Labour Budget will lead to higher food price rises and worsen cost-of-living crisis, says SNP

Labour’s Budget is set to increase food prices and exacerbate the cost-of-living crisis, according to the Scottish National Party (SNP). The SNP’s economy spokesperson, Dave Doogan, criticised the measures announced by Chancellor Rachel Reeves, stating that they will make the ongoing cost-of-living crisis even more challenging for the public.

Supermarket chain Sainsbury’s has also raised concerns, claiming that the rise in employers’ National Insurance contributions and the introduction of inheritance tax on farms will lead to a significant increase in the cost of food for consumers. Simon Roberts, the supermarket’s chief executive, highlighted the strain on businesses to absorb additional costs without passing them on to customers, leading to higher inflation levels.

Reeves recently unveiled the Budget, which includes an increase in employer national insurance contributions from 13.8 per cent to 15 per cent, along with a reduction in the threshold for paying contributions. Additionally, a tax of 20 per cent on inherited farming assets above £1 million was announced. Doogan asserted that the burden of Labour’s budget will ultimately be shouldered by consumers through higher food prices.

The SNP representative criticised Labour’s budget for its impact on small businesses, job opportunities, and now on customers’ pockets. He also pointed out previous cuts and promises made by the government, emphasising the escalating cost of essentials like food and energy. Doogan highlighted the warnings sounded by supermarkets, farmers, and producers regarding the Budget’s repercussions on consumers and urged the Labour government to reconsider its approach to support households.

The measures introduced by Reeves mark a significant shift in government spending, with around £70 billion in additional annual spending and £40 billion in tax increases. The increase in employer National Insurance contributions is projected to generate £25 billion, funding a large portion of the proposed spending hikes. Additionally, the Budget allocates a substantial financial boost to the Scottish Government for the upcoming year, which has been described as the largest real-terms funding settlement for devolved governments in the last 25 years.

The SNP’s stance against Labour’s Budget highlights the contentious nature of economic policies and their impact on everyday consumers. The warnings raised by Doogan and other industry stakeholders underscore the need for a comprehensive approach to address the cost-of-living crisis and ensure sustainable economic growth.

In summary, the SNP’s critique of Labour’s Budget emphasises the potential consequences on food prices and living expenses for the public. The debate surrounding economic policies and their impact on households underscores the importance of balanced and sustainable financial decision-making to support individuals and businesses alike.