Scotland's Budget must deliver for workers, says STUC chief

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It read the following: please provide high-quality public services, use the devolved revenue-raising powers of the Scottish Parliament and commit to a revaluation of Scotland’s housing which can finally end the punitive, illogical council tax and replace it with something more proportional. Granted, not your usual Christmas wishes but it’s better than a Lynx Africa gift set. And credit where it is due for delivering for those in need. We commend the Scottish Government for reinstating the Winter Fuel Payment. This will spread some much-needed Christmas cheer.

In doing so, it highlights completely the UK Labour Government’s damaging choice to cut this essential support, which has done nothing more than to compound struggling pensioners in poverty. By reversing this cut, at least to some degree, the Scottish Government has shown what can be achieved when devolved powers are used to support the principles of fairness and social justice. Now, of course, we would have liked this to be in place immediately and not have to wait until next year for it to kick in but at least it’s an example of policymaking that differentiates our Scottish and UK Governments.

However, this policy comes at a cost. Every million spent on mitigating this measure is money we won’t have to spend on key public services. Labour MPs have been shouting loudly that the Scottish Government must use every penny of the consequentials from increased health spending on the NHS. Meanwhile, the Labour Party up here appears to think that some of that spending should be diverted to ... er ... reinstating the Winter Fuel Payment. Call me a cynic, but on both sides of this debate, there is a distinct whiff of electioneering in the air.

The Scottish Government ministers demanded more money for public services and got it.  But the SNP have since spent the following weeks criticising most of the revenue raising measures which delivered it, from National Insurance increases to Inheritance Tax on farmers.  They opposed the Windfall Taxes on oil companies too.

With an additional £1.5 billion in resource spending this year alone and a projected £5 billion by next year, the Scottish Government has at least some of the cash it needs. The Westminster blame game is melting away like the festive frost.

The truth is that neither government has yet had the electoral courage to state the obvious. Pressure on our public services and the need to invest in the renewable economy are with us for the long haul. We are going to have to pay more taxes.

Deputy First Minister Kate Forbes is Cabinet Secretary for Economy (Image: Jeff J Mitchell) That’s why we need more than isolated wins and we need much more than the Scottish Government using finite resource to just mitigate bad Westminster decisions. We need a cohesive strategy to fully utilise Scotland’s fiscal and economic powers to transform our economy and improve the lives of working people.

If, like us, the Scottish Government has a vision of better funded public services, it must fully embrace its revenue-raising powers, including progressive taxation. We got a flavour of this last year when we successfully argued for an increased income tax band for higher earners. But it didn’t go far enough. This isn’t just trade union, left leaning dogma: this is research based.

Polling reveals that a majority of people across the country support raising the top rate of taxes on higher earners. More to the point, research shows that people support higher taxes if the revenue is directed toward equitable outcomes, such as improving health care, education, and social care.

And whilst premature, empirically soft reports on tax revenues not generating as much as expected permeate the discourse, we can’t lose sight of the fact that the dominant economic model of the past 40 years from governments - prioritising corporate interests, deregulation, and free-market economics—has proven to serve the select few. The era of austerity economics must be left behind. Instead, we need a model of growth driven by investment in public services, fair wages, and secure jobs.

Public services are not a drain on resources; they are the foundation of a healthy, prosperous society. Investment in education, healthcare, and infrastructure creates a ripple effect, fostering economic stability and growth. Simply put, when you give working people a fair wage, security and assurance, they’re far more likely to spend that wage in our local and regional economies, thereby fostering growth.

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If we have a Christmas message to spread therefore, it’s for the Finance Secretary to consider the levers of power she has and to keep the promises she made to the workers of Scotland. That includes the promises on better pay for social care workers. That includes the promise to feed the hungry school pupils of Scotland with a free school meal. That includes a promise to fund our creative arts sectors despite the cuts foisted upon them.

That Christmas message also extends to all MSPs debating this budget: we urge you to think beyond short-term political calculations and focus on the long-term interests of Scotland’s people. Support measures that raise revenue through fair taxation. Demand investment in public services that strengthen communities and create opportunities for all. Reject the failed ideologies of austerity and deregulation and embrace a vision of growth that benefits working people.

And with that, the Christmas bells will ring and peace on earth will reign. Until Parliament comes back from recess, at least.

Roz Foyer is general secretary of the STUC