Article
Scottish Labour pledges to save £2.2bn and banish youth unemployment
Party on a 'moral quest' to shrink public sector and thus free up cash to spend creating 250,000 new jobs and apprenticeships
Scottish Labour leader Iain Gray, left, and SNP leader Alex Salmond together before a TV debate. Photograph: Andrew Milligan/PA
Labour has promised to eradicate youth unemployment in Scotland by saving more than £2bn and shrinking the public sector as part of a "moral" quest to protect the economy and frontline services.
The party claims it can squeeze £2.2bn in efficiency savings from public services – partly through merging Scotland's eight police and fire services, and closing health boards – and divert that money to create 250,000 new jobs and apprenticeships over the next five years.
Iain Gray, the Scottish Labour leader, attempted to simultaneously position the party as the toughest on public spending while remaining the most effective opponents of the Tory-led government in Westminster when he unveiled Labour's manifesto for the 5 May election at Clydebank College near Glasgow.
Gray said the college was built on the site of the now demolished John Brown shipyard, part of an industry which became symbolic of "the economic vandalism" of Tory governments.
The yard was bailed out by Ted Heath's government after the Clyde shipyards work-in. It closed for business in 2001, under Labour.
Claiming that Labour had set up Holyrood in 1999 as a "barrier to the excesses of the Tories", Gray said only Labour could effectively defend Scotland against the cuts introduced by Westminster.
"I tell you, the last thing the Tories want is a Labour government in Scotland," he said.
Describing his party's manifesto as a "serious document for serious times", Gray said he would "undertake the most radical programme of public sector reform since Labour created the Scottish parliament".
That would involve job losses, he admitted. "There are difficult choices here and difficult choices ahead."
Gray is hoping to win Labour's first significant political victory since the general election defeat and the election of Ed Miliband as UK party leader by retaking the Scottish parliament.
Labour narrowly lost power to Alex Salmond and the Scottish National party by a single seat at the 2007 Holyrood elections.
Most opinion polls put Labour clearly ahead of the SNP in this campaign. It has been the greatest beneficiary of a steep slump in support for the Liberal Democrats after they formed a coalition at Westminster.
Many observers believe the Lib Dems, who launched their campaign on Tuesday pledging to create 100,000 new jobs, will lose about six of their 16 seats at Holyrood, with most expected to go to Labour.
But Labour strategists believe the polls overstate the extent of its lead. They admit the party has failed to match the SNP's publicity campaign: the nationalists won another coup when the Scottish actor Brian Cox, who described himself as a lifelong Labour supporter, endorsed the nationalists.
Gray tried to kill off complaints that Labour has been far too timid by setting out proposals to create one police force and one fire brigade; to force councils to share services; to merge and close health boards; to cut £100m from the NHS drug bill; and to merge local social care services into one national service.
He also confirmed he would allow councils to increase council tax from 2013 – a pledge so far avoided by other parties, but one which will be seized on by the SNP. Council tax has been frozen in Scotland since 2007.
He also promised to cut his own pay as first minister and that of all other ministers by 10%.
However, plans to reform council tax or introduce a new local taxation system have been abandoned for the next parliament.
Gray hopes the reforms will be welcomed by voters as a necessary price to achieve the anticipated but still highly speculative savings of £2.2bn by 2015 in order to spend on frontline services and the economic recovery.
The Scottish government's £30bn budget is also due to lose a total of £1.2bn by 2015, but Labour still claims its efficiencies and cuts would release nearly £700m in so far non-allocated savings by 2015, which it would spend on as yet unspecified areas.
Labour estimates it will lay out £150m on reaching the full youth employment target, introducing a public sector minimum wage of £7.15 an hour and adding 250,000 jobs.
The new "Scottish living wage" would cost £20m a year while a new Scottish future jobs fund – creating 12,500 new apprenticeships – would cost £10m annually, plus an extra £12.5m a year in 2013 and 2014.
The party also claims to have the most generous policies on student funding, including a new maintenance allowance for college students and 1,000 new specialist literacy and numeracy teachers for schools.
But Gray refused to accept warnings from Scotland's university principals that they face a spending gap of at least £200m after English universities introduce new, higher tuition fees.
