Labour are following the Tories’ example by bypassing Holyrood

This probably does not surprise the many who are aware that in spite of the Gordon Brown-contrived “Vow”, the Labour Party actually argued against further powers coming to the Scottish Government. It probably also doesn’t surprise anyone that the protege of Lord George Foulkes, Ian Murray Esquire, seemingly relishes the opportunity to act as the patronising governor of the UK’s northern colony.

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As if this dictatorial approach was insufficient, it also appears that Labour’s Scottish branch manager, Anas Sarwar, thinks the Scottish Government should only allocate postulated “additional funding” coming to Holyrood according to priorities set in London. In other words, the Scottish Government should not look to offset removal of the Winter Fuel Payment, increase the innovative Scottish Child Payment or supplement local council funding.

Of course, as long as the Labour Party in Scotland effectively controls the Scottish Government’s purse strings, there is limited scope for the Scottish Government to financially manoeuvre. That said, perhaps some progress could still be made with some creative thinking in the next Scottish budget.

The Pension Age Winter Heating Payment that the Scottish Government planned to introduce as a universal benefit before the Labour Party withdrew the £160 million funding could still be introduced as such, and if subject to income tax it would help those most in need at a reduced cost to the Scottish Government (especially if wealthier pensioners were given the option to return 100% through their annual tax self-assessment). Admittedly given the lack of advance notice from the UK Labour government this may not be possible this year, but perhaps the means-testing could be dropped for next winter.

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As long as the Labour government at Westminster refuses to lift the two-child cap, the Scottish Government should still strive to mitigate the impact on the poorest families, and finding a way in the budget to increase the child payment may help the SNP Scottish Government to continue to lead the UK in reducing child poverty.

Finally, the exceedingly complex matter of finding a workable alternative to the council tax could be initiated by the limited introduction of some form of land tax, initially supplementing rather than replacing council tax revenues. I’m not an economist so no doubt there are many better ideas out, there but perhaps these thoughts will encourage others more qualified to make their suggestions.

In the meantime, with regard to directly furthering the cause of independence, it would seem logical for the Scottish Government to immediately introduce a bill to incorporate the International Covenant on Civil and Political Rights into Scots law and proactively seek to establish a Citizens’ Convention to recommend a constitutional way forward for Scotland – this could perhaps form the basis of the SNP’s approach to the next Holyrood election, and whether that should be calling the vote a “de facto referendum” or a demand for the Scottish Parliament to rightfully be granted the powers to hold constitutional referenda.

Stan Grodynski
Longniddry, East Lothian

VICEROY Murray asserts that under English Labour, “we face a decade of national renewal.” The Viceroy is, as usual, wrong.

He mindlessly pays tribute to the fictional £22 billion black hole, but neither he nor Rachel Reeves appear to understand that the UK Government can never run out of money. It can create as much as it needs to support the economy but refuses to do so because of another fiction – the made-up iron-clad fiscal rules (they’ve been changed nine times since the 90s), a self-imposed straitjacket that constrains public spending to satisfy the vampiric City of London that’s bleeding the productive economy dry.

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The City of London has been calling the shots since the 1980s. It engineered the mass privatisation of public industries, utilities and services, as well as private finance initiatives, where the construction of hospitals and schools was contracted out to private companies rather than be publicly financed, costing local authorities hundreds of billions of pounds.

Reeves’s Budget is a continuation of this neoliberal London-centred financialised model which panders to the wealthy, punishes the vulnerable and starves the productive economy of resources. The rise in employers’ National Insurance will disproportionately harm small businesses, which will reduce hiring and negate the minimum wage increase. Tax thresholds are frozen until 2028/29 and seniors whose only income is the state pension will be dragged into paying income tax.

Low earners face an 8% capital gains tax increase, but those earning more than £50,000 see a rise of just 4%. Public spending falls far short of what’s needed and Reeves has imposed 2% spending cuts on all government departments.

Growth will barely reach 2% and interest rates will remain above the inflation rate, depressing growth.

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Reeves is removing more money from the economy than she’s putting into it, a sure-fire route to recession.

Murray claims Holyrood has a “fiscal black hole” when he knows that Westminster controls its allowance. Meanwhile, London plunders Scotland’s resources and allows Grangemouth, Scotland’s last industrial asset, to close.

The way to end this misery for Scotland is to leave the failing Union and create a government that returns power to the regions and people, allowing all parts of Scotland to develop and prosper.

Leah Gunn Barrett
Edinburgh