No return to austerity under Labour government – Reeves

The shadow chancellor said Anas Sarwar had clearly set out Labour’s fiscal policy.

Rachel Reeves was in Edinburgh with Anas Sarwar (Lucy North/PA) (PA Wire)

Rachel Reeves has said Anas Sarwar did not change Labour’s fiscal policy during Monday night’s TV election debate.

Labour’s shadow chancellor said there would be “no return to austerity under a Labour government” as she visited RBS’ offices in Edinburgh.

Alongside Scottish Labour leader Mr Sarwar, she took questions from members of the bank’s staff during an event on Tuesday.

The SNP accused Mr Sarwar of “blowing apart” Labour’s fiscal plan during an exchange with John Swinney at the STV debate, where they discussed Labour’s proposals for taxation, spending and borrowing.

Ms Reeves said this was not the case.

Speaking to journalists after the RBS event, she said: “Our fiscal rules are clear and Anas set them out last night.

“Labour would bring down debt as a share of our economy. We would balance day-to-day spending through tax receipts and, subject to that, we’d be able to borrow to invest in things that improve our country’s growth and productivity.

“What John Swinney needs to explain is why he’s opposed to an extension of the windfall tax that will enable that investment in infrastructure here in Scotland.”

Ms Reeves – who is running in Leeds West – was also asked how quickly she would set out her first Budget if she becomes chancellor in a Labour government after the election.

She said there are “proper procedures to go through”, including a 10-week process with the Office of Budget Responsibility.

“I will do the budget properly in my own time, but of course I’m raring to get going,” she said.

The shadow chancellor said there would be “no return to austerity under a Labour government” while taxes would not be increased for working people during the next parliament.

Asked if she would ever be open to further borrowing powers for the Scottish Government, she said her focus was on “growing the economy” and lowering taxes for working people, rather than “looking for new ways to borrow or new ways to tax, which is the approach of the SNP”.

Earlier, the SNP challenged Ms Reeves to “come clean and admit where the austerity axe will fall under the Labour Party’s damaging plan to impose billions of pounds of cuts to public services”.

SNP economy spokesman and candidate for Inverness, Skye and West Ross-Shire Drew Hendry said: “People in Scotland want an end to 14 years of Tory cuts – but the Labour Party is doubling down and will impose at least £18 billion of cuts under its plans, which will mean less money for Scotland’s NHS and schools

“With Anas Sarwar contradicting Reeves, it’s clear the Labour Party is not being honest about the devastating cuts they will make.”