Labour candidate Neil Cardwell says local business should fear independence and the cost of the SNP

Gordon Labour candidate Neil Cardwell has today warned the local business community in Gordon about new burdens they would face under the SNP’s costly plans for separation and a local income tax.

Mr. Cardwell was speaking following a report in Scotland on Sunday which surveyed 9,000 businesses across Scotland and showed that two-thirds of respondents opposed both independence and fiscal autonomy.

Neil Cardwell said:

“The SNP’s costly plans would place a duty on employers and local businesses to administer the new tax, requiring new IT systems for every employer.

“The SNP’s expensive local income tax will also force businesses to track employees, adding another level of bureaucracy and cost employers an estimated £100 million alongside an income tax rate significantly above the rest of the UK.

“For example, under SNP plans, a small company based in Gordon with employees travelling from both Aberdeenshire and Aberdeen could be paying different rates of income tax, and could be liable under the SNP’s plans to be paying for the full administration of that system.

“I urge local businesses to reject the SNP’s plans and I call on the SNP to come clean on the true cost to businesses in Gordon of their plans for independence.”

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Additional information on the impact of the SNP’s Local Income Tax on business
A Local Income Tax – another SNP burden on business

1. The £100 million cost to Scottish businesses

The SNP proposals for a local income tax would require employers to administer this new tax. This would involve new IT systems and require Scottish firms to liaise with up to 32 local authorities administering 32 different rates.

“A local income tax set by local authorities and potentially offering the prospect of 32 different tax rates would be significantly more complex and expensive to administer”.

Burt Review (The Local government finance review committee), November 2006

“It is unlikely that employers would tolerate a system, which required them to deal with both the Inland Revenue and a number of individual authorities. For the sake of completeness, we estimate this cost to be in excess of £1 billion if they were.”

CIPFA, ‘Reviewing the case for a local income tax’ March 2004

Using the CIPFA figure of £1 billion UK wide as quoted above we can assume around a £100 million cost to Scottish businesses.

It is no surprise therefore that business organisations are opposed to the SNP proposals for a local income tax:

“A Local Income Tax could lead to huge administration costs for business as they would be required to provide information on wages and salaries and make payments on employee’s behalf to local councils”.

“Small businesses really struggle with those kinds of changes, and previous proposals have estimated that complying with these requirements would cost Scottish employers hundreds of millions of pounds.”

FSB Scotland response to the Burt Review, 9 November 2006

“CBI Scotland believes it is neither sensible nor desirable to make sweeping changes to the current local tax regime, particularly if it was to fall to employers to collect taxes on behalf of local authorities”

CBI Manifesto released in September 2006

“The Institute of Chartered Accountants of Scotland (ICAS) expressed concern about the administrative costs, including on business, and cross border difficulties for UK wide companies, if a locally-set tax were introduced.”

Burt Review, November 2006

2. A new requirement on businesses to track employees

Employers would be require to keep track of employee moving house. There may need to be a central system of compiling, updating and enforcing a register of where taxpayers lived – another level of bureaucracy.

“Employees may move residence from one local authority area to another whilst continuing to work for the same employer, and this might add further difficulty to the existing arrangements for maintaining the appropriate payroll deductions. Therefore, there would be a significant cost beyond that to the public purse of administering a Local Income Tax.”

CIPFA report ‘Reviewing the case for a local income tax’ March 2004

3. New IT and administrative systems

The SNP have failed to acknowledge the set up costs involved in establishing a whole new tax system. Employers would expect to be subsidised for introducing and administering a new tax on behalf of the Scottish executive.

“The initial investment required to ensure that the necessary systems and databases existed to adequately support a LIT would be considerable. Adequate provision would also need to be made to minimise the potential cost to employers to both prepare for and then administer a potentially extended PAYE system.”

CIPFA report ‘Reviewing the case for a local income tax’ March 2004

4. The burden on employees

The SNP proposals would mean employees in Scotland would face an income tax rate significantly above rest of UK.

“A local income tax system will raise marginal income tax rates for the majority of people. Unless compensated for by increases in wages, this will have an effect on reducing net earnings and might in turn reduce work incentives.”

