Sarwar’s £100m emergency aid package to help Scots through Gulf crisis

Anas Sarwar has set out details of a £100 million emergency package to help Scots hit by soaring costs as a result of the conflict in Iran.

The Scottish Labour leader promised action to help bring down the prices of petrol and diesel at the pump, as well as crisis loans for businesses, and grants and loans to help households.

With the Holyrood election now four weeks away, he said the plan would be put into place in the first 100 days of a Scottish Labour government in Edinburgh, if the crisis in the Middle East continues.

He unveiled details of the emergency action plan after Prime Minister Sir Keir Starmer travelled to the Gulf amid signs the US-Iran ceasefire is already under strain.

Mr Sarwar said he wanted to see the UK “play as much of a part as it can to sustain the peace”.

With the conflict having seen fuel prices in parts of Scotland soar to as much as £2.29 a litre for diesel in the Highlands, he stressed the need to act.

The Scottish Labour leader told the Press Association: “We all want the war in Iran to end, we all want the ceasefire to sustain, but we also have to plan for every possible outcome, because there is risks to livelihoods here.

“The fastest way to get stability in that region, into prices and into our economy is for that ceasefire to sustain and for there to be peace.

“But we have also got to plan for the other options too.”

Under Mr Sarwar’s proposals, a Scottish Labour government would bulk-buy fuel to help drive down the prices for motorists at the pumps.

Crisis loans would be made available for energy-intensive businesses, to help protect jobs, with emergency grants or interest-free loans used to help households that are struggling.

Mr Sarwar also said if he was Scotland’s next first minister his government would convene a special summit with supermarkets and others to help drive down the cost of key items.

Civil servants would be redeployed to help ensure people are getting all the financial help they are entitled to.

Speaking about the proposals as he visited the Torness nuclear power station in East Lothian, Mr Sarwar hit out at First Minister John Swinney, accusing his SNP rival of failing to act in the face of the crisis.

The Scottish Labour leader said: “We have to take the emergency measures that are right for the country in the here and now, rather than have a government in Scotland that simply thinks its job is to commentate or to point the fingers of blame somewhere else.

“So, we are setting out emergency measures we would take if we elect a Scottish Labour government on May 7.”

Mr Sarwar made clear the need to act was because of the “illegal actions of Benjamin Netanyahu and Donald Trump” after Israel and the US launched attacks on Iran.

He added: “That has caused an instability, that has caused a rise in prices.

“What we will do if the instability continues and if the risk is still there to household incomes, to jobs and to prosperity in this country, we will act.

“We will do a £100 million emergency fund that will make bailout loans available to energy-intensive businesses so we can protect jobs. We will give access to crisis loans and grants to households depending on their circumstances, so we can protect household incomes.

“We will drive down the price of fuel at the pumps by bulk-buying fuel so we can drive down those prices.

“We will have an emergency summit with the supermarkets so we can bring down the prices of the stable items people rely on and we will redeploy the civil service so they are maximising people’s income.

“We know there are lots of people who are eligible for more money, pensioner households not accessing pension credit or young families who are not accessing their tax free childcare.

“That’s what we  will do because we are not willing to just stand by and point the finger.”

Mr Sarwar continued: “That might be the approach John Swinney takes, I don’t look at a crisis and think ‘how do we make political gain from it?’  I look at a crisis and think ‘how do we protect jobs, incomes and families here in Scotland?’.”

When pressed on why the UK Government was not doing more to help businesses and families amid rising prices, Mr Sarwar said: “Of course, I would always urge the UK Government to do as much as it can, and everything it can to support household incomes and budgets.

“But is the job of the Scottish Government purely to commentate and point fingers, when the blame for this clearly lies with Donald Trump and Benjamin Netanyahu, to somehow pretend it is Keir Starmer’s fault? No.

“We’ve got to take action and the commitment I make is I will not be a commentator, I will be an active government –  not an activist government that you get with John Swinney.

“I will use the full force of our powers and our budget here in Scotland to protect jobs, household incomes and to drive down the cost of living, and that is why we are setting out this emergency package.”