A Budget to ‘fix the foundations’ and deliver change for Scotland?

Chancellor ‘takes long-term decisions to restore stability, rebuild Britain and protect working people across Scotland’

  • No change to working people’s payslips as employee national insurance and VAT stay the same, but businesses and the wealthiest asked to pay their fair share.
  • Record £47.7 billion for the Scottish Government in 2025/26 includes £3.4 billion through the Barnett formula.
  • Funding for Green Freeports, City and Growth Deals, GB Energy and hydrogen projects to fire up growth and deliver good jobs across Scotland.

The Chancellor has ‘delivered a Budget to fix the foundations to deliver on the promise of change after a decade and a half of stagnation’. She set out plans to rebuild Britain, while ensuring working people across Scotland don’t face higher taxes in their payslips.

The UK Government was handed a challenging inheritance; £22 billion of unfunded in-year spending pressures, debt at its highest since the 1960s, an unrealistic forecast for departmental spending, and stagnating living standards.

This Budget takes ‘difficult decisions’ to restore economic and fiscal stability, so that the UK Government can invest in Scotland’s future and lay the foundations for economic growth across the UK as its number one mission.

The Chancellor announced that the Scottish Government will be provided with a £47.7 billion settlement in 2025/26 – the largest in real terms in the history of devolution. This includes a £3.4 billion top-up through the Barnett formula, with £2.8 billion for day-to-day spending and £610 million for capital investment.

Secretary of State for Scotland Ian Murray said: “This is a historic budget for Scotland that chooses investment over decline and delivers on the promise that there would be no return to austerity.

“It is the largest budget settlement for the Scottish Government in the history of devolution, including an additional £1.5 billion this financial year and an additional £3.4 billion next year through the Barnett formula. That money must reach frontline services, to bring down NHS waiting lists and lift attainment in our schools.

“It will also bring a new era of growth for Scotland and the whole UK, confirming nearly £890 million of direct investment into Freeports, Investment Zones, the Argyll and Bute Growth Deal, and other important local projects across Scotland’s communities, as well as £125 million next year for GB Energy and support for green hydrogen projects in Cromarty and Whitelee.

“The increase in the minimum wage will also mean a pay rise for hundreds of thousands of workers in Scotland, with the biggest increase for young workers ever. This is on top of our employment rights bill which will deliver the biggest upgrade in workers’ rights in a generation. The triple lock means an increase in the state pension by £470 next year, on top of £900 this year for a million Scottish pensioners.

“The budget protects working people in Scotland, delivers more money than ever before for Scottish public services and means an end to the era of austerity.”

Protecting working people and living standards

While fixing the inheritance requires tough decisions, the Chancellor has committed to protecting the living standards of working people. The decisions taken by the Chancellor to rebuild public finances enable the UK Government to deliver on its pledge to not increase National Insurance or VAT on working people in Scotland, meaning they will not see higher taxes in their payslip.

  • The National Living Wage will increase from £11.44 to £12.21 an hour from April 2025. The 6.7% increase – worth £1,400 a year for a full-time worker – is a significant move towards delivering a genuine living wage.
  • The National Minimum Wage for 18 to 20-year-olds will also see a record rise from £8.60 to £10 an hour.
  • Working people will benefit from these increases, with there estimated to be over 100,000 minimum wage workers in Scotland in 2023.
  • The Chancellor has made the decision to protect working people in Scotland from being dragged into higher tax brackets by confirming that the freeze on National Insurance Contributions thresholds will be lifted from 2028-29 onwards, rising in line with inflation so they can keep more of their hard-earned wages.
  • The Chancellor is also protecting motorists by freezing fuel duty for one year – a tax cut worth £3 billion, with the temporary 5p cut extended to 22 March 2026. This will benefit an estimated 3.2 million people in Scotland, saving the average car driver £59, vans £126 and Heavy Goods Vehicles £1,079 next year.
  • To support Scottish pubs and smaller brewers in Scotland, the UK Government is cutting duty on qualifying draught products by 1p, which represent approximately 3 in 5 alcoholic drinks sold in pubs. This measure reduces duty bills by over £70 million a year, cutting duty on an average strength pint in a pub by a penny. The relief available to small producers will be updated to help smaller brewers and cidermakers.  
  • Over 1 million Scottish pensioners will benefit from a 4.1% increase to their new or basic State Pension in April 2025. This is an additional £470 a year for those on the new State Pension and an additional £360 a year for those on the basic State Pension.
  • Households eligible for Pension Credit will get £465 a year more for single pensioners and up to £710 a year more for couples due to a 4.1% increase in the Pension Credit Standard Minimum Guarantee, benefitting 125,000 pensioners in Scotland.
  • Around 1.7 million families in Scotland will see their working-age benefits uprated in line with inflation – a £150 gain on average in 2025-26.
  • Reducing the maximum level of debt repayments that can be deducted from a household’s Universal Credit payment each month from 25% to 15% will benefit a Scottish family by over £420 a year on average.

Rebuilding Britain

This UK Government will not make a return to austerity and will instead boost investment to rebuild Britain and lay the foundations for growth in Scotland. This includes £130 million of targeted funding for the Scottish Government, of which £120 million is in capital investment.

  • The Budget delivers on the first step to establish Great British Energy by providing £125 million next year to set up the institution at its new home in Aberdeen – helping to develop new clean energy projects in Scotland and across the UK. 
  • The UK Government will deliver £122 million for City and Growth Deals, including the continuation of its contribution to the Argyll and Bute Growth Deal which delivers £25 million of investment in the region over 10 years. This Deal will be supported by a rigorous value for money assessment as part of the review of the business cases for projects within it, to ensure best value is being delivered.
  • The Budget gives certainty to local leaders and investors, confirming funding for the Investment Zones and Freeports programmes across the UK – including Scotland’s Green Freeports. 
  • The Chancellor committed the UK Government to working closely with the Scottish Government on the Industrial Strategy, 10-year infrastructure strategy and the National Wealth Fund – to ensure the benefits of these are felt UK-wide and as part of the relationship reset between governments. These will mobilise billions of pounds of investment in the UK’s world-leading clean energy and growth industries.
  • To support economic growth and promote Scottish culture, products and services through diplomatic and trade networks, the UK Government is allocating £750,000 for the Scotland Office in 2025/26 to champion Brand Scotland as was committed in the manifesto.
  • We are supporting Scotland’s world-renowned Scotch Whisky industry by providing up to £5 million for HMRC to reduce the fees charged by the Spirit Drinks Verification Scheme and by ending mandatory duty stamps for spirits on 1 May 2025.
  • Two electrolytic hydrogen projects in Scotland have been selected for UK Government revenue support through the first Hydrogen Allocation Round: Cromarty Green Hydrogen Project and Whitelee Green Hydrogen. Both projects will bring in significant international investment and create good quality, local jobs.
  • An extension of the Innovation Accelerators programme will support the high-potential innovation cluster in the Glasgow City Region.
  • A corporate tax roadmap will provide businesses with the stability and certainty they need to make long-term investment decisions and support our growth mission. It confirms our competitive offer, with the lowest Corporate Tax rate in the G7 and generous support for investment and innovation. 
  • The UK Government will also proceed with implementing the 45%/40% rates of the theatre, orchestra, museum and galleries tax relief from 1 April 2025 to provide certainty to businesses in Scotland’s thriving cultural sector.

Repairing public finances

The Chancellor has made clear that, whilst protecting working people with measures to reduce the cost of living, there would be difficult decisions required. The Budget will ask businesses and the wealthiest to pay their fair share while making taxes fairer. This will go directly towards fixing the foundations of the UK economy.

