Demolishing Our Future Again

“As you will no doubt be aware, the plans for development of the outlying regions of the Galaxy require the building of a hyperspatial express route through your star system, and regrettably your planet is one of those scheduled for demolition. The process will take slightly less than two of your Earth minutes. Thank you.” – Douglas Adams (The Hitchhiker’s Guide to the Galaxy )

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The demolition of the Wyndford towers in Glasgow marks a sad end for the residents and campaigners who fought for years to prevent their loss. The fall of those towers represents a lot about failings in Scotland – and particularly in Glasgow – around approaches to construction, approaches to place-making and our approach to what we think residential housing is for.

The destruction of the towers was done almost entirely on short term financial grounds and because the owners of the towers were able to pass the costs of the demolition onto others rather than paying it themselves.

There were two chief arguments used. The first was a design argument that said that the buildings couldn’t be adequately retrofitted but this case was expertly dismantled by architect (and Common Weal Director) Malcolm Fraser. The second was a financial one that said that it was cheaper to demolish and rebuild than to retrofit.

This, again, was refuted on the grounds that the demolition plan didn’t take into account of the environmental impact of the resources used to rebuild.

Many of our building materials are carbon intensive – particularly concrete and steel (alternatives to both are coming online but aren’t quite there yet) – thus whenever we have a building in place, we have to consider the “embodied carbon” involved. Once a block of concrete is cast and all of the carbon it emits during its manufacture, transport and curing has been emitted then it doesn’t emit any more. However, grinding it into dust, throwing it into landfill and replacing it with a new block of concrete will result in more carbon emissions. Wood is kind of the opposite but still worth mentioning. Wood absorbs carbon when it grows but emits it when it rots or is burned as waste. Either way, when a building material is replaced with a new one, the “embodied carbon” price has to be paid. Obviously, therefore, to avoid more emissions than necessary, building materials should be used for as long as possible, should be RE-used when possible and replaced as infrequently as possible.

The problem is that we don’t have an effective carbon or externality tax in the UK that would price in such an effect. If it’s cheaper to tear down and building and let the planet pay the cost in emissions, that’s what Capitalism doesn’t just suggest should happen but actively demands must happen.

There is another aspect to the financial case though that has nothing to do with the carbon aspect and that is VAT. Right now in the UK if you want to buy materials for a new building, you’ll pay a reduced VAT rate of 5% but if you want to buy the same materials to retrofit that building you’ll pay 20% VAT. So there is a strong incentive for buildings to be torn down and replaced if that means qualifying for what amounts to a very large tax cut.

There are solutions to this. The obvious one would be to change VAT. In an era of climate emergency and in the absence of a full externality tax, the obvious solution would be a reversal of that situation to actively encourage retrofit over rebuild but most campaigners (like Fraser) would be content with at least an equal playing field.

Unfortunately, the UK Government isn’t moving very quickly in this field (though the previous Conservative government did temporarily cut VAT on some energy efficiency products) and while the Scottish Government is just as corralled by the volume developers who represent the companies who build many of the overpriced, cold and damp blocks of appreciating capital assets that some of us call “homes” but they do have the advantage of not having to worry much about VAT given that it’s a reserved tax. There are devolved options out there though.

Back in 2022, I was working with Malcolm on an idea to write up a proposal for a devolved tax that could try to level the VAT distinction between repair and rebuild. The Scottish Government couldn’t (or couldn’t cheaply) offer a tax rebate to subsidise the VAT on retrofits and couldn’t adjust the reserved tax directly and, as with the problems they have with bringing in a national land tax, they’d find it difficult to bring in a national construction tax. But the Scottish Government DOES have the power to bring in a local levy controlled by Local Authorities. Our idea then was that Scotland could bring in a Demolition Tax to intentionally raise the price of incidents like Wyndford tower to the point that repair and retrofit would be cheaper than the alternative.

