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Warning over Scottish Budget cuts | Warning over Scottish Budget cuts |
(3 days later) | |
Union leaders have warned cuts in public services would be a "disaster" which could hit Scotland's communities. | Union leaders have warned cuts in public services would be a "disaster" which could hit Scotland's communities. |
The warning comes just days before Chancellor Alastair Darling delivers his Budget. | The warning comes just days before Chancellor Alastair Darling delivers his Budget. |
On a recent visit to Glasgow, Prime Minister Gordon Brown faced criticism over £500m worth of proposed cuts planned for Scotland next year. | On a recent visit to Glasgow, Prime Minister Gordon Brown faced criticism over £500m worth of proposed cuts planned for Scotland next year. |
Grahame Smith, of the STUC, said the budget for Scotland should include tax cuts for low-paid workers. | Grahame Smith, of the STUC, said the budget for Scotland should include tax cuts for low-paid workers. |
Mr Smith, general secretary of the STUC (Scottish Trades Union Congress), which is holding its annual congress in Perth on Monday, said the "fiscal stimulus" should also contain increases in benefits. | Mr Smith, general secretary of the STUC (Scottish Trades Union Congress), which is holding its annual congress in Perth on Monday, said the "fiscal stimulus" should also contain increases in benefits. |
Cuts in funding for vital public services would be a disaster which Scotland's communities will feel for many years to come Grahame SmithSTUC | Cuts in funding for vital public services would be a disaster which Scotland's communities will feel for many years to come Grahame SmithSTUC |
Mr Smith said both the Budget on Wednesday and the Scottish Government's policy answer to it would be "the next test of whether the response to the recession is on track". | Mr Smith said both the Budget on Wednesday and the Scottish Government's policy answer to it would be "the next test of whether the response to the recession is on track". |
He said the STUC was calling for a fiscal stimulus of about 2% of GDP to bring the UK in line with the international average. | He said the STUC was calling for a fiscal stimulus of about 2% of GDP to bring the UK in line with the international average. |
"This should focus on tax cuts for low-paid workers, benefit increases, public works programmes, short-time working incentives and enhanced support for the unemployed," he said. | "This should focus on tax cuts for low-paid workers, benefit increases, public works programmes, short-time working incentives and enhanced support for the unemployed," he said. |
"These measures will provide direct support for those hit hardest by recession, boost demand and help prepare the economy for the challenges of the future." | "These measures will provide direct support for those hit hardest by recession, boost demand and help prepare the economy for the challenges of the future." |
But he also warned: "Cuts in funding for vital public services would be a disaster which Scotland's communities will feel for many years to come." | But he also warned: "Cuts in funding for vital public services would be a disaster which Scotland's communities will feel for many years to come." |
'Urgent need' | 'Urgent need' |
The STUC is planning to launch its Agenda for Rebuilding Collective Prosperity, with the organisation urging civic leaders, community and campaigning organisations to back the initiative. | The STUC is planning to launch its Agenda for Rebuilding Collective Prosperity, with the organisation urging civic leaders, community and campaigning organisations to back the initiative. |
The agenda aims to put the interests of Scotland's workers and those who are out of work first. | The agenda aims to put the interests of Scotland's workers and those who are out of work first. |
The STUC will also work to develop and promote policy in a number of key areas, including tackling poverty, rewarding work, fair taxation, excellent public services for all and a fairer global economy. | The STUC will also work to develop and promote policy in a number of key areas, including tackling poverty, rewarding work, fair taxation, excellent public services for all and a fairer global economy. |
Mr Smith said: "The current crisis proves that there is an urgent need to create a new economic architecture in Scotland and the UK that reconnects a strong, flexible economy to the living standards of all, not just to residents of the penthouse. | Mr Smith said: "The current crisis proves that there is an urgent need to create a new economic architecture in Scotland and the UK that reconnects a strong, flexible economy to the living standards of all, not just to residents of the penthouse. |
"Through sharing policy and holding events and briefings, we aim to engage with wider civic Scotland and its communities in the formation of a new vision for collective prosperity in Scotland and across the UK." | "Through sharing policy and holding events and briefings, we aim to engage with wider civic Scotland and its communities in the formation of a new vision for collective prosperity in Scotland and across the UK." |
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