  • The rate of Employers’ National Insurance will increase by 1.2 percentage points, to 15%. The Secondary Threshold – the level at which employers start paying national insurance on each employee’s salary – will reduce from £9,100 per year to £5,000 per year.
  • The smallest businesses will be protected as the Employment Allowance will increase to £10,500 from £5,000, allowing Scottish firms to employ four National Living Wage workers full time without paying employer national insurance on their wages.
  • Capital Gains Tax will increase from 10% to 18% for those paying the lower rate, and 20% to 24% for those paying the higher rate.
  • To encourage entrepreneurs to invest in their businesses Business Asset Disposal Relief (BADR) will remain at 10% this year, before rising to 14% on 6 April 2025 and 18% from 6 April 2026-27.
  • The lifetime limit of BADR will be maintained at £1 million. The lifetime limit of Investors’ Relief will be reduced from £10 million to £1 million.
  • The OBR say changes to CGT raise over £2.5 billion a year and the UK will continue to have the lowest CGT rate of any European G7 country.
  • Inheritance Tax thresholds will be fixed at their current levels for a further two years until April 2030. More than 90% of estates each year will be outside of its scope. From April 2027 inherited pensions will be subject to Inheritance Tax. This removes a distortion which has led to pensions being used as a tax planning vehicle to transfer wealth rather than their original purpose to fund retirement.
  • From April 2026, agricultural property relief and business property relief will be reformed. The highest rate of relief will continue at 100% for the first £1 million of combined business and agricultural assets, fully protecting the majority of businesses and farms. It will reduce to 50% after the first £1 million. Reforms will affect the wealthiest 2,000 estates each year. Inheritance Tax reforms in total are predicted by the OBR to raise £2 billion to support stability.
  • From 2026-27 Air Passenger Duty (APD) for short and long-haul flights will increase by 13% to the nearest pound, a partial adjustment to account for previous high inflation. For economy passengers, this means a maximum £2 extra per short haul flight and tickets for children under the age of 16 remain exempt from APD. APD for larger private jets will be increased by a further 50%. Passengers carried on flights leaving from airports in the Scottish Highlands and Islands region are exempt from APD.
  • The rate of the Energy Profits Levy will increase to 38% from 1 November 2024 and the levy will now expire one year later than planned, on 31 March 2030.  The 29% investment allowance will be removed.
  • To provide long-term certainty and to support a stable energy transition, the UK Government will make no additional changes to tax relief available within the EPL and a consultation will be published in early 2025 on a successor regime that can respond to price shocks. Money raised from changes to the EPL will support the transition to clean energy, enhance energy security and provide sustainable jobs for the future.

The Budget also announced a package of measures that disincentivise activities that cause ill health, by:

  •  Renewing the tobacco duty escalator which increases all tobacco duty rates by RPI+2% plus an above escalator increase to hand rolling tobacco (totalling RPI+12%).  
  • Introducing a new vaping duty at a flat rate of 22p/ml from October 2026, accompanied by a further one-off increase in tobacco duty to maintain financial incentive to choose vaping over smoking. 
  • To help tackle obesity and other harms caused by high sugar intake, the Soft Drinks Industry Levy will increase to account for inflation since it was last updated in 2018, and the duty will rise in line with inflation every year going forward.
  • The UK Government will also uprate alcohol duty in line with RPI on 1 February 2025, except for most drinks in pubs.

The UK Government has set out the next steps to deliver its tax manifesto commitments in the July Statement. Having consulted on the final policy details where appropriate, this Budget delivers the UK Government’s manifesto commitments to raise revenue to pay for First Steps, with reforms that are underpinned by fairness, and tackle tax avoidance by:  

  • A new residence-based regime will replace the current non-dom regime from April 2025 and will be designed to attract investment and talent to the UK.
  • Offshore trusts will no longer be able to be used to shelter assets from Inheritance Tax, and there will be transitional arrangement in place for people who have made plans based on current rules.
  • The planned 50% reduction for foreign income in the first year of the new regime will be removed.
  • Reforms to the non-dom regime will raise a total of £12.7 billion according to the OBR.
  • The tax treatment of carried interest will be reformed by first increasing the Capital Gains Tax rates on carried interest to 32% and then, from April 2026, moving to a revised regime – with bespoke rules to reflect the characteristics of the reward.

The Chancellor also ‘doubled down’ on fiscal responsibility through two new fiscal rules that put the public finances on a sustainable path and prioritise investment to support long-term growth, and new principles of stability. Spending Reviews will be held every two years, setting plans for at least three years to ensure public services are always planned and improve value for money.

One major fiscal event per year will give families and businesses stability and certainty on tax and spending changes, while giving the Scottish Government greater clarity for in its own budget-setting.  A Fiscal Lock will also ensure no future government can sideline the OBR again.

Budget marks ‘step in right direction’

Scotland’s Finance Secretary responds to Budget

Finance Secretary Shona Robison has welcomed additional funding in the Autumn Budget, but said the Scottish Government will still face “enormous cost pressures” despite the measures.

The Finance Secretary said: “We called for increased investment in public services, infrastructure and tackling poverty. This budget is a step in the right direction, but still leaves us facing enormous cost pressures going forwards. The additional funding for this financial year has already been factored into our spending plans.

“By changing her fiscal rules and increasing investment in infrastructure, the Chancellor has met a core ask of the Scottish Government. But after 14 years of austerity, it’s going to take more than one year to rebuild and recover – we will need to see continued investment over the coming years to reset and reform public services.

“Indeed, there is a risk that by providing more funding for public services while increasing employer national insurance contributions, the UK Government is giving with one hand while taking away with the other.

“We estimate that the employer national insurance change could add up to £500 million in costs for the public sector unless it is fully reimbursed – and there is a danger that we won’t get that certainty until after the Scottish budget process for 2025/26 has concluded.

“With the lingering effects of the cost of living crisis still hitting family finances, it is disappointing that there was no mention of abolishing the two-child limit, which evidence shows would be one of the most cost-effective ways to reduce child poverty. Neither was there mention of funding for the Winter Fuel Payment.

“As ever, the devil is in the detail, and we will now take the time to assess the full implications of today’s statement. I will be announcing further details as part of the Scottish Budget on 4 December.”

Child Poverty Action Group: Chancellor misses golden chance to scrap two child limit

  • 16 000 more children will now be pulled into poverty by time new UK child poverty taskforce reports in spring
  • “Good news on universal credit deductions, but no bold action on child poverty” 
  • Barnett consequentials must now be prioritised to fund action on child poverty in Scotland

Responding to the UK Chancellor’s Budget, John Dickie, Director of the Child Poverty Action Group (CPAG) in Scotland, said; “The Chancellor brought good news on universal credit deductions, but this was not a Budget of bold action on child poverty.  She missed a golden chance to scrap the two-child limit, a policy that will pull 16,000 extra children into poverty by the time the government’s child poverty taskforce reports in spring.

We welcome the new UK government’s ambition on child poverty but this budget played for time, time that children and families can’t afford. The UK spending review next spring will have to deliver much more to make a significant difference for children in poverty.”

Mr Dickie continued: “Here in Scotland and looking ahead to the Scottish budget it is vital that wider Barnett consequentials are now used to fund the action needed to deliver on the First Minister’s number one priority of ending child poverty.

“That must include funding a real terms increase to the Scottish child payment, expanding childcare provision, delivering on free school meal promises and increasing the supply of affordable family housing.”

POVERTY ALLIANCE:

Responding to today’s UK Budget, Poverty Alliance chief executive Peter Kelly said: “People across the UK believe in a nation based on justice and compassion. Today’s Budget was an opportunity for the Chancellor to turn those values into action, and to rebuild trust in government. Despite some welcome changes, there is still some way to go.

“Boosting the minimum wage is welcome, because for decades workers have been getting less and less from our growing economy. This increase will go some way to making up the gap, particularly for younger workers. But we need to remember that today’s Budget will still leave the legal minimum wages far lower than the real Living Wage rate – the only wage rate that is solely based on the cost of living – of £12.60 per hour, or £13.85 per hour in London.

“We know that too many people on Universal Credit find themselves pushed into destitution when they are chased for debt by public bodies, so it’s good that the maximum amount of benefit that can be taken from them has been reduced. But the Chancellor could have gone further, by strengthening our social security with a boost to Universal Credit that would guarantee that households can afford life’s essentials.

“She could have made it clear that every child matters, by scrapping the unjust and ineffective two-child limit, and ditching the unfair benefit cap which stops households getting all the support they are entitled to.

“There was a welcome focus on the importance of our public services to our shared prosperity and wellbeing. But the Chancellor could have done more to use our country’s wealth to tackle poverty and invest in a better society. Even with today’s changes, people who earn money from selling shares and business assets will pay Capital Gains Tax at a lower rate than workers pay in Income Tax. That’s just wrong.

“Freezing fuel duty and keeping the previous cuts in place will cost the Exchequer billions of pounds a year. It’s bad value for money, benefits the wealthiest in society most, and does little to make the transition to the green economy. The money would have been better invested in affordable, accessible, and sustainable public transport for all.

It’s right that big companies pay their fair share towards building a strong society, but the Chancellor must urgently consider how increases to employer National Insurance will hit charities and community groups.

“The support and advice provided by these organisations is vital for people who have been pushed into poverty, but too many are already struggling through a lack of fair funding, and this NI increase could push many over the edge.

“That would be a disaster for our communities, and leave more low-income households facing destitution and despair.”

TUC: Labour’s investment budget has begun process of “repairing and rebuilding Britain”

Union body says budget is a vital first step towards the growth, jobs and living standards working people desperately need

Commenting on Wednesday’s budget statement from the Chancellor Rachel Reeves, TUC General Secretary Paul Nowak said: “The Chancellor was dealt a terrible hand by the last Conservative government – a toxic legacy of economic chaos, falling living standards and broken public services. 

