Support for Scottish independence falls to new low

Just 23 per cent of voters now support independence, the lowest level since devolution in 1999.

One referendum that is guaranteed to take place in is that on Scottish independence in 2014 and the "no" campaign (or, as it prefers to be known, Better Together) is in an ever-stronger position. The 2012 Scottish Social Attitudes Survey, the results of which were released today, shows that support for independence has fallen to just 23 per cent, down from 32 per cent last year and the joint-lowest level since devolution.

Most notable is that backing for independence is now at a lower level than it was when the SNP came to power in 2007, a reminder that many voters support the party in spite of its support for secession, rather than because of it. Before Alex Salmond became First Minister, support for independence averaged 30 per cent, since then it has averaged 26 per cent. 

One question that some have posed is whether David Cameron's support for an in/out EU referendum will work to the SNP's advantage. Polls frequently show that Scottish voters are more supportive of EU membership than their English counterparts. Salmond declared yesterday:

 

This completely changes the nature of the debate in Scotland. The Westminster parties have consistently claimed that a referendum on Scotland’s independence causes uncertainty.

It is now clear the persistent undercurrent of Tory Euroscepticism poses the biggest threat to Scotland’s position in the EU and has now helped to hole below the waterline the baseless scaremongering of Alistair Darling and the rest of the No campaign.

Yet given that just five per cent of Scottish voters regard the EU as one of the most "important issues" facing Britain and the uncertainty over whether Scotland would automatically inherit the UK's EU membership, it is rather optimistic of Salmond to assume this will aid his cause. 

Support for Scottish independence has averaged just 26 per cent since Alex Salmond became First Minister. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR