Kate Forbes: ScotGov must "do more with own powers' to end poverty

It comes as it emerged that child poverty rates remain at the same level as when the SNP swept to power nearly 16 years ago.

Published in collaboration with the respected pro-independence think tank and advocacy group Common Weal the backbench SNP trio, described by some as 'rebels' comes in advance of the Scottish Government's mini programme for Government expected from Tuesday.

Figures show one in four children remain in poverty while “persistent” deprivation is gradually on the rise.

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Some 24 per cent of children living in Scotland were in relative poverty, after housing costs, between 2019 and 2022. Although the figure has fluctuated in recent years, the proportion was exactly the same between 2007 and 2010.

And working age poverty stands at 21%, up from 19% between 2018 and 2021.

Ms Forbes group's vision is of an economic system which aims at placing wellbeing of current and future generations at its core and the group say the key is to deliver an economy "with a purpose and that purpose being the eradication of poverty in our society".

They say this is created by "wealth generation and distribution through good wages and fair taxes".

"This is very different from a laissez faire approach to economic development where government ‘sets the conditions’ and then gets out of the way. In contrast we believe there is a fundamental place for the role of government and its agencies in driving forward the economy – as a player on the ‘park’, part of ‘Team Scotland’, and not sat on the side-lines.

"And of critical importance, to walk the walk, with excellence in delivery, not just abstract strategy as is often the case."

It stresses the need for the Scottish Government to push forward using the powers it has.

Kate Forbes

The analysis acknowledges that Scotland can do more with full power of independence, with control over economic levels, immigration, employment law, borrowing and investment, energy, trade and social security.

But the group added: "But we can, and should, do more with the powers we currently have.

"Steering the economy requires clarity on destination, alongside an approach built on an understanding of how all parts of the complex mechanism best work together.

"Dogma, of whatever persuasion, is unhelpful. There are, believe it or not, those who see this debate as some kind of culture war. Where for one ‘side’ to succeed the other has to lose, and be seen to lose.

"The reality is very different. Everyone has a vested interest in tackling poverty, protecting the environment and building strong and healthy communities and businesses.

"A government that is serious about delivering a real wellbeing economy understands that and acts accordingly, getting beyond the soundbites.

"Growth that supports our poverty reduction and environmental aspirations is essential."

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The economic blueprint comes after Ms Forbes turned down the rural affairs brief offered by First Minister Humza Yousaf after he narrowly defeated her in the SNP leadership race.

The offer was seen by some as an attempt to demote his former leadership rival.

Mr McKee quit the Scottish Government after being offered a job he considered a demotion.

Common Weal welcomed the analysis saying: "The vision Kate Forbes’s team sets out is close to the kind of vision Common Weal has for Scotland’s economy.

"While we might go further, if the Scottish Government took this approach to economic development and business support it would move Scotland a substantial way in the kind of direction we think our economy should go.

"Common Weal has long fought against the idea that you can either take a left-minded approach or be pro-business, not both. We think this shows how it is possible to do both.”

Ms Forbes' group says that Fair Work, a concept that meets the rights of workers, supports staff wellbeing, and provides people with a voice was "central to Scotland’s economic ambitions, not just because it is fundamental to tackling poverty, but because in economic terms it works".

They say international comparisons show that economies that perform well on well-being indicators "including our Scandinavian neighbours, who also have the highest productivity".

They said: "In other words ‘fairer and greener’ goes hand in hand with ‘wealthier’.

"These aren’t opposite, they are two sides of the same coin. In fact the evidence shows that, provided government plays its part to ensure everyone is able to be part of a successful economy, they mutually reinforce each other."

Ms Forbes' group said that a Scottish economy powered solely by renewable energy, with surpluses exported – as electrons or green hydrogen - to supply the energy needs of UK and European neighbours, and generate income for Scotland’s finances, "is within reach".

"We would argue that there are two underpinning objectives, or outcomes, that our economic strategy, and policies, have to deliver," she said.

"To eradicate poverty, including reducing financial pressures on those who are ‘struggling to get by’, and to deliver our environmental ambitions, including Net Zero and biodiversity.

"In summary an economy that serves people and the planet.

"Alongside these the wellbeing economy should also ensure the financial capability of government to fund high quality public services, strengthen communities and support a good work-life balance "Poverty, and addressing the cost of living crisis, is primarily tackled through three distinct sets of policy levers. Increasing wages, targeted social security support and reducing household costs – in particular, energy costs.

"All three depend on a successful economy, the first directly and the other two through the revenues generated from a strong and growing tax base."

Mr McKee who said that the study was meant to be a "positive contribution" to the economic debate added: "This contribution outlines where we believe government needs to focus to deliver on this progressive economic age."

Ms Thomson said: "The principles outlined are things that we all feel very strongly about."