Chancellor's Budget criticised by SNP - and Scottish Tory leader

Scotland's Finance Secretary has accused the Chancellor of a "betrayal of public services", after he unveiled a Budget that included another cut to national insurance.

Jeremy Hunt told workers the levy will be reduced by a further 2p from April, following a similar reduction in January.

The UK Treasury says the two cuts combined will leave 2.4 million workers across Scotland an average of £900 a year better off.

"Unsustainable tax cuts" at expense of public services

But Shona Robison, the Scottish Finance Secretary and Deputy First Minister, accused the Chancellor of putting "unsustainable" tax cuts ahead of investment in public services.

In the run-up to the Budget, Holyrood ministers had been calling for increased funding for capital projects.

While policies announced by the Chancellor will see an additional £295 million come to Scotland in Barnett consequentials, this is all money for day-to-day revenue spending - although Chief Secretary to the Treasury Laura Trott noted: "The Scottish Government have unlimited ability to be able to change that resource spending into capital spending, if they so wish."

Both she and Scottish Secretary Alister Jack said the UK Government had chosen to cut national insurance rather than income tax - which is devolved to Holyrood - so workers in Scotland benefit.

A budget "for the Union and benefitting the Union"

Mr Jack declared: "It's absolutely vital that we get a tax cut to everyone in the United Kingdom, and that tax cut has to come through national insurance because the Scottish Government, I don't believe would pass on the benefit to hard-working people in Scotland."

Ms Trott said it was a "Budget which is absolutely for the Union and benefiting the Union".

However Ms Robison hit back, and said: "Today's UK spring Budget is nothing short of a betrayal of public services across the UK."

With the Scottish Government having had to halt building work in the NHS and cut spending on affordable housing, the Finance Secretary added: "Our hope had been the Chancellor would have eased pressures on services, not least by providing more funding for capital.

Scottish Tory leader "disappointed" by extension of windfall tax

Meanwhile the Chancellor put himself on a collision course with Scottish Tory leader Douglas Ross, who has said he is "deeply disappointed" the windfall tax on oil and gas firms is being extended, branding the decision from Jeremy Hunt as a "step in the wrong direction".

Mr Ross spoke out after the UK Chancellor confirmed the levy would now remain in place until 2029.

The 35% surcharge on profits due to high energy prices had been scheduled to end in March 2028, but in his Budget statement Mr Hunt said: "Because the increase in energy prices caused by the Ukraine war is expected to last longer, so too will the sector's windfall profits.

"So I will extend the sunset on the Energy Profits Levy for an additional year to 2029, raising £1.5 billion."

The Scottish Conservative leader said: "The SNP and Labour have abandoned 100,000 Scottish workers by calling for the taps in the North Sea to be turned off now.

"Although the UK Government rightly oppose this reckless policy - and have granted new licences for continued production in the North Sea - the Budget announcement is a step in the wrong direction".

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