Scotland’s Deputy First Minister has warned the Chancellor that additional funding is needed to support public services.
Shona Robison has written to Jeremy Hunt ahead of his spring Budget statement on March 6, urging him to heed the International Monetary Fund’s (IMF) warning on further tax cuts.
Ms Robison, who is also the Scottish Finance Secretary, said there is a “clear need” for increased investment after her Government faced tough choices in its 2024-25 Budget outlined in December.
The letter also calls for increased cost-of-living support, including an end to the two-child benefit cap.
She also said national insurance powers should be transferred to Holyrood so ministers can design a tax system that suits the Scotland’s needs.
The Deputy First Minister said Mr Hunt’s autumn statement last year had been a “worst case scenario” for Scotland, adding the block grant had fallen by 1.2% in real-terms since 2022-23, with capital funding cut by almost 10%.
“With the UK Government’s spring Budget it is vital that they change course,” she said.
“There is a clear need for increased investment by the UK Government in public services and infrastructure, as has been recognised by the IMF.
“I would urge the Chancellor to use whatever headroom may be available to prioritise investment in public services and infrastructure over tax cuts.
“The Scottish Budget has prioritised funding for social security and public services in line with our three missions. Yet our spending remains constrained by the decisions of the UK Government.
“The UK spring Budget is a key opportunity to increase finding for our vital public services and infrastructure that supports our economy and communities, as well as supporting people with the cost of living and investing in our net zero future.
“I urge the UK Government to rise to this challenge.”
A UK Government spokesperson said: “The Scottish Government is receiving a record £41 billion per year settlement from the UK Government and has significant tax, borrowing and welfare powers to deliver for the people of Scotland.
“Our decisive action in tackling inflation has meant we’ve been able to deliver a £340 national insurance cut and the largest ever cash increase to the national living wage for 2.6 million Scottish workers as part of our plan to grow the economy, while also supporting households with £3,700 in cost-of-living support.”