KATE Forbes, the Scottish Finance Secretary, has accused the Chancellor of lacking ambition, saying he has spent less than half of what is needed to stimulate the economy.

She’s said that if Rishi Sunak won't make the investment, then he should give Scotland “the consequentials and the powers to do it ourselves.”

Her comments follow yesterday’s unprecedented letter by the finance secretaries of the three devolved administrations asking for capital spending to be moved over to day-to-day revenue and for an end to “arbitrary” limits on borrowing.

Forbes said that while were "elements in this announcement to be welcomed", the package overall, was a "huge opportunity missed."

She said: "It falls well short of delivering what is needed to boost the economy and protect jobs.

“There is no new capital spend, no extension to the furlough scheme for hard-hit sectors and no further support for households in financial difficulty. A half price meal out does not help those struggling to put food on the table.

“Many of the initiatives are short-lived and do not provide long term certainty for business or households. Instead they will simply push the problems back to the end of the year when we will also have to deal with the end of the transition period with the EU.

“Despite announcing new funding measures worth up to £30bn today, most of it bypasses devolution and does not provide the Scottish Government with the funding we need to enable us to tailor an economic response that meets Scotland’s needs.

“Like all governments, we are facing huge spending pressures but we do not have the tools that others have to meet them. Along with the Governments of Wales and Northern Ireland, we set out a reasonable, proportionate set of new financial powers that would enable the Scottish Government to respond effectively. Regrettably, the UK Government has turned a deaf ear to those needs.”

Scottish Lib Dem leader Willie Rennie said there would be "scant cofmfot" for  "those who have fallen through the gaps in the existing system".

He added: Countless families are facing severe financial hardship or worrying about the months ahead. The Chancellor must ensure they are excluded no longer."

Labour leader Richard Leonard said the budget fell "way short of the radical investment we need in the face of a major economic crisis and spiralling unemployment." 

Scottish Green co-convenor Patrick Harvie said that while the planned job retention bonus had "positive potential" it would be "no replacement for the furlough scheme."

 

He added: "The result will inevitably be a wave of job losses on a devastating scale. The Bonus itself sounds very much like past job creation schemes which have often under delivered. And there appear to be no requirements for fair employment practices, like ruling out zero-hour contracts."
There was a more positive reaction from Scottish Tory leader Jackson Carlaw.

He called on the Scottish Government to follow suit on plans to increase the stamp duty threshold.

Carlaw said: “This announcement by Rishi Sunak will get the housing market moving again immediately, and that’s vital on a number of levels.

“The SNP must do the same, otherwise the consequences for families and the wider economy will be dire.

“This change will not just increase the number of properties bought and sold after months of lockdown.

“It will provide a boost to all those trades who depend on people moving home, decorating, renovating and generally making choices which keep the wheels turning for small businesses.

“The importance of this move for jobs and growth in Scotland cannot be underestimated.”