John Swinney has indicated that the Scottish Government will not scrap free school meals, free tuition and free prescriptions, despite needing to make "hard choices" on public finances.

The First Minister said these were a key part of his administration's "social contract." 

His comments come after a senior official in the Scottish Government suggested ministers could look at scrapping the universal benefits in their bid to balance the books.

Caroline Lamb, director-general for health and social care and chief executive of NHS Scotland, told civil servants that Shona Robison's statement to Holyrood next week would be a “reset moment” across the whole of government.

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Speaking to journalists as he visited the Big Noise Raploch community music programme in Stirling, Mr Swinney said: “There’s an important social contract that’s available in Scotland which provides a range of services that are available to every single citizen.

“On the flip side of that, we’ve taken hard decisions to ask those on higher incomes to pay more in taxation.

“That’s the basis of that contract, some people pay more in taxation and everybody get access to a range of services. That’s the way I want it to stay.”

The Scottish Government is struggling to find cash after making a series of increased pay offers to public sector workers. 

 

Mr Swinney said: “The Scottish Government is going to have to make some hard decisions about living within the resources that we have available to us.

 

 

“We’re having to deal with the consequences of very significant levels of inflation that have eroded the value of public finances.

“We’re also having to deal with understandable pay claims from public sector workers that we are keen to resolve.”

The First Minister was also asked about the winter fuel payment.

Last month, the Chancellor announced that she would restrict the annual payout in England and Wales to those on pension credit or certain other benefits as part of her plan to tackle a £22 billion black hole.

According to ministers in Edinburgh that left them with a £160 million funding shortfall. 

Mr Swinney said that meant they had little choice but to follow suit. "We just don’t have the money,” he said. 

(Image: Andrew Milligan/PA wire)

The First Minister was speaking to the press ahead of a meeting in Glasgow with Ms Reeves. 

She had earlier attacked the SNP’s record on managing public finances, saying the party is “as guilty” as the Conservatives of spending beyond its means.

 

“The SNP Government is as guilty as the Conservative government of spending more than they were bringing in, and now the Scottish Government are having to make difficult decisions,” the Chancellor said.

 

“Anas Sarwar and the Labour opposition in Scotland were warning the SNP about the unsustainable position they were in.

“They SNP refused to listen, they made decisions that were not sustainable and now it is Scottish people who are paying the price for the decisions of the Scottish Government.”

Responding to the Chancellor’s comments, Mr John Swinney told the PA: “The Scottish Government has balanced its budget for every single year – we have lived within the resources available to us.

“The problem we’ve got is that the UK Government has not faced up to the reality of the pressures and the issues that have faced our public finances.

“I was warning throughout the election that there was a cumulative problem arising out of high inflation and the pay claims that had been settled, that we were facing enormous pressure within our budget.

“I was told by the Labour Party there was nothing to worry about and there will be no austerity – yet here is the Labour Party inflicting austerity on the people of Scotland.”

During her visit north of the border, the Chancellor also met with CBI Scotland. 

“We need every part of the UK working towards the same goal to reach our full potential – and Scotland will be central to our national mission for growth,” Ms Reeves said after the meeting.

“That is why the feedback and buy-in I heard from Scottish businesses this morning is so important.

“It is by working with business that we can fix the foundations of our economy and make every part of Scotland better off.”