Burt Review, November 2006, Section 10: Para 101

Scotland has an aging population and our working age population is in decline. As the tax burden would fall almost entirely on Scotland’s working population then the local income tax would have to rise further in the future as the working population declines.

“…. the demographic complexion of Scotland is changing, with the number of people of working age projected to decline by 15 per cent - more than half a million – by 2040. Such a trend might affect the size of the tax base and, consequently, the rate that would be payable under a local income tax”.

Burt Review, November 2006, Section 10: Para 48

The Local Income tax also provides a disincentive to work, especially for older Scots.

“An increase in income tax on earned income would be a disincentive to work. This disincentive may increase as the population of working age shrinks”.

Burt Review, November 2006, Section 10: Para 147

Neil Cardwell warns Gordon residents of the consequences of SNP economics

Local Labour candidate Neil Cardwell is warning Gordon residents that the future of local schools, hospitals and other council services are at serious risk if the SNP are elected to the Scottish Parliament and Aberdeenshire Council in May.

Cardwell has spoken out after a tide of experts attacked the SNP’s financial credibility and warned of serious miscalculations in their sums;

Neil Cardwell said: “Over the few last weeks, we have seen leading experts openly attack the SNP’s financial credibility and warn us that businesses would face a instability and uncertainty market in an independent Scotland while hard-working families in Gordon would face cuts in the vital public services they rely on and much higher local tax burdens.”

Three experts have spoken about their views of the SNP’s economics.

Speaking in the Guardian last week, respected economic commentator Ashley Seager said; “Scotland currently enjoys Scandinavian levels of spending and American tax levels. Independence would necessitate action to tackle the deficit – either tax rises or spending cuts, or both.”

Successful Scottish entrepreneur Willie Haughey said; “The threat of independence would cost jobs and make doing business with the rest of the UK harder.”

These comments were further confirmed by Arthur Midwinter, economic adviser to the Finance Committee.

In a scathing attack exposing a £4.5 billion blackhole at the heart of the SNP’s Scotland in Surplus document, Arthur Midwinter yesterday said; “In a real world, the SNP will have to cut spending, increase taxes or borrow to tackle the deficit and meet its financial commitments post independence.”

Cardwell believes such attacks should be of serious concern to Gordon residents. He said:

“Over the past four years I have seen the SNP promise Scottish people the world.

“But what the SNP have not told us is how they are going to pay for these promises.

“Local residents have a choice on May 3rd and I urge them not to gamble Gordon’s future on a party that can’t even get their sums right.”

“Can’t Count, Won’t Count” – £8bN Black Hole in SNP spending plans revealed

Neil Cardwell, Labour’s candidate in Gordon, has condemned an £8 billion blackhole exposed at the heart of the SNP uncosted spending plans if they are elected to the Scottish Parliament in May.

Cardwell says a reckless list of promises made by senior politicians like Alex Samond are just not deliverable without major cuts in local services or costing local tax payers £1000 more per year.

Scottish Labour have published “Can’t Count, Won’t Count”, a document analysing the SNP’s spending plans.

The nationalists spending commitments so far include:

1 Higher education - £2.379 billion
2 Pre-school education - £292.8 million
3 Free school meals for primary 1, 2, 3 - £160 million
4a Micro renewables for homes - £1.5 billion
4b Micro renewables for schools - £327 million
5 First time buyers grant - £272 million
6 Writing of Dundee’s housing debt - £120 million
7a New entrants to farming - £10 million
7b International aid - £5 million
7c Edinburgh Festival Expo Fund - £8 million
8 Local Income Tax - £2.2 billion
9 Freezing council tax - £55 million
10 Small businesses - £708 million

TOTAL - £8.037 billion

Speaking about the cost of these promises to people in Gordon Neil Cardwell said:

“The SNP for too long have got away with making all sorts of promises like scrapping student debt, introduce free school meals and freezing council tax. Unfortunately these promises come at a cost and the SNP’s sums just don’t add up. £8 billion on just 10 commitments represents an additional £1000 straight from the pocket of every taxpayer in Gordon each year.

“The SNP must come clean and let Gordon residents know exactly how they will fund these promises – will they cut local services, increase taxes, or both to balance their books?

Labour’s Allan Wilson said: “This is the longest betting slip in history. But the Nationalists are gambling with other people’s money, money that they don’t have, and with the future prosperity and jobs of the nation.”

Labour’s Wendy Alexander accused the SNP of repeatedly refusing to take the opportunity afforded by Holyrood procedure to put forward their own alternatives to Executive spending plans.

She said: “What really makes this reprehensible is that we have not seen an alternative budget ever brought forward by the SNP to Parliament…. we have created the opportunity in Scotland to do that - it doesn’t exist for the rest of the UK. They have never done it because they simply know their figures don’t add up.”

Neil Cardwell’s TV interview on Salmond as part-time MSP/part-time MP

Neil Cardwell, Labour candidate for Gordon, was interviewed on STV’s Politics Now programme about Alex Salmond believing that as SNP leader, he can do two jobs, as MSP for Gordon and as MP for Banff and Buchan, at the same time.

He said of Alex Salmond :

“His track record on this is not impressive.

“He’s left the Scottish Parliament once already, and declared that he wanted to be an MP.

” Then he wasn’t going to be leader of the SNP, now he’s back as leader.

“Now he’s back wanting to be both an MSP and an MP.

“Speaking to voters in Gordon, they’ve made their doubts about his credibility and sincerity.

“I think he’ll find this an increasing challenge as more voters in Gordon learn more about Alex Salmond.”

weblink : Gordon Labour Party >>>

Gordon candidate Neil Cardwell challenges “bizarre and dangerous” SNP policy on currency

Neil Cardwell, Labour’s candidate in Gordon, has urged the SNP to clarify the inconsistency and confusion which surrounds their policy of the future of the Scottish currency.

Cardwell’s comments follow a letter to The Herald newspaper by Bristow Muldoon MSP, Chair of Labour’s Scottish Policy Forum. , which highlighted the repeated gaffes by the SNP on the issue.

As recently as last week, nationalist MSP Alex Neil insisted his party was in favour of pegging the Scottish pound at parity with Sterling, in advance of entering the Euro.

However, on January 18-19 that position disappeared from the SNP website.

Cardwell is challenging the SNP in Gordon to say what their position on the future of the Scottish Currency actually is.

Neil Cardwell said:

“Given that the SNP have, apparently, dropped their support for a separate Scottish Currency, are voters in Gordon now to assume that they propose an independent Scotland whose interest rates would be set by the Bank of England – a bank based in its new and nearest economic rival?

“Like the rest of their financial plans, the nationalist’s position on a separate Scottish currency simply unravels when put under scrutiny.

“Are they now asking voters in Gordon to believe that they would try to negotiate entry into the Euro, despite Mr Neil being on record as asking “How can we in the SNP argue for full fiscal freedom from London if we are then prepared to hand back fiscal powers to Brussels and Frankfurt.”?

“Which currency would the SNP support if they were to lose a referendum on membership of the Euro?”

“Whether it’s their inconsistent and confused position on a separate Scottish currency or their proposals to tax hard-working families more while depriving local authorities of over a £1bn in revenue, the SNP’s separation agenda would threaten both Scotland’s prosperity and the future of our vital public services.

“People in Gordon don’t want to gamble schools and jobs on the SNP’s fantasy economics.”

The full text of Bristow Muldoon MSP’s letter to The Herald is:

The dangers in a suddenly rewritten SNP policy

ALEX Neil claimed (January 19) that the SNP has a clear and consistent policy on Scotland’s future currency. But it would seem at the very moment he was typing his letter, SNP high command was rewriting the policy, but nobody bothered to tell him.

On January 18 the SNP website confirmed: “The SNP is favourable to entry into the euro . . . In advance of entry into the euro, the SNP favours pegging the Scottish pound at parity with sterling.” A clear policy of creating a separate Scottish pound, pegged to sterling until the time was apparently right to scrap that Scottish pound and move to the euro.

That position, and the text on the SNP website, has now changed dramatically. Under cover of darkness on January 18-19 it scrapped the commitment to a separate Scottish pound. The Scottish Central Bank that would have been required to set interest rates in an independent Scotland presumably vanishes, too.

Instead, the SNP would still push towards the euro but without first establishing a separate Scottish currency. The Monetary Policy Committee of the Bank of England would set interest rates not just for England, Wales and Northern Ireland but also for a separate Scotland - a Scotland that had been torn from the UK, become the nearest rival nation to the rest of the UK and was experiencing economic flux. Worse still, Alex Salmond would negotiate conditions for Scottish entry into the euro while our interest rates and monetary policy were controlled by another nation.

How did the SNP end up with this latest policy flip-flop? Because Salmond said so. He gaffed on the BBC’s Today programme last week and then again on Newsnight. He agreed with Douglas Alexander that “Alex Salmond wants Scottish independence, but an English currency. That presumably means the Bank of England would set interest rates according to conditions within an independent country.” These fantasy economics would surely be laughable but for the fact that jobs, mortgages and bank balances across Scotland would depend upon them.

Spare a thought in all this separatist confusion for the man who lost out in a leadership race and then appealed to his party conference. “How can we in the SNP argue for full fiscal freedom from London if we are then prepared to hand back fiscal powers to Brussels and Frankfurt?” It should now be clear enough to that speaker, Alex Neil, that the SNP position is now even worse - to take a separate Scotland from a currency controlled by another nation straight into the euro - as a direct result of Salmond’s gaffe.

And, of course, the SNP has no answer as to what currency it would use in the medium to long term should it lose a referendum on joining the euro - surely the Nationalists wouldn’t wish to remain with sterling and having interest rates set by the Bank of England in perpetuity.

Bristow Muldoon, MSP

Gordon Labour Party website >>>

Labour attack SNP plans to cut defence jobs

Labour’s Adam Ingram today focused on SNP plans to cut defence jobs in an independent Scotland.

Launching a poster in Edinburgh this morning highlighting the SNP job cut plans, Armed Forces Minister Adam Ingram said:

“The SNP would be bad news for defence jobs in Scotland. They are a direct threat to the 26000 workers who are employed by the MoD directly or working directly on defence equipment contracts.”

“The SNP policy would be a hammer blow to Scottish modern manufacturing jobs, from ship yards to research at Universities. The SNP threaten to end Scotland’s historic involvement in an entire industrial sector. ”

Mr Ingram went on to say:

“An independent Scotland would be isolated and on the fringes of the international community, weakened by the separation of Scotland and the rest of the UK and out of NATO.”

“The SNP may be keen to hide their key policy of independence, but Labour will continue to ask the tough questions of the SNP they are trying to dodge.”

“As part of the Union, Scotland is stronger for being part of the UK. Scotland and the UK are stronger together, weaker apart.”

Online video messages launched to raise local issues during campaign

The Labour candidate in Gordon has made a series of sound and video messages available online as part of his campaign in the area.

Neil Cardwell believes it is important that voters throughout Gordon have the opportunity to find out about Labour’s work in the area.

Along with North East Labour MSPs Richard Baker and Marlyn Glen, he has set up a Gordon Labour website at : www.gordonlabour.org.uk

He hopes the website will stimulate local debate on issues such as improving local transport services, the fight against antisocial behaviour and local taxation.

The website also features news, information and an online survey on antisocial behaviour.

Neil Cardwell said:

“Over the next few months, I want to talk to as many people in Gordon as possible, both in person and online.

“I think people increasingly look for more than background information when they visit a campaign website so I have recorded a series of audio and video messages, each focusing on an important local issue.

“Each of the messages focuses on an issue which people in Gordon have identified to me over the last few weeks and months.

“I hope the website will help stimulate debate on improving local rail services, a fair local tax system and the need to continue fighting crime and antisocial behaviour.
“In the near future, we’ll be setting up a “Radio Gordon” news service to give people access to the very latest news about Labour’s work locally and a host of other exciting features.

“I hope people will visit the Gordon Labour website and let us know their views.”

The Gordon Labour website is at www.gordonlabour.org.uk

Neil Cardwell can be contacted at neil@neilcardwell.org.uk

Taxes would be higher under the SNP

Cathy Jamieson MSP, Labour’s campaign chair, said:

“Scotland faces a choice next May; education with Labour or separation with the SNP.

“People in Scotland know that Labour will invest in schools, skills academies and science, but they have never been sure what impact separating Scotland from the UK would have on taxes.”

