Cuts to public spending by Westminster could have “severe knock-on impacts on the Scottish budget”, Deputy First Minister John Swinney warned, as he called on the UK Government to find additional cash for Holyrood.
Mr Swinney is calling for the Scottish Government’s budget for 2022-23 to be increased in line with inflation – saying this will help fund both public services and pay rises for those providing them.
With Chancellor Jeremy Hunt due to unveil his autumn statement on Thursday, the Scottish Deputy First Minister warned politicians south of the border that they must not “repeat the mistakes of the past” by introducing austerity measures.
Mr Swinney warned: “The prospects for next year and beyond are very concerning. Reductions in UK departmental spending on the scale that is being trailed would have severe knock-on impacts on the Scottish Budget and our public services.
“It is vital that the Chancellor takes steps to ensure that people are supported, public services are protected and devolved governments have the funding to deliver for the communities we serve.”
Mr Hunt is looking to find up to £60 billion from a combination of hikes and spending cuts – with Prime Minister Rishi Sunak making clear his government will take the “difficult decisions that are required to fix” issues caused by his predecessor in No 10, Liz Truss.
Mr Sunak, speaking from Bali where he is attending the G20 summit, repeatedly refused to apologise for the Tories’ handling of the economy.
However he acknowledged on Sky News that “mistakes were made”, adding: “What I want to do now is fix them.”
However Mr Swinney insisted: “The UK Government must not repeat the mistakes of the past. Scotland has already suffered a decade of UK Government imposed austerity which has disproportionately hurt the poorest and most vulnerable in society – it does not work and will inflict misery on people, put pressure on our public services and hamper our economy.”
The Deputy First Minister continued: “With the UK forecast to enter recession in the coming months – one the Bank of England warns may be the longest in 100 years – cutting public spending risks prolonging that recession, hampering efforts to restore the public finances.
“The Chancellor must rule this out and pursue an alternative to austerity that invests in public services and the economy.”
The Scottish Government has already announced £1.2 billion of spending cuts, following an emergency budget review.
Calling on the UK to make additional funding available to Scottish ministers, Mr Swinney said: “We are facing exceptional challenges – a cost-of-living crisis, soaring inflation and a Scottish Government Budget which is worth £1.7 billion less than when it was introduced last December.
“An additional inflationary increase in the block grant is needed to support us in addressing these challenges, as part of an overall approach that balances long-term fiscal sustainability with the increases in public spending that are needed.”
