---
election_year: 2001
party_id: scottish-labour
party_name: Scottish Labour Party
party_leader: Henry McLeish
political_spectrum: centre-left
victory: true
government_outcome: majority
sections:
  - economy
  - taxation
  - health
  - education
  - housing
  - defence
  - foreign-policy
  - environment
  - transport
  - law-and-order
  - welfare
  - democracy-and-constitution
  - agriculture
  - energy
  - devolution
  - science-and-technology
  - local-government
---

# Scottish Labour Party Manifesto 2001

## Contents
* Fulfilling Britain's great potential: The Prime Minister sets out his vision for Britain's future
* Building a better Scotland: by Helen Liddell, Secretary of State for Scotland, and Henry McLeish, First Minister
* Prosperity for all: How we expand our economy and raise our living standards
* World-class public services: How investment and reform will improve public services
* A modern welfare state: How we help people into work and provide security for those who can't work
* Strong and safe communities: How we tackle crime and renew our society
* Britain strong in the world: How we make foreign policy work for Britain and the wider world
* The choices for Scotland: A lot done, a lot to do, and a lot to lose
* 25 steps to a better Scotland: Our key steps for a second term
* The contract delivered: How Labour has fulfilled its first-term promises

## Fulfilling Britain’s great potential

This election is in many ways even more important than the last. Since May 1997 we have laid the
foundations of a Britain whose economy is stronger, where investment is now pouring into public
services, where social division is being slowly healed and where influence abroad is being regained.

But these are only the foundations of larger change. Now is the chance to build the future properly,
to make the second term the basis for a radical programme of British renewal: to keep a firm grip on
inflation, with low interest rates and the public finances sound, and then build the dynamic and
productive economy of the future; to keep investment coming into public services and then make the
reforms so we use the money well; to refashion the welfare state on the basis of rights and
responsibilities, with people helped to help themselves, not just given handouts; to ensure all
families are safe in their communities by tackling crime and its causes; and to give Britain back
its leadership role in the world.

We need the second term to do it. That is the choice: to make progress or to dismantle the
foundations laid. And with the state of today’s Conservatives, the choice is stark.

This choice will decide whether more people will be able to realise their aspirations for themselves
and their children – to be able to rely on a stable economy where hard work is rewarded by rising
living standards, to receive world-class education and healthcare, to enjoy a dignified old age, to
feel safe and secure in a strong community, and to be proud to be British. Or whether we will be
held back by the traditional British malaise of restricting life’s great opportunities and blessings
to a minority. There is much still to be done, but we have come a long way in four years.

Britain stands more prosperous, more equal, more respected. Our country is on a new course.

My passion is to continue the modernisation of Britain, in

favour of hard-working families, so that all our children, wherever they live, whatever their
background, have an equal chance to benefit from the opportunities our country has to offer and to
share in its wealth.

interests and social division, complacency bred by harking back to the past. We achieved spurts of
economic growth, but inflation would then get out of control. Our welfare state was founded to offer
security, but its progress was stalled. We reached out to Europe, then drew back to become
semidetached.

It is as if a glass ceiling stopped us fulfilling our potential.

In the 21st century we have the opportunity to break through the glass ceiling, because our historic
strengths match the demands of the modern world.

We can use our openness and entrepreneurial flair to become a global centre in the knowledge
economy. We can use our sense of fair play and mutual responsibility to be a strong, dynamic,
multiracial society held together by strong values. We can use our historic and geographical
position to link Europe and America and help the developing world. The key to tapping our strengths,
to breaking through the

glass ceiling, is contained in a simple idea that is hard to achieve, set out at the heart of our
constitution as a party: the determination to put power, wealth and opportunity in the hands of the
many, not the few.

I know as well as anyone that we have just begun; millions of hard-working families want, need and
deserve more. That means more change in a second term, not less, to extend opportunity for all. We
reject the quiet life. We must secure a mandate for change.

### Ten goals for 2010

* Long-term economic stability
* Rising living standards for all
* Expanded higher education and higher school standards
* A healthier nation with fast treatment, free at the point of use
### The challenge for Britain

I am honoured to be Prime Minister. And I have a confident belief in our country. We are not
boastful. But we have real strengths. Great people. Strong values. Proud history. The British people
achieved magnificent things in the 20th century. But for too long, our strengths have been
undermined by weaknesses of elitism and snobbery, vested

* Full employment
* Opportunity for all children, security for all pensioners
* A modern criminal justice system
* Strong and accountable government
* British ideas leading a reformed and enlarged Europe
* Global poverty and climate change tackled.
### Shifting the odds for hard-working families

In 1997 we promised a start, not a revolution. We made five specific five-year pledges. Three have
been completed early; all will be completed within five years, as promised. Our pledge that Scotland
should have its first Parliament in 300 years has been met and Britain is stronger as a result. Each
pledge is matched by further achievement: the lowest inflation and unemployment for a generation,
one million new jobs, 100,000 extra operations in the NHS in Scotland, the best primary school test
results ever and, as the Scottish Crime Survey shows, crime is at its lowest level for 20 years.

We also offered a ten-point contract to the British people. The results are at the back of this
manifesto. Not everything has gone right – it never does. But we are getting there, easing burdens
and extending opportunities – by choice, not chance. Economic instability wrecks the lives of hard-
working families. So we chose to put the public finances right. It meant tough decisions, opposed by
the Conservatives. But today the economy is stable and growing, and interest rates are nearly half
the level they averaged under the Conservatives.

Unemployment steals dignity. So we chose to introduce a windfall tax on the excess profits of the
privatised utilities, to help unemployed people back to work. That was opposed by the Conservatives,
who are now pledged to abolish the New Deal. But today, youth unemployment is at its lowest level
since 1975 and long-term unemployment at its lowest level since 1978. Poor education is a cruel
injustice. So we chose to focus on standards in our schools. And today, primary schools are
achieving better results than ever before.

A run-down health service causes insecurity. So we chose to reform the NHS and inject new money.
Waiting lists and times are now falling, and the number of nurses and doctors is now rising. Poverty
denies basic rights. So we chose to reform the welfare state to channel extra money to the poorest
pensioners and poorest children. Today single pensioners can look forward to a minimum income of
£100 a week, £154 for pensioner couples, and over one million children have been taken out of
poverty, 100,000 of them in Scotland.

The centralisation of power only helps the powerful. So we chose to break the suffocating
centralisation of British government. The UK has been strengthened. Today it is the Conservatives
who threaten the stability of the UK with their proposals for two classes of MP.

This manifesto sets out our vision for continued

partnership between Labour at Westminster and Labour in the Scottish Parliament. It sets out the
future plans for modernisation of Scotland’s public services that have already been set in train by
Labour in the Scottish Parliament. It is the job of the Labour-led Scottish Executive

in the Scottish Parliament to deliver the necessary improvements to public services in Scotland. The
task of a Labour government is to deliver the investment needed to make that change happen.
Isolation from Europe does not help anyone. So we chose to engage constructively in Europe, not
shout abuse from the sidelines. Today Europe is moving in a direction that is good for Britain and
good for Europe. In policy for aid, development and international debt relief, we have led the way.

Of course, there are still big problems, but we are better

off, better educated, better governed, better respected abroad. There has been another change too. A
change of priorities and values. We learnt in the 1980s that looking

Better primary school results than ever before… now we focus on secondary schools

after number one was not enough; that without opportunity, responsibility was weak; and that an
unfair society was a less prosperous one. The philosophy was wrong; it hurt millions of families and
it left our country with lasting problems.

We have shown we are a reformed party, competent to govern. Now we offer more. More change and more
rewards for Britain’s hard-working families: more prosperity, more opportunities, more security.

### Ambitions for Britain

Stretching the family budget; finding time for children as well as work; holding on to mutual
respect; staying healthy when there can be hazards even in the air we breathe. These are daily
worries that confront people.

They are my concerns too. But, while there is always a market for people who say we are doomed, that
all new ideas are bad ideas even as things improve, that we might as well curl up with our
prejudices and shut the door on the world, I am an optimist. New Labour is ambitious for Britain’s
future and is ready to lead. First, we will sustain economic stability and build deeper prosperity
that reaches every region of the country. Skills, infrastructure, the technological revolution – all
are vital to raise British living standards faster. We will put as much

energy into helping the adults without basic skills as we did in tackling long-term unemployment
through the New Deal. Second, we seek to achieve a renaissance of status and quality for public
services and their staff – above all, in our goals for education and health. We will continue to
raise standards in our schools; we will invest new resources, and support doctors and nurses to
transform health services; we will seek to extend the very best in culture and sport to all.

Third, we seek to modernise the welfare state. The benefits system will be restructured around work;
support for children and families through the tax and benefits system will be transformed; cash and
services for pensioners will be radically improved. Fourth, we will strengthen our communities,
above all, by continuing to cut crime. We will tackle head on Scotland’s drug dealers. And because
we know that without tackling the causes of crime we will never tackle crime, we will strengthen and
empower local communities.

Fifth, we will turn our inner confidence to strength abroad, in Europe and beyond, to tackle global
problems – above all, environmental degradation and the shame of global poverty. We will engage
fully in Europe, help enlarge the European Union and make it more effective, and insist that the
British people will have the final say on any proposal to join the Euro.

These ambitions are summarised in our ten goals for 2010. They will never be achieved by government
alone. We know it is the people who ultimately change the country. Our partnership with the
voluntary sector has steadily strengthened since 1997, as we learn from its diversity. We work with
the private sector, drawing on its vitality. Countries only prosper on the basis of partnership –
between government, employers and their employees, and the voluntary sector. An active, enabling
state, not a nanny state – doing things with people, not to them – is what Britain needs.

So, while the Conservatives will spend most of this

election telling you what their government cannot do, this manifesto sets out what our government
can do. We know the power and value of markets, but we also know their limits. Now is the time to
renew our civic and social institutions to deliver better education, health, safety, transport and a
better environment.

### Fighting for values, not just for election victory

The Conservatives always look back. In economic policy they promise to repeat the mistakes of the
1980s – unaffordable tax cuts and spending cuts followed by ballooning deficits, rising interest
rates and the old cycle of boom and bust.

In social policy their renewed commitment to cuts and privatisation, and to withdrawing the support
helping to heal social division, is just a throwback to the 1980s.

In foreign policy they risk not just isolation but exit from the EU. Jobs, trade and investment
depend on our membership

Reforming the welfare state... Labour is committed to building strong communities

of the European Union. The Conservative policy of opposing the enlargement of Europe in the Nice
Treaty and their pledge to renegotiate the terms of Britain’s EU membership is dangerous and ill
thought-out. Standing up for Britain means fighting for Britain’s interests in Europe, not leaving
Europe, which threatens our national interest.

All that we have achieved would be put at risk not just by the Conservatives but by those who would
help them in by the back door. A vote for the Nationalists can only help the Tories. On 8 June,
Britain will either wake up to a Labour government or a Conservative government.

So the choice we face today is starker than in 1997. The

Conservatives have swung further to the right. And in government, Labour’s agenda has become
increasingly bold and ambitious.

For many years the Conservatives claimed to offer

economic strength. Labour dominated social issues. Many people found their head telling them to vote
Tory, and their heart telling them to vote Labour.

Today, head and heart are coming together. New Labour is proving that it is only by using the
talents of all that we get a healthy economy; and that only by giving a stake to all are we a
healthy society.

We have made our choice: stability, not boom and bust; investment, not cuts; engagement, not
isolationism; the many, not the few. A lot done and a lot more to do with New Labour; or a lot for
you to lose under the Conservatives. I deeply believe that for Britain the best is still to come. So
I ask you to continue on this journey with us.

Together we can achieve so much more.

Prime Minister and Leader of the Labour Party

## Building a better Scotland

Labour has been good for Scotland. At the last general election, we said things would get better –
and they have. We have already achieved a lot. But we know we have much more to do and that there
are still challenges to meet before we create the Scotland we all want to see. The future Scotland
deserves.

Wage and the Working Families Tax Credit have brought help to the poorest in our communities. Higher
pensions and better benefits have begun to repay the debt we all owe to the older generation.

In 21st-century Scotland we will not tolerate child or pensioner poverty. Our goal is to end child
poverty in a generation and to ensure that by 2003 no single pensioner will have an income below
£100 a week and no pensioner couple below £154.

We are working together for safer communities. Drugrelated crime wrecks lives and damages
communities – but it cannot be tackled in isolation. The drugs menace is not just a Scottish problem
– it is also a British one. That is why Labour at Westminster has made the money available to fund a
£100 million package of measures on drugs education, treatment and rehabilitation. And why we will
ensure both parliaments work together to seize the assets of drug dealers.

Labour’s investment in public services must not be

jeopardised. But while Labour is committed to record investment in public services in Scotland, the
Tories’ £16 billion worth of cuts would axe the money available for Scotland’s schools and
hospitals. The Tories threaten everything Labour has worked to achieve – including the National
Minimum Wage, new employment rights, the New Deal and the free TV licences for over-75s.

Scotland has rejected the single issue politics of the SNP

that fails to recognise that it is poverty that scars Scotland, not the border with England. For the
first time in a generation, this election is not about the constitution. It is a straight choice –
Labour or Tory. We have just begun to build the new Scotland. We ask for a second term to complete
our unfinished business – together.

Helen Liddell, Secretary of State for Scotland and Henry McLeish, First Minister

We said that after nearly two decades of Tory government it would take at least two terms of Labour
government to build a better Britain and a better Scotland. Scotland knows better than most parts of
the United Kingdom the legacy the Labour government inherited. Scottish industries had been
destroyed and jobs lost for ever, but the deeper damage was to Scotland’s confidence and sense of
community.

The Labour government’s first task was to reverse that damage. Now, we have rising living standards.
More people in work. Fewer in poverty. Falling crime. Record investment in our public services. New
schools. New hospitals. And after 300 years we now have again a Scottish Parliament, returning power
to the people of Scotland within the United Kingdom. We are stronger together than we are apart. We
are proud to be both Scottish and British. Britain’s ability to remain united, while allowing its
peoples to be diverse and proud of it, is a source of strength.

This election is about how we create 21st century Scotland. And we need a partnership of Labour at
both Westminster and Holyrood to do it. Scotland needs a Labour government to maintain a stable
economy, better pensions, reform of the tax and benefit system, welfare to work, foreign and defence
policy, international development, and so on. Scotland gains when Britain prospers.

Our ambitions go far beyond what has been achieved. The people of Scotland are benefiting from the
economic stability created by Labour’s prudent management of the economy. Labour has focused on
keeping mortgage rates, inflation and unemployment low. The National Minimum

Labour’s vision for all families: higher wages, affordable mortgages, fairer taxes and better public
services

Our ten-year goals Fiscal rules consistently met, low inflation, and interest rates as low as
possible, as we deliver long-term economic stability.

Faster productivity growth than our main competitors as we achieve rising living standards for all.

* 
* 
Our next steps Basic skills for 750,000 people

Innovative financing schemes to encourage investment

*  and people with disabilities
Free off-peak bus travel for pensioners

* 
Raise the minimum wage to £4.20

*  new-born children
£1,000 tax cut – the Children’s Tax Credit – for parents of

Labour’s purpose is to help every family, not just a few, to raise their living standards and plan
ahead with security. We have a ten-year vision: higher living standards, affordable mortgages and
fairer taxes combined with much greater investment in vital public services.

Economic stability is the foundation. We know the price of boom and bust; it was paid in the 1980s
and 1990s by millions of hard-working families.

Our reforms since 1997 have helped cut interest rates to nearly half of what they averaged under the
Conservatives, saving mortgage payers on average £1,200 a year. By 2010, we want Britain to break
from decades of boom and bust, as we stick to clear rules for spending and borrowing. We will take
no risks with economic policy, make no compromise on fiscal responsibility.

Stability comes first. But stability is not enough. We need to produce more, better, and to higher
value, to raise our earning power and to meet our ten-year goal of faster productivity growth than
our main competitors.

We must make Britain the best place to do business in Europe – a dynamic economy, founded on skills
and knowledge, developing the talent of all our people, and contributing to sustainable development.
That means investment by private and public sectors in infrastructure and skills, and the right
competitive framework to support enterprise, small and large, manufacturing and services.

Every extra trained, employed worker contributes to a fairer society, as well as a more prosperous
one; with social failure, from school drop-outs to crime, comes economic failure. Fairness and
enterprise go together. It is up to government to do everything it can to help ensure that no
individual and no community is left behind.

