First Minister John Swinney has warned the UK Government is “sleepwalking” into a major energy and cost of living crisis as pressure mounts on ministers to act.
The warning follows a meeting of the Scottish Government’s Resilience Committee, where concerns were raised about rising prices and the potential impact on households and businesses.
Swinney said the lack of immediate action from the UK Government risks leaving people exposed to further increases in energy and food costs.
The comments come as Chancellor Rachel Reeves indicated it was “too early” to confirm what financial support may be offered, suggesting any measures may not come until later in the year.
At the same time, global economic bodies have raised concerns about the direction of travel.
The International Monetary Fund has warned that ongoing tensions linked to the conflict involving Iran could drive higher energy prices, rising food costs and a broader squeeze on living standards.
The UK is seen as particularly vulnerable to these pressures, despite Scotland’s capacity for renewable energy production.
“I am concerned that the UK Government is sleepwalking into a potentially unprecedented crisis.
“The lack of real action, despite warnings for weeks of the seriousness of the situation, is completely unconscionable to struggling households and businesses across Scotland.
“Independent European nations such as Spain and Ireland have taken decisive action to proactively protect their people from the crisis that we are now facing, and have stepped up with billions of pounds worth of energy support packages.
“Yet here in broken, Brexit Britain, energy rich Scots are being expected to go fuel poor.”
The First Minister pointed to measures being introduced in Scotland, including a new emergency support scheme for households affected by rising heating oil costs.
However, he stressed that many of the key powers needed to address the situation remain reserved to the UK Government.
“The Scottish Government’s emergency support scheme for households affected by sharp increases in the cost of heating oil opens today, but it is vital that the UK Government which holds the majority of the levers to make a real difference sets out what further action it will take in response to this current crisis.
“We are facing a pivotal moment and the Prime Minister must act now.
“He must not repeat the mistakes of Boris Johnson who was out of his depth and unwilling to act to protect people during the early days of the COVID pandemic.”
The warning adds to growing political pressure as governments across the UK face calls to respond to rising costs and increasing economic uncertainty.
With global instability continuing to influence prices, the coming months are expected to be critical in shaping the response to what could become a wider economic challenge.
