Nicola Sturgeon has accused the UK Government of "repeating the mistakes of the past" and "reintroducing austerity" after Jeremy Hunt announced a raft of tax hikes and spending cuts.
The Tory Chancellor told MPs he was having to make tough choices to ensure a "shallower downturn" - despite the news that average household incomes will drop by seven per cent over the next two years.
The Office for Budget Responsibility has concluded the UK is now in recession and is facing an increase in unemployment. Hunt has set out a package of around £30 billion of spending cuts and £24bn in tax rises over the next five years.