Follow us and ‘turbocharge’ economy, PM urges Nicola

LIZ Truss has urged Nicola Sturgeon to follow her tax cuts to ‘turbocharge’ Scotland’s economy.

The Prime Minister made an offer to work with the First Minister on growing the economy by cutting taxes.

Her comments came as Scottish Tory leader Douglas Ross yesterday admitted the economic turmoil is an ‘absolutely huge concern’, particularly for homeowners.

But he insisted he still has confidence in Miss Truss and Chancellor Kwasi Kwarteng.

Last Friday, Mr Kwarteng announced a mini-Budget which featured major tax changes, including abolition of the 45p top rate of income tax and a 1p reduction in the 20p basic rate in England.

But income tax powers are devolved to Holyrood and Miss Sturgeon yesterday said she will not emulate the measures.

It raises the prospect of a huge tax gap, with everyone earning more than £14,732 paying higher taxes in Scotland than the rest of the UK.

Speaking to BBC Scotland ahead of the Conservative conference in Birmingham, which begins on Sunday, Miss Truss said: ‘I am very keen to work with Nicola Sturgeon to make sure we grow the Scottish economy.

‘Scotland is a country that has fantastic entrepreneurs, fantastic exports. I believe that by improving infrastructure, by reducing taxes, we can really turbocharge the Scottish economy.

‘I’m keen to work with Nicola Sturgeon on that.’

She also offered to work with the First Minister on reintroducing nuclear power in Scotland and expanding North Sea oil and gas, despite the SNP’s opposition to both measures. Miss Truss said: ‘What I want to do is work with Nicola Sturgeon to deal with our energy crisis.

‘That is about making sure we are producing more homegrown energy.

‘I’m keen to use more of the resources in the North Sea, also see more nuclear power stations built across the country, including in Scotland, and I’m very keen to talk to Nicola Sturgeon about that because I think it will help us make sure we have long-term energy security – that alongside wind power in Scotland we also have nuclear power in Scotland.’

Speaking to journalists at Holyrood yesterday, Mr Ross said ‘we can’t ignore’ the response of the markets to last Friday’s announcements.

He added: ‘It’s an absolutely huge concern. I’m a mortgage-payer like the vast majority of people here in Scotland and across the UK.

‘I think it’s right that, in terms of tax reductions, we see as many people – from lower earners through the tax system – paying less tax so they have more of their own money to spend in local economies supporting businesses.

‘But that is being offset at the moment by the increasing interest charges, and people are struggling.’

Asked if he had confidence in Mr Kwarteng and Miss Truss, Mr Ross said: ‘Yes, I have confidence that the Chancellor and the Prime Minister are doing everything they can to respond to the reaction we have seen from the Bank of England and the markets.’

At First Minister’s Questions yesterday, Miss Sturgeon described last week’s mini-Budget as ‘morally abhorrent and economically disastrous’.

She condemned ‘tax cuts for the richest’, adding: ‘For the avoidance of doubt, we will not emulate those policies.’

Following Miss Truss’s defence of her plans yesterday, Miss Sturgeon said: ‘I was – as many, many people were yesterday – critical of the fact that the Prime Minister was missing in action.

‘But having heard her this morning and watched the market reaction as she spoke, perhaps we were all better off when she was missing in action rather than when she was actually out talking about the disaster she has inflicted on this country.’

‘An absolutely huge concern’