STEWART PATERSON

Political Correspondent

THE Chancellor has offered nothing for the poor and low paid in his first Autumn Statement according to campaigners in Scotland.

Phillip Hammond delivered his economic strategy on the back of Prime Minister Theresa May stating her government would stand up for the “just about managing” families.

Mr Hammond delivered a modest increase in the National Living Wage, still below the voluntary Living Wage backed by the Scottish Government.

He increased tax thresholds for the basic and higher rate taxpayers and pledged to carry on with a reduction in business rates.

Tax on petrol and diesel was frozen again and the triple lock protection for pensions continued.

He said he was able to borrow to fund a multi-billion pound infrastructure improvement plan to stimulate economic growth that will see £800m come to Scotland under the Barnett funding formula.

However he carried on the austerity agenda of his predecessor, George Osborn as he refused to reverse welfare cuts and said the spending limits on government departments would continue.

A change to Universal Credit allows another 2p in the pound to be kept by people returning to work under the benefits taper.

Mr Hammond said it was a budget for “investment in infrastructure and innovation”

Opposition parties and campaigners said it was a continuation of failure and the austerity agenda which had hit the poorest hardest.

The National Living wage will rise from £7.20 an hour to £7.50 for workers over 25s, still below the real Living Wage of £8.35 for all workers.

The personal tax free allowance will rise in April to £11,500 and towards £12,500 by 2020 and the higher rate (40%) threshold increased towards £50,000 in the same time.

John Dickie, director of Child Poverty Action Group in Scotland, said: “This Autumn Statement was hugely disappointing for those of us who hoped the Prime Minister was going to act to back up the rhetoric on supporting families who are ‘just about managing’. The Chancellor’s lowering of the universal credit taper is a sticking plaster to family budgets that are haemorrhaging losses imposed on them by his predecessor’s budgets.”

He said the universal credit change would benefit a single parent with one child by £170 a year but with the other previously announced welfare changes taking effect, will lose overall £3000 a year.

Peter Kelly, director of the Poverty Alliance, said: “We must not be lulled into a false sense of security by a few eye catching announcements by the Chancellor in today’s autumn statement.

“These measures are the fiscal equivalent of being pushed off a cliff with only a pillow to absorb the landing. Whilst changes to the taper rate for Universal Credit are welcomed, it in no way makes up for the cut in the Work Allowance for most families.”

Labour’s shadow chancellor John McDonnell said it was an “abject failure”.

He said: “Today’s statement places on record the abject failure of the last six wasted years and offers no hope for the future.”

“We’ve heard today there’ll be more taxes, more debt and more borrowing. The verdict could not be clearer, the so-called long-term economic plan has failed.”

Scottish Government Finance Secretary, Derek Mackay, said Scotland’s capital budget would still be cut by 8% over a decade.

He said: “This was a massive missed opportunity to end austerity. The Chancellor has failed to ease the punitive cuts that are hitting so many Scottish families.

“Instead he has continued the damaging austerity that is slashing the budget for public services, hammering family finances and failing to revive the economy.”

Mr Mackay will set out the Scottish budget next month at Holyrood.

Labour Scottish leader, Kezia Dugdale, said it was no change from the Tories.

She said “This Autumn Statement was more of the same old Tory mantra - cut, cut and cut again. “The Chancellor could have announced an end to the austerity which is damaging our public services and holding back working families.”

While Ruth Davidson, Scottish Tory leader, welcomed the statement and challenged the SNP to spend the cash wisely.

She said: “The SNP can also use this money to boost our creaking rail and road networks. There are no excuses not to act.”

Business leaders broadly welcomed the measures. Andy Willox of the Federation of Small Business said: “Mitigating the impact of the decline in sterling with an ongoing fuel duty freeze is a smart move. However, pressing ahead with another substantial increase to the National Living Wage will keep pressure on sectors like retail and social care.”

Liz Cameron, Chief Executive of Scottish Chambers of Commerce, said: “The news that £800 million of additional capital resources will be coming to Scotland through to 2021 as a result of the Autumn Statement is extremely good news for Scotland and will give the Scottish Government the ability to do more to address Scotland’s connectivity and housing needs and accelerate some long overdue projects,