The Good Society

 I was at an event last year where I was asked to list three books that have most influenced my thinking. One of those was The Spirit Level (2009) by Professor Richard Wilkinson and Professor Kate Pickett. 

The Spirit Level sounded the alarm on the corrosive effects of economic injustice. At a time when only a few academics were exploring this issue, it provided a comprehensive analysis linking the negative effects of inequality to a wide range of social ills. It revolutionised the way we looked at, measured and understood the impacts of inequality. Fifteen years on, its warnings ring truer than ever, exacerbated by years of austerity. The authors have published a report, "The Spirit Level at 15, " which highlights many of these issues.

Kate Pickett has also written a new book, The Good Society, which takes her analysis to the present day.

She starts with a (long) definition of a good society. Essentially, a society where everyone's physical and mental health is as good as it could be, by focusing on levelling inequality. Prevention before cure and ensuring the wellbeing of future generations. If those are not your priorities, you will struggle with this book. She argues that society is not improving because a few people are becoming fabulously rich. Tackling poverty and inequality benefits our society as a whole.

This is a book of two halves, not just because I read it on a long train journey to a football match! The first half outlines the blueprints for a good society, focusing on health, care, education, the environment, and justice. The second half explains how to build a good society.

As you would expect, almost every argument is referenced with evidence, and often illustrated with real-world examples. For example, in the city I was born in, Liverpool, half of the children born in 2009 and 2010 had been referred to children’s services by the time they were five. Many of her facts come from well-resourced, government-commissioned reports, with comprehensive recommendations that are repeatedly scuppered by another election, and put on a shelf to gather dust. A story we know only too well in Scotland, with the Christie Commission being just one pertinent example of this theme. Like The Spirit Level, it draws on international examples to show that another world is possible. 

Her solutions are not simply about income, vital though that is, but about engagement. She suggests participatory budgeting,  citizen assemblies and the strengthening of trade unions, alongside a National Institute for Social Change, for “ongoing proper assessment of the effectiveness of proposed social policies, their cost effectiveness”, so that the “then government could act on those things”. Where I part company with her is on the establishment of 'National' services for everything, unless they are limited to frameworks.

In interviews, Pickett has been critical of the incoming Labour government, "Given their mandate for change, I think they could and should have been bolder and faster.” New reviews are fine "unless they sit on the shelf, gathering dust, like so many other government reviews." It would be hard to disagree with that. Jonathan Portes has criticised the book as a "whistle-stop tour of the greatest hits of progressive social policy." Yes, there could be more depth, but that would make the book unreadable and just another report gathering dust on the shelf. The purpose of a book like this is to educate and inspire. On some of his specific criticisms, such as the evidence on Universal Basic Income, he has a point.

It is inevitable that a follow-up book will not be as influential as the original. However, it is important that the case for tackling inequality is refreshed. And this book does just that.

Scottish Budget 2026-27 - patch and mend

 The Scottish Government has published its draft budget for the coming year. I wrote a pre-budget briefing for the Jimmy Reid Foundation outlining the challenges facing the Finance Secretary. I also penned an opinion piece in The National, setting out what I, and Tax Justice Scotland, hoped to see in the Budget. The extra cash in the UK budget meant that the Scottish Government could patch and mend the Scottish Budget this year - at least for resource funding. However, the looming deficit means that we need to start putting Scotland’s finances on a sustainable footing. We need a longer-term view, particularly on tax. 

"We’ve patched, postponed, pretended. Now Scotland must choose: keep letting services quietly crumble, or invest properly in the people and places that make this country tick. That requires an open debate on our willingness to pay for the country we want. And the really big question is whether, in an election year, our politicians are willing to have it."

God loves an optimist, but hoping for tough choices in an election year was probably too much to ask for. Not unlike the UK Budget, what we got was patch-and-mend. This is my quick take.

Not that there are no welcome patches. Breakfast clubs, a bit for housing and college funding; not enough, but some relief for a hard-pressed sector that has been discriminated against for years. The Scottish Living Wage for social care workers is always welcome, but it will take more than that to address staff shortages in the sector. Equally important, there is little sign that the government understands the link between social care and hospital capacity, as set out in yesterday's SHA survey and Audit Scotland report. The increase in the Child Payment is welcome, if insufficient, and at least demonstrates a willingness to address child poverty.

The capital budget is struggling, although, in fairness, this largely reflects the Scottish Government's inadequate borrowing powers. Promises to deliver projects long into the future will convince no one. A two per cent 'real-terms' increase in council funding will hardly touch the sides of the demands on local government services, so difficult tax decisions have just been outsourced to councils. This chart from the SFC highlights the problem. 

There are also some positive tax measures. Taxing private jet departures is something many of us have argued for. Raising the thresholds on basic and intermediate income tax rates retains the progressivity of the Scottish approach and allows the government to claim that 55% of Scots will pay less income tax than the rest of the UK, sustainable or not. The Scottish version of the Mansion Tax won't raise much revenue (nothing next year), and it is a long way from the Council Tax reform the SNP promised as far back as 2007. More patch and mend there. 

Instead of a proper review of business rates and the weak Small Business Bonus scheme, we have another patch, unlikely to satisfy many on either side of this debate. And £1.5bn savings from public service reform - that will be right! The Scottish Fiscal Commission's forecasts don't make great reading either, on the economy, tax, or public finances.

SFC, "Overall, the additional funding available to the Scottish Government for both resource and capital relative to June 2025 is small compared to the size of the Budget and the scale of the fiscal challenges identified by the Scottish Government in its MTFS in June 2025." If the wishful thinking reform savings don't materialise, and most are from health and social care, this could get very serious. As the SFC says, "The progress towards achieving these targets for recurring savings to date, and the number of health boards not breaking even, suggest that it could be challenging for the Scottish Government to deliver the efficiency savings it has incorporated into the Health and Social Care portfolio spending plans."

Overall, this is a classic election-year budget. A few eye-catching sweeteners, a little cash spread around to placate as many people as possible, and promises of great things in years to come. The tough decisions are deferred to the next government.