“Official figures released last week now show that increased taxes are inevitable with the SNP, unless they intend to slash spending on schools, hospitals and transport.

“People are beginning to wonder what to believe from the SNP. Their economy spokesperson says taxes will come down, their leader in London says they will stay the same, but their campaign manager says they will increase. No wonder people are starting to question how competent an SNP government would be.”

Neil Cardwell says new report shows the “true cost of independence”

The Labour candidate in Gordon has highlighted statistics showing the impact of Scottish independence on public spending and has challenged Alex Salmond over the SNP’s financial policies.

Neil Cardwell is urging Mr Salmond to tell voters in Gordon whether he would raise taxes or cut public spending in order to address a £6bn shortfall between public revenues and expenditure identified in an independent report.

The annual report of Government Expenditure and Revenue in Scotland for 2004/05 shows public expenditure in Scotland exceeding revenues by £11.2bn with North Sea oil revenues excluded. With all North Sea Oil output attributed to Scotland, the deficit stands at £6bn.

Neil Cardwell said:

“Scotland currently benefits from a high level of public spending per citizen because we are part of the union.

“In contrast to this “Union Dividend”, an independent Scotland would face a substantial shortfall between receipts and public spending.

“A SNP administration would face a stark choice between increasing taxes or reducing vital spending in order to balance the books.”

Mr Cardwell believes that there a number of questions Mr Salmond needs to answer about the financial basis of his independence policy. He said:

“Given that, even with North Sea Oil revenues included, an independent Scotland would face a shortfall in public expenditure, Alex Salmond needs to provide voters in Gordon with answers about the cost of choosing independence.

“Mr Salmond needs to tell us how he would address the shortfall in public revenues and somehow fund the SNP’s ever-growing wish list of policy commitments.

“Would he support higher taxes for hard-working families in Gordon or would he rather see cuts in our local health and education services?

“Would vital policies such as free concessionary travel for older people be put at risk in order to pay for independence?

“I would like to hear a firm assurance that they would not.

“I think local voters deserve to hear answers to these questions before making up their mind who to support in next year’s elections.”

Link : Gordon Labour Party website >>>

Labour call on SNP to clarify position on local bank closures

Neil Cardwell, Labour’s candidate in Gordon, has expressed his surprise and concern at the inconsistency of other political parties on the issue of local bank closures and has called on the SNP in particular to clarify their position.

Clydesdale Bank closed a number of branches in Gordon this year, as part of a programme of 18 branch closures throughout the North East.

Among the communities to lose banks were Oldmeldrum, Rhynie, Insch, Tarves, Fyvie and Rothienorman.

Local MSP Nora Radcliffe’s decision to praise Clydesdale Bank in a parliamentary motion was heavily criticised by the SNP.

However, SNP Enterprise and Economy spokesperson Jim Mather recently lodged a similar motion, enthusiastically congratulating Clydesdale Bank for “being named the best bank in Scotland for business customers.”

Neil Cardwell, Labour candidate in Gordon, has called on the SNP to clarify their position.

He said:

“It is, quite frankly, hypocritical of the SNP to lodge this type of parliamentary motion when they criticised Nora Radcliffe for doing something similar.

“People throughout Gordon have been adversely affected by the Clydesdale Bank closures programme and deserve to know where the SNP stand on this important issue.

“The motion shows that the SNP are on the side of big business instead of local communities in Gordon.

“I think voters in Gordon will be keen to hear whether Alex Salmond endorses Jim Mather’s support for the Clydesdale Bank, despite their decision to close several branches in this area.

“I call on Alex Salmond to clarify his, and the Scottish National Party’s, position on bank closures in Gordon as a matter of urgency.”

The text of Jim Mather’s motion in the Scottish Parliament reads : Congratulations to Clydesdale - Best Bank for Business—That the Parliament offers its congratulations to Clydesdale Bank on being named the best bank in Scotland for business customers by the Forum of Private Business and trusts that the other banks in Scotland will continue, with the Clydesdale, to develop strong banking and support networks for Scottish businesses and continue to bolster Scotland’s international reputation for financial services that reward clients, no matter where they are based.

Gordon Labour website link : http//www.gordonlabour.org.uk