The UK economy is at a critical juncture, with soaring borrowing costs, stagnant growth, and mounting public debt, prompting the SNP to call for immediate intervention from the Labour government.
SNP Westminster Leader Stephen Flynn MP has urged the Chancellor to address Parliament and outline emergency measures to tackle the escalating crisis.
Flynn criticised the Labour government’s handling of the economy, branding it “clueless and incompetent” and blaming it for the worsening financial outlook.
The SNP leader argued that Labour’s self-imposed fiscal policies and refusal to reconsider EU single market access have shackled the UK’s economic growth potential.
Warnings from experts paint a grim picture, with the Institute for Fiscal Studies suggesting Labour may resort to deeper austerity cuts to adhere to its own fiscal rules.
UK borrowing costs have reached a 30-year high, while the pound has dropped to its lowest value in over a year, exacerbating economic pressures.
Mortgage lenders have hiked rates, prompting concerns that others will follow suit due to spiralling government borrowing expenses.
The British Retail Consortium and major supermarkets have cautioned that food prices could surge, with food inflation forecast to hit 4.2% later in the year, linked to Labour’s controversial National Insurance tax hike.
Business confidence has plunged to a two-year low, according to the British Chambers of Commerce, with rising taxes and inflation cited as key concerns for many companies.
The Chartered Institute of Procurement and Supply has flagged severe supply chain disruptions worsened by Brexit, forecasting import costs could rise by as much as 20%.
The S&P Composite PMI survey revealed the fastest rate of job losses in the manufacturing and services sectors since early 2021, further highlighting the depth of the economic malaise.
Flynn stressed that Labour had ignored warnings on key policies, including National Insurance, and accused them of failing to deliver on promises to improve the economy.
The SNP leader warned that the UK faces a prolonged cost-of-living crisis, rising unemployment, and the return of austerity if Labour fails to act swiftly.
He called on the Chancellor to reverse damaging budget measures and prioritise growth to steer the country away from impending disaster.
Flynn concluded by emphasising the high stakes for families and businesses, especially in Scotland, who stand to bear the brunt of Westminster’s economic mismanagement.