First Minister calls for new support for industry

UK Government must “meet the moment” with decisive action

First Minister John Swinney has called for a new package of support for industry from the UK Government in the face of global economic uncertainty.

As financial markets react to global events, Mr Swinney has called on the Prime Minister and the Chancellor to change their fiscal rules and commit to a package of investment to support business, workers and consumers.

The First Minister said: “We are currently enduring a time of global financial and economic uncertainty and volatility.  But while we are not immune to global trends, we can be confident in the strength of Scotland’s economy.

“Indeed, throughout my time in the United States since last week, there has been a clear confidence in Scotland as a place to do business and as a destination for investment. 

“However, the global economy is clearly going through a time of upheaval and it is vital that we see strong action to meet the moment, support Scottish industry and ensure workers and consumers are protected.

“My government will continue to do everything in our power to do that, but given where powers over the economy sit, this will require clear, determined and decisive action from the UK Government.

“The old economic orthodoxies of Westminster will not be enough to meet a moment of real global challenge.  The UK Government cannot meet this global uncertainty with austerity – we need to see a new approach which provides investment and support for industry as we are seeing in countries like Spain.

“It is now obvious that the era in which the UK Government’s fiscal rules were set is over.  The Prime Minister and the Chancellor must accept that new reality, end their outdated commitment to the fiscal rules and deliver serious investment to support industry.

“And in the face of this economic volatility, the last move any serious government would implement is a tax on jobs.  The increase in employer’s national insurance contributions was always the wrong move – but the Prime Minister should not risk further economic damage by making it more difficult for business to take on or keep staff.   The Chancellor should abandon the national insurance hike immediately.

“The events of the last few days require truly bold action from the Prime Minister.  He cannot simply respond to an unprecedented situation by continuing with a plan set in completely different circumstances and which already looks doomed to failure.”

Charter for Budget Responsibility: Autumn 2024 – GOV.UK