THE SNP have said the UK’s Chancellor is “threatening Scotland’s recovery with a return to Tory austerity cuts”.

Speaking ahead of the Budget, Ian Blackford said the Tories had “failed to learn the lessons of the pandemic and are doomed to repeat the mistakes of the past” by imposing cuts, rather than investing and providing fundamental change to deliver an economic recovery.

In a letter to Rishi Sunak, the SNP called for five key measures at today’s Budget – including the furlough scheme, which the Chancellor is set to announce the extension of until the end of September.

The Treasury said that hundreds of thousands more people will be eligible for the grants this time, as tax return data for 2019/20 is now available.

However, last night’s development included news that the Government’s contribution would be tapered from July, with employers asked to pay in alongside the taxpayer for the cost of furloughed employees.

The key measures put forward by the SNP are:

  • A £98 billion fiscal stimulus to kick-start an investment-led recovery, with focus on creating jobs, boosting incomes and a green recovery
  • An extension of the furlough scheme and plugging the gaps in support, including a package for the three million people who have been excluded in the past year
  • Tackling child poverty and boosting household incomes by matching the Scottish Child Payment across the UK, ditching a public sector pay freeze and making the £20 uplift to Universal Credit permanent
  • Long-term investment for the NHS, matching the Scottish Government’s £500 “thank-you” payment, delivering a pay rise for health and care staff and increasing funding to the higher level per head in Scotland
  • A multi-billion Brexit compensation package for Scotland, mitigating the damage done by the Prime Minister’s deal and following the EU’s €1.05bn for Ireland

Blackford said: “The Tories are threatening Scotland’s recovery with a return to austerity cuts – when the economy needs maximum investment to stimulate growth, create jobs and boost incomes.

“You cannot cut your way to recovery. The Chancellor must ditch damaging Tory plans for a public sector pay freeze and cuts to Universal Credit – and deliver a major fiscal stimulus of at least £98bn, to plug the gaps in

Covid support and kick-start an investment-led recovery.

He added: “We cannot afford a repeat of the Thatcher years – when the Tories left people on the scrap heap by failing to act. Covid has exposed the deep inequalities that exist under the broken Westminster system.”

Sunak will today pledge to use “fiscal firepower” to protect jobs and livelihoods, vowing to do “whatever it takes” to help businesses and people through this “moment of crisis”. He is expected to set out a three-point economic plan focused on supporting people through the Covid-19 pandemic, fixing the public finances and building the future economy.

The SNP’s shadow business secretary Stephen Flynn said: “The SNP has been calling for a full extension to the furlough scheme for months, and while this 11th-hour concession is welcome, it still falls short of a commitment to retain full support at 80% of pay for as long as it is required by the devolved nations.

“We cannot have a repeat of the damaging cliff-edge last autumn when the Tories threatened to withdraw support prematurely. Decisions on public health measures must be driven by the data, not arbitrary dates.”