But then, we were beaten to the punch by the Chartered Institute of Building who published essentially an identical proposal and did it likely better than I would have so I’ve been more than happy to endorse their work. I’m also pleased to note that the Scottish Greens have done likewise though I think they are currently the only party in Parliament to have done so. I’d like to know the reasoning behind why the other parties haven’t, if they’d like to tell me.

The devil in such a tax is in the detail though. If it’s set too low then it won’t discourage demolitions. If it’s set based on tax arguments like the infamous “Laffer Curve” so beloved by politicians who want to use it as a misguided excuse to cut taxes then it it’ll end up being “optimised” to maximise tax revenue. A properly set Demolition Tax should, in theory, eliminate all but the most essential of demolitions (demolitions on safety and disaster grounds should probably be exempt) and thus shouldn’t actually raise any tax revenue at all. Of course, this also raises the prospect of an owner letting their property simply decay rather either repair OR replace it – something that can be fixed by enforcing already extant regulations around maintaining buildings in good order along with early use of Local Authority powers to compulsory purchase property from landlords who fail in their responsibilities.

There’s an important point in this story that goes beyond the material and the engineering and that’s the lack of social planning and protection of communities. The Wyndford tower has taken 600 homes and will turn them into just 400 homes. Even if every former resident was offered a guaranteed place in one of the new homes (they weren’t) at a price they could afford there wouldn’t be enough houses for all of them. This demolition represents yet another dispersal of a community in a city that has basically defined itself by dispersal of communities for several generations now. Each one, even when they’ve created objectively better living conditions than what was there before (the New Towns project was a decidedly mixed bag in that regard – a subject for another time), that loss of community, of dislocation from friends and family, was often profound and itself generational in its impact. This is why one of our Big Ideas isn’t “Housing” but “Place”, because while four walls and a roof are a necessary component of living well in the modern world, it’s not a sufficient one and where it is and what it is connected to is important. Decidedly unmodern gendered language aside, John Donne was correct to say:

“No man is an Iland, intire of it selfe; every man is a peece of the Continent, a part of the maine; if a Clod bee washed away by the Sea, Europe is the lesse…”

— John Donne, Devotions upon Emergent Occasions, 1624

But if the continent of community is diminished when but a single part is torn away, what happens when every part is blown down and scattered to the winds?

Every decision that led to those towers coming down last week was made either uncaring of the community who called them home or despite those cares. Where the people were considered, it was done on an individualistic basis, as if each island would be fine if it was picked up and placed anywhere else.

I fear that lesson will be missed again. I see little evidence that the replacement buildings will endure for centuries longer than the less than four score and ten that their predecessor will. They’re certainly not being built with the kind of resource-preserving Circular Economy principles that we MUST be using in our constructions during a climate emergency. Otherwise, likely within the lifetime of some of those new residents, I fear that someone will be writing another eulogy similar to this one.

Image Credit: Ian Dick

Where Next For Grangemouth?

“Nobody wants to spend money to build a more resilient city because nobody owns the risk.” – Jeff Goodell

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The Scottish Government risks throwing good money after bad in its latest promise to take £25 million from the remaining ScotWind fund and use it to prop up Grangemouth.
This is in addition to the more than £100mn already earmarked between the Scottish and UK Governments amongst which is “Project Willow” – a plan that was launched to reduce the carbon footprint of the refinery and to find uses for it beyond fossil fuels. [Edit: Since writing this, the UK Government has also matched the Scottish Government’s £25mn pledge with an additional £200mn – but it’s for the same schemes so this article is for them now too]

That plan, however, was upended when owners Ineos decided to close down the plant because in this country we let billionaires decide the future of nationally strategic assets instead of our democratic governments.

I’ve written before about my position on a lot of this. I’m a full advocate for a Just Transition for workers who are facing losing their job as their workplace reaches its entirely foreseen and entirely necessary closure or reformation in light of the climate emergency. What I’m appalled about is politicians using that idea of a Just Transition as an excuse to do anything about that transition. As I wrote last week, “No ban without a plan” is an entirely justifiable slogan – except for the people who were supposed to come up with the plan.

