Scottish Government would be ‘stupid’ to accept fiscal framework offer, says STUC

The leader of Scotland’s trade unions body the STUC has backed Nicola Sturgeon’s position on the fiscal framework, saying it would be “ranking on the stupid” to accept the offer from the UK Government.

The First Minister has written to David Cameron in a bid to break the deadlock in the long-running talks over the financial settlement underpinning the transfer of tax and welfare powers to Holyrood, after talks broke down yesterday.

Grahame Smith, general secretary of the Scottish Trades Unions Congress (STUC), said the proposals on offer risks a huge cut in Scotland’s budget, leading to loss of services and jobs.

“Last week the STUC criticised the Scottish Government's settlement for councils and responded positively to Labour's tax proposal.

“It would be wrong, ranking on the stupid, to propose acceptance of a Fiscal Framework which would require a doubling of this proposed tax rise just to allow Scotland's relative budgetary position to stand still.

“It was made entirely clear prior to the referendum and after the Smith Commission that we should not expect the devolution of income tax to be to Scotland's financial detriment presuming that rates of growth and tax stayed the same.

“The STUC strongly suspects that the UK Government is using these negotiations to try to apply a financial cut to Scotland's budget.

“The leaders of all Scotland's parties should unite in rejecting the current deal offered.”

Labour’s shadow Scottish secretary Ian Murray said “Scottish and UK Ministers should not leave the negotiating table until a deal is done.”