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Chancellor under assault over Budget

Chancellor of the Exchequer Philip Hammond
Chancellor of the Exchequer Philip Hammond

Chancellor Philip Hammond was accused of “tinkering around the edges” last night as he faced attacks from all sides after delivering his first and last spring Budget.

The Tory frontbencher came under assault from opposition parties within minutes of finishing his speech.

SNP economy spokesman Stewart Hosie said the biggest threat was the “Brexit shambles” facing the UK.

He also told MPs that Scotland’s budget faced a real terms cut of £2.9billion as a result of ten years of a Tory government “the people of Scotland did not vote for”.

He added: “We see that forecast debt, deficit and borrowing levels are as bad or have barely changed since last autumn – with little hope for any significant improvement.

“The chancellor is tinkering around the edges, rather than addressing the very real concerns of households and businesses throughout the UK.”

Scottish Labour Leader Kezia Dugdale also criticised the Budget, which she said had been billed as “upbeat” but in fact offered an insight into the “devastating impact a chaotic Tory Brexit” would have on families.

The Aberdeen-born MSP added: “The chancellor could have brought an end to seven years of damaging Tory austerity, but instead he doubled down by imposing cuts to public services and welfare.

“Despite the £350million extra for the Scottish Government, the reality is that by the end of this decade up to £1billion will have been cut from Holyrood’s budget.”

She also voiced disappointment that Mr Hammond did not exempt Scotland’s fire and police services from their VAT bill.

Scottish Liberal Democrats Leader Willie Rennie said the Budget had revealed the “emerging cost of the Conservatives’ hard Brexit”.

Meanwhile, his colleague Alistair Carmichael criticised the planned changes to National Insurance.

He said these could mean 2,600 people in the northern isles – and 4.8 million across the UK – paying more tax.

The former Scottish secretary also insisted more incentives should have been offered to encourage exploration for new oil and gas deposits in the North Sea.

Aberdeen South MP Callum McCaig said the government had missed an opportunity to undo its “toxic unstable legacy on energy”.

He added: “Whilst the SNP welcome the development put forward by the UK Government on oil and gas, it is simply a reheated announcement from last year, the industry needs action now.”

Labour Leader Jeremy Corbyn said the chancellor’s plans lacked ambition and fairness.

Mr Hammond will deliver another Budget later this year as it is moving to the autumn.