Briefing Note Scottish National Party Manifesto

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Sibyl Hart
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1 Briefing Note Scottish National Party Manifesto Overview Since the SNP s remarkable performance in 2015 the party, both within Holyrood and Westminster, has stuck firmly to the political narrative of them versus us. This manifesto underlines this with a declaration to the Scottish electorate that they have two choices: a dominant Conservative Party in Westminster that can continue a pro austerity agenda unchecked, or a strong SNP that can fight for Scotland s interests and deliver further devolved power. An expected Tory landslide is in many ways good for Nicola Sturgeon s party. The SNP has undoubtedly benefitted from Scottish Labour s collapse, but just as useful has been the ever present anti Conservative sentiment north of the border. The stronger the Tory threat, the more reason to vote for an SNP who will pursue Scotland s interests in Westminster. The manifesto positions the SNP as a counterbalance that will both push for further devolved powers and fight UK Government policy on several fronts. As expected, the party leads with an economic approach that rejects austerity, promising to invest 118bn in UK public services. Elsewhere there are flagship pledges such as increasing the minimum wage to 10 an hour, protecting the Triple Lock on pensions (which the Conservatives have rolled back from and Labour have committed to) and supporting a UK wide increase in the higher rate of taxation from 45p to 50p. During her launch speech, Sturgeon said that the manifesto had fairness and opportunity at its heart, warning that Scotland needed to strengthen its own hand, not that of Theresa May. This, Sturgeon has decided, is the vote winner not independence, which has been relegated down to the bottom of the pile of manifesto pledges, raising plenty of eyebrows in the process. The reason for this is that the issue of independence is rapidly becoming a weakness for the SNP. As far as Nicola Sturgeon is concerned, Brexit has made independence possible much sooner than Salmond s once in a lifetime commitment would have allowed, thanks to the shrewd inclusion of a break clause in the previous SNP manifesto (to have a second referendum if there is a significant material change in Scotland's position). But the problem for Sturgeon is that the window of opportunity is rapidly shrinking. Theresa May has already ruled out an independence referendum until after Brexit, leaving serious question marks over the SNP s position on rejoining the EU. The European Commission has already confirmed that an independent Scotland would have to apply for membership from scratch (and probably join the Euro as well) so this will be an increasingly difficult argument to make to the Scottish public. This manifesto represents a continuation of the strong, uncompromising rhetoric that has made the SNP such a formidable political force. Cracks are starting to appear at the heart of Sturgeon s project however. The SNP will still be the clear victor in Scotland but gaps in the party s domestic record over recent years, as well as Ruth Davidson s performance as leader of the Scottish Conservatives, will make it difficult to improve on their 56 seat haul of 2015.

2 Economic approach The SNP have repeated their demands for an end to austerity within the manifesto, promising that they have a 'responsible plan' to repair the public finances, and in turn to increase investment in public services and protection for family budgets. Through their plans to balance the budget, the SNP hope to release 118 billion for public spending in the UK over the next Parliament. Although it isn't directly specified where this will be spent, the manifesto commits to extra spending on public services such as the NHS, and to improving education within Scotland. The SNP also pledge to campaign for there to be urgent measures put in place by the UK government to ensure that the Oil and Gas industry in Scotland isn't lost, and that it has a bright future. At present, all powers regarding industry reform, support and intervention are held by Westminster, rather than Holyrood. This has meant that SNP proposals for supporting the industry through life transfers, decommissioning and exploration incentives have needed Westminster approval. Tackling austerity and securing investment in public services is once again the main focus of the SNP manifesto, with the party aiming to demand a new, credible fiscal plan for the UK. Their alternative fiscal plan has three key aims: To commit to balancing the budget by the end of the Parliament (2021/2022), with net borrowing only being used for investment from that year onwards. To commit to return the deficit to its pre crash long term average, through returning the UK's net borrowing requirement to 2.3% of GDP the thirty year average of net borrowing prior to the financial crisis. To commit to set debt on a downward path from 2019/2020, which will see debt falling as a percentage of GDP from 2019/2020 to meet the current target on public sector net debt. Business environment In a move that has accumulated significant attention in the press, the SNP have announced support for an increase to the top rate of income tax from 45p to 50p across the UK in order to fund the 118 billion public spending plans. Despite having the power to invoke this in Scotland, it is a move Nicola Sturgeon has rejected several times in the past two years amid warnings it would be detrimental to the economy. This has not gone unnoticed, with the Chief Executive of the Taxpayers Alliance, John O'Connell, describing the policy as a 'disaster for Britain' and accusing the SNP of 'playing politics'. In terms of business more broadly, the manifesto announces that the SNP will deliver a Scottish industrial strategy which will account for Scotland's economic challenges particularly in the manufacturing industry. Other measures seek to improve jobs, growth and productivity across Scotland as well as a number of protections for small businesses. Specific measures relating to tax and the broader business environment are outlined below:

