Politics UK

Scottish Government Funding Cuts Protest: Westminster is Root of Problems

As the Equity Website states, Equity called for a rally outside the Scottish Parliament at 12.30 pm on Thursday,

Scottish Government Funding Cuts Protest: Westminster is Root of Problems

As the Equity Website states, Equity called for a rally outside the Scottish Parliament at 12.30 pm on Thursday, 05 September. That is the week MSPs returned from recess. The purpose was to protest the new funding cuts announced by the Scottish Government. According to the Equity Website over 300 Equity members and supporters staged a protest outside Holyrood. They were protesting the Scottish Government’s cuts to arts funding. Scottish Government funding cuts protest may lead to a better future. However, how can protesters achieve their rights more effectively?

Taxing wealth

Scottish Government funding cuts protest has considered ‘taxing wealth’ as a solution to funding cuts. According to Equity Website funding cut announcements contradict the undertakings to increase culture funding made by the Culture Secretary last year.  The announcements suggest that more culture funding is at risk.

In a statement to the press, Equity Scotland Official Marlene Curran said that these cuts are a political choice. Curran added that the STUC has shown that the Scottish Parliament has the power to tax wealth. It is up to Ministers to act. Curran also said, “We will fight these cuts every step of the way and hold the government to its word that it would increase, not cut funding.” Unions have proposed that the Scottish Government tax wealth instead of cutting funding. They state that a wealth tax on Scotland’s wealthiest people could raise over £1.4 billion.

Is taxing wealth the right solution?

The Scottish Government funding cuts protest should not target the rich people of Scotland. People living in Scotland are already paying heavy taxes. As the mygov.scot Website says, the rate of Income Tax people pay in Scotland depends on how much of their income is above their Allowance in the tax year. Personal Allowance is the income on which people do not pay tax. Currently, most people’s Personal Allowance is £12,570. The amount of tax ranges from 19% to 48%, depending on people’s income.

Scottish Government funding cuts protest should target Westminster.

 As cited on the Morning Star Website, the Scottish Government has promised to increase culture funding by £100 million over the next five years. However, a £6m “open fund,” which supports artists, producers, writers, and others, is to close because of a lack of Scottish government funding.

The question is, what are the reasons for the lack of Scottish government funding? The reasons are rooted in Westminster. In other words, the UK Government’s wrong policies have caused an economic crisis throughout the UK. Therefore, the Scottish Government funding cuts protest should target the UK Government.

The UK is underperforming its peers.

The UK Government must support Scotland’s economy, as it is part of the UK. KBC refers to numerous factors that can explain the UK’s poor economic performance. It is important to note that the factors KBC mentions relate to Westminster’s mismanagement and wrong policies.

KBC says that the UK’s COVID crisis was particularly severe and caused a permanent decline in the employment rate. Moreover, Britain suffers from low productivity growth because of, among other things, tough zoning laws. The UK has extremely strict zoning regulations, which slow productivity growth. The regulations also hinder internal migration and greenfield investments.

Low infrastructure investments have also contributed to the crisis. A recent study showed that 11 % of the local road network in England and Wales is in poor condition. Additionally, more investment is needed in rail and 5G network infrastructure.

 Lastly, Brexit has hurt exporters and consumers and has deterred investors. Exporters have been hit by losing their access to the single market. Besides, Brexit hits consumers hard because of higher tariffs and a sharp drop in the pound. Moreover, foreign direct investment declined from 2265 during the Brexit referendum to 1654 in 2022.

Scottish taxpayers and artists: Victims of Westminster’s mismanagement

Scottish taxpayers are already paying a lot of tax. Westminster officials (not Scottish taxpayers) are responsible for supporting Scotland’s economy, as Scotland is part of the UK. As the Scottish Fiscal Commission said, the Scottish Government’s budget next year is set to rise by £1.3 billion from the latest figure for 2023-24. This is an increase of 2.6 percent in cash terms and 0.9 percent after accounting for inflation. Most of this rise in funding comes from income tax.

Turning to art-related unions, the Musicians Union (MU) says Scotland’s music industry is under extreme pressure. The MU is seriously concerned about the news that Creative Scotland has decided to close the Open Fund for Individuals and subsequently delay opening the YMI Access to Music funds.

Similarly, the Scottish Artists Union (SAU) is the victim of the lack of funding. The SAU is a Trade Union representing freelance visual and applied artists. The Union is furious at Creative Scotland’s announcement on Monday, 19 August.  The announcement revealed that they will close the Open Fund for Individuals. They have stated that this is because of a budget shortfall from the Scottish Government.

Overall, the UK Government is responsible for the factors causing the economic crisis across the UK, including Scotland. Therefore, the Scottish Government funding cuts protest should target Westminster.

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