prevent the cut to the school week.
Over 5,000 people have signed a petition calling for these cuts to be halted and Falkirk Labour remains firmly on their side, opposed to cutting the school week.
As the STUC said, the era of Westminster blame games is over. Now, this week with a proposal to cut the school week on the table, responsibility lies squarely with a 17- year-old Scottish Government and an SNP-led Falkirk Council. The people of Falkirk will be watching.