Rescue plans don’t meet needs of Scots

Last week, the Chancellor of the Exchequer announced a range of measures to help stimulate the economy out of the Covid-19 crisis.

Many of these moves were welcomed by myself and my SNP colleagues, and I welcome the announcement as far as it goes.

However, the resounding noise coming from business is that it’s too little, too late.

I’ll start with where we agree.

The reduction in VAT to hospitality and tourism is welcome, if not overdue.

Bruce Crawford MSP has previously raised this issue with subsequent UK Chancellors, highlighting the benefits to the industry, which is a significant player in the local Stirling economy.

It’s a sure way to promote jobs and growth in the sector, encouraging people to eat out more instead of at home by making it more affordable to do so. Ignoring the fact that it should not have taken a pandemic crisis for UK Ministers to awaken to this, the reduction of VAT to five per cent for just six months doesn’t go far enough, and these businesses need a longer term commitment from the UK Government on this. Reduced VAT on businesses such as pubs, restaurants, cafes, and tourism venues needs to be the norm going forward.

Other efforts, such as covering up to £10 off a food bill on Mondays, Tuesdays, and Wednesdays in August to encourage people to eat out more, and therefore further stimulate this sector, whilst welcome, can only be praised so far.

As my colleague Alison Thewliss, the SNP’s Shadow Chancellor, pointed out, people who have really lost out due to this crisis and a decade of Tory austerity, are struggling to eat, never mind eat out.

Bruce Crawford and

I have hosted a number of virtual surgeries with business leaders in recent months, discussing the specific needs of businesses through the pandemic crisis.

One issue that has come up time and time again is that of self-employed people, or those listed as directors of limited companies, not getting any support out of the UK Government’s schemes.

This is a widespread issue and has caused real chaos to the lives of people whose income has been cut off completely due to stopping all trade during lockdown.

The UK Treasury is so clogged with cases such as these, that it took two months to respond to an urgent letter I sent on behalf of a constituent who was receiving no support whatsoever from them.

Unfortunately, nothing in the Chancellor’s statement committed to supporting people in this situation.

However, the biggest area where this statement falls short is the failure to extend the furlough scheme.

Sector-specific furloughing needs to continue if the government is serious about avoiding mass unemployment.

It is also the case that we need to see a much greater commitment to our further and higher education sector.

All additional money that has been announced by the Chancellor has been borrowed.

In these circumstances, Scotland does not have the legal power to borrow in order to invest in areas that are crying out for support. If the UK Government isn’t willing to commit the full support that Scotland needs, then they should devolve that power to the Scottish Parliament so that we can do so instead.

For many people this help is too little, too late