Dundee SNP

Commenting on the publication of the Holtham Commission Report on Welsh funding, which restates the case for scrapping the Barnett formula, SNP Treasury spokesperson Stewart Hosie MP said the only acceptable alternative was full fiscal responsibility for Scotland – allowing the country to raise all the money it spends.

Mr Hosie said:

“The only acceptable alternative to Barnett is full fiscal responsibility for Scotland, allowing the country to raise the money it spends. That is the best and simplest solution – anything less would be messy and unsustainable, and could well leave Scotland worse off.

“All parties recognise that the Barnett formula is no longer sustainable and should be replaced – but it must be replaced with a system of financial responsibility giving Scotland the powers over taxation, including oil and gas, and spending that are needed to effectively manage the Scottish economy.

“And the case for financial independence is reinforced by the most recent GERS report [Government Expenditure & Revenue Scotland] which demonstrate beyond doubt that Scotland has built up a surplus of 3.5 billion over a four year period, while the UK as a whole racked up a deficit of £72.3 billion.

“The bottom line is that we must not have another Westminster fix imposed which could leave Scotland worse off than at present – that is why independence and equality represent the best future for Scotland, and why the SNP are the leading party in Scotland.”

Commenting after the Chancellor of the Exchequer unveiled plans for £6.25 billion cuts in public spending – including £332m in Scotland – SNP Treasury spokesperson Stewart Hosie said details of the cuts reinforced the case for the Scottish Parliament gaining full control of tax and spending.

Mr Hosie said:

“These cuts are a warning of what is to come from the Tory/Liberal coalition, and totally reinforce the need for the Scottish Parliament to gain full control of tax and spending so that we can tailor our own growth strategy and boost government revenues. 

“The key to cutting the deficit is growing the economy, which is why cutting public spending now is the wrong approach. News that the deficit has fallen by £11 billion due to a generally better economic performance underlines why the Scottish Government is absolutely right to prioritise economic recovery and defer further cuts – on top of the £500 million made by Labour – so that we maximise jobs and recovery now.

“The Liberal Democrats fought the election insisting that cutbacks should only start when the economy is ready. The economy is not ready and now, like Labour, they are risking a double dip recession.

“Labour’s Finance spokesperson in the Scottish Parliament has made a huge blunder by siding with the Tories against the process of economic recovery and by calling for even more cuts on top of the £500 million his party already made to the Scottish budget this year. Labour are now part of the Tory/Lib Dem cuts coalition.

“With the likelihood that first quarter 2010 growth will be revised upwards, from the original 0.2 per cent, there is a risk that cutting now will choke off further recovery. Indeed, taking more than £300 million out of Scotland’s economy would jeopardise around 5,000 jobs.”

RIGHT-WING ALLIANCE TARGET SCOTLAND’S SPENDING

SNP Treasury spokesperson Stewart Hosie MP has seized on an admission by Conservative Scotland spokesperson, David Mundell MP, that the Conservatives support Labour plans to slash Scottish public spending.

Mr Mundell’s admission comes as a massive embarrassment to Scottish Tory MSPs who are backing the Scottish Government’s budget.

Commenting Mr Hosie said:

“David Mundell has made a massive political blunder with this admission of the Conservatives’ cash cutting agenda for Scotland.

“It is clear that the Conservatives agenda is little different from Labour’s plans to cut £1 billion from Scotland’s budget.

“Behind David Cameron’s smiles and spin, just like Labour, the Tories are set on cutting Scotland’s budget. David Mundell should be fighting the £1bn planned cuts to the Scottish budget, not backing them.

“Apart from being extremely irresponsible and counter-productive at a time of recession, David Mundell’s blundering intervention is also acutely embarrassing for Scottish Tory MSPs who are backing the Scottish Government’s budget.

“There is now no argument against fiscal autonomy for Scotland – the alternative is seeing our public spending being slashed year on year, and our public services being undermined.”

LABOUR SCOTTISH SECRETARY MORE INTERESTED IN PARTY POLITICS THAN OPPOSING TORY CUTS

Speaking following Scottish Questions today (Wednesday) SNP Treasury spokesperson Stewart Hosie MP said that Tory plans to slash Scottish public spending had been “exposed for all to see”. Mr Hosie said that the three almost identical questions – on the Barnett formula and Scottish spending – were a massive embarrassment to Scottish Tory MSPs who are backing the Scottish Government’s budget.

Despite these questions Labour Scottish Secretary Jim Murphy exposed his party’s right wing alliance with the Tories by indulging in a bout of negative scaremongering against the SNP – an action for which he was pulled up by the speaker for using his office for party political purposes.

