East Kilbride politicians have given their reaction to Chancellor Rachel Reeves’ blockbuster Budget announcement.
The Chancellor announced tax rises worth £40 billion to fund the NHS and other public services.
However, companies will have to pay National Insurance at 15 per cent on salaries above £5,000 from April, up from 13.8 per cent on salaries above £9,100, raising an additional £25 billion a year.
There is also an extra £3.4 billion for the Scottish Government.
Joani Reid, MP for East Kilbride and Strathaven, has welcomed the UK Government’s new budget, describing it as a necessary step towards “building a stable economic future” for East Kilbride and Strathaven.
She says the budget reflects Labour’s commitment to supporting working families, small businesses, and essential public services across Scotland.
Ms Reid told Lanarkshire Live: “The budget includes several key measures aimed at easing financial pressures and providing practical support for households and businesses. The National Living Wage will increase from £11.44 to £12.21 per hour, benefiting over 200,000 of Scotland’s lowest-paid workers. Fuel duty will remain frozen, and there will be a 1p cut on the price of a pint in pubs, offering small savings that help to ease everyday costs.
“In addition, the earnings threshold for carers will rise from £151 to £181 per week, giving carers the opportunity to earn more while continuing to receive support.
“In a historic settlement, the budget delivers targeted support for Scotland, including £1.4 billion for public services this financial year and £3.4 billion next year. This funding means Scotland will receive more per person than equivalent UK Government spending in other regions, a boost that will directly benefit people across East Kilbride and Strathaven.”
Joani Reid MP noted that while these measures are positive steps, there is much to rebuild and strengthen.
She added: “Of course, it’s tough. Rebuilding after years of mismanagement isn’t easy, but we’re fixing the foundations. This budget is about stability and restoring trust. It’s not about grand gestures; it’s about steady progress and ensuring we have the resources to make real improvements in people’s lives.”
Commenting on the specific measures in the budget, Ms Reid said: “This budget brings meaningful support to people across East Kilbride and Strathaven. The increase in the National Living Wage means thousands of workers here will have a bit more to take home each month.
“The freeze on fuel duty will help households manage transport costs, and the 1p cut on a pint offers a boost for our local pubs and hospitality sector. Meanwhile, the rise in carers’ weekly earnings limits is a lifeline for those balancing work and caring responsibilities.”
The local MP highlighted the benefits for small businesses, emphasising that a simplified tax process will help local enterprises thrive, saying: “In addition to support for families and individuals, Labour has introduced measures that benefit small businesses, like a revamped HMRC system, which will ease the burden on our local entrepreneurs. Our goal is to make it easier for small businesses to grow and thrive, which ultimately strengthens our local economy.”
Commenting on the broader vision of the Labour Government and the challenges Scotland faces following SNP mismanagement, she went on: “After years of chaos, the new Labour Government is focused on strengthening our economy and supporting communities without imposing further austerity. But there is much more to do, and this is only the beginning.
“Scotland has been left to bear the consequences of SNP mismanagement – record NHS waiting lists, projects over budget, and essential resources spread too thin. Today’s budget is a step in the right direction, but we need careful stewardship, accountability, and responsible management if we’re to achieve lasting change.”
East Kilbride SNP MSP Collette Stevenson said that the SNP has “consistently” called on the Labour Government to ditch its commitment to keeping Tory fiscal rules.
She said: “After fourteen years of Conservative austerity, this UK budget should have completely turned the page but people in Scotland are still paying the price for Brexit and Westminster cuts.
“I welcome the money set aside for compensation for people affected by the infected blood scandal as well as the postmasters and postmistresses impacted by Horizon. However, I’m actually really disappointed that there was nothing to compensate WASPI women – women who have been hammered by State Pension age inequality.
“Equally, Labour has shockingly decided to keep cruel Tory policies like the bedroom tax and the two-child cap, which are pushing more and more children into poverty every day, even though campaigners say scrapping these measures is the most cost-effective way to tackle child poverty. Sadly, Labour have also decided to plough on with their cuts to the Winter Fuel Payment – a move that could punish up to 12,000 pensioners in East Kilbride.”
Ms Stevenson added: “While the new UK Government’s first budget is a step in the right direction, it will not protect people from the ongoing cost-of-living crisis. I hope the Chancellor will recognise the need for long-term investment in public services and in our infrastructure, as well as deliver financial certainty through multi-year budgets in future.”
Commenting on the claims that the Scottish Government’s budget will increase, the MSP went on: “While there are indications of an increase in the budget available to the Scottish Government, which is positive, we need to note that the UK Budget will likely lead to our budget being slashed due to Labour cuts on culture, environment and transport funding. We will need to see the net implications of the budget.”
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