THE UK Government has told Glasgow City Council there are “fundamental problems” with introducing a universal basic income after councillors called for a scheme to be funded.

A motion put forward by City Treasurer Ricky Bell, which urged the UK and Scottish Governments to fund and commission a trial, was passed at October’s full council meeting.

Mr Bell said a UBI – which he described as a modest, unconditional payment, given to every citizen on a regular basis – would be the “most effective way to reduce poverty”.

But in response to the request, a letter from HM Treasury, on behalf of Chancellor Rishi Sunak, states there are problems with the realities of a UBI.

“A flat rate UBI would not take into account people’s circumstances, and the additional needs and costs faced by some individuals,” the letter adds. “Therefore, it would not target support where it is most needed.”

The Treasury said, during the Covid-19 pandemic, alternative measures “to support people’s jobs and incomes, which can be delivered relatively quickly and effectively through existing benefits” have been implemented.

The letter added while the Department for Work and Pensions and HM Revenue and Customs are experiencing “unprecedented demand”, the “safety and stability” of the existing benefit and tax systems have been prioritised.

Mr Bell told councillors how a feasibility study, carried out by four Scottish councils, including Glasgow, concluded a trial would be “desirable” but could not be delivered in the current devolved settlement as the necessary tax powers lie with the UK Government.

The Treasury’s letter said: “The Government is committed to helping families get through this crisis.

“It is right that we look to do everything we can to support people during this difficult time, with the state acting as a safety net for those who need it.

“That is why we have announced a significant package of welfare measures to support those who need it most, including a £20 per week increase to the Universal Credit standard allowance and increasing local housing allowance rates for Universal Credit and Housing Benefit claimants so that it covers the cheapest third of local rents.”