'Austerity in new clothes': Labour MP calls out Anas Sarwar on spending cuts

Yahoo

23-03-2025

ANAS Sarwar has been called out for insisting his party has not implemented austerity measures as a Labour MP has insisted that they have – but 'just dressed in new clothes'.
Clive Lewis, the Labour MP for Norwich South, has publicly debunked Sarwar's claims that Labour's spring statement will be 'the very opposite of austerity'.
The Scottish Labour leader was quizzed earlier this week about his party's members quitting over the proposed £5 billion in welfare cuts as the MSP claimed austerity is simply when public spending "goes down".
However, Lewis has refuted Sarwar's claim as he said austerity measures aren't just about 'raw numbers' and that it is about choices.
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Sharing a video of Sarwar at Holyrood, the MP wrote on social media that austerity happens when public spending doesn't keep up with inflation, population growth and rising needs, like poverty, climate crisis and an ageing population.
'Even if the budget rises in cash terms, cuts still fall hard in real terms. That's austerity — just disguised,' Lewis said.
He went on to explain that the £5bn is a cut to welfare spending because how benefits are uprated is changing, which includes freezing thresholds, cutting inflation links like the Local Housing Allowance, and capping eligibility.
Lewis (below) added that despite the Department of Work and Pensions (DWP) spending more overall, because more people are struggling the UK Government will spend less than it would have under the previous rules.
(Image: Newsquest)
'That £5bn is a 'cut' in planned support, not total spend. A real-terms cut to the poorest, during a cost-of-living crisis,' Lewis said.
'This is austerity by stealth.'
Lewis made the final point that Labour's plan is to implement austerity measures not by shrinking the state but rather by restructuring it by increasing spending on defence and corporate welfare and decreasing spending on social security.
'What we need isn't just more spending,' he added. "We need different spending — grounded in economic democracy, not deference to capital.
'I'm afraid austerity's still here. Just dressed in new clothes.'
Last week Work and Pensions Secretary Liz Kendall (below) outlined the UK Government's controversial plans to reform welfare which included tightening the eligibility criteria for Personal Independence Payment (PIP) in a move which has been heavily criticised by politicians and campaign groups.
Kendall confirmed applicants for PIP will now need to score a minimum of four points in at least one activity to qualify for the daily living element adding the changes were necessary, so the benefits system is focused on 'support for those in greatest need'.
The Fraser of Allander Institute previously noted that a £1bn reduction in PIP spending through reduced caseload would worsen the Scottish Budget by around £115 million.
Kendall also outlined plans to scrap the work capability assessment for Universal Credit and that the UK Government will consult on whether the health top-up to the benefit should be delayed for those aged under 22.
SNP Westminster leader Stephen Flynn MP warned the cuts 'will harm the most vulnerable, push disabled people into poverty' and mark 'the start of a new era of austerity cuts under the Labour Party'.
Scottish Labour have been approached for comment.