News Summary

News Summary

            Article Title: Scots Economy to lose 1.6bn’ through welfare cuts

Article link: http://www.bbc.co.uk/news/uk-scotland-22104469

Issue:  Welfare cuts will have a dramatic impact on Glasgow, Inverclyde, Dundee and West Dunbartonshire.

            “The Welfare cuts will take more than 1.6 billion out of the Scottish economy and hit the poorest parts the hardest, according to the independent research."

             The government approved the cuts because they are trying to make the welfare reform bill sustainable. The cuts will have a prominent effect on the cities, such as Glasgow, Invercylde, Dundee and West Dunbartonshire, with a large amounts of poverty. The welfare reform is meant to have a positive effect on Scotland's economy as a whole, but individual cities will suffer. The impact on poorer cities is generally overlooked because other cities can afford to deal with the cuts. 

Topic relation to class:

The welfare cuts will hurt the poorest parts of Scotland the hardest. Every working adult in Glasgow is going to lose  650 a year. Glasgow has set a tourism strategy that is expected to bring another 9,000 tourism related jobs and generate  1 billion annually.¹ In class, we discussed how tourism could have a negative and positive impact on society; in this situation in Glasgow, tourism can have a very positive impact economically. Tourism could save Glasgow from a downfall due to the welfare cuts. This article is also related to National Income and its components. The government is doing this to decrease government spending and increase the national income.

Cause: 

The welfare cuts are due to the Welfare Reform of 2012, which is meant to save Scotland approximately  18 billion annually.² The only resolution I can see is to increase Scotland’s income by increasing exports and to continue developing the tourism strategy.  The policy related Welfare Reform is meant to improve Scotland’s economy, but they could implement a policy to offset the negative effects on the cities with higher poverty rates.

           

References

1         1. “Glasgow Tourism Strategy.” Accessed April 20, 2013.

        http://www.visitscotland.org/what_we_do/partnership_initiatives/area_tourism_partnerships/glasgow.aspx.

           

           2.  "Welfare Reform Update - Ac_120116_welfare_reform.pdf.” Accessed April 20, 2013. http://www.audit-scotland.gov.uk/docs/local/2013/ac_120116_welfare_reform.pdf.