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Poverty groups in budget disappointment

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The Poverty Alliance and CPAG have said more could have been done to help those stuck in poverty

Poverty groups have claimed the Scottish Government has missed an opportunity to tackle poverty in its budget.

Finance Secretary Derek Mackay presented his proposals to the Scottish Parliament yesterday (Wednesday 12 December) with an aim to “protect what matters most”, with increases in spending for health services and education

Mackay said the government would invest £50 million in the Ending Homelessness Together fund, with another £50 million going towards the Tackling Child Poverty Fund.

However poverty groups have expressed their disappointment at the announcement.

Neil Cowan, of the Poverty Alliance, said: “One million people in Scotland - including 230,000 children - are currently living in the grip of poverty, and this budget offered the opportunity to take the urgent action needed to loosen this grip. We - along with other anti-poverty groups, children’s charities, trade unions and faith leaders – have been calling on the Scottish Government to bring forward the delivery of the new income supplement, which is due to be introduced by 2022, and to deliver the supplement by topping up child benefit.

“We called for this because it would unlock tens of thousands of children from poverty, and because families living in poverty now cannot wait until 2022.

“That this has not been included in the draft budget is disappointing and represents a missed opportunity. However, given the cross-party commitment to solving poverty in Scotland we trust that it will be a focus of budget debates and negotiations.”

John Dickie, the director of the Child Poverty Action Group (CPAG) in Scotland, said: “The Scottish Government's commitment to a new Income Supplement by 2022 is very welcome, but hard up families really can’t wait that long. MSPs must now work together to ensure that final budget plans boost family incomes and fulfils its potential to lift tens of thousands of children out of poverty."

Mackay said that Scotland had embraced a more progressive tax system and there had been real term increases in funding for local government, education, health and the police.

He said: “This is a budget of stimulus and stability. It delivers for today and invests in tomorrow and does so with fairness, equality and inclusiveness at its heart.

“It provides an increase of almost £730 million for our health and care services, invests more than £180 million to raise attainment in our schools and gives a vital boost to our economy through a £5 billion infrastructure programme.

“As a result of these decisions, we have been able to invest in essential public services, particularly the NHS, while ensuring 55% of income taxpayers in Scotland pay less tax than those earning the same income in the rest of the UK. Taken together with the personal allowance, 99% of taxpayers will pay less income tax next year on the same income.”