Scottish Government to launch emergency budget review in response to cost of living crisis
Nicola Sturgeon says it may be of a different nature to the Covid-19 pandemic but 'of a similar scale'
The Scottish Government's announced an emergency budget review for Scotland will take place in response to the growing cost-of-living crisis.
The First Minister chaired the country's Resilience Committee today to discuss urgent measures to reduce spiraling bills impacting people and businesses.
She said the emergency budget may be of a different nature to the Covid-19 pandemic but 'of a similar scale.'
Nicola Sturgeon said:
"It is clear that the UK currently faces a rapidly escalating emergency that goes beyond simply the cost of living and is now a more general cost-of-everything crisis," Ms Sturgeon said.
"In the absence of substantial and urgent action, this emergency will cause acute deprivation and suffering - bluntly, it will cost lives."
Scottish ministers have agreed an emergency budget review is needed to redirect additional resources to those most in need and to stimulate the economy.
The committee, which will meet weekly, said it would urgently consider all options within devolved powers to limit increases in costs and protect those most vulnerable.
Members said they would also provide further advice to households on using energy more efficiently and reducing consumption.
It's also financial assistance available to those most in need, mainly through ongoing work to extend eligibility for and increase the value of the Scottish Child Payment.
Meanwhile, the Scottish Government also renewed its call for "urgent and substantial action" from the UK Government in response to soaring costs.
It demanded several measures, including immediate doubling of the direct financial support already provided, with payments made by October, and urgent work on energy market reforms.
According to figures announced by the Scottish Government, it is estimated that for an out-of-work couple with two children, the payments already announced by the UK Government fall around ÂŁ1,600 short.
Scottish ministers also demanded a cancellation of the forthcoming increase in the energy price cap and an urgent introduction of an energy price cap for small and medium businesses.
Ms Sturgeon said:
"To illustrate the severity of the situation, the Scottish Government estimates that, even with current UK Government mitigations, at least 700,000 households in Scotland - 30% of all households - will be living in extreme fuel poverty by October.
"That number could be even higher, if the Ofgem price cap for October 2022 is above ÂŁ2,800.
"It is essential, therefore, that the response from government at every level is commensurate, in scale and speed, to the nature and magnitude of the emergency.
"In developing a response, governments must first and foremost address immediate need.
"We must all focus on supporting individuals, businesses and jobs by addressing the principal root causes of the problem."
She added:
"Scottish ministers are clear that the powers and resources needed to tackle this emergency on the scale required - access to borrowing, welfare, VAT on fuel, taxation of windfall profits, regulation of the energy market - lie with the UK Government.
"This is reflected in the actions we have proposed and set out today.
"At the same time, the Scottish Government will continue to do everything within our resources and powers to help those most affected."