Heavyweight backing for Labour's look at giveaways

Political Editor

Saturday 6 October 2012

THE row over universal entitlements has escalated after former auditor general Robert Black backed Labour's review of popular Government giveaways.

DOUBTS: Robert Black said the affordability of free benefits has to be questioned. Picture: Gordon Terris

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Magnus Gardham Political Editor

Professor Black, who stepped down as head of public spending watchdog Audit Scotland earlier this year, said the affordability of benefits such as free prescriptions for all, free bus passes for all over-60s and free university tuition "has to be questioned".

Commenting on Scottish Labour leader Johann Lamont's decision to review the universal benefits, he added: "The moves being made by the Labour Party in Scotland to actually at least start asking the questions, I think is a good thing. "We need to do more of that but we need to do it as a society."Can we really afford all the services that are free at the point of delivery, given the tough numbers that are in the Audit Scotland reports and elsewhere?"His intervention fuelled the bitter war of words raging between Labour and the SNP since Ms Lamont re-positioned her party to end the council-tax freeze, drop free tuition and prescriptions for all, and re-assess other services including free care for the elderly and bus passes.Finance Secretary John Swinney, who has denounced the review as a "cuts commission", defended universal hand-outs as "by definition affordable".But Ms Lamont said: "The SNP have tried to shut down this debate with a mixture of name-calling, distortion and denial."This isn't about universal benefits versus means testing, it is about affordability. "It's about examining policies which were affordable in times of growth, but which have become slogans which hurt those in need in times of recession."She was backed by Scots Tory leader Ruth Davidson, who said: "The SNP cannot simply keep promising all these free services to people who can well afford them, without justifying exactly how they will be paid for."Mr Black highlighted the pressures facing the Government's budgets, warning of a £4 billion backlog in roads and public buildings maintenance and spiralling costs for services.Concessionary travel is expected to rise to £500 million per year in the next decade, while free prescriptions and eye tests will reach £150m.Looking further ahead, the bill for caring for over-65s is estimated to rise by £3.6bn by 2030.The council-tax freeze – which Mr Black said "benefits better-off homeowners" – has blown a £490m black hole in local authority coffers, while they face a £580m bill to meet Government recycling targets.He warned: "Political debate is focused on the independence issue, leaving less space to address the great challenges we are facing, but we cannot afford to place this agenda to one side until after 2014."Mr Swinney said universal benefits were part of a "social wage" designed to help hard-pressed families.He also rejected Labour claims that ministers had ignored separate Government-commissioned reviews led by former Scottish Enterprise chief Crawford Beveridge and the late STUC head Campbell Christie – which questioned the sustainability of universal services – saying preventative spending had been increased in response to them. He said: "Our support for key universal benefits such as personal care for the elderly and prescriptions reduces costs in our hospitals, whilst the bus pass ensures our elderly can access services, remain part of their communities and benefit from the full range of public services available to them. "All of these services and the others that we fund, such as free university education, are by definition affordable because they are being paid for now from within a fixed budget."He said savings – including merging police and fire services – meant "we can protect essential services now".

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Heavyweight backing for Labour's look at giveaways

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