UK Government must "meet the moment" with decisive action.
First Minister has called for a new package
of support for industry from the UK Government in the face of
global economic uncertainty.
As financial markets react to global events, Mr Swinney has
called on the Prime Minister and the Chancellor to change their
fiscal rules and commit to a package of investment to support
business, workers and consumers.
The First Minister said:
“We are currently enduring a time of global financial and
economic uncertainty and volatility. But while we are not
immune to global trends, we can be confident in the strength of
Scotland's economy
“Indeed, throughout my time in the United States since last week,
there has been a clear confidence in Scotland as a place to do
business and as a destination for investment.
“However, the global economy is clearly going through a time of
upheaval and it is vital that we see strong action to meet the
moment, support Scottish industry and ensure workers and
consumers are protected.
“My government will continue to do everything in our power to do
that, but given where powers over the economy sit, this will
require clear, determined and decisive action from the UK
Government.
“The old economic orthodoxies of Westminster will not be enough
to meet a moment of real global challenge. The UK
Government cannot meet this global uncertainty with austerity –
we need to see a new approach which provides investment and
support for industry as we are seeing in countries like
Spain.
“It is now obvious that the era in which the UK Government's
fiscal rules were set is over. The Prime Minister and the
Chancellor must accept that new reality, end their outdated
commitment to the fiscal rules and deliver serious investment to
support industry.
“And in the face of this economic volatility, the last move any
serious government would implement is a tax on jobs. The
increase in employer's national insurance contributions was
always the wrong move – but the Prime Minister should not risk
further economic damage by making it more difficult for business
to take on or keep staff. The Chancellor should
abandon the national insurance hike immediately.
“The events of the last few days require truly bold action from
the Prime Minister. He cannot simply respond to an
unprecedented situation by continuing with a plan set in
completely different circumstances and which already looks doomed
to failure."
Background
Charter for Budget
Responsibility: Autumn 2024 - GOV.UK
