I was interested to read an article by Richard Leonard, leader of the Labour group in the Scottish parliament, in the Scotsman today, calling for a Green New Deal. He said:
[T]he pressing need to radically develop Scotland's infrastructure to meet the climate challenge is an opportunity to reinvigorate our post-Covid economy and revitalise our industrial base, which has been in steady decline for decades.
That's why I am proposing a Green New Deal for Scotland. This draws on the international phenomenon, popularised by the socialist US House of Representatives member Alexandria Ocasio-Cortez, with the guiding principle that we do not need to choose between climate justice and social justice.
These are issues I can fairly say I know something about. And I am quite sure as a result that Richard Leonard does not.
Of course he is right that Scotland needs a Green New Deal.
He is right too that it could create jobs.
And he is right that the scope of that Green New Deal will need to be wide.
But he falls flat on his face when talking about how he will pay for an ambitious Scottish Green New Deal within the scope of the Union.
He says it will be paid for by:
- More Scottish government borrowing;
- Scotland's share of the benefit of leaving the EU;
- An enhanced fiscal framework, without giving a clue what that means;
- A bigger UK wide deficit, of which Scotland would get a part.
I hate to be disparaging, but the second of these clearly does not exist: there is no chance of a bonus from leaving the EU.
The first could be done, but would, unless Scotland was independent, inevitably lead to higher taxes because the Scottish government has to balance its budgets as a result of not having control of its own fiscal and monetary framework. Without saying what the new fiscal framework might be leaves that suggestion, to be blunt, meaningless: reform is possible but it is exceptionally unlikely any London Chancellor would agree what is required.
And as for a bigger deficit, that, of course, will happen, but to think that Westmonster is going to let Scotland have the choice over how it is spent is beyond wishful thinking.
I have them to suggest that Richard Leonard is not being serious. Scotland could have its own, transformational, Green New Deal. But not unless it is independent. If he does not realise that then he really does not understand the constraints within which he is hoping to work, and that is worrying.
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What can one say? Did Richard Leonard clear this article with his boss Keir Starmer? I find it incredibly hard not to believe he didn’t given the desperate need of Labour to get votes in the next general election wherever they possibly can. In consequence we have a clear indication that the Labour Party is still living in the “Dark Ages” as far as understanding the monetary economy they currently live in! This is dire given that Corbyn got a caning in part from the “Dark Age” electorate because the Tories as usual attacked with “Where’re you going to get the money from for your lavish spending programme?”
It’s noticeable that Richard Leonard references Alexandria Ocasio-Cortez as a socialist but fails to mention that AOC understands MMT and the power of a fiat currency issuing sovereign state.
I take from this that Labour in Scotland either do not understand MMT or disagree with it.
Given that the SNP hierarchy seem to have a problem with MMT too, here was a gilt edged chance for Labour to gain the interest of many voters.
Instead the battle ground is basically back to Union or Independence for Scotland.
This is not a battleground that Labour can win in the current climate. After independence the battleground will obviously be different and the SNP will have to drastically up their game, but then so shall every other party in Scotland.
Labour in Scotland just keep shooting themselves in the foot.
Re para 1, most definitely true
‘In consequence we have a clear indication that the Labour Party is still living in the “Dark Ages” as far as understanding the monetary economy they currently live in!’
Under Sir KS’s leadership, I fear that Labour will continue to dwell in the dark ages across a range of key issues facing the people of the UK (and the world). Unless I’ve missed it, his ‘forensic’ ability seems confined to ousting those on the left in the Labour Party. I await some sign that he knows what he’s about and the challenges we face. I think I shall be waiting for a long time.
hah! is that a typo or are you now absorbing the indy crowd’s nomenclature for the parliament in London?
Some of us switch even a couple more letters and name it Wastemonster.
I decided to leave that one when I was told I’d done it….
I can’t imagine how Richard Leonard thinks all this can be done within state aid rules, especially when they will be controlled by the UK Government if it gets it way on the so-called internal market.
Mr Leonard should certainly know about that, since it has been argued over in the Scottish Parliament.
The UK Government wishes to impose conditions on state aid, viz:-
“The UK Government has published plans for a ‘UK Internal Market’, once the UK leaves the EU Single Market at the end of the year. In a White Paper the UK Government makes clear it will also explicitly reserve to Westminster control of subsidies, such as State Aid.”
He probably needs some advice on that from a certain expert on the subject. 😉
🙂