FIRST Minister John Swinney called for the UK Labour Government to look at tax reform before “balancing the books on the backs of the poor” with benefit cuts.
On Tuesday, Work and Pensions Secretary Liz Kendall is expected to set out plans for benefits reform that could see the welfare budget slashed by as much as £6 billion.
Reports that this could include cuts to the personal independence payment (PIP), the main disability benefit, have sparked an outcry from Labour MPs – and Swinney said it was “outrageous” that Labour are eyeing up cuts to disability benefits rather than looking to raise money elsewhere.
The First Minister warned that reduction in budgets south of the Border could have a negative impact on his government’s ability to fund devolved benefits due to Barnett Consequentials – funds allocated to Scotland which reflect UK Government spending in England.
He said: “The Scottish Government is not clear about the plans that the UK Government is contemplating taking forward, but obviously there is the potential for these to have a damaging effect on the ability of the Scottish Government to provide the welfare support that we provide.
“I think it's outrageous that a Labour Government is proposing to balance the books on the backs of the poor. That's not what you should do.
“You should be supporting individuals that face vulnerability and difficulty and having an honest conversation about the public finances, and that's what's necessary just now – not the type of measures that we've seen speculated about, which will have a damaging effect on many vulnerable people in our society.”
He went on: “We live within our resources in the Scottish Government, and we've taken tough decisions on tax to enable us to do exactly that. The problem the Labour Government has got is that they're not prepared to take the tough decisions on tax.
“We've done that in Scotland. We've set out to the public what we will do, and we've raised the resources which enable us to operate a civilised and a caring society, and I think the UK Government should do likewise.”
Labour ministers insist that reform is necessary given the number of people in England and Wales claiming either sickness or disability benefits has soared from 2.8 million to about 4.0 million since 2019.
The benefits bill has risen with this increase, reaching £48 billion in 2023-24, and is forecast to continue rising to £67bn in 2029-30.
Social Security Scotland controls a range of benefits north of the Border, though many are still reserved to Westminster.
Amid a revolt from some Labour MPs, Emma Reynolds, the economic secretary to the treasury, said the most vulnerable would be protected.
Speaking to BBC Radio 4’s Today programme on Monday, she said: “We’ll set out further details, but the severely disabled and the most vulnerable will always get support, and there will always be a safety net.
“And some colleagues are jumping to conclusions about our plans before they’ve heard them, so I just urge them to be patient.”
