Chancellor of the Exchequer, Kwasi Kwarteng
Criticism has been leveled at the UK government, with the Conservative ‘mini-budget’ being called ‘reckless’.
It comes after Chancellor Kwasi Kwarteng announced a new growth plan for the country, including a series of tax cuts.
But Islands MP Alistair Carmichael said Tory action would cause the national debt to rise significantly.
The value of the pound fell significantly after the measures were announced, and the cost of UK government borrowing rose sharply, suggesting market concern over the plans.
“The Conservatives have shown how out of touch they are, putting bankers first and supporting workers last,” Mr Carmichael said.
“With the worst inflation in decades, rising interest rates and an economy heading into a recession, the Conservatives’ last shred of credibility on the economy has been ripped away.”
Mr Kwarteng said: “The UK Government’s fiscal strength has allowed thousands of businesses in Scotland to keep more of their own money to invest, innovate and grow. We are scrapping National Insurance for 2.3 million Scottish workers, saving them an average of £285.
“And our Energy Bill Relief Scheme protects thousands of businesses across Scotland from rising energy costs with discounts on wholesale gas and electricity prices.”