‘ We’ll always use our powers to meet the challenges people face in the here and now’
LAST week, the Scottish Government set out our Budget plans for the year ahead. To say that these tax and spending proposals are being delivered in a tough economic context would be a massive understatement – without doubt, these are the most turbulent fiscal and economic times that most of us can remember.
The cumulative effect of war in Europe, surging energy prices, raging inflation, damage to labour supply and trade due to Brexit, along with the gross financial mismanagement that we have seen from the UK Government, has created the most difficult set of conditions in recent times – and forms the most challenging backdrop for any Budget.
Many people, households and businesses are suffering real hardship due to the spiralling costs of basic essentials.
In addition, we face severe constraints in the public finances which pose challenges for the funding of public services. So, it is against this harsh reality that the Scottish Government had to make its budget choices.
Within the limited powers available to us, we have chosen to pursue a different path to the Tories at Westminster – a path which rejects austerity and instead seeks as far as we can to protect the most vulnerable people in our society, prioritise investment in our public services, especially the NHS, and support the environmental and economic benefits of the transition to net zero.
We are – after careful consideration – asking those on the highest incomes to pay a penny more in income tax.
The extra revenue from our tax policies will help us protect the NHS – which we all rely on – with an additional £ 1 billion in funding next year.
The Budget also supports the new £ 25 per week Scottish Child Payment which is designed to lift children out of poverty and give them the best start in life. This is a benefit not available in the rest of the UK – demonstrating the very different approach we are taking.
The Budget also increases all other devolved benefits by more than 10% – in line with inflation – providing lifeline support to those most vulnerable.
In total, £ 20 million is also being provided to extend the Fuel Insecurity Fund into next year – money which will provide a lifeline for thousands of households, and protect those most vulnerable to rising energy prices.
The Budget also ensures that Scotland will continue to act as a good international citizen – with
£ 70m investment in our Ukrainian Resettlement programme, which is providing refuge to the thousands of people who have come from Ukraine to find safety in Scotland, and £ 35m for the equalities
and human rights organisations which are supporting some of the most vulnerable people in our society.
Overall, this year’s budget strengthens the so- called ‘ social contract’ between the Scottish Government and the citizens of Scotland, for the wider benefit of society.
This means that people in Scotland will continue to enjoy many benefits that are not available throughout the UK, including free prescriptions, access to higher education and the Scottish Child Payment.
It also means that in Scotland families are shielded, as far as possible, from the welfare cuts and austerity policies of the UK Government. The Scottish Government will always use our limited powers to the maximum extent in order to meet the challenges people are facing in the here and now – but only with the full powers of a normal independent country can we use all of our available resources to meet the priorities of the Scottish people, instead of having to repeatedly divert funding into policies that aim to mitigate the harmful impact of UK Government policy decisions.
Unfortunately, the Prime Minister and the Tories have chosen an economic approach which delivers low growth and low productivity coupled with sky high rates of poverty and inequality.
Experts predict that these trends will get even worse in the coming years – which is why it’s no surprise that support for an independent Scotland, with the full powers necessary to make a real difference to those facing hardship, continues to rise. Indeed, to illustrate that there is a better way, the Scottish Government has set out how European countries of a similar size to Scotland are happier, fairer and have lower poverty levels than the UK.
Next year, we should aspire to match the best in the world - not just accept what Westminster has to offer.
Finally, I know that many of us – especially after the past two difficult Christmas periods – will be really looking forward to spending time with family, friends and loved ones over this festive period.
However, as I’ve already mentioned, for many people across the country this continues to be a time of real struggle and hardship.
So this Christmas, we can all think about how to help others – maybe donating to charity if we can, helping out in our communities, or visiting an elderly neighbour or friend who might be on their own and need some company.
I know many will already be doing that, and in so doing, helping make the festive period that bit brighter for everyone.
I wish everyone a very happy, healthy and peaceful Christmas.