🗞️ Letter from the Editor: Kwarteng has either set us u p for an era of blistering growth - or a terrible landing

Chancellor Kwasi Kwarteng has declared the UK Government is embarking on a “new approach for a new era” as he unveiled tax cuts as part of a ‘Growth Plan’ designed to combat spiralling inflation. View email online

News Opinion Sport I N S I D E R Sep 23, 2022 Neil McIntosh Editor of The Scotsman Hello from The Scotsman. Normally, Friday mornings are quite quiet - MPs are on their way home to constituencies, companies have made their big announcements, attention is turning to thoughts of sport and entertainment at the weekend. Not today. As I write, Chancellor Kwasi Kwarteng has unveiled a sweeping set of tax cuts which go - at least in terms of a single announcement - far further than anything under Margaret Thatcher, or any other government of recent memory. He plans to scrap the top rate of tax entirely, bring forward a cut in the basic rate of tax, and cut stamp duty as well. Some economists are comparing the "mini budget" to Anthony Barber's budget of 1972, and not in a way intended to be flattering. Barber's plans, intended to continue the Conservatives in power at an election two or three years down the line - were a disaster, leading to high inflation and industrial unrest, fuelled by an overseas crisis (the Yom Kippur War) and resulting soaring petrol prices. Any of that sound familiar? We will obviously all hope for better this time, but the furious reaction to the budget - from across the political spectrum, including members of the Conservative party who backed Rishi Sunak's more cautious economic plans - shows many people are alarmed at its radical tone. Many of Kwarteng's announcements will not apply directly to Scotland, of course, which has control of its income tax rates and thresholds. As we report this morning, instead his announcement will hand an extra £600m to the Scottish Governement, to spend as it wishes. So it now has a difficult decision to make - to mirror Kwarteng's plans or not? A big gap in tax levels between Scotland and the rest of the UK would create a lot of political pressure. But, given the scale of his bets, Kwarteng's announcement has an impact on Scotland even if the Sturgeon administration chooses not to follow its most radical changes, such as abolishing the top rate of income tax. He has either set us up for an era of blistering growth, despite all the external factors, or a terrible landing that we - and our children - could be paying for, for decades. Our time are busy taking the bones out of today's announcement - so be sure to keep an eye on Scotsman.com, and tomorrow's Saturday Scotsman, for the best possible analysis of what it means for you, Scotland and the United Kingdom. Aside from all that, do look out for tomorrow's Saturday Scotsman: we'll be previewing Scotland's now-significant game versus the Republic of Ireland, which could see us win our Nations League group. We'll be taking a look at why storms around the world are likely to be much more fierce this autumn, and reporting from the Isle of Canna on its very famous red phonebox. And, of course, we'll have our wonderful Weekend magazine: River City actor Jenny Hulse is our cover star, Gaby Soutar has been visiting Glasgow's new Fat Lobster restaurant, and we inspect the House of Bruar's new collection, which features Scottish fabrics and inspiration taken from our glorious landscapes. That, plus all the analysis you need on the impact of today's announcement, will - I hope - add up to the perfect start to the weekend for you. Best wishes, Neil McIntosh Editor, The Scotsman Chancellor hails 'new approach for new era' as he unveils extensive tax cuts Chancellor Kwasi Kwarteng has declared the UK Government is embarking on a “new approach for a new era” as he unveiled tax cuts as part of a ‘Growth Plan’ designed to combat spiralling inflation. Read more + What the mini-Budget 'Growth Plan' means for Scotland: Nicola Sturgeon's Government 'to receive £600m budget boost' as a result of tax cuts elsewhere Scottish ministers will receive more than £600 million of extra funding as a result of tax cuts elsewhere in the UK, the Treasury has said. Read more + How Liz Truss, Boris Johnson and Rishi Sunak may have helped push UK into stagflation recession – Scotsman Read more + Liz Truss’ government set to combat cost of living crisis with first mini-budget Read more + “I prefer not to speak” - Jose Mourinho spotted in Stormzy’s new music video Read more +

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