Marra urges Scottish Government to pass on UK energy bill payment

The Scottish Government must pass on the Chancellor’s £100 energy bill payment, the leader of Scottish Labour has said.

John Healey announced the move in his first Budget since taking the job on Wednesday.

Households assessed as being council tax bands A to D will receive the money, with Mr Healey telling the Commons the devolved nations will receive “their share”.

It is not clear how much funding will come to Scotland as a result of the policy but the Scotland Office has said the Budget will result in a £600 million boost to the Scottish Government’s coffers.

Reacting to the Budget, Michael Marra said: “Over 1.8 million households in Scotland would be eligible for the household energy payment if the SNP passes it on.

“That money should be used to give Scots breathing space, not to plug holes in the Scottish Government budget.”

Mr Marra, who was in London this week for meetings with the Chancellor and Energy Secretary Miatta Fahnbulleh, added: “Millions of Scots will benefit from Labour action on the cost of living such as the warm homes discount, scrapping VAT on energy bills and scrapping the standard charge on gas.

“This Budget backs industry, particularly in defence and energy, and I want to see the Scottish Government work to ensure Scotland can grab the opportunities that brings.

“It means more money for Scottish public services. As a result of the Budget today, there will be a further £600 million coming to the Scottish Government.

“Since the election in 2024, the Scottish Government has received more than £18 billion in additional funding to spend on public services.

“I want to work with the SNP to ensure this funding will deliver better outcomes from Scots, cutting waiting times in our NHS, raising attainment in our schools, lifting children out of poverty and growing our economy.”

Scottish Secretary Douglas Alexander said: “This is a Budget that puts money back in the pockets of Scottish households, backs businesses and puts Scotland firmly at the heart of the UK Government’s plan for growth and reindustrialisation.”

He added: “There’s a boost for Scotland’s public services too, with an extra £600 million for the Scottish Government to spend.”

Scottish Liberal Democrat leader Alex Cole-Hamilton said the Budget was “missing a real growth plan with Europe at its heart”.

Scottish Tory leader Russell Findlay said Scots would be “forgiven for asking, is that it?”.

He said: “John Healey’s first Budget was a damp squib which will do nothing to boost economic growth.”

The Chancellor failed to cut the benefits bill, Mr Findlay said, adding that failing to confirm the approval of the Rosebank oilfield near Shetland was a “massive disappointment”.

SNP Westminster economy spokeswoman Kirsty Blackman said the Budget showed “the Labour Government doesn’t get Scotland”, adding: “Instead of providing meaningful help, it has abandoned families in the face of soaring bills and has imposed another betrayal on Scotland’s energy – with the decision to scrap Scottish carbon capture funding.

“Andy Burnham promised to cut the cost of living but every major household bill has increased on his watch – and the UK Budget completely fails to address the scale of the challenge families are now facing.”

Charities tackling poverty were also critical of the Budget, with Child Poverty Action Group in Scotland director John Dickie saying: “There were crumbs of comfort for struggling families from the UK Chancellor today but the flat-rate energy support measures in England take no account of the presence of children in a household, leaving millions of vulnerable children exposed this winter.”

Gordon Llewellyn-MacRae, interim director at Shelter Scotland, said: “The Prime Minister was right to make homelessness his priority on day one. Yet today marks a missed opportunity, with a Budget that doesn’t go far enough to address the housing emergency.”

Citizens Advice Scotland director of impact David Hilferty said: “The scale of intervention must meet the scale of the emergency.

“While the new household energy payment is welcome, it amounts to a fraction of the rise to bills this year alone, nevermind the huge hikes predicted for in January.

“Much more is still needed to afford real and meaningful protection against unaffordable energy bills.”

Sandy Begbie, chief executive of Scottish Financial Enterprise, said: “For businesses in Scotland and across the UK, most Budget measures can be broken down into those that help drive economic growth, and those that do not.

“Given economic growth is the Government’s central mission, the Chancellor did disappointingly little to apply that lens to this Budget, and avoided tackling the long-term Government addiction to high public spending.”