SNP unveil another cuts budget at Holyrood

By Matt Dobson

The SNP-led Scottish government unveiled another austerity-laden budget on 12 December. It is not clear whether the budget will be agreed, as the SNP minority government need either the support of the Greens or the Liberal Democrats to pass it in the new year. 

The SNP again refused to use the parliament’s income tax powers to raise taxes on the richest in society. They also cut the business rate. 

Finance minister Derek Mackay, under serious pressure, raised funding for the NHS. But it won’t be enough. The NHS in Scotland faces a serious crisis. There is massive underfunding, over working of staff and health boards across the country going into deficit. 

There will be continuing anger against the paltry continuation of the 3% pay offer for public sector workers. The SNP government is facing industrial action by teachers and council workers over this issue. 

COSLA, the national local government body, have stated that this budget represents £175 million of real terms cuts to local government, after previous massive cuts to Scottish councils under the SNP over the last ten years. This did not stop Mackay claiming this budget was an attempt to resolve the previous underfunding of local government. 

Scottish Labour, now under the left leadership of Richard Leonard, missed an opportunity to put forward a fighting socialist alternative to SNP austerity.

They put forward laudable limited policies under the banner of a “budget for the many not the few”. Labour demanded that the Scottish government end the two child benefit cap and proposed the topping up child benefit.

However the Scottish Labour proposals were without any commitment to use the parliament’s financial powers, including taxation, to stop cuts and build a fighting campaign to demand more funding from Westminster.

Scottish Labour were present at the trade union protest on budget day but until there is a change in the practice of Labour councillors carrying out cuts in councils they control, such as North Ayrshire and North Lanarkshire, they will have no real anti-austerity credibility. 

In these councils, rather than fight cuts from Holyrood, Labour administrations have used council tax, rent and service cost rises – in reality other forms of austerity – to balance budgets. 

If the Scottish Greens support the SNP budget in the new year it will be the third Scottish government budget in a row they have supported that contain large scale cuts, protects the richest from tax rises. So much for the Greens supposed radicalism. 

Working-class action

Public sector workers and working class communities can and must rely on their own strength to mobilise. We have seen the marvellous example of the mass equal pay strike in Glasgow in October, which has brought the SNP-led council to the table.

Days later, 30,000 teachers marched against the insulting 3% pay offer. Local government trade unions have also rejected the 3% insult from the employers. The STUC and trade union leaders must seize the moment and organise co-ordinated national strike action. 

Mackay speaking on the budget, attempted to focus sole blame on the Tory government and said opposition parties who want additional money for spending need to outline where the cash would come from.

He was clear that the SNP “cannot completely protect Scotland from the recklessness of the UK government”. By accepting the logic of capitalist austerity this will always be the case.

Only a clear fighting strategy with socialist policies backed by the mass mobilisation of the trade unions, wider working class and youth can effectively confront and reverse austerity in Scotland and win back the £3 billion stolen from Scotland by the Tories. 

Socialist Party Scotland calls for the Scottish Government and local councils to set no cuts budgets utilising all financial powers including reserves, borrowing, underspends, renegotiation of debt and cancellation of PFI/NPD projects to stop cuts.

Using the income tax powers of the parliament to tax the super wealthy, currently 1% of the population own 50% of the wealth. This would have to be linked to public ownership of the major industries and utilities as part of a socialist plan for the economy. 

The budget debate took place amidst the drama of the civil war erupting in Westminster in the Tory party and the deep divisions over the Brexit deal.

This weak government could be toppled if key tasks are carried out by the Corbyn leadership of Labour. Campaigning in and outside parliament for a general election, driving out the Blairite pro capitalist wing of the party with mandatory re-selection and putting forward a clear socialist exit from the pro bosses EU.