Gray said his spending plans were based on the much lower £93m figure used by Salmond's government.
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User Comments
BrownOutNow
6 April 2011 7:08PM
"I tell you, the last thing the Tories want is a Labour government in Scotland," he said.
I'll tell you the last thing Scotland needs is yet another Labour Government creating dependency through benefits and public sector employment.
Still with some areas of Scotland with a bigger percentage of people working for the state than the former soviet union, never mind the vast numbers receiving benefits from the state, Labour could enter a dog for election in some areas of Scotland and win.
God help Scotland....
BrownOutNow
6 April 2011 7:17PM
a new Scottish future jobs fund – creating 12,500 new apprenticeships
Wait a minute... Isn't that a Tory policy? Do Labour have any of their own?
JohnMcDonald
6 April 2011 7:24PM
And no mention of the latest polls showing the SNP catching and even overtaking Labour.
But then it is the London Guardian.
kvlx387
6 April 2011 7:48PM
Odd stuff you read in the papers these days:
Labour has promised to eradicate youth unemployment in Scotland by saving more than £2bn and shrinking the public sector as part of a "moral" quest to protect the economy and frontline services.
The party claims it can squeeze £2.2bn in efficiency savings from public services – partly through merging Scotland's eight police and fire services, and closing health boards – and divert that money to create 250,000 new jobs and apprenticeships over the next five years.
So, in Scotland, you can have efficiency savings that are good and don't impact on front-line services. But when it comes to Westminster, such things are labelled 'savage cuts' by Ed Balls.
And, apparently, in Scotland it's right to shrink the public sector. Which Labour labels an 'attack on public services' in Westminster.
Well, well!
biggraham
6 April 2011 8:11PM
Labour puts people first.
Tories put money first.
There is no shortage of money.
What is more important money or people?
Why are so many people happy to live in a plutocratic society?
AmberStar
6 April 2011 8:31PM
Tories delight in mocking the idea that all cuts are not the same & love telling us, "there is no alternative".
Scotland can lead the way in showing the public that there is a better way & it need not be those with the least who suffer the most!
ObmitKropotkin
6 April 2011 8:42PM
They can put youth unemployment in the museum cabinet of things Labour abolished. Right next to "Boom and Bust".
JonDess
6 April 2011 9:17PM
"Abolishing unemployment"- even of a certain category is a very lofty aim, and probably completely unattainable, but Labour ain't in power so can promise the world and then claim SNP have "spent all the money" while they backtrack on their policies - if they get in. Don't fall for it - its all guff and hot-air. SNP have the better policies and have run a good government over the past 4 years - time for some more decent government, vote SNP.
DannyO
6 April 2011 9:24PM
I think an SNP-Conservative coalition is probably the best option available, the Tories will be able to keep a check on the more mad-nationalist parts of the SNP, and it will be a chance to box Red Ed's ears and show him that he can't just waltz into downing street with no credible economic plan.
DannyO
6 April 2011 9:27PM
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Haver
6 April 2011 11:19PM
More Labour misrepresentations.
We already have a public sector minimum wage of £7.15 an hour.
They claim they will create 250,000 jobs. That is more jobs than there are unemployed in Scotland. If this is so simple, why did they not do this when they were in power for a full eight years? Gray's fantasies aside - Where will these jobs come from? Do they intend to create more public sector non-jobs at taxpayers expense? Or; is it just more Labour lies?
They claim they want to create a Scottish future jobs fund – creating 12,500 new apprenticeships- yet they voted against the SNPs extra 25,000 new apprenticeships in the Scottish parliament.
All in all it's a manifesto of uncosted, empty promises that they have no intention of fulfilling.
Gray has promised to cut his pay by 10%. It's a good job he's not living by his wits - he'd need to cut his pay by half.
joe5000
7 April 2011 1:20AM
By my sums, £2.2B to create 250k jobs is about 9 grand each. Not enough to even pay someone minimum wage, never mind the total costs of employment.
And bear in mind that a lot of these 'inefficiencies' are all the made-up jobs designed to keep otherwise useless people out of the gutter.
MelKelly
7 April 2011 6:15AM
Scotland also intends to set up a Scottish Savings Bank (a people's bank) to allow Scottish savers to find a safe haven for their money.
