John Swinney rules out cuts to universal benefits

First Minister John Swinney has ruled out cuts to universal benefits such as free university tuition and prescriptions.

However, the SNP leader warned that difficult spending choices would have to be made in this year's budget.

He said the government was grappling with "sky-high inflation" as it tried to meet public sector pay demands.

Speaking ahead of the SNP conference in Edinburgh, Mr Swinney insisted the party would offer the "hope Scotland desperately requires".

The Scottish government has introduced emergency curbs on all "non-essential" spending as it negotiates pay deals with council workers, doctors, nurses and teachers.

Ministers have already announced several cost-cutting measures - introducing means-tested winter fuel payments, the return of peak rail fares, scrapping free bus travel for people in the asylum system and delaying a digital devices programme.

Asked if universal benefits would be "on the table" for cuts, Mr Swinney replied: "No, they're not.”

He said Scotland had a “social contract”, with those with the “broadest shoulders” paying more in tax to fund universal access to free university tuition and prescriptions, as well as wider access to concessionary travel and childcare.

The first minister told BBC Scotland News: “So our social contract is a combination of asking those on higher earnings to pay slightly more in taxation - that generates about £1.5bn of extra investment in our public services - and then the provision of a range of universal services from which everybody benefits.”

People who earn more than £28,850 in Scotland - slightly above median earnings - pay more income tax than they would elsewhere in the UK.

The first minister's comments come after Caroline Lamb, the Scottish government’s director general for health and social care, reportedly warned that public finances were approaching a “tipping point”.

According to The Times, external, she told civil servants that universal benefits could be among those considered for cuts.