SNP warns Scotland's NHS and public services at risk as UK economy falls into recession amid Jeremy Hunt tax plan

The comments from the SNP come as Chancellor Jeremy Hunt was reported to be considering tax cuts

The SNP have warned Scotland’s NHS and public services are under threat after it was confirmed the UK's economy slipped into a recession at the end of last year.

It follows reports Chancellor Jeremy Hunt is preparing to slash public spending to find space for tax cuts at the next UK Budget. Any reduction in spending would have a direct impact on the Barnett consequentials received by Scotland.

Hide Ad
Hide Ad

SNP MP Kirsten Oswald claimed the move puts public services at risk, while she also accused the Labour party of supporting the Tories approach.

Chancellor of the Exchequer Jeremy Hunt is said to still be considering tax cuts, despite Britain being in a recession.Chancellor of the Exchequer Jeremy Hunt is said to still be considering tax cuts, despite Britain being in a recession.
Chancellor of the Exchequer Jeremy Hunt is said to still be considering tax cuts, despite Britain being in a recession.

She said: “Scotland’s NHS and public services are under threat from cruel Tories spending cuts, and from Sir Keir Starmer’s Labour party, who have signed up to those same Tory fiscal rules.

“Scottish households have already been hammered by the Westminster-made cost of living crisis, 13 years of Tory austerity and a broken Brexit Britain economy – and now a recession and news of further spending cuts. This is the reality of broken Brexit Britain.

“The SNP Scottish Government is working every day to protect the people of Scotland from Tory economic policies – the majority of which Labour has also signed up to – making it clear that Scotland's values will not be represented by the Tories or Labour.”

Reports have emerged suggesting the Treasury is considering tax cuts at the next fiscal event, which could be funded by reductions in unprotected public sector spending across different Government departments. Hints at further lowering of taxes come as official figures revealed Britain fell into a technical recession at the end of last year.

Asked about the reports by Sky News, Mr Hunt suggested that countries with “lighter taxes” did “tend to grow faster”.

He said: “But I would only cut taxes in a way that was responsible, and I certainly wouldn’t do anything that fuelled inflation just when we are starting to have some success in bringing down inflation.”

Asked if such cuts could come at the expense of cutting public services, the Chancellor pointed to his record of championing extra investment in the NHS while he was health secretary.

Hide Ad
Hide Ad

He said: “I am a passionate supporter of the NHS and all our public services, but in the long run the best thing that I can do as Chancellor for the NHS is to make sure that our economy is growing healthily. So what you will see in everything I do in the Budget on March 6 is prioritising economic growth.”

Shadow chancellor Rachel Reeves said it was “dangerous” and “misguided” for Mr Hunt to be providing a “running commentary” on his coming Budget.

She said: “I do recognise that our public services are under huge pressure – unlike perhaps the Conservatives do – which is why I said there does need to be an immediate injection of cash into our public services.

“If our economy had grown at the rate of other OECD [Organisation for Economic Co-operation and Development] countries these last 14 years, our economy would be £150 billion bigger, worth £5,000 for every family in the UK and we would have tens of billions of pounds of additional tax receipts.”

Comments

 0 comments

Want to join the conversation? Please or to comment on this article.