DOUGLAS Ross has said the Tory government was “right” to U-turn on plans to cut taxes for the rich – despite having publicly backed the policy.
Speaking at the Conservative conference, the embattled Scottish Tory leader said that Kwasi Kwarteng had “listened and responded” to the outcry which followed his “mini-budget”.
After the Tory Chancellor announced a £45 billion package of tax cuts, funded by increased government borrowing, the pound crashed to record lows against the dollar.
The International Monetary Fund issued an extraordinary statement urging the Tories to “re-evaluate” the policy, and the Bank of England was forced to spend £65 billion protecting pension funds from collapse.
However, Ross supported the UK Government’s policy regardless, with his MSPs calling for the Scottish Government to follow suit amid claims that high earners would be relocating to England to avoid paying higher taxes.
Only after the Chancellor announced a U-turn on Monday morning – taking even members of his own Cabinet by surprise – did Ross come out against the tax cuts.
He told conference: “This morning, we know that the Chancellor has confirmed a change to the budget that was presented 10 days ago.
“I think he has made the right decision. The best parts of the Government’s growth plan going forward remain and the area that caused most concern has gone.
“Politicians have to listen and respond – and that’s exactly what the Chancellor has done.”
Health Secretary Humza Yousaf (below) attacked the Scottish Tory leader for the comments, which come just days after he urged the Scottish Government to mirror the tax cutting policy.
Yousaf wrote on Twitter: “What a charlatan, only days before Douglas Ross was demanding the Scottish Government back his Westminster colleagues and give a tax cut to the wealthiest.
“He must think we are buttoned up the back, unfortunately for him people see right through the Tories.”
And SNP MSP Rona Mackay added: "Douglas Ross has some brass neck to lecture a room full of Tories about what Scotland needs when his party haven't come close to winning an election here in almost 70 years."
Although Kwarteng has scrapped plans to abolish the 45% tax rate for high earners, he is keeping in place the move to end a cap on bankers’ bonuses.
He will also cut the basic rate of income tax south of the Border to 19%, and reverse the 1.25 percentage point hike to National Insurance contributions.
Scottish Secretary Alister Jack (below) has also welcomed the climbdown from Kwarteng.
Jack said: “We recognised for a number of quarters that it wasn’t universally welcomed.
“And he’s listened to that, he’s taken the decision to drop the plans for the 45% tax rate, but he’s stuck to all the other growth measures that he had in there, particularly helping businesses and people with their energy crisis, which is very important – so that’s what he’s done.
“And politicians are often criticised for not listening, so we should welcome the fact that he has listened and he has acted and he has acted swiftly.”
Elsewhere in his speech to the Tory conference, Ross claimed that large parts of Scotland – especially rural and island communities – have been forgotten by the SNP.
He told delegates that his party would “deliver opportunity and a fair deal to every part of our country”.
Ross also highlighted his plans to establish a National College of Scotland and deliver a Rent to Own scheme.
He said: “Today we continue to show that on education, economic development, housing and so many other areas the Scottish Conservatives are Scotland’s real alternative to this failing SNP Government.
“That we have the positive ideas and policies to take all of Scotland forward and deliver opportunity and a fair deal to every part of our country.”
The Scottish Conservatives said the National College of Scotland is designed to break down the barriers that geography and life circumstances can create for adults wishing to access higher education.
Specialising in remote teaching, it would be an umbrella body ensuring Scotland’s colleges and universities offer a wide range of online courses so that adults can gain new qualifications while still holding down a full-time job.
Ross also spoke about the Rent to Own plan, under which tenants would pay market rent for a new-build property from a landlord – who would have to sign up to the scheme – for five consecutive years, after which the tenant could apply to buy it.
To help them do so, the Government would provide 25% of the rent paid during the tenancy to go towards their deposit.
Ross will say that the scheme could be “a step change in helping families who are stuck in rented accommodation and unable to afford the extra that they need to save each month to put down a deposit”.
The Scottish Tory leader’s speech comes at a difficult time for him, with reports saying he is facing “at least” two challenges to his position from within his own party.
