Scottish Labour leader Anas Sarwar’s package of childcare, business support measures and health service improvements has won broad support from a taxation think tank.
The Institute for Fiscal Studies said big tax cuts and spending plans that other parties have pledged are absent from 94 pages of Labour pledges which lacked a “big reveal”, but kept within existing budgets.
“Given the fiscal situation, the lack of big unfunded new commitments is welcome,” said the IFS.
“Instead, the focus is mainly on improving and reforming existing services, albeit with the aim of bigger changes – including tax cuts – in future if economic and fiscal conditions allow.
“Most of the spending that is pledged is from within existing budgets – and in many cases represents only small changes to how that money is already planned to be spent.”
It said Labour has been “relatively restrained in its proposed giveaways”, though meeting its ambitions for priority services “would still probably require some combination of cuts to other services, increases in taxes, or improvements in public sector productivity – above those already baked into existing spending plans.”
Mr Sarwar hopes his policies will help bridge the gap between between Labour and the SNP. A huge swing of 14% is required before 7 May for the Labour leader to secure victory.
Mr Sarwar produced a “fully costed” manifesto which largely reiterates pledges to replace business rates with a local levy, lift the ban on nuclear power, and build 125,000 homes.
He wants to go ahead with the Glasgow Airport Rail Link and establish “better, faster, more reliable trains and buses”. He plans to create 9,000 apprenticeships and overhaul the skills system.
His first priority in government would be to cut NHS waiting times, end the 8am rush for GP appointments and bring back the family doctor. He will top up tax-free childcare to £3,000 per child and fund two weeks of summer holiday clubs. Breakfast clubs would be installed in every primary school.
However, a lack of showstoppers will disappoint the party faithful who feel the constant calls for “change” are making no impression on voters. Hopes of an upturn, revealed in a rogue poll in The Sunday Times last week, were dashed by subsequent polls that have shown the party lagging behind Reform.
One leading Labour figure in the last parliament told Daily Business that he thought the polls were distorting the true picture as so many voters were undecided. “I’m not hearing the the SNP is so far ahead. I think it will be closer,” he said.
During the Q&A, Mr Sarwar accused John Swinney of “blagging” his supporters into believing a majority SNP government was in the bag.
However, SNP advisers have been surprised by how Labour has failed to land any blows on those policy areas on which it saw itself as vulnerable.
Labour’s manifesto makes no mention of immigration or independence which were among the key themes in last night’s first televised leaders’ debate.
Mr Sarwar, who has insisted on focusing on devolved issues despite the impact of Westminster policies on Scotland, today said the SNP always seeks to blame others for its own failings and that he will build a “better future for Scotland.”
He says the manifesto is about “transforming Scotland, making life more affordable, creating jobs and opportunity, building more homes, backing our schools, fixing our roads and ending government waste.
“This election is a straight choice between more of the same with the SNP or change with Scottish Labour.”
In the question and answer session with journalists he said he supported Scottish Financial Enterprise chief executive Sandy Begbie’s call for more business leaders to be involved directly in government.
“Sandy is making a cogent argument. We should not pretend that politicians and civil servants have all the answers,” he said.
Michelle Ferguson, the director of CBI Scotland, welcomed proposed reforms of business rates, skills funding and the planning system as well as the intention not to raise income tax.
But she said Scotland needed to close the income tax gap with the rest of the UK. “That gap is making it harder for Scottish firms to compete for highly skilled talent and risks pushing more people south of the border, with consequences for both employers and employees,” she said.
Opposition parties said the voters will “see through” his call for change after the fall-out with Sir Keir Starmer who had joined Mr Sarwar in promising a host of changes that never materialised.
Some of the aspirations are shared with other parties, including the airport link, fixing potholed roads and introducing more technology into the health service.
SNP depute leader Keith Brown said: “People in Scotland will be thinking ‘we’ve heard this all before’. Anas Sarwar stood with Keir Starmer and promised voters ‘change’ two years ago but Brexit Britain is more broken than ever.
“Anas Sarwar told Scotland to trust Keir Starmer, he told us the Labour Party would bring energy bills down and he told us they would save Grangemouth. Well, Starmer has been a disaster, energy bills are up and Grangemouth has closed. No one will believe a word Sarwar says now.
“We know what we get with the Labour Party – we already have one disastrous Labour government, we don’t need another one.”
Scottish Conservative deputy leader Rachael Hamilton said: “Scottish voters know they can’t trust Labour after being subjected to nearly two years of broken promises and U-turns by Keir Starmer and Rachel Reeves.
“The country is paying a heavy price for taking a punt on Starmer, and Anas Sarwar’s belated, self-serving attempt to disown him won’t wash.”
Leaders in first TV clash
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