Miliband makes his first major spending pledge: Labour won't cut the NHS

A Labour government would not consider "cutting the health service", says Miliband in his biggest post-2015 commitment.

Largely unnoticed by the media, Ed Miliband has made his first major spending commitment. Challenged by Nick Robinson on whether a Labour government would consider making cuts to the NHS, Miliband replied:

We're not going to be cutting the health service, I'm very clear about that. We will always be protecting the health service and will always make it a priority.

His decision to rule out cuts to the NHS, even at this early stage, is unsurprising. Polls show that it is the most popular spending area with voters and the above-average rate of inflation in the health service means it frequently requires real-terms rises just to stand still. With David Cameron and George Osborne making it clear that the Tories would continue to ring-fence the NHS after 2015, Labour has no intention of finding itself on the wrong side of this political divide. 

Miliband's pledge means that the Lib Dems are, once again, likely to go into the general election as the only party that would consider making cuts to health. Ahead of the 2015-16 Spending Review in June, Vince Cable has continued to argue that ring-fencing is not "a very sensible" long-term approach.

Ed Miliband said a Labour government would "always be protecting the health service". Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty
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Scotland's vast deficit remains an obstacle to independence

Though the country's financial position has improved, independence would still risk severe austerity. 

For the SNP, the annual Scottish public spending figures bring good and bad news. The good news, such as it is, is that Scotland's deficit fell by £1.3bn in 2016/17. The bad news is that it remains £13.3bn or 8.3 per cent of GDP – three times the UK figure of 2.4 per cent (£46.2bn) and vastly higher than the white paper's worst case scenario of £5.5bn. 

These figures, it's important to note, include Scotland's geographic share of North Sea oil and gas revenue. The "oil bonus" that the SNP once boasted of has withered since the collapse in commodity prices. Though revenue rose from £56m the previous year to £208m, this remains a fraction of the £8bn recorded in 2011/12. Total public sector revenue was £312 per person below the UK average, while expenditure was £1,437 higher. Though the SNP is playing down the figures as "a snapshot", the white paper unambiguously stated: "GERS [Government Expenditure and Revenue Scotland] is the authoritative publication on Scotland’s public finances". 

As before, Nicola Sturgeon has warned of the threat posed by Brexit to the Scottish economy. But the country's black hole means the risks of independence remain immense. As a new state, Scotland would be forced to pay a premium on its debt, resulting in an even greater fiscal gap. Were it to use the pound without permission, with no independent central bank and no lender of last resort, borrowing costs would rise still further. To offset a Greek-style crisis, Scotland would be forced to impose dramatic austerity. 

Sturgeon is undoubtedly right to warn of the risks of Brexit (particularly of the "hard" variety). But for a large number of Scots, this is merely cause to avoid the added turmoil of independence. Though eventual EU membership would benefit Scotland, its UK trade is worth four times as much as that with Europe. 

Of course, for a true nationalist, economics is irrelevant. Independence is a good in itself and sovereignty always trumps prosperity (a point on which Scottish nationalists align with English Brexiteers). But if Scotland is to ever depart the UK, the SNP will need to win over pragmatists, too. In that quest, Scotland's deficit remains a vast obstacle. 

George Eaton is political editor of the New Statesman.