SCOTLAND’S Finance Secretary is set to update MSPs next month outlining urgent action being taken to address “profound financial pressures”.
In a letter to the Parliament’s Finance and Public Administration Committee, Robison said it was necessary to reduce spending to deliver sustainable finances, particular as it was unclear if the UK Government would fully fund public sector pay deals.
In the letter, she said the Scottish Government faces “a very challenging environment” and reiterated how she had no choice but to replicate the UK Government’s decision to restrict eligibility for the Winter Fuel Payment to pensioners.
She confirmed she would be looking to bring a “full update” to Parliament in early September to set out the scale of the fiscal pressures in detail.
Robison added she is working closely with her counterparts in Wales and Northern Ireland, along with the Chancellor and the Chief Secretary to the Treasury, to ensure that all avenues are explored to navigate the financial challenges in the months and years ahead.
In her letter to convener Kenneth Gibson she said: “The Scottish Government, along with government and public sector bodies across the UK, faces a very challenging environment as we manage our finances through the current financial year and set our budget for 2025-26.
“I am working with my Cabinet colleagues to agree the necessary actions to reduce expenditure and ensure our finances are on a sustainable footing. Further to this, additional measures are now necessary following the UK Treasury’s recent audit of public spending and lack of clarity over whether their decision to deliver Pay Review Body recommendations will be fully funded.
“Subject to the agreement of the Parliamentary Bureau, I will be looking to bring forward a full update to Parliament in early September. During this statement, I will set out in detail the scale of the fiscal pressures that we are facing, in 2024-25 and beyond, and the action the Scottish Government is taking to address this challenge.”
Robison additionally made clear her desire to reach an “early consensus” on a date for the Budget following early confirmation of the UK Autumn Statement set to be given on October 30.
Earlier this month, Robison confirmed a public sector recruitment freeze in all but “essential frontline” posts.
Chancellor Rachel Reeves has required “about a third” of the cash needed to cover pay rises for NHS workers and council staff to be “funded through departmental cuts”, Robison said.
She added that that “has led to the position where we are having to take these exceptional measures in order to constrain spend and create the headroom to manage”.
