Stop-gap budget doesn't cover the hole in businesses' budgets

As Kate Forbes MSP, Cabinet Secretary for Finance, unveiled the Scottish Government’s budget, the ASI’s Head of Government Affairs John Macdonald offered his verdict:

"The SNP has tried at every turn to make the emergency of the pandemic about the urgent need for independence. So it is on one hand unsurprising it would use its budget announcement to do the same, but on the other beggars belief it would criticise the Prime Minister for treating the Union as urgent. 

"Kate Forbes announced a barrage of spending based on borrowing made by the British government on their behalf and are continuing with plans to pump up public sector pay. It’s a kick in the teeth for private sector workers and business owners who can’t make ends meet with government restrictions on trading still in place.

"Scottish businesses heard a lot of lovely words about supporting businesses but many local authorities are still to even open application processes for firms to get the support they need to survive this pandemic. That means businesses going to the wall, it means creditors losing out, workers losing their jobs, and it means a risk of economic catastrophe on top of tragic loss of life. 

"At the end of the day, this budget was a stop-gap and doesn't cover the hole in businesses' own budgets. The real event will be in a month’s time with Rishi Sunak, when we see how British taxpayers’ combined strength can deliver to support and restart the Scottish economy." 

For further comment or to arrange an interview, please contact Matt Kilcoyne via 07904099599 or email matt@adamsmith.org