CHEER up. Not everyone did badly out of George Osborne’s spending review. A certain Mrs E Windsor of SW1A will be tempted to break out the bunting as her welfare payment – known as the Sovereign Grant – will go up by seven per cent to almost £43 million. When the Chancellor said he wanted to rebuild Britain did he mean one palace at a time? Meanwhile, millions of people in less privileged situations face cuts upon cuts.

Osborne’s apparent about-turn on tax credit cuts should qualify him for membership of the Magic Circle. In a classic misdirection act he claims the credit for offering a reprieve, but in reality many working families will still find themselves worse off due to cuts planned under Universal Credit.

The Joseph Rowntree Foundation reckons that by 2020 families with children will be better off only if both parents work full-time on the so-called National Living Wage (the fake living wage, not the real one) which is something only a small minority of families can manage. Certainly no help here for younger parents, or single parents, and we still need to see how changes to other benefits such as housing benefit will affect Scotland.

Tories like to give the impression that they’re credible on the economy in comparison to other parties, but the spending review is a complete and utter punt.

The Chancellor is pinning his hopes on a wide range of factors including growth of about 2.5 per cent for five years. With gloomy predictions from the EU, Chinese and emerging economies, this gamble on growth is reckless.

Richard Murphy, the Tax Justice campaigner, has pointed out that Osborne’s hope of greater income tax and national insurance yields requires vast numbers of self-employed people currently earning £11,000 or less to become seriously profitable, start paying tax and stop claiming benefits. How likely is that?

It also seems that Osborne is hoping a wave of his magic wand will persuade Bank of England governor Mark Carney to keep interest rates low to keep Government debt costs down.

The Chancellor’s review also underlined the Tories’ determination to hammer Scotland’s burgeoning renewable energy industry while dishing out funding for frackers and new nuclear, and for gas-guzzling vehicles and energy-hungry industries.

Scottish Renewables says changes to tax relief on investments in renewables represent yet another cut in support for the sector, making it less attractive to investors.

The committee on climate change’s latest report shows the UK needs to double its renewable power output by 2030 to meet carbon budgets. Osborne, of course, has previously equated saving the planet with putting the country out of business, yet by trashing low-carbon industries he’s trashing our job prospects now and in the long-term. As thousands of Scots prepare to march in Edinburgh tomorrow in support of action on climate change, it is increasingly clear that Scotland’s people and the Westminster Government have different priorities.

And what of Scotland’s spending priorities? Well, yesterday John Swinney gave his first reaction to the review.

We know that the Scottish block grant will fall by 3.9 per cent in real terms between next year and 2019-20. That’s your decade of cuts right there from a party with just one Scottish MP.

The focus now must be what happens with the Scottish budget, due to be published in draft by John Swinney on December 16, just one day before Holyrood breaks for its winter recess. Holyrood’s committees have had to take their budget evidence already, so with the vote scheduled for February there will be no time for proper scrutiny.

The Institute for Public Policy Research has estimated that to reverse Osborne’s planned cuts would take an increase in every income tax rate of about 3p in the pound. That’s what Sir Humphrey would have called “a courageous choice, Minister”.

But other options do present themselves. With the cross-party commission on local tax due to report soon, and the clear expectation that the next Scottish Parliament must finally scrap the outdated and unfair council tax, the opportunity exists to really empower local communities in Scotland to generate revenue from those who can afford to pay. The land hoarders, the multinationals, the tax dodgers and frankly individuals as well paid as any MSP can afford to pay a bit more if we care enough to protect the public services we all depend on. And investment in the low-carbon economy which will provide lasting jobs for the next generation must be prioritised.

During the referendum campaign Greens advocated a Yes vote because we saw the opportunity to change economic direction. Sadly, we’re still left with the constraints of devolution. But instead of throwing up our hands and pretending there’s nothing to be done, we must continue to push against those limitations. The need for a bolder Holyrood has never been more important.


Jeane Freeman: Same old George, and same old tune from Tories


Osborne's Autumn Statement is not the end of austerity, says IFS


Osborne’s cut to 'short money' is a risk to democracy, says Electoral Reform Society