3 Tax To support a UK wide increase in income tax from 45p to 50p from 2018/19. To oppose any proposed increases in VAT or National Insurance. To support the reversal of the married couple's allowance and the reversal of the reductions to the bank levy. To introduce a tax on banker's bonuses. The SNP will not support further reductions to Corporation Tax. The manifesto states that until VAT is removed from sanitary products, SNP MPs will call for Scotland s population share of the Tampon Tax Fund to be transferred to the Scottish Government. Commitments to backing measures which improve tax collection as well as tougher action on tax evasion, specifically; a moratorium and review of the closure of HMRC offices in Scotland and across the UK; beneficial ownership of companies and trusts to be made public; measures to improve the transparency of tax paid by major international companies; and further action by the UK government to tackle international tax avoidance. To push for a formal, independently chaired review of the recommendations made by the Office of Tax Simplification. Supporting Business To commit to delivering an industrial strategy that takes into account Scotland s economic challenges around the manufacturing industry. To commit to clear guidance and a mandate for the Small Business Commissioner to play a role in delivering the Industrial Strategy. To push the Government for an independently chaired review of business rates; pressing the Government to phase the introduction of the Quarterly Digital Tax Reporting over five years and to ensure more is done to ensure small business are paid on time. To call on the UK government to examine a reduction in VAT for the hospitality sector. To double the Employment Allowance the National Insurance discount businesses receive when they increase employment from 3,000 per business per year to 6,000 per business per year, phased in over the Parliament. To support regulations to exclude businesses which have been found to be involved in blacklisting from bidding for public contracts. Digital, science and tech policy/investment All other mainstream parties have made clear commitments to the digital economy in their manifestos with data protection, access to tech talent and cyber security all central themes. In contrast, the SNP manifesto is light on the digital front, with little substance on the role technology and innovation will play in the UK economy post Brexit. While the manifesto outlines plans for further funding for superfast broadband in rural communities, as well as innovations for energy technology, core issues around the UK's digital future have not been fully addressed. Peppered throughout this manifesto is the SNP's strong pro EU approach. The party is keen to communicate how exclusion of EU funding will impact Scotland's progress on science, research and innovation. The SNP are keen to seek clarity from government on how this funding will be replaced once the UK leave the EU.

4 400 million will be given to deliver superfast broadband to 95 per cent of properties across Scotland by the end of 2017, with 100 per cent reached by Tighten regulation of broadcast and digital junk food advertising seen by children. In association with Scotland s universities and institutions, the SNP will seek clarity from the UK government on what will replace education and research funding. A Scottish representative will be a standing member of the UK research and Innovation Board, which decides on allocation of UK research funding to UK universities. Energy The SNP have repeated their claim that successive UK governments have cost consumers billions of pounds by failing to make the energy market work for families. According to the manifesto, the time for change is "long overdue" with the SNP calling for bills to be reduced and for more fairness and transparency to be embedded in the system. They have pledged to press the Government to introduce the following measures: An energy price cap on standard variable tariffs in order to ensure a fair deal for consumers and energy suppliers. A new duty on energy companies to set out a clear timetable to reduce the number of people on prepayment meters. Immediately implement the Competition and Market Authority's recommendations relating to metering in order to reduce costs for households. A requirement for energy companies to prioritise the roll out of smart meters to those householders at risk of fuel poverty. Financial health checks to help people switch to the lowest tariffs and advice on reducing energy use. This will be aimed predominantly at pensioners and those on low incomes. Take new action, alongside Ofgem, to identify those at risk from fuel poverty with new legislation to ensure these groups are kept on the lowest tariffs possible starting with those eligible for the Cold Weather Payment. Infrastructure The SNP have claimed in their manifesto that they intend to prioritise investment in infrastructure in order to improve public services, enhance connectivity, create jobs and grow the economy. They claim that already in alone almost 6.4 billion of infrastructure projects will be under construction in Scotland. These include: 1.4 billion for the Queensferry Crossing which will carry the M90 motorway across the Firth of Forth between Lothian, at South Queensferry and Fife, North Queensferry. An upgrade to Scotland's motorways, with improvements to the M8, M73 and M74 network. This will be in addition to the work already underway to dual the A9 between Perth and Inverness. Nearly 500 million for new hospitals and healthcare facilities (due to open ). 400million to deliver superfast broadband to 95% of properties across Scotland by the end of This has been followed up with an additional pledge to ensure that 100% of premises across Scotland have access to super fast broadband by 2021.

