SNP leader John Swinney has issued a statement in response to Prime Minister Keir Starmer saying that his Labour government’s first Budget will be “painful”.
The Scottish First Minister highlighted how, before the General Election, warnings about how Labour’s plans for government would require cuts were dismissed – only to now be proven correct.
“Throughout the election I warned about the huge financial pressure in public services and called for significant new investment from the UK Government,” Swinney said.
“I was told there would be no austerity under Labour. Well here it is.
“Scotland will be affected by UK decisions.”
Other Scottish Government figures have also hit out at the Labour Prime Minister’s warning, drawing specific attention to the cut to the Winter Fuel Payment.
Last month, Chancellor Rachel Reeves confirmed that the benefit would be made means-tested, a decision which cut an estimated £140-160 million from the funds expected to flow to the Scottish Government.
Speaking on Tuesday, Starmer defended the decision, saying it was a “difficult trade off, and there will be more to come”.
Scottish Social Care Minister Maree Todd highlighted how Starmer had begun his speech highlighting how it had been “sunshine, no wind, no rain” at Downing Street.
“Cold, wet and windy in the Highlands,” Todd, who represents Caithness, Sutherland and Ross, said. “No wonder the government in London aren’t focused on fuel poverty.
“My constituents already pay more to heat their homes and Labour are making it worse. Today we’re indoors, heating on.”
Pete Wishart, the SNP’s depute leader at Westminster, said that Starmer planned to follow “Tory spending plans and continu[e] with Tory austerity”.
Peter Kelly, the chief executive of the Poverty Alliance, said that Starmer could use the UK Government’s tax powers, challenging the Prime Minister’s claim that he had “no other choice” but to impose painful cuts.
“The Prime Minister might be correct about the current state of the public finances, but people living on low incomes cannot again pay the price for this neglect. There’s no justification for a lack of urgent action to tackle the injustice of poverty,” Kelly said.
“We are one of the wealthiest countries in the world and that collective abundance has grown massively over the decades. The Prime Minister can use powers over tax and investment to unlock that wealth, and build a better future for all of us – especially for people who are suffering now and desperately need a foundation to build a life beyond poverty.”
Professor Danny Blanchflower, an expert in economics and former Bank of England monetary policy committee member, said that Labour were "just slashing again which failed last time".
In response to a user on social media saying that Labour had gone to bankers and financial giants instead of economists, Blanchflower said: "I don’t know of any academic economists they have spoken with, certainly not me."
Another economist, Professor Richard Murphy, argued that there is "literally no need at all for Labour to deliver a painful budget in October".
He went on: "There is a massive capacity to increase taxes on wealth. If Labour wanted to borrow they could. And there are people who want good work ...
"Starmer is worse than the Tories. They at least admitted to their pleasure at imposing austerity. He pretends he has no choice but do it when that’s completely untrue.
"He’s choosing to undertax wealth, under deliver services, and over deliver misery."
