Nicola Sturgeon has accused the UK Government of "repeating the mistakes of the past" and "reintroducing austerity" after Jeremy Hunt announced a raft of tax hikes and spending cuts.
The Tory Chancellor told MPs he was having to make tough choices to ensure a "shallower downturn" - despite the news that average household incomes will drop by seven per cent over the next two years.
The Office for Budget Responsibility has concluded the UK is now in recession and is facing an increase in unemployment. Hunt has set out a package of around £30 billion of spending cuts and £24bn in tax rises over the next five years.
Speaking at FMQs, Sturgeon insisted: "Austerity, which they appear to be reintroducing, does not work and will have significant consequences for people, for businesses and for public services.
"These plans are likely to worsen the extreme pressures already being faced as a result of inflation and rising interest rates. The UK is almost unique among wealthier countries in reintroducing austerity, it is the wrong approach and will have a significant adverse impact on people and public services across Scotland."
With the Chancellor pledging extra spending for health and education south of the border, Scottish Conservative leader Douglas Ross said that will mean £1.5 billion more for Scotland.
Ross said: "The narrative from the Chancellor today is a UK Government that is increasing benefits and pensions in line with inflation, that is increasing spending on health and on education, that is delivering £1.5 billion of extra support to Scotland, and is investing in the future of our economy.”
But Sturgeon insisted: "What we are hearing from the Chancellor today is tax rises and spending cuts."
She told MSPs she had not seen all of Hunt’s statement to the Commons as the timing clashed with her own appearance in Holyrood.
But she added: "I think it is clear from what we know, indeed from what the Chancellor had indicated before getting to his feet today, that the UK Government is repeating the mistakes of the past.”
She called for an "alternative approach that avoids prolonging a recession”.
She said there is an “alternative to Tory mismanagement of our economy”, saying this is “self-management of our economy, otherwise known as independence”.
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