5 Transport On transport policy, the SNP have focused their commitments on improving standards for rail users. According to the manifesto, Scotland s rail passengers benefit from the lowest rates of fare increases since rail powers were devolved in 2005, as well as more seats, services and stations. In , 742 million is already earmarked for improvements to the Edinburgh Glasgow railway line, including widespread electrification of the network between the two cities and to Stirling and Dunblane. A 170 million Aberdeen Inverness rail upgrade, which is now under construction will also see shorter journey times between the two cities, as well as new stations at Dalcross and Kintore. One of the most significant transport pledges the SNP makes in the manifesto, is that all SNP MPs will make a strong case for full devolution of Network Rail in order to deliver a more effective and efficient rail service for Scotland. According to the manifesto, this is because 54% of ScotRail delays are caused by issues connected to Network Rail. In terms of high speed rail infrastructure, the SNP have pledged to make connecting Scotland to HS2 a priority, with a high speed connection between Glasgow, Edinburgh and the north of England to be part of any high speed rail network. Other commitments to improving travel with a more international focus include: To press the UK government to commit to the Open Skies Agreement in Brexit negotiations to ensure there is no loss of flights to or from Scotland and airports are not disadvantaged. To work with the Scottish Government, Visit Scotland, Scottish Development International and UK departments to secure an expansion of international flights to and from Scotland, opening up new markets for trade and tourism. To continue to work with local partners as part of City and Regional Deals to deliver improved connectivity including an Inverness Airport Rail Hub To ensure the UK government continues to work with the Scottish Government to secure an exemption from air passenger taxes on Highlands and Islands flights. Health and social policies As would be expected, health and social policy takes a front and centre position in the manifesto. The SNP has in recent years gone to great pains to stress the difference between their stance on health, social care, work and welfare issues, and that of the 'pro austerity' English parties. The manifesto leads with plans to end austerity, halting further social security cuts and ending the freeze on working age benefits. There are also pledges to tackle poverty, inequality and low pay, increase the NHS Scotland budget, expand early years education and childcare and double the Employment Allowance (the National Insurance discount for business that increase employment). However, it is worth noting that many of the manifesto pledges are either recommitments to work the party is already undertaking at a devolved level, or policy issues which are already in the gift of the Scottish Government. We have picked out some of the most significant policies that will be advocated in Westminster below:

6 Health and social care SNP MPs will argue in Westminster for an increase in frontline health spending, ensuring that any consequential funding goes to NHS Scotland. To work on a cross party basis to support a NHS Reinstatement Bill that reverses any privatisation of NHS England. An additional 1.7 billion of investment into Scotland's health and social care partnerships, also reforming primary care and increasing the share of the total NHS budget that is committed to it. SNP MPs will press the UK Government to re commit to policies such as closing loopholes in the sugary drinks tax, tightening regulation of broadcast and food advertising seen by children, and introducing clearer food labelling. A pledge to increase the mental health workforce and improve the delivery of child and adolescent mental health services. To continue to advocate a review of alcohol taxation to better reflect alcohol content, while supporting health benefits through minimum unit pricing. Welfare To continue to pressure the UK Government to transfer all responsibility for social security benefits to the Scottish Parliament. To urge the UK Government to reintroduce UK wide targets to end child poverty, and to establish a Poverty and Inequality Commission that provides advice on tackling poverty and reports on progress. To pressure the UK Government to halt the current Work Capability Assessment and implement a new system, and to review Personal Independence Payments to ensure that assessments are fair. To call for a complete halt of Universal Credit, pending a review to ensure that it is designed to treat all with "fairness and respect", and for UC to be fully devolved to Scotland. To demand that the UK Government ends any role of the private sector in welfare assessments. To oppose the Child Tax Credit cap on two children and the 'Rape Clause'. To call for the end of the freeze on benefits for families and abolish the 'Bedroom Tax'. Employment To press the UK Government to ban zero hours contracts, and to help gig economy workers by ensuring they have appropriate rights and protections including holiday and sick pay. To continue to call for the UK Government to implement a 'real' Living Wage, advocating a Low Pay Commission to deliver the national pay rise. To support the immediate repeal of the Trade Union Act. Pensions To fight plans to increase the State Pension Age beyond 66. Support the establishment of an Independent Savings and Pension Commission, to ensure that pension policies are fit for purpose. To fight against any attempts to remove the State Pension Triple Lock. Brexit and international trade The issue of Brexit features throughout the SNP's manifesto. Nicola Sturgeon knows she won t feature directly in the forthcoming Brexit negotiations but she is keen to position her party as the only thing protecting Scotland from any negative consequences. As the manifesto puts it, "Brexit must not simply

