Labour's big freeze to pay for education

A NEW Executive led by Labour would freeze the budgets of every government department in Scotland to pay for a massive investment in education, Jack McConnell, the party's leader, announced yesterday.

The First Minister unveiled Labour's manifesto and insisted that, if re-elected on 3 May, he would take his "most radical step" to date, to make Scotland's education system the best in the world.

To do this, he warned that other budgets and other priorities would have to suffer. As a result, no other department could expect more than a rise in line with inflation - keeping them static in real terms.

Hide Ad
Hide Ad

The Scottish Labour leader also announced plans to scrap water bills for pensioners and a council tax re-banding.

But both of these policy issues became mired in confusion as Mr McConnell was either not able to explain how they would work, or because the policy had changed in the short time since the manifesto had been printed.

Mr McConnell's main theme, however, was education, and he pledged that spending would rise by 1.2 billion over the next three years to achieve his aims.

At a time when overall spending is due to remain fairly static, with the Scottish block grant from Westminster expected to increase by little more than inflation, it soon became clear that other areas would have to suffer for Mr McConnell's priority.

He admitted this when he said other departments would have to "cut their cloth" accordingly and find resources from efficiency savings if they wanted to spend more on other policies.

He said: "Education and learning has to be Scotland's strategy for the future. That will mean our commitment to other policy areas will largely be met by existing budgets, by efficiencies and re-prioritisation of the existing budgets.

"The additional resources available through overall efficiencies in the Scottish budget and the additional resources committed to the spending review by the Chancellor - those resources will be committed to education. That will mean other budgets having to cut their cloth, but it is the right choice for Scotland."

Labour's plans for education include a reduction in class sizes to an average of 19, an extension of the school-leaving age to 18 and the introduction of "wrap-around" care in primary schools from 8am to 6pm.

Hide Ad
Hide Ad

What was less clear, however, was Labour's approach to the council tax and water charges.

Mr McConnell said Labour would scrap water bills for pensioners, with a rebate being given to pensioners after they had paid their bills.

But his spokesman later clarified the position, saying pensioners would not receive a bill and, instead, a Labour Executive would pay between 40 million and 85 million to Scottish Water, which was expected to find the same amount via efficiency savings.

There was also confusion over Labour's plans to reform council tax. Mr McConnell said he would create two new bands, splitting the low-value Band-A in two, reducing the bills of those in the cheapest homes. He also pledged to split the highest-value Band-H in two, forcing those at the top end to pay enough to cover new non-payers at the other end.

But it emerged last night that there are very few houses in Band-H in Scotland.

In Orkney, for example, there are only two such houses, so if Band-H is split there, with one half of Band-H property owners asked to cover the costs of non-payers, the entire burden will fall on one householder.

Mr McConnell said: "The people in the most expensive homes - for example, those whose homes are worth more than 1 million - will pay a little bit more each year to make the system fairer."

He added those in the bottom band would pay "slightly less".

Hide Ad
Hide Ad

Nicola Sturgeon, the SNP's deputy leader, claimed Labour's policy on the council tax was in disarray.

She said Labour's changes to water charges would save pensioners only about 87 a year, arguing that a single senior citizen would, on average, be 300 a year better off under the SNP's local income-tax scheme. She added: "Labour's hated council tax is totally unfair, and any tinkering with bands would not make the system any fairer but would require a damaging revaluation."

Tavish Scott, the Liberal Democrat campaign chairman, branded Labour's manifesto as "spin and gimmicks".

• EDINBURGH will be granted formal capital city status - and increased Executive funding - if Labour is returned to power at Holyrood.

The party's manifesto yesterday said it recognised " the particular challenges" that faced the capital and pledged to "ensure that appropriate status" was conferred on the city.

It is understood this will mean additional funding for the city- likely to be several million pounds - to take into account the extra costs of Edinburgh being the home of the Scottish Parliament and devolved government.

Ewan Aitken, the Labour leader of Edinburgh City Council, said the promise was "good news".

Margo MacDonald, who is seeking re-election as an independent MSP for the Lothians, also praised Labour for the move .

Hide Ad
Hide Ad

Although the details of the new deal depend on Labour leading the next Executive, it is understood ministers accept the capital needs "millions" extra to fund costs like extra policing around parliament.

• THE Scottish Socialists hope to increase their MSPs from six to eight on a platform of free public transport and school meals, and a referendum on independence within a year.

The party's election manifesto, launched yesterday, also includes an income tax-based charge to replace council tax, a pledge to build 100,000 new homes for rent and "carbon rationing" rather than green taxes.

The plans centre on wealth redistribution, with those earning less than 11,000 a year exempt from the new Scottish service tax, while high earners would be hit hard.

However, none of the policies rely on using Holyrood's tax-raising powers, which would be called upon only if other ways of funding free public transport fail.

Alan McCombes, the SSP's policy director, said the abolition of bus, train and ferry fares would be phased in within four years. Buses would be brought back into public ownership, along with ScotRail.

Colin Fox, the SSP leader, said the manifesto represented "everything Labour used to stand for".