### The fundamentals

### Better off with Labour

The foundation of opportunity and prosperity is economic stability. We know the risks of promises
that cannot be paid for: the Conservatives led Britain into two deep recessions, double-digit
inflation, record unemployment, 15 per cent interest rates and a doubling of the national debt.
Choice, not chance, has turned things round. Independence for the Bank of England and longterm
fiscal rules have given the UK the most stable and transparent economic framework in Europe. Britain
now has the best combination of low interest rates, low inflation and low unemployment since the
1960s. We are saving nearly £9 billion this year on debt and unemployment, so 84p of every extra
pound of public spending goes on national priorities, compared to 58p under the Conservatives.

So we will pursue a balanced approach on the

economy with stability the foundation, more investment not less, and as affordable, targeted tax
cuts on our priorities.

Our aim is to put more wealth in the hands of more people. That is why we will keep mortgage rates
as low as possible, ensure competition

inflation target is 2.5 per cent. We will continue to meet our fiscal rules: over the economic cycle
we will borrow only to invest and keep net debt at a stable and prudent level.

We are pledged for the next three years to raise health and education spending to record levels.
Labour will substantially boost net public investment.

Tax policy will be governed by the health of the public finances, the requirement for public
investment, and the needs of families, business and the environment.

We have rewarded work through the new 10p starting rate of tax and the Working Families Tax Credit.
The basic rate of tax has been cut to 22p. We will support families through the new Children’s Tax
Credit, set at up to £1,000 a year for new parents – the first recognition of the costs of children
in the tax system for 20 years. On average, UK households have benefited by £590 a year from
personal tax and benefit measures introduced since 1997. Living standards have risen by 10 per cent
over the Parliament for a single earner family on average earnings. To help those who work and save,
we will extend the 10p tax band. We will continue to tackle tax avoidance. We will not raise the
basic or top rates

Britain, bitterly opposed at every stage by the Conservatives, has been a success of our first term.
It fulfils, after 100 years, a founding ambition of the Labour Party. Around 120,000 Scots have been
helped, the majority of them women; jobs have not been lost. The Low Pay Commission, which we will
make permanent, has made clear recommendations for the future. New Labour will raise the minimum
wage to £4.10 this October, and we are committed to raising it, subject to economic conditions, to
£4.20 in October 2002.

### Labour rewards saving

Nine million people invested in Individual Savings Accounts (ISAs) in their first year. To encourage
more saving, we will maintain the £7,000 contribution limit for the next Parliament. We will also
help pensioners: the Pension Credit will match private saving with government funds, and pensioners
will no longer be penalised for their thrift. (See ‘A modern welfare state’). To boost the savings
habit, we will create a new Savings Gateway for people on lower incomes where their savings will be
matched by the government.

### The productivity challenge

### Staying better off

To raise living standards, our ambition is to raise our productivity faster than our competitors,
and ensure our goods and services are competitive in world markets. Labour has four priorities.

1 Investment in skills and innovation

#### Skills

We are passionate about giving every child the chance of a decent education. But we are equally
determined to offer learning opportunities to adults. Our ambition is for everyone to have the
opportunity to train, in a partnership of employers, employees and government, each giving time
and/or money to raise standards of skills in the UK.

Our first priority is to help the seven million

adults estimated to lack basic literacy and numeracy, with 750,000 people achieving basic skill
levels by 2004. We will:

* ensure that jobseekers get the benefit of a basic skills test, as well as incentives and obligations to take courses to tackle literacy and/or numeracy problems
* extend Individual Learning Accounts
* tackle the financial barriers that prevent adults studying in further education.
Basic skills are the start; updating skills is

something for all of us. Further education colleges have a critical role to play in the future. The
world-first University for Industry now operates under the brand of learndirectscotland,

More security and support for families with Labour: lower household bills, smaller mortgages and tax
and benefit reform to help children

keeps down household bills, support savings and share ownership, and create a new Child Trust Fund
for every child at birth to invest for when they reach adulthood.

There are no guarantees in an integrated world

economy. But we showed during the Asian economic crisis how to steer a course of stability in
turbulent times. We will continue to work at international level to minimise global economic
turbulence and to protect Britain if it occurs.

Tax and spending Fiscal responsibility and monetary stability are the foundation of our future
plans. New Labour’s

of income tax in the next Parliament. We renew our pledge not to extend VAT to food, children’s
clothes, books, newspapers and public transport fares.

### Labour rewards work

Labour believes that if you work hard you should be able to support a family. We will guarantee a
minimum family income of £225 for a 35-hour week; in the next Parliament an Employment Tax Credit
will reward the work of people on low incomes, whether or not they have children (see ‘A modern
welfare state’).

The first-ever National Minimum Wage for

offering 45,000 learning opportunities. The University of the Highlands and Islands is also now up
and running.

We need a step-change in workplace learning – particularly in small and medium-sized firms. We are
determined to develop a three-way partnership to bring this about. Current arrangements have secured
increased participation, but not enough. Unions and employers have a key role but we also need to
motivate individual employees. Where both sides of industry in a sector agree, we will help set up a
statutory framework for training. We will boost the efforts of trade unions to raise skill levels by
giving statutory backing to union learning representatives, and support the Scottish Trade Union
Learning Fund. Government has a wide-ranging role to play, and is seeking to develop a training tax
credit.

#### Innovation

Science and technology is the basis of new products and industries, both vital to productivity
growth. Since 1997 extra investment of £1.5 billion over three years has given science a fresh
start, and a new stream of university funding has helped create new links between scientific
breakthroughs and new products.

But we need to invest more to be at the cutting edge of science – in biotechnology and genome
research. We propose an R&D tax credit to promote business investment in research. We will work for
a European patent system by the end of this year to simplify the process of bringing ideas to
market. The £235 billion a year, and growing, global market for green technology gives real
opportunity to British industry to benefit from a shift to low-carbon technologies.

We will continue to encourage the best

scientists to work in the UK, as well as making the most of our science base in universities (see
‘World-class public services’).

2 Supporting British business Government cannot make a business successful. But government must
create the right framework to help business achieve healthy long-term growth.

Since 1997 corporation tax rates have been

cut to their lowest levels ever. Companies no longer face a perverse incentive to pay out dividends
rather than invest for the future. Reform of capital gains tax has given the entrepreneur or
investor new incentives for investment.

We will support vital investment through the tax system, with allowances for high tech as well as
small business investment. The Myners report has identified weaknesses in our venture capital
market, undermining long-term investment and economic dynamism. We will act on its recommendations,
including the abolition of the Minimum Funding Requirement and reforms to pension fund management,
and

review progress in two years.

When people have worked hard, they want their money to go as far as possible. Competition policy has
already helped cut cash-machine charges and new car prices. We will extend our fair and robust
competition regime by giving more independence to the competition authorities. We will toughen the
laws on rogue traders, unfair terms in contracts, and loan sharks.

In the labour market, minimum standards for

people at work offer dignity and self-esteem. Regulation should be introduced, where it is
necessary, in a light-touch way. We will cut back the red tape associated with regulation, examine
opportunities to put time limits on regulations, deregulate by secondary legislation, and offer help
to small firms.

Over 150,000 small businesses have been set up in the UK since 1997. We are committed to reform the
tax treatment of small business, including VAT, and to seek to reduce payroll burdens. Small
business will also benefit from extending the 10p tax band. We will reform the bankruptcy laws to
ensure second chances for people who go bankrupt through no fault of their

Labour supports fairness at work

own and provide funds for new start-ups.

We will modernise company law to promote

transparency, reduce burdens on small business and promote long-term economic success. We welcome
the recommendations of the Co-operative Commission, which also covered the significant mutual
sector, and will examine them with a view to strengthening these important parts of our economy.

3 Modernising our infrastructure for the information age

#### Digital nation

The infrastructure of the future includes fast, efficient and affordable communication –
telecommunications, the internet and broadcasting. That requires the best competitive environment,
effective regulation, and continued public and private investment in the technologies of the future.
A ‘digital divide’ would hurt business as well as

individuals: universal access is vital to effective markets. We will put all government services
online by 2005, to improve access to services and spur business on-line. We will work to ensure that
broadband, which allows fast internet access, is accessible across Scotland.

English is the language of the internet. We have the best TV in the world. The next challenge is to
open up the opportunities of learning and enjoyment offered by digital TV and the internet to every
household. We are committed to making the switchover from analogue to digital signals as soon as
conditions for access and cost have been met.

The governance of this fast-changing industry

is out of date. We will merge the five separate regulators into one, to create the world’s most
competitive and advanced regulatory system. We believe in the value and necessity of public service
broadcasting, and have committed to major funding increases for the BBC, and to supporting a
publicly-owned Channel 4. Ofcom will ensure a level playing field, benefiting consumers in terms of
choice, price and quality, in particular through promoting competition.

#### Transport

A strong economy needs good transport. Yet our inheritance was massive under-investment, with
British Rail broken into over 100 privatised pieces and bus services in decline. Labour’s priority
is to improve and expand railway and road travel.

Thanks to Labour’s successful management

of the economy at a UK level, Labour in the Scottish Parliament is now able to make record
investment in transport. In Scotland, transport spending will increase by 45 per cent over the next
three years. This investment and modernisation would be put at risk by a return to Conservative boom
and bust and by £16 billion worth of Tory cuts to our public services.

We are committed to delivering an efficient, safe transport system that meets the needs of all of
society across Scotland – without threatening our environment.

Already, the benefits of Labour investment and Labour partnership are beginning to show through.
There are more train and bus links, new resources for Scotland’s rural communities, more park-and-
ride schemes, and better transport information.

In Scotland, since Labour was elected in 1997, we have delivered £90 million through our Public
Transport Fund, and have already supported 52 projects throughout Scotland.

We are also committed to investing a further

£150 million in the Public Transport Fund by 2003-04. And we will deliver readily accessible and
accurate information for transport users through the Transport Direct initiative.

#### Rail

Across the UK, passenger numbers have

risen by 17 per cent since 1997 and freight has increased by 22 per cent. But recent crises have
proven the need for urgent investment and strong

regulation. With Labour, £60 billion will be spent on upgrading the rail network, with the majority
of rolling stock replaced. Around 500 new carriages are already in use, another 3,000 ordered. We
plan to expand capacity to boost passenger levels by 50 per cent and freight by more.

Our partnership with the Scottish Parliament offers a bigger, better, safer rail network. Here in
Scotland over £30 million allocated from the Scottish Executive’s Public Transport Fund has been
awarded to rail projects in Scotland. Our target of 18 million lorry-miles off the roads by 2002 is
well on target and we have awarded £19.5 million of freight facilities grants. Safer train
protection systems are now being installed and will be extended following Lord Cullen’s report into
rail safety.

The Strategic Rail Authority (SRA) has been

set up to provide strong, strategic direction. Train companies will get longer franchises in return
for higher investment and improved services. The SRA will lead the expansion of the network, using
public-private partnerships (PPPs). Railtrack is being reformed to focus on the operation of
existing track and signalling. The Rail Regulator, with strengthened powers, will ensure the
delivery of higher standards, increased safety and increased investment by the company.

#### Roads

Our roads need investment to relieve congestion, tackle disrepair and improve safety. Labour in the
Scottish Executive is now able to tackle the years of Conservative under-investment in our roads to
provide a modern strategic network for Scotland’s drivers and businesses by increasing annual
investment from £180 million to £250 million by 2003-04.

Buses are vital to local journeys. Our

investment in bus travel through the Scottish Parliament has led to the first rise in bus travel in
13 years. Bus partnerships between local authorities and private bus companies will improve
passenger numbers and service quality.

Labour is also committed to promoting simple, flexible ticketing systems and clear, reliable,
accessible passenger information. We have introduced free travel on bus, rail and ferry services for
the visually impaired. And in Scotland all pensioners and people with disabilities will benefit from
free off-peak bus travel from October 2002.

Road tax is being cut on smaller, cleaner cars and duty reduced on greener fuels. Tax incentives are
creating a cleaner lorry fleet while the road haulage industry will benefit from steep reductions in
Vehicle Excise Duty to among the lowest in Europe. We will also ensure that hauliers from overseas
pay their fair share towards the cost of our roads. Smarter driving will be encouraged by new

Take the bus... free off-peak bus travel from October 2002 for pensioners and people with
disabilities

highway communications technology. We are also working with the motor industry to develop safer and
more fuel-efficient vehicles.

We will continue our efforts to double cycle use between 1996 and 2002 and to double it again by
2012. We will work to cut congestion caused by the ‘school run’ and have invested £5.2 million for
Safer Routes to School.

We have given local authorities the freedom to choose to use charges to reduce traffic – but we
insist they put the money into better transport services.

#### Rural services

Our Rural Transport Fund has

provided 85 new or enhanced rural services in Scotland since the scheme was launched in 1998 We will
invest £18 million in rural transport schemes for the next three years. The Highlands and Islands
will particularly benefit, with £6 million being allocated to local authorities in the area. There
will be increased resources for rural community transport to help fund projects such as community
minibuses, dial-a-bus services, local community transport co-ordinators and voluntary car schemes.

We are committed to maintaining good, affordable transport links to secure the social and economic
well-being of remote rural communities, particularly in the Highlands and Islands. We will continue
to sustain and develop lifeline transport links to remote and fragile communities. Support for
services to the

Islands in 2000-01 was at record levels, including £14 million for Highlands and Islands Airports
Ltd and £19.8 million for Caledonian MacBrayne. Investment in new ferries and airport facilities is
under way.

We are committed to securing the future of our lifeline ferry service network. Services to the
Highlands and Islands must be modern, reliable and safe, at affordable fares, but also compatible
with European competition law. Caledonian MacBrayne will remain in public ownership.

International links are also vital. Plans for aviation and airports over the next 30 years will be
produced next year. We remain committed to a new Scottish Air Traffic Control Centre at Prestwick.
Merchant ships are returning to the British flag. We will complete the high-speed Channel Tunnel
rail link.

These are all vital improvements to our

transport system which are only made possible by Labour’s successful management of the economy, and
which can be delivered only through partnership between a Labour-led Scottish Executive and a Labour
government at Westminster.

#### The Post Office and postal services

We are committed to high-quality, universal postal services and a dynamic Post Office able to thrive
in a world of technological change and increased competitive pressure. Labour is working with the

banks to offer a new universal banking service. This will allow all benefit and pension recipients
to receive their payments, at no charge, in full at the Post Office after the switch to Automated
Credit Transfer in 2003. We also intend the local post office to become an invaluable resource for
access to government information. There will be increased incentives for people to take over and
modernise post offices. Business customers, representing by far the majority of the Post Office’s
turnover, want a full range of express, parcels and logistics services. We have given the Post
Office greater commercial freedom in the public sector. It needs to be able to gain an advantage in
the new postal market and become a leading force in domestic and international postal services
through alliances and joint ventures. We want to help the Post Office keep up with the best in a
fast-changing market.

#### Energy

Labour is committed to a secure, diverse and sustainable supply of energy at competitive prices. We
are creating full competition in the gas and electricity markets. Coal and nuclear energy currently
play important roles in ensuring diversity in our sources of electricity generation.

We are putting an obligation on electricity companies to deliver ten per cent of the UK’s
electricity from renewable sources by 2010 (18 per cent in Scotland), with a doubling of combined
heat and power. We will consider setting further targets for renewables, with particular focus on
offshore wind, solar and bio-mass technologies, supported by a £100 million fund. It will back up
the Climate Change Levy which includes agreements to improve efficiency in energy-intensive sectors,
and the new Carbon Trust which will recycle £100 million to accelerate the takeup of cost-effective,
low-carbon technologies.

We will suppor t research into clean coal technology and investigate its commercial possibilities.
We will promote home energy efficiency, doubling the expenditure on energy efficiency and raising
building construction standards.

Fuel poverty blights lives: that is why Labour

in the Scottish Parliament has pledged to ensure that by 2006 all council and housing association
tenants, and all pensioners in both public and private housing, will have warm and dry homes by
installing central heating and insulation.

and Scottish Trade International which promote Scotland as a location of choice within Europe,
increasingly focus on higher-value research and development-intensive projects, and help Scottish
companies globalise their activities. Labour’s position on the single currency was set out by the
Chancellor in 1997 and reiterated by the Prime Minister in February 1999. We have made it clear
that, provided the economic conditions are met, membership of a successful Euro would bring benefits
to Britain in terms of jobs, investment and trade. So in principle we are in favour of joining a
successful single currency.

