The cost-of-living crisis shows up the “fiscal constraints of devolution”, Scotland’s Deputy First Minister has said as he prepares to set out the Scottish budget.
The draft budget will be published at soon after 2pm on Thursday afternoon, against a backdrop of high inflation and costs, with John Swinney saying this week there would be “difficult decisions” required.
In previous years, the budget has been subject to intensive negotiations with other parties to secure the required votes to pass, but with the agreement between the Scottish Government and the Scottish Greens, the budget can be passed without opposition party support.
Swinney said previously that the statement would focus on tackling child poverty, public services and moving towards net zero, while adding that the Scottish Government “will use its limited powers to the maximum extent that is responsible”.
“Our budget goals are mutually beneficial and represent a distinctive approach to the economic challenges we face,“ he commented.
“The Scottish budget will take further steps to address inequality and eradicate child poverty, it will encourage a just transition to net zero, creating wealth and opportunity across the country.
“It will be the catalyst for reforms necessary to ensure our first-class public services remain sustainable in the face of the challenges to come.
“I would like to go even further, but the cost-of-living crisis has also laid bare the fiscal constraints of devolution, as we cannot borrow to support day-to-day expenditure when times are hard to assist us through these difficult days.
“It is clear that businesses and households are paying a steep price for the economic mismanagement of the UK Government.
“In setting this budget, the Scottish Government will use its limited powers to the maximum extent that is responsible, to meet the challenges faced by the people of Scotland.”
The Scottish Conservatives said on Wednesday the Scottish Government should fully pass on the £1.2bn of consequentials from recent UK Government spending decisions and drop the £20m spend slated for an independence referendum the SNP hopes to hold next year.
Scottish Labour stated that they want to see an increase to public sector pay to ensure no-one earns less than the living wage, as well as calling for the freezing of water charges.
Labour is also calling for a freeze on water charges and a £100 rebate for households, as well as help for homeowners facing repossession and action on the cost of commuting.
Finance spokesman Daniel Johnson said: “With Scotland’s finances in turmoil due to Tory and SNP incompetence, the need for a budget that delivers on the priorities of the people of Scotland has never been greater.
“Scottish Labour is clear – the priority for this budget must be tackling the cost-of-living crisis by targeting support to those most in need and ending the scandal of poverty pay across the public sector.
“Every penny of spending in this budget must deliver value for money for the people of Scotland.
“On Thursday, the Deputy First Minister must set out clearly how he will reduce waste and end spending to fix mistakes made by SNP ministers.”
Meanwhile, the Scottish Liberal Democrats called for the budget to include investment in energy efficiency, social care and long Covid support.
Party leader Alex Cole-Hamilton took part in Deputy First Minister John Swinney’s meeting with the opposition last week.
“Given that the Finance Secretary appears to have bought the support of the Greens simply by spending tens of millions on independence, some may wonder why we are even taking part in budget talks.
“Despite these obstacles, Scottish Liberal Democrats have always believed that opposition parties should seek to improve budgets where they can.
“Our deal on the eve of the last election secured £120m extra for mental health, among other improvements.
“I have told the Finance Secretary that our priority for capital spending is to insulate people from the cost-of-living crisis and the climate emergency.
“The government could launch a national emergency insulation programme, with a particular focus on those areas with the most hard-to-heat homes.”
Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.
