Check against delivery

March 2008

Conference, the thread that unites us all whether we are activists, local councillors, MPs, MSPs and Trade Unionists is making a difference for those we serve.

That is why in the early 80s when the Tories were decimating communities across Scotland we were bound together in their protection.

We heard from Pat Watters and that reminded me of my many years of leafleting for him and his Labour colleagues in Strathclyde Regional Council, East Kilbride District Council and now of course, South Lanarkshire Council.  Working for those Councillors, watching them make a difference for my community.

We must also pay tribute to those many able Labour Councillors who retired or were sadly not elected at the last elections. 

As we know, from Aberdeen, Edinburgh and elsewhere, Labour Councillors make a difference and it was sad to lose them.

And I would also want to welcome two new Labour Councillors to the fold, Mark Griffin from North Lanarkshire and Richard Tullet from South Lanarkshire, well done great campaign and great results.  Results we can and will build upon.

Labour’s record

The principles that we share were forged in that adversity and we took those values into Government. 

That relationship allowed councils to build schools, employ more staff and change communities. 

It was Labour who ended CCT and brought in Best Value, introduced 3 year budgeting, the power of well being and community planning.

We provided the necessary resources to local government to expand and develop services which led to more people working in the public sector than ever before.

These were all real changes that made a real difference to local government and above all else, these changes were built on mutual understanding and respect.

And today it is Labour Councillors in power who continue to make a difference. 

Look at Glasgow where because of the work of Labour, Glasgow is set for a better future with the largest urban regeneration programme in Scotland.  Put in place by Labour Ministers and driven by Labour Councillors. 

Or in North Lanarkshire where Labour’s commitment to literacy will ensure that no child is left behind. 

Or in my own local council South Lanarkshire led by Eddie McAvoy who will by 2014 have built or refurbished every primary and secondary school. 

That’s what being a Labour Councillor is all about, challenging inequality, building services and giving opportunity to our young people.

And Labour in opposition is exposing the worst of the SNP and Lib Dems in places like Aberdeen, Edinburgh, West Dunbartonshire and beyond. 

These councils have returned us to the days of Thatcherism with cuts and compulsory redundancies, not seen since the 80s. 

And it is Labour Councillors working with party members, MPs, MSPs, the Trade Unions and the Voluntary Sector who are exposing the dire consequences of these cuts.

John Swinney and Alex Salmond have put a lot of effort into building a façade of respect for local government with the pretence of a generous funding settlement. 

That respect does not extend to the blame game when asked by mothers in Edinburgh why the crèche was closing Mr Salmond’s response was to blame the Lid Dem Leader of the Council somehow forgetting that it is his Party that is in coalition with the Lib Dems.  And of course when he was in Aberdeen recently he got a very hostile reception from homelessness and disability groups. 

So behind that façade lies the danger of Scottish local government being held responsible for the delivery of the SNP’s ill conceived, badly costed manifesto promises. 

The rhetoric of the SNP is of the best ever settlement, described yesterday by Brian Adam of the SNP MSP as “generous”. 

But as we know, for the people of Aberdeen and beyond this rhetoric is far from reality. 

And of course conference, these problems are worse for councils with the highest levels of poverty and population decline– such as Dundee, Glasgow, Inverclyde, West Dunbartonshire, East Ayrshire and Western Isles - whose grant settlement left them with no new money.

Let me be clear.  The SNP have more to spend than any other Scottish Government before them. 

But yet they use the settlement as another pathetic excuse for a fight with London. 

Using Scotland, not serving Scotland. 
Building their case for independence.  

Rather than take responsibility for handling the biggest ever budget they would rather take the usual route of grudge and grievance. 

To blame the Chancellor. 

To blame London. 

But conference, the blame for these cuts rests solely on the shoulders of Mr Salmond.

And when they complain about the Spending Review remember it is the same Spending Review that applied to England where we see a new school in every constituency, 150,000 extra Modern Apprenticeships, an extension to SureStart and £340m for disabled children and their families.  Those are Labour values driving Labour choices that make a difference.

