Deputy First Minister Shona Robison has warned that her government has “limited room for manoeuvre” in setting her budget as she insisted her spending plans “will be one of the most difficult” since devolution.
Ms Robison has speaking after Chancellor Jeremy Hunt set out his autumn statement on Wednesday, which she has branded the “worst-case scenario for the Scottish budget”.
Mr Hunt cut National Insurance contributions by two percentage points.
But the overall tax burden on the public will remain at a record high, as the UK Government continues its freeze on tax thresholds for England.
The Deputy First Minister told BBC Scotland’s The Sunday Show that it was “very clear that the budget is at the expense of public services”, amid the National Insurance cuts.
She said: “I need to be honest with the public that this this budget, this UK Tory budget and the Chancellor's decisions have made my job even harder.
“This is the worst-case scenario for the Scottish budget. It'd be very, very difficult.
Read more: Robison: Autumn Statement 'worst case scenario for Scotland'
"This will be one of the most difficult budgets under devolution."
Ms Robison was pressed over the £545 million her government will receive in Barnett consequentials as a result of the Chancellor’s announcement.
She said that around £225 million of the funding is for this financial year, warning that “none of that flows through into the next financial year”.
She added that the funding “disappears to less than £11 million for the NHS”, warning that “immediately, that is our problem and a gap with NHS funding”.
Ms Robison said: “So if we were to then follow through with the spending plans, and the tax cuts that have essentially been the consequentials for next financial year, that would be at the expense of the NHS.
“So these are difficult decisions.
“And our priorities, of course are to make sure that we sustain our public services, but I need to be honest with the public that this will be extremely difficult because of those decisions.”
Read more: Analysis: Autumn statement: Can Tories be trusted again on the economy?
The Deputy First Minister claimed that “we're going we're seeing the biggest fall and living standards on record”.
She added: “And of course, we're seeing growth predictions reduce as well.
“This is a Tory government that has completely failed the economy. It's failed households. And of course, now it is failing public services.”
Ms Robison warned that when she delivers her budget on December 19, “we will have some very difficult decisions to make because we don't really have an awful lot of levers”.
Read more: Shona Robison takes 'exceptionally difficult decisions' to save £680m
She added: “We just still depend very heavily on the spending decisions made by the UK Government and that's why I'm laying out how impactful and difficult that will be for public services.
“We have some levers that are intact, but they're pretty limited. And we have pretty limited room for manoeuvre.”
Pressed about potential public service reforms, Ms Robison stressed that “the workforce will have to operate in a different way”.
She added that “the size of the public sector workforce will have to change”.
Pressed about potential public service reforms, Ms Robison stressed that “the workforce will have to operate in a different way”.
She added that “the size of the public sector workforce will have to change”.
The Deputy First Minister stressed the Scottish Government stands by “a position of no compulsory redundancies”.
She said: “Reform is very important, and it has become even more important as public funding is constrained. So, my job in government is to take forward reform.
“We're looking at how public bodies work together, the services that they deliver.”
Liz Smith, Scottish Conservative shadow finance and local government secretary, said: “In typical SNP fashion Shona Robison played the standard blame game by pointing fingers at the UK Government.
“She failed to commit to supporting businesses and showed no indication of welcoming National Insurance cuts.
“Shona Robison and the rest of the SNP Government need to take responsibility for their own decisions – their economic mismanagement has created a £1billion black hole in Scotland’s finances.
“If there is any further widening of the tax gap between us and the UK there is a real risk of harming our economic growth here in Scotland – the SNP must pass on support to businesses who will rightfully be frustrated by her refusal to answer.”
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel