Nicola Sturgeon has warned the rich will be "laughing all the way to the bank" after the UK Government slashed taxes for the wealthy today.
The First Minister branded the mini-budget announced today by Kwasi Kwarteng, the new Chancellor, as "reckless" at a time growing numbers of Scots are struggling to pay bills.
The top rate of tax will be slashed from 45 to 40 per cent while corporation tax will remain at 19 per cent, with a planned hike scrapped. Paul Johnson, from the Institute for Fiscal Studies, called the Chancellor’s announcement the “biggest tax-cutting event since 1972”.
Kwarteng was heckled by opposition MPs as he also confirmed plans to get rid of the cap on bankers’ bonuses.
Sturgeon tweeted: "The super wealthy laughing all the way to the actual bank (tho 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 - all thanks to the incompetence and recklessness of this failed UK Government."
The SNP leader later said the Scottish Government - which holds income tax powers north of the Border - was unlikely to follow the aggressive cuts announced by Kwarteng.
“A UK Government ‘budget’ that benefits wealthiest over poor/middle income earners, tanks the pound, pushes up the cost of borrowing, and is castigated as reckless,” she said.
“And yet Tories will demand the Scottish Government blindly follows suit."
Roz Foyer, general secretary of the Scottish Trade Union Congress (STUC), said: "This wasn’t a budget. This was a bludgeoning to working people across Scotland.
"It’s the elites and the powerful that will be quaffing champagne tonight whilst the workers contemplate the household economics of turning their heating on.
"“The Chancellor has made it perfectly clear, it’s the city – not our communities – that needs to be rewarded. Tax cuts for the rich and the corporates whilst workers face a full-frontal assault on their working rights.
"This is no longer austerity. This is Thatcherism on steroids. An acceleration of free-market, trickle-down economics that deepens inequality and embeds social injustice throughout the country."
But Kwarteng's mini budget was backed by Alistair Jack, the Secretary of State for Scotland.
He said: "The Chancellor has set out an ambitious package of measures which will cut taxes and drive growth right across the UK. A strong economy is the best way to tackle the cost of living challenges we are all facing due to Russia’s invasion of Ukraine.
"Our ‘Plan for Growth’ will support households and businesses in Scotland, while driving economic growth to deliver jobs, investment and prosperity. The UK Government is delivering for the people of Scotland when it really matters."
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