Angus MacDonald Responds to Key Budget Announcements
Angus MacDonald, MP for Inverness, Skye, and West Ross-shire, has responded to the UK Government’s latest budget with a blend of cautious optimism and pressing concerns for how Holyrood will spend the money.
The £40bn in tax rises announced by Chancellor Rachel Reeves today represents the biggest tax-raising budget in modern times. Through the Barnett formula, Scotland will receive an additional £3.4bn, which Angus stresses must be invested thoughtfully.
Angus, speaking on the budget’s significance to Scotland, highlighted that:
“The SNP Government recently announced a cut of £500m from its budget this year blaming Westminster; this new £3.4bn funding can be used to make a significant investment in desperately needed infrastructure in the Highlands.”
“I feel strongly that capital expenditure has been concentrated in the central belt, and this considerable one-off funding should be disproportionately invested in the Highlands; it's our turn!’
Angus further noted with a focus on his constituency that money should now be available to fund the Belford Hospital replacement, the Corran ferry, two new schools in Inverness, to accelerate the A9 dualling, and upgrade the A82.
“I am worried about the largest business area in the Highlands, our hospitality and retail sector. These sectors employ lots of people and are struggling. Higher National Insurance, wages and increasing bureaucracy drive firms out of business. Scotland is not following the rest of the UK in giving substantial business rates relief.”
Angus has acknowledged several positives in the Budget, including the minimum wage increase. Angus also commended announcements of compensation funds for victims of the infected blood scandal and the Post Office Horizon scandal.
Angus also notes that it is incredibly disappointing to see this new government push ahead with cuts to the winter fuel allowance, which will badly impact some of the most vulnerable pensioners in our community.
“This is a bitter blow for the many pensioners in the Scottish Highlands, who are left choosing between heating and eating this winter. There was nothing in the budget for the care sector either, an area that is fragile and needs massive support”.
Angus also shares concerns over the impacts on changes in inheritance for farmers. Responding to the UK Government’s changes to Agricultural Property Relief, Scottish Liberal Democrat Alistair Carmichael MP said:
“I fear that the Treasury does not realise the damage that this change to inheritance tax could do. As well as cutting deep into the heart of local, family-owned farms, it will deal a huge blow to all those small businesses that depend on them: from vets to agricultural merchants to local shops and post offices. The people most immediately at risk are tenant farmers as their landlords look at ways in which inheritance tax might be avoided.
“That is without mentioning the concerning decision to cut farm budgets in real terms, which will have knock-on effects across the UK and goes against the government's stated aim of building up our food security. Labour may have inherited a legacy of farm budget mismanagement from the Tories, but it is their decision if they double down on the same mistakes.”
Additionally, Angus renewed his appeal to the Chancellor to reconsider the 10.1% duty increase on Scotch whisky introduced in August 2023, citing the detrimental impact on Scotland’s whisky industry.
