Widespread condemnation came after the Chancellor of the Exchequer Rachel Reeves made the budget announcement last Wednesday.
Trade organisations and opposition politicians branded it “harmful”, and threatening to agriculture while it lacked the “fundamental change” needed to inspire investment in the Highlands and Islands.
However, the Shetland Labour candidate for next year’s Holyrood election welcomed the announcement as a “major boost” for the region.
An extension on the freeze on National Insurance thresholds was announced by Mrs Reeves, alongside changes to salary sacrifice pension contributions above £2,000. There was also a freeze on fuel duty but a pay-per-mile fee introduced for electric and hybrid vehicle drivers from April 2028.
More workers will be coughing up on taxes, with a further extension to the personal allowance – the amount a person can earn before they are taxed – until 2031.
NFU Scotland was amongst the most vocal after chancellor’sannouncement to Westminster last Wednesday.
The farmer’s union branded the budget as “ill-thought out” and claimed it was “entirely at odds” with the best interests of the country and rural communities.
NFU Scotland president Andrew Connon said the government’s budget was a “step in the right direction” but it still failed to address issues which affected “hard-working farming families”.
“Despite months of warnings from all four UK farming unions, the government continues to push ahead with a policy that is ill-thought-out, harmful and entirely at odds with the national interest in food security and thriving rural communities,” Mr Connon said.
“We fought this every step of the way – from Westminster meetings to standing on top of a combine addressing thousands of farmers – because we know what is at stake.”
The union will continue to fight the case for rural communities and the agricultural industry, he said.
NFU Scotland said it would analyse the details of the budget and meet Scottish MPs at parliament last week.
The National Sheep Association said Mrs Reeves’ announcement offered “little reassurance” for its members.
The association’s chief executive Phil Stocker said there was a lot of anticipation ahead of the budget but he and his members were left “uninspired”.
Offshore Energies UK (OEUK) also condemned the government’s decision to reject replacement of the Energy Profits Levy (EPL) in 2026.
This was a move, it claimed, would cost tens of thousands of jobs, cripple investment, and undermine Scotland and the UK’s energy security.
OEUK’s chief executive David Whitehouse said the government had “turned down” investment and “chosen a path” which would see the industry lose thousands of jobs.
“This is not over,” Mr Whitehouse said.
“We will keep pressing for change – this industry’s people, their communities and the value of this strategic national asset are too important to dismiss.
“The government was warned of the dangers of inaction – they must now own the consequences and reconsider.”
Scottish Conservative MSP Jamie Halcro Johnston claimed the budget was marred by “higher taxes and falling economic growth forecasts”. The list MSP slammed the chancellor for breaking her fiscal promises and raiding for taxes.
Rural motorists will be “hit hard” by the new EV and hybrid-electric duty that the chancellor has introduced, Mr Halcro Johnston said.
“It is no secret that people here are more dependent on their cars,” the Scottish Tory said. “We have to travel further to get around, access public services and go to work. A new pay-per-mile charging system is a kick in the teeth for those who have chosen an electric or hybrid vehicle, in good faith.”
“This is nothing more than a revenue-generator for the Treasury, who are expecting already hard-pressed motorists pay to fill the holes in Labour’s budget.” He also called out the Labour government’s “tinkering” with the tax on family farms.
Hundreds of farmers attended a protest outside Westminster before the budget announcement last week.
Mr Halcro Johnston backed the protestors, claiming the tax “threatens to destroy family farming for the next generation.”
He added: “I am sure their actions are supported by many across the Highlands and Islands who know all too well how Labour’s tax will impact our agricultural communities. How it will hit many of our farmers and strip investment out of our businesses.
“Labour should have listened to the pleas of local farmers and agricultural businesses and reversed this cruel and damaging tax.”
Northern Isles MP Alistair Carmichael branded the budget as disappointing, with it doing very little to “move the dial” when it comes to economic growth.
Mr Carmichael welcomed the scrapping of the two-child limit on benefits, estimated to mean that 450,000 fewer children are in poverty by 2029-30.
However, he warned that “the single most effective step” to delivering growth would be to secure a better trade deal and customs union with the EU. There was “precious little” to celebrate for rural communities, he said.
“There was nothing for food producers facing the existential threat of farm inheritance tax hikes,” The Liberal Democrat said. “Hundreds of farmers travelled to London to plead for the Chancellor’s support – but the government has turned a deaf ear.”
“If the chancellor cannot raise tax or cut spending then she must deliver growth – and yet the government has turned its back on the single most effective step it could take to fix this crisis.”
Speaking before the budget announcement, Mr Carmichael praised the farmers and rural representatives who staged another protest against the controversial inheritance tax. Farmers had been backed into a corner, he said, with their only options to give up or fight back.
Mr Carmichael added: “We all know that if we are to achieve the sort of growth that this country needs, then the rural economy has got to be empowered and enabled to make their contribution to that growth – because producing food is one of the most important parts now of keeping this country secure and safe in the years ahead.”
However, John Erskine – the man standing for election on behalf of the Labour Party in the Shetland constituency next May – said this budget was a “win” for the region.
The chancellor’s budget delivered “practical support” and would help with energy bills, raise wages and tackle child poverty.
“Shetland and the Highlands and Islands have huge potential in energy, innovation and skills and this UK Labour government is fixing our economy and creating opportunities for working people, growing our economy and investing in public services,” Mr Erskine said.
“This is all whilst the SNP are calling for tax cuts for energy companies raking in billions and hiding from their record of failing to make sure Scots benefit from Labour’s austerity ending investment.”
He also stressed that the budget delivers real support for households in Shetland facing some of the highest living costs in the country.
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