The Settlement

Let’s look at the Local Government settlement

Under Labour the average local government share of the total Scottish Budget was 35.5%.  Under the SNP it has fallen to 33.6% - nearly 2% less than under Labour.

Councils have received the tightest settlement since devolution.

Cuts

What we are beginning to see is that the SNP are determined to take Scotland backwards, with councils across the country being forced to make big cuts to services.

We see cuts in the National Priorities Action Fund; the Supporting Peoples Fund; cuts to clothing grants to poor families; cuts to spending on special educational needs and cuts to home care services for the elderly.

The cuts in Aberdeen alone will mean that the homeless will be colder in the streets, schools will be closed, swimming pools and leisure centres axed.

Meantime in Edinburgh, SNP Councillors in the capital have cut:

• One million pounds from SureStart
• £3.8 million from school budgets
• 320 full-time nursery places
• And of course five new school buildings – all put on hold

But as Wendy has said, Alex Salmond is fast becoming Scotland’s Mr Takeaway.  He is taking away from the disabled, the homeless and the vulnerable; the youngest, the oldest and the poorest.
This is a bad Budget for Scotland’s neediest communities and households, who will suffer from cuts in services.

And if that wasn’t bad enough, let’s look at the Nat Tax.

Local Income Tax

The flag ship policy almost sunk on the first day.  Mr Swinney was raising the white flag within hours on Newsnight.

Sounds familiar all this.  This is the Salmond Poll Tax and remember the real Poll Tax was announced at £200 and ended up as high as £900.  We know the 3p is really 5p but where will it end up?

And of course, shyness and reticence are not  characteristics of Mr Salmond, always willing to attend the opening of an envelope, it is interesting that he has forced Mr Swinney, his ever reliable butler on to the centre stage.  And no wonder because we know, and he knows, that the Nat Tax is fatally flawed.

Let me start with myth number one – this is not a local income tax.

The SNP have made it clear that they want a nationally set local income tax – a complete contradiction in terms. 

This would remove overnight one of the key principles of local government – its right to determine how much revenue it will raise locally – how does that fit with the new respect and new relationship we hear so much about?

The rhetoric is partnership, the reality is control.

Myth number two.  The rate would have to be 5p, not 3p.

The Finance Secretary is just plain wrong to assert that a 3p rate for the national income tax would provide the resources needed to replace the council tax. It would only provide 60% of the resources needed, which leaves a black hole of around £900m whichever way you look at it.

The rhetoric is 3p, the reality is 5p.

A 5p rate puts a totally different complexion on the SNP proposals as that would mean a 25 per cent increase in the standard rate of tax.  A 5p rate would mean a single person in an average house earning £23,000 would be a loser as would a couple on a joint income of £34,000.

Far from being better off, many hardworking Scots families will be worse off under the SNP proposals. This is nothing less than a tax on those in work. It will be Scotland’s jobs tax.

The government have made much of the fairness of their plans.

But what is fair about a tax that will mean a household of four student nurses will each end up paying significantly more tax? Or a family whose adult children are staying with them as they struggle to get on the property ladder?

The rhetoric is fairness, the reality is high taxes for Scotland’s hardworking families.

Labour’s Alternative

But conference we have a responsibility as a party to work together to modernise and change our policies for local government and public services.  I look forward to that debate with you. 

It is our responsibility to present a vision of local government and public services which meet the needs of our communities and recognises the true and positive impact that public services can make.

We must also recognise the added value in terms of employment and skills, trade union recognition, fairness and equity.

We must never forget the political and democratic values enshrined in our public services and the participation and engagement of the public and the staff who work in them.

These services shape lives and communities, create opportunities and look after those most in need.

Those are Labour values and so conference our historic mission remains, to change communities for the better, to create equality of access and opportunity for all and recognise the vital role that local government and public services can play.