The chancellor’s mini-budget has been branded 'economically and morally bankrupt' by both the SNP and Labour in Scotland.

Kwasi Kwarteng announced tax cuts and stamp duty cuts for England and abolished the 45% higher rate for the highest earners.

He reversed the National Insurance increase put in place by Rishi Sunak as chancellor.

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He also lifted restrictions on bankers' bonuses in a bid to bring more investment to the UK financial sector.

The Conservatives say the measures will boost the economy but opponents argue only the richest will feel any benefit.

While the tax cuts don’t apply in Scotland, where the Scottish Parliament sets rates, there will be an impact on the Scottish Government budget. The National Insurance cut will apply in Scotland.

Nicola Sturgeon reacted to the measures claiming they were reckless.

She said: “The super-wealthy laughing all the way to the actual bank - though I suspect many of them will also be appalled by the moral bankruptcy of the Tories - while increasing numbers of the rest relying on food banks.”

She added it was “all thanks to the incompetence and recklessness of this failed UK Government”.

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Scottish Labour leader Anas Sarwar’s thoughts were in a similar vein.

He said: “This mini-budget demonstrates whose side the Tories are on. It is economically illiterate and morally bankrupt.

“They have lifted the cap on bankers' bonuses, given a tax cut to those at the very top, and delivered a windfall instead of a windfall tax for the energy giants making record profits, all while letting energy prices almost double and working people struggle to make ends meet.”

The chancellor however said it will mean economic growth leading to higher pay.

Kwarteng said: “Economic growth isn’t some academic term with no connection to the real world. It means more jobs, higher pay and more money to fund public services. 

“This will not happen overnight but the tax cuts and reforms I’ve announced today - the biggest package in generations - send a clear signal that growth is our priority.

 "The fiscal strength of the UK Government has allowed thousands of businesses in Scotland to keep more of their own money to invest, innovate, and grow. We are cutting National Insurance for 2.3 million Scottish workers, saving them an average of £285.” 

Anti-poverty campaigners said it will do nothing to help those who need it most.

Peter Kelly, director of Poverty Alliance, said: “The chancellor’s statement, with its tax cut for the wealthiest, makes clear where his priorities lie.

“Instead of ending the benefit cap, he scrapped the cap on bankers' bonuses.

"Those on the highest incomes will get even more; those in low paid part-time jobs will be expected to work harder just to stay afloat.

"His priorities are the wrong ones and fail to reflect the values of justice and compassion that are at the heart of our society. This mini-budget will do nothing for the people who need help the most."