The Chancellor’s u-turn on the issue of cutting tax credits in this week’s budget was welcomed by all, and rightly so. It was a victory for those who had campaigned with such vigour against what would have been a devastating blow to so many who work hard to support and look after their families.
However, the Chancellor’s programme of austerity goes on, with deep cuts to spending on business, transport, local government and the environment across the UK.
In Scotland, we will feel the hit on day-to-day public services spending with our resource budget decreasing in real terms by almost six per cent over the next four years. That means the Scottish Government’s total discretionary budget by 2019-20 will be £3.9 billion, or around 12.5 per cent, lower in real terms than it was in 2010-11.
Nobody denies there is a need to get public finances on a sustainable footing, but the swingeing nature and disproportionate scale of these cuts is unhelpful to our wider economy. What’s worse is these cuts are unnecessary and go beyond what is needed. This is austerity of choice not necessity.
The Scottish Government has laid out in detail an approach that would reduce the deficit and see debt falling. Crucially, however, it would allow us to continue to invest in infrastructure and public services and protect the most vulnerable.
Compare this to the ideological approach of the Chancellor, which will see more people suffer for longer.
The proposed cuts targeted working families on low incomes – around quarter of a million families in Scotland would have been impacted - and I join them in a collective sigh of relief over the reversal on tax credits.
Credit is being claimed on all political sides and the decision highlights the importance of a strong voice in opposition to UK Government policy.
But we must not lose sight of the £12 billion welfare cuts that the Chancellor has confirmed will still go ahead.
So the target moves from low-income working families to the even more vulnerable - those who find themselves in need of financial support now face being further punished.
For our part, the Scottish Government will continue to do all we can within our means to protect those people from this ongoing austerity programme and will continue to pressure the UK Government to rethink these cuts.
With the announcement of the UK Spending Review complete, we can now turn our attention to the Scottish Budget on December 16 and our efforts to deliver inclusive growth for all of our citizens.
This week I was able to give the green light to £330 million investment in 12 health and education facilities after the Office for National Statistics approved our approach to changes in European accounting guidance.
The Scottish Government has always prioritised public infrastructure projects as a critical tool for growing our economic recovery.
In light of the continuing constraint being applied to public finances – including capital budgets – we will continue to take forward programmes supporting additional investment in our economy and our asset base, creating jobs and enhancing services.
These projects will make an enormous difference in their communities, not just in the jobs that their construction will bring but in the health and education benefits they will provide to local people.
Next month, I will announce a set of decisions which will demonstrate our agenda on fairness and sustainable growth. My proposals will be designed to fulfil our objectives of creating growth within the Scottish economy and tackling the persistent inequality that is a drag on economic growth within Scotland.
So, our decisions will be framed around how we can motivate and encourage a stronger level of economic performance in Scotland and to build on the achievements that have been made in recent years.
That is what this Scottish Government has always done – invested in the future, protected our public services and supported jobs and the economy.
And, that will remain at the heart of my Budget next month.
We will do everything in our power to resist the austerity of the Westminster Government and strain every sinew to build a stronger Scotland. People would expect nothing less.
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