Sturgeon: Labour must break 'cosy consensus' on austerity to win over SNP
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Version 0 of 1. A Labour government would have to break the “cosy consensus” around austerity in order to win the support of Scottish National party MPs after May’s general election, according to Nicola Sturgeon. Scotland’s first minister said the SNP, which recent polls suggest could hold the balance of power after May’s Westminster election, would require Ed Miliband to adopt a more radical approach to deficit reduction if he wanted the backing of SNP MPs. Before a keynote speech at University College London on Wednesday, Sturgeon suggested an alternative approach to austerity for the next parliament could result in £180bn extra being spent on public services by 2020. She said that by allowing “modest, responsible increases in public spending” of about 0.5% in real terms, “debt and deficit would still be falling as a percentage of GDP over these years but we would free up something in the region of £180bn over the UK to invest in infrastructure, in innovation, in growing the economy”. Sturgeon told BBC Radio 4’s Today programme: “I would certainly hope if there was a Labour government and it was dependent on SNP support – which is the most popular preferred outcome of people in Scotland – then I would hope we could persuade and influence a Labour government to take a more moderate approach to deficit reduction.” “I am not going to support governments that plough ahead with austerity that damaged the poorest in society.” In the speech, Sturgeon, will outline her government’s alternative approach to deficit reduction when she makes a full-throated attack on Westminster’s austerity agenda. Sturgeon will say the UK government’s economic policy has failed “categorically and comprehensively”, and that she believes Scotland can now exert “a beneficial influence” on developments in London. “The current UK government’s economic policy has failed even on its own terms. It has failed to reduce the deficit as planned and it has failed even more comprehensively to rebalance the economy. Economic policy is a means not an end; it is the means for citizens to lead happy, healthy, fulfilling lives. “The entire focus of the Westminster debate is on the deficit. Now, the deficit is hugely important. But it is a symptom of economic difficulties, not just a cause of them.” Adding that the human cost of austerity is too high a price to pay, she will say: “It’s simply untrue to say that we are ‘all in this together’. The cuts have had a disproportionate impact on women, people with disabilities and people on low incomes. The most vulnerable are bearing the heaviest burden.” Sturgeon is expected to outline the Scottish government’s own alternative deficit-reduction proposals, as well as highlighting the importance of boosting productivity and gender equality in the workplace, referring to mounting international evidence showing that more equal countries are better at fostering economic growth. She is expected to say: “The Scottish government proposes a different approach. We simply don’t accept that there’s a trade-off between balancing the books and having a balanced society; fairness and prosperity go hand in hand.” “The Scottish government’s approach is part of a growing international consensus. IMF [International Monetary Fund] research – examining 173 countries over 50 years – has shown that more unequal countries tend to have lower and less durable growth. It is basic common sense that as a society we will do better if we can benefit from the skill, talent and innovation of all of our people.” Referring to the huge changes to the political landscape in Scotland as a result of last year’s independence referendum, she will add: “After a momentous 12 months in Scotland, we will see a hugely significant 12 months across the whole of the UK. And I hope that Scotland can again exert a beneficial influence on developments here in London. “So we will make the case for a more rational economic policy at Westminster and we will use the powers we have in the Scottish parliament to pursue a different approach – one based on partnership, fairness and prosperity. And that is something which will bring benefits to Scotland, and to all of the UK.” A Liberal Democrat spokeswoman for the Scottish secretary, Alistair Carmichael, challenged Sturgeon to be more explicit about her plans, insisting that the coalition’s deficit-reduction strategy is working. “The first minister says that she will lay out an alternative to deficit reduction – and then doesn’t. All the bombast in the world will not change the reality that the UK government’s economic strategy is working. Whether Nicola Sturgeon likes it or not, this government has cut borrowing by £52bn from the level we inherited.” |