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Phantom Funding, a Flawed System and VAT Relief

Halt Universal Credit in Stirling

By Stirling Constituency MSP, Bruce Crawford

Last week, the Tory Chancellor detailed a Budget with an economic forecast for the UK that, to say the least was gloomy in its outlook.  UK growth is set to slow down considerably – meaning that, in terms of growth, the UK is lagging behind much of Europe and the rest of the economically developed world.

One major issue that emerged from the Budget that must be must be addressed, head on, is the phantom £2 billion of additional funding to be given to Scotland. After 10 years of cuts to Scotland’s budget totalling £2.9 billion, I would have welcomed any real increase in funding for our public services. That said, the Tory con of such a large amount of cash may have scored a couple of headlines, but the reality is quite stark and different on the ground.

For a start, by far the majority of money allocated by the Chancellor is specifically for financial transactions that must be paid back to the Treasury. This means that this money cannot be used for the day-to-day running of Scotland’s vital public services (e.g. Health, education, fire and rescue).

So far from being a funding increase, the money allocated from Westminster to Scotland is actually to be reduced by £213 billion, in real terms, and this will create additional real strain for Scotland’s public services. We should of course always remember this is our own money being returned to us with a cut.

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