But in practice the five economic tests we have set out must be met before the government would
recommend entry to the single currency. An assessment of the tests will be carried out early in the
next Parliament. If the government and Parliament recommend entry, the British people will have the
final say in a referendum. So the choice is between a Conservative Party which will deny the people
of Britain the chance to join even if it is in our national interest to do so, and the Labour Party
which says that if it is in our national economic interest, the decision should be made by the
British people in a referendum.

### No one left behind

### Helping everyone become better off

Britain is better off than in 1997 but our ambition is to widen the winners’ circle so more people
share in the benefits of economic growth. In ‘A modern welfare state’, we set out the route to full
employment.

#### Fair and flexible work

We are proud of our commitment to combine a dynamic economy with fair standards in the workplace.
Labour has put right historic wrongs. Every employee now has the right to four weeks’ paid holiday;
trade unions have the right to recognition where a majority of the workforce want it; part-time
workers have proper rights. Our objective has been to promote fairness that is consistent with the
competitive position of British business; that will continue to be our position.

We have reformed the labour market to build

a durable and fair basis for constructive employee relations. As we learn from the reforms in the
light of experience, we will keep their effectiveness under review.

BNFL is an important employer and major

We want to strengthen partnership at work,

exporter. The government insists it maintains the highest health, safety and environmental
standards. We are examining the scope for turning the company into a public-private partnership.
4Europe and the wider world Labour will be engaged and influential, fighting for the British
national interest, as we set out in ‘Britain strong in the world’. We will support British Trade
International, Locate in Scotland

which can foster employee commitment and help at a time of industrial change. We have established
the Partnership Fund and want to expand it.

Information and consultation need to be appropriate to national traditions, with timely discussion
of problems. When large-scale redundancies are being considered, there is an especially strong case
for consultation. The

government is reviewing the effectiveness of the UK’s current arrangements for information and
consultation – works councils in larger firms operating across Europe – as well as consultation on
large-scale redundancies. We will implement the findings of our review in this area. We support
conciliation at the workplace, to avoid resorting to litigation. We will examine reforms that
promote efficiency and fairness. Women still suffer an 18 per cent pay gap

compared to men. We are committed to tackling the causes of this inequality. We will work with
employers and employees to develop effective proposals, building on good practice and the sound
business case in the private and public sector.

We will develop career services for all. We aim for a ten per cent cut in death and major injuries
at work by 2010, and will clarify responsibility, improve enforcement and toughen penalties for
offences. We are also committed to working with managers and employees to reduce the

Unemployment down... young people benefiting from Labour’s New Deal

problems of bullying and violence at the workplace. As a major employer, our ambition is to improve
the quality of work for our employees – helping recruitment and retention.

#### Prosperity for Scotland

Lasting prosperity for Scotland can only be delivered through partnership. Only a Labour government
at Westminster can be trusted to maintain the stable, macroeconomic framework needed for Scottish
business to thrive and prosper. And only a Labour-led Scottish Executive can bring about the
economic development that Scotland needs. Shared values, shared ambitions.

While macroeconomic policy is the

responsibility of the UK government, economic development – infrastructure, small business
development, education/industry links, learning and skills – are the core tasks of the Scottish
Parliament.

The Enterprise Agencies – Scottish Enterprise

and Highlands and Islands Enterprise – have been refocused on their customers and the challenges
ahead. Together they have over £500 million to help create a smart, successful Scotland. They have a
key role in helping businesses to grow, promoting business startups, strengthening links between
business and university, and improving the skills of the workforce.

Labour in the Scottish Parliament is also committed to establishing a Manufacturing Advice Service.
Inevitably, industries change – and where redundancies are announced, we will continue to use our
innovative and successful rapid response teams through Partnership Action for Continuing Employment
initiatives.

But the work of the Scottish Executive and

Scottish Enterprise to deliver sustained economic development in Scotland would be fatally
undermined by a return to Conservative policies of boom and bust. That is why we need Labour at
Westminster as well as at Holyrood. We are ambitious for Scotland’s urban areas: we want to make
them better places to live, and better places to set up a business. The Scottish Executive is
drawing up a Neighbourhood Renewal Statement for Scotland, closely tied to our Cities Review. This
will draw together all of the work which is going on in our approach to regeneration. Labour offers
over the next five years £1 billion of tax cuts to increase capital investment in urban areas, for
new businesses and for new housing.

#### Housing

Labour is also committed to using the Scottish Parliament to deliver high-quality social housing and
promote community ownership (by means of stock transfer) and by investing in Scotland’s housing
stock.

The £300 million New Housing Partnerships

initiative will unlock up to £3 billion of new investment in homes currently under council
ownership.

#### Homelessness

We have established a Homelessness Task Force which will report in November on how to deal with and
prevent homelessness.

The Rough Sleepers initiative is breaking the

‘no home, no job’ cycle, investing £40 million over five years. Our target is to remove the need for
anyone to sleep rough by 2003. We are improving support for young people who require additional
support to make the transition to post-school education, training or employment, backed by £22.6
million to take forward action in response to the Beattie report. In partnership with Labour in
Westminster, we are piloting Educational Maintenance Allowances to encourage more young people from
low-income families to stay in education and achieve qualifications.

#### Rural Scotland

The recent outbreak of foot and mouth disease has caused strain and distress in rural areas.
Labour’s priorities have been clear: to eradicate the disease as quickly and effectively as
possible, to compensate those directly affected, and to protect the wider economy. As the number of
new cases falls significantly, and the clean-up of infected areas gathers pace, we are committed to
supporting the most affected areas with a recovery plan, and we shall examine the opportunities
afforded by a move to more sustainable forms of land use.

We will promote alternatives such as organic farming, agri-environment schemes and forestry. We will
conduct a scientific review of how to prevent animal disease outbreaks from occurring in the future
and will introduce tough rules to back this up. But we must also learn some of the wider lessons and
we will take the opportunity to examine all the options for the future of our rural economy and land
use.

Labour is committed to improving urban Scotland

#### Agriculture and fishing

Since the Second World War, the economy of rural areas has undergone massive change. About two per
cent of the workforce are now employed in agriculture. The industry is particularly important
because of the links with food production, our landscape and our environment. Labour’s aim is to
promote economic renewal with a sustainable future for farming, strengthened communities and
sustainable land use. But that strategy can only be delivered through partnership. It needs a
Labour-led Scottish Executive to drive it through, and a Labour government at Westminster to deliver
the funding and the clout at European level to get the best deal for Scotland’s farming communities.

Short-term pressures need to be met. Since the early 1990s, sectors of farming have been hard hit by
BSE, the weakness of the Euro and falling world commodity prices. Labour has provided £1.35 billion
in short-term relief for farmers, including aid for diversification, farm business advice, better
marketing, small

slaughterhouses and restructuring of the industry. We have minimised many regulatory burdens and
improved the way that food safety, environmental and animal health regulations are implemented.

But British agriculture will only thrive in the

longer term through a further, radical reorientation of the Common Agricultural Policy (CAP), away
from distorting Europe-wide production subsidies towards more national responsibility for domestic
farming, environmental and rural development priorities. CAP reform is now more possible; Labour’s
engagement with the EU gives us the best chance of making it happen. And Scotland is stronger in
Europe as part of the UK.

We have begun the process of change with

our farming strategy and our seven-year, £3 billion rural development plans for England, Scotland,
Wales and Northern Ireland. Labour will expand this programme so farming can become more diverse and
responsive to consumers, and produce in a way that sustains and improves the environment.

We have set up an independent, open and consumer-focused Food Standards Agency to ensure that all
food meets the highest standards. We will argue for the extension of food labelling, to give
consumers more choice. Genetically modified (GM) foods and crops have caused concern despite
stringent safety checks. There should be high standards of safety – regulation must be strict to
protect the environment and promote public health and consumer choice – but we must use science to
establish the facts, the opportunities and the risks before taking final decisions in an open way.

Many coastal communities in rural Scotland are dependent on the fishing industry. Labour believes
the Scottish fishing industry has a

How Labour makes you better off:

* by saving money on your mortgage, through economic stability and low interest rates
* by targeted tax cuts for families and pensioners
* by improving living standards through action to tackle Britain’s productivity gap
* by investing in skills and training and a revitalised infrastructure
* by offering a minimum wage of £4.20 and an Employment
Tax Credit

tourists to savour the finest examples of our heritage and of modern Scotland. Our promotion of
Scotland as a quality destination for visitors from all over the UK and the world dovetails with our
determination to promote quality Scottish products worldwide and the cultivation of cultural and
economic links with people of Scots descent throughout the world.

We have already allocated £5 million to visitscotland to encourage tourism from the rest of the UK
and key markets around the world in the wake of the foot and mouth emergency. The immediate message
that Scotland is open for business will be followed up with a new long-term recovery plan.

#### Coalfield communities

Labour is committed to a £4.5 million package of help for Scotland’s ex-mining communities. This
will support local regeneration, including support for new businesses.

We will also honour our commitment to exminers suffering industrial diseases. We have set aside £4
billion to compensate those men, and the widows who nursed them, who suffered from lung disease and
vibration white finger after working in Britain’s mining industry. We will ensure that the
compensation due is paid quickly.

Our country led the first industrial revolution. Other countries got ahead in the second industrial
revolution. Now our ambition is to succeed in the third industrial revolution – enhancing knowledge,
speeding up communication and developing the talents of all the Scottish and the British people.

Scottish idyll at Loch Katrine... Labour energetically promotes the tourism industry and Scotland’s
first national parks will open in 2003

bright future and we are committed to its sustainable future. In the short term, Labour is committed
through the Scottish Executive to decommissioning around 20 per cent of the whitefish capacity so
that catching capacity is matched to fish stock. We have also committed to assisting restructuring
in the important fish processing sector and to building partnerships between fishermen and
scientists to develop sustainable fishing methods. But we will also work at a UK level to reform the
Common Fisheries Policy to preserve fish stocks for the future. In the short term, Labour is
providing more than £60 million in structural funds over the next three years to help the industry
while also tackling the problem of ‘quota-hoppers’.

#### Rural services

Rural people share the same concerns as the rest of Scotland. We are committed to improving public
services in rural areas. Following the Arbuthnott review of the distribution of health spending,
rural health boards in Scotland will receive proportionally more funding, recognising the higher
costs of delivering services in remote areas of Scotland. Scottish Homes’ investment in rural areas
will increase to £48 million, meaning 1,650 new and improved homes in rural Scotland.

Labour is determined to protect Britain’s

landscapes and wildlife. Planning, transport and energy policy all make a difference. Scotland’s
first national parks in Loch Lomond and the Trossachs, and the Cairngorms, will be a reality by
2003. We are also committed to introduce legislation in the Scottish Parliament to give greater
access to Scotland’s land.

Scotland’s woods and forests directly

suppor t more than 10,000 jobs in the

forestr y and wood-processing industries, and are one of the biggest recreational resources in
Scotland. Labour in the Scottish Executive is implementing a forestr y strategy that will not only
produce timber for the Scottish industr y but also enhance value and quality of the Scottish
landscape and involve local communities.

We will press ahead with a £1.8 billion

programme of investment in the water authorities to support improvements in sewerage treatment and
rural water supplies. We will move to a single water authority with a single board and management.
The dangers of coastal and inland flooding are now widely appreciated, and we are committed to
investment in preventative solutions, including more sensitive use of agricultural land. We have
increased the number of protected nature sites. We have also initiated important steps to improve
animal welfare in Britain and argued successfully for higher welfare standards for battery hens and
pigs across the EU.

#### Tourism

Tourism is a vital industry for Scotland which holds great potential for the future. Supporting
180,000 jobs in every part of the country, the industry forms part of Scotland’s economic
mainstream. Tourism generates £2.5 billion in revenue each year: five per cent of the Scottish gross
domestic product.

We support the energetic promotion of the Scottish tourism industry and will harness the UK’s
network of embassies and consulates to maximise its potential. At home, we are committed, in
partnership with the Executive, to the improvement of our tourist attractions, accommodation and
infrastructure, enabling

## World-class public services

Primary excellence... the vast improvements already made in primary schools are to be extended to
secondary education

Our ten-year goals Halving the proportion of 16 to 19-year-olds not in training, education or
employment, as we provide for 42,000 extra student places in Scotland by 2002.

A healthier nation with fast treatment, free at the point of use, as we cut maximum waiting times
for treatment.

The whole country depends on high-quality public services. We have a ten-year vision for Britain’s
public services: record improvement to match record investment, so they deliver high standards to
all the people, all the time, wherever they live. Since 1997, there has been investment with reform.
Thanks to committed public servants, we have shown rapid progress is possible and begun to break the
fatalism that says public services are always second class. Now is the time to move forward.
Economic stability makes possible more investment.

*  pupils and four for every primary class
Our next steps A computer for every five secondary

* 
1,000 extra teachers for Scotland’s schools

*  maximum waiting time of no more than nine months by 2003
Cut in-patient waiting times with a

*  programme in Scotland’s history
The biggest-ever hospital building

*  have a sports co-ordinator
All Scottish secondary schools to

Health and education are the responsibility of the Scottish Parliament, but the record funding made
available through the Westminster Parliament makes the modernisation of Scotland’s public services
possible.

A Conservative government would also mean £16 billion worth of cuts in public spending – which would
mean less money available for Scotland’s public services. The reforms outlined in this manifesto
would therefore be jeopardised.

Labour will put education and healthcare first. We promise reform to match. We will increase the
quality and diversity of public services and meet the challenge of rising expectations.

In education, we offer rising standards in primary and secondary schools. By 2010 we want a majority
of Britain’s young people entering higher education. In health, we will recruit extra nurses and
doctors. Our ten-year goal is a healthier nation, with fast treatment, meeting rising expectations
and demographic and technological challenges. The job of government is also to ensure that the
enjoyment, excitement and inspiration of arts and sport come alive for everyone.

Services need to be highly responsive to the demands of users. A ‘spirit of enterprise’ should apply
as much to public service as to business.

But we can only achieve our objectives with Labour at Westminster and Labour at Holyrood.

Labour’s ambition for public services is simple: we want excellent services for all. Our challenge
is to reverse decades of denigration and underinvestment. We will work with frontline staff to
deliver a revival of our public services every bit as profound as the changes to the private sector
in the 1980s.

In our first term, national action was vital – to tackle crises of funding and quality. Government
must take national responsibility for investment and for setting a clear national framework. Now we
need to move on, empowering frontline staff. The citizen – the patient, the pupil, their needs and
aspirations – must be central.

Each service needs the right structure and

incentives at local level – decentralisation of power with strong incentives to high performance.
Frontline staff are advocates for citizens and ambassadors for their services. Motivated by an ethos
of service, they must be supported to carry through change.

### Education

#### Still Labour’s number one priority

Education remains Labour’s top priority. Excellence for the many, not just the few, is our driving
passion. Our goal is to develop education to harness the individual talents of every pupil.

Since 1997 rising standards have been achieved through major new investment and reform. The New Deal
for Schools is a five-year investment programme of £116 million in schools. We are supporting a
further £530 million of capital projects through Public-Private Partnerships. We are investing in
teacher numbers and rewards as we modernise the profession over the next three years and, through
the Excellence Fund, £65 million will be committed to ensuring that 5,000 classroom assistants will
be in our schools by April 2002.

We will also ensure that the Scottish education system recognises and gives a proper place to the
diversity of religious and cultural traditions that make up Scotland.

#### Investment

Money alone cannot guarantee a good education, but extra investment is indispensable to achieve our
ambitions. We pledge a further step-change in investment as we achieve a further step-change in
higher standards.

In 1997 Labour promised to increase the share of Britain’s national income devoted to education.
Over the Parliament we have increased it from 4.7 per cent to 5 per cent, and we are pledged to
raise this figure to 5.3 per cent by 2003-04. In Scotland, by 2003-04 education spending will for
the first time top £5 billion –

representing £1,000 for every man, woman and child in Scotland. And there has been a massive 64 per
cent increase in spending on books and equipment. Spending on schools in Scotland will rise by over
40 per cent in real terms between now and 2003-04.

#### Under-fives

All parents must receive the support they need to give their children a good start in life, so that
every child starts school ready to learn. There is now a free nursery place for every four-yearold
and the Sure Start programme provides special help for the most disadvantaged communities. We will
continue to expand under-five provision. We will improve nursery education and childcare for working
parents (see ‘A modern welfare state’). We will give every three-year-old, whose parents want one, a
free nursery place by September 2002.

