BY the time you get read this there will have been plenty of other articles commenting on the Scottish Budget. That was why I was initially reluctant to address the issue, but I still think there are some key points that have to be made.
In establishing new tax bands and moving to a five-band income tax regime, it is clear that the SNP Scottish government believes in a fairer, more progressive taxation policy; one that protects those on lower incomes while asking those who earn more to contribute more to our society. That in itself sets Scotland’s economic policy as different from the rest of the UK. In moving to a more progressive taxation policy, the Finance Minister has been able to bring in additional revenue without putting more pressure on the lower paid and, in fact, it looks as if seven out of every 10 Scots will pay the same or less in income tax under these proposals.
The lifting of the public sector pay cap will also be welcomed as public sector workers have struggled under the austerity programmes of successive Labour and Tory UK governments. As a minority government it will now be up to the various opposition parties to help decide on the final shape of the budget. Already the Greens seem supportive, but I doubt if there is any likelihood of Labour or Tories having a constructive conversation with the Finance Minister about the final outcome of the Budget.
However, the Scottish Budget must be seen in the context of the finances we receive from Westminster and the lack of real powers to radically alter our economic and social policies.
The continued austerity programme of the Tories will see around £200 million cut from Scotland’s Budget this year with further pressures on the Scottish Budget being required to offset the harmful and pernicious Tory welfare reforms. And let’s not forget about the damaging financial legacy of Labour’s PFI schemes which continue to suck dry the budgets of local government and the NHS.
The Tories want the SNP to ditch the baby box scheme to fund tax cuts, while fully supporting the massive, wasted expenditure on Trident. The Tories are also bitterly complaining that the new tax brackets will penalise hard-working families – as if those on the lowest earnings don’t work damn hard to make ends meet.
They complain that the increase in tax for the highest earners is a disgrace but thought nothing of slashing the benefits of some of the most vulnerable in society. As for Labour, despite another new leader, their sole policy is “SNP bad”. It wouldn’t matter if somehow the SNP found a cure for cancer or created world peace, there would still be a Labour MSP moaning about it. Of course, what do you expect from a party who have to wait for their instructions from London before they can make any announcement?
It was Labour, after all, who started the welfare reforms, including penalising people for not making their benefit appointments on time, yet one of their MSPs swans off half way around the world to make a fortune on a celebrity TV show, leaving her constituents in the lurch for three weeks and returns to receive nothing more than a slap on the wrist! If only the DWP could be so lenient then we wouldn’t have people queuing up at food banks to feed their families.
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