Dundee’s SNP politicians today reacted to an economic analysis produced for the Scottish Government which revealed that the UK Government Emergency Budget introduced by the Con / Lib Dem Coalition at Westminster is already impacting most on the vulnerable and least well off.
Dundee East MP Stewart Hosie, a member of the Treasury Select Committee, said: “This Emergency Budget from the Con-Lib Dem Coalition will be very damaging to those least well off in Scotland.
“The rise in the standard rate of VAT from 17.5% to 20% which will come into effect from January 2011 will cost the average Scottish household £380 a year. And it will have a disproportionate impact on poor households.
“About 1.6 million in people in Scotland are likely to have income rises suppressed as a result of the adoption of the consumer price index (CPI) instead of the retail price index (RPI) as the basis for calculating increases in welfare payments.”
The analysis shows that the Emergency Budget will have an impact on those receiving benefits, a fact which deeply concerned Dundee East MSP Shona Robison.
Commenting on the impact on benefit payments, Shona Robison said: “Around 621,000 families in Scotland will have their income cut as a result of the three-year freeze in child benefit, and again the biggest impact will be on the least well off.
“Households with total income above £25,000 will see their benefit entitlement cut from April 2012 as a result of the combined effect of freezing child benefit and restricting child tax credits.
“In Dundee, across both Holyrood constituencies, there are 11,220 people in receipt of DLA at either the higher, middle or lower rates.
“Since an objective medical assessment will be introduced for Disability Living Allowance from 2013-14, it is estimated that up to 10,700 people in Scotland may lose their entitlement to DLA in 2013-14, rising to 31,700 in the following year. This is bound to have a big impact in Dundee.
“It is vulnerable households and families across Scotland which are being asked to bear the brunt of these Tory/Lib Dem cuts – and there are more cuts to come. This is only the start of the Westminster cuts. This analysis produced for the Scottish Government shows the extent to which the least well off people in Scotland are already being hit by these cuts from the UK Government.”
Commenting on the damaging effects of the Budget overall, Dundee West MSP Joe FitzPatrick said:
“This report on the impact of the cuts coming from the initial Emergency Budget are, unfortunately, just the start. They underline the case for Scotland being given responsibility for its own finances.
“The case for economic and financial responsibility is gaining more support all the time, with some of Scotland’s leading business people and trade union figures in favour.
“Giving Scotland’s Parliament and Government the economic and financial tools would enable us to make the right choices to grow our economy and protect the poorest in Scotland.”
“Scotland needs the powers of financial responsibility so that we can boost growth in the Scottish economy – generating higher tax receipts to invest in the public services we all value – as the only alternative to the entirely dismal prospects from Westminster.
“That is the debate in Scotland – and that is why the centre of gravity in Scottish politics continues to shift towards independence.”