The SNP has demanded that Kwasi Kwarteng resigns as Chancellor following reports the UK Government will not raise benefits in line with inflation.
Ian Blackford, the party's Westminster leader, claimed that Tory economic policies would leave "millions of families across the UK in deep distress". Kwarteng and Liz Truss announced a mini-budget last week which promised tax cuts for the richest funded by a massive rise in government borrowing.
It spooked the international financial markets and saw the value of the pound crash to a 40-year low against the dollar. The Chancellor is now reportedly preparing to reassure investors by announcing a dramatic reduction in government spending.
It comes after Kwarteng this week refused to give a cast-iron guarantee that welfare payments will rise in line with inflation.
Former chancellor Rishi Sunak had previously pledged that Universal Credit would be boosted next year to reflect the rising cost of living.
But Kwarteng said: "It's premature for me to come to a decision on that. But we are absolutely focused on making sure that the most vulnerable in our society are protected through what could be a challenging time."
The SNP has demanded the Chancellor commit at least to uprating benefits in line with inflation to protect households through the cost of living crisis.
Blackford said today: It’s time for this clueless Chancellor to pack his bags and go. "Alongside the Prime Minister, Kwasi Kwarteng have taken a wrecking ball to the UK’s finances – leaving millions of families across the UK in deep distress.
"Within days of taking office, we have once again seen the devastating consequences of Scotland being shackled to this outdated, corrupt Westminster system. People’s mortgages, pensions and savings are all being badly hit – and yet the Tories have no plan to fix it.
"Instead of trying to dodge accountability, the Chancellor must do the honourable thing and resign – and if he doesn’t he should be sacked."
Kirsty Blackman, SNP spokeswoman on welfare, said: "It seems the only people benefiting under Tory rule are the mega wealthy, with the Chancellor set to freeze benefits to fund massive tax cuts for the rich. They are making the rich richer at the expense of low and middle income families.
"The very least they should do is up rate benefits in line with inflation and commit to the triple lock on pensions - as they promised - to ensure those who are most vulnerable in this cost of living crisis get some of the financial support they need to heat their homes and put food on the table. If they do not, millions more will fall below, or further below, the poverty line."
Ian Murray, Labour's shadow Scottish secretary, called for Westminster to be recalled following the disastrous reaction to Kwarteng's budget.
He said: "The Tories are doubling down on their divisive, morally bankrupt budget with these shameful plans. They are handing tax cuts to the richest paid for by everyone else, like Robin Hood in reverse. We need to recall Parliament and undo this disastrous budget before it does any more damage."
The Record has asked the UK Government for comment.
To sign up to the Daily Record Politics newsletter, click here.
