THE SNP are demanding an urgent recall of Westminster to allow scrutiny of the UK Government’s “biggest, most reckless right-wing financial gambles in decades”.
Ian Blackford, the party’s Westminster leader, said the two-week conference recess for the House of Commons, which has just begun, cannot be justified with the mini-Budget unveiled on Friday triggering a “major financial crisis”.
In a letter to Prime Minister Liz Truss, he said: “The Chancellor had barely sat down following his statement when the damning verdicts began to unfold, with the pound plummeting, bond yields for borrowing soaring and now the real prospect of even sharper rises in interest rates and mounting mortgage costs.
“As a direct result of the reckless right-wing risk you and the Chancellor took yesterday, the economy is now spiralling further and faster into crisis.”
The biggest programme of tax cuts in 50 years unveiled by Kwasi Kwarteng has sparked an outcry, with one analysis showing “only the very richest” 5% of households will see their incomes grow as a result, while the rest will get poorer as the cost of living crisis continues.
Meanwhile, struggling households are trying to cope by taking measures such as pawning possessions, only living in one room, skipping meals and taking fewer baths and showers, charities have reported.
Kwarteng refused to allow independent forecasts for public finances to be published alongside his mini-Budget on Friday.
Blackford said: “The Prime Minister and her government have taken one of the biggest, most reckless, right wing financial gambles in decades and are dodging all scrutiny on the devastating chaos it has created. They cannot be allowed to hide.”
Yesterday, the Scottish Government pledged to continue a “fairer” approach to tax, as a UK Treasury Minister dismissed criticism of the mini-Budget as the “politics of envy”.
Chief Secretary to the Treasury Chris Philp told Times Radio: “We’re going to do what’s right. We’re going to get growth delivered. And we’re not going to sort of worry about the politics of envy, or the optics of it.”
Scottish Tory leader Douglas Ross has called for the SNP to match the UK Government’s “bold plans” and pass on the tax cuts, with income tax rates and bands decided by the Scottish Government.
But Richard Lochhead, the Scottish Government’s Fair Work Minister, said the Conservatives had brought forward a “Budget for the rich and for bankers” that would “provide cold comfort for millions of people in Scotland”.
Speaking at a Unite Scotland policy conference in Glasgow, he said it was a “Budget for the very few and not the many” which “reinforces inequality in one of the Western world’s most unequal societies”.
“So much for levelling up,” he said.
“Thankfully, income tax rates and bands are devolved here in Scotland and the Scottish Government will set out its tax policies in the Scottish Budget.
“We will continue to pursue our fairer and more progressive approach to taxation, which has protected low earners while raising additional revenues for public service.”
Scottish Labour leader Anas Sarwar told the conference that the UK’s new prime minister “would rather try a Margaret Thatcher tribute act across our country” than put “more money in the pockets of people who need help with their energy bills”.
Mubin Haq, chief executive of abrdn Financial Fairness Trust, which works to tackle financial problems, told the Sunday National the main winners in the mini-Budget were “those with the deepest pockets” and the Scottish Government should “definitely not” pass on the tax cuts for higher rate taxpayers.
He said that the expected increase in the block grant of around £600million from the Chancellor’s plans should instead be targeted at measures to help those who are “facing significant costs” as a result of the cost of living crisis.
“One of the staggering statistics is if you earn a million pounds, then your gain from [the Chancellor’s announcement] would have been £55,000,” he said.
“What our survey showed is 31% have reduced the number of baths or showers they have taken, 60% have avoided turning on the heating and a third of people have reduced using their cooker or oven.
“That’s what millions of families are experiencing around the country.”
SPEAKING on BBC Radio Scotland yesterday, Adam Stachura, head of policy and communications at charity Age Scotland, said: “Folks are telling us that they are living in one room of their home, that they are skipping meals, that they are just not wanting to use their heating systems, that they are actually terrified about the bills that will land on their mats in the coming months and this year.”
The Resolution Foundation said the mini-Budget will see the incomes of the wealthiest 5% grow by 2% next year, while the other 95% of the population will get poorer.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel