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Report paints gloomy picture

Hamish Hutchinson • Published 5 Oct 2012 09:00 Print Comments 9 Comments

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MSP Keith Brown claims an independent Scotland would not have made the welfare reforms.

A GLOOMY future of increased crime and disorder, mass unemployment and a rise in poverty is forecast for Clackmannanshire.

The bleak picture is painted in a report to council on the impact of Welfare Reform, public spending cuts and the recession.

It is grim reading with estimates of up to 1000 job losses across the public and private sector.

Already 5266 residents claim housing benefits and 5791 claim Council Tax benefits.

The total amount of benefits claimed by all county residents is £152.1 million.

However, council officers say changes to the benefits system will result in a £14.4 million loss of disposable income to the local economy in 2014/15. That figure is projected to rise to £18.2 million the following year.

Those most affected will be the unemployed, disabled, pensioners, single parents, and those earning in excess of £500 per week.

Officers predict an increase in a "black market" economy with those seeking work taking jobs that pay cash in hand.

The report warns of a "potential increase in crime and social disorder as those with significantly reduced incomes turn to crime to fund their lifestyle".

Changes to the system will cause further administration for the local authority and may increase evictions as families struggle to pay rent and are forced into poverty. The report states that, with a reduction in revenue, this could have a knock on effect for the local authority's house building programme.

The report concludes, "The changes to the benefits system in conjunction with the economic situation results in a need to re-evaluate how the council provides its services, what its priorities are. Preventative work could reduce the demand on services and funding and partnership working might provide solutions to the pressures facing public services over the next few years."

Ochil & South Perthshire MP Gordon Banks said the Welfare Reform coupled with cuts to public spending caused a "double whammy" for the local economy. He said, "The UK government is using the benefits reform as a deficit reduction tool but because of the economy more pressure will be put on the benefits system as more people are unemployed and more people will be unemployed in the future. The only solution is growth in the economy.

"Reducing the disposable income of people on benefits will hit local businesses as that is where they spend their money. The council and the Scottish Government have got to look at what they can do. Job creation in Scotland is a significant responsibility of the Scottish Government."

He suggested that housing building could both create jobs and boost the economy - with the public and private sector working together.

Clackmannanshire & Dunblane MSP, Keith Brown criticised the UK Government's "economic failure" for "hitting the poorest and most vulnerable groups the hardest".

He added, "An independent Scotland would not have made these decisions to hammer vulnerable people in pursuit of Tory ideology, so it's no wonder the recent British Social Attitudes survey showed that 72 per cent of people want more powers for Scotland. The actions of the Conservatives have shown why these are powers that must come to Scotland and that will only happen with a yes vote in the coming referendum."

This article appeared in Alloa & Hillfoots Advertiser 03 Oct 12

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