“But with today’s budget the Chancellor has acted decisively to deliver an economy that works for working people. 

“The government’s investment plans are a vital first step towards repairing and rebuilding Britain – securing the stronger growth, higher wages and decent public services that the country desperately needs. 

“Tax rises will ensure much-needed funds for our NHS, schools and the rest of our crumbling public services, with those who have the broadest shoulders paying a fairer share. The Chancellor was right to prioritise hospitals and classrooms over private jets. 

“There is still a lot more work to do to clean up 14 years of Tory mess and economic decline. – including better supporting and strengthening our social security system. But this budget sets us on an urgently needed path towards national renewal.” 

Shelter Scotland has responded to the UK budget set out this afternoon by Chancellor Rachel Reeves.

The housing and homelessness charity urged the Scottish Government to commit to investing any new capital funding into delivering the social homes needed to end the housing emergency. 

However, it also expressed disappointment at the continuation of the two-child limit and ongoing freeze to Local Housing Allowance.

Shelter Scotland Director, Alison Watson, said: “Having declared a housing emergency it’s clear that the Scottish Government must back words with actions.

“It is vital that any capital funding which becomes available as a result of the Chancellor’s investment plans is in turn used by Scottish Ministers to deliver social homes here, but we also need to see growth in the capital budget over a sustained period to support continued investment.

“Delivering more social homes remains the single most effective way to tackle the housing emergency in Scotland, and only the Scottish Government can decide how much of its budget it commits to that endeavour. 

“However, we can’t ignore the role that austerity has played in exacerbating Scotland’s housing emergency.

“The freeze on local housing allowance and the two-child limit has forced thousands into poverty; they will continue to do so as it seems the Chancellor has chosen to keep them in place.” 

COSLA:

ONE PARENT FAMILIES SCOTLAND:

Scotch Whisky industry says UK government has broken commitment to ‘back Scotch producers to the hilt’

Chancellor increases discrimination of Scotch Whisky and other spirits in on-trade

The Scotch Whisky Association (SWA) says the Chancellor’s decision to further increase duty on Scotch Whisky has broken the Prime Minister’s commitment to ‘back Scotch producers to the hilt.’

In her first Budget, Chancellor Rachel Reeves announced an RPI inflation increase to alcohol duty, but cut duty on draught products in the on-trade by 1.7%. Scotch Whisky and other spirits are excluded from this tax relief. 

The SWA had called on the new Chancellor to take the opportunity to reverse the damage done by the 10.1% increase in August 2023. Instead, the damage done to the industry and to government revenue has been compounded by further increasing the tax burden on the sector, which is already the highest in the G7.

Spirits revenue fell by hundreds of millions of pounds as a result of the 10.1% duty increase last year, and the industry has warned that this further tax hike will not deliver the revenue ministers have been promised but will hurt businesses, the hospitality sector and hard-pressed consumers.

Commenting on the Budget, Chief Executive of the SWA Mark Kent said: “This duty increase on Scotch Whisky is a hammer blow, runs counter to the Prime Minister’s commitment to ‘back Scotch producers to the hilt’ and increases the tax discrimination of Scotland’s national drink.

“On the back of the 10.1% duty increase last year, which led to a reduction in revenue for HM Treasury, this tax hike serves no economic purpose. It will damage the Scotch Whisky industry, the Scottish economy, and undermines Labour’s commitment to promote ‘Brand Scotland’.

“She has also increased the tax discrimination of spirits in the Treasury’s warped duty system, and with 70% of UK spirits produced in Scotland, that will do further damage to a key Scottish sector.

“The disastrous 10.1% duty hike last year has now been compounded. This further tax rise means the lessons have not been learned, and the Chancellor has chosen continuity with her predecessor, not change.

“We urge all MPs who support Scotch Whisky to vote against this duty hike and tax discrimination of Scotland’s national drink.”

Rain Newton-Smith, CBI Chief Executive, said: “The Chancellor had difficult choices to make to deliver stability for the economy and public finances. A more balanced approach to our fiscal rules which prioritises capital investment should help to unlock private sector investment in our infrastructure and net zero transition over the long-term.

“This is a tough Budget for business. While the Corporation Tax Roadmap will help create much needed stability, the hike in National Insurance Contributions alongside other increases to the employer cost base will increase the burden on business and hit the ability to invest and ultimately make it more expensive to hire people or give pay rises.

“Only the private sector can provide the scale of investment required to deliver the government’s growth agenda.

“To achieve this shared mission of growing our economy sustainably, it’s vital that the government doubles down on its partnership with business to unlock the investment that is needed to drive opportunity around the UK.”

FSB: Employment allowance rise welcome from Chancellor in tax-raising Budget

The Federation of Small Businesses responds to the Chancellor’s Budget statement

Responding to the Chancellor’s Budget statement, Policy Chair of the Federation of Small Businesses (FSB), Tina McKenzie, said: “Increasing the employment allowance for small businesses by a record amount is a very welcome move and we’re pleased the Chancellor has heard us loud and clear.

“More than doubling it, from £5,000 to £10,500, will shield the smallest employers from the jobs tax, therefore is a pro-jobs prioritisation in a tough Budget.

“The decision to protect small businesses from an inflationary hike in business rates – by freezing the small business multiplier – will help small firms with premises across all sectors. Meanwhile, extending business rates relief, albeit at a lower level, for small firms in retail, hospitality and leisure will mitigate a potential cliff-edge tax hike for those in some of the toughest sectors.

“The true test of today’s Budget will be whether small businesses can grow and end the economic stagnation the UK has been stuck in.

“Larger small, and medium-sized, businesses will struggle with the rises on employer national insurance on top of the large costs from the Government’s employment law plans. We’ve been very clear in our warning of the difficulty SMEs will be confronted with in meeting all of these changes at once – and the potential impact on jobs, wages and prices.

“The Budget documents include plans for a small business strategy command paper, which is a welcome signal that ministers appreciate the central role that small businesses play in driving growth and we look forward to working with the Government closely on that.

“Investment in infrastructure is key to future growth, and the Chancellor’s announcement of additional funding for rail projects and fixing potholes is therefore encouraging. Many small firms, meanwhile, will be relieved at the decision not to raise fuel duty. The commitment to prioritise small housebuilders when it comes to housing investment is also welcome.

“Building a business involves a significant element of risk and personal, as well as financial, investment. But for the economy to grow, we need more people to be incentivised to take that leap and, in turn, create jobs, opportunities and prosperity in all communities across the country.

“The right decision has been taken to retain entrepreneurs’ relief (now branded Business Asset Disposal Relief) up to £1million, which is something we have campaigned hard for. Although the level of relief will gradually reduce over time, resulting in more tax being paid in the future on business sales, we’re pleased to see a differential has been kept.

“Against a challenging backdrop, today’s Budget shows a clear direction in business policy now for the whole of this Parliament to target support at small businesses, rather than big corporates – prioritising everyday entrepreneurs working in local communities in all parts of the country.”

UK Budget fails “3 Key Tests for Scotland”, say Alba Party

Scottish Government must now fund universal entitlement to pensioners winter fuel payment

To gain pass marks the new UK Labour Government had three key tests to meet in Scotland: it had to reverse its plan to cut the universal winter fuel payment; it had to save Grangemouth; and it had to fund a plan to save North Sea Oil and Gas jobs – on all three counts Labour has failed Scotland.” 

This was said today by Acting Alba Party leader Kenny MacAskill reacting to Chancellor Rachel Reeves’ budget. 

Alba Party say that the UK Government had three key tests to meet to deliver for Scotland. Former First Minister Alex Salmond helped launch a campaign to save the winter fuel payment last month.

Close to one million pensioners in Scotland are set to lose out on between £200-£300 this winter. Acting Alba Party leader Kenny MacAskill has been a leading voice in the campaign to save the Grangemouth Oil Refinery from closure.

Mr MacAskill has today hit out at the UK Government after Labour promised in the General Election to save Scotland’s only refinery that is set for closure next year but has failed to provide funding to save the refinery in today’s budget. 

MacAskill has now called on the Scottish Government to use extra Barnett consequential funding to fully mitigate the cut to the winter fuel payment.   

Alba Party have also hit out as successive UK Government’s have promised investment in Carbon Capture Technology in the North East of Scotland. Alba say the technology is vital to secure the future of the North Sea Oil and Gas industry and to help Scotland play its part in protecting the environment. Today’s UK Budget confirmed £22billion of investment in carbon capture projects in England – but snubbed the Acorn project on the Buchan coast.

