How Labour’s budget fails to deliver the change voters were promised
During the election, First Minister John Swinney warned that Labour’s plans to stick to Tory spending plans would result in further cuts or tax rises, according to the Institute for Fiscal Studies. Labour dismissed this – only for Chancellor Rachel Reeves to announce in her first budget she has to make tax cuts, or tax rises.
It is a given that the Tories would choose to cut public spending to deliver tax cuts for the well-off, but for the Labour party to continue this is truly shocking. As ever, the SNP will prioritise public spending investment by ensuring those with the broadest shoulders contribute more in income.
While the choices made in the budget are a step in the right direction, it’s going to take more than one budget and a more transformative public spending approach to restore the UK’s public services and grow the economy.
Meaningful investment is needed to boost the NHS, put money back into people’s pockets, and deliver strong economic growth after years of Westminster decline. To deliver that it’s time to stop tweaking around the edges and deliver the change voters were promised.
Your SNP MPs in Westminster challenged the Labour government to deliver a package of investment, including at least £16 billion a year extra for the NHS – and real-terms increases for all public services after years of Westminster austerity and underfunding.
We’ve also repeatedly urged the Labour government to reverse their cuts to the Winter Fuel Payment – and lower bills by freezing fuel duty, introducing a statutory social tariff, and cutting the cost of household energy bills by £300 a year, as the Labour Party promised during the election. Instead, the price cap is being lifted yet again – with bills set to rise 10%.
Scrapping the two child benefit cap, abolishing the bedroom tax, and matching the Scottish Child Payment UK-wide by raising the child element of Universal Credit by £26.70 per child per week would lift more than a million children out of poverty. Labour’s decision to keep these archaic Tory policies – punitive measures that target the poor – will actively push more children and families into poverty.
Finally, rejoining the EU single market would provide the much needed boost of economic growth that the UK’s public finances urgently needs..
If this budget delivers anything, it should be to put money back into people’s pockets, support our precious public services and deliver strong economic growth after years of Westminster cuts and decline.
If Rachel Reeves wants to repair the damage done, she must reverse these Labour Party cuts and deliver the change that voters were promised. That means real investment in our public services, including at least an additional £16 billion a year for the NHS, which have been chronically underfunded by Westminster.
It means reversing the cuts to the winter fuel payment and supporting household incomes by freezing fuel duty and cutting energy bills by £300, as voters were promised during the election.
It means taking action to lift a million children out of poverty by scrapping the two child benefit cap, abolishing the bedroom tax and matching the SNP’s Scottish Child Payment UK-wide.
And, it means reversing the cuts to the Scottish Government’s capital budget – and delivering an additional significant real-terms boost to enable Scotland to build more affordable housing, improve schools and hospitals, and deliver vital transport and energy infrastructure.
The Labour government must also be honest with voters about the damage its own policies are doing to the economy and public finances. It’s not good enough to just blame the Tories, when the Labour Party is continuing some of their worst policies, including Brexit, which is costing the public purse billions of pounds every year.
Labour also knew about the gaping black hole in public finances – they knew because leading economists and the SNP repeatedly told them.
The Chancellor must finally admit that the only route to strong economic growth is in the single market – and make the case for rejoining the EU.
Voters in Scotland were promised an end to austerity cuts and meaningful change. The Labour government must now deliver – or they will never be forgiven in Scotland.