Scotland pledged £1.5bn but FM claims austerity re-run

Jeremy Hunt claimed Scotland will receive £1.5 billion to help fund the NHS and schools as he tried to unpick Liz Truss’s disastrous spending plans.

The Tory chancellor said the SNP government would benefit from the extra cash to help keep public services afloat as he unveiled his Autumn Statement.

Nicola Sturgeon immediately attacked his wider policies and claimed his Budget would drive more Scots to support independence.

Mr Hunt was setting out a package of £30bn of spending cuts and £24bn in tax rises over the next five years.

The Conservative said the measures were necessary to cut inflation.

Mr Hunt also announced windfall taxes on excess profits made by oil and gas firms in the North Sea will increase from 25% to 35% to bring in £14bn.

But there was no announcement from the chancellor revealing which green freeport bids have been successful in Scotland.

The Highlands and the north-east could be set to benefit from the special tax zones, but applicants are in the dark.

Mr Hunt said he was focused on improving economic growth and stabilising the nation’s finances after months of chaos while Ms Truss was in charge.

The chancellor said to MPS: “Today we deliver a plan to tackle the cost-ofliving crisis and rebuild our economy.”

Key policies he introduced south of the border included lowering the rate at which the 45p tax becomes payable and removing the stamp duty cut in 2025.

It is unclear over what timeframe the £1.5bn will be given to the Scottish Government. The money is generated because of spending decisions on health and education in England, which the UK parliament does not control in Scotland.

The funding could give Deputy First Minister John Swinney some leeway to increase pay for public sector staff ahead of his Holyrood Budget next month.

The acting SNP finance chief announced spending cuts and savings worth £600 million earlier this month in a major hammer blow to Scotland’s finances.

He had painted cuts to health and social care services as a necessary evil to improve pay packages for workers.

In Holyrood, Ms Sturgeon said: “I think it is clear from what we know that the UK Government is repeating the mistakes of the past.

“Austerity, which they appear to be reintroducing, does not work, and will have significant consequences for people, businesses and public services.

“These plans are likely to worsen the extreme pressures already being felt as a result of inflation and rising interest rates.”

Nicola Sturgeon criticised the Autumn Statement.