Commenting Acting Alba Party leader Kenny MacAskill said:“Today’s UK Budget is a continuity budget that proves that regardless of whether we have a UK Tory Government or a UK Labour Government, Scotland will always lose. 

“To gain pass marks the new UK Labour Government had three key tests to meet in Scotland: it had to reverse its plan to cut the universal winter fuel payment; it had to save Grangemouth; and it had to fund a plan to save North Sea Oil and Gas jobs – on all three counts Labour has failed Scotland.

“ Close to a million Scottish pensioners are to be kept in the cold this winter, the UK Government has chosen to stand by and allow Scotland’s key industrial asset to close, and Labour have betrayed the North East of Scotland. 

“ Nothing for Scotland’s pensioners, nothing for Grangemouth and nothing for Carbon Capture and the North Sea. It is now vital that the Scottish Government steps up to the plate and uses any additional funding consequentials it receives to fully mitigate the cut to the winter fuel payment.”

Budget is a ‘Missed Opportunity’

The budget is a missed opportunity to bring about the transformative change this country needs, said Westminster’s group of independent MPs.

A statement from the Independent Alliance:

LOCAL GOVERNMENT INFORMATION UNIT:

Dr Jonathan Carr-West, Chief Executive, LGIU, said: “The Chancellor billed this as an historically consequential budget of hard choices. That’s certainly true in many areas with £40bn of tax rises announced and significant changes to the government’s debt rules. 
 
“For local government, however, it is a budget of choices deferred. It could have been worse – there’s an additional £1.3bn in funding including money for social care and additional funding for housing and special educational needs: the very areas that are driving many councils to bankruptcy.
 
“But this extra funding is not even half the gap that councils currently face. 
 
“The longer-tem change that the sector desperately needs is all deferred for now. We are waiting on the Local Government Finance Settlement, on the Devolution White Paper and on a broader redistribution of funding through a multi-year settlement from 2026-27.
 
“There were some welcome highlights: retaining 100%  of right to buy receipts and integrated settlements for Greater Manchester and the West Midlands and possibly for other places in future. 
 
“Is this a start? Yes. Is it enough? Not by a long shot. At least not yet. There’s a positive direction of travel set out, but there’s a long way to go and the pressure on council finances means there’s a real risk that some councils will not be able to hang on long enough to get there.”

A Budget for Long Term Growth?

Chancellor ‘delivers lower taxes, more investment and better public services’ in ‘Budget for Long Term Growth’

‘Budget for Long Term Growth’ sticks to the plan by delivering lower taxes, better public services and more investment, while meeting fiscal rules – taking the long term decisions needed to build a brighter future.

  • Economy turning a corner, with inflation expected to fall to target next quarter, wages consistently rising faster than prices and better growth than European neighbours.
  • Chancellor capitalises on progress with ‘Budget for Long Term Growth’, sticking to the plan by putting over £900 a year back into the average worker’s pocket thanks to changes at Autumn Statement and a second Employee National Insurance tax cut from 10% to 8% in April for 27 million working people.
  • 2 million self-employed also get a second tax cut through a further 2p reduction in the NICs main rate from 8% to 6% – saving the average self-employed worker £650 when combined with cuts at Autumn Statement.
  • Personal tax cuts since Autumn are worth £20 billion, slashes the effective personal tax rate for an average earner to its lowest level since 1975, and will lead to equivalent of 200,000 more full-time workers joining the labour market.
  • High Income Child Benefit Charge to be assessed on a household basis by April 2026, and immediate support for working families by increasing the threshold to £60,000 and halving the rate at which Child Benefit is repaid – representing a £1,260 boost on average for around half a million working families.
  • The NHS in England will receive a £2.5 billion day-to-day funding boost for 2024/25 and £3.4 billion in capital investment over the forecast period to help unlock £35 billion in productivity savings over the next Parliament by harnessing new technology like AI and cutting admin workloads – part of landmark Public Sector Productivity Plan to deliver better public services.
  • The average car driver will save £50 this year as the 5p cut and freeze to fuel duty is maintained until March 2025, while pubs, breweries and distilleries will benefit from a further freeze to alcohol duty until February 2025 – which will also save consumers money on their favourite tipple.
  • New tax reliefs and investments will help establish the UK as a world leader in high-growth industries such as the creative sector, advanced manufacturing and life sciences, while 28,000 SMEs will be taken out of VAT registration altogether – encouraging them to invest and grow.
  • ‘Budget for Long Term Growth’ sticks to the plan by delivering lower taxes, better public services and more investment, while increasing size of economy by 0.2% in 2028-29 and meeting fiscal rules – taking the long-term decisions needed to build a brighter future.

More tax cuts for working people, more investment and a plan for better public services headlined Chancellor Jeremy Hunt’s ‘Budget for Long Term Growth’ yesterday, Wednesday 6 March.

With the independent Office for Budget Responsibility (OBR) confirming inflation is set to fall to target a year earlier than previously expected, wages rising consistently and the economy outperforming European neighbours, the Chancellor said he would stick to the plan to improve living standards by rewarding work and growing the economy.

Building on the 2 percentage point cut to Employee National Insurance at Autumn Statement, Mr Hunt announced a second 2p cut from 10% to 8% from April. Taken together with the cut to Employee National Insurance at Autumn Statement, this slashes the main rate of Employee NICs by a third and means the average worker earning £35,400 a year will be over £900 better off this year.

The Chancellor also went further with tax cuts for the self-employed, having reduced Class 4 NICs from 9% to 8% and abolished the requirement to pay Class 2 NICs at Autumn Statement. Today he announced a further 2p cut to Class 4 NICs for the self-employed to 6%, meaning the average worker earning £28,000 will be £650 better off compared with last year.

Combined with changes at Autumn Statement, today’s announcements deliver personal tax cuts worth £20 billion and reduce the effective personal tax rate for a median earner to its lowest level since 1975. The OBR says these reductions will lead to the equivalent of around 200,000 extra full-time workers by 2028/29, as people increase their working hours and move into work. This boost is why the Chancellor has prioritised NICs cuts in his ‘Budget for Long Term Growth’ and why he will continue to do so when fiscally responsible. He set out that his long-term ambition is to end the unfairness of double taxation of work.

Mr Hunt also announced that the High Income Child Benefit Charge will be assessed on a household basis by April 2026, with a consultation to come on achieving this.

To ensure working families benefit from increasing their earnings before this change is made, the threshold to start paying back Child Benefit will increase in April from £50,000 to £60,000 – a 20% increase which will take 170,000 families out of paying the charge this year – while Child Benefit will no longer need to be repaid in full until earnings exceed £80,000. This represents a £1,260 boost on average for around half a million working families, rising to nearly £5,000 for some families when combined with tax cuts since Autumn Statement.

This will put an end to the current unfairness, where two parents earning £49,000 a year receive the full Child Benefit while a household with a single earner on over £50,000 does not. The OBR says the immediate changes to the HICBC will lead to an increase in hours worked equivalent to around 10,000 more people entering the workforce on a full-time basis.

The Chancellor also announced a landmark Public Sector Productivity Plan which marks the first step towards returning public sector productivity back to pre-pandemic levels and will ensure taxpayers’ money is spent as efficiently as possible. OBR analysis suggests that raising public sector productivity by just 5% would deliver up to £20 billion of benefits a year.

Backed by £4.2 billion in funding, the plan will allow public services to invest in new technologies like AI, replace outdated IT systems, free up frontline workers from time-consuming admin tasks and take action to reduce costs down the line.

The NHS will receive £3.4 billion as part of this over the forecast period – doubling investment in digital transformation, significantly reducing the 13 million hours lost by doctors every year because of old IT and delivering test results faster for 130,000 patients a year thanks to AI-fitted MRI scanners that help doctors read results more quickly and accurately.

This investment, which comes alongside an extra £2.5 billion cash injection for 2024/25 to support the NHS improve performance and reduce waiting times, means the NHS can commit to delivering £35 billion in productivity savings over the next Parliament, while the £800 million to boost productivity across other public services will deliver an extra £1.8 billion in productivity benefits by 2029.

New tax breaks and investments will help to establish the UK as a world-leader in high-growth industries.

The UK’s creative industries will be backed by over £1 billion, including higher tax reliefs to lower the cost of producing visual effects in high-end TV and film, a 40% relief on gross business rates until 2034 will be introduced for eligible film studios, and a new tax credit for independent British films with a budget of less than £15 million.

Orchestras, museums, galleries and theatres will also benefit from a permanent 45% tax relief for touring productions and 40% relief for non-touring productions, while £26 million will fund maintenance and repairs at the National Theatre.

A £360 million package will support innovative R&D and manufacturing projects across the life sciences, automotive and aerospace sectors – with a further £45 million funding to accelerate medical research into common diseases like cancer, dementia and epilepsy – while the Green Industries Growth Accelerator will be allocated an extra £120 million to build supply chains for offshore wind and carbon capture and storage.

Opportunity will be spread across the country with hundreds of millions in funding to extend the Long Term Plans for Towns to 20 new places and a swathe of cultural projects, while local leaders will also be empowered to improve their communities through more devolved powers and a new North-East trailblazer devolution deal which comes with a funding package potentially worth over £100 million to support the region’s growth ambitions.

The Chancellor also took steps to make the tax system simpler and fairer. The ‘non-dom’ tax regime will be abolished and replaced with a fairer system from April 2025 where new arrivals to the UK pay the same tax as everyone else after four years – raising £2.7 billion a year by 2028/29.

As the oil and gas sector’s windfall profits from higher prices are expected to last longer, the sunset clause on the Energy Profits Levy will be extended by a year to March 2029, raising £1.5 billion while encouraging investment in the UK’s energy security by promising to legislate for its abolition should market prices fall to their historic norm sooner than expected.

Accompanying forecasts by the OBR confirm that the combined impact of decisions taken at Spring Budget and the preceding two fiscal events will increase the size of the economy by 0.7% and increase total hours worked by the equivalent of 300,000 full-time workers by 2028-29 – with the combined impact of government policy since Autumn Statement 2022 reducing the tax burden in the final year of the forecast by 0.6%.

Today’s announcements will reduce inflation in 2024/25, bring the equivalent of over 100,000 people into the workforce by 2028-29 and permanently grow the economy by 0.2% – with borrowing falling in every year of the forecast.

Lower taxes

With the economy turning a corner and debt on track to fall as a share of GDP, the Chancellor delivered further tax cuts for working people – rewarding work, boosting growth and helping families with the cost of living.

  • Following a 2 percentage point cut in the Autumn Statement, the main rate of Employee National Insurance will be cut again by a further 2 percentage points from 10% to 8% in April – a one third reduction in the main rate of National Insurance which means the average worker on £35,400 will receive a tax cut of over £900 compared to last year.
  • Following a 1 percentage point cut in the Autumn Statement, the main rate of Class 4 NICs for the self-employed will be cut by a further 2 percentage points from 8% to 6% from April – saving the average self-employed person on £28,000 over £650 compared to last year when combined with scrapping the requirement to pay Class 2 NICs announced at Autumn Statement.
  • Personal tax cuts worth £20 billion delivered since Autumn, which reduces the effective personal tax rate for a median earner to its lowest level since 1975.
    High Income Child Benefit Charge (HICBC) will be administered on a household rather than an individual basis by April 2026, with a consultation in due course, while around half a million working families will benefit from an increase in the threshold from £50,000 to £60,000 and raising the level at which Child Benefit is fully repaid to £80,000 – worth £1260 per family on average.
  • OBR says combined changes to NICs will lead to the equivalent of around 200,000 new full-time workers joining the labour market by 2028-29 as people increase working hours and move into work, while confirmed changes to the HICBC will bring in the equivalent of an additional 10,000 full-time workers.
  • The main rates of fuel duty will be frozen again until March 2025 with the temporary 5p cut also extended, saving car drivers around £50 this year and £250 since the 5p cut was introduced – a £5 billion tax cut.
  • The six-month alcohol duty freeze announced at Autumn Statement will be extended until 1 February 2025, saving consumers 2p on a pint of beer, 1p on a pint of cider, 10p on a bottle of wine and 33p on a bottle of spirit compared to if the planned rise had gone ahead. This will benefit 38,000 pubs across the UK, while reducing inflation this year.
  • The higher rate of Capital Gains Tax (CGT) on property will be cut from 28% to 24% from April 2024 – firing up the residential property market and supporting thousands of jobs that rely on it.
  • Building on the single biggest investment in childcare in English history, nurseries and preschools will be protected from rising costs through a guarantee that future funding will rise with a combination of inflation, earnings and the National Living Wage – certainty the sector needs to expand and deliver the rollout, which will save some parents using the full 30 hours up to £6,500 a year.
  • The most vulnerable families will receive targeted support through a £500 million extension to the Household Support Fund for an extra 6 months to September 2024, helping local authorities to support people with the cost of essentials, as well as abolishing the £90 fee for Debt Relief Orders so households struggling with problem debts can get the help they need, and extending the maximum period for Universal Credit budgeting advances from 12 to 24 months.

Better public services

While growth is key to delivering high-quality public services, the Chancellor backed the NHS with more funding and outlined the first steps towards getting public sector productivity back to pre-pandemic levels.

  • Day-to-day public spending will increase by 1% higher than inflation on average over the next parliament, as Chancellor confirms spending levels will not be cut.
  • The Public Sector Productivity Plan announced today with a £4.2 billion investment will improve public service delivery and get better value for taxpayers’ money through better tech, freeing frontline workers from time-consuming admin and making earlier interventions to reduce costs later down the line.
  • The NHS will receive an additional £3.4 billion as part of this to invest in new tech and digital transformation, including making the NHS app a single front door for patients, piloting new AI to halve form-filling times for doctors, rolling out universal electronic patient records, and over one hundred upgraded AI-fitted scanners so doctors can read MRI scans more accurately and quickly. This improves patient care and helps unlock £35 billion in productivity savings by 2030.
  • This means the NHS can commit to raising productivity in the NHS to 2% on average by 2028-29, at the upper end of the 1.5-2% ambition in the Long Term Workforce Plan – delivering a health service fit for the future. The NHS also gets a £2.5 billion funding boost for 2024/25.
  • £800 million will be invested to boost productivity across other public services, including £230 million for drones and new technology like facial recognition which will free up police officers’ time for more frontline work and £75 million to roll out the highly successful Violence Reduction Unit model across England and Wales.
  • This investment in non-NHS public services will help deliver up to £1.8 billion of benefits by 2029, with further measures including digitising jury bundles to free up 55,000 working hours spent on admin, creating 200 new children’s social care place to tackle overspends, and expanding the use of AI across government to make it easier to spot and catch those who try to defraud the public purse.
  • Defence spending is expected to hit 2.3% of GDP next year after £11 billion investment announced at Spring Budget 2023.

More investment

Building on recent investments in the UK by Google, Nissan and Microsoft, Mr Hunt announced exciting new investments in key growth sectors and set out plans to support businesses of all sizes to grow.

  • Significant package of support to establish the UK as a world leader in fast-growing industries over the next five years, including over £1 billion in new tax reliefs for creative industries, £270 million in automotive and aerospace R&D projects focusing, and a £120 million top up for the Green Industries Growth Accelerator to help build supply chains for offshore wind and carbon capture and storage.
  • £45 million will fund medical research to develop new medicines for diseases like cancer, dementia and epilepsy, and the UK’s ability to manufacture them will be boosted by plans for a £650 million AstraZeneca investment to build a new vaccine manufacturing hub in Liverpool and expand their footprint in Cambridge – thanks to government support for the life sciences sector.
  • Opportunity will be spread across the country with hundreds of millions in funding to extend the Long Term Plans for Towns to 20 new places, over £240 million to build nearly 8,000 homes in Barking Riverside and Canary Wharf alongside a new life sciences hub, and a new £160 million deal to acquire two site to develop nuclear for our energy security.
  • Local leaders will be empowered, with a new North-East trailblazer devolution deal which comes with a funding package potentially worth over £100 million in support for the region, and powers devolved to Buckinghamshire, Warwickshire and Surrey.
    Draft legislation will be published within weeks to extend full expensing – a £10 billion tax cut for business every year to help them invest for less – to leased assets when affordable to do so, strengthening one of the most attractive capital allowance regimes of any major country.
  • SMEs will be supported to invest and grow through a £200 million extension of the Growth Guarantee Fund, helping 11,000 small businesses to access the finance they need, and an increase in the VAT registration threshold from £85,000 to £90,000 which will take around 28,000 small businesses out of paying VAT altogether.
  • Pensions and savings reforms, including the introduction of a new UK ISA allowing an additional £5,000 annual investment in UK equities tax-free and new British Savings Bonds offering savers a guaranteed rate for 3 years, will deliver better returns for savers.

Sustainable public finances

The ‘Budget for Long Term Growth’ delivers lower taxes, better public services and more investment in a responsible way, the OBR confirming the Chancellor’s fiscal rules are on track to be met.

  • Underlying debt will fall as a share of the economy to 92.9% in 2028/29 – meeting the debt rule with £8.9 billion headroom. Headline debt will fall as a percentage of GDP every year from 2024/25.
  • Public sector borrowing falls in every year of the forecast. The deficit will be 2.7% of GDP in 2025-26 – meeting the second fiscal rule to get borrowing below 3% of GDP three years early – and by 2028-29 it falls to 1.2% of GDP, which is the lowest level since 2001-02.
  • Measures to tackle the tax gap will bring in an additional £4.5 billion a year by 2028/29, saving nearly £10 billion for the public purse when combined with policies announced at Autumn Statement.
  • The ‘non-dom’ regime will be replaced by a simpler system where arrivals have access to a more generous scheme for their first four years of tax residency before paying tax in the same way as everyone else, raising £2.7 billion a year by 2028/29 without deterring investment.
  • The Energy Profits Levy sunset clause will be extended from March 2028 to March 2029 to raise £1.5 billion a year, but legislation in the Finance Bill will abolish the Levy if market prices fall to their historic norm sooner than expected – maintaining investment in our energy security.
  • A duty on vapes will be introduced from October 2026 to protect young people and children from the harm of vaping, alongside a one-off increase in tobacco duty to recognise the role vapes play in helping people to quit smoking. This will raise a combined £1.3 billion by 2028/29.
  • Multiple Dwellings Relief will be abolished from June after showing no evidence of promoting investment in the private rented sector – raising £385 million a year – and the Furnished Holiday Lettings tax regime will be abolished from April 2025, raising £245 million a year while making it easier for local people to find a home in their community.

Chancellor delivers ‘Budget for Long-Term Growth in Scotland’

Secretary of State for Scotland Alister Jack said: “This Budget keeps Scotland and the whole of the UK on the right path for the future, with a clear focus on economic growth, jobs and prosperity.

“The UK Government’s direct investment in Levelling Up projects has now risen to over £3billion and that is fantastic news for communities right across Scotland.

“New measures announced today include £60million for Arbroath, Peterhead and Kirkwall and there is a further cash boost of £12.6million for cultural projects in Dundee, Dunfermline and Perth.

“Hardworking Scottish families will see more money in their pockets with a second National Insurance cut – guaranteeing lower taxes for Scottish workers – and a freeze to fuel duty is great news for motorists.

“The Budget freezes spirits duty for another year to boost our biggest export, whisky, and it also puts Scotland ahead in the new space race, with £10 million made available for Shetland’s SaxaVord spaceport and the exciting prospect of a first satellite launch before too long.  

“On top of this, the Scottish Government will receive an extra £295 million funding, in additon to the largest block grant since devolution began. There can be no excuses for not providing excellent public services in Scotland.”

LABOUR PARTY LEADER SIR KEIR HARDY’s RESPONSE TO THE BUDGET:

There we have it. The last desperate act of a party that has failed. 

Britain in recession. 

The national credit card – maxed out.

And despite the measures today, the highest tax burden for 70 years.

The first Parliament since records began to see living standards fall, confirmed by this budget today. 

That is their record. It is still their record.
Give with one hand, and take even more with the other, and nothing they do between now and the election will change that. 

I mean – over 14 years, we have all seen our fair share of delusion from the party opposite.
A Prime Minister who thinks the cost-of-living crisis is “starting to ease”. 

An Education Secretary who thinks concrete crumbling on our children deserves our gratitude. 

The former Prime Minister who still believes crashing the pound was the right path for Britain.
And today – a new entry in this hall of infamy.
The Chancellor, who breezes into this chamber in a recession and tells the working people of this country that everything is on track. 

Crisis, what crisis? 

Or – as the captain of the Titanic and the former Prime Minister herself might have said. Iceberg – what iceberg? 

Smiling as the ship goes down. 

The ‘chuckle brothers of decline’. 

Dreaming of Santa Monica, or maybe just a quiet life in Surrey not having to self-fund his election. 

Whilst the crew behind them scramble around for a GB News lifeboat. 

If only it weren’t so serious. 

Because Madam Deputy Speaker, the story of this Parliament is devastatingly simple. 

A Conservative Party – stubbornly clinging to the failed ideas of the past. 

Completely unable to generate the growth working people need. 

And forced – by that failure – to ask them to pay more and more, for less and less. 

And as the desperation grows they torch, not only their reputation for fiscal responsibility, but also any notion they can serve the country, not themselves. 

Party first, country second. While working people pay the price. 

Food prices – still 25% higher than they were two years ago. 

Rents up 10%. 

An extra £240 pounds a month for a typical family remortgaging this year. 

Because they lost control of the economy. 

They sent interest rates through the roof. 

They made working people pay.
They should be under no illusion – that record is how the British people will judge today’s cuts. 

Because the whole country can see exactly what is happening here. 

They recognise a Tory con when they see it, just as they did in November. 

Give with one hand, take even more with the other.
Madam Deputy Speaker, people have been living through this nonsense for 14 years. 

They know the thresholds are still frozen, dragging more and more people into higher taxes. 

They know that a Tory stealth tax is coming their way in the shape of their next council tax bill. 

The Levelling-up Secretary has told, not just this house, but every house in the country – he is coming for their council tax. 

Give with one hand, Gove in the other.
But most insultingly of all the British people know, that the only cause that gets this lot out of bed is trying to save their own skin.
Take the desperate move, after years of resistance, to finally accept Labour’s argument on the non-dom tax regime.

Has there ever been a more obvious example of a government that is totally bereft of ideas?

And if they are sincere in support for this policy now, then the question they must answer today is – why not do it earlier?

Why did they not stand up to their friends, their funders, and their family? 

Because if they had followed Labour’s example

3.8 million extra operations would have taken place by now.

1.3 million emergency dental appointments.

Free breakfast clubs for nearly 4.5 million children.

But if instead, this is just another, short-term cynical political gimmick then honestly – what is the point of them?

What is the point of a party that is out of touch, out of ideas and nearly out of road.
And we saw it last year as well – when only Labour’s policies on the cost-of-living made the difference.

And for those opposite a little downbeat about another intellectual triumph for social democracy, I say – get used to it. 

Because with this pair in charge – it won’t be long before they ask you to defend the removal of private school tax relief as well. 

But Madam Deputy Speaker, the harder they try with cynical games like this, the worse it will get for them. 

Because the whole country can see exactly who they are. 

Fighting for themselves. Politics not governing. Party first, country second.

And Madam Deputy Speaker, because we have campaigned to lower the tax burden on working people for the whole parliament – and we won’t stop now – we will support the cuts to national insurance today.

But I notice this – in 2022, when the Prime Minister was chancellor, he made this promise –

“I can confirm, in 2024, for the first time the basic rate of income tax will be cut from 20p to 19p.”

Having briefed that all week – that an income tax cut was coming – that promise is in tatters today.

And of course we support the fresh investment in our NHS. 

Although I have to note, that the Chancellor – when he was health secretary 10 years ago – promised to make the NHS paperless by 2018. 

And I know the Prime Minister’s fondness for Elon Musk extends to an enthusiastic embrace of his community notes on fact-checking. So I will say this bit slowly.
Labour supports the fuel duty freeze. That is our policy.
And I look forward to the Prime Minister’s acknowledgement of that in coming days.
We do ask the Chancellor to set out how he will make sure that this policy gets passed on to hard-pressed families at the pump?
Yet Madam Deputy Speaker, for all the fanfare around the tax measures today that straightforward story remains true. 

Taxes – a 70-year high. 

The British people – paying more for less. 

An unprecedented hit to the living standards of working people. 

The first time they’ve gone backwards over a Parliament, and they were cheering that today. 

And the reason is equally simple. There is no plan for growth. How can there be?
He can say “long-term plan” all he likes. We see the results.
Last year he announced 110 growth measures. He said we’ve “turned the corner” – and where are we now, Britain in recession. 

An economy smaller than when the Prime Minister entered Downing Street. The textbook definition of decline. 

That is their record.
I mean, after 14 years, who do they actually think feels better off?
Productivity is flat. 

Mortgages – through the roof. 

Housebuilding – off a cliff. 

Worklessness – rising and rising. 

Homelessness – never higher. 

Crime – virtually unpunished. 

Children who can’t see a dentist. 

Sewage in our rivers. 

Billions and billions of taxpayers’ money wasted. 

£7bn by the Prime Minister on Covid fraud alone. 

£500m on the Rwanda scheme that has achieved precisely nothing. 

I can keep going – a railway line that will never reach our great Northern cities. 

In fact – might not even reach central London. 

Billions upon billions for a white elephant without a trunk!
While today we learn – taxpayers are picking up the bill for the Science Minister’s libel.

And all the time – one thing that is growing – the waiting lists in our NHS now nearly 8 million.

They’ve had 14 years. 14 years. Running out of road.
Madam Deputy Speaker – this is what decline looks like. 

And the complacency they have shown today – it takes your breath away.
Britain deserves better. Britain deserves – a real plan for growth. 

An end to the 14 years of stagnation. 

Wealth creation across the whole of our country. 

Higher living standards for working people. 

This is the mission we need. 
But yet again, what we got was the same tired, old formula. 

The sticking plasters. The chopping and changing. The party-first, country-second politics. 

With no repudiation of the utterly discredited idea that economic growth is something the few gift to the many.
But even then Madam Deputy Speaker – I think his backbenchers are owed an explanation. 

Because when the Chancellor says Britain has grown more quickly than countries like Germany, over the last 14 years, I am sure they will be shocked to learn that this is a statistical sleight of hand.
And when it comes to GDP per capita. In other words – the growth that makes the difference to the pockets of working people. Their record is much worse. 

Indeed, in per capita terms – our economy has not grown since the first quarter of 2022. 

The longest period of stagnation Britain has seen since 1955.
In fact, the Chancellor invited us to look at those figures – the OBR says GDP per capita will be 0.75% lower in 2028 than they forecast in November of last year.

That was the number they said we should watch – 0.75% lower in 2028.

And they can call this a technical recession. 

But there is nothing technical about working people living in recession for every second the Prime Minister has been in power. 

This is a Rishi recession. 

And if the party opposite really wants to know what hides in the Chancellor’s spreadsheets, then they will see that it is only the record levels of migration they have delivered which has prevented an even deeper decline. 

And that is a record they must stand on at the election.
Because – while on these benches we do not demean for a second, the contribution migrants make to a thriving economy – it is high time the party opposite was honest with the British people about the role migration plays in their economic policy. 

Because right now – in terms of growth – that is all they have. There is nothing else.
No plan – to get Britain building again with a reformed planning system. 

No ambition – to invest in clean British power for cheaper bills and energy security. 

No inclination – to move away from insecure, low-paid jobs and strengthen employment rights so we can finally make work pay.
And Madam Deputy Speaker – where is the urgency on affordable housing? 

How can they look at Britain now – and not see this is a massive priority? 

Never again – will they be allowed to pose as the party of home ownership and aspiration.
Although I have to say – given the disaster that has befallen his childcare plans. Perhaps that is for the best. 

Because Madam Deputy Speaker, the cost of childcare is a huge challenge for millions. 

Parents need him to deliver on his promise.
And it seems the Chancellor has been taking lessons on marketing from the Willy Wonka Experience in Glasgow. 

All is not as it seems. 

And with just over three weeks to go he has to came clean.
Because up and down the country – parents need to know. 

Will they get their entitlement in April? 

Or is this just another example of their reckless on governing?

Headlines over delivery. 

Promises without plans. 

Policies that unravel at the first contact with reality.
The lesson – crystal clear, that those who broke our economy cannot be trusted to repair it. 

The Tory credit rating is zero, it is time for change with Labour.
And that is what today’s budget should have been about.

A last chance for the Government to show it understands the economic reality of our volatile world. 

That global supply chains can be weaponised by tyrants like Putin. 

That a sticking plaster approach to public investment will cost Britain more in the long-run. 

And that trickle-down nonsense means working people pay the price.
It could even have been a moment of contrition. A reflection on their fiscal recklessness. 

An apology perhaps. For the ridiculous chaos they inflicted on the businesses, communities and investors in this country. 

And yet still no stable industrial strategy. 

Still no national wealth fund to crowd-in private investment. 

Still no urgency on speeding up critical infrastructure projects.

And no recognition that they have left our standing as a country that always keeps its promises in tatters.
And if they don’t like that accusation. Then look no further than the grotesque spectacle of ducking their responsibility to the victims of the infected blood and Horizon scandals. 

“One of the greatest miscarriages of justice in our nation’s history” – those were the Prime Minister’s words just two months ago. 

Today – justice kicked beyond the general election.
No, Madam Deputy Speaker – Britain can see exactly who they are. 

And the reality is, there is no path to economic stability, no way to a calmer, less chaotic politics, with the party opposite in power. 

Because chaos is now their worldview. A mindset that sees Britain’s problems as opportunities they can exploit.
Whether, like the Chancellor, that’s out of desperation because they can’t solve them. 

Or whether, like the Members for Fareham or South West Norfolk, they have no intention of solving them whatsoever. 

For a party this weak and divided – the end result is always the same.
A vicious downward spiral. 

Chaos feeding off decline. 

Decline feeding off chaos. 

While working people pay the price. 

The British people know – this will not stop. Five more years and it will only get worse. 

There will be no change in direction, without a change of government. 

And that leaves Britain a nation in limbo.
Unable to shake off the Tory chaos that dragged us into recession and loaded the tax burden onto the backs of working people, and maxed out the nation’s credit card.
Britain deserves a government ready to take tough decisions. 

Give our public services an immediate cash injection. 

Stick to fiscal rules without complaint. 

Fight for the living standards of working people. 

And deliver a sustainable plan for growth.
So we say to the Chancellor and Prime Minister. 

It is time to break the habit of 14 years.
Stop the dithering, stop the delay, stop the uncertainty.
And confirm 2 May as the date of the next general election.
Because Britain deserves better.
And Labour are ready.

Spring Budget ‘a betrayal of public services’

Deputy First Minister responds to Chancellor’s statement

The Spring Budget has failed to deliver the funding Scotland needs for public services, infrastructure and cost of living measures, Deputy First Minister and Finance Secretary Shona Robison has said.

The Budget provided less in Barnett consequentials from health than in-year health consequentials of 2023-24, and failed to deliver more capital funding for infrastructure.

The Finance Secretary said: “Today’s UK Spring Budget is nothing short of a betrayal of public services across the UK. Our hope had been the Chancellor would have eased pressures on services – not least by providing more funding for capital. This would have helped support our NHS and the delivery of more affordable housing, but it would also have created jobs and economic growth, as well as helping secure a just transition to net zero.

“When more support is desperately needed for public services and infrastructure, for greater cost of living measures, and for money to aid our efforts to reduce carbon emissions – Scotland has been badly let down by the UK Government.

“Today’s statement provides not a single penny more for capital funding. And the Barnett consequentials from health that were signalled by the Chancellor are actually less than the in-year health consequentials of 2023-24 and less than what is needed to address the pressures we face. I can guarantee that this Scottish Government will not be passing on this UK Government cut to our NHS.

“The National Insurance cut fails to offset the crippling effects of the Cost of Living crisis. There is also little detail of the spending cuts needed to pay for it. Even before today’s Spring Budget the Institute for Government described its spending plans as a ‘fantasy’, with no detail on where cuts will fall.

“Today’s statement merely adds to that: according to the UK Government’s own financial watchdog, the Office for Budget Responsibility, the Treasury may not even have the headroom available that today’s commitments are based on.

“Public services up and down the UK are in real need of investment, and they’re being sacrificed to deliver unsustainable tax cuts.”

A spokesperson for the Joseph Rowntree Foundation said: “Last year nearly 4 million people in the UK experienced destitution, including 1 million children. The number of people experiencing destitution has more than doubled in the last 5 years.

“❌ A 2p cut in National Insurance will not help those who need it the most.”

#Budget2024

#Budget2024

TUC slams “deeply cynical pre-election gimmicks”

Cutting public services alongside tax cuts is “a political con trick – giving with one hand while taking with another” says union body

Commenting on today’s (Wednesday) budget and OBR report, which shows:

  • Average GDP growth has been just 1.5% since 2010 – the worst for any government since the Great Depression.
  • The UK’s pay crisis continues with this year’s real pay still below the 2008 level.
  • The Conservatives have been the worst government for living standards since records began.
  • Household unsecured debt is expected to rise by £1,600 per household this year.

TUC General Secretary Paul Nowak said: “This is a deeply cynical Budget. The Chancellor knows he won’t have to live with the consequences of the savage spending cuts he’s already imposed across large parts of our public services.

“At a time when our schools, hospitals and councils are on their knees, we needed a serious plan to rebuild Britain. All we got was wishful thinking on productivity and pre-election gimmicks.

“This was the last roll of the dice from a desperate government that has presided over 14 years of economic failure on growth and living standards.

“The Tories’ record speaks for itself.

“The worst real wage squeeze in modern history. The worst growth since the Great Depression. Crumbling classrooms and record NHS waiting lists.

“The country deserves so much better.”

On the cut to NI Paul said: “After 14 years of Conservative misrule millions are worse off.

“We all want to ease the financial pressure on families. But this is a political con-trick – giving with one hand while taking with another.

“No one wants tax cuts at the expense of their local services. We need a proper long-term plan to raise wages for everyone and to restore public services.”

