Warning storm clouds

Scotland’s politicians condemn the Budget amid warnings of new hardship, Alistair Grant reports

SCOTLAND’S Finance Secretary has warned the “storm clouds of austerity are on the horizon once again” following the UK Budget, despite receiving an additional £1.2 billion in funds.

Kate Forbes branded aspects of the tax and spending plans “extremely disappointing” and insisted they did not match Scotland’s ambitions.

Chancellor Rishi Sunak said Scotland will receive a £1.2bn boost as a result of his Budget and said the furlough and self-employment support schemes will be extended until the end of September.

There will also be a six-month extension to the £20 Universal Credit uplift, among other measures.

But in a statement, Ms Forbes said it was clear the Chancellor “has not matched Scotland’s ambition for economic recovery and supporting households”.

She said: “The extension of the furlough scheme and self-employed support will be a relief to many, and is something that the Scottish Government has repeatedly called for.

“However, it is extremely disappointing that the Chancellor has failed to reverse the cuts to Scotland’s capital budget and has refused to make the £20 uplift to Universal Credit permanent.

“The UK Government’s support for businesses and households is significantly less generous than what we have committed to here in

Scotland.

“We have provided certainty and stability to businesses by extending 100 per cent non-domestic rates relief for retail, hospitality, leisure and aviation businesses for 12 months.

“Today’s UK Budget fell significantly short of this, extending 100% relief for three months but only 66% for the remaining nine months for businesses in England.”

Ms Forbes said the Scottish Government has taken steps to “support household finances by compensating councils who choose to freeze council tax”.

She added: “We have also set out our five-year pipeline of infrastructure investment to inject confidence in our economy, but we’re doing that without any additional capital from the UK Government.

“In particular, we have chosen to prioritise substantial investment in affordable homes. We didn’t hear similar levels of ambition from the Chancellor.

“While there is some additional funding for Scotland, it was clear from the Chancellor’s statement that the storm clouds of austerity are on the horizon once again – with the OBR [Office for Budget Responsibility] highlighting that departmental spending is being cut by £15bn – a move that would be disastrous for our economic recovery, undermine our public services, and impact on the most vulnerable in our communities.”

Ms Forbes said she will be meeting with opposition parties in Scotland over the coming days ahead of the final stages of the Scottish Budget next week.

SNP Westminster leader Ian Blackford said the Budget marked “a return to Tory austerity cuts”. He insisted Mr Sunak had “failed to deliver the meaningful change and investment needed to build a fairer society”.

In a statement after the Budget announcement, Mr Blackford said: “The Tories are threatening Scotland’s recovery with a return to austerity cuts, an extreme Brexit, and a Budget that completely failed to deliver the meaningful change and investment needed to build a fairer society.

“The UK has suffered the worst economic slump of any major economy, UK unemployment is rising, and millions of families have seen their incomes slashed – but the Chancellor has added to this misery by imposing a public sector pay freeze, cliff-edge cuts to Universal Credit, and tax rises for millions of workers.”

Speaking in the Commons, he also accused Mr Sunak of undermining the Scottish Parliament and centralising resources and decision-making at Westminster.

He said: “It is a naked power grab to bypass the devolved parliaments and take control of funding over devolved areas.”

Scottish Tory leader Douglas Ross praised the Budget, describing it as delivering “vast economic support and investment to individuals, businesses and communities across Scotland”.

He added: “The Scottish Conservatives worked closely and constructively with the Chancellor in recent months. That has now positively delivered on many of our demands that will help Scotland’s economic recovery and continue to support those who need it most as restrictions continue.

“At every turn during the pandemic, the UK Government has stepped up to protect jobs and livelihoods in

Scotland.

“This Budget means that £13.3bn of additional support will have been given to the Scottish Government over the last two years.

“That’s before Uk-wide measures like the furlough scheme, support for the self-employed and billions in business loans are taken into account.

“This Budget confirms that this is a UK Conservative Government who are always going to step up and deliver the economic support to Scotland.

“It is absolutely imperative that we see the SNP Government do the same.

“All too often during the pandemic, the SNP have treated our businesses as an afterthought and failed to get funding out the door.”

Elsewhere, Scottish Labour leader Anas Sarwar said the Budget fell short.

He said: “This was not a Budget for rebuilding Britain.

“The UK has recorded the worst economic crisis of any major economy with millions of people in Scotland and across the country worried about their jobs and livelihoods. That is the direct result of years of Tory austerity.

“What people wanted to hear in this budget was a relentless focus on jobs, a plan to tackle the deep-rooted inequality in society, and a long-term plan for social care. It fell short.

“This is why the priority for both governments must be Covid recovery and uniting our country so that we can rebuild together.”

Scottish Liberal Democrat MP Alistair Carmichael branded it a “stand still” Budget.

He said: “There was a lot of hot air and warm words but the Chancellor has clearly put off the hard decisions for later in the year. He is postponing judgment on his intentions, but he can only postpone so long.”

Mr Carmichael added: “The Chancellor has presented a lot of half measures today.

“You cannot ‘half support’ people in need. Either you want to support people and support recovery fully, or you do not. The Chancellor is again leaving too many people out.”

Scottish Green co-leader Patrick Harvie said: “Rishi Sunak had no choice today but to invest in a recovery, but there is no leadership when it comes to the climate emergency.

“Across the world, countries are investing serious public money into a green recovery, in things like renewable energy, public transport and warm homes. That’s not what we’ve seen today. While I welcome that furlough and the £20 universal credit uplift have been extended, a fair recovery depends on more permanent solutions. Keeping corporation tax at the lowest rate in the G7 isn’t a good start.

“It would be unthinkable to return to an economy which relied on poor wages and insecure incomes, and that allowed far too many people to fall through the holes in the social security safety net.”

The Chancellor has clearly put off the hard decisions for later