SNP Westminster leader Stephen Flynn has stepped up demands for Westminster to provide emergency support during the cost-of-living crisis – warning that without action the UK is heading towards a “cliff edge”.
The MP made the plea in the wake of warnings from the Bank of England over the state of the UK economy.
While stressing the “severity and duration” of the current conflict in the Gulf is unknown, the worst case scenario could see inflation peak at 6.2% and not drop back to the target rate of 2% in the next four years.
Such a scenario could see as many as six interest rate rises to 5.5%, it was reported.
Warning the UK is facing “economic catastrophe”, Mr Flynn accused Prime Minister Sir Keir Starmer of being “asleep at the wheel” when the Government should be providing “urgent help”.
Hitting out at the Labour leader, Mr Flynn – who is hoping to be elected to Holyrood in next week’s Scottish Parliament election – said: “Broken Brexit Britain is at crisis point and it’s a disgrace that Keir Starmer is asleep at the wheel as the UK rapidly heads to a cliff edge.
“The SNP has been warning the Labour Party Government for months that families, farmers and businesses need urgent help as the cost of living soars on Keir Starmer’s watch.
“The UK is facing an economic catastrophe but the Labour Government has done nothing, has no idea how to fix the mess and is completely unprepared for the devastation that is coming.
“While the UK faces yet another cost of living emergency, sleepy Starmer is sitting on his hands while Scottish families and businesses are battered by sky-high costs.”
He spoke out in the wake of Thursday’s Bank of England Monetary Policy Committee meeting – where interest rates were held steady at 3.75% but members stressed they were alert to the evolving situation in the Middle East.
Mr Flynn said warnings of the impact the conflict could have on possible increases in inflation and interest rates were “devastating and could cripple hard-pressed families with rising mortgage rates, food prices and fuel prices that are completely unaffordable”.
This, he warned, would be the scenario “unless the UK Government wakes up and takes action now”.
Mr Flynn demanded: “It is essential that the UK Government follows the example of independent countries like Ireland and delivers an emergency package of financial support.
“That must include removing VAT from fuel for the duration of the crisis, scrapping its planned hike to fuel duty, and introducing a Household Energy Price Cap to lower bills by hundreds of pounds.”
The SNP MP sought to contrast the actions of ministers in England with politicians in Scotland, claiming that while “John Swinney’s SNP Government is laser-focused on delivering the strongest cost-of-living support for families anywhere in the UK, the Labour Government has no plan at all”.
Chancellor Rachel Reeves said: “The war in the Middle East is not our war, but it is one we have to respond to.
“Every choice I make will be about keeping costs down for families and businesses, without repeating the mistakes we’ve seen in the past that resulted in higher inflation and higher interest rates.
“We entered this conflict in a stronger position because of the choices this Government took to build economic stability, and we are going further to take back our energy security, backing British industry and protecting households, to build a Britain that is stronger, more resilient, and prepared for the future.”
