THE tanking of the pound will only "exacerbate" the economic crisis facing the UK and will be felt "deeply" by households, the SNP has said.
Market confidence in the pound has plummeted following the announcement of the Government’s new economic plans on Friday last week, with further tax cuts reportedly on the way.
Chancellor Kwasi Kwarteng's plans include lifting the cap on banker's bonuses, cutting taxes for the highest earners, and scrapping the planned hike to corporation tax.
READ MORE: The key points from Kwasi Kwarteng's mini-budget announcement
In the days following the fiscal announcement, the value of the pound began to plunge and by Monday had reached a record low against the US dollar.
Over the weekend, the SNP demanded the House of Commons be recalled to allow for the plans to be scrutinised by MPs.
Alison Thewliss, SNP shadow chancellor, said the collapse of the pound shows the "Tory-made cost-of-living crisis is rapidly getting worse", and branded Kwarteng's fiscal plans as a budget for the "super-rich".
The MP added: "What we needed to see was real and targeted support for ordinary people and businesses, instead we witnessed Liz Truss and her Chancellor pouring fuel onto the fire of the cost-of-living crisis and then running from accountability and scrutiny.
"The tanking of the pound will only exacerbate the severe economic challenges facing people across Scotland and the UK - all the while the rich in the country will get richer thanks to tax cuts and the misplaced priorities of Liz Truss and Kwasi Kwarteng."
Treasury estimates put the overall measures contained in the "mini-budget" as costing nearly £45 billion a year by 2026.
Thewliss added: "Far from seeing a fair and equal economic recovery from the crisis, the Tory government has made it clear beyond any doubt that it intends to reward the super-rich - including through scrapping the cap on bankers' bonuses - while turning their backs on millions of working families and those on the lowest incomes who are struggling to make ends meet.
READ MORE: Letters of no confidence in Liz Truss 'already being put in', says Tory MP
"As the pound dives, the impact will be felt deeply by millions as household bills and mortgage payments get higher and prices in shops rise due to the hit on import costs.
"In their race to the bottom, the Tories are intent on consigning millions of ordinary people to poverty and unmanageable levels of debt. There must be an urgent recall of Parliament so that the Prime Minister can be held to account for her government's reckless actions.
"People across Scotland are being forced to pay a heavy price for damaging Westminster control. Only with the full powers of independence will we be able to deliver the targeted support needed and secure a fair and equal economic recovery."
It’s hard to overstate the scale of the economic crisis caused by Friday’s UK budget. While the very richest get tax cuts, ordinary people - already hit by soaring inflation - are about to be hit by rising interest rates. The House of Commons should be in emergency session now. https://t.co/9cKl9TsdQj
— Nicola Sturgeon (@NicolaSturgeon) September 26, 2022
Maggie Chapman MSP, Scottish Greens economy spokesperson, said: "The Tories said they were 'betting big' with our economy, and with the pound in freefall making our day-to-day lives even more expensive, it didn't take long to see the entirely predictable result.
"12 years of Tory rule has left the economy in shambles, with millions struggling to pay for food, heat and shelter while public services crumble from over a decade of chronic underinvestment.
"The very last thing we need to see is billions more pounds recklessly transferred out of those services and funnelled into the pockets of the rich, to be hoarded offshore. Yet this is exactly what the Tories are doing."
READ MORE: Tory party likened to 'doomsday cult' amid economic chaos
It comes as First Minister Nicola Sturgeon backed the demand for a House of Commons recall - which is in recess due to party conference season - amid concerns over rising interest rates.
She tweeted: "It’s hard to overstate the scale of the economic crisis caused by Friday’s UK budget.
While the very richest get tax cuts, ordinary people - already hit by soaring inflation - are about to be hit by rising interest rates. The House of Commons should be in emergency session now."
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