Shona Robison: The key omissions from Chancellor's Budget

Before Rachel Reeves took to her feet at the despatch box, I very clearly set out how it was essential the Autumn Budget must deliver more funding for infrastructure to grow the economy and support the path to net zero. 

Funding for hospitals, schools, transport and other infrastructure is vital for economic growth and cutting emissions.

And, while the Chancellor did signal a welcome increase in capital investment, a large amount of this will come through the National Wealth Fund.

We urgently need to understand how Scotland can get its fair share of this funding – not least since it's being paid for by Scotland’s resources in the form of North Sea oil taxation.

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It is disappointing the Chancellor failed to mention the Acorn carbon capture and storage project, which would provide new opportunities for workers in the oil and gas sector in Grangemouth and in other parts of Scotland.

We need a firm commitment to a timeline and funding for the Acorn project, which is vital for making progress on the Scottish and UK Government’s shared ambitions for reducing emissions and growing the economy.

The offshore oil and gas sector still has an important and valuable role to play in our economy and energy, and the skills in the sector will be crucial for the success of the transition to net zero and renewables industries.

Chancellor Rachel Reeves unveiling her Budget in the Commons (Image: PA) Agriculture requires future funding certainty due to its multi-annual funding commitments and long lead-in time for farmers, crofters and land managers. This was provided through the multiannual EU CAP framework. 

The short-term UK Government Autumn Statement settlement was imposed contrary to the Bew Review recommendation for collective engagement to agree the principles of future intra-UK allocations.

Transferring the Agriculture and Rural budget into the Scottish Block grant imposes the Barnett formula on any future changes to the budget flowing to Scotland. It is wholly inappropriate to apply a population based formula for land based support.

This will be particularly galling for our farmers and crofters given their commitment to climate and nature action on the huge land area in Scotland available for tackling the twin nature and climate crises. 

With the lingering effects of the cost of living crisis still hitting the economy and family finances, it is also disappointing that there was no mention of abolishing the two-child limit, which evidence shows would be one of the most cost-effective ways to reduce child poverty. Neither was there mention of funding for the winter fuel payment. 

The choice not to act on poverty by taking those steps is all the more staggering when the Chancellor projected that she would have a surplus of almost £11 billion in a few years. The message is simple, they could afford to scrap the two child limit and reinstate the winter fuel payment – but they are choosing not to.

I was relieved the Chancellor heeded our calls to retain key investment allowances to support Scotland’s valued offshore energy industries to help deliver a just transition for the workers.

But it is imperative the UK Government now needs to work with industry to set out a stable long-term fiscal regime that will give the sector much needed certainty and treat it fairly, alongside other parts of the UK economy.

But one year of investment does not address the 14 years of austerity Scotland has already experienced.

What we need is sustained investment over a number of years, not a boom-and-bust Budget that could potentially result in severe cuts to public spending as its consequences bite. 

I am acutely aware too higher National Insurance Contributions will have consequences for businesses, the third sector and public services, and I hope the Chancellor has carefully considered these potential impacts.

Many businesses are still feeling the impact of the energy and inflation shock and higher NI contributions will increase their running costs, particularly in sectors such as hospitality where staff costs make up a large share of their costs. 

As I prepare to set out the Scottish Budget in just a few weeks’ time, it will become crucial to understand the details the Chancellor has not so far provided, and exactly how they will impact Scotland.