Nursery places for all three-year-olds in Scotland

#### Primary schools

Primary school teachers have achieved excellent results. We have already reduced class sizes for
infants in primary one and two, and we are on course to meet our pledge to abolish infant class
sizes of over 30 by August 2001.

Our concerted drive for higher standards backed by a substantial increase in funding is reaping
rewards. Last year saw the best-ever primary results – with the proportion of 11-yearolds gaining
the expected standard in reading, writing and mathematics all rising.

But Labour will not be satisfied until every child leaves primary school with the basic skills they
need. We will ensure that all children are on track to achieve high standards, or receive extra
expert help to catch up.

Primary education without the basics is a betrayal. We will increase the proportion of children
attaining appropriate levels in reading, writing and maths by the end of primary two and primary
seven.

#### Secondary schools

Transforming secondary education is a critical challenge of the next decade. The principles of

inclusion and equality of opportunity remain central to our commitment to liberate the potential of
every child. But on their own they are not enough to guarantee high standards. Standards have risen
in the past four years, with more good schools and the others improving. But the challenge ahead to
make secondary schools meet the needs of all remains immense. We have begun to transform secondary
education, building on the improvements we have seen in primary schools, and creating a secondary
school system which ensures that every child has the opportunity to benefit and gain qualifications.
We have committed ourselves to ensuring that every young person will leave school with the maximum
level of skills and qualifications possible, and that every 19-yearold is engaged in education,
training or work.

We are also committed to improving the performance of the 20 per cent poorestperforming pupils at
standard grade level.

#### Standards

Through the Scottish Parliament’s Standards in Scotland’s Schools Act, we have extended the role of
HMI to inspect education authorities as well as schools. These inspections are vital to ensure that
every child receives education of a high standard. HMI has the responsibility to inspect all 32
local authorities during the next five years.

The Act enabled us to set national priorities in education to ensure continuous improvement in
school education. All authorities have to develop improvement objectives in relation to national
priorities by December 2001 as part of the improvement framework. Schools will then publish
development plans by June 2002. It is critical to our children's future success that tough and
decisive action is taken to address identified weaknesses as soon as possible.

Every child in Scotland now has the legal right to education geared towards developing their
potential.

We are promoting family-centred learning,

which involves parents and focuses on the needs of the child, investing £15 million in schemes such
as home-link teachers and other staff, family literacy schemes and parent support groups to
encourage parents to become involved in their children's learning.

#### Teachers

Nothing in education is more important than having good teachers. We have made teaching a far more
attractive career, through our agreement for a 21st century teaching profession. We have agreed with
teachers improvements in pay over the next three years in return for modernised working practices.
Teachers will be able to concentrate on teaching. They will be freed from bureaucratic burdens. Good
teachers should not have to

University summer schools, master classes, mentoring support and extra bursaries all have a role to
play in encouraging potential students from disadvantaged areas through a new access package backed
up by £18 million of funding. We will not introduce ‘top-up’ fees and have legislated to prevent
them. Since 1997 we have increased university funding, and through the Scottish Parliament have put
in place a new system of student financial support with the Education (Graduate Endowment and
Student Support) Scotland Act.

We will strengthen research and teaching excellence, ensuring increased diversity with high
standards throughout the university sector. It is vital that our world-leading universities are able
to compete with the best internationally. We will also support world-class research and the
development of Public-Private Partnerships. We are determined to ensure that our universities have
the freedom and incentives to meet our ambitions for them.

Labour is committed to improving standards in Scottish schools

leave the classroom to improve their prospects. We want teaching to be a career of choice for

the best graduates and attractive to people making career changes. We will continue to invest more
in the profession and improve conditions for teachers. High status, better salaries and proper
professional support are all essential. We have introduced a range of initiatives designed both to
benefit children and to improve teachers’ conditions:

* Reduction in class sizes.
* Introduction of classroom assistants.
* Improvements in information computer technology (ICT) facilities, systems and training.
* Repair of school buildings.
* Improved continuous professional development.
* Funding for an extra 1,000 teachers in Scotland’s schools.
#### Schools fit to teach and learn in

We are committed to building or substantially renovating 100 schools by 2003. We will follow up on
increased investment in the improvement of school buildings through the development by 2002 of a
comprehensive buildings strategy in partnership with local authorities.

#### Computers in schools

A major programme is under way to train and support teachers in the use of computers. Already, more
than 8,000 teachers have been given help to buy their own personal computers, and more than 50 per
cent of primary teachers and around 65 per cent of secondary teachers have a computer at home. £23
million has been allocated through the New Opportunities Fund to train teachers and librarians in
the use of ICT in their subject area.

We have provided the investment needed to

extend access to the internet, with all secondary schools now connected and a huge expansion in
primary school connections, up from 40 per cent to 70 per cent for primary schools since Labour came
to power.

We are committed to increasing the number

of modern computers to one for every five secondary pupils and four in every primary class by 2002,
and to enhancing their support for learning by providing broadband connections for schools.

Labour will invest £80 million from the Excellence Fund over the next three financial years
(1999-2002) to support the purchase of the necessary hardware and software, and we are on target to
deliver by 2002.

Already 66 per cent of secondary and 29 per cent of primary pupils have an email address, and by
2003 there will be access to an email address for every pupil.

#### Higher education – a world leader

Higher education brings on average 20 per cent higher earnings and a 50 per cent lower chance of
unemployment. Already in Scotland we have opened higher education to a majority of young people
before they are 30, combined with increased investment to maintain academic standards. But we need
to do more to create opportunities for young people from all backgrounds. Access and excellence are
the twin ambitions of our higher education policy. In 1997 we inherited a system where the

number of qualified people able to go to university and college was capped. Today, the numbers are
rising and universities have the funds to expand. We will maintain university entry standards,

while intensifying efforts to extend to able young people from all backgrounds the huge advantages
which a university education confers.

Getting a head start… every child needs good IT skills

### Health

#### Quality services from a growing NHS

For over 50 years the NHS has been part and parcel of what it means to be British. If you fall ill,
the NHS is there. Its foundations – tax-based funding and care according to need – remain as valid
today as ever.

NHS Scotland employs over 130,000 dedicated people. But it needs far-reaching reform to redesign its
services around the needs of patients. Our National Health, Labour’s Scottish health plan, sets out
our strategy for ensuring fast, convenient, high-quality care in all parts of the country.

In 1997 the NHS in Scotland was divided and fragmented, and staff were demoralised. Today, there are
more nurses and doctors working for patients, and waiting lists and waiting times are falling. The
biggest-ever hospital building programme is under way. NHS 24, the 24-hour helpline, is being
piloted. Eye tests for people over 60 are now free.

But there is a lot more to do. We are committed to investment and reform.

across Scotland to address the healthcare needs of deprived and rural areas.

With Labour, the health budget in Scotland

We remain committed to our Bill – blocked

will grow from £4.9 billion in 1999-2000 to £6.7 billion in 2003-04: the biggest sustained increase
in its history. Provided that as a country we continue to maintain the economic stability we have
achieved so far, the Labour government will, if re-elected, be able to sustain significant funding
increases for health in Scotland throughout the next Parliament. Labour in the Scottish Parliament
will continue to put that funding to work to meet the needs and priorities of the Scottish people.

#### The fundamentals of care

That money will help us get the basics right. We are recruiting and training more staff, and are
investing in buildings, equipment and technology. Over the next five years, 10,000 nurses and
midwives will qualify in Scotland – 1,500 more than previously planned – and we expect the number of
consultants to rise by more than 600 over the same period. Mixed-sex wards are being abolished and
mental health wards will be modernised. We have increased the number of one-stop clinics from 80 to
200, and we are building eight major new hospital developments by 2003, backed by a total capital
investment of £480 million.

Twelve major redevelopments of Accident and Emergency units are now under way. In addition, health
centres and GP surgeries across Scotland are being refurbished and redeveloped.

We are investing an extra £7 billion of capital

investment into the health service, with an extended role for a reformed Private Finance Initiative
(PFI) which offers value for money, innovation, rising standards of service and a better deal for
staff.

We have said that PFI should not be delivered at the expense of the pay and conditions of the staff
employed in these schemes. We will seek ways in which, within the framework of PFI management,
support staff could remain part of the NHS team.

#### Improving health

Our job is not just to improve the nation’s health service. It is to improve the nation’s health.
Deaths from cancer and heart disease are too high. There has been a growing health gap between rich
and poor. Beyond our commitment to combating child poverty and poor housing, we will tackle the
long-standing causes of ill health and inequality by:

* investing more than £100 million over four years in a National Health Improvement Fund
* developing a strategy to tackle alcohol misuse
* providing fresh fruit to nursery children and promoting healthy eating in schools by the Tories – to ban tobacco advertising and sponsorship.
#### Reforming the NHS

The NHS has to earn the confidence of each new generation. It has to change the way it works if it
is to meet today’s challenges and provide fast and modern services. We will improve access to
primary care so that patients can get access to a member of the primary care team within 48 hours.
By 2003, we will cut maximum waiting times for inpatient treatment from 12 months to nine months.
Major conditions like cancer, heart disease and poor mental health will have priority, with patients
treated according to clinical urgency.

We will give patients more choice. We have

abolished the internal market. Now we are redesigning the system around the needs of patients.

By 2002 we will launch a new generation of walk in/walk out hospitals where patients will be offered
same-day treatment by specialist staff. We will build on out-of-hours ser vices and launch NHS 24 to
give round-the-clock access to health advice and ser vices.

Through the introduction of an electronic appointments booking system by 2003, we will ensure that
people know the time of their hospital appointment before leaving their local surger y.

Labour’s Action Plan for Dental Services in Scotland aims to radically improve Scotland's poor
dental health. We will provide free toothbrushes and toothpaste for all babies under 12 months and
for oneto three-year-olds in deprived parts of Scotland. Our aim is that by 2010, 60 per cent of
five-year-olds should have no dental disease.

By modernising maternity and children’s services in hospitals and communities, we will ensure that
children and families receive the highest-quality support and care. We will further tackle the
‘lottery of care’ through the setting of national standards and spreading best practice.

We will ban by law human cloning, and

implement a moratorium on the use of genetic tests for insurance, following a recommendation of the
Human Genetics Commission. We will continue to examine demographic and technological challenges as
they affect the NHS. Patients will have more say. By 2003 we will

pilot and evaluate personal smartcards containing key medical data. Patients and local communities
will be involved in the design and delivery of healthcare and have more information on the quality
of local services.

#### Rebuilding a National Health Service

To achieve this vision, we are setting clear national priorities and are developing a clear

* our new fairer, better way of sharing NHS funds and transparent process for holding the NHS to account for their delivery. We are streamlining bureaucracy and increasing integration and accountability in decision-making by establishing for developing a comprehensive local health plan to address the health improvement, health inequalities and healthcare needs of the local population. We will continue to develop the role of Local Healthcare Co-operatives (LHCCs),
15 unified NHS Boards, which will be responsible

Above: More flexible working hours for NHS staff Left: A bright future for frontline staff and
patients

working with hospital services as vehicles for the planning and delivery of healthcare at local
level.

#### NHS staff

None of these aims can be achieved without major investment in the skill, working conditions and
working practices of all NHS staff. We will continue to work in partnership with staff to ensure
they are valued and rewarded, and to improve working conditions through flexible working, enhanced
training and development, and a safer working environment. This is a vision worth fighting for. It
will take time to achieve but it will deliver an NHS to be proud of. While the Conservatives would
cut the funding available to the NHS in Scotland in order to pay for reckless tax cuts, Labour is
committed to making the National Health Service once again the envy of the world.

### Culture and sport

The arts and sports are key to our quality of life. They matter for their own sake. And today
millions make their living out of their creativity. Government can and must make sure the
opportunities are there. But for the last 20 years, under-investment, misplaced priorities, and lack
of organisation have held back access and excellence.

Since 1997, this has begun to change. We have started to invest and to reform the system. Investment
in theatre develops the film and television stars of tomorrow; investment in

sport will produce the Olympic and Paralympic medal winners of 2012. Culture and sport should not be
seen as peripheral issues; they are vital to our identity and enjoyment as a country. We are pledged
to the investment necessary to expand access and excellence together in culture and sport, building
on excellence in film and broadcasting.

#### Sport

The performance of British athletes at the Sydney Olympics and Paralympics thrilled everyone.

Labour is committed to a radical extension of sporting opportunities and facilities. Sport is a good
health policy, a good crime reduction policy, a good way of building communities. We have increased
funding of Sportsscotland to a record level. We are putting sport back on the agenda at school. To
help achieve this we will put sports co-ordinators into every secondary school, with 294 already in
post, giving children the chance to receive qualified coaching and play competitive sport. We are
promoting the involvement of young children in sports by widening the Active Primary Schools pilot.
We will maintain the elite funding we put in place for individual athletics.

We are developing a strategy for attracting

in six area institutes which will be local centres of excellence. To ensure that young footballers
in Scotland maximise their potential, we are setting up a network of football academies working in
partnership with clubs, football authorities, local government, business and the wider community. We
are committed to sell the Tote to a Racing

Around 30 million people enjoy arts activities each year. These activities are critical to national
life, with huge importance for the creative and tourism industries. Yet the Conservatives introduced
charges for admission to our national museums and galleries, cut the arts budget and reduced support
for arts education.

Trust to allow it to compete commercially, with all long-term profits invested in the sport. We are
committed to finding ways to support amateur sports clubs to which 5.6 million people belong.

The House of Commons elected in 1997

made clear its wish to ban fox-hunting. The House of Lords took a different view and reform has been
blocked. Such issues are rightly a matter for a free vote and we will give the new House of Commons
an early opportunity to express its view. We will then enable Parliament to reach a conclusion on
this issue. If the issue continues to be blocked we will look at how the disagreement can be
resolved. We have no intention whatsoever of placing restrictions on the sports of angling and
shooting. The Scottish Parliament is currently considering a private members’ bill on hunting – the
Protection of Wild Mammals (Scotland) Bill.

Since 1997, that has changed. National

museums are now free for children and pensioners. Labour is committed to reforming the VAT system to
ensure they will be made free for everyone from December. In Scotland, we have provided additional
funding to back up our commitment to free access to publicly owned museums. Labour values our
industrial heritage and is investing in our industrial museums. A £1.26 million funding package has
been made available to three of our main industrial museums – the Scottish Fisheries Museum in
Anstruther, the Scottish Maritime Museum in Irvine and the Scottish Mining Museum in Newtongrange –
along with their continuing support from local authorities.

We demonstrated our commitment to the arts

in Scotland when we announced a £31 million package of resources. This includes £16 million of new
money to be spent up to 2002 – over £7.7 million of this is for the performing arts.

Sporting chance… Labour is committed to a sports entitlement for all children

major sporting and cultural events to Scotland. We will make every effort to bring the Ryder Cup to
Scotland in 2009 and are joint funding a feasibility study with Sportsscotland and the Scottish
Football Association on bringing Euro 2008 here. We have established a Scottish Institute of Sport
in Stirling, and are investing

#### Arts

We are ensuring there are more jobs, more wealth, and better health and housing, but we also want
people to have more fun, more excitement and more beauty in their lives. We must ensure we provide
opportunities for all these things.

Education is the bedrock of an artistic

society. Through our programme of designating schools with specialisms as centres of excellence, we
are widening the availability of music, dance and drama training for more young people. We are
working with all arts organisations to ensure they work to increase

access and offer arts education work, with national companies visiting schools and involving the
community.

We are determined to tackle digital exclusion. We have supported the Public Libraries Challenge
Fund, administered by the Scottish Librar y and Information Council, to establish learning centres
in libraries, putting internet access in the heart of communities. From 2002 Culture Online will
offer children and adults alike tailored access to national collections complementing the resources
available through the Scottish Cultural Resources Access Network.

Public money devoted to the arts should be spent on excellent art, not bureaucracy. We will ensure
that our arts funding system backs excellence, giving artists and arts organisations the long-term
stability they need to become world leaders.

At the very heart of Labour’s arts policy in Scotland is the National Cultural Strategy, a framework
for cultural development over the next four years. The strategy aims to ensure that public support
for cultural activities is targeted to achieve and sustain quality; that creativity, innovation and
excellence are promoted; and that culture contributes to our wider priorities of social justice,
economic development, regeneration and equality.

