STEPHEN Flynn has warned that Scottish households will continue to receive “bloody noses” due to the high costs of living as the UK Government has failed to support them.
The SNP MP’s call for the Labour Government to do more for Scots comes after figures from the Office for National Statistics (ONS) showed that gross domestic product (GDP) contracted by 0.1% in May, following a 0.3% drop in April.
Most economists had expected GDP to grow by 0.1% in May, handing Chancellor Rachel Reeves another blow as she has insisted that getting more money into people’s pockets is her “number one mission”.
Flynn has accused the UK Government’s own imposed fiscal rules for the “bleak” UK economy, as he said it is as “toxic” as the Tories, which Labour replaced last year.
He said: “As the economy stumbles from one chaotic UK Government to the next, the question we should be asking ourselves in Scotland is whether we can afford to stay stuck in broke Britain.
“Instead of support from broad shoulders, Scottish households continue to receive a bloody nose with high energy bills, high food costs and low growth from a Labour Government whose record on the economy is looking every bit as bleak as the toxic Tories they replaced.
Flynn added: “As the Labour Party gears up for another brutal budget at Westminster, remember that they have chosen their fiscal rules, chosen to accept the damage of Brexit, chosen to reject a progressive tax system and chosen to deny Scots the chance to choose a better future.”
The Aberdeen South MP’s comments come after reports on Friday that the Chancellor has U-turned on proposed plans to make changes to cash Individual Savings Accounts (Isas).
Reeves reportedly planned to cut the tax-free allowance on cash savings accounts in her Mansion House speech to City leaders on Tuesday, as she was expected to drop the threshold from £20,000 for cash Isas.
The proposed changes were a bid from the Chancellor to encourage people to put money into stocks and shares instead, in an effort to boost the economy, but have been heavily criticised by banks, building societies and financial experts.
According to the BBC, the UK Government has not ruled out changes to Isas in the future but has shelved any plans for the changes.
Following the news of Reeves's plans, some building societies reported seeing a jump in cash Isas applications following speculation that the limit could be cut.
Leeds Building Society said that during the week starting June 30, it saw a 47% increase in cash Isas being opened compared with the same period the week before.
The UK Government has been approached for comment.
