Rishi Sunak accused by SNP of giving 'empty' UK economy statement

Chancellor Rishi Sunak has been accused by the SNP of delivering an “empty” statement rather than meaningful support for Scottish businesses affected by the latest Covid lockdown.

Mr Sunak warned on Monday the UK economy would “get worse before it gets better” as he cautioned the “road ahead will be tough” in the recovery from the Covid-19 pandemic, as he updated MPs in the House of Commons.

He said he would “bear in mind” Tory calls to extend business rate relief and provide further support for the hospitality sector at the Budget in March.

Chancellor of the Exchequer Rishi Sunak giving a statement on the economy in the House of Commons. Picture: PA Wire

But SNP shadow chancellor Alison Thewliss demanded Mr Sunak “step up or step down” as she called for him to commit to extending the furlough scheme for as long as necessary.

“There was so little that was new in this economic update that it can only be described as empty,” she said.

"This is deeply concerning as we start to see the devastating economic consequences of this Tory hard Brexit unfold, on top of the economic impacts of the coronavirus pandemic and a decade of austerity.

“Millions across Scotland and the UK are still left without vital support, and many are facing uncertainty as to whether they can rely on furlough if restrictions continue, or if the Universal Credit increase will continue beyond April.

"At the same time, Scottish businesses are left without the £375 million they were promised – money that is desperately needed at this critical time.

“It seems the Chancellor has decided – after backtracking and editing the press release overnight – that Scotland’s businesses are not entitled to the same financial support from the UK Government as English businesses. This is despite the fact people in Scotland pay tax like the rest of the UK.

"With businesses, industries and communities across Scotland being hit by coronavirus and the rising costs of Brexit, the Chancellor must deliver the scale of investment needed to protect jobs and livelihoods, keep businesses afloat and kickstart the economy.

"This must include the missing £375m promised to Scottish businesses, support for the three million excluded, and a multi-billion pound package of compensation to Scotland to mitigate the damage caused by a Brexit it didn’t vote for.

“The Tories must also commit to extending furlough for as long as necessary and heed calls from the SNP and anti-poverty organisations across the UK to make the £20 boost to Universal Credit permanent, as well as extend it to legacy benefits.

"Scotland can make different choices for an investment led recovery, which protects jobs, but only if we have the powers and funds required. It is clear that can only be achieved by being an independent country inside the EU.”

Addressing MPs, Mr Sunak had earlier said: “Even with the significant economic support we’ve provided, over 800,000 people have lost their job since February.

“And while the new national restrictions are necessary to control the spread of the virus, they will have a further significant economic impact.

“We should expect the economy to get worse before it gets better.”

He defended the Government’s “comprehensive economic plan”, noting the fiscal stimulus amounts to more than £280 billion.

MPs heard 1.2 million employers have furloughed almost ten million employees while almost three million people have benefited from self-employment grants.

Mr Sunak said: “Sadly, we have not and will not be able to save every job and every business.

“But I am confident that our economic plan is supporting the finances of millions of people and businesses.”

Mr Sunak went on: “While the vaccine provides hope, the economy is going to get worse before it gets better.

“Many people are losing their jobs, businesses are struggling, our public finances have been badly damaged and will need repair.

“The road ahead will be tough.

“Now, it is time for responsible management of our economy, taking the difficult but right long-term decisions for our country.

“But, I am confident that with this comprehensive support that Government is providing and above all, the determination, enterprise and resilience of the British people, we will get through this.”

For Labour, shadow chancellor Anneliese Dodds said the Chancellor “was nowhere to be seen” when Prime Minister Boris Johnson announced the latest lockdown.

Responding to the Chancellor’s economic update, she told the Commons: “The Chancellor was nowhere to be seen, his sole contribution to a set of announcements that had profound implications for our economy was a 90-second video on Twitter, which begged as many questions as it answered.”

She added: “Today the Chancellor appears out of ideas, urging us to look towards the sunny uplands but providing nothing new.

“The purpose of an update is to provide us with new information not to repeat what we already know.”

She continued: “Will we have to wait until the Budget for a recognition of all of these problems and solutions to them?”

Ms Dodds concluded: “The people of Britain understand that they have to make sacrifices.

“They’re doing their bit for the national effort, while the vaccine is rolled.

“They’re fulfilling their side of the bargain.

“The Chancellor must fulfil his.”

Conservative Tom Hunt (Ipswich) asked Mr Sunak to detail what further support might be provide ahead of the Budget, adding: “I talk specifically about the potential extension of the business rates holiday throughout 2021 and also the support on VAT.”

Mr Sunak said the hospitality sector “deserves our support” given the impact of the restrictions, also saying: “I will bear in mind his suggestions about how we can look at providing further support.”