How Labour helps young people:

* by raising standards and investing more in education, from nursery schools to adult learning
* by giving the majority of young adults the opportunity to study in higher education
* by tackling youth unemployment, with the New Deal made permanent
* by opportunities to train as you work, through modern apprenticeships and the right to time off to study
* by expanding sports facilities in schools and in the community
* by cleaning up the environment, with support for green technologies and global action to tackle climate change b
W

Art for all... the National Cultural Strategy promotes creativity, innovation and excellence

Creative industries The creative industries are a vital engine of our economy, providing jobs for
over one million people across the UK. The National Endowment for Science, Technology and the Arts
(NESTA) has been set up to back our most talented young people. Creative entrepreneurs need seed
funding, cheap accommodation near other similar companies, and advice on how to develop their talent
into a business. Our Creative Industries Strategy aims to meet those needs – including start-up
advice, services and funding for new businesses.

Lottery Under the Conservatives, many communities missed out on their fair share of Lottery money.
The number of Lottery grants to community groups has trebled with Labour. Yet there are still
communities which have received a disproportionately small share of Lottery funding. We will ensure
a fairer deal for these communities.

Labour has reshaped the Lottery to match people’s priorities. Money goes for revenue as well as
capital. Lottery funding now ensures new ideas and ways of working that come from communities can be
made real. The New Opportunities Fund (NOF) directs help to education, sport, health and the
environment – after-school clubs, vital cancer-beating equipment, local green spaces.

Lottery funding also supports our

disadvantaged communities largely through the Scottish Arts Council’s Social Inclusion

Partnerships (SIPs) and through the Scottish Arts Council’s new Arts and Social Inclusion National
Lottery Scheme, with awards given in recognition of the role that the arts can play in improving the
quality of life in areas already designated as SIPs. Through the Lottery Sport Fund, Sportsscotland
is investing £1.5 million over three years in the 48 SIPs to increase people’s participation in
sport.

We backed going ahead with the Dome as an opportunity to showcase British talent and give people a
good day out in millennium year. Despite being enjoyed by more than six million visitors, the Dome
did not fulfil expectations and we have learned the lessons, good and bad, from it. But the
development of the Dome has been the catalyst for regenerating the local communities involved.

We need a revolution in the status, standards and focus of our public services. Labour is prepared
to make the investment in staff and services – and we are ready to match investment with reform. But
while it is the job of Labour in the Scottish Executive to deliver reform, it can only get the job
done if it has the necessary investment. And that can only be secured by a Labour government at
Westminster.

Our ten-year goals Sustain a higher percentage of people in work than ever before as we seek full
employment in Scotland.

As society changes, so the welfare state must change. We have a ten-year vision for an active
welfare state: to promote work for those who can, security for those who cannot, and rewards for
those who save, volunteer, learn or train.

Employment for all is Labour’s goal, with help for young people from the New Deal

Child poverty halved and pensioner poverty tackled as we extend opportunity for all children and
security for all pensioners.

*  everyone coming on to benefits
Our next steps An ‘Employment First’ interview for

*  tax and benefit reform
Expanded support for children through

* 
*  leave and introduce paid paternity leave
Extend and increase paid maternity

New Pension Credit for lowerand middle-income pensioners and the Winter Fuel Payment retained

* 
£90 million Better Neighbourhood Fund

Since 1997, we have cut the costs of unemployment; saving £4 billion last year alone. As a result,
we have been able to spend more on tackling poverty and raising family support within a social
security budget that has grown, in Labour’s first term, at the lowest rate since 1948.

Employment is not just the foundation of affordable welfare; it is the best anti-poverty, anti-crime
and pro-family policy yet invented. After years of mass unemployment, full employment is now on the
agenda. Our ten-year goal is to sustain a higher percentage of people in work than ever before. With
more than one million more people in work than in 1997, and a million vacancies in the economy, we
need to extend the New Deal, not abolish it as the Conservatives propose.

We judge our society by how we treat our young and the old. In this Parliament, over one million
children have been taken out of poverty; our ten-year goal is to halve child poverty, ending it in a
generation. We will transform support for children to achieve it.

For those in retirement, security depends on partnership between state and funded provision. We
promise that within two years no pensioner need live on less than £100 per week, increased annually
in line with earnings growth. On top of that, we will reward pensioners who save.

Government cannot achieve social inclusion for people, but it can help them achieve it for
themselves, by transferring power and opportunity to local communities. That is our promise.

Full employment Labour’s goal

‘

With Labour, the welfare state helps people into work, makes work pay, supports them at work, and
demands responsibilities in return. Our ambition is full employment for Scotland – good for the
economy and good for social justice. The New Deal has already helped 32,600 young Scots into work.
Long-term unemployment is down by over 60 per cent. The claimant count is the lowest for 25 years.

But too many people are still denied the opportunity to work. Across Britain, a million people
remain unemployed; 100,000 lone parents have come off income support since 1997, but our target is
to raise the current 50 per cent employment rate to 70 per cent. Many people with disabilities who
are out of work say they would like to work. Older people, with a wealth of talent and experience,
are a resource we cannot afford to waste.

Labour has ended the days of low-grade job schemes. The New Deal leads to real jobs, a lower
benefits bill and higher tax receipts. We now need to build on its success, extending it to more
people across the country.

We also need to ensure that the barriers to

work are pulled down by delivering on our obligation to tackle discrimination so that all people can
make the most of their talents.

Making the New Deal a permanent deal The benefits system we inherited was fragmented, complex and
contradictory. We are putting in place clear, consistent rules: those who can work should be in work
or in contact with the labour market. As unemployment falls, we need further reform to help people
into work.

Labour will introduce a new principle of

‘Employment First’, with rights and responsibilities balanced at every stage. The contract is
simple: quality opportunities for real responsibility. ‘Something for something’ is the foundation.

Labour is pledged to create a new Working Age

Agency, Job Centre Plus, merging the old Employment Service and Benefits Agency, and focusing on the
key skill needs of areas of the country and sectors of the economy. Whoever you are, wherever you
live, you will get the opportunities suited to your needs – from one office, one adviser, one
system.

The New Deals for young people and older workers will focus on numeracy, literacy, IT skills and
presentation. Where people are homeless, or suffer drug or mental health problems, we will offer
specialist support. More than 140,000 adults aged over 25 have been unemployed for over 18 months.
Labour will deliver more intensive and flexible help, with increased responsibilities for claimants.

We will offer greater flexibility to personal advisers and encourage greater engagement of
employers, with IT training for all New Dealers. Employment Zones include funding for results and
public-private partnership. On the basis of the evidence we will consider their extension to new
areas and new claimant groups. We will build on the Action Teams for Jobs model, which is targeting
40 of the most severely disadvantaged areas, tackle the employment gap for ethnic minorities, and
devote £45 million

where now all four-year-olds and 68 per cent of three-year-olds have a nursery place. All threeyear-
olds will have a nursery place by 2002. Our vision is ambitious: safe and reliable childcare
nationwide, allowing all parents to combine home and work, confident in the childcare they have
chosen. We will help with the costs of childcare, through the Childcare Tax Credit – and will look
to extend it to people looking after children with disabilities and shift workers. We will provide
out-of-school care places for

Skills for life… a young catering student works towards a vocational qualification

to provide stepping stones into employment for the hardest to employ.

All lone parents will be invited to employment

interviews to help them seek employment opportunities. We will build on the lessons of the Choices
programme, which offers help with learning, work and childcare. Partners of unemployed people with
children, like those without children, will also be asked to interviews to discuss their options.

Parents need good quality and affordable childcare if they are to have real choice about work. For
the first time, Scotland has a National Childcare Strategy – covering cost, provision and quality.
Because of the tough public spending decisions we took in our first two years, we are now able to
invest in proper childcare. Implementation in Scotland is ahead of target,

100,000 children by 2003. We will support the commitment of community and voluntary groups to build
up a diverse range of childcare (see ‘World-class public services’).

Many older workers now want to continue in work fullor part-time. Yet one in three people between 50
and state pension age is not working. To help them we will build on the New Deal 50+. To help bridge
the divide between work and retirement, we will examine ways to ensure that people will be able to
draw on their occupational pension and continue to work parttime for the same employer, phasing
their retirement without compromising their pension.

We are exploring how to facilitate the transition from work to positive voluntary activity.

Our ambition of full employment is part of

a deal: if you put in a fair day’s work, the

government will ensure you are able to support yourself and your family. The minimum wage is the
foundation. But we offer a guarantee of takehome pay too. For people with families, we promise to
match your effort with support through the tax system.

For those on low incomes without children

we will create an Employment Tax Credit to boost their earnings, tackle poverty and improve work
incentives.

People with disabilities Our ambition is to enable people with disabilities to play a full part in
the community. The Disability Rights Commission now ensures full civil rights for people with
disabilities; we have legislated so that those with special needs or disabilities have equal access
to education. We are now committed to extending basic rights and opportunities as indicated in our
response to the Disability Rights Taskforce.

The New Deal for Disabled People pioneers new ways of helping people with disabilities into jobs.
The opportunity to work is vital to civil rights; we are testing how best to offer help with
rehabilitation and job retention. We will invest an additional £40 million to help people with
disabilities into work, to ensure that it is worthwhile to try out a job and stay in work if they
have high care costs, and to improve assessment for equipment and services as people move in and out
of work.

We will not use disability benefits to disguise

unemployment – the Tory approach in the 1980s. The number of people getting Incapacity Benefit (IB)
has fallen by 11 per cent since 1997 but too many people are written off when they could, with
support, work.

We will help break down the barriers that keep people with disabilities out of work. We will
continue to modernise the operation of the benefits system so that if people can work, we help them
to do so and stop them slipping from lack of work to inability to work. Around 18 million working
days are lost each year due to work-related illness – at a cost of over £17 billion. Many people on
Industrial Injuries Benefit are helped into work by combining support with effective services, and
we want to help as many of the rest as possible. But if people cannot work, society has a duty to
provide security for them.

For people unable to take up paid work, we are committed to offer security. We have increased
support for children with parents on income support by 80 per cent in real terms since 1997. There
is now a minimum income guarantee of £142 per week for people with disabilities under 60. Incapacity
Benefit has been extended to people disabled from a young age. Disability Living Allowance has been
extended to threeand four-year-olds. We will continue to keep the system under review.

Housing benefit Although the number of people claiming housing benefit is currently falling, it
remains the main way in which accommodation is made affordable. Our first priority has been to work
with local authorities to drive up administrative standards and tackle fraud and error. But we must
continue to reform it. So we will simplify housing benefit and its administration, distinguishing
between people of working age and pensioners, reforming provision for private tenants and examining
the case for longer awards. We will spread best practice in administration. In the longer term, we
will ensure that for people of working age, housing benefit as well as the Working Families Tax
Credit strengthens work incentives.

Children and families

Strong and stable family life offers the best possible start for children. And marriage provides a
strong foundation for stable relationships. The government supports marriage. But it has to do more
than that. It must support families, above all, families with children. Our vision of the tax and
benefits system for families and children is to provide help for all families; to give most help at
the time families need it most; and to give more help to those families most in need.

The Conservatives stacked the tax system against families; over four million children lived in
poverty; one in five children were growing up in households without work; the average income of
households with children had fallen to 30 per cent below the level for those without children.

Labour has started to turn this round. We have

raised child benefit for the first child by over a quarter. The Working Families Tax Credit has
meant a tax cut averaging £31 per week for 1.1 million families. In 2001-02, an average of nearly
£500 above 1997-98 levels will be invested in every child in Britain. Personal tax and benefit
changes have made families with children an average of £1,000 a year better off.

We are pledged to go further – to eradicate

child poverty in a generation and halve it by 2010 In the next Parliament we will make further,
major change. The Children’s Tax Credit – the family tax cut – is worth up to £520 a year for five
million families, with half a million families removed from paying tax altogether. It is paid until
one parent earns more than £40,000 per year.

From 2003, the Integrated Child Credit will

bring together all existing income-related payments for children, providing most help to the
neediest children, building on the foundation of universal child benefit. With the new system of
child support, every family will receive at least £15 per week, and those most in need £50 per week
– over £2,500 per year. For the first time

Britain will have a seamless system of child support whether parents are in or out of work, paid to
the main carer.

Our aim is to make the goal of ending child poverty in Britain a political litmus test for any
political party running for office. The task for the next Parliament is to help another million
children out of poverty.

Investing in the future… new babies to get our Child Trust Fund

Assets Our active welfare state has so far been based on work, finance and services. It is now time
to add a fourth pillar to the welfare state – a programme to extend to all children the advantages
that come from reaching adulthood backed by a financial nest-egg.

Nearly a third of individuals have no financial savings or assets at all. People without assets are
much more likely to have lower earnings and higher unemployment, and are less likely to start a
business, or enter higher education.

The government already encourages people to save for a rainy day, and save for a pension. We are
determined to extend the savings habit to more people. But we are pledged also to use saving to
promote opportunity for the next generation.

All newly-born children will have an interestbearing Child Trust Fund set up in their name, with an
initial endowment from the government, with more for poorer children. The endowment will be locked
until the child reaches adulthood. We will provide incentives for extended family and friends, as
well as parents to contribute to the fund. All the next generation will have the backing of a real
financial asset to invest in learning, buying a home or setting up a business.

Caring for children A safe childhood is not just about financial security. It is also about care for
children, especially the 11,000 looked-after children in Scotland. Society is failing these
children: they are more likely to suffer educational disadvantage, leaving school with fewer

qualifications, and are more at risk of being excluded from school. We have made available funding
through the Scottish Executive’s Excellence Fund and Children Services Development Fund so that
local authorities can strengthen support for children and young people at school, including those
within the care system. We are sympathetic to the case for a Children’s Commissioner.

For many children in care, adoption offers the best chance of success in life. We are reviewing
adoption services in Scotland.

Family-friendly working For the majority of parents, time is precious. Many employers offer
excellent schemes for family-friendly working. But we want to go further – with government funding
to help parents devote more time to their children early in life. We want government to promote
choice, because without our help, many people are denied the choices that should be theirs. A
flexible labour market must work to the benefit of both employers and employees.

Statutory maternity leave is currently 18

weeks; we propose to increase it to six months. Statutory maternity pay is paid at a flat rate of
£60 a week; we propose to increase it to £100 per week, as big an increase in the next two years as
in the past 40 years. Fathers currently have no legal right to paid time off on the birth of a
child; we propose to introduce it for two weeks, also paid at £100 per week. We need to do more to
help parents balance work and family. Many parents, especially mothers, want to work reduced hours
when they do go back to work.

We will work with business and employees

to combine flexible working with the needs of business.

Child Support Agency Some families break up. Government’s role is to ensure that both parents retain
responsibility for the financial support of their children where they are able to do so. We have
always supported the principle underlying the work of the Child Support Agency (CSA), but its
introduction was bungled by the Conservatives. That is why we have already legislated to reform the
CSA and these improvements will come on stream from 2002. A simple system will ensure a better deal
for children, that fathers pay a fair share, that mothers benefit from their doing so, and that
tougher action is taken against parents who do not comply.

Pensions and pensioners

In 1997, Labour made a clear commitment to ensure that pensioners share fairly in the rising
prosperity of the nation. At this general election, we repeat our commitment to

pensioners – we honour your lifetime of work by ensuring that you share fairly in the nation’s
rising prosperity, and we are committed to tackling pensioner poverty. We will build a secure system
on the foundation of the Basic State Pension.

As a result of Labour’s policies this Parliament, spending on pensioners will be £4.5 billion a year
more in real terms than in 1997. Of this, £2 billion is going to the poorest third of pensioners.

Our first priority was to help those on lowest incomes: we have lifted the incomes of the 1.7
million poorest pensioners by at least £800 a year, and for some couples by up to £1,400. Pensioner
households are on average £11 per week better off than they were in 1997; and over three million
pensioner households benefit from free TV licences for the over-75s.

The pensioners’ tax allowance means six out of ten pensioners pay no tax. We have halved the rate of
tax they pay on savings income. We have pledged to extend tax allowances further so that by 2003 no
pensioner pays tax until their income reaches £127 per week.

We now need to go further. With Labour, the basic state pension will rise by 2003 to £77 a week for
a single pensioner and £123 a week for a pensioner couple. We guarantee that the

Security in retirement… state pension to rise with Labour

Minimum Income Guarantee will be uprated each year in line with earnings throughout the next
Parliament. In 2003 this will mean no single pensioner will have an income below £100 per week and
no pensioner couple an income below £154 per week. Labour introduced the Winter Fuel Payment. Its
level is set each year. Last winter it was raised to £200. For next winter, it will also be £200.

