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In a letter to the Prime Minister and Chancellor, Mr Blackford said the UK Government must ditch plans to impose a public sector pay freeze – and instead deliver a major investment package to “protect our public services and put money in people’s pockets”. Scottish Finance Secretary Kate Forbes has also written to Mr Sunak and warned against returning to the austerity policies put in place by his Conservative predecessors during the 2008 financial crash, instead lobbying for him to “invest for recovery, rather than balance the books”.
Mr Blackford claimed any form of “Tory austerity” would starve “the economy of cash at the worst possible time.”
A £98 billion financial stimulus, the Scottish Government has said, would bring the UK in line with France, Germany and New Zealand where similar packages amounting to 5% of GDP have been announced.
Ms Forbes and Mr Blackford Ms Forbes also said it was vital to continuing the uplift of Universal Credit – which was increased by £20 per week at the start of the pandemic – beyond April next year.
The SNP politicians also called for a major cash injection for the NHS and social care across the four UK nations which would result in an extra £4billion for NHS Scotland and enabling a pay increase for workers across the UK.
This, the politicians said, could be achieved by increasing the level of spending on Health and Social Care in England to at least the higher per capita level in Scotland.
Mr Blackford said: “At a time when the UK faces a devastating extreme Brexit and a growing Tory unemployment crisis, it is crucial that the Chancellor uses the Spending Review to deliver a major fiscal stimulus package, and the devolution of financial powers – to protect our public services, put money in people’s pockets, and kickstart a strong economic recovery.
“Scotland shouldn’t have to wait for Westminster to act.
“By withholding investment and blocking the devolution of financial powers, the Tory government has hindered Scotland’s ability to respond to this crisis. It must not jeopardise Scotland’s recovery too.”
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