Scotland (Poverty)

Debate between Sandra Osborne and Fiona Bruce

Wednesday 30th November 2011 Westminster Hall

[Sandra Osborne]

Absolutely. I will come to that point later.

These trends follow dramatic increases in poverty between 1979 and the mid-1990s. Perhaps, like me, the Minister remembers those years and can offer a view on what caused that to happen and on whether we are heading back in that direction, thanks to his Government’s policy. That is exactly the direction in which the Government are taking Scotland. Cuts and reforms currently in train will have a significant negative impact on individuals and communities across Scotland and on devolved issues such as housing, child care, health, social care, equality and anti-poverty policy as a whole.

In June 2010 the Chancellor promised a Budget that would be tough, but fair. He announced an increase in VAT to 20%, a two-year pay freeze for public sector workers, a three-year freeze in child benefit and a tightening of housing benefit entitlements and eligibility for child tax credits, among other austerity measures. Coupled with the comprehensive spending review last October, those measures represent some of the most regressive in living memory. Yet, in the same breath, the Government claim that we are all in this together.

[Fiona Bruce (Congleton) (Con)]

I thank the hon. Lady for giving way. Does she not recognise that if the Government had not had to make these difficult decisions, the position for children growing up in Scotland—and, indeed, their children for generations to come—could have been far worse?

[Sandra Osborne]

My point is that the cuts have not been made in a fair and even manner, as the Government promised. I will develop that point later.

It is all too evident that the impact will fall disproportionately on vulnerable groups and on those who deliver the services on which those groups depend. Those are not just my views; there has been widespread condemnation from campaigning groups and third-sector organisations in Scotland that the budget and austerity measures will further increase poverty and inequality.

As my hon. Friend the Member for Edinburgh North and Leith (Mark Lazarowicz) said, in yesterday’s autumn statement we heard of further measures. The Chancellor announced the expansion of free nursery places for two-year-olds, helping 260,000 children. But, alongside that, he announced that he would be taking more than £1.3 billion a year from families by failing to go ahead with the planned additional £110 rise in child tax credits and by freezing working tax credits.