Westminster and Holyrood ‘sitting on their hands’ in cost of living ‘catastrophe’

Scottish Liberal Democrat leader Alex Cole-Hamilton has accused the UK and Scottish governments of “sitting on their hands while people’s bills skyrocket” amid what he called a “cost of living catastrophe”.

Addressing the chamber on Wednesday, Mr Cole-Hamilton told MSPs that the support offered to struggling households will “barely make a dent” when it comes to paying increasing bills.

He said: “Many people who have donated to food banks for years are now relying on them instead.

“This is Scotland. It is 2022. And many people literally cannot afford to eat or put their heating on.”

Mr Cole-Hamilton accused the SNP of “neglecting” the public by increasing council tax and leaving disability benefits up to 6% behind inflation, and called ScotRail’s ticket prices a “betrayal”.

Social Justice Secretary Shona Robison said the Scottish Government is taking “a range of actions” to mitigate the crises being faced by households, including the Council Tax Reduction Scheme, upping eight social security payments by 6% and the commitment of £10 million for its Fuel Insecurity Fund.

She said a review on ScotRail fares is in the planning stages, while a promotional offer for 50% off off-peak tickets across Scotland will be launched in May.

But Ms Robison said the action from Holyrood “needs to be matched by the UK Government”, adding: “We have repeatedly called for them to take further action.”

She told the chamber: “Last month my colleague, the Cabinet Secretary for Finance and Economy, wrote to the Chancellor for the Exchequer ahead of his spring statement calling for urgent action to support households with spiralling costs.

“That letter included a set of suggested policy actions that fall within the gift of the UK Government.

“Whilst some of the spring statement announcements are welcome, other asks were not met. Notably, the removal of VAT from household energy bills, the reinstatement of the £20 Universal Credit uplift, an increase to benefits by 6% in line with our Scottish Government approach and a windfall tax on those that are making huge profits from the pandemic or the current global situation.”

Labour MSP Pam Duncan-Glancy said both governments are letting the public down, adding: “People in every neighbourhood in Scotland are struggling to make ends meet, middle income households are squeezed and people on low incomes and those who cannot afford to work are being pushed further into poverty.

“This cost-of-living crisis is an emergency. It’s set to get even worse and both of Scotland’s governments are letting us down.”

Bus and rail fares must be cut, the Glasgow MSP said, and water charges reversed.

Douglas Lumsden, a Scottish Conservatives MSP, echoed that both parties needed to work together to create a suitable strategy to tackle the crisis.

The UK Government has already stepped up, he said, stating the Scottish Government’s plans are a “stark contrast” to this.

In his closing remarks, Scottish Greens co-leader Patrick Harvie said that regardless of political parties and differences, the crisis deserves a serious response.

However, Mr Harvie said Holyrood and Westminster’s governments are in contrast when it comes to the benefit cap and payments such as Universal Credit or the Scottish Child Payment.

He added that the UK Government’s national insurance increase was not “universally welcomed”, and slammed the “regressive tax system keeping the minimum wage below the real minimum wage”.