Commenting Mr Hosie said:

”The Conservatives plans to slash Scottish spending have been exposed for all to see. They are little different from Labour’s plans to cut £1 billion from Scotland’s budget.

”Behind David Cameron’s smiles and spin, just like Labour, the Tories are set on cutting Scotland’s budget.

“Apart from being extremely irresponsible at a time of recession, these bitter attacks are also acutely embarrassing for Scottish Tory MSPs who are backing the Scottish Government’s budget.”

During Scottish Questions Mr Hosie also called on Jim Murphy to “stand up to the Treasury” and ensure that the £1bn planned cut to Scotland’s Budget was reversed. Mr Hosie highlighted comments by the Labour First Minister of Wales who conceded that the Chancellor’s spending plans will mean almost £300 million of cuts in public services for Wales.

Mr Hosie said:

“Rhodri Morgan realises that this is the wrong time to cut public expenditure, and Jim Murphy should recognise that too. A Secretary of State for Scotland worthy of the title would be fighting the £1bn of cuts to the Scottish budget, not defending them.

“Instead Mr Murphy showed his partisan streak by failing to defend Scotland against cuts and was pulled up by the Speaker for using his office for party political purposes. He just exposed how London Labour plan a huge £1 billion cut in Scottish spending.

“It is totally unacceptable for the Treasury to chop £1 billion from Scottish spending – especially at a time when Scotland is in budget surplus, contributing far more to the UK exchequer than we get back in return.

“There is now no argument against fiscal autonomy for Scotland – the alternative is seeing our public spending being eroded year on year, and our public services being undermined.”

TREASURY POWERS “VITAL” FOR ECONOMIC STIMULUS

SNP Treasury Spokesman Stewart Hosie MP today welcomed Reform Scotland’s call for greater fiscal powers and responsibility for Scotland, including the importance of borrowing powers for the Scottish Parliament.

In contrast to recent reports from the UK Government and the Calman Commission, Reform Scotland recommends further devolution of fiscal powers to Scotland and highlights the importance of borrowing powers to the Scottish Government.

“The lack of fiscal powers limits the Scottish Government’s ability to respond to changing circumstances such as those caused by the “credit crunch”. With no borrowing powers and the total budget for Holyrood determined at Westminster, there is little that can be done by the Scottish Government to provide a stimulus to the economy such as cutting taxes or increasing public sector spending or bringing forward public sector investment.” (page 19)

Commenting on the report, Mr Hosie said:

“This report is a welcome recognition of the constraints of the current devolution settlement on the Scottish Parliament and Scotland’s economy at this crucial time and backs up the SNP’s demand for full Treasury powers.

“As the current economic situation has highlighted, the Scottish Parliament must have the power to borrow if it is to be able to manage Scotland’s economy through good times and bad.

“Similarly the ability of the Scottish Government to retain any revenue surplus for use in future years would be a significant improvement on the current problems of Scottish Government underspend being withheld by the Treasury.

“This is a welcome contribution to the debate and part of a growing body of opinion calling for borrowing powers for Scotland. I am confident this report will be considered carefully by the Scottish Government’s National Conversation, I hope the Calman Commission will do the same.”

Commenting on David Cameron’s proposals to impose public spending cuts in 2010/11, the Scottish National Party’s Westminster Treasury Spokesperson Mr Stewart Hosie MP said:

“The Tories have been shown up in their true colours as slashers of public services.

“And every pound of spending cuts they imposed on health, education and housing south of the Border would have an impact on the Scottish Parliament’s budget north of the Border. If the Tories had their way, the Barnett Formula wouldn’t just squeeze Scottish spending – it would cut Scotland’s budget.

“Scotland already more than pays its way in the UK, as proved by the latest Government Expenditure and Revenue Scotland (GERS) report – which shows that Scotland paid more than £800 million to the UK Treasury than it received in 2006-07, and in a substantially stronger budget position than the UK as a whole.

“David Cameron’s cuts agenda shows exactly why Scotland needs to move towards full fiscal autonomy, so that the Scottish Parliament is responsible for Scotland’s resources.

“It is essential that the Scottish Parliament gains control over Scotland’s finances, as well as borrowing powers to allow it to respond to economic circumstances, which it can’t do within a fixed budget. The need for such powers is glaringly obvious given the downturn – and now even more clear in light of the Tories’ plans to slash spending on vital services.

“This development underlines the toothless nature of the suggestions emanating from the Calman Commission – which would leave Scotland exposed to damaging decisions taken by Westminster governments of whichever party.

“And it leaves the Scottish Tories completely exposed – with no say over the policy, but having to defend proposed spending cuts in Scotland because of the failures of UK economic policy.”