The SNP have described the Emergency Budget - the first by the Tory / Liberal coalition - as a "going too far, too fast" and warned that the UK Government's approach risks a double dip recession. 

 

Reacting to the Budget, SNP Finance Secretary John Swinney MSP said:

“The previous UK Government left the public finances in a mess.  But there is a real risk that, by accelerating deep spending cuts – going too far, too fast – the new UK Government will make things worse.

 

"Nurturing Scotland's recovery is the Scottish Government's priority, and this emergency UK Budget jeopardises that recovery.

“The package announced goes too far too fast and risks damaging our economy. However, there are measures we can support, in particular changes to tax allowances which will provide some protection for those on low incomes – although this will be undermined by the increase in VAT. We welcome support for pensioners, and specific measures for businesses including National Insurance exemptions and Corporation Tax reductions. We will also work with the UK Government on public sector pay.

"The UK's financial mess is exactly why the Scottish Government has been taking concerted and carefully planned action to deliver greater efficiencies and plan for the future.

 

"It's we established the Independent Budget Review, which will report by the end of July, and provide vital input on the way ahead. We will engage in an open conversation with the people of Scotland about how we protect the values of our society before setting out our draft Budget later this year.

SNP Treasury Spokesman Stewart Hosie MP added: 

“What we need now is a responsible approach and a plan which reduces the deficit gradually and generates long term growth. 

 

“If the Scottish economy is to grow in the long term, the Scottish Parliament must have the financial levers to make that growth happen. 

 

"While we must wait till October to see the impact on public spending in Scotland with the Compreghensive Spending Review, it is clear that we face deep cuts to Scottish spending and we must all work together, across the country, to ensure we maintain growth against the background of these significant cuts and tax rises.”

Meanwhile, SNP Transport Spokesman, Angus MacNeil MP warned that action to stabilise fuel prices and introduce a fuel rebate for remote rural areas must not be delayed by the Treasury. Mr MacNeil said that a pilot scheme was unnecessary as it already operated in a number of EU locations and it was about time the UK government recognised that areas like the Western Isles needed a rebate.

Mr MacNeil said:

“We need action on fuel prices immediately not more Treasury consultations and delays. We had that with Labour and it appears we are getting it again from the Tory/LibDem pact.

“Other countries already operate derogations successfully and there is absolutely no reason why the Treasury cannot implement a similar system in Scotland as well. The Western Isles is already crying out for such a scheme so there is no reason for more prevarication.

“Motorists in the Hebrideans are paying more tax than anyone else in the UK for fuel, and I have already suggested to the Chief Secretary to the Treasury that the Western Isles would be the perfect pilot area for such a scheme.

“The Chancellor must stand and deliver on fair fuel prices and put an end to Labour’s highway robbery.”