Robison left with little room after Budget ‘betrayal’
◆ Pleas from the Deputy First Minister to the Chancellor to deliver more capital funding for Scotland fall on deaf ears
finance secretary has accused Chancellor Jeremy Hunt of a “betrayal of public services” after just £295 million of extra funding was offered to Holyrood – and SNP ministers have reason to be upset.
There is plenty of politics at play as we head agonisingly towards a general election.
But the lack of public service funding, which will have come as no surprise to Shona Robison, has left her government facing an almost-impossible task of bringing forward capital spending projects, including affordable housing, new hospitals and transport projects.
After no extra capital funding was put forward by the Chancellor, SNP ministers are facing a stark 10 per cent cut to their capital budgets.
The UK government has pointed out that Scottish ministers can use their day-to-day revenue budget for capital projects if they wish but this would have a consequence on other vital frontline services, which are already stretched.
Holyrood’s revenue budgets have only been boosted by £295 million for the 2024/25 financial year. The vast majority (£237m) has been earmarked for NHS spending and £48m as a result of financial settlements for local government in England. The Scottish Government is unlikely to not put the full NHS funding into stretched healthcare services – both in terms of the need for funding and politically.
Ms Robison pleaded with the Chancellor before the Budget to deliver more capital funding to prop up a £200m cut to her government’s flagship affordable homes programme, which has received the biggest reduction from the Scottish Government.
Before Mr Hunt had uttered a word of his Budget, the Scottish Government insisted this was an opportunity for the Chancellor to right a wrong. But Ms Robison’s plea has fallen on deaf ears – and it leaves the Scottish Government facing an unenviable position of having to push ahead with its cuts to affordable homes and new hospitals.
The finance secretary has made clear her anger at the Budget, stressing that it contained “not a single penny more for capital funding” for her government. She said the money due to be passed to Holyrood as an impact of health spending by the Chancellor is “actually less than the in-year health consequentials of 2023/24 and less than what is needed to address the pressures we face”.
As she set out her opposition to the Budget, Ms Robison said she would “guarantee that this Scottish Government will not be passing on this UK government cut to our NHS”.
Ms Robison had been blunt ahead of the Budget that preelection tax cuts should be dismissed, and instead more funding should be pumped into public services. There is some irony here, given the Scottish Government has brought forward a council tax freeze, which is likely to feature in pre-election rhetoric by the SNP.
After the Budget, the Deputy First Minister was not impressed with the Chancellor’s pitch, claiming it was a “betrayal of public services across the UK”. She said “Scotscotland’s
This was less than what is needed to address the pressures we face Shona Robison
land has been badly let down by the UK Government”, warning that “more support is desperately needed for public services and infrastructure”.
The fears have, not surprisingly, been dismissed by the UK government, with Scottish Secretary Alister Jack warning SNP ministers there “can be no excuses for not providing excellent public services in Scotland”.
Mr Jack proudly highlighted “the Scottish Government will receive an extra £295m funding, on top of their record block grant”.
Other than the Uk-wide preelection give-aways such as the cut to National Insurance contributions and freezing fuel and alcohol duty, the UK government has offered up funding for Scottish projects.
There are particular deals for areas including Arbroath, Peterhead and Kirkwall, while cultural projects in Dundee, Dunfermline and Perth will also receive funding from Westminster. But let’s not forget about all the politics in action here as we head into a general election.
A cynic would suggest the Chancellor’s cut to National Insurance contributions and freezing alcohol and fuel duty are to win favour with voters. But many people would prefer to see more investment in public services, so it is a risky strategy after 14 years of austerity.
The SNP, while legitimately facing a grim public spending picture, will likely continue to tell voters the Tories have let down Scotland by squeezing the Scottish Government’s budget. It will be a key message as the SNP and Conservatives go head-to-head in marginal constituencies across Scotland.
The long-term consequences of the Budget for the Conservatives are likely to be handed over to Labour, barring a dramatic shift in the polls.
The Scottish Government has already set its Budget for the next financial year and has been heavily criticised for some of the funding choicesthe Chancellor’s Budget does little to ease that pressure.
Ms Robison will blame Westminster for the financial climate she has no option but to operate in, but it now becomes a matter of priorities for the Scottish Government.
There is very little the Scottish Government can do with the £295m it will receive other than to use the funding deal as political ammunition as we head into a general election where the SNP is under more pressure than it has been in some time.