£30bn in budget for dealing with coronavirus welcomed by Borders’ MPs

Yesterday’s UK Government budget announcement by chancellor of the exchequer Rishi Sunak has been welcomed by the Borders’ two MPs for the £30bn it sets aside for dealing with the coronavirus pandemic currently spreading worldwide.
Rishi Sunak, the UK Government's chancellor of the exchequer, getting ready to deliver his budget yesterday, March 11, in London. (Photo by Dan Kitwood/Getty Images)Rishi Sunak, the UK Government's chancellor of the exchequer, getting ready to deliver his budget yesterday, March 11, in London. (Photo by Dan Kitwood/Getty Images)
Rishi Sunak, the UK Government's chancellor of the exchequer, getting ready to deliver his budget yesterday, March 11, in London. (Photo by Dan Kitwood/Getty Images)

Other parts of it welcomed by fellow Conservatives John Lamont and David Mundell include the ongoing freezes on duty on fuel and spirits such as whisky and a pledge of £1m to promote Scottish food and drink.

It’s claimed the extra £640m promised for the Scottish Government’s budget, following £1.3bn of additional funding announced last year is the largest year-on-year funding increase in real terms for a decade, but Holyrood’s Scottish National Party administration disputes that.

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Scotland’s whisky distilleries, including the only one in the Borders, at Hawick, could also benefit from £10m set aside for research into cutting their carbon footprint, and the region’s pubs and breweries will be relieved that a planned increase in beer duty was scrapped.

Other plans unveiled by Mr Sunak yesterday, March 11, include the abolition of the so-called Tampon tax and value added tax on digital products such as ebooks and magazines.

Berwickshire, Roxburgh and Selkirk MP Mr Lamont said: “The chancellor has unveiled a wide-ranging package of support for Scotland.

“With the Scottish Government receiving their biggest increase in funding for a decade, there are now no excuses for the SNP not fully funding our NHS.

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“Drivers in rural areas like the Borders are also going to be supported with another fuel duty freeze. This means that the average driver here is over £1,200 better off than under plans from 10 years ago.

“This is a budget which shows a commitment to our whole United Kingdom and all the nations and regions within it.

“It is clear that Scotland thrives and benefits from being part of our precious union.”

Dumfriesshire, Clydesdale and Tweeddale MP Mr Mundell said: “This was an excellent budget which will be good for the country at this challenging time.

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“One important measure for my large rural constituency will be the extension of the freeze on fuel duty for a 10th year. That will be welcomed by almost everybody locally and have a positive impact on businesses, including shops.

“I fully support the massive £30bn support package to steer the country through the challenges of the current coronavirus outbreak.

“Some measures being taken will be UK-wide, but I urge the Scottish Government to use the extra funds they receive wisely in devolved areas to fully support businesses and jobs during this difficult period.

“I’ve highlighted the difficulties the whisky industry is facing, and I’m glad the chancellor has responded. The freeze in spirit duty will be widely welcomed in my constituency and nationally.

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“The Scottish Government will receive £640m extra from this budget through the Barnett formula. I call on SNP ministers at Holyrood to match the UK Government’s ambition on roads and rail investment, particularly locally with urgent improvements to the A75, A76 and A7 trunk roads, for which they are responsible.”

The region’s MSPs are divided, along party lines, over the budget’s merits, however, with Rachael Hamilton applauding it and Christine Grahame giving it a more measured reception.

Ettrick, Roxburgh and Berwickshire MP Mrs Hamilton said: “Cutting taxes for 31m people, freezing beer duty and increasing the national living wage shows the UK Government delivering for workers across the Borders and the whole United Kingdom.

“Freezing spirits duty will also help our rural economy thrive, with distilleries providing high-quality, well-paid jobs. Scotland specifically benefits from this freeze with Scotch whisky being the pride of the UK’s food and drink sector.

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“I am delighted that the chancellor has been able to deliver on our promise to scrap the unfair Tampon tax, which would have not been allowed whilst still in the European Union.”

Walkerburn-based South Scotland Tory list MSP Michelle Ballantyne agrees, saying: “This was an excellent budget for both Scotland and the whole UK and at a time when we need it most.

“It was encouraging to see the chancellor lay out funding to ensure we are prepared for the challenges that coronavirus will bring and to ensure we protect workers and businesses as much as possible.

“The budget also highlighted the UK Government’s commitment towards promoting growth in Scotland, delivering an extra £640m in Barnett consequentials on top of the £1.3bn announced last year.

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“It is now up to the SNP government to pass on these extra resources to residents in the Borders in a meaningful way, rather than wasting it on more mismanagement.

“It’s been encouraging to see the Conservative UK Government investing in Scotland. If the SNP government was anything like as committed, people and businesses would be in a far better shape.”

Midlothian South, Tweeddale and Lauderdale MSP Ms Grahame is less enthusiastic, though, saying: “While I’m pleased to see the UK Government’s economic response to coronavirus following Scottish Government calls for this, we need confirmation of what this will mean for Scotland.

“We require urgent clarification on what funding Scotland will receive from the announcements made by the UK Government at a time when the prospects for the economy and public finances remain very uncertain as the short-term impacts of Covid-19 unfold.

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“It is vital that our businesses, employees, health service and the most economically vulnerable in our society are all protected through this time with any additional funding.

“I expect full consequentials from this additional funding – some 10% equivalent to the UK additional funding to its public services – and we need urgent clarification to provide clarity for Scottish businesses and NHS Scotland to ensure we can respond effectively.

“While this funding is welcome, it is still the case that Scotland’s budget is lower in real terms than it was in 2010-11.”