Scottish government confirms £500m in cuts

Scotland's Finance Secretary Shona Robison has announced up to £500m of funding cuts as the government seeks to make savings in this financial year.
Ms Robison told parliament the country was facing "enormous and growing" financial pressure, including additional costs of £800m in this financial year. She cited public sector pay deals, "prolonged" Westminster austerity, inflation, the pandemic and the war in Ukraine. As well as direct cuts, the government will reallocate up to £460m raised in an auction of seabed plots for offshore projects - cash that was previously earmarked to tackle the climate crisis.

The finance secretary told parliament: "We cannot ignore the severe financial challenges we face.
"We will continue to be a fiscally responsible government and balance the budget each year - as we have done every year for 17 years and we will do again this year.
“But this will mean we must unfortunately take difficult decisions along the way.”

Opposition figures pointed to a Scottish Fiscal Commission report that found much of the financial pressure on the public purse “comes from the Scottish government’s own decisions”.

The Scottish government introduced emergency curbs on all "non-essential" spending last month, including a recruitment freeze. It said cost-cutting measures were necessary amid pay negotiations involving council workers, doctors, train drivers, nurses and teachers. Ms Robison’s announcement comes the day before First Minister John Swinney is due to unveil his first Programme for Government, setting out his administration’s policy goals.

Responding to the statement by the Finance Secretary Shona Robison MSP, Sarah Medcraf CE of Moray Chamber, said: "Businesses in Moray, like those across Scotland, are feeling the pressure of economic uncertainty. While we recognise the need for tough financial decisions, it is crucial that these changes do not place additional burdens on local businesses that are already striving to stay competitive.

"We urge the government to focus on policies that support business growth and investment, ensuring that our communities can continue to thrive."

Dr Liz Cameron CBE, Chief Executive of the Scottish Chambers of Commerce, said: “The Finance Secretary’s statement underlines the scale of the challenge facing the public finances. Businesses understand that tough decisions must be made, but we also need certainty from the government that growing the economy remains the top priority.

“The Finance Secretary is right to initiate reforms and seek efficiencies. As highlighted by Audit Scotland, reform of the public sector is needed to deal with longer-term financial pressures. How these will be implemented will require transparency to ensure businesses are not faced with new additional costs or taxes.

“We have been clear about what businesses are asking for: a reduction in the overall taxation burden which is undermining the ability of Scottish business to attract and retain talent; a close look at cutting the mountain of regulation adding costs to business and consumers; a coherent energy strategy which protects jobs and investment.

“We do not underestimate the scale of the challenge which is impacting communities across the United Kingdom. That’s why we need to see a clear plan of how the Scottish and UK Governments intend to work in partnership to support economic growth and business investment which is the only route to fund vital public services.”