Scottish households see savings plummet

Household savings in Scotland have fallen by 60 per cent since 2010.

Analysis carried out by Scottish Labour has revealed that in 2010, households had on average £3,840.41 in the bank, but by 2017 this was reduced to £1,517.31.
The figures also found household spending has continued to increase at a faster pace than disposable income, adding to the risk people will go into debt.

Labour said the figures reveal a broken economy under the Tories and they come in the same week that debt charity StepChange released figures showing that almost 700,000 people in Scotland have problem debts or are at risk of having them, with thousands struggling with essential household bills – especially Council Tax.

In its report, Scotland in the Red, StepChange disclosed that it alone was contacted by over 30,000 people last year seeking debt help, across every constituency in Scotland.

Labour Finance spokesperson James Kelly MSP said: “The Tories came to power promising a long term economic plan – but the impact of a disastrous near decade of austerity has been to shrink savings for families in Scotland.

“The Tories used to try and compare our complex economy to a household budget to justify their crusade to shrink the state – but instead all they
managed to do was to shrink household budgets themselves.

“This is as a result of a cost of living crisis fuelled by stagnant wages and personal debt. All the while the incomes of the super wealthy have soared because
of tax cuts at the top.

“Labour will make our economy work for the many, not just a privileged few by investing in our people communities and public services.”

Also commenting on the figures, Tom Arthur, SNP for Renfrewshire South and a member of the finance and constitution committee, added: “Unnecessary Tory cuts have held back our economy, damaged public services, and hammered the incomes of millions of Scots by squeezing family budgets. Whilst Labour and the Tories work hand-in-hand to slash household budgets and force more austerity on the UK, the SNP are helping people with the cost of living – whether that’s through free prescriptions for everyone, increased carers’ allowance, Best Start Grants for parents on low incomes and a range of other measures.”