Disappointment over gloomy economic forecasts

A senior minister in the Church of Scotland has accused Chancellor George Osborne of not doing enough to help the poor and vulnerable.

Britain was dealt the bad news yesterday that it faces five more years of austerity as the Chancellor announced a cap on public sector pay at 1% until 2015 and further public spending cuts in the two years following the election.

The bleak outlook has been brought on by the weak recovery to Britain’s economy, pushing the Chancellor’s plans to clear the deficit into 2016 and 2017.

The Rev Ian Galloway, Convener of the Kirk’s Church and Society Council, said the Chancellor had not gone far enough to help ease the burden on the poorest and most vulnerable in society.

He said: “The paramount responsibility of any government is to help and protect the most vulnerable in society.

“I believe that the economy is there to serve society, and not the other way round. The Church of Scotland has long argued that dependency is not a sin for which sanctions are necessary in order to make people cast it aside. Dependency is a fact of life.

“In failing to make tackling poverty a priority Mr Osborne has not gone far enough in my opinion. We need to stress the importance of helping those in greatest need.”

Professor Charles Munn, former Chief Executive of the Chartered Institute of Bankers in Scotland is leading the Kirk's Special Commission on the Purposes of Economic Activity, which will report its findings to the General Assembly in May 2012.

He spoke of the Church’s role in educating society on the right relationship with money.

“What is of value is more than simply money. There are problems caused in society by wealth as well as the lack of it. Jesus talked about the ‘deceitfulness of wealth’,” he said.

“We want the Church to help bring a new vision of what might be achievable in the economic, social and community life of the nation, rather than simply a rush to return to ‘business as usual’.”

The Office for Budget Responsibility has slashed growth forecasts for the UK economy and the Chancellor has admitted that Britain could slip back into recession if the eurozone debt crisis worsens.

Niall Cooper, of Church Action on Poverty, warned on his blog that further public spending cuts would result in higher unemployment and more children in poverty.

He said the announcements from the Chancellor and the OBR painted a picture of “austerity with no end in sight”.

“The announcements from the Chancellor and Office of Budget Responsibility show yet again the real cost of the economic crisis is being born by those who are already struggling to make ends meet,” he said.