Nicola Sturgeon: Mini-budget is a disaster, it would be wrong to follow
The Scottish Prime Minister described plans no. 10 to revive economic growth as a “devastating disaster”, saying it would be “wrong” for the Scottish government to carry through.
Chancellor Quasi Quarteng on Friday announced measures to fight inflation and stimulate growth, including the abolition of the maximum tax rate, the lowering of the base rate for the pound to 19 pence and the lowering of the bonus ceiling. banking.
But markets reacted negatively to the announcements, with the pound sterling falling to an all-time low against the US dollar.
The Scottish government has come under pressure from some to follow the British government’s tax cut plans, which Nicola Sturgeon is determined to resist.
On Friday it indicated that the Scottish government would not follow the same course, but on Monday it was tougher in its opposition.
“We will take a reasonable approach, which will be the opposite of what we see from the UK government,” he told the PA news agency during a visit to Graham’s Family Dairy in Allen Bridge, near Stirling.
“Right now we have a situation where everyone, even the most indigenous Tory supporters, feels that what the Chancellor has done is morally repugnant, financially harmful and reckless.
“Yet the Scottish government should follow suit: it would be an absolutely wrong thing to do.
“Therefore, we will make wise and careful decisions that aim to help those who need them most.”
Asked about his reaction to the grand plans presented by the Chancellor on Friday, the Prime Minister said: “The mini budget was a catastrophic disaster that is happening in real time before our eyes right now.
“The British economy is in crisis, we are witnessing a free fall of the pound, we are increasing the cost of borrowing from the government.
“On Friday we saw the Chancellor’s policies, which I find morally repugnant, to borrow that future generations will pay off, not to invest in the general welfare of the economy or help the majority, but to make a small number of already wealthy people even more. rich – this is unforgivable.
Sturgeon said the policies are also proving to be “fiscally reckless”, measuring market reaction on Monday, predicting a potential rise in interest rates and a persistent problem with financial costs and inflation.
“This government, the UK government, has no idea what it is doing: it is hurting the economy as a whole and the standard of living for the majority is deeply and very, very bad.”
Concerns have been raised about people’s ability to migrate south of the border in the wake of tax cuts, but the Prime Minister said a country’s value isn’t just about income tax rates.
“The attractiveness of a country is not just a question of tax rates, it is the health of the economy as a whole, it is a question of investments in our infrastructure, it is the strength of our public services. it’s about the social contract, “she said.
He also added that those living in Scotland do not have to pay university fees, the cost of personal care for the elderly or prescription fees.
On Monday, the Treasury announced that the Chancellor would present a “medium-term financial plan” on November 23.
A statement from a Treasury spokesperson said: “Government ministers will announce supply-side development measures in October and early November, including improvements to planning systems, trade regulations, childcare. , immigration, agricultural productivity and digital infrastructure “. Changes are included.
“Next month, the Chancellor, under this program, will present regulatory reforms to maintain the global competitiveness of the UK financial services sector.
“Then he will prepare his medium-term financial plan on November 23rd.
“The budget plan will specify the government’s budget rules, including ensuring that debt in proportion to GDP decreases in the medium term.”