Kate Forbes demands ‘bold and decisive action’ from UK ministers to help economy

Scotland’s Deputy First Minister has demanded “bold and decisive action” from the UK Government to help protect Scottish industry at a time of global economic volatility.

Kate Forbes called on UK Chancellor Rachel Reeves to adopt a “new approach”, saying her budget had been “overtaken by recent events”.

Her plea came after First Minister John Swinney urged Ms Reeves to rewrite her fiscal rules and reverse the recent hike in employer national insurance contributions.

He said many businesses are being hit with a “double whammy” of new tariffs imposed by US President Donald Trump alongside higher costs through the increased national insurance.

As well as backing the call for an “immediate U-turn on the national insurance hike”, Ms Forbes also urged the UK Government to commit to developing a closer economic and trading relationship with the European Union, and to “ultimately reverse Brexit”.

She also demanded action to help reduce electricity costs, which she said would help businesses and households.

The Deputy First Minister also wants Labour ministers to provide “clarity” over industrial opportunities she believes could boost economic growth in Scotland, including the Acorn carbon capture and storage project.

Ms Forbes, who is also the Scottish Government’s Economy Secretary, said: “The UK Government’s fiscal rules, tax on jobs and its commitment to Brexit are all relics of an economic era that has passed us by.

“It is time for a change in approach which delivers serious investment and support for business, workers and consumers.”

She said the “fundamentals of the Scottish economy are strong” but added that with the “global economy continuing to be volatile and uncertain we need to see bold and decisive action by the UK Government”.

The Deputy First Minister said: “It is time for the Chancellor to accept that her budget has been overtaken by recent events.

“She should commit to a new approach which delivers investment and support for industry, just as we are seeing in countries such as Spain.”

She branded the national insurance hike a “tax on jobs which makes it more difficult for employers to take on or even keep the staff they have”.

She also said that “with the global economic situation continuing to be volatile, it is vital for business that we can have the closest possible trading relationship with our partners in the European Union”.

“The UK Government needs to commit to the closest possible working and trading relationship with the EU, and ultimately to reverse Brexit.

She added: “The risk to consumers and businesses of prices increasing should be mitigated by action to reduce bills, especially electricity bills, that has spiralled over the course of the last few years, despite Scotland being an energy-rich nation.

“Reducing those costs will help businesses and households weather these economic storms.

“There are particular investment opportunities which could be a shot in the arm for Scottish businesses.

“In particular, giving the green light to the Acorn project would be transformational for Grangemouth, energy transition and key sectors. These opportunities should be our primary focus.”

The UK Government has been contacted for comment.