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A fair deal for the Highlands is needed now - for the Inverness Courier
EVERYONE knows that the British economy is in a mess and that there are going to be huge pressures on public spending in the years to come.
Everyone, it seems, except Alistair Darling, whose pre-budget report last week deliberately refused to show any of the difficult decisions that need to be made. People rightly expect greater honesty from their politicians.
The tough choices needed also demand much greater scrutiny of how the limited supply of public money is distributed. That is why local Liberal Democrat MPs, MSPs, and councillors have come together this week to launch a campaign for Fair Deal for the Highlands.
Highland Council is being forced to make big budget cuts over the next three years. And of course, in common with other parts of the public sector, councils will need to make savings. I am sure the council will show the right priorities, but their job would be easier if the funding deal for the Highlands was fairer.
Decisions made in both Edinburgh and London are making matters worse here - denying the Highlands money that is much needed. Unless we can change minds quickly, the cuts will be greater than they need to be. We need fairness for the Highlands.
First, the Edinburgh government. The SNP government has removed any budgetary flexibility from local government so Highland council is 100 per cent dependent on a block grant from Edinburgh. Scotland is now the most centralised part of the UK, with no local flexibility on money raising at all. Councils' hands are tied - even though many local people tell me they would happily pay a little more if they knew the money would go directly to protecting local services.
The council tax freeze may sound good, but in fact it is costing the Highlands much needed money. It is also unfair, because the richest people get the biggest benefit. The council tax freeze has given £800 to the wealthiest Scots, but only a few pence a week to the poorest. Like the Tories, the SNP's policy is helping the wealthiest most, while the poorest will be hit hardest by the service cuts Holyrood is imposing at arms length.
That's why we are asking the SNP government in Edinburgh to release an additional £20 million to the Highlands. That is the extra £10 million that we would have had available locally if we had been able to raise the council tax, and an extra £10 million that we calculate is the unrecognised additional extra cost of delivering services in remote and rural areas.
It is astonishing that the funding formula for Highland Council still fails to recognise the huge extra costs of delivering services in the largest, coldest, and most sparsely populated part of Scotland. The unfairness will become increasingly evident as the public spending squeeze bites. I hope very much that the Edinburgh government will respond positively to our fair and reasonable request on behalf of the Highlands.
We also need help from Westminster. While Mr Brown seems focused on electioneering, we need to persuade them to do the right thing in two areas.
First, the council's housing debt needs to be written off. This huge debt that has been accrued costs the Highlands over £15 million a year - money that could be much better spent meeting the desperate need for affordable housing in the Highlands. Billions have spent bailing out the banks - and letting them get away with huge bonuses - and our request is small by comparison.
Secondly, fuel costs are a major part of the council's budget - especially given the distances involved in school transport and other services. Labour - and the Conservatives - have consistently resisted our demand for a reduced rate of fuel duty for remote and rural areas.
We need to redouble our efforts on this campaign. Not only would a duty cut - similar to that used in France, Greece and Portugal - benefit Highland families, it would also save the council a great deal too. Any government serious about helping the Highlands would do this right away.
The key test of all parties and governments in the current economic and political circumstances can be summed up in one word: fairness. Getting a fair financial deal for the Highlands is critical to ensuring that local people don't pay a disproportionate price for the economic mistakes made by others.
Posted on: 15/12/2009
