Deputy First Minister Kate Forbes has stepped into the tariffs crisis by urging the UK government to rip up its tax and energy plans and face the new reality of global trade.

Ms Forbes has echoed SNP Westminster leader Stephen Flynn‘s call for the national insurance hike to be reversed, and has called for closer ties with the EU.

She wants urgent action to reduce the cost of electricity and acceleration of the Acorn carbon capture and storage project.

The Deputy First Minister said: “The fundamentals of the Scottish economy are strong and we can be confident in the strength of Scotland’s offering on the global stage.

“But with the global economy continuing to be volatile and uncertain we need to see bold and decisive action by the UK Government to protect Scottish industry which the First Minister called for yesterday.”

She added: “It is time for the Chancellor to accept that her Budget has been overtaken by recent events. She should commit to a new approach which delivers investment and support for industry, just as we are seeing in countries such as Spain.

“Part of that must be an immediate u-turn on the National Insurance hike.

“And with the global economic situation continuing to be volatile, it is vital for business that we can have the closest possible trading relationship with our partners in the European Union. The UK Government needs to commit to the closest possible working and trading relationship with the EU – and ultimately to reverse Brexit.

“The risk to consumers and businesses of prices increasing should be mitigated by action to reduce bills, especially electricity bills.

“There are particular investment opportunities which could be a shot in the arm for Scottish businesses. In particular, giving the green light to the Acorn project would be transformational for Grangemouth, energy transition and key sectors. These opportunities should be our primary focus.

“The UK Government’s fiscal rules, tax on jobs and its commitment to Brexit are all relics of an economic era that has passed us by. It is time for a change in approach which delivers serious investment and support for business, workers and consumers.”

Daily Business comment: A call for action is hardly something the Prime Minister and the Chancellor are ignoring, but Sir Keir Starmer is right not to respond to the economic uncertainty with a knee-jerk response that might backfire.

The Chancellor’s reputation would be completely shredded if she reversed the increase in NICs so soon after companies and employees have gone through the pain of adapting to the higher rates.

Ms Forbes’ other suggestions are too long term and over-optimistic when the challenge is to ease immediate pressures. There is no certainty that a carbon capture scheme will transform the economy and, in any case, it will have no impact for at least a decade.

A better relationship with the EU is already on Labour’s agenda but reversing Brexit is off the table for at least five years.

If the Deputy First Minister really wants to help Scottish industry she should stop looking to Westminster and instead encourage her own government to take action.

That should include cutting business rates, investing in skills, supporting oil and gas, bringing forward road and rail projects, instigating a massive overhaul of our town and city centres, cracking down on the slow planning process and calling a halt to allocating taxpayers’ money to a long list of freebie services.