SCOTLAND'S Finance Secretary has accused Rishi Sunak of failing to tackle the “biggest loss in living standards since the 1950s”.

Kate Forbes criticised the Chancellor for failing to offer immediate assistance to help with soaring energy bills and increase benefits.

Among the measures announced by Sunak included that fuel duty would be cut by 5p per litre, as well as an increase to the national insurance threshold of £3000.

The Chancellor also pledged to cut the lowest rate of income tax by 1%.

But in an interview with Radio Forth News, Forbes said: “Households right now are facing soaring energy bills, they need help now and the Chancellor’s statement did nothing to provide that immediate assistance.

“Whilst there are some things we welcome in terms of cutting VAT for renewables for example – he could have done that months, if not years ago – to ensure that families were in a better position right now.

“We are seeing the biggest loss in living standards since the 1950s and I don’t think we saw the Chancellor rising to that occasion today.”

 

 

Ahead of the statement, Forbes had urged the Chancellor to take action on the impending cost of living crisis, including by matching a Scottish Government pledge to uprate benefits by 6%.

She said Sunak could have taken that action as the “fastest most effective way of helping families that need it".

She added: “Energy is entirely reserved, whilst the Scottish Government can intervene and provide support to families – which we have done, including through the fuel insecurity fund – ultimately, it needs to be resolved at source.

“The Chancellor has the power to do that and he has chosen not to use that power.”

Forbes said there would be meetings with the UK Government to discuss funding coming to the Scottish Government, reported to be £45 million.

She said the “devil will be in the detail”, but pledged to ensure it will “go to the families who actually need it".

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The Scottish Greens finance spokesperson Ross Greer said the UK’s "multi-millionaire Chancellor" had demonstrated that he has no idea of the pressures ordinary families are under.


“There was nothing in Rishi Sunak’s statement to address energy bills, which are rising because of the Tories’ failure to implement price controls or to transition away from unstable fossil fuels such as gas," he said.

"There was nothing to tackle rising food prices stemming from their disastrous Brexit process. And there was nothing to support those already plunged into poverty by the cuts to Universal Credit and the benefit cap.


“A costly cut in fuel duty will inflate the profit margins of fossil fuel corporations whilst having no effect on the millions of predominantly low-income families with no access to a car and who rely on public transport. In Glasgow alone that is fully half of all households.

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Meanwhile, charities and business representatives also said the Chancellor should have gone further.

Derek Mitchell, the chief executive of Citizens Advice Scotland, said more needed to be done than what was included in the statement, adding that household budgets in Scotland were at “breaking point”.

“It’s vital to understand that this crisis has been brewing for some time, with 1.8 million people in Scotland seeing their finances worsen during the pandemic,” he said.

“One in three of us already find energy bills too high, even before the record rise in prices due in April, and the knock-on effect of that is almost half a million people cutting back on food to afford energy bills.

“Some of the measures announced today by the chancellor will provide some respite, however, in reality, it won’t be enough to halt a rising tide of poverty that could sweep millions across the UK into debt and destitution.

“Put simply, much more needs to be done than has been announced today.”

READ MORE: Chancellor's Spring Statement: Rishi Sunak urged to follow Scotland's lead

The Scottish Chambers of Commerce welcomed some of the measures, but added: “The Chancellor should have gone further to help Scotland’s businesses recover.

“A delay to the imminent national insurance rise and the introduction of a temporary or permanent energy price cap for micro, small and medium sized enterprises would have helped businesses to expand and grow as they get back on their feet following the impact of the Covid-19 pandemic.

“The economic environment facing Scotland’s businesses remains challenging and it’s essential that Government in Westminster and Holyrood do everything they can to tackle inflation and rising cost pressures to help drive a strong economic recovery.”