THE Scottish Government will lay out the results of a fiscal review within two weeks of a UK Government emergency Budget, John Swinney has said.
Ministers pledged to undertake a budget review in response to the cost of living crisis, in a bid to identify funding from other spending areas that can ease the pressure on households. The new UK prime minister could hold an emergency Budget or other fiscal event after taking office in an attempt to tackle the crisis and the Deputy First Minister pledged to act quickly if that happened.
First Minister Nicola Sturgeon will publish her plans for the next year in the Programme for Government tomorrow, with Swinney due to give an update on the budget review and its impact on public-sector pay the following day.
He said: “The UK Government’s existing spending plans, coupled with Bank of England inflation forecasts, mean that the Scottish Government’s funding will fall by 4.5% in real terms next year.
“If inflation rises significantly higher, the resources available to us will erode even further at the very time when costs are increasing.
“With the new prime minister due to be appointed this week, it is vital that the UK Government now acts decisively to tackle this ongoing crisis.
“Further spending cuts to Scotland’s budget from the UK Government would be disastrous and would cost lives.”
