NICOLA Sturgeon has claimed that the economic turmoil in response to the UK Government’s tax-cutting strategy is worse than the 2008 financial crisis.

The First Minister has criticised the UK Government’s decision to cut tax for the super-rich in England – while the Chancellor has also cut the basic rate or tax and stamp duty south of the border.

Ms Sturgeon has also raised concerns after the International Monetary Fund called on the UK Government to rethink its strategy, while the Bank of England has launched a temporary bond-buying scheme to try and curb soaring borrowing costs for the UK Government.

The First Minister was speaking in front of Holyrood’s conveners’ committee.

She said there was now an “inevitability of a sharp rise in interest rates” which would have a “very profound impact” and “push more people into very serious financial stress”.

Ms Sturgeon also suggested that the impact on the UK economy is possibly more severe than the 2008 global financial crash.

She said: “The UK is in the midst of an unfolding and rapidly deteriorating economic and financial crisis.

“It’s going to be ordinary people that pay the price of that.”

The First Minister added: “I don’t think we have had a more serious economic situation, possibly even including 2008 which was a global financial crisis, but in the UK, possibly not a more serious situation in our memories.”

Reacting to the Bank of England intervention and market turmoil, Nicola Sturgeon said the situation was "really extraordinary and unprecedented".

The First Minister told MSPs: "I think there needs to be very urgent and immediate action taken.

"I don't think we should see the policies announced on Friday as inevitable.

"As an immediate symbol of some kind of good sense being restored, the decision to abolish the top rate of tax should be reversed.

"I don't think it's possible to overstate the damage of this budget.”