The SNP has accused Chancellor Rachel Reeves of fuelling damaging economic speculation after confirming that Labour’s forthcoming UK budget will be “brutal.”
Business leaders across Scotland have expressed concern following the Chancellor’s comments, warning that vague signals about tax rises and spending cuts are deepening uncertainty for employers and households alike.
SNP Economy spokesperson Dave Doogan MP said Reeves has “completely lost control of damaging speculation,” accusing Labour of recklessly igniting a new wave of fear around public finances and business growth.
“It was the world’s worst-kept secret that Labour would use this budget to fill another Treasury black hole,” he said.
“But by announcing it a month early, without detail, they’ve triggered a runaway train of damaging speculation.”
“There are still 38 days until the budget is revealed.
That’s 38 days of speculation about where the axe will fall and 38 days of unnecessary fear for businesses, workers and families.”
The warning comes amid growing anxiety within Scotland’s business community.
A recent survey of 440 Scottish firms, carried out with the Fraser of Allander Institute, revealed that over three-quarters of companies now see labour costs as a major threat to margins, with many citing the recent increase in National Insurance Contributions as a critical factor.
Seventy-two percent of businesses surveyed also said they fear further tax rises in the UK budget, as the Labour government looks to restore public finances.
Doug Smith, Vice President of Scottish Chambers of Commerce, said there is “growing unease about next month’s UK Budget,” and warned that a lack of clarity from Westminster is already dampening business confidence.
Doogan also criticised reports that Labour may attempt to justify the cuts by blaming Brexit, despite backing a hard Brexit deal and ruling out rejoining the EU.
“The idea that Labour can blame Brexit without any intention of reversing it is an insult to people’s intelligence,” he said.
“They voted alongside the Tories to impose a hard Brexit.
“They refuse to fix the damage.
“And now they’re using Brexit as a smokescreen for more cuts.”
He added:
“Rather than causing panic, the Chancellor should follow the lead of European economies that have adapted more flexible fiscal rules.
“Instead, we’re getting Tory-lite austerity under a Labour name.”
The SNP argues that the only route to protecting Scotland from repeated economic shocks and Brexit fallout is through independence.
“Scotland deserves a fresh start, not a future of Westminster mismanagement and broken promises,” said Doogan.
