Yahoo News Rutherglen politicians beg to differ on pros and cons of Labour's autumn budget
Rutherglen MP Michael Shanks says the UK Government’s autumn budget announcement will result in billions of pounds more for public services in Scotland.
The Labour MP welcomed Chancellor Rachel Reeves’ announcement, following some “tough choices”, of an additional £3.4billion which she claimed is the “largest real-terms funding settlement since devolution”.
Amongst other measures announced included increasing the minimum wage for workers over 21 from £11.44 to £12.21 an hour, from April 2025.
“This first Labour budget has set out how we deliver the change we offered at the election – protecting working people, funding public services and investing in the country’s future,” said Shanks.
“We’ve made tough choices to rebuild the foundations of our economy but at the same time hugely increasing the budget here in Scotland.
“As a result of Labour’s budget the SNP in Scotland now has billions more to spend on public services. It’s now up to them to spend the money properly to deliver for the people of Scotland and fix the mess they have made of the NHS, education and local government”.
However, Rutherglen MSP Clare Haughey claims the budget, “fails to deliver the transformative change Labour promised people in Scotland” and highlighted the increase in employers’ national insurance contributions from 13.8 per cent to 15 per cent, as well as the reaction of leading anti-poverty charities such at The Joseph Rowntree Foundation, Save the Children, and Child Poverty Action Group. The latter has said that Labour’s failure to scrap the two-child limit on benefits will “pull 16,000 extra children into poverty”.
“After fourteen years of the Tories, the UK budget should have been the chance to completely turn the page,” the MSP said. “Instead, the UK budget failed to reverse Labour’s punitive measures such as the Winter Fuel Payment cut, and failed to introduce any significant measures to tackle child poverty.
“Before the Budget, the SNP called for increased investment in public services and infrastructure, and of course it’s welcome that there’s been some progress in these areas.
“However, there remains significant uncertainty on the impact changes to National Insurance will have on public sector organisations who may have to use their already stretched funding to cover increased taxes. This is money that could cost our NHS, schools, police, and local government hundreds of millions of pounds.
“The Labour government’s budget imposes more than £40 billion of cuts and tax hikes that will hit millions of Scots in the pocket, and it fails to deliver the transformative change people in Scotland were promised.”
Burnside resident, Anne Potter, who is leading the WASPI (Women Against State Pension Inequality) fight for compensation for women born in the 1950s affected by changes to the state pension age, travelled to Westminster on the day of the budget.
READ MORE: Burnside WASPI woman leading pension compensation fight feels forgotten in party manifestos
Whilst in opposition, Labour promised to deliver justice for the estimated 3.6 million women affected by the change in state pension age but the issue wasn’t mentioned during the chancellor’s speech.
Anne said: “I am really disappointed in the lack of urgency shown by our new Labour government in addressing the Ombudsman recommendations and of their continuing delay in proposing a solution to implement a satisfactory compensation scheme.
“However, I do feel a glimmer of hope since the Post Office and contaminated blood scandals have been addressed and so I would hope that WASPI are next.
“The UK Government now have to find a simple and satisfactory solution to compensate across the different age groups.”
Scottish Government Finance Secretary, Shona Robison, said: “We have broadly welcomed this budget as a step in the right direction, but it still leaves us facing enormous cost pressures going forwards. The additional funding for this financial year has already been factored into our spending plans.
“We estimate that the employer national insurance change could add up to £500 million in costs for the public sector unless it is fully reimbursed – and there is a danger that we won’t get that certainty until after the Scottish budget process for 2025/26 has concluded.
“It is disappointing that there was no mention of abolishing the two-child limit, which evidence shows would be one of the most cost-effective ways to reduce child poverty. Neither was there mention of funding for the Winter Fuel Payment.
“We are assessing the full implications of the Chancellor’s Autumn Budget statement and I will be announcing further details as part of the Scottish Budget on December 4.”
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