THE Tories are taking the UK to the “brink of recession”, with fears an economic downturn is the Westminster government’s “only plan” to bring inflation back down, SNP Westminster leader Stephen Flynn has said.
With the Bank of England having already imposed 13 consecutive interest rate rises, and fears more could follow, the SNP MP said the UK Government’s handling of the economy was now “threatening the livelihoods, homes and businesses” of people across the country.
It comes amid concerns from some that interest rates, which are now at 5%, could rise as high as 6.5%.
Asset management firm Schroders last week said it anticipates rates will rise to this level by the end of 2023 – the highest since 1998 and warned “we anticipate rates at this level will drive the UK economy into a recession”.
Meanwhile Bloomberg Economics has made a similar warning, forecasting a year-long recession starting in the fourth quarter of this year. Analysts have also sounded the alarm over the potential for a huge drop in house prices which could plunge mortgage holders into negative equity.
Flynn said that raising interest rates alone “is not the answer to getting the economy back on track”.
But he said that neither Prime Minister Rishi Sunak, or Labour leader Sir Keir Starmer were “willing to admit the long-term damage” being caused by Brexit.
Hitting out at the Conservatives, the SNP MP said: “The Tories trashed the economy and now they are taking the UK to the brink of recession – threatening the livelihoods, homes and businesses of people across Scotland and the UK.
“People in Scotland are sick to the back teeth of the constant crisis under Westminster control – as families are forced to foot the bill for Brexit, Tory cuts and total incompetence.
“Raising interest rates alone is not the answer to getting the economy back on track – but neither Rishi Sunak nor Keir Starmer are willing to admit the long-term damage their Brexit obsession is causing – and neither party is offering the genuine change Sctoland needs.”
Flynn argued it was “only by securing the full powers of independence can Scotland rejoin the EU, escape Westminster control and invest in sustained growth to secure a prosperous future”.
He added: “Rejoining the EU, and properly investing in the renewables gold rush, is the only credible plan to secure sustained economic growth but Westminster has failed.”
