LAST month, UK Business Secretary Kwasi Kwarteng told MPs in Westminster that the public would be willing to suffer “hardship” in the face of the war in Ukraine. He further claimed that such suffering would be “heroic”.
On the surface, you could almost be tempted to rise from your seat and give a cheer of solidarity. That is, of course, if you assume the cost-of-living crisis we face today originates from this war.
But no matter how much the UK Government wants to blind us with their empty patriotic language, the reality is this crisis started before the war – and they have a part to play in it.
The basics
The Russian invasion of Ukraine started back on February 25, 2022. The UK’s inflation rate was already climbing higher months before this.
READ MORE: Why an independent Scotland must reject the Euro and use its own currency
In March 2021 the UK’s inflation rate sat at 0.7%, and it has gradually increased every month since. By October last year inflation had hit 4.1%, and come January 2022 it had further increased to 5.5%. The largest contributions to this increase came from housing, gas, and electricity.
Whilst the number of Scots in fuel poverty is set to increase by 43% due to a £693 price increase, the UK’s six largest energy companies have made profits of around £7.5 billion. Scotland’s two largest suppliers (SSE and ScottishPower) make up £1.3 billion of that figure. ScottishPower’s profits have more than doubled over five years, from £205.7 million in 2016 to £477.7 million in 2020.
In this context, and there is no gentle way to say this, the price increases are simply motivated by depraved greed.
Despite Scotland’s onshore wind farms producing total electricity valued at over £3 billion, only £22 million (0.6%) will go to local people through benefit funds. Whilst local workers across Scotland build the foundation for ecological sustainability, the rewards for their labour are consumed by a few.
On the housing side, landlords have been pressuring renters to outbid each other in order to secure housing. By pressuring renters to bid above the housing price, and often above the market value of the property, landlords have increased the cash in their pockets.
You would hope that with increasing price rises come increasing wages. Yet, according to data from the DWP, around one-third of all Scottish job opportunities online offer less than the real living wage. This figure increases to over 50% for part time jobs.
Further research from The Ferret uncovered job opportunities that were advertised far below the legal minimum wage, with companies such as Pizza Express, Burger King, McColl’s Retail Group, and Farmfoods offering wages of around £6 per hour.
Brexit
Whilst corporate greed increases, the supply of labour to vital agricultural sectors is declining. For example, analysis from the National Farmers Union Scotland found a 20% labour shortfall in soft fruit farms. With less supply and high demand, the price increases.
Similar figures in falling labour were reported in sectors reliant on haulage drivers and processing staff. These jobs were most often taken up by hard working immigrants, yet the UK’s immigration policy is designed to stop them from entering as much as possible. The very people the Conservatives set their eyes on demonising have in fact been a huge backbone to our economy – and now we’re paying the price of pushing them away.
READ MORE: Unpicking the Unionist myths of borrowing in an independent Scottish currency
This is not to say that Russia’s invasion of Ukraine will not have an impact on the current crisis, however this will be somewhat limited.
Putin could threaten to cut energy to the UK over its solidarity with Ukraine (putting aside dirty money from Russia in Westminster), however UK imports from Russia only account for 8% of oil demand and 5% of the UK’s gas supply. Whilst other European countries are hugely reliant on Russia for their energy supply, the UK is in a far better position to seek alternatives elsewhere. Indeed, developing a more resilient and green economy in the long term, through a Green New Deal, would provide long-term sustainability.
What can the UK Government do to mitigate this crisis right now?
There are a wealth of options. Rent controls, price regulations, nationalisation of vital companies, a Job Guarantee, implementing a living wage, increasing taxation on the wealthiest, a Foreign Investment Review Board, and the central bank monitoring of inflation.
Thus far, the UK Government has implemented none of these policies.
On the other hand, the Scottish Government has made decent progress in some areas. Take for example the Scottish Child Payment, which is to be doubled to £20 from April this year. Analysis from the Centre of Research on Social Policy concluded that such a policy would reduce the cost of raising a child by 35% compared to children in England. This is alongside policies such as free school meals, free bus travel, and best start/school clothing grants, are hugely vital steps.
Further to this, the Scottish Government is also set to implement a limited Youth Guarantee alongside rent controls. However, these policies will not come until years down the line, which is not good enough when the suffering in the present is so intense.
However, it demonstrates the clear difference in policy attitude between Westminster and Holyrood. Neither parliament is perfect, far from it, but I know which one I’d put my faith in to end this crisis.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel