Meeting of the Parliament (Hybrid) 08 June 2022
I have taken quite a few interventions and I am probably running low on time.
If we look across the whole four-year period of the resource spending review, our real-terms funding is to grow by only 2 per cent, after accounting for devolution of social security benefits. The current fiscal settlement denies us even the most modest borrowing powers that most Governments across the world would have access to—powers that Scotland would have as an independent state.
If we need another reason why Scotland cannot afford to remain under UK Tory rule, researchers at the Glasgow Centre for Population Health found that
“Austerity is highly likely to be the most substantial causal contributor to the stalled mortality rates seen in Scotland and across the UK.”
Scottish people deserve better than that, and they also deserve informed and intelligent debate about the true nature of our financial outlook.
It is therefore disappointing to see that the Conservatives have, once again, claimed that
“the Scottish Government has imposed higher tax rates on Scotland without increasing revenues”.
That is factually inaccurate. It is contradicted—[Interruption.]. It is contradicted by the Institute for Fiscal Studies, which stated last week:
“We are not saying the tax rises have reduced revenue. The tax rises almost certainly have raised revenue.”
In the SFC’s December 2021 forecast publication—to which, I think, Liz Smith referred—the SFC noted that the Scottish Government’s decisions on income tax since 2017-18 would add about £552 million to the Scottish budget in 2022-23.
In the past six months, we have set out our annual budget, our strategy for economic transformation, two medium-term financial strategies and a three-year resource spending review—all against the backdrop of a pandemic and the biggest economic shock in over 100 years, the most significant cost of living crisis in a generation and the illegal Russian invasion of Ukraine, which is a humanitarian crisis that is affecting the global economy.
There can be no accusation that this Government is shying away from its responsibilities in managing our public finances and Scotland’s economy. It is managing them well. Despite the funding pressures and despite macroeconomic powers remaining with the UK Government, our resource spending review prioritises our limited resources on the Scottish Government’s long-term ambitions for Scotland.
Other parties in the chamber might have different priorities, but I strongly believe that the priorities that we have set out as part of the resource spending review are the priorities of the people of Scotland: tackling child poverty, transitioning to net zero, economic recovery and helping households with the cost of living crisis. It is our job, as a mature and fiscally responsible Government, to deliver those priorities, but Parliament needs to face up to the realities of where powers lie and the realities of a budget that gets cut by the UK Government.
I move amendment S6M-04815.3, to leave out from “is deeply” to end, and insert:
“endorses the priorities set out in the Scottish Government’s spending review of tackling child poverty, addressing the climate crisis, building a stronger economy and improving public services, while supporting those people struggling with the increased cost of living; notes that the overall Scottish Budget has fallen by 5.2% in real terms between 2021-22 and 2022-23 and that the Scottish Fiscal Commission has confirmed a further 1% real-terms reduction until 2025-26; agrees that current financial fiscal arrangements between the UK Government and the Scottish Government are deeply flawed; highlights the persistent dismal failures of leadership in the UK Government, with the UK currently having the highest inflation rate of any G7 country, compounded by Brexit increasing food prices; notes recent research from the Glasgow Centre for Population Health highlighting the brutal reality of a decade of austerity under the UK Government, and believes that, with full control over the economic and financial powers, the Scottish Government could take further action to build the economy that Scotland deserves.”
15:22Motions, questions or amendments mentioned by their reference code.