Sarwar says Budget must lift benefit cap and ease cost of living

The two-child benefit cap must end, Scottish Labour leader Anas Sarwar has said ahead of the Budget this week.

Speaking on BBC Scotland’s Sunday Show, he said the UK Government Budget has been a “drawn out process” surrounded by “far too much speculation”.

He spoke of what he thinks Chancellor Rachel Reeves’s statement on Wednesday needs to do, including scrapping the benefit cap.

“It has to be a Labour Budget with Labour values running right through it,” Mr Sarwar said. “But what does that mean in practice?

“This has to be a Budget that reduces poverty, in particular, child poverty. That’s why we have to see the end of the two-child benefit cap, which would lift tens of thousands of children out of poverty.

“It has to be a Budget that confronts the cost-of-living crisis and improves living standards. That’s why we need a package to bring down energy bills.

“It also has to be a Budget that if it does contain tough decisions, it doesn’t go to the Tory playbook of austerity.

“There has to be a rejection of austerity and demonstrate that we have to invest in our public services, invest in our people and invest in our economy.”

Mr Sarwar was questioned on what he would like to see in the Budget, being announced on Wednesday, that could help with the cost of living in Scotland.

He said energy bills come up “time and time again” and there are calls for a “significant energy package in this Budget”.

He continued: “I think there has to be a holistic approach to this, we have to reform the energy market. That’s going to take a bit more time.

“We do have to invest in the renewables opportunity that exists in our country, disproportionately in Scotland. That’s why I welcome the significant investment in that green energy of the future. That’s why having public ownership as part of that is really important. That’s why we’ve set up GB energy, headquartered in Aberdeen.”

However, when asked about any removal of the energy profits levy introduced in 2022 and expected to continue to at least 2030, he said it is important to have a “sensible approach” around licensing.

He said: “The oil and gas sector has got an important role to play for decades to come. That’s why we have to have a sensible approach around licensing and consenting. It’s why we have to have a sensible approach that exists around allowances to make it investable propositions for companies.

“But we also have to recognise that many oil and gas companies, I recognise there will be some smaller and medium-sized oil and gas companies that don’t fit in this frame, but many of the larger oil and gas companies are still making billions of pounds in profits at the same time as people’s energy bills are going up.”

A UK Government spokesperson said: “The Chancellor will deliver a Budget that builds stronger foundations to secure Scotland and the whole United Kingdom’s future, focusing on the priorities of working people: cutting waiting lists further, cutting the national debt and cutting the cost of living.”