We will also do more to reward pensioners

who have saved. Pensioners who work and

save will find, for the first time ever, the government rewarding their saving. Pensioner couples
with an income up to £200 per week and single pensioners with income up to £154 per week will be
rewarded for saving – the government adding up to 60p for each £1 of savings income up to a maximum
of £23. In the process, we will abolish the weekly means-test for pensioners, along with the unfair
test of savings, which penalises pensioners who have more than £6,000 in the bank.

It is also vital to have in place long-term pension reform. We support a fair balance of public and
private provision. Occupational and personal pensions, properly regulated, will continue to offer
security for middle and high earners. We will continue discussions on annuity reform to ensure tax
rules do not unnecessarily restrict the development of annuity products and markets. For lowto
middle-income earners, stakeholder pensions cap costs, guarantee value for money, offer flexibility
and drive down fees across the board. And for the lowest paid and carers, full-time parents and
disabled people the state second pension will top up their pension contributions to give a decent
pension in retirement to 18 million people.

Today’s pensioners have much to give to society. Our national health, Labour’s health plan in
Scotland, offers investment for older people to promote better health, and support independence. And
the Scottish Executive has also announced new measures to improve the long-term care of the elderly.
The Care Development Group is looking at the provision of long-term care for older people and will
report in the autumn.

Carers Labour will tackle the problems faced by people requiring care, and the problems of carers
themselves.

The Scottish Executive launched its Carers Strategy in November 1999 and is investing to help unpaid
carers in Scotland, earmarking £10 million for local authorities for services to carers. It has also
provided £6.6 million since 1998 to 72 local health board area partnership projects to encourage
joint working and planning of services to help improve care and support for those with a mental
illness. As part of that strategy, we will invest £36 million over the next three years to improve
the lives of people with a learning disability and those who care for them.

Social justice

Labour is committed to using the power of the Scottish Parliament to deliver social justice; to
eliminate child poverty within this generation;

to provide opportunities for young people and build strong, inclusive communities. Child poverty We
are investing £42 million over three years through the Scottish Parliament in delivering Sure Start
Scotland which will expand support for our most vulnerable families, benefiting at least 5,000
additional children by 2002. Over five years (1997-2002), £56 million is being invested in the Early
Intervention programme, supporting a range of programmes to help children at the earliest stages of
primary school to master the key skills of numeracy and literacy.

Opportunities for young people We are on track to deliver 20,000 Modern Apprenticeships by 2003 to
help young people make a successful transition to working life. Over 100 projects across Scotland
have been funded by the Scottish Executive’s New Futures Fund to support our most disadvantaged
young people and to help them move towards employability. We will invest £100 million over the next
three years to tackle drug misuse, including £21 million to provide effective drug education,
support and alternative activities for young people and the families of drug-misusing parents.

Strengthening communities We are funding 48 Social Inclusion Partnerships to tackle exclusion at a
local level in urban and rural areas. We are helping local authorities across Scotland to improve
services to

How Labour helps pensioners:

* by boosting the basic state pension for a single pensioner to £77 each week in 2003,
£123 for couples

* by retaining the Winter licences for over-75s
Fuel Payment and free TV

* by rewarding those who save with the Pension Credit
* by raising the Minimum each week (£154 for couples) in 2003
Income Guarantee to £100

* by tackling discrimination against over-50s in healthcare and in the workplace
* by boosting police numbers and cutting overall crime and crimes like burglary that affect senior citizens the most
One million children lifted out of poverty

communities suffering deprivation with £90 million from the Better Neighbourhood Services Fund.
Through Scottish Homes, we are providing at least 20,000 new houses for social rent and low-cost
ownership over three years. Social economy To include the excluded, we are investing in the
voluntary and social economy sector. We are committed to having the sector as an equal civic
partner. These are the organisations that are often closest to the disadvantaged and excluded. We
want a strong voluntary sector that is a crucial partner in achieving our aim of social justice and
equality.

A popular welfare state

Labour’s objective is to get the right benefit to the right people at the right time. We want those
who are entitled to benefits to take up their rights to claim them. Fraud undermines confidence in
the welfare system, so we are committed to reduce it.

We have been prepared to be tough: preventing fraud by tightening gateways, sharpening sanctions on
fraudsters, and with ‘two strikes and you’re out’. We have saved £1 billion in fraud and error over
the course of the Parliament by tightening up the way we administer income support. The introduction
of Automated Credit Transfer will save a further £100 million per year.

Labour is committed to clear targets for fraud

reduction for each benefit, including a commitment to halve the rate of fraud and error in income
support and Job Seeker’s Allowance by half by 2006, and to incorporate fraud prevention into the
design of new policies on benefits and tax credits. We are also committed to data sharing between
government agencies, and action to reduce to a minimum the number

of ‘spare’ National Insurance numbers, that are a gateway to fraud.

Our welfare state is underpinned by clear values – we help you to help yourself, we invest in
children, we support our pensioners, we insist that no community be written off, and we minimise
fraud and error. Our reforms will build a strong and inclusive society.

## Strong and safe communities

Peace of mind… Labour has raised police numbers to their highest-ever level

Our ten-year goals A modern criminal justice system.

Responsive local government with high-quality services.

* 
*  recruits at record levels
Our next steps Extra funding to maintain police

New powers to seize the assets of drug traffickers and other major criminals

* 
Scotland’s first drug court

*  intimidated witnesses
A Bill to protect vulnerable and

* 
New freedoms, with a duty of Best Value for local government

We all know the sort of Scotland we want to live in – a Scotland where we can walk the streets
safely and know our children are safe. We have a ten-year vision: a new social contract where
everyone has a stake based on equal rights, where they pay their dues by exercising responsibility
in return, and where local communities shape their own futures.

Overall crime is down in Scotland and police numbers are now at their highest-ever level. Our
strategy is clear and consistent – tough on crime and tough on the causes of crime.

Our ten-year goal is a modern criminal justice system at every level, from police to courts to
prison – putting crime reduction centre stage. And because crime is changing, crime-fighting has to
change too – to tackle repeat-offending, drug-related and organised crime. We are investing to raise
police numbers even further.

Safe communities reclaim their streets; then they can shape their own affairs. But the drugs problem
is a Scottish, a British and an international problem. It therefore requires Scottish, British and
international solutions. And although Scotland’s criminal justice system is the responsibility of
the Scottish Parliament, the investment needed to implement the measures outlined in this chapter
can only be delivered by a Labour government, and the international action to take on the drug
barons will benefit from the determination and standing of the British government.

Responsibility from all Winning the battle against crime

Labour is delivering on crime in Scotland. The respected Scottish Crime Survey shows that crime, as
measured by the survey, is at its lowest level for 20 years.

But we are not satisfied. Drug-related crime is a menace. Recorded violent crime is still too high –
partly because more domestic and racial violence is being reported – but also because street
robbery, especially of mobile phones, has risen. And new crimes are being committed – fraud through
the internet, human trafficking.

The only way to reduce crime is by being tough on crime and tough on its causes. Government can help
families and communities prevent crime. But when people do commit crimes, we need an effective
criminal justice system able to catch, punish and rehabilitate people.

Supporting the police Labour is committed to supporting the police service in its role of reducing
crime and disorder in Scotland’s communities. One of our first priorities in government was to
reverse the underfunding of the police force under the Tories. Over the three years to 2003-04,
around an additional £166 million will be invested on the police in Scotland. These additional
resources will help to recruit more frontline officers.

Scotland’s police forces are officially at record

strength, according to new figures published in April. There are now 15,149 officers in Scotland,
more than ever before. This is up by 365 since the establishment of the Scottish Parliament. We have
encouraged the use of technology to free up police time for front-line duties and are committed to
developing a Scottish Police Information Strategy. An extra £1.7 million has been provided for DNA
detection work, and this will allow an extra 15,500 alleged offenders to be sampled.

Police have a much broader role than law enforcement. They have a key role to play in preventative
intervention, working alongside a range of outside agencies to build safer communities. We support
community policing and a stronger link between police and the communities they serve. Community
safety strategies combine the efforts of local authorities, community partnerships, the police and
the private sector to implement crime prevention and detection methods which meet the needs of that
particular community. It is only through this type of partnership-based working that the most
vulnerable members of our communities will feel safe on their streets and in their homes.

By employing methods such as CCTV,

improved street lighting and increased property security, alongside innovative community projects
such as those designed to address

Police on parade... Scotland’s police forces are officially at record strength and have delivered
results where it matters – on the streets

anti-social behaviour among young people, and by offering support to victims of crime, community
safety strategies have the potential to address wider community safety issues. The CCTV Challenge
Competition generated in excess of £23 million of capital expenditure, which will result in the
installation of 1,878 cameras in rural and urban areas.

We are committed to restructuring common

police services in order to improve the effectiveness of the support provided to police forces
through these shared services. A new Scottish Intelligence Database –

a police ‘supercomputer’ will mean that Scotland’s eight police forces and the Drug Enforcement
Agency will share the same secure intelligence at all levels, with better links to forces in the
rest of the UK and beyond.

Tackling serious crime and disorder Labour is determined to tackle the serious crimes which heighten
people’s fears and bring misery to our communities. There is an unacceptable culture of violence
that is linked to alcohol, drugs, domestic abuse and street crime.

The Safer Scotland campaign was launched in September 2000 and all eight Scottish police forces
combined to reduce violent crime by 77 per cent in the last three months of 2000. One in five of all
violent crimes occurred in or around licensed premises.

Violent crime Violent crime rose sharply under the Tories and is still too high. We have taken
action. A nationwide police crackdown on violent crime and criminals led to a significant fall in
violent crime in the three months to January 2001, with murders down 44 per cent from the same

period in the previous year.

Scotland's police have delivered results where it matters most – on Scotland's streets. As a direct
result of this campaign, violent crime has fallen, fewer dangerous weapons are in circulation and
more thugs are aware that our society will no longer tolerate their behaviour. We look forward to
continuing reductions in violent crime in the future.

Domestic violence Labour is committed to tackling domestic violence on every front. Domestic
violence damages many areas of the lives of victims. Domestic violence blights lives, including the
lives of children, destroys opportunities and excludes people from society in many ways. Labour has
prioritised tackling domestic violence in Scotland and giving support to victims. We have
established the Scottish Partnership on Domestic Abuse, and in November 2000 we allocated £18
million to fund measures in the national strategy. This will ensure enough refuge spaces for
everyone who needs one in Scotland, and take forward national priorities including a prevention
strategy.

Youth crime Persistent offending by young people damages too many of Scotland’s communities. It
creates victims, destroys property and ruins lives. It costs society resources which could be better
spent.

Labour is committed to supporting children’s hearings, increasing their budget by 50 per cent over
the next three years, because a wellresourced hearing system is central to tackling the problem of
repeat young offenders.

We are addressing youth crime in a manner which is serious about preventing young people

from adopting a career in crime. Swift and effective action must be taken, and rehabilitation must
be an option for the young people who could benefit. Labour has committed an additional £3 million
to developing effective alternatives to custody for persistent young offenders, and we announced a
new national network of challenging programmes for persistent young offenders – leading to safer
communities, fewer victims and fewer wasted lives.

#### Drugs

Tackling drugs effectively will protect the health of our young people and impact on crime. Recent
research in Glasgow suggests that at one time drug addicts were committing an estimated 2.6 million
offences a year, mostly involving shoplifting, theft and drug dealing. A modern society cannot
tolerate that kind of disruption to community life. Our Drugs Action Plan, published last year,
involves action across government departments. Over the next three years we will commit an extra
£100 million to dealing with drugs. With these additional resources we will continue to pursue a
strategy that works, combining action against the dealers with comprehensive measures embracing
prevention, education, treatment and rehabilitation, leading to new opportunities for former drug
misusers.

We have announced a pilot for Scotland’s first drug court in Glasgow. We will continue our work to
combat drug crime and take steps to confiscate the proceeds of drug dealers’ crimes through the
Proceeds of Crime Bill. Drugs is a global business and Labour will simplify the law on extradition
to target drug traffickers. We will follow the money trail, through bureaux de change to offshore
accounts, to convict them, and remove their money and passports if we do so.

The Scottish Drug Enforcement Agency The Scottish Drug Enforcement Agency brings in a strategic and
tactical capability for tackling drug crime at all levels. It is backed by additional funding of £10
million over the next two years earmarked for the enforcement effort. This will strengthen both the
centre and local forces by up to 200 additional officers.

At the same time, we are increasing

resources for drug squads at a local level within communities. Resources to support local Drug
Action Teams have doubled and £3.1 million has been committed over three years to expand drug
testing and treatment pilot schemes, and we will support community-based projects through our new
Scottish Communities Against Drugs initiative.

Drug misusers We are piloting Drug Treatment and Testing Orders to deal with those offenders who are
committing crimes to fund their drug misuse.

There will be a doubling of the programme next year, and an extension of its area of operation.

To tackle drug misuse, we will:

* ensure that all schools provide a programme of drug education to every pupil by 2002
* aim to increase those being seen by treatment services for the first time to 16,500 (up by 50 per cent) by 2004
* reduce the known proportion of under-25s being offered and using illegal drugs
* provide additional access to treatment opportunities for 2,500 offenders, through a range of community disposals targeting drug- related crime by 2004
* expand rehabilitation services to equip former drug users for a life free from drugs
* increase support for families of drug users, particularly for the children of drug-using parents
* provide comprehensive drug treatment packages in Scottish prisons.
We have announced, for the first time ever,

Primary school children learn about safety

measurable targets in the fight to cut both the demand for, and the supply of drugs. One target is
to cut drug deaths by at least a quarter over the next five years, another to increase the number of
drugs seizures by 25 per cent by 2004.

Victim support We recognise that the interests of the victim should be at the heart of the criminal
justice system. This includes effective communication with them and feedback to them. Uncertainty
about criminal justice processes and lack of information about case progress can add to the
suffering of victims following a crime.

The delivery of a Scottish Strategy for Victims is a huge achievement for Labour in government in
Scotland and for all the agencies that have worked with us. Key elements include:

* Through a pilot victims’ statement scheme, for the first time, victims will be able to put down, in their own words, how the crime has affected them.
* Improving information for victims and their families on the progress of cases and on the release dates of offenders.
* Enabling Victim Support Scotland to roll out the Witness Service to all Scottish cities. vulnerable and intimidated witnesses by preventing an accused person in a trial for rape or another sexual offence from cross-examining a victim witness personally, and also tighten up the restrictions on questioning of the victim as to their previous sexual history and character.
We will introduce a Bill which will protect

* Investing £2 million in the new support scheme for witnesses at criminal trials throughout received by witnesses who found it reassuring and helpful.
Scotland. Pilot support schemes have been well

Victim Support Scotland has over the years played a vital role in assisting victims, providing
support and information to victims through home visits, office appointments or by telephone. Labour
in government has substantially increased the budget of Victim Support Scotland, by 13 per cent
between 1998-99 and 1999- 2000 to over £1.7 million. And Victim Support Scotland is being fully
funded by the Executive to provide a witness service in all Scotland’s sheriff courts over the next
two years.

Our diverse nation

Labour believes that Britain can be a model of a multicultural, multi-racial society, where people
live and work together on the basis of respect not prejudice. In the last four years, there has been
major legal change; now is the time to build on that basis the inclusive society that is in tune
with British values.

Our commitment to protection for every

citizen is expressed in the 1998 Human Rights Act. It ensures that British citizens are able to
enforce rights in our own courts. Other legal change was necessary too. The Race Relations
(Amendment) Act learns the legal lessons of the shocking death of Stephen Lawrence, and places a
positive duty on all public bodies to promote equal opportunity. We abhor racism and shall continue
to implement the recommendations of the Macpherson report. Section 2a of the Local Government Act
has been repealed.

The UK now has the most comprehensive anti-discrimination legislation in Europe. But an inclusive,
tolerant, open society, where people rise on their merits, depends on culture and action as well as
law.

On the basis of the legal changes we have made, we now need to reduce the barriers – to services,
opportunities, institutions – that still hold people back. This applies in the public and private
sector. There are too few black and Asian staff in key public services and, in almost all
organisations, far too few in middle and senior grades, which is why we now have targets for

the diversity of central government and many other public services.

Voluntary and community organisations are

key to Labour’s vision for Britain. From large national charities to local community groups and
faith-based institutions, these sectors are a vital and diverse part of national life. We have
changed the tax rules to encourage individuals and businesses to give to charity, supported
initiatives to increase volunteering, involved voluntary and community groups in the design and
delivery of key government programmes, and helped charities build up their capacity to do their job
even better.

