New government has done little to ease the public’s pain
Labour’s promise that employees wouldn’t bear the brunt of tax hikes now rings hollow after last month’s Autumn Budget.
By increasing employers’ national insurance contributions, the UK government is backing businesses into a corner.
Now, many will have little option but to cut back on pay, pensions, investment, and recruitment, directly impacting millions of low and middle-income workers.
Scotland’s higher proportion of public sector workers means this increase will hit harder here than in the rest of the UK, with the Scottish Government estimating it will add £500 million to public sector costs.
This decision doesn’t just affect the public sector and businesses. As Social Care Minister, I am hearing directly from care home providers across the country who are warning that they are not in the position to absorb these additional costs.
Subscribe to receive our free email newsletters
Charities will also be hit hard. Highland Hospice has already shared the crippling impact they face, with an additional £171,000 in national insurance costs.
For a charity, this is an eyewatering sum of money, that could otherwise be spent providing essential care and support to those who need it most.
The Autumn Budget was a real opportunity for the new Labour government to take bold action and distance itself from the damaging policies of preceding governments. Yet, disappointingly, Labour chose to continue the Tory and Lib Dem legacy of austerity by maintaining the two-child benefit cap and bedroom tax — policies that are widely recognised as key contributors to child poverty and growing inequalities.
We are still living with, and continue to uncover, the full extent of the damage caused by austerity measures.
A recent study by the University of Glasgow and Public Health Scotland linked decisions made during the coalition years to adverse birth outcomes. The research found a significant rise in the number of babies born with low birthweight and preterm, particularly in socio-economically deprived areas, within one to three years of austerity measures being introduced.
These outcomes are well-known risk factors that can affect health in childhood and later life. Austerity has already been linked to rising mortality rates and declining life expectancy – this latest study only adds to the mounting evidence of its enduring and harmful impact on public health.
Labour’s cut to Winter Fuel Payments will only worsen health inequalities, as cold, damp homes increase the risk of respiratory and cardiovascular illnesses.
At a fuel poverty advice surgery I held in Wick last month, I heard from pensioners about the difficult choices they face and the deep anxiety they feel over how they will afford to heat their homes this winter.
Once again, the Scottish Government finds itself working to lessen the impact of a UK government decision — this time, under Labour, not the Tories.
Labour should heed the evidence and follow the Scottish Government’s lead in prioritising action on poverty.
Through progressive policies such as the Scottish Child Payment, Best Start Grant, Baby Box, and free childcare, the SNP is doing everything within its power to support Scots and mitigate the harm caused by Westminster’s policies.
While there are some positives in the UK Budget, such as the Chancellor’s decision to adjust the fiscal rules to allow for greater investment, the reality is that it still imposes over £40 billion in cuts and tax hikes, which will be felt deeply by my constituents, public services, and local businesses.
Maree Todd is MSP for Caithness, Sutherland and Ross.
