NICOLA Sturgeon branded the cost-of-living crisis a “humanitarian emergency” as she set out plans to support Scots, including rent controls, increasing child support payments and freezing train fares.
The First Minister outlined a raft of measures as she set out her plans for the year ahead in the Programme for Government, but warned Holyrood does not have the powers to “act in the manner and on the scale needed”.
She told MSPs she has written to the new Prime Minister Liz Truss renewing a request for an emergency four nations summit on the cost crisis and that action on a scale similar to the covid responses was “needed now” to pull the UK “back from the brink”.
The First Minister said: "This Programme for Government is published in the context of the most severe cost crisis in our lifetimes. This crisis is pushing millions into poverty, it is threatening the viability of businesses - and it will almost certainly push the UK economy into recession.
"It poses a danger, not just to livelihoods, but also to lives.
“It is, to be blunt, a humanitarian emergency.”
Sturgeon urged the UK Government to cancel the October energy price cap rise and freeze energy prices at the current level.
She also called for greater powers to borrow to be granted to the Scottish Government as she outlined rising budgetary pressures, saying it limited the government’s ability to respond “as fully as want to do”.
The First Minister said this year’s budget was already 2.9% lower than last year, and since then rising inflation is now worth “a staggering” £1.7billion less than when it was published last December.
She said: "In addition, and by necessity, we are also spending more in some areas than was anticipated.
“For example, public sector pay deals are so far costing £700million more than we budgeted for.
“To clear, I don’t begrudge a single penny of that – on the contrary paying higher wages is the biggest contribution we can make to helping families with soaring costs.”
She added: "Our powers over tax and borrowing are also woefully inadequate.
"So unless Westminster increases the total amount of money available, every additional percentage point on a pay deal, and every pound we spend on measures to help with rising costs, must be funded by reductions elsewhere in our budget.
“That is the reality and it does mean hard choices.”
She said a statement on an emergency budget review would be made on Wednesday by John Swinney, who is covering Finance Secretary duties - but warned some plans would need to be halted to fund essential support during the cost-of-living crisis.
The Programme for Government also includes a Scottish Independence Referendum Bill.
If the Supreme Court rules that a vote is within the competence of the Scottish Parliament, Sturgeon said her government will legislate for a referendum on October 19 2023.
“This current crisis highlights – starkly – the pressing need for independence,” she said.
“We are being reminded every day that where, and in whose hands, power lies really matters.
“This crisis is much worse in the UK than in other developed countries because of a Brexit that Scotland voted against but was powerless to stop.”
The plans she set out included the introduction of emergency legislation to introduce a rent freeze which will apply to both the private and social rental sectors and a moratorium on evictions.
ScotRail fares will be frozen until at least March 2023, the First Minister announced.
The Scottish Government will double the fuel insecurity fund from £10 million to £20 million this year.
It will give local authorities flexibility to use discretionary housing payments to help with energy costs as well as rent payments.
Funding for discretionary housing payments will also be increased by £5 million.
Eligibility for the tenant grant fund, introduced as part of the Scottish Government’s Covid response, will be extended to provide help to those struggling to pay rent.
Sturgeon confirmed plans to increase the Scottish Child Payment to £25 per eligible child per week from November 14.
The benefit will now also be open to all eligible under-16s, meaning around 400,000 children will be eligible.
The current payments of £20 a week currently help an estimated 104,000 youngsters under the age of six.
Other measures announced include the introduction of a Criminal Justice Bill, which will see the not proven verdict abolished.
If approved, it will be a “change of truly historic significance in Scotland”, Sturgeon said.
A Police Complaints and Misconduct Handling Bill will also be introduced in a bid to improve the way in which complaints about the police are managed and investigated.
Local authorities across Scotland will have the power to introduce taxes on tourists staying overnight in their areas.
Meanwhile, the NHS Recovery Plan will also be supported by more than £1 billion of targeted investment over this parliament.
Sturgeon told Holyrood: “Despite the uncertainties we face – and the current limitations on our powers to act – this Programme for Government seeks to chart a path towards a better future.
“We will do everything possible to support people and businesses through the difficult months ahead.
“We will do so in a manner consistent with our values and our long-term vision for Scotland.”