Labour will build on its Compact with the

voluntary sector, as we develop more far-reaching partnerships for the delivery of services and the
renewal of our communities. We will also build on our financial incentives to volunteering, by
developing an effective infrastructure to support voluntary work in every community in Britain. We
welcome the contribution of churches and other faith-based organisations as a partner of local and
central government in community renewal.

Immigration People from abroad make a positive contribution to British society. As our economy
changes and expands, so our rules on immigration need to reflect the need to meet skills shortages
for the benefit of all. The Primary Purpose Rule which split families and did nothing to stop abuse
has been ended. A right of appeal for family visitors has been introduced. Our immigration rules
will remain clear, firm and fair, and help to ensure that those who come and work here continue to
make a major contribution to our economic and social life.

Asylum It is right that people fleeing persecution are able to make a new life as hard-working
citizens in a new country. Britain has a long record of providing a home for such people, and it is
important that we maintain this position. But asylum should not be an alternative route to
immigration: it is designed for people with a well-founded fear of persecution.

The UK is ninth per head of population among

European nations for asylum applications. The key is to hear cases swiftly as well as fairly. By
cutting the decision-making time and increasing the processing of claims to over 10,000 a month
Labour has reduced the backlog we inherited. We have tightened controls against traffickers and
introduced a civil penalty for lorry drivers who bring in illegal immigrants.

A national support system has been introduced to relieve pressure on local authorities. Asylum
seekers and their dependants whose claims are rejected will be removed from Britain, with the aim of
more than

30,000 removals in 2003-04. We will also help those granted refugee status to integrate into the
local community by, for example, ensuring they have access to the New Deal and work opportunities to
get off benefits and into work. We support tough penalties for those who

engage in the barbaric trade of human trafficking. We will bring forward proposals to ensure a
common interpretation of the 1951 Convention across the EU and to improve the international response
to regional crises.

Political renewal

This manifesto sets out Labour’s offer for change and renewal at Westminster. But change comes from
the bottom up as much as the top down. For the last 50 years, governments have failed to respect
this basic truth.

Local and regional government Local authorities are responsible for the effective delivery of many
of Scotland’s core public services. The staff and councillors who work for the community often have
the hardest jobs. The best of local government is an inspiring example of what government can
achieve.

We have replaced Compulsory Competitive Tendering (CCT) with Best Value, which requires local
authorities to take a strategic approach to service delivery.

We have established a £26 million

Modernising Government Fund to support new and innovative projects from across the public sector,
including those which harness new technology and promote integrated working. And we have given
councils new powers to develop new initiatives to help their local communities. After years of Tory
cuts and centralisation we

have brought back stability to local government finance with an end to crude and universal capping
and allowed three-year settlements to allow councils to plan their services more effectively. We are
providing additional support to local authorities dealing with high levels of deprivation. And we
are modernising the political management of councils while raising ethical standards in local
government. When public services are delivered in partnership with the private and voluntary
sectors, it should be on the basis of best value not worst labour standards. The TUPE regulations
protect the rights of any transferred employees. Newly-hired workers are protected by minimum
standards at work. We will use a wide-ranging review of TUPE regulations to consider whether unfair
disparities are being created between these two groups of workers.

Devolution In England, we are committed, as Regional Development Agencies take on more power, to
enhance the scrutiny functions of Regional Chambers. For some regions this degree of political
representation will be sufficient. However, in other parts of the country there may be a stronger
sense of regional identity and a desire for a regional political voice. In 1997 we said that
provision should be made for directly elected regional government to go ahead in regions where
people decided in a referendum to support it, and where pre-dominantly unitary local government is
established. This remains our commitment today.

Devolution has strengthened the UK, preserving the Union on the basis of a fairer partnership. The
Nationalist lie has also been exposed: the UK is strong enough and flexible enough to devolve power
while retaining the

Multicultural Britain… an inclusive society begins at school

benefits of staying together.

The UK Parliament makes the essential financial allocations to all devolved bodies. English MPs make
up 85 per cent of the UK Parliament, so there is no case for threatening the unity of the UK with an
English Parliament or the denial of voting rights to Scottish, Welsh and Northern Ireland’s MPs at
Westminster.

Northern Ireland We have made working for peace in Northern Ireland a priority. The Good Friday
Agreement was overwhelmingly supported by the people of Northern Ireland and in the Republic of
Ireland. While it has not brought a perfect peace, and while the peace process has not been smooth,
it has made life immeasurably better.

Northern Ireland now has its own Assembly and Executive. They have produced their first programme
for government and first Budget on a cross-community basis. The security situation has been
transformed. People can walk again on the streets of Belfast, free from fear. Troops no longer
patrol in the vast majority of the Province. And the number of murders has been drastically reduced.

We will build on these foundations to ensure that the Good Friday Agreement is implemented in full
and the new institutions take root. We will establish a modern, responsive and fully accountable
police service properly representative of the two main traditions in Northern Ireland and enjoying
their trust and support. And we will bring about the key reforms in the civil and criminal justice
system which secure the respect and trust of both traditions.

Parliamentary reform The House of Commons is now more representative than ever before, yet only one
in five MPs is a woman. Labour increased women’s representation five-fold in the 1997 Parliament
through all-women shortlists. And in the selection of candidates for the elections to the Scottish
Parliament, we took action to ensure fairer representation of women. As a result, half of the 56
Labour MSPs are women. We are committed, through legislation, to allow each party to make positive
moves to increase the representation of women.

Labour will continue to modernise the

procedures of the House of Commons so that it can effectively fulfil its functions of representation
and scrutiny.

The government has introduced major innovations in the electoral systems used in the UK for the
devolved administrations, the European Parliament, and the London Assembly. The Independent
Commission on the Voting System made proposals for electoral reform at Westminster. We will review
the experience of the new systems, and the Jenkins report, to assess whether changes might be made
to the

Devolution delivered... Labour has returned power to the people of Scotland

Whitehall Our civil service is world-renowned for its independence. Labour is committed to
maintaining the political impartiality of the civil service. But it needs reform to make it more
effective and more entrepreneurial. There have been important reforms in our first term. We want to
take further radical steps forward to ensure the civil service has the skills base necessary to meet
the challenges set out in this manifesto.

Equal rights for all, proper enforcement of the law, and reformed structures of self-government:
these are the foundations of a strong civic society. Labour offers opportunity with responsibility –
the right combination for Britain in the 21st century.

electoral system for the House of Commons. A referendum of the people remains the right way to agree
any change for Westminster.

We are committed to completing the House of Lords reform, including removal of the remaining
hereditary peers, to make it more representative and democratic, while maintaining the House of
Commons’ traditional privacy. We have given our support to the report and conclusions of the Wakeham
Commission, and will seek to implement it in the most effective way possible. Labour supports
modernisation of the House of Lords’ procedures to improve its effectiveness.

We will put the independent Appointments Commission on a statutory footing.

How Labour is tackling crime:

* through new powers to seize the assets of drug dealers
* by extra funding for the Scottish
Drug Enforcement Agency and Scotland’s first ever drugs court

* through extra money for the recruitment of more front-line officers
* by using information technology to free up police officers for front - line duties
* by providing more CCTV cameras in rural and urban areas
* by tackling the causes of crime through measures like the New
Deal and action on truancy

Our ten-year goals Europe to have the most competitive knowledge-based economies in the world as
British ideas lead a reformed and enlarged Europe.

Britain needs a government ready to stand up for our interests and values. We have a ten-year vision
for British foreign policy: a leading player in Europe, our alliance with the United States
strengthened, using our global connections to help Britain and tackle global problems.

Global responsibility… Labour is increasing funding for our armed forces

Delivering Kyoto and international development targets as we help tackle climate change and global
poverty.

Our next steps Lead economic reform in Europe

Work for the re-start of world trade talks

* 
* 
*  armed forces
Strong, effective and responsive

*  target
Raise international aid towards UN

*  greenhouse gas trading to cut pollution
Be the first country to introduce

Unlike the Conservatives, we see Europe as an opportunity, not a threat. Because we participate
fully, we are able to work with our partners to shape an EU agenda that advances our national
interests. We will put democratically elected national governments clearly in the driving seat of EU
policy. Our tenyear goal is to work with our partners for Europe to have the most competitive
knowledge-based economies in the world. We hold to our promise: no membership of the single currency
without the consent of the British people in a referendum.

Britain has some of the best armed forces in the world. With Labour, they are being developed to
meet the challenges of the post-Cold War world.

Labour is committed to leading the development of a comprehensive agenda for poverty reduction and
sustainable development. We want to mobilise the international community to deliver the
International Development Targets, generate growth and equity in developing countries, and help them
benefit from global economic integration.

We are convinced of the science of global warming. We pledge to meet tough national targets for
environmental protection, and will work at international level to halt and reverse climate change.

We face a choice between an inward-looking chauvinism that leads to isolation, and a modern
patriotism where the British national interest is pursued through international engagement.

Reform in Europe

Europe is changing. Economic reform is under way in the EU, with over two million new jobs created
last year. Many new members are going to join the EU. Co-operation is being extended in defence and
security policy. A new way of conducting EU business has been born – comparing best practice to
share the benefits of diversity in order to reduce over-reliance on centralised regulation.

We face a very simple question. Do we want to be part of the change, influencing its direction? Or
do we want to opt out? We have spent 50 years on the margins; it is time to make the most of our
membership.

We have seen the alternative. By 1997, Britain had retreated into itself: business was global,
people travelled and worked around the world, our culture was open to new ideas,

Britain

Britain is leading reform in Europe

yet our government was closing itself off. And Britain got a worse deal. Because they were backward-
looking and divided on Europe, the Conservatives were weak and ineffective in Europe; and because of
their weakness in Europe, Britain lost influence around the world. We lost our say over decisions
that affected our lives.

In the last four years we have seen the

benefits of engagement. Our rebate has been protected and our contributions are falling to similar
levels as those in France and Italy. The Labour model of defence co-operation – giving Europe the
option to act where NATO chooses not to – has won through. Economic reform is now helping the
European economy. The veto on crucial issues of national sovereignty like tax is safe. All this
happened only because Labour had the strength to get involved, argue for its ideas and persuade
others to follow us.

Labour believes that Europe brings benefits

for Britain, and that a Europe, reformed by British ideas and working with our MEPs, will

be even better for Britain. Together with virtually all other European countries, we do not support
a United States of Europe. But we do believe a Europe made up of nation states and offering a unique
blend of intergovernmental co-operation where possible and integration where necessary, can be a
major force for good – for its own members and in the wider world. We want to take Europe forward,
to meet British needs.

Europe, it will be stronger in the rest of the world. We reject the view of those who say we must
choose between Europe and the USA. We shall remain the USA’s firm ally and friend; but we are not
going to turn our backs on Europe. The USA and Europe account for ten per cent of world population
but 60 per cent of global GDP; working together we can tackle many problems and spread the benefits
of freedom, peace and prosperity.

A Europe of prosperity Europe is a crucial market, accounting for more than half of our trade.
Britain has secured a shift in economic policy in Europe – away from harmonisation of rules and
towards a system based on dynamic markets allied to comparison and promotion of best practice.

The key priorities are to deliver more choice

and lower prices through liberalisation of financial services and utilities, to promote business
development with a common EU patent and cuts in red tape, to develop our common research effort in
frontier technologies like bioscience, cut delays and fares by establishing an integrated Air
Traffic Control system for Europe; and to develop effective labour market policy to tackle
unemployment in dialogue with the social partners. We support efforts being made across the EU to
reform welfare states, modernise social partnership and advance social inclusion. EU state aid
policy should bear down on aid that distorts the single market while supporting economic
modernisation. We will keep the veto on vital matters of national sovereignty, like tax and border
controls.

Trade has been a vital source of prosperity for Europe’s citizens. Our vision is of an open European
economy. That requires a genuine single market, in an open world trading system.

A wider Europe New countries joining the EU will give Britain a bigger market and Europe a bigger
voice. Membership will help guarantee the freedoms of the new democracies in Central and Eastern
Europe. Labour is pledged to do all it can to enable the first group of applicant countries to join
in time to take part in the next European Parliamentary elections in 2004. It is vital that we
ratify the Treaty of Nice which is essential to enlargement; Labour in government will do so.

The Conservatives have said they will insist

on trying to renegotiate Europe’s treaties at the first summit after the general election. No other
country agrees with this. That means that a Conservative government would either have to back down
in the face of opposition, or take Britain out of Europe altogether, with disastrous consequences
for Britain.

Our argument is that if Britain is stronger in

A Europe of the future The main sources of popular legitimacy in Europe remain national governments
and parliaments. So national governments should be seen to be setting the agenda of the EU, with the
European Council setting the EU’s priorities, a strong independent Commission ensuring that the
European interest is heard and enforced, and an effective European Parliament improving draft
legislation and holding the Commission to account. Labour wants the next Inter-Governmental
Conference in 2004 to address public concerns about the way the EU works, spelling out in a clear
statement of principles what should and should not be done at European level. Labour supports a
stronger role for national parliaments in European affairs, for example in a second chamber of the
European Parliament, with a particular remit to oversee the division of competences. We will also
insist that the Commission completes its internal reform programme.

### Defence

Britain’s national security is based on the mutual support that comes from membership of NATO. That
will not change. And although Britain has rarely been more secure from foreign invasion, there are
new threats to our people from crime and terrorism . Instability around the world can affect us
directly and we have a global responsibility to play our part in reducing international conflict,
controlling the spread of weapons of mass destruction, and contributing to international
peacekeeping and peacemaking operations.

To enable the EU to act where NATO chooses not to, the EU should improve its military capabilities
for humanitarian, peacekeeping and crisis management tasks. Our armed forces are the best in the
world

at fighting if they have to and keeping the peace where they can. Labour is committed to investing
more in real terms in our armed services over the next three years, the first year-on-year real
increase in funds for over a decade. An important part of that investment will be in better service
accommodation. We are determined to recruit and retain the best

people, from all walks of life and all backgrounds. We also will look after the interests of
Britain’s veterans. We have doubled funding for research on Gulf War illnesses and will continue
this important work.

In 1997 Labour promised a Strategic

Defence Review. Today, that review is admired around the world for its clarity, efficiency and
foresight. We need more mobile and more flexible armed forces, with the ability to project force at
distance and speed, to work closely with other nations and international bodies, and to fight and
keep the peace. In Kosovo and Sierra Leone we have shown what this means in practice, and our
servicemen and women have responded magnificently. We are determined to maximise resources for front
line use by disposing of surplus spares and promoting smart procurement and efficiency savings.

The European Defence Initiative is an

important part of our defence policy. Europe spends two-thirds as much as the US on defence, but
gets only a fraction of its effectiveness. European nations need to modernise their armed forces for
rapid and flexible deployment. Improved EU military capabilities will not be separate from NATO
structures and would only be deployed where NATO as a whole chooses not to engage. The launch of an
EU operation will follow a unanimous decision, with each member state free to decide whether to take
part.

We support Trident, Britain’s minimum

nuclear deterrent. The Nuclear Non- Proliferation Treaty commits us to work for the global
elimination of nuclear weapons. We are enthusiastic signatories to the Comprehensive Test Ban
Treaty, whose coming into force will impede nuclear proliferation, and we want to see the USA and
Russia continue to reduce their nuclear stockpiles.

We recognise the new dangers posed by

the proliferation of nuclear, chemical and biological weapons, and the need to combat them. Nuclear
arms reductions and proliferation controls remain an important part of defence and security policy.
We will seek effective inspections against the development of chemical and biological weapons. We
will encourage the US to consult closely with NATO allies on its ideas for missile defence and to
pursue a dialogue with Russia on a new framework for strategic arms control that will encourage
further cuts in nuclear weapons.

The British defence industry is a vital part of

our economy, sustaining some 350,000 hightechnology jobs. We will continue to work closely with our
best companies to get the best equipment for our armed forces – a good deal for the taxpayer as well
as a secure future for high-technology jobs.

The UK has introduced the most open

report on arms exports of any European nation and has led the EU to adopt a code of conduct on arms
sales. Labour will lead efforts to control the trade in small arms, and work for a comprehensive
action plan at this year’s UN conference on small arms, including an International Arms Surrender
Fund to provide development aid in exchange for firearms. We will legislate to modernise the
regulation of arms exports, with a licensing system to control the activities of arms brokers and
traffickers wherever they are located. We will work with EU applicant countries to strengthen their
capacity to control legal and illicit arms transfers.