Scotland also intends to force the government to allow Scots to put their Personal Pension payments (starting next year) into this bank, rather than the NEST fund - which is to be run by city bankers - yes the Tory government is going to take a further 5% out of the economy and our wages next year and hand it to city bankers).
The Scots are going to invest their pension money in the Scottish economy - instead of the stock market - to ensure the Scottish economy booms.
The Scottish Savings Bank will have billions in pension funds to invest (as many existing council pension funds are hoping to move to this safe haven).
This money is going to be used to lend to Scottish business, fixed rate mortgages and small personal loans (the small personal loans will do away with the need for overdrafts, door step lenders, loan sharks and pay day loan companies and will offer better rates than high street banks)
The pension accounts will have fixed rate interest to ensure growth - and no management fees - remember current private pension providers take about 80% of our pension payments in management fees.
Scotland is also looking at forcing the government to increase the duty on alcohol sold via off-licences (Tesco etc) and reducing the duty on petrol as a result (as the country runs on Petrol not alcohol). This will benefit Scotland's health service, Scottish business and the whole Scottish economy. This will reduce inflation and we will all benefit.
Scotland is also looking to introduce free transport for the unemployed and low paid as many people cannot get work locally and as public transport is so expensive they cannot afford to travel to find work. And - even if they could - if they are on a minimum wage the transport would take about 30% of their wage - just to get to work. People are not lazy and they are not greedy. They want to work and are willing to travel to work - and Scotland will not say get on your bike - instead it is saying you are welcome on the buses.
(this policy will mean those who cannot afford to take a low paid job because of transport poverty - will now be able to take the job, pay their council tax, rent, tax, NI, feed their family and no longer be claiming benefits. Councils win, employers win, the unemployed win and all for the price of a national travel pass.
Scotland is also looking change council tax payments to give people the option to pay over 12 months instead of 10 (as every other monthly bill is rising this will help people manage their monthly budgets)
These are all practical policies that Scottish politicians are brave enough to implement - to ensure growth in the economy and a mobile workforce and at last a safe haven for our pensions and our savings.
johnie55
7 April 2011 8:36AM
If these are the same promises that the labour liar Blair made,god help Scotland
bobb4you
7 April 2011 11:40AM
"I tell you, the last thing the Tories want is a Labour government in Scotland," he said.
And with that I suddenly found something I could agree with the Tory party about...
GenHernandez
7 April 2011 1:07PM
"I tell you, the last thing the Tories want is a Labour government in Scotland," he said.
Surely, as Unionists, a Labour government in Scotland validates the Tories claim to govern the whole of the UK?
DIRebus
7 April 2011 2:26PM
Scottish labour are a total joke, anyone with half a brain can see right through them. Andy Kerr's grilling by Gordon Brewer showed them for what they are, a bunch of bigger charlatans than Tim Burgess! Anyone see Iain Gray being heckled at Glasgow Central today?
rouser
7 April 2011 6:14PM
i,l tell you the last thing in scotland the tories want ,is a labour goverment!
dont be so sure IAN GRAY the last four years under a,n snp led coalition
has had westminster at odds with it,s self with scotland getting more bobbies
on the beat. smaller class sizes. free bridge tolls free prescription charges.
and much more. some you have BLOCKED some you did a U TURN on
but the ace in the hole the one you cant use against the TORIES is INDEPENDANCE. the one thing they are most frghtened of,
so when england go down the drain with this knee jerk goverment taking us with it , with you we will have to fold our tents and go, as danny alexander needs our land as well as our oil .na GRAY FELLA we,l stick with ALEX .and maybe
scotland will get the benifits of the new green wave and tide technolagy.
rouser
7 April 2011 7:13PM
the bloggs have stoopped dont blame me i hate being the last blog
how did UKIP GET INTO SCOTLAND..ANSWERS PLEASE.
BrownOutNow
6 April 2011 6:59PM
Banish unemployment!!!!!
LaLa land Labour economics at it's very best.
HOORAY
Scottish Labour must have succeeded in the quest for the mystical socialist money growing tree.
Now we can all go work in the public sector/get paid by the government, receive never ending magical pensions and never have to worry about anything ever again.
Three cheers for the magical money tree and all it brings....