The austerity backlash: public support for the welfare state rises

The 2013 British Social Attitudes report shows a significant rise in support for higher benefits even if it means higher taxes.

One truism among George Osborne and his team is that "you can never be too tough on welfare". But after three years of benefit cuts, the new (and always fascinating) British Social Attitudes report shows that support for the welfare state and sympathy for the unemployed is rising. 

The number of people agreeing that benefits for the jobless are "too high and discourage work" fell from a high of 62% in 2011 to 51% in 2012. There has also been a five point increase in the number (47%) who believe that cutting benefits "would damage too many people’s lives". In addition, 34% support spending more on social security even if it means higher taxes, up from 28% in 2011. The proportion who believe that the unemployed could find work if they really wanted to, has fallen from 68% in 2008 to 54%. It does appear, as the survey's organisers suggest, that austerity is "beginning to soften the public mood" although it's also possible that the coalition's welfare reforms (such as the benefit cap) have increased confidence in the system. 

Less happily, support for the welfare state remains at a near-record low. In 1987, 55% of the population favoured spending more on benefits, a figure that now stands at 34%. But given the misinformation spread by the media about the system, this is hardly surprising. More than eight out of 10 (81%) believe that large numbers of people falsely claim benefits (fraud actually represents just 0.7% of the budget) compared with 67% in 1987.

But if there is any consolation for social democrats, it's that the numbers are at least moving in the right direction. I'd expect this trend to continue as Osborne's cuts to in-work benefits and tax credits (which are being uprated by just 1%, a real-terms cut) hit families already suffering from the longest squeeze on living standards since the 1870s. The coalition, which rejoices in reinforcing tabloid myths of "scroungers", may yet find that it has underestimated the decency of the public. 

Work and Pensions Secretary Iain Duncan Smith arrives to attend the government's weekly cabinet meeting at Number 10 Downing Street. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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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.