The modern world

Britain belongs to a unique range of influential global organisations, giving us responsibilities
and opportunities. Labour will stand up for Britain:

* at the UN, where we support a more modern and representative Security Council, with more effective peacekeeping
* at the Group of 7 leading industrialised countries, where we will stay at the forefront of efforts to promote development
* in the Commonwealth, where we will work to promote human rights and bridge the digital divide.
We will argue for an early, comprehensive

world trade round, to the benefit of industrialised and developing countries alike. The World Trade
Organisation (WTO) must be reformed, not rejected. We will support fairer terms of trade for
developing countries, and a reduction in protectionism in the developed world in areas such as
agriculture. We will continue to help developing countries exercise their rights within the WTO.

We support the promotion of higher labour

standards around the world, as well as respect for the environment, as we expand world trade. The
International Labour Organisation (ILO) is the place to set labour standards, but we believe there
should be closer co-operation between the ILO and the WTO through the creation of a joint standing
forum of the two organisations.

We are committed to encouraging universal

observance of human rights. Governments which are democratically elected will be firmer allies for
peace; open societies which respect individual freedom will be more reliable trade partners. Labour
will be a friend of those denied human rights and a supporter of steps to strengthen them.

Labour has played a leading role in bringing war criminals, notably from former Yugoslavia,

Keeping the peace in Kosovo… Labour is investing in strong, effective and responsive armed forces

to justice, and in establishing a permanent court to try war crimes. We will make the International
Criminal Court a reality, with Britain as one of its first members.

### International development

In 1997, Labour pledged to give new priority to tackling global poverty. Four years on, there have
been real achievements – a Cabinet Minister heads an internationally respected department, the aid
budget has been substantially raised, and tied aid has been abolished. Britain is playing a leading
world role on debt relief, education, HIV/AIDS, and in responding to humanitarian disasters. With
strong UK leadership, the international development effort is now increasingly

Promoting human rights… Tony Blair with Nelson Mandela

focused on poverty reduction.

This is morally right, but also in our interest. Many of the world’s biggest challenges – from
violent conflict to rapid population growth to environmental threat – are caused or exacerbated by
global poverty and inequality. There can be no secure future for any of us unless we promote greater
global social justice.

Labour will continue to focus Britain’s development effort on the achievement by 2015 of the
International Development Targets – including halving the proportion of the world’s population
living in extreme poverty, reducing child and infant mortality by two-thirds, primary education for
all children, and sustainable development plans in every country.

With Labour, the aid budget will rise to 0.33

per cent of GNP by 2003-04, reaching £3.6 billion – a 45 per cent increase in real terms since 1997
level. We remain committed to the UN target of 0.7 per cent of national income devoted to
development and will make further substantial increases over the next Parliament. We remain
committed to our Bill, blocked by the Tories, to consolidate our poverty-focused approach to
development. We are using this aid to support political

and economic reform in developing countries. Our aid is an investment to help countries put in place
policies to raise the growth rate with greater equity, crack down on corruption, promote human
rights, including those for women and girls, and develop effective governance and democracy. We will
legislate to toughen controls over UK nationals who commit offences of corruption abroad.

Labour will champion increased effectiveness

and a stronger focus on poverty reduction within international institutions – particularly the EU
but also the World Bank, International Monetary Fund, UN and the Commonwealth – with full support
for poverty reduction strategies where they genuinely prioritise poverty reduction. We are committed
to international action to put the needs of children at the centre of these strategies. By 2006 we
want to raise to 70 per cent the proportion of EU aid going to low-income countries, and work with
the Commission, Parliament and other governments to strengthen the EU’s development effort.

Labour has led internationally on debt relief,

providing 100 per cent relief for countries committed to spending the proceeds on poverty reduction.
We will work to help more of the heavily indebted poor countries qualify for debt relief where this
benefits the poor. And we will work to prevent new debt burdens through international agreement not
to give export credits for excessive military spending or prestige projects.

Education has a special place for Labour. We will increase further our support for quality primary
education for all, particularly for girls. Our Imfundo project, part of an £800 million education
programme, will bring together public and private sector commitment to use IT to ensure effective
teacher training and education management. We will give top priority to combating the spread of
HIV/AIDS which is inflicting massive human and economic costs across the developing world. We will
work for the creation of a global health fund to make essential drugs and commodities more
accessible to the poor, focusing on TB, malaria and HIV/AIDS. This will complement our existing
support for the development of basic healthcare systems and our new tax credits to incentivise
research into the diseases of poverty by the drug companies.

Development goes much wider than aid and

debt relief. It is also about how we manage the global economy. Our aim is to shape globalisation so
that it works better for the world’s poor.

Trade is key. But so is private investment. We will promote socially responsible business practice
through advisory services on codes of social responsibility, the Ethical Trading Initiative, the
Export Credit Guarantee

Department’s new code of business principles, the Commonwealth Development Corporation’s partnership
with the private sector, and our initiatives to encourage private investment in infrastructure.

Nowhere will our resolve be more tested than in Africa. Labour is committed to strengthening our
partnership for development with Africa. We will work with reforming governments, international
institutions, the private sector and civil society in support of nationally owned development
strategies. We will also redouble our efforts to prevent and resolve violent conflicts in Africa,
using our new Africa conflict fund to provide help for security sector reform, demilitarisation
programmes and tighter controls over small arms.

The environmental challenge

The poor make the smallest per capita contribution to climate change, but are often most affected
when it happens. We are convinced by the scientific evidence of climate change – and convinced that
now is the time to act. We need action at local, national and international level if we are to
preserve the stability of our natural environment over the next 50 years. The principle of mutual
responsibility that governs our approach to social problems also applies to environmental issues.

The healthy future of our environment is one

of the world’s greatest challenges. We must make substantial changes in the ways we work

How Labour is strengthening your voice in the world:

* by taking a lead in Europe, standing up for Britain’s rights and reforming Europe to promote jobs and deepen democracy
* by supporting our armed forces, making sure our troops are always available and effective in times of crisis
* by working to tackle global climate change, meeting our own tough targets and pushing other countries to meet theirs
* by leading the fight against global poverty, with increased aid, better spent and live to safeguard all our futures. The UK played a leading role in the Kyoto conference. emissions agreed at that conference are a vital first step in the battle against global warming. community plays its part in making a reality of sustainable development. We are determined to play a constructive role at the Rio plus 10 meeting in South Africa next year.
The targets for reducing greenhouse gas It is critical that the whole international

We are one of the few countries to have met our 1992 obligations to hold greenhouse gases in 2000
below their 1990 levels. In 1997 we set a target of reducing CO2 emissions by 20 per cent by 2010.
We will meet our obligations arising from the Kyoto protocol and have set out a detailed strategy to
achieve more – a 23 per cent cut in greenhouse gases by 2010. The Royal Commission on Environmental
Pollution has said the UK will need to cut CO2 production by 60 per cent by 2050, so we need to
press ahead with a radical agenda for the development of low-carbon economic growth, embodied in our
£700 million commitment to renewable energy.

In addition to our proposals for environmental technology and renewable energy (described in
‘Prosperity for all’), we must also make progress in the following areas:

* We must make the market work for the environment. Britain is developing the first national CO2 emissions trading system in the world. It will help companies find the most efficient way of reducing emissions – and reward them for doing so. Once the system is established here we will seek to extend it around the world.
* We will support fuel cell and hybrid vehicles, which already offer a halving of fuel consumption and CO2 emissions, with cheaper motoring to match – and for cleaner fuels and biofuels. By increasing demand for new technologies we can boost innovation and the vitality of the UK car industry.
* It is imperative that we use natural resources more efficiently and recycle more. We will continue to tax pollution and reward clean production. We will develop environmental productivity indicators. We have set a target for the recycling of 35 per cent of household waste by 2015 and will work with local authorities to introduce kerbside recycling schemes wherever appropriate.
* Water management is a vital challenge for the future – for the environment and for the growing world population.
* Environmental protection and sustainable development go hand in hand. We cannot protect the environment without addressing the development needs of the poor, and poverty reduction depends on safeguarding natural resources on which poor people depend.
* We will continue to provide leadership abroad, working for international agreement on climate change, improved integration of the environment in European policies and a strong global environment agency built around the current UN Environment Programme. We will
International aid… education has a special place for Labour

work to improve marine and forest conservation overseas and in the UK.

Britain can be pivotal to world affairs, using our alliances to advance our interests and values.
The key is to use our strengths of history and geography to engage with other countries, not to
retreat. That is Labour’s promise.

Natural resources… Labour is committed to a healthy environment and renewable energy, taxing
pollution and rewarding clean production

## The choices for Scotland

## 25 steps to a better Scotland

These are our ambitions for Scotland – and how they can be achieved. Clear in our values, confident
in our policies, we seek a new mandate from the Scottish people.

We are proud of our record in government. But we are not yet satisfied. Labour is the party of
reform and we fight this election as agents of change in Scotland and the rest of Britain.

Change to our economy, so more people share the benefits of growth. Change in our public services,
so that they better advance equality of opportunity. Change in our welfare system, so that we extend
security, responsibility and independence. Change to tackle crime and its causes. Change to deepen
our democracy. Change to Britain’s role in the world.

The Conservatives were rejected in 1997 because they had failed. The national debt had doubled; one
in five households were on benefit; and we were marginalised in Europe.

Yet instead of learning, the Conservatives have become more dogmatic, more extreme, more divided.
They are worse than ever.

The Scottish people now face a choice. New Labour stands in the political mainstream, rooted in the
best values of the Scottish people. The Conservatives have veered to extreme positions.

This election will decide whether we continue the policies that have brought us economic stability,
steady growth, investment in public services and targeted tax cuts for children and families, or
whether we lurch back to boom and bust. It will decide whether we stand for a positive engagement
with Europe and the wider world, or retreat to the sidelines. And it will decide whether we put our
schools, hospitals and police officers first, or put them second after unaffordable tax cuts.
Because £16 billion worth of Tory cuts to public services would mean less money for the Scottish
Parliament to invest in Scotland’s schools and hospitals, its police and transport system. That is
why we need Labour at Westminster and Labour at Holyrood.

We want everyone to vote in this election. But before you do, think of your job; think of your
mortgage; think of your school and hospital; think of your children and your parents; think of
police and crime prevention; think of the choice of leadership. Think of who you want to succeed in
Scotland – the many or the few.

There is still much to do with new Labour – and a lot for you to lose under the Conservatives.

The choice is clear: for an ambitious and confident Scotland, the choice is Labour.

Basic skills for 750,000 people

Innovative financing schemes to encourage investment

Free off-peak bus travel for pensioners and people with disabilities

Raise the minimum wage to £4.20

£1,000 tax cut – the Children’s Tax Credit – for parents of newborn children

A computer for every five secondary pupils and four for every primary class

1,000 extra teachers for Scotland’s schools

Cut in-patient waiting times, with a maximum waiting time of no more than nine months by 2003

The biggest-ever hospital building programme in Scotland’s history

All Scottish secondary schools to have a sports co-ordinator

An ‘Employment First’ interview for everyone coming on to benefits

Expanded support for children through tax and benefit reform

Extend and increase paid maternity leave and introduce paid paternity leave

New Pension Credit for lowerand middleincome pensioners and the Winter Fuel Payment retained

A £90 million Better Neighbourhood Fund

Extra funding to maintain police recruits at record levels

New powers to seize the assets of drug traffickers and other major criminals

Scotland’s first drug court

A bill to protect vulnerable and intimidated witnesses

New freedoms, with a duty of Best Value for local government

Lead economic reform in Europe

Work for the re-start of world trade talks

Strong, effective and responsive armed forces

Raise international aid towards the UN target

Be the first country to introduce greenhouse gas trading to cut pollution

## The contract delivered

In the 1997 Labour manifesto,Tony Blair said: ‘We set out in the manifesto that follows ten
commitments, commitments that form our bond of trust with the people. Judge us on them. Have trust
in us and we will repay that trust. This is our contract with the people.’ This is a summary of
Labour’s record since 1997. For more information on Labour’s policies, please visit our website at
www.scottishlabour.org.uk, or contact your local Labour campaign team.

1 Education will be our number one priority, and we will increase the share of national income spent
on education as we decrease it on the bills of economic and social failure

The record: We have passed the Standards in

Scottish Schools Act, introducing national priorities to raise standards, especially in core skills
of literacy and numeracy. This August, there will be no primary one, two or three classes with over
30 children. We have cut the costs of debt and unemployment by nearly £9 billion per year. Education
spending across the UK has risen from the 4.7 per cent of national income we inherited to 5 per cent
this year (2001-02).

2 There will be no increase in the basic or top rates on income tax

The record: We cut the basic rate of income tax

to 22p in April 2000 and introduced the 10p band in April 1999. There has been no increase in the
top rate of income tax. The direct tax burden on a single earner family on average earnings with two
children is the lowest since 1972.

3 We will provide stable economic growth with low inflation, and promote dynamic and competitive
business and industry at home and abroad

The record: Net borrowing in every year from

1997 to 2003-04 is forecast to be lower than in any Tory year, from 1992-93 to 1996-97. Inflation
has been consistently under control and on target. Economic growth has been steady, averaging 2.75
per cent a year since 1997 Living standards are on average about 10 per cent higher in real terms
than in 1997.

4 We will get 25,000 young Scots off benefit and into work

The record: Some 32,600 Scots have been

helped into work by Labour’s New Deal. There are 97,000 more Scots in work than in 1997;
unemployment is at its lowest level for 25 years in Scotland.

5 We will rebuild the NHS, reducing spending on administration and increasing spending on patient
care

The record: The next three years will see record

spending on the NHS and the biggest-ever hospital building programme. We have streamlined
bureaucracy and abolished the internal market, releasing resources to treat more patients. Waiting
lists and waiting times are falling. Eight out of ten patients are treated within three months, with
100,000 more operations than in 1997.

6 We will be tough on crime and tough on the causes of crime

The record: Overall crime in Scotland, as

measured by the Scottish Crime Survey, is at its lowest level for 20 years. Scotland’s police forces
are officially at record strength. There are now 15,149 officers in Scotland, more than ever before
– up 365 since the Scottish Parliament was set up. We have set up the Scottish Drug Enforcement
Agency and, over the next three years, we will commit an extra £100 million to dealing with drugs.
We have banned all handguns.

7 We will help build strong families and strong communities, and lay the foundations of a modern
welfare state in pensions and community care

The record: Child benefit has been raised by over

25 per cent for the first child. The Children’s Tax Credit is worth up to £520 a year. We have
introduced parental leave and rights to holidays. We are extending maternity leave. £4.5 billion
extra is being spent this year in real terms on pensioners. The basic state pension will rise to
£75.50 for single pensioners and £120.70 for pensioner couples next year, and the Minimum Income
Guarantee is helping over 1.6 million of the poorest pensioners. TV licence fees have been abolished
for the over-75s, with free access to national museums and galleries for children and pensioners.

8 We will safeguard our environment, and develop an integrated transport policy to fight congestion
and pollution

The record: We are making record investment in

transport, which will increase by 45 per cent over the next three years. We have maintained and
invested in our trunk road system, including five major new constructions and a package worth £444
million to improve and repair Scotland's road network, an increase of 22 per cent on the previous
two years. We have also invested in safety, particularly for children, with over £5 million to
implement Safer Routes to School throughout Scotland. Public transport has been revitalised with
Labour, with £200 million in subsidies for Scotland’s rail services and £150 million for our Public
Transport Fund. We have invested in bus travel and overseen the first rise in bus use in 13 years.
Further funds have been allocated for the Freight Facilities Grant to get 18 million lorry miles off
the roads by 2002.

9 We will clean up politics, decentralise political power and establish a Scottish Parliament

The record: The funding of political parties,

campaign expenditure and conduct of referendums is regulated. For the first time the UK has a
Freedom of Information Act. The Scottish Parliament, Welsh Assembly and Northern Ireland Assembly
are now up and running, while local democracy has been returned to the people of London. The first
stage of reform of the House of Lords has reduced the number of Hereditary Peers to less than 100.

10 We will give Britain the leadership in Europe which Britain and Europe need

The record: Labour has negotiated successfully

for Britain in Europe. Our rebate is protected, enlargement is being taken forward. We have led the
debate on European economic reform, on the development of a European defence capacity rooted in NATO
structures. In Kosovo our armed forces played a leading role in standing up against ethnic
cleansing.