BORIS Johnson must announce an emergency budget and commit to devolving more financial powers to help secure Scotland’s recovery from coronavirus, the SNP has said.
In a letter to the Prime Minister ahead of a major speech he is to give today, Ian Blackford said the powers requested by the Scottish Government last week were the “essential key to Scotland’s economic recovery”.
He warned failing to deliver them could result in redundancies, business closures, budget cuts, and prolonged damage to Scotland’s economy.
Without them the Scottish Parliament will be left tackling this unprecedented crisis with one hand tied behind its back
Last week Finance Secretary Kate Forbes wrote to the UK Government seeking the ability to reallocate capital underspend on day-to-day spending, more borrowing powers with extended repayment periods, and more flexibility on drawing down reserve money.
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SNP Westminster leader Blackford called for an emergency UK budget next month designed to protect people’s jobs and incomes – echoing calls from Nicola Sturgeon for an £80 billion stimulus programme and an employment guarantee for young people.
“It is crucial that Boris Johnson announces an emergency budget and makes a clear commitment to devolve the financial powers needed to secure a strong recovery from coronavirus in Scotland,” he said.
“Without them the Scottish Parliament will be left tackling this unprecedented crisis with one hand tied behind its back ... Just as Scotland has had its own tailored response to the health pandemic, the Scottish Parliament must have the full powers that are necessary to shape our own economic response – so we can deliver a comprehensive recovery package that meets Scotland’s specific needs.
“Scotland can make different choices to protect jobs, strengthen our economy and build a fairer society – but only if we have the powers and funds needed for an investment-led recovery.”
He added: “With the normal powers of an independent country Scotland would be able to make the most of historically low interest rates to protect jobs and boost the economy – just as other countries are doing around the world.”
If Boris Johnson is serious about resetting his premiership and securing a strong recover, devolving these crucial powers are an integral first step for Scotland
He went on: “A UK Government investment plan which is solely designed, directed and dictated by the Treasury in London can’t and won’t meet Scotland’s specific needs. The Scottish Parliament and Government are best placed to control and utilise additional investment powers to back our businesses and protect our people.
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“If Boris Johnson is serious about resetting his premiership and securing a strong recover, devolving these crucial powers are an integral first step for Scotland.”
Johnson has promised to launch a “Rooseveltian” public spending programme in a bid to help the UK recover from the “nightmare” of the coronavirus pandemic.
Ahead of today’s speech he pointed to the example of US president Franklin D Roosevelt, who kicked off the “New Deal” to bring America back from the brink of the Great Depression in the 1930s.
But he insisted the programme of public spending cuts imposed by ex-PM David Cameron “wasn’t actually austerity”. Johnson yesterday unveiled a package of investment for school buildings in England, and is expected to spell out further measures in a speech in Dudley today.
The move comes amid a wider attempt to reset the Government’s agenda, with the UK’s top civil servant Sir Mark Sedwill announcing his departure on Sunday night and the PM’s chief adviser Dominic Cummings vowing a “hard rain” will fall on Whitehall in the wake of the pandemic. Johnson is to consider the report from Scottish Government’s Economic Advisory Group, which called for an accelerated review of the Devolved Fiscal Framework.
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