what you need to know – Scottish National Party

When we cut through the Tory spin, Rishi Sunak’s UK budget crumbles under the slightest scrutiny.

This budget – with the combination of Tory welfare cuts, unwarranted tax hikes and a damaging Brexit – leaves millions of Scottish families worse off.

Here’s a summary of what it all means and how the experts responded.

IFS: millions of people will be worse off next year

The Institute of Fiscal Studies has confirmed that due to inflation and conservative tax increases on workers, millions of people will be worse off after Rishi Sunak’s budget.

Contrasting Sunak’s rotation of ‘optimism’ with reality, Paul Johnson, Director of IFS, said: “the outlook for living standards does not match his optimistic tone“.

Senior economist: “it’s really awful”

Paul Johnson of IFS called the budget “really horrible” – highlighting the crisis in the cost of living of the Conservatives.

The UK government’s own forecaster, OBR, has warned that the cost of living could now rise at its fastest rate in 30 years, with inflation reaching as high as 5%.

This means that amid rising food prices, oil prices and soaring energy bills under the Conservatives, daily costs will rise even more.

OBR: Tory hard Brexit will hit UK economy twice as hard as Covid

At the height of the Covid crisis, we had to lock down huge swathes of the economy to save lives – with a profound impact on us all.

The OBR, the UK’s budget watchdog, has now revealed that Brexit – imposed by Boris Johnson amid the pandemic – will hit our economy twice as hard.

Scotland voted overwhelmingly to stay in the EU, but now we are all forced to pay a heavy price on Brexit, which will cut UK GDP by around 4%.

Resolution Foundation: Households face £ 3,000 due to Tory policies

The Resolution Foundation has said that measures taken since Boris Johnson came to power, including those in this UK budget, will increase the UK’s tax burden to around £ 3,000 per year per household.

Of the 4.4 million households with universal credit, about 75% will be worse off because of the curators’ cuts to universal credit – despite Rishi Sunak’s new measures to reduce the degressivity rate.

Former pensions minister: retirees lose £ 520 next year

Sir Steve Webb, former Pensions Minister under the Tory-Lib Dem coalition government, has revealed how the Tories are hammering retiree incomes.

Following the Tories’ move to remove the ‘triple lockdown’ on pensions – a broken promise in the 2019 manifesto – next year, retirees will lose around £ 520 each and £ 2,600 over the next 5 years.

Scottish block grant is cut by Westminster

Although Rishi Sunak claims there has been an increase in the block grant for Scotland, the reality is the opposite.

The Scottish Government will receive fewer grants than in 2021-2022, representing a 7.1% decrease in the resource budget.

Rishi Sunak also refused to extend last year’s Barnett Guarantee, ensuring certainty in the amount of substantial Barnett funding Scotland is receiving – forcing the Scottish government to act with a hand tied behind its back.

UK already has the worst levels of poverty and inequality in North West Europe – this budget only inflicts more pain

Recent research has found that of the 13 neighboring countries, the UK suffers from the worst levels of poverty and inequality, along with the least generous pensions and social security payments.

Instead of tackling these issues, Boris Johnson and Rishi Sunak have chosen to make them worse.

Only with the powers of independence, Scotland can build a fairer and richer society – sheltered from damaging decisions by conservative governments for which we do not vote.

Sign the pledge of independence here, and put the future of Scotland in Scotland’s hands.