Publication of the Scottish Government’s draft budget may be pushed back after the Chancellor delayed his Halloween statement, the Deputy First Minister has warned.
Jeremy Hunt announced on Wednesday that the statement he was due to deliver on October 31 will now be made on November 17.
Mr Hunt’s budget is expected to depart from the economic vision of former prime minister Liz Truss after Rishi Sunak was installed in Number 10 this week, with the Chancellor already having ripped up Ms Truss’s plans.
The Scottish Government announced an emergency budget review in August that would look at cutting spending in some areas to deal with rising inflation and costs, which was meant to be made to Parliament this week.
But the economic and political turmoil at Westminster forced its delay and could result in the draft budget – slated for December 15 – being pushed back as well.
John Swinney – who is in charge of Scotland’s finances while Finance Secretary Kate Forbes is on maternity leave – said: “This is an unwelcome and unnecessary delay by the UK Government which simply creates more economic uncertainty at a time when households, businesses and the wider economy all need as much certainty and stability as possible.
“It risks impacting on the timing of the Scottish Government’s own budget plans as we will now need to wait two-and-a-half weeks longer than previously proposed to see what the effect of UK tax and spending plans will be on devolved budgets.”
But the Deputy First Minister said the key point that should be taken into the budget is ruling out cuts to public spending.
“Above all, it is essential that the Chancellor heeds warnings not to impose renewed austerity, which would only worsen the extreme pressures already being faced by people and businesses as a result of inflation, rising interest rates and other economic factors,” he said.
Mr Swinney added the Scottish Parliament will be kept updated on the date of the emergency budget review statement and any delay to the budgetary process.
