Nicola Sturgeon has accused the UK Government of “repeating the mistakes of the past”, as she warned there could be “significant consequences” as a result of the autumn statement.
Chancellor Jeremy Hunt told MPs he was having to make tough choices to ensure a “shallower downturn”, but the UK economy is still expected to shrink 1.4% in 2022.
The Office for Budget Responsibility has now concluded the UK “like other countries” is in recession and is facing an increase in unemployment.
Mr Hunt told MPs he was taking “difficult decisions” to curb inflation, as he set out a package of around £30 billion of spending cuts and £24 billion in tax rises over the next five years.
Addressing the plans, Scottish First Minister Ms 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.
Mr 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 Ms Sturgeon, who was questioned on the impact of the autumn statement during First Minister’s Questions at Holyrood, said: “What we are hearing from the Chancellor today is tax rises and spending cuts.”
She told MSPs she had not seen all of Mr 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”.
