Scottish Labour leader Anas Sarwar has issued a stark warning to Chancellor Rachel Reeves, declaring that her forthcoming Budget is a critical moment to restore public faith in the party.
In an exclusive piece for The Independent, written just days before the Chancellor's make-or-break financial statement, Sarwar emphasised that the Budget on Wednesday presents an opportunity to "restore confidence and put this Labour government back on track."
A Pivotal Moment for Labour's Future
This intervention arrives at a perilous time for the party. Chancellor Reeves will deliver her Budget in less than two days, with a set of crucial elections for the Scottish Parliament looming in May. These elections are seen as potentially decisive for Sir Keir Starmer's future as Prime Minister.
Mr Sarwar is aiming to lead Scottish Labour to victory against the SNP, a feat the party has not achieved since 2007. This ambition comes despite Labour's strong performance in the last UK general election, where they won 37 of the 59 Scottish seats. Recent polls, however, place Labour in a troubling third position behind the incumbent SNP and the insurgent Reform UK.
The Erosion of Trust and the Path to Recovery
Sarwar identified the core issue as a severe deficit of trust. "Trust is vital in politics," he warned. "It is the trust of the public that gives a government the authority to legislate. And it is the trust of our businesses that will be vital in our drive for economic growth."
He acknowledged that this trust had been "stretched thin" in recent years, citing the damage inflicted by the previous Conservative government. He pointed specifically to the chaos of the EU exit process, Boris Johnson's dismissive attitude towards business, and the "economically illiterate self-destruction" of Liz Truss's mini-budget.
However, in a candid admission, Sarwar stated that the strain of ending the Tory failure has also damaged confidence between Labour and many in the business community. He asserted that this trust cannot be rebuilt with "slogans or short-term fixes," but must be earned through honesty about priorities and past failings.
The Demands for a Pro-Growth, Pro-Fairness Budget
For Sarwar, the upcoming Budget must be grounded in Labour values of fairness and include concrete action to address the cost of living and poverty. He outlined the necessity for a budget that tackles poverty, brings down bills, rejects austerity, and, crucially, restores business confidence.
He made a direct link between consumer and business confidence, arguing that "without the consumer confidence that comes from families with more money in their pocket to spend, growth will remain elusive."
This call for growth is especially urgent as the Office for Budget Responsibility (OBR) is reportedly set to downgrade the UK's growth forecasts until 2029, a move that would directly impact Ms Reeves's fiscal plans. Labour came to power in July last year with a central mission to boost economic growth, but since then, growth has flatlined and even dipped.
Sarwar was unequivocal about the consequences: "Without growth, we cannot fund public services, attract investment, or raise living standards." He called for a government that demonstrates integrity and provides the clarity and predictability that businesses need to thrive.
Expressing concern over a perceived sense of policy instability, he concluded that while voters and businesses have benefited from Labour's decisions, a "failure to project confidence and communicate those changes have left them feeling uncertain." The success of Wednesday's Budget, therefore, hangs not just on its numbers, but on its ability to rebuild the fragile trust upon which the government's authority depends.