7 be imposed on Scotland". Unsurprisingly, Sturgeon's proposal for protecting Scotland from Brexit involves another independence referendum. Having committed to this in last year's Holyrood election campaign, the SNP has a mandate for this course of action but Theresa May's refusal to agree to Sturgeon's timetable and lower appetite might prove problematic to the process. The SNP also outlines a number of areas where they will apply pressure on the UK Government in Brexit talks. Notable among these is a commitment to push for an ethical trade policy after Brexit whereby development goals are twinned with trade objectives. This will increase pressure on the Westminster Government to consider human rights and tax avoidance as part of future trade deals. Below, we have summarised the key points relating to Brexit and international trade: To protect Scotland's place in the Single Market by demanding a place in the Brexit negotiations. To press the UK government to commit to the Open Skies Agreement in Brexit negotiations to ensure there is no loss of flights to or from Scotland and that Scotland s airports are not disadvantaged. To press the UK government to ensure border checks are as seamless as possible after the UK leaves the EU. To pressure the UK government for assurances that the oil and gas industry is always treated as a high priority. Continue to press the UK government to confirm the rights of EU nationals to remain as a matter of urgency. To seek a cast iron guarantee from the UK government that they will seek the consent of the Scottish Parliament under the Sewel Convention to the terms of the Brexit Bill. Devolution The SNP sees Brexit as a step change for the relationship between Scotland and the wider United Kingdom. Meriting not only a push towards a second independence referendum, the SNP argues that so long as the link with Westminster is maintained the implications of Brexit make it both appropriate and essential that the current devolution settlement is fundamentally revisited. We have highlighted the most significant elements below: Additional and increased powers for the Scottish Parliament The SNP commits to placing pressure so that powers that are to be repatriated from Brussels to the UK will be devolved to Scotland where they currently sit within the competences of the Scottish Parliament. Examples include agriculture, fisheries and environmental protection. The SNP will also seek for the Scottish Parliament to gain control of powers that are due to be repatriated in reserved areas, such as employment law. Pressure the UK government to grant new powers through devolution, beyond those being repatriated, including immigration, powers to conclude international agreements in areas of the Scottish Parliament s responsibility, and powers that would enable Scotland to meet the regulatory and administrative requirements of continued European Single Market membership. Pressure for the devolution of Equality law, Employment and employability policy in Scotland including the Minimum Wage with subsequent review by the Scottish Fair Work Convention. To pressure the UK government to retain the Barnett Formula for determining spending in public services for as long as the Scottish budget is determined in Westminster.

8 Immigration and labour Pressure the UK government for the devolution of immigration powers so that Scotland can have an immigration policy that works for our economy and society and continued support for the reintroduction of a Post Study Work Visa scheme for Scotland. Continued opposition to the Skills Immigration Charge for non EEA workers and resistance to any move to extend this scheme to EU nationals post Brexit. Media To pressure for further transfers of funding and authority from BBC network to BBC Scotland, a claim on a fairer share of the TV licence fee and pressure to move functions of Channel 4 to Scotland through the proposed relocation process. To increase pressure for the Scottish Parliament to have control over which sporting events in Scotland are broadcast as free to view and to place pressure on Westminster for renewed funding for Gaelic broadcasting.

Stronger for Scotland

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