Scotland’s first minister, Nicola Sturgeon, will outline her government’s alternative approach to deficit reduction when she makes a full-throated attack on Westminster’s austerity agenda.
In a keynote speech at University College London on Wednesday, Sturgeon will say that the UK government’s economic policy has failed “categorically and comprehensively”, and that she believes that Scotland can now exert “a beneficial influence” on developments in London.
“The current UK government’s economic policy has failed even on its own terms. It has failed to reduce the deficit as planned, and it has failed even more comprehensively to rebalance the economy. Economic policy is a means not an end; it is the means for citizens to lead happy, healthy, fulfilling lives.”
“The entire focus of the Westminster debate is on the deficit. Now, the deficit is hugely important. But it is a symptom of economic difficulties, not just a cause of them.”
Adding that the human cost of austerity is too high a price to pay, she will say: “It’s simply untrue to say that we are ‘all in this together’. The cuts have had a disproportionate impact on women, people with disabilities and people on low incomes. The most vulnerable are bearing the heaviest burden.”
Sturgeon is expected to outline the Scottish government’s own alternative deficit-reduction proposals, as well as highlighting the importance of boosting productivity and gender equality in the workplace, referring to the mounting international evidence which shows that more equal countries are better at fostering economic growth.
She is expected to say: “The Scottish government proposes a different approach. We simply don’t accept that there’s a trade-off between balancing the books and having a balanced society; fairness and prosperity go hand in hand.”
“The Scottish government’s approach is part of a growing international consensus. IMF research – examining 173 countries over 50 years – has shown that more unequal countries tend to have lower and less durable growth. It is basic common sense that as a society, we will do better if we can benefit from the skill, talent and innovation of all of our people.”
Referring to the hug changes to the political landscape in Scotland as a result of last year’s independence referendum, she will add: “After a momentous 12 months in Scotland, we will see a hugely significant 12 months across the whole of the UK. And I hope that Scotland can again exert a beneficial influence on developments here in London.”
“So we will make the case for a more rational economic policy at Westminster, and we will use the powers we have in the Scottish parliament to pursue a different approach; one based on partnership, fairness and prosperity. And that is something which will bring benefits to Scotland, and to all of the UK.”