On the Chancellor’s action to make non-domiciled residents pay their fair share of tax, Paul said: “The Chancellor’s action on non-doms is too little too late. People will never forget that when our schools and hospitals were starved of funds, the Tories put the very wealthiest first.

“His failure to act sooner on non-doms cost the exchequer billions in lost revenue.”

STAKEHOLDERS REACTION TO SPRING BUDGET:

Commenting on the overall Spring Budget package. Craig Beaumont, Chief of External Affairs, the Federation of Small Business said: “We’re pleased today to see the Chancellor bring forward positive measures to grow the economy – especially the increase to the VAT Threshold, a particularly key FSB ask for this Budget after a 7-year freeze, and the cut to self-employed National Insurance Contributions (NICs) which is a long-held campaign since FSB was formed 50 years ago this year.

“The Treasury has worked constructively with FSB through the Budget process, and there are several other measures in the full Budget that are welcome, including the extension of the Recovery Loan Scheme as it evolves to create the Growth Guarantee, and a clear direction to HMRC to reduce its administrative burden.

“This builds on positive measures announced in the Autumn Statement on tackling late payment as well as extending the 75% SME Retail, Hospitality and Leisure Business Rates Discount and freezing the small business rates multiplier – decisions that were tough choices given tight public finances, but target resources where they are most needed, and have the biggest bank for their buck – in small businesses right across the country.”

Doug Mutter, Director at VPZ, believes today’s proposed vape tax rise will penalise the most vulnerable in society and damage the UK’s 2030 Smoke Free ambitions.   

He said: “Vaping is the most effective way for people to quit smoking and continues to transform the health and financial wellbeing of smokers throughout the country.   

“From this perspective it is alarming that the Chancellor has announced a consultation for taxation on vaping products in today’s budget.   

“Increasing taxes on vaping will directly penalise and make products prohibitive for the most vulnerable in society at a time when many are doing their best to make positive life choices.   

“The idea of raising tobacco duty to encourage more smokers to switch, whilst at the same time introducing a punitive vaping tax, is fundamentally flawed and will only punish people looking to quit smoking. 

“There is a genuine fear that any move in this direction will further fuel the illicit black market and act as a deterrent for people looking to quit, which will hugely damage the progress we have made in reaching the UK’s 2030 Smoke Free ambitions.

“Rather than exploring increasing taxation, the Government needs to take on board our recommendations and implement a licencing scheme where there are proper enforcement and policing in place to tackle youth uptake and the existing black market,” he added.

Irene Graham OBE, Chief Executive Officer, ScaleUp Institute said: ““The Budget today takes forward a number of important initiatives that should support the scaleup economy across the UK, including the new British ISA and Bond schemes and pension fund disclosures, alongside the skills and sector initiatives such as those linked to AI, Creative and Advanced Manufacturing.

“It is also good to see the announcements on LIFTS partners and the Growth Guarantee scheme, as well as the development of the PISCES initiative; each of which should further support funding towards scaling firms. We look forward to continuing to work with Government and the private sector on the implementation of these.”

A Kraft-Heinz spokesperson said: “We welcome the support this Budget will bring for businesses like Kraft Heinz which are looking to invest more in Britain’s future.

“In particular, the increased investment in GIGA will help us on our path to Net Zero; providing new funding for Hydrogen projects like the one we recently announced at our Kitt Green factory in Wigan.”

Commenting on the Childcare package, Chris McCandless, CEO , Busy Bees in Europe, said: “When the Chancellor announced the expansion of subsidised childcare for working families 12 months ago, we were supportive of the commitment to give more children the best start in life.

“To create the additional capacity, we needed to invest in our staff and centres. For any business that is difficult without funding certainty, so we’re very pleased that the Government has provided this clarity today.

“As the UK’s largest childcare provider, it gives us the confidence to invest to grow our business and support more families, in the knowledge that the funding we receive will rise in line with inflation and other critical fixed costs.”

Commenting on the freeze of alcohol duty from 1 August 2024 until 1 February 2025,Nuno Teles, Managing Director, Diageo GB: “Cheers to the Chancellor for freezing duty and backing both the pub and our homegrown Scotch sector.

“This decision gives drinkers and pub-goers across the country reason to celebrate this summer with a Guinness or Johnnie Walker!”

Commenting on Fuel Duty, Simon Williams, Head of Policy, the RAC said: “It’s positive to see the Chancellor has kept fuel duty low as drivers are still contending with major price increases at the pumps, sparked by the rising cost of oil.

“RAC Fuel Watch analysis shows petrol and diesel prices rose by 4p and 5p-a-litre in February – the largest increases in the last five months…”

With Jeremy Hunt today announcing the extension of the fuel duty relief, Richard Evans, head of technical services at webuyanycar comments: “With drivers set to continue to benefit from frozen fuel duty rates for another 12 months, the government relief will be a welcome boost for many motorists.

“Our research showed that rising motoring costs are unsurprisingly taking a toll, with 4 in 10 drivers (40%) trying to drive less as a result of expensive fuel. 

“Drivers wanting to make the most out of their fuel can take small steps to save on consumption. Keeping their car in a good working condition will ensure fuel isn’t wasted on broken parts, and driving smoothly by accelerating gently and using the correct gear will save as much fuel as possible. These factors can have a big impact on fuel consumption which could end up saving drivers when getting around.

Amidst the fluctuation of fuel prices, it’s important that drivers are aware of the cost to fill up and where they can get the best deal in their local area. Using our fuel cost calculator, drivers can estimate their weekly, monthly (and even annual) fuel spend.”

Ian Johnston, Osprey Charging CEO, said: “Today’s announcement of the spring budget from the Chancellor is a huge missed opportunity to increase access to public EV charging for the UK’s drivers.

“There have been calls from across the industry to lower the VAT rate on public charging from 20% to 5%, in line with that of charging at home, which would be a massive boost for EV drivers, and those considering the switch to electric.

“Osprey itself now has over 1,000 live public EV chargers available across Great Britain, and a vast number of EV drivers rely on the public network – a VAT reduction would have gone a long way in supporting those without access to a domestic charger.

“Here at Osprey, we will continue to advocate for a reduction in VAT on public charging to see an equalisation with the VAT level on domestic charging.

“In 2023, we successfully grew our public charging network by 150% and received a number of consumer accolades for the quality of our charging experience, but it’s imperative that this is supported by the government taking action in scenarios such as today’s budget.”

The Chancellor’s Spring Budget has been slammed as a ‘flop’ that will help drive hard working people and investors out of the UK by the CEO and founder of one of the world’s largest independent financial advisory and asset management organisations.

The comments from deVere Group’s Nigel Green follow Jeremy Hunt delivering his Spring Budget 2024 to Parliament. It was the Chancellor’s fourth fiscal event, coming just over three months after his 2023 Autumn Statement.​

The deVere CEO says: “Going into the Budget, we already knew that the Chancellor would announce a further cut to national insurance and extend a freeze on fuel and alcohol duty in a bid to ease the strain on people’s finances.

“We knew this because it was announced in advance, presumably in an attempt to get as much mileage from the good news as possible with voters who go to the polls this year.​

“But the fact remains that the personal allowance – the amount people can earn before starting to pay tax – and the thresholds for the higher and additional rates – are frozen again. This means that as wages increase, more people will be pushed into higher-rate tax bands.​

“The tax burden in the UK is now to reach the highest levels in 70 years. The Chancellor is dangling the carrot to potential voters by hinting at more tax cuts to come in the next Parliament – but only if the Conservatives win the general election this year.​

“Against this backdrop of increasing tax burdens, and an economy in a deeper-than-expected technical recession, meaning less investment for businesses and jobs, we expect that there will be a growing number of hard-working people across the country looking for work and life opportunities overseas.​

“Being squeezed harder in the UK, it can be reasonably assumed that they will be looking at destinations that offer lower tax liabilities, a lower cost of living, a growing economy, and more career, as well as lifestyle, opportunities.”​

Also, the non-domiciled tax status is to be scrapped by the Chancellor to fund tax cuts.​

“The scrapping of the non-dom tax status is likely to be a ‘push factor’ from the UK, depriving the country of considerable direct and indirect investment as those affected are likely to simply move to more attractive jurisdictions.​

“In many ways the Chancellor’s Spring Budget was lacklustre. ​It was a flop and that which could be a masterclass in the Law of Unintended Consequences as it could push more hard-working people and investors out of the UK.”

Commenting on the measures in the Spring Budget targeted at supporting the Creative Industries, Andrew Lloyd Webber said: “This is a once in a generation transformational change that will ensure Britain remains the global capital of creativity.”