First Minister Nicola Sturgeon has made clear she will not be following the UK Chancellor’s growth plans, which she branded “morally repugnant, fiscally damaging and reckless”.
The SNP leader was clear in her criticism three days after MP Kwasi Kwarteng stunned observers by announcing a £45 billion package of tax cuts.
The pound plunged to a record low against the US dollar by Monday morning.
Investors worry the gap in spending caused by the tax cuts will not be fully funded.
Inflation is running at 10%, adding to concerns about the impact on ordinary households.
Ms Sturgeon said on Monday: “The mini-budget was a catastrophic disaster that is playing out in real time before our eyes right now.
“The UK economy is in crisis, we’re seeing sterling in freefall, we’re seeing the cost of Government borrowing ratcheting up.
“We saw on Friday from the Chancellor policies that are, in my view, morally abhorrent, racking up borrowing that future generations will have to repay, not to invest in the overall wellbeing of the economy or help the majority, but to make a relatively small number of already rich people even richer – that’s indefensible.”
What did the Chancellor do?
The Chancellor scrapped the 45% top rate of tax for higher earners, meaning the top rate is now 40% in England.
In Scotland, a top rate of 46% on earnings over £150,000 remains.
Mr Kwarteng cut the basic rate to 19p. In Scotland there is already a starter rate of 19p and a basic rate of 21p.
I believe it’s the British people that are going to drive this economy.
– Chancellor Kwasi Kwarteng.
It means the SNP is now forced to consider the new tax landscape across the UK before making any adjustments or leaving the new wider gap.
On Sunday the Chancellor said there is more to come.
“I want to see over the next year, people retain more of their income, because I believe it’s the British people that are going to drive this economy,” he said.
On Monday morning, Scottish Tory MSP Liz Smith accepted there was a “very difficult message” to sell when people see bankers’ bonuses are increasing.
But she added: “The biggest picture within this is to ensure the growth within the economy.”