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Scotland: We Have Rockets Too

“Sometimes I wanted to peel away all of my skin and find a different me underneath.” – Francesca Lia Block

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A juxtaposition of Scotland (Loch Leven) and the USA (Lake Mead) and the slogan "we share beautiful places"

Imagine the pitch. You’ve been instructed by Angus Robertson’s office to cut together a bunch of stock footage for a video showcasing Scotland and [don’t look at the fascism] the USA. Quite artistically, the images are juxtaposed to show the common interests between our two [ignore the ethnic cleansing] nations. For the scene to illustrate the line “we share beautiful places”, what images do you think would show Scotland and the US at their best [Hail King Musk and Viceroy Trump]?
The Scottish Government chose the two above.

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We Need a Ban, So Where’s the Plan?

“A good traveller has no fixed plans and is not intent on arriving.” – Lao Tzu

This blog post previously appeared in The National as part of Common Weal’s In Common newsletter.
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It has been unsettling to watch Scottish politicians line up behind Unite the Union’s “No ban without a plan” campaign to keep Scottish oil fields flowing. I understand Unite’s position on this. They don’t want to see their workers harmed during the largest economic transition Scotland needs to undertake since the oil fields opened. They’ve been promised a “Just Transition” for those workers. And it hasn’t been delivered. The politicians signing up to the “no ban” pledge are the very people who should have come up with “the plan”. They not only didn’t, many have spent their time actively pushing against those who have tried to instead even as news breaks that many of those workers at Grangemouth will be losing their jobs anyway – casualties of being pointed at for headlines but never being heard.

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The Scottish and UK Governments are both wrong on DRS

“This book was written using 100% recycled words.” – Terry Pratchett

This blog post previously appeared in The National as part of Common Weal’s In Common newsletter.
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a green traffic light sitting next to a store

Both the Scottish and UK Governments are wrong on Deposit Return Schemes.
The DRS is back in the news now that Keir Starmer – in yet another show of policy innovation – has decided to copy/paste the previous Conservative Government’s plan for a deposit return scheme – the proposal where you pay a small deposit when you buy things like drinks and receive the money back when you return the packaging to a deposit return machine (sometimes known as a “reverse vending machine”). His plan includes the previous plan to exclude glass from the scheme and he has refused to allow an exemption to the Internal Markets Act that would allow Scotland to both include glass and to introduce the scheme at all without having to wait for the UK to do it.

It really is impressive to me how the UK can be so backwards that it is utterly unable to bring in a circular economy scheme that is already near-ubiquitous across central Europe (and used to be common in Scotland if you’re old enough to remember Barr’s ‘gless cheques’ before they ended their scheme in 2015) and utterly baffling how vulnerable we are to lobbying by companies who want to keep dumping the costs of their pollution onto consumers and the environment. I’ve told this story many times but I remember being in an informal roundtable in Holyrood in the early days of the planning for the Scottish scheme and a representative from a major supermarket and a representative from a major multinational drinks company both argued against the concept of DRS. Both went a bit more silent when I mentioned that in my previous holiday to Prague I had personally deposited a drinks bottle made by the latter into the DRS machine hosted by the former. If they can do it in one country, why not another? As I say – it was never about “could”, but about “why should we, when we profit more by not doing it?”

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The Climate Climbdown

“If a pandemic can induce governments to take emergency actions, why can’t a climate breakdown that threatens to kill off the very life-support systems of the planet do the same? After this, there can be no more excuses for passivity.” – Andreas Malm

This blog post previously appeared in The National as part of Common Weal’s In Common newsletter.
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Scotland – once a nation that held itself up as a world leader in climate ambitions – has formally repealed important carbon emission targets in a vote that would have had unanimous support but for the abstention of the Greens.

The Scottish Government still holds that Scotland will be a “Net Zero” nation by 2045 but has yet to demonstrate how we will actually reach that goal, especially as interim targets like the 2030 target just repealed continue to be missed.

