Yesterday, the true cost of Brexit – and the UK’s financial and economic future – was revealed by the Chancellor. It is a cost which will be paid through lower growth, lower tax revenues, higher borrowing, higher debt and higher inflation.
That is the future the Autumn Statement revealed we are facing as a result of leaving the European Union.
Under these plans, Scotland will see a real terms cut to the day-to-day budget that pays for public services. By 2019-20, it is expected to be almost 9% lower over the decade, reducing the scope we have to mitigate against UK Government austerity and invest in growing our economy.
Even on the much heralded investment in infrastructure, all we have seen is the Chancellor moderating cuts already imposed on Scotland.
As a result, Scotland’s capital budget will still be around 8% lower in real terms across this decade.
It is also deeply disappointing that the Chancellor has not chosen to implement the strong package of support needed for the North Sea which continues to be impacted by low oil prices.
Most shocking, perhaps, is the Chancellor’s failure to commit a single extra penny for the NHS today. This blatant disregard of our public services is deeply worrying. I am also concerned by the lack of commitment to the single market which would have provided a level of certainty in light of the weak economic outlook created by Brexit.
Above all, this was a massive missed opportunity to end austerity. The Chancellor has failed to ease the punitive cuts that are hitting so many Scottish families. Instead he has continued the damaging austerity that is hitting the budgets for public services, hammering family finances and failing to revive the economy.
Today’s Autumn Statement is effectively tinkering around the edges and, while I welcome the focus on capital expenditure, there is still not enough to help hard pressed families.
I will publish the Scottish Draft Budget next month that will support our economy, tackle inequality and provide high quality public services for all – underlining the very different approaches our two governments take.