The £5bn injection to help fix economic ills
Thumbs-up for Sunak plans to get country back to work
RISHI Sunak’s massive package of giveaways to get the country back to work was warmly welcomed in Scotland yesterday, with bosses praising the ‘unprecedented support’.
Economic experts have said they expect to see more from the Chancellor in the coming months as he seeks to get the UK’s economy moving.
The Chancellor’s plans came with a £800million Barnett consequentials boost, taking Scotland’s total in funding through the pandemic to £4.6 billion.
Scottish Chambers of Commerce chief executive Dr Liz Cameron welcomed the announcement, insisting this marked the ‘next step forward’ in ensuring economic recovery for Scotland.
She said: ‘This is essential if we are going to be able to prevent an unemployment crisis as well as meet ambitious low-carbon targets.
‘The £800million funding through the Barnett formula is a welcome boost to support Scottish business recovery. It is now up to the Scottish Government to work with business and target support where it is most needed – protecting jobs and ensuring young people can access training and support.’
Scotch Whisky Association chief executive Karen Betts praised the ‘unprecedented support’ for business as she said Mr Sunak had ‘once again risen to the challenge in the package of measures announced to help stimulate economic recovery’.
Miss Betts added: ‘It is very good to see measures that encourage people to visit pubs, bars and restaurants once again to socialise and to support those businesses – alongside a clear message from government that it is safe to enjoy a dram once again in a bar near you. Today’s announcements will also support Scotch whisky tourism and the reopening of Scotch whisky distillery visitor centres over the summer.’
Scottish Conservative leader Jackson Carlaw said the summer statement was clear evidence that the UK Government had helped provide an ‘enormous boost to our economy at the most desperate of times’.
And he challenged the Scottish Government to ‘put its money where its mouth is’, adding: ‘Right across Scotland businesses have adapted, revolutionised and worked their fingers to the bone to survive and ensure services can continue. Now the UK Government is stepping up to ensure that work doesn’t go to waste and our economy can bounce back in as strong a way as possible.
‘Now the SNP needs to do its bit to ensure Scotland doesn’t get left behind as the rest of the world gets back to business.’
However, the Scottish Government has argued that Mr Sunak’s funding pledge falls short of that needed to help protect jobs and kick-start the economy.
It had been calling for an £80billion package – which it believes is desperately needed – and pointed towards other European countries where it claims more support has been given.
Last night, the Fraser of Allander
Institute disputed this claim and warned officials not to compare, as the package announced by Mr Sunak would be followed by a further Budget in the autumn which is likely to address further problems as they arise.
In a statement, their experts said: ‘In any other time, the measures today would be seen as a major package of support, coming on the back of unprecedented emergency support during the lockdown. Most of them are also designed to impact now, with delivery being a key point.
‘The Chancellor may also be holding some firepower in reserve to see how the recovery takes shape over the next few months. So time will tell if it is enough but don’t rule out the Chancellor being back at the dispatch box announcing further stimulus measures in an autumn Budget.’
However, Finance Secretary Kate Forbes has warned that the pledge falls ‘well short of delivering for what is needed to boost the economy and protect jobs’.
She said: ‘There is no new capital spend, no extension to the furlough scheme for hard-hit sectors and no further support for households in financial difficulty.
‘A half-price meal out does not help those struggling to put food on the table.’