SCOTLAND’S Finance Secretary has criticised the Chancellor’s spring statement, saying it does nothing to help families facing fuel poverty. 

But the UK Government has said that thanks to Rishi Sunak's spending plans, Kate Forbes will now have an extra £45m to "provide additional support to the most vulnerable families over the coming months."

In the Commons on Wednesday, the Tory minister announced he was to cut fuel duty by 5p per litre, as well as increase the national insurance threshold.

He also pledged to cut the lowest rate of income tax by 1 per cent. In Scotland, different income tax charges apply, with 19 per cent already the starter rate north of the border on earnings between £12,570 and £14,732 – rising to 20 per cent for those making between £14,732 and £25,688.

Asked for her thoughts on the budget, Kate Forbes told LBC: "Well, right now families across Scotland are facing soaring energy bills and there was nothing in that statement to help address the fact that over 400,000 families in Scotland could be plunged into fuel poverty or deeper into fuel poverty.”

The SNP minister said the Chancellor could have helped by uprating benefits.

On the £45m in Barnett consequentials the UK Government say will come to Scotland, Forbes said she needed to see the detail first before committing to any spending. 

“But we already have demonstrated our willingness and our ability to mobilise funding quickly to help families in need through the Scottish welfare fund, through the fuel insecurity fund. 

“These are the steps that we should have been seeing the Chancellor take today. These are the steps that you would expect a government presiding over the fastest drop in living standards since the 1950s. These are the steps you'd expect them to take. But we didn't see anything like that today.” 

Ms Forbes said the cut in income tax in 2024 wasn’t what families “need right now”. She said the decision to hike national insurance right now would “drive a wedge between the highest paid and the poorest paid in our country.” 

The Finance Secretary added: “So, there's something that doesn't quite stack up and ultimately, what families need right now is help with their energy bills, with the rising cost of living, with the fact that many of them are facing choices over the summer and into the autumn, between how they spend limited funds at a time when inflation is soaring too.” 

In a later statement, Ms Forbes said Scotland already had a 19 per cent starter rate of income tax below the basic rate, "which makes Scotland the fairest taxed part of the UK".

"We will continue to take that approach when we set taxation policy in future budgets,” she added.

Mr Sunak’s cabinet colleague, Alister Jack, welcomed the budget. 

The Scottish Secretary said: “Families across the country are struggling with the cost of living. The reduction in fuel duty, zero VAT on green home improvements, and a tax cut for low and middle earners will help them with these growing pressures.

“And an extra £45m for the Scottish Government will allow them to provide additional support to the most vulnerable families over the coming months."

Scottish Labour leader, Anas Sarwar, said the proposals from the Chancellor would “not touch the sides”.

“Instead of introducing a windfall tax on big energy companies, Rishi Sunak has sided with the SNP and protected them from paying their fair share.

“Instead of focussing on job creation, Rishi Sunak has instead delivered a series of soundbites that only tinker around the edges.

“It is clear that this Chancellor and this government do not understand the cost-of-living crisis that families are facing.

“These are the wrong choices, and the wrong answers to a national emergency.”

Scottish Green finance spokesperson Ross Greer said the UK’s “multi-millionaire Chancellor has just demonstrated that he has no idea of the pressures ordinary families are now under.”

He added: “There was nothing in Rishi Sunak’s statement to address energy bills, which are rising because of the Tories’ failure to implement price controls or to transition away from unstable fossil fuels such as gas. There was nothing to tackle rising food prices stemming from their disastrous Brexit process. And there was nothing to support those already plunged into poverty by the cuts to Universal Credit and the benefit cap.”

However, Scottish Tory Shadow Cabinet Secretary for Finance, Liz Smith welcomed the announcement, describing it as a “welcome package of support that will play a vital role in keeping the cost of living down.”

She added: “It’s particularly welcome that the basic rate of income tax will be cut by 2024. The SNP must now agree to match Rishi Sunak’s announcement, which will put more money in the pocket of every single taxpayer.”

Meanwhile, Scottish Liberal Democrat MP was scathing: “People seeing the biggest plunge in living standards in fifty years will see through the Chancellor’s spin.

“Rishi Sunak has failed to introduce a windfall tax on the super-profits of oil and gas producers, which could have raised billions to help people with their energy bills. And he has refused to bring in an emergency cut to VAT, as Liberal Democrats have called for, which would put £600 back into the pockets of the average family.”