Shift on benefits 'may cost Labour'

Nov 8 2012

Labour's review of universal benefits could leave the party unelectable and would cost its leader her job, the First Minister has said.

Johann Lamont has hit out at what she describes as Scotland's "something for nothing" culture, casting in doubt Labour's support for free university tuition fees, the council tax freeze and free NHS prescriptions.

She also accused Alex Salmond of delaying £3 billion of spending cuts until after the independence referendum in 2014.

But the SNP leader said Labour's review of such public services put at risk the "crucial gains of devolution".

Mr Salmond, who is now Scotland's longest-serving First Minister, pointed out that Ms Lamont is the fourth Labour leader he has faced at Holyrood. "If she pursues this line she will certainly not be the last Labour leader I face across this chamber," he said.

While Labour questions the affordability of benefits such as free prescriptions and concessionary travel for elderly people, it supports keeping Trident nuclear missiles, he said.

"How can the Labour Party maintain the position that spending on weapons of mass destruction is essential but services for the people of Scotland can be dispensed with?" Mr Salmond asked. "On that programme, they will never be re-elected in this Parliament."

But Ms Lamont urged the First Minister to "come and join the rest of us in the real word", as she asked him: "When will he face up to the cuts happening now in the real world and the £3 billion worth of cuts he is delaying until after his referendum?"

The Labour leader challenged the First Minister on public spending after Auditor General Caroline Gardner voiced concerns about the NHS and college funding. Raising the issue at First Minister's Questions at Holyrood, Ms Lamont said: "According to Audit Scotland, the NHS has an outstanding £1 billion in terms of repairs. They have lost more than 2,000 nurses. The First Minister has imposed real-terms cuts to the NHS of almost £200 million."

The First Minister defended his Government's performance, saying a recent Audit Scotland report "pointed out that Scotland's health service is well managed in terms of its finances".