The SNP has warned Rachel Reeves that she “must not break the Labour Party’s election promise to voters that there will be no cuts” – amid widespread reports the Chancellor is paving the way to impose cuts to public services and infrastructure investment.
In the Sunday Times, The Observer and other newspapers, there are widespread reports the Chancellor is planning to cut investment in hospital building, railways and roads among other public services and infrastructure.
It comes despite Rachel Reeves pledging during the election “I don’t want to make any cuts to public spending… There’s not going to be a return to austerity under a Labour government”.
Throughout the election, the SNP repeatedly warned that the Labour Party’s decision to copy damaging Tory spending plans and fiscal rules would mean around £18billion of cuts or tax rises.
Senior Labour figures including Keir Starmer, Rachel Reeves, Ian Murray and Anas Sarwar all denied this – with the Scottish Labour leader accusing the SNP of spreading “misinformation and lies” and “ludicrous claims and attacks”, and the Scottish Secretary accusing the SNP of “peddling mince”.
The Institute of Fiscal Studies (IFS) also criticised the Labour Party during the election for attempting to pull the wool over voters eyes on public spending, with director Paul Johnson warning:
“Oh dear, oh dear.
“The old we may open the books and discover the situation is even worse.
“The books are wide open, fully transparent.
“That really won’t wash.”
Leading economists and experts have now criticised the Labour government for its plans to impose unecessary cuts to public services and capital spending.
Andrew Sentance, former CBI Director of Economic Affairs and member of the Bank of England’s Monetary Policy Committee said:
“Labour’s fiscal rules allow them to borrow to fund capital spending.
“So why the speculation about cutting capital projects to plug the alleged £20bn “black hole”?
“It is utter fiscal nonsense – even less coherent than Tory economic policies, which is saying something!”
Commenting, SNP Economy spokesperson Dave Doogan MP said:
“People in Scotland voted for change at Westminster.
“They didn’t vote for cuts to hospitals, railways and roads.
“They didn’t vote to push more children into poverty – and they certainly didn’t vote for another decade of Westminster austerity cuts imposed by a Labour government.
“The SNP repeatedly warned the Labour Party that their fixation with copying damaging Tory spending plans and fiscal rules would mean around £18billion of cuts or tax rises.
“Labour denied it throughout the election – but now they admit the cuts will be even deeper.
“Rachel Reeves is repeating the same failed austerity arguments made by former Tory chancellor George Osborne.
“She must not break the Labour Party’s election promise that there will be no cuts.
“Instead, she must deliver the major funding boost that the NHS and public services need.
“If the Labour government takes the axe to our public services, they will be breaking their word and failing to deliver the change people in Scotland voted for.
“The SNP agree Britain is broken after fourteen years of Tory austerity – but the answer doesn’t lie in imposing even more Westminster cuts and Brexit, which are leading causes of the crisis in the UK.
“You can’t cut your way to more hospitals or better services – and you can’t grow the economy, and build a country fit for the future, if you slash infrastructure investment.
“The SNP will work with Labour to ensure that the promise of change is honoured.
“If they fail, we will hold them to account and do everything we can to defend Scotland’s interests.”
