News / ‘Precious little’ for Shetlanders in UK budget, MP says
THE UK Government’s autumn budget has provided Shetlanders “precious little” to celebrate, according to the MP for the Northern Isles.
Liberal Democrat politician Alistair Carmichael called the Labour government’s Wednesday announcement “disappointing”, saying it “simply will not move the dial where it matters”.
However, he praised the government for removing the two-child limit on benefits – something he called a “regressive Tory policy”.
The UK Government also ruled out new North Sea oil and gas exploration, but will allow new offshore fossil fuel projects to move ahead if linked to existing fields.
There was also no change to the windfall tax on oil and gas companies.
Another key budget announcement is a mileage tax on electric cars, which will see electric car drivers subject to a 3p charge per mile driven from April 2028.
Scottish Labour’s candidate for the Shetland seat at next year’s Scottish elections gave a more upbeat view on the budget than Carmichael.
John Erskine said the budget would deliver “real support for households in Shetland”, with the UK Government announcing it would slash £150 off taxpayers’ annual energy bills.
And Erskine said the decision to remove the two-child limit would lift around 95,000 children across Scotland out of poverty.
Carmichael, though, said he believed the “single most effective step” to deliver growth for the UK would have been to secure a better trade deal and Customs Union with the EU.
“We needed a bold plan to deliver growth, but this intervention simply will not move the dial where it matters,” he said.
“If the Chancellor cannot raise tax or cut spending then she must deliver growth – and yet the government has turned its back on the single most effective step it could take to fix this crisis.
“We could kick-start growth and fill the £90 billion Brexit-shaped hole in our public finances by securing a Customs Union with the EU.
“If they are serious about getting the economy moving and restoring public confidence in our country, that is where the government’s attention should be focused going forward.”
Carmichael said the rural economy in particular had been served up “pretty thin gruel from the Chancellor”.
“There was nothing for food producers facing the existential threat of farm inheritance tax hikes,” he said.
“Hundreds of farmers travelled to London to plead for the Chancellor’s support – but the government has turned a deaf ear.”
However Erskine – who will stand against SNP candidate Hannah Mary Goodlad and Liberal Democrat Emma Macdonald at next May’s election – called the budget a “major boost” for communities like Shetland.
He pointed to Labour’s decision to scrap vehicle excise duty for search and rescue vehicles, calling it a “win for the wider region”.
“Search and rescue teams serve some of the most challenging terrain in the UK, and many Shetlanders travel, work, and spend time in those areas.
“Labour has listened to their needs and acted — freeing up money for equipment, training, and safety instead of fundraising just to keep essential vehicles on the road.”
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