After months of enduring a zombie government while the Tories fought amongst themselves, new Prime Minister Liz Truss seems hell-bent on abandoning any pretence that she cares about the majority of people in the UK.
One might expect the SNP to criticise new Chancellor Kwasi Kwarteng’s “Financial Statement” last week - so called to avoid scrutiny by the Office for Budget Responsibility - however, condemnation has been almost universal.
The Joseph Rowntree Foundation said: “This mini-budget wilfully ignores families struggling through a cost of living emergency and instead targeted its action at the richest.
“It leaves those on the lowest incomes out in the cold with no extra help to get them through winter.”
The New Economics foundation added: “This mini-budget was totally divorced from reality. Today’s announcement amounts to a massive transfer of income to the very richest at the height of the cost of living scandal, when millions on low and modest incomes are being hammered.”
The Institute of Fiscal Studies view is that “Mr Kwarteng is not just gambling on a new strategy; he is betting the house”.
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While the Poverty Alliance said: “Governing is about priorities. The Chancellor’s tax cut for the wealthiest makes clear where his priorities lie.
“He scrapped the cap on bankers’ bonuses. Those on the highest incomes will get even more; those in low paid-part time jobs are expected to work harder just to stay afloat.”
The ‘City’ was also scathing. The pound lost three per cent of its value in a matter of hours, forcing up interest rates a further 0.5 per cent.
Having already risen 2.5 per cent this year, this means the mortgage on an average priced North Ayrshire house, now £150,000, has shot up by £3,750 this year.
In England this dwarfs the £230 a year the lowest earning 50 per cent of taxpayers will receive in tax cuts while the richest five per cent gain a whopping £8,560 a year.
Under devolution Scotland has no powers to change income tax rates before the new financial year in April. However, mortgage and other costs for hard-pressed Scots will hit home from next week.
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Energy costs continue to climb, and I challenged the UK Government over its plans to tackle rising domestic energy bills by allowing them to rise 27 per cent next month from an average of £1,971 to £2,500 a year.
Millions of households are struggling, while businesses, charities and public sector bodies are being impacted.
More than half of small businesses, which will receive only six months of assistance, expect to stagnate, downsize or fold next year, and energy intensive facilities like schools and hospitals face spiralling costs.
At Westminster I called on the UK Government to urgently provide additional support for energy intensive businesses such as manufacturing and hospitality.
Britain is already Europe’s most unequal country and measures announced last Friday will see the gap between the wealthy and everyone else widen and deepen, while fuelling inflation even further.
The Tories are putting the interests of their rich friends and financial donors far above the rest of us.
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