Sturgeon drags Scotland to the left with plan for universal income – Telegraph.co.uk

First Minister Nicola Sturgeon vowed to introduce rent controls, expand free healthcare and lay the groundwork for a universal basic income as she set out a government agenda that will drag Scotland to the left.

Setting out her policy programme after agreeing a coalition deal with the Green Party, the First Minister confirmed plans to trial a four-day working week, plough an extra 2.5bn into health spending and work to develop a minimum income guarantee.

Ms Sturgeon said the guarantee will be a mixture of earnings and targeted state payments in a bid to lay the foundations for a universal basic income if Holyrood captures full tax and spending powers.

Speaking to the Scottish parliament, she said: As we emerge from the pandemic, choices fall to be made that will shape our economy and our society for decades to come. Which parliament - Westminster or Holyrood - should make these choices?

Officials in Holyrood will begin to rebuild the economic case for independence in a detailed prospectus ahead of a new referendum before the end of 2023, Ms Sturgeon also revealed. Economists warned the economics of a Yes vote are even more challenging than at the time of the first referendum.

The SNP fell short of an overall majority in Scottish parliamentary elections in May but has struck a power sharing tie-up with the pro-independence Greens.

The slew of giveaways and experimental welfare policies will be seen as another step towards the left for Scotland as the SNP attempts to persuade voters to turn away from the UK.

While polling suggested that Scots were in favour of independence earlier this year, the no vote has retaken the lead as the vaccine campaign kickstarted the economys recovery.

Paul Dales, economist at Capital Economics, warned that the economics of independence are even more challenging than at the time of the first referendum in 2014.

He said: It would require Scotland to put in place credible plans to cut the budget deficit. The resulting fiscal squeeze would restrain economic growth.

Scotlands notional deficit soared to 22pc of GDP in 2020-21, and was far larger than the rest of the UKs before the pandemic struck. Economists warned that an independent Scotland would likely have to implement massive austerity to shore up the countrys finances given this large shortfall.

Ahead of Tuesdays announcement, one of Ms Sturgeons own advisers warned of a complete lack of specificity in the economic plans for independence.

Prof Mark Blyth, a member of the First Minister's new economic advisory council, pushed back against nationalist hopes of Scotland moving to the Scandinavian model.

He said: How do you become your own thing given where you're starting? That's the only thing that really needs to be answered."

The SNP-Green programme also included a National Care Service Bill to boost funding for the sector, while a system of wraparound childcare will be created to offer support before and after school and during the holidays.

It also included a number of climate pledges, with another 500m earmarked to provide green jobs, and a promise of more than 33bn in capital investment over the course of the parliament.

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Sturgeon drags Scotland to the left with plan for universal income - Telegraph.co.uk