To be clear on why this vote took place, the Scottish Government put the target into actual legislation as a show of force on its climate ambitions. A “mere” government policy target could have simply been broken and forgotten about as is all too common amongst governments of all colours but once placed in law, the government would have been acting unlawfully if the target was missed.

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The Shape Of Solar Scotland – Part II

“In a time in which Communist regimes have been rightfully discredited and yet alternatives to neoliberal capitalist societies are unwisely dismissed, I defend the fundamental claim of Marxist theory: there must be countervailing forces that defend people’s needs against the brutality of profit driven capitalism.” – Cornel West

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A year ago this month I told the story of a new renewables development that had been planned for next to my village and how it put me in the very unexpected position of actively opposing something that most would expect me to have been wildly in favour of. A 100MW solar farm, plus another 100MW worth of battery capacity, worth around £150 million that would produce more power than this village could use ten times over. At the time of its initial proposal it would have been the largest solar farm not just in Scotland but in the entire UK (though since then, several larger projects have been proposed – I’ll come back to that in a bit).

My objection has never been about the renewables themselves – we need more in general and we really need more solar power in particular to balance a grid that is a little too tilted towards wind power – but it has been about control and who benefits from a project that would, in effect, turn a semi-rural Clydesdale village into an industrial estate power station with some houses on the edge. We do now have a few updates, courtesy of a meeting facilitated between the company and the local residents association (the unelected body we have representing the village because we don’t even have an elected Community Council here, never mind proper European-style municipal government) and held in the office of our constituency MSP and Cabinet Secretary for Energy and Net Zero Màiri McAllan. I should say that I, personally, wasn’t at this meeting (and neither was Màiri herself as she’s on parental leave) and only found out that it happened at all when the association published the minutes of the meeting on the village Facebook page almost a month after the fact.

My main objection to the project has never been about the renewables themselves but about place, ownership and benefit.

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How Not To Dispose Of Disposable Cups

If it can’t be reduced –
If it can’t be reduced
Reused, repaired – REUSED REPAIRED
Rebuilt, refurbished, refinished, resold
Recycled or composted – OR COMPOSTED
Then it should be – THEN IT SHOULD BE
Restricted, redesigned – RESTRICTED
REDESIGNED or removed – REMOVED!
From production – FROM PRODUCTION
– Pete Seeger

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The Scottish Government still doesn’t understand what a Circular Economy is or how to bring the public with them as they implement it. This has been made clear by their latest ad hoc and misjudged approach to dealing with disposable cups. Their consultation on the levy has been launched here and Common Weal will get our response in in due course, please make sure your voice is heard too.

The proposal shouldn’t be as contentious as this and I should shouldn’t be on the side of fighting it – especially as I both agree with and support the goal behind the policy; to reduce resource use and waste produced by our single-use consumerism.

The policy as it stands, a 25p levy on disposable cups purchased as part of a takeaway drinks order, though risks seeing people as consumers to be punished into doing the “right thing” even as producers are allowed to make it impossible to make the right choice.

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Extracting Oil and Profits

“No idea is above scrutiny and no people are beneath dignity.” – Maajid Nawaz

The following are two short articles I had published last week. The first, on Foreign Direct Investment, appeared in The Herald and the second, on Ed Milliband ending oil licences, appeared in The National.

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Scotland must drop its addiction to foreign investment

Ian McConnell’s highlighting of Scotland’s continued dependency on “foreign direct investment” offers a welcome opportunity to once again explain why the policy – supported by multiple Scottish Governments – is acting to the detriment of the Scottish economy.

All investment demands an expectation of a return on that investment and the fact that the investment is coming from outwith Scotland obviously means that those returns must leave via the same route. Scottish Government figures show that since the start of devolution, more than a quarter of a trillion pounds has been net extracted from Scotland and that around £10 billion was extracted from Scotland in the most recent year we have data for. Further analysis by Common Weal shows that as a proportion of our economy, this is the highest rate of profit extraction of any of our peer nations with the exception of a handful of micro-states and tax havens as well as higher than any of the World Bank’s income groups, including the poorest and most indebted nations. Scotland, in that sense, runs an economy with European levels of economic development but with West African levels of foreign exploitation and profit extraction.

