Humza Yousaf: UK and business leaders react to 'absolute chaos' as Scotland's First Minister resigns

Politicians and business leaders have reacted to the announcement of Mr Yousaf’s resignation. Speaking at Bute House, Mr Yousaf called for a leadership election as soon as possible, but said he would stay in office until a new leader was selected.

Mr Sunak said: “We haven’t seen the details yet of what’s happening in Scotland, but what people in Scotland deserve is a government that is focused on what they care about and not constitutional wrangling and obsessing about independence."

The Prime Minister added: “From the moment I got this job, I said that I’m happy to work constructively with the government in Scotland to deliver for people on the things they care about, which is why we have brought freeports to Scotland, attracting jobs and investment.

“And what the SNP Government should be focused on is day-to-day issues like the economy, like the NHS, not obsessing about independence or, indeed, gender recognition.”

Labour leader Sir Keir Starmer described the situation in the Scottish Government as “absolute chaos” and called for a “fresh start” in Scotland.

“I despair at the situation in Scotland – it’s absolute chaos now from the Scottish Parliament, from the SNP,” he said. “So you’ve got chaos in the Scottish Parliament, chaos in the Westminster Parliament.”

The Labour leader said the Scottish people had been “fundamentally let down” and “all the SNP can offer is chaos”. He said: “We’ve got to turn the page on this now – we need that general election and a fresh start.”

Scottish Secretary Alister Jack said: “It was the right thing for the First Minister to resign. Humza Yousaf’s leadership has lurched from crisis to crisis from the very start, and he could not command the confidence of the Scottish Parliament. Scotland now needs a stable, functioning Scottish Government focused on the issues that matter most to people – fixing public services and growing the economy.”

Roz Foyer, general secretary of the Scottish Trades Union Congress (STUC), praised Mr Yousaf for his “collaborative approach with trade unions” and his “unwavering support” for the people of Gaza.

She said: “While the First Minister did take some progressive steps on income tax, his premiership ran into difficulty with the council tax freeze and it is clear that his successor must take giant strides on wealth and property taxation if we are not to be stuck in a recurring cycle of decline across our public services, our economy and our politics.

Ms Foyer added: “It’s clear that the Scottish Parliament can be a force for good. But it must begin to take the bold action needed to redistribute income, wealth and power across our society if it is rebuild the trust of the people of Scotland.”

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Mr Yousaf attempted to mend relations with Scotland’s business community after he came into power, creating his “New Deal for Business”, which was unveiled in April last year and pledged to “explore how best to support businesses and communities”.

However, he came under fire for his beleaguered deposit return scheme, which was delayed until October 2025, the growing income tax differential between Scotland and the rest of the UK, and the failure to support hospitality with the 75 per cent rates relief applicable south of the Border.

Dr Liz Cameron, chief executive of the Scottish Chambers of Commerce, called for the new First Minister to “prioritise economic growth”. She said: “We need to be confident that the Scottish Government is pulling in the same direction to support business, grow the economy and create jobs.”

Dr Cameron added: “The First Minister was right to mention Scotland’s place on the world stage and Scotland’s enviable international reputation. The next first minister must work with business to turbo-charge our efforts to attract global investment and send out a clear message to the world that Scotland is open for business.”

Tracy Black, CBI devolved nations ambassador for the Confederation of British Industry (CBI), called to have the “vacuum filled quickly” to ensure stability for Scottish businesses.

She said: “Whoever comes in as first minister must put addressing Scotland’s faltering economy first. Without a competitive and resilient economy that prioritises investment, the ambition to deliver sustainable economic growth will fall short of the mark.”

Other business groups also called for economic stability.

David Thomson, chief executive of Food and Drink Federation Scotland, said: “We need a stable Scottish Government to provide the confidence needed for manufacturers to invest in making their businesses more resilient, productive and sustainable.”

David Lonsdale, director of the Scottish Retail Consortium, said the organisation had “valued” its engagement with Mr Yousaf and his Government. But he said the outgoing First Minister’s “pre-eminent priority” should be economic recovery.

He said: “There is a pressing need to lift private sector investment, productivity and growth. After all, an expanding economy is good for living standards, job prospects and government revenues. If the economy recovers, other policy challenges become more manageable. Conversely a weak economy will exacerbate the existing pressures on households and public finances.

“Central to this should be a plan to ease the regulatory burden and lower the tax burden on business by scrapping the mooted public health surtax on grocery stores, and finally delivering on the pledge to restore business rates parity with England for medium-sized and larger commercial premises.”