HOUSEHOLDS BRACED FOR BREXIT IMPACT AS LIVING STANDARDS FACE FURTHER SQUEEZE: 27th November 2020
LOW DEAL OR NO DEAL WILL HAMMER HOUSEHOLDS AT WORST POSSIBLE TIME
The SNP has warned that households across the UK face a double hit to their incomes and livelihoods as the Tory government imposes an extreme Brexit in just a matter of weeks on top of the economic crisis caused by the coronavirus pandemic.
Following the Chancellor's Spending Review, analysis from the Resolution Foundation found that average pay packets could be cut by £1,200 a year by 2025, and that "weaker pay growth and higher unemployment will serve to prolong Britain’s living standards squeeze."
Its chief executive added that the “pandemic is just the latest of three ‘once-in-a-lifetime’ economic shocks the UK experienced in a little over a decade, following the financial crisis and Brexit. The result is an unprecedented 15-year living standards squeeze.”
Meanwhile - with the UK set to leave the transition period in a matter of weeks - Scottish Government modelling of a low deal exit estimates that Scottish GDP would be 6.1% lower by 2030 compared with continued EU membership - costing around £1,600 per person in Scotland.
Commenting, the SNP's Deputy Westminster leader Kirsten Oswald MP said:
"The economic crisis caused by the coronavirus pandemic has delivered a devastating hammer blow to our economy, businesses, as well as costing countless jobs.
"However, instead of bringing forward a meaningful package of financial measures to help people, the Tory government is forcing households to also brace for the Brexit impact - inflicting yet another hit to incomes and living standards at the worst possible time.
"Imposing a low deal or no deal exit - either of which will harm the economy and further exacerbate the Tory unemployment crisis - is the very last thing already struggling people need imposed upon them.
"With the Chancellor's refusing to introduce meaningful package of support needed to protect jobs and livelihoods, analysis of the Spending Review concluding that average pay packets could be cut by £1,200 a year by 2025, and Scottish Government estimating that a basic free trade agreement could see a hit of £1,600 per person - the Tories are undermining our economic recovery.
"Brexit has already taken £4bn out of Scotland's economy and the UK's exit from the transition period at the end of next month will push many more people into poverty and hardship, cost even more jobs and push businesses to the brink.
"With the Tory government threatening Scotland's recovery by failing to provide the investment the economy and public need, slashing pay for millions of workers and blocking the devolution of powers - it's clear that Westminster is not acting in Scotland's interests.
"The only way to properly protect our economy, jobs, people's livelihoods and our place in Europe is by becoming an independent country."