This isn’t just an issue of money. Companies that are mobile enough to invest in Scotland are mobile enough to remove that investment unless they get the political kickbacks they want (see the discussions around Scotland’s Green Freeports, for example. Or Grangemouth.) and thus present a direct intervention against our democracy. They also tend to more weakly embed jobs and skills in the economy and are more willing to leave workers on the scrapheap if some other nation decides to attract their “investments” instead of us.

The Scottish Government should drop its addition to FDI and should concentrate on building up domestic sources of investment (starting with reforms to the Scottish National Investment Bank) and should focus not on quick “GDP Growth” and accelerations of shareholder profits but on sustainable development not just of companies but of their workforces and the wellbeing of the communities in which they live.

Ed Miliband’s stance is welcome but it does not go far enough

The news that Ed Milliband has halted new oil and gas licences is a very welcome change of direction for UK politics and effectively brings the UK Government into line with what was the Scottish Government’s policy on new oil and gas in January last year. As it stands now though, the Scottish Government has backtracked on their opposition to new oil and has been extremely vague about the conditions under which it would support a ban. To be clear, it is one thing to state that you’d only support a licence if environmental checkpoints are met but if you don’t state what those checkpoints are or what a properly compliant oil licence would look like, then all you are doing is deferring responsibility for the decision either way.

The Supreme Court’s ruling last month that oil extraction must fully account for all oil emissions is significant here. Until then, a case was being built that a “Net Zero” oil rig would be one that transported workers to and from it without burning fossil fuels (Scope 1 emissions) and was powered by renewable energy instead of a fossil fuel power plant (Scope 2 emissions) but that basically washed its hands of whatever happened to the oil it extracted (Scope 3 emissions). If you bought some of their oil and burned it, that wasn’t their problem. This can no longer be the case and so brings into question the very possibility of a compliant oil rig. The Scottish Government should outright admit that either their support for oil must be ditched, or their remaining climate policies must.

As welcome as Milliband’s decision is, it likely doesn’t go far enough. He’s equally stated that he won’t revoke licences already granted but not yet being exploited nor will he shut down oil wells that are still economically producing oil. Half a decade ago in 2019, Friends of the Earth’s “Sea Change” report found that if the world is to meet its collective climate targets then not only must new licences be blocked and unexploited licences revoked, at least 20% of the economic oil in wells that are currently open must stay in the ground.

A Just Transition for workers is vital and I sympathise with Unite’s “no ban without a plan” slogan, but I fear that the politicians will stick to the easy option of “no ban” rather than what they should do, which is to bring those workers into the room immediately and help them design the plan that grants them the Just Transition they want and deserve before another political deferral forces a chaotic collapse of the oil industry and sees oil workers dumped just like their predecessors in the coal industry were.

TCG Logo 2019

Selling The Earth

“Privatize everything, privatize the sea and the sky, privatize the sea and the sky, privatize justice and the law, privatize the passing cloud, privatize the dream, especially if it’s during the day and open eyed. And finally, for the embellishment of so many privatizations, privatize the States, surrender once and for all their exploitation to private companies through international share offering. There lies the salvation of the world…” – José de Sousa Saramago

(This blog post previously appeared in The National. You can throw me a tip to support this blog here.)

Private

“Natural capital is our geology, soil, air, water, plants and animals.”

Remember that definition, for it is the one the Scottish Government uses to introduce their “Market Framework for Natural Capital”, which they are consulting on at the moment.

Not content with their previous attempts to privatise nature in Scotland (see their “PFI For Trees” scandal last year and their “Green Investment Portfolio” a few years before that), the Government now wants to expand the remit of potential privatisation to all aspects of Natural Capital:- our geology, soil, air, water, plants and animals.

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