Sturgeon blasts £2bn pledge as ‘smokeand mirrors’
AUTUMN BUDGET 2017
PHILIP Hammond’s Budget pledge of £2billion for Scotland has been dismissed as “smoke and mirrors” by First Minister Nicola Sturgeon.
The SNP leader also said it was “disappointing” that the UK Chancellor had not refunded VAT payments made by the police and fire service north of the border, after confirming these will be scrapped.
Police Scotland and the Scottish Fire and Rescue Service (SFRS) have had to pay the levy since they were cre- ated in April 2013, and are the only such services in the UK that are required to do so. Ending the payments will save the forces £35million to £40m a year.
Mr Hammond insisted SNP ministers had always been aware the two organisations – formed from the merger of the previous regional forces – would be subject to the charge.
“The SNP knew the rules, they knew the consequences of introducing these bodies and they ploughed ahead anyway,” he told the House of Commons.
But he said the 13 Scottish Conservative MPs elected in June had persuaded him that “the Scottish people should not lose out because of the obstinacy of the SNP government”.
Meanwhile he said that spending decisions made in the Budget would mean £2bn for the Scottish Government in what is known as Barnett consequentials.
Ms Sturgeon said both the scrapping of VAT for the police and fire service in Scotland and the announcement of a new tax break for the North Sea oil industry were “very welcome, if overdue”.
But on the VAT charges she said that not backdating the measure to cover earlier payments was “disappointing and unfair to emergency services”. She also said that “the headline £2bn ‘extra spending’ figure for Scotland has much less to it than meets the eye”.
The First Minister tweeted: “Firstly, it is spread over this and next three years.
“Second – and more important – more than half of the headline £2bn (£1.1bn) is in the form of Financial Transactions – money that can be used for limited purposes only and has to be repaid by @scotgov.
“Taking account of today’s announced changes, next year’s (2018/19) @scotgov revenue budget still facing real terms CUT of £239m – imposed by the UK government.”
She also said the “Chancellor’s announcement of extra £350m for NHS in England this year translates into net increase in @scotgov budget of just £8m”.
Meanwhile she criticised the Chancellor for failing to announce spending “or any real commitment” to lifting the public sector pay cap.
Ms Sturgeon has already pledged the Scottish Govern- ment will end the one per cent cap on wage rises that has been imposed on public workers.
She said: “Lots more to mull over – but early indications are of more smoke and mirrors than substance. #Budget2017.”
The headline announcement in the Budget was the abolition of stamp duty for first time property buyers on homes worth up to £300,000.
However this will not apply in Scotland, where ministers have introduced the Land and Buildings Transaction Tax – which applies a levy of two per cent on prop-