Chancellor of the Exchequer’s Economic Update

Part of the debate – in the Scottish Parliament on 9th July 2020.

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Photo of Kate Forbes Kate Forbes Scottish National Party

The scale of the economic challenge that we are facing requires an ambitious and practical response. It is highly likely that the chancellor will have to come back with more, and I think that he has delayed a lot of the more significant announcements to the autumn.

On yesterday’s announcement, we know that there has been and will continue to be a contraction in the economy. We know from our Scottish Government analysis that the recovery is unlikely to be V-shaped and will, instead, be more protracted. That is why we need to look not just to the short term but to the long term. We know that a lot of the welcome initiatives that were announced yesterday have a short shelf life. VAT reduction will come to an end in January—the middle of winter and the hardest point for the tourism industry. We know that the support for wages and jobs will also come to an end in that time period. Looking further ahead, we need to ensure that support is in place for the Scottish economy, in particular.