UK politics and the economy have been dominating the news for months. As the cost of living crisis continues to bite workers across the country, we have seen significant instability in 10 Downing Street.

On Wednesday 17 November, the Work Foundation was joined by Westminster Leader of the Scottish National Party, Ian Blackford MP, to hear his views on the key issues facing workers, employers, communities and the labour market after this turbulent period.

This interview came on a significant day for the SNP, with the Supreme Court ruling that the Scottish Government cannot hold an independence referendum without the UK Government's consent. While highlighting that his party respects this ruling, Blackford made clear his desire to for public debate to move beyond the mechanics of how a referendum would take place, and towards a deeper discussion on what kind of country we want to live in, and how we should create economic growth and better jobs for people.

Decline in living standards

We are now in a recession, with a Government that has overseen substantial tax rises and spending cuts. With unemployment predicted to rise, stubbornly high inflation outpacing wage growth and economic inactivity continuing to grow, how have we ended up in this position and what does it all mean for working people across the country?

Citing a recent OBR forecast which suggests that real living standards are going to decline by 7% over the next two years, and Resolution Foundation research that predicts real wages stagnating between 2008 and 2027, Blackford commented that, ‘In essence, you are talking about a 20-year period where people have stood still. For my generation, we were brought up with an expectation that we would be wealthier and have a better living standard than our parents, and our parents had better living standards than our grandparents. That has been broken.’

‘The UK is the fifth largest economy in the western world, yet we have the highest rates of inequality in North West Europe, we had high rates of poverty and fuel poverty even before going into the cost of living crisis. I would pose the question, what has got us to this point? I would say that it has been a failure of policy over a long period. The inequality that we suffer from is a political choice.’

When Blackford entered Westminster in 2015, the first debate he participated in was on anticipated cuts to working tax credits. While some of the plans for cuts were reversed as a result of that debate, he suggested that there is a wider question here to contend with, ‘How have we ended up in this position as a society, where people are having to rely on the Government to supplement their income because they are not earning enough? There’s something wrong with society if you are in a situation where people can’t earn enough in order to have a basic level of income and be able to afford a decent living standard.’

Green energy and good jobs

In response to the question of what impact further devolution or independence would have on jobs in Scotland, Blackford spoke passionately about the role of the transition to green energy in creating good jobs and opportunities for people in Scotland, something which he hinted that the UK Government has failed to sufficiently prioritise in its industrial strategy.

Work Foundation research conducted in Lancashire in 2021 found that 47% of low-carbon businesses find it difficult to recruit staff with the skills they need, and almost a third (32%) find it hard to recruit for specialist skills. It is likely that one of the barriers for Scotland in making a success of the green transition will also be the skills pipeline.

What are the Scottish Government doing about this now, and what support are the looking for from Westminster in tackling this?

Blackford noted that Scotland has the highest proportion of its working-aged population with a higher education qualification in Europe, but acknowledges that we cannot be complacent when it comes to ensuring we have a workforce with the right skills. And in terms of supporting people whose jobs are at risk in this transition, Blackford highlighted that the Scottish Government already supports retraining schemes.

Not only does the transition to green energy require access to educational opportunities and further investment in skills and training, he also made the case that, ‘If we cannot supplement our ability to drive innovation and skills domestically with overseas labour, then quite frankly we are in big trouble.’

‘One of the reasons that we want Scotland to be independent is because we want to be back in the European Union. If you look at the £30 billion of public sector cuts that are going to be coming down the line, I would point the finger of blame at the impact of Brexit. There’s been an act of economic self-harm and I want to reverse that and make sure that an independent Scotland can benefit from these economic opportunities.’

Insecure work and barriers in the labour market

As well as impacting on the ability of UK employers to recruit workers from Europe, Brexit has also meant that the UK Government now has the opportunity to diverge below EU standards of workers’ rights and protections. Our research found that those who would be most affected by these deviations have been suffering insecurity, low pay and poor working conditions long before Brexit and the onset of Covid-19.

Insecurity has become a more prominent feature of the UK labour market over the last 20 years, with our Insecure Work Index estimating that around 6 million people experience insecure work in the UK. With the prospect of an Employment Bill shelved by the current Government, and attempts to put a sunset clause on EU-derived regulations, what should the UK and Scottish Governments be doing about this?

We know that those who already face barriers in the labour market are most at risk of insecure work, and Blackford made clear that this is something that the Scottish Government is working to address. For example, in tackling the barriers faced by many women in securing and staying in employment, they have already increased the number of hours of free childcare from 600 to 1,140 hours a year.

But there is much more that can and should be done. For instance, disabled people face a significant employment gap and when they are employed, they are more likely to be in insecure work. Blackford called this ‘completely unacceptable’ and suggested that while solving these issues may not be particularly easy, we need to ensure that the right policies are in place to support people, and support employers to do the right thing. One such policy would be making the right to request flexible working a day one right, something which he ‘unequivocally’ supports.

The interview is available as a podcast.

Disclaimer

The opinions expressed by our bloggers and those providing comments are personal, and may not necessarily reflect the opinions of Lancaster University. Responsibility for the accuracy of any of the information contained within blog posts belongs to the blogger.