Nicola Sturgeon has taken just minutes to fire her anger at the Government over the mini budget announcements this morning. The First Minister of Scotland said following the statement to the House of Commons even many of the country’s “super wealthy” would be “appalled by the moral bankruptcy of the Tories”.
Chancellor Kwasi Kwarteng took to the despatch box this morning to lay out his economic package for the nation just weeks after Liz Truss’s new administration took over.
He vowed to scrap the highest rate of income tax for top earners, and reduced the basic rate to 19 percent – which Scottish Tories are calling for the devolved Government to follow suit.
The rise in national insurance proposed under Boris Johnson has also been cancelled, which the Treasury said would benefit 2.3 million people in Scotland.
His announcements came as the UK faces massive inflation and a squeezed cost of living for many, on the backdrop of an energy crisis and a war in Europe.
But Ms Sturgeon took issue with the Chancellor’s focus on handing money back to already high earners while many working families struggle.
In a tweet, the First Minister said that “the super wealthy laughing all the way to the actual bank (though I suspect many of them will also be appalled by the moral bankruptcy of the Tories) while increasing numbers of the rest relying on food banks”.
She added that this was “all thanks to the incompetence and recklessness” of the UK Government.
Mr Kwarteng also announced that he would be scrapping the cap on bankers’ bonuses in a bid to drive growth, as well as implementing a plan to make 120,000 more people on universal credit take steps to secure work by threatening to reduce their benefits.
He also made reference to the earlier announcement of a two-year freeze on household energy bills.
The Chancellor said while an increase in jobs, wages and public funding “will not happen overnight”, the statement sent a clear signal “that growth is our priority”.
He said: “The fiscal strength of the UK Government has allowed thousands of businesses in Scotland to keep more of their own money to invest, innovate, and grow.”
Mr Kwarteng added: “In doing so, our growth plan sets the whole United Kingdom on the path for growth, building on the strength of our Union and releasing the enormous potential of this country.”
Scottish Secretary Alister Jack said the UK Government “is delivering for the people of Scotland when it really matters”.
Though income tax in Scotland is collected by HMRC, following a series of acts of devolution income tax rates are set by the Scottish Government. The tax is also paid to the Scottish Government.
Currently, Scotland has a minimum rate of 19 percent and a higher rate of 46 percent on earnings above £150,000 a year.
According to the Scottish Daily Express, critics and the Scottish Tories are now urging Ms Sturgeon’s administration to make a similar move on income tax rates.
More to follow…