The UK is heading for the biggest era of borrowing and tax cuts since the 1980s after Tory Chancellor Kwasi Kwarteng slashed corporate and personal tax rates for the very rich.
In a drastic, right-wing strategy to get the economy moving, the chancellor announced he would bring in a estimated £45 billion of tax cuts, mostly funded by borrowing.
Some of the staggering measures, like a reduction in income tax rates and in stamp duty paid on house sales, do not affect Scots directly because these are set separately in Holyrood.
But the so-called mini-budget presented to the Commons on Friday morning, which brings benefits mainly to the wealthy and big companies, will affect the economy in Scotland and how much Scots have in their pockets.
Here's the policies at a glance:
Tax Cuts
The chancellor brought forward the planned 1p cut in the basic rate of income tax that was due to be introduced in 2024, making good on Liz Truss's leadership campaign promise.
Controversially he also abolished the 45p top rate of income tax for high earners in England, , replacing it with a 40p rate.
It will help 660,000 people - among the richest in Britain. Instead of 45p they will pay 40p in every pound they earn over £150,000 a year.
Importantly, the cut to the basic rate, and the adjustment to the levels at which taxes are paid, do not affect Scottish tax payers directly.
The top rate in Scotland for earnings over £150,000 is 46 per cent and 41 per cent for earnings over £43,633.
Bands and rates for Income tax are usually set by the Scottish government in an annual budget in February, and higher earning Scots already pay proportionately more than equivalent earners in England.
Kwarteng 's tax cutting agenda will put pressure on SNP Finance Secretary John Swinney to match the cut or move further away from the rest of the UK.
Announcing a tax cut immediately increases speculation about Truss calling a snap general election to give herself and these radical policies a Downing Street mandate.
National Insurance
Kwasi Kwarteng announced yesterday that the National Insurance hike imposed by former Chancellor Rishi Sunak would be scrapped on November 6.
The 1.25 percentage point increase was to pay for social care and dealing with the NHS backlog in England with additional cash coming to the Scottish government.
It means the NI rate will drop from 13.25 per cent to 12 per cent. The National Insurance rates are a reserved Westminster power and will apply to Scotland too.
The Treasury said 2.3 million Scottish workers to get a National Insurance cut worth £285 a year. The Scottish Government receives more than £600 million as a result of tax cuts elsewhere in the UK.
Universal Credit
Part-time workers could have their benefits cuts if they don't look for more work under Liz Truss's plan to get "Britain working again".
The Tory Chancellor announced, during his statement, a rise in the number of hours a week on the national living wage people will have to work in order to still claim Universal Credit.
The current threshold is nine hours a week on the national living wage, however it will rise to 12 hours from Monday. Kwarteng announced earlier it will rise again to 15 hours per week.
Those claiming could have their benefits sanctioned if they fail to take active steps to boost their income.
Corporation tax
Businesses across the United Kingdom were set to see their tax bill increase by six per cent in April next year, however that now won't go ahead.
According to the latest forecasts the rise was due to take in over £17billion into the economy by 2025. Truss has insisted that she wants lower taxes in order to fuel growth in the economy. Again corporation tax applies across the whole UK.
The comes after the Bank of England increased interest rates to 2.25 per cent and predicted the UK economy is already in a recession.
The chancellor said he would offer tax and national insurance incentives for new jobs in enterprise zones across England, and he offered Scottish and Welsh government co-operation if they wanted to follow the plan.
Kwarteng said that alcohol duty will freeze from next year, saving 7p on a pint of beer and welcomed by Scots whisky producers.
Accountancy firm Moore UK responded by saying: “On average, this will save the consumer 7p on a pint of beer, 4p on a pint of cider, 38p on a bottle of wine, & £1.35 on a bottle of spirits.”
Energy costs
The chancellor confirmed that the energy cap on bills for households and businesses this winter will cost £60 billion
Kwarteng told MPs that the Government is cutting household energy bills by an expected £1,400 this year while millions of the most vulnerable households will receive additional payments, taking their total savings this year to £2,200.
Once again this will be paid for mostly by borrowing and will apply across the UK.
Green levies
Throughout the bitter Conservative leadership race Liz Truss announced she would scrap green levies which she said would save households £150.
The charge is seen as vital by some to help combat the move towards achieving net zero as it fund schemes like insulation and renewable energy. Kwarteng also announced it would be scrapped during his announcement to the Commons.
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