MAREE TODD: Catastrophic impact of Kwarteng's 'mini' budget
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Holyrood Notebook by Maree Todd
In a month of economic and political turmoil, we mustn’t forget the human impact behind the string of catastrophic budgetary decisions revealed in the so-called ‘mini-budget’. From skyrocketing mortgage rates to risking pensions, this self-inflicted Tory chaos continues to have a direct impact on people’s lives.
At a time when one in five people in Scotland describe their household financial situation as ‘very insecure’, it was utterly reckless for the UK government to step forward with a budget that prioritised high earners.
Whilst it’s right that the abolition of the top rate of tax is no longer going ahead, it was just the tip of iceberg in terms of the utter mess that this government has unleashed on the economy.
As we now hear the consequences of Liz Truss and Kwasi Kwarteng’s budget will be massive public sector cuts, it’s worth reflecting on a new study published earlier this month by the Glasgow Centre for Population Health. The study shows that 330,500 excess deaths have been recorded – nearly 20,000 in Scotland – linked to austerity policy between 2012 and 2019.
The increase in premature deaths during this period can be linked to reduced income, ill-health, poor nutrition and housing, and social isolation – a result of the austerity programme initiated by the Tory/Lib Dem coalition. Behind the austerity agenda was a series of regressive and deeply damaging policies, including the benefit cap, the bedroom tax as well as reduced funding to the Scottish Government and local authorities.
The data from 2012-2019 lays bare the tragic consequences of austerity measures. As a health minister, I find it absolutely staggering that government policy which has been linked to an increase in death rates and widened health inequalities is being pursued again.
If the Scottish Government had a policy that was deemed life shortening, I am sure that I would be facing a great deal of scrutiny on that front, and rightly so.
The comparison between our two governments can be seen in a recent report from the Scottish Parliament Information Centre which explains how the Scottish Government spends more on social security than it gets in funding from the UK government – around £500 million more in 2022-23 and predicted to rise to £1.3 billion more in 2027-28. However, due to the way Scotland’s budget is funded, these increases are being put at risk as the Tories prepare to inflict a new wave of austerity cuts.
Thus far, the Prime Minister and the Chancellor have refused to commit to uprating benefits in line with inflation. In the Highlands, we have a low-wage economy. For too many of our people, work does not pay. We know that four in 10 universal credit claimants are in work and a real-term cut to benefits will cause widespread devastation, pushing low-income families further into financial hardship, poverty and destitution.
When the Tories introduced the bedroom tax, the Scottish Government supported impacted households with discretionary housing payments. In putting money back into the pockets of low-income households, we brought forward the Scottish Child Payment and uprated it by 150 per cent in the space of eight months.
Following a summer of inaction from the Tories, we set out a Programme for Government that included significant protections for tenants and a doubling of the fuel insecurity fund.
It’s clear that Westminster’s priorities could not be more different from the Scottish Government’s.
The severe impact that Truss and Kwarteng’s measures have had on the economy and income inequality, is a prime example of why Scotland needs independence.
- Maree Todd is the SNP MSP for Caithness, Sutherland and Ross.
