Nicola Sturgeon: It would be wrong to follow 'disastrous' mini budget

The First Minister is describing the Chancellor's announcements on Friday as 'morally repugnant, fiscally damaging and reckless'.

Author: Selena JacksonPublished 26th Sep 2022

Scotland's First Minister has described No 10 plans to boost economic growth as a "catastrophic disaster", saying the Scottish Government following suit would be the "wrong thing to do".

Chancellor Kwasi Kwarteng announced a swathe of measures to tackle inflation and drive growth on Friday, including scrapping the top rate of income tax, cutting the basic rate to 19p in the pound and scrapping the cap on banker's bonuses.

But the markets have reacted negatively to the announcements, with sterling falling to its lowest level against the US dollar in history.

The Scottish Government came under pressure from some to follow the tax cutting plans of the UK Government, which Nicola Sturgeon appears determined to withstand.

She hinted on Friday that the Scottish Government would not follow the same route, but on Monday was more steadfast in her opposition.

'Morally repugnant, fiscally damaging and reckless'

"We'll take a sensible approach, which will be in stark contrast to the one we're seeing from the UK Government," she said on a visit to Graham's Family Dairy in Bridge of Allan, near Stirling.

"We have a situation right now where everybody bar the most tribal Tory supporters thinks what the Chancellor has done is morally repugnant, fiscally damaging and reckless.

"And yet somehow, there is an expectation that the Scottish Government should follow suit - that would be absolutely the wrong thing to do.

"So, we'll take sensible, careful decisions that are about helping those who need help most."

Asked for her response to the broader plans laid out by the Chancellor on Friday, the First Minister said: "The mini-budget was a catastrophic disaster that is playing out in real time before our eyes right now.

"The UK economy is in crisis, we're seeing sterling in freefall, we're seeing the cost of Government borrowing ratcheting up.

"We saw on Friday from the Chancellor policies that are, in my view, morally abhorrent, racking up borrowing that future generations will have to repay, not to invest in the overall wellbeing of the economy or help the majority, but to make a relatively small number of already rich people even richer - that's indefensible."

Ms Sturgeon went on to say that the policies are also proving to be "fiscally reckless", given the reaction from markets on Monday, predicting a potential increase in interest rates and cost of borrowing and a continuing issue with inflation.

"This Government, the UK Government, seems to have no idea what it is doing - the damage it is doing to the economy overall, and to the living standards of the majority, is deep and very, very serious."

Worries have been raised about the potential for people to migrate south of the border as a result of the tax cut, but the First Minister said the value of a country doesn't rest on income tax rates alone.

"The attractiveness of a country is not just about income tax rates, it's about the health of an economy overall, it's about the investment in our infrastructure, it's about the strength of our public services, it's about the social contract," she said.

She went on to say that those living in Scotland do not have to pay university tuition, elderly personal care costs or prescription charges.

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