Finance Secretary has outlined the urgent
action being taken to balance the 2024-25 Scottish Budget in the
face of “enormous and growing pressure on the public
finances”.
Highlighting the continuing effects of Brexit, the COVID-19
pandemic, the war in Ukraine and the cost of living crisis,
alongside UK Government spending decisions, Ms Robison said
difficult decisions were required.
The total savings, worth up to £500 million, include:
- Implementing emergency spending controls across the public
sector, particularly targeting recruitment, overtime, travel and
marketing
- Ending the ScotRail Peak Fares pilot
- Mirroring the UK Government's policy to means test Winter
Fuel Payment
- Making additional savings across portfolios, including in
sustainable and active travel and in health and social care
The Finance Secretary said she was also currently planning to use
up to £460 million of additional ScotWind revenue to address
in-year pressures in 2024-25.
Ms Robison said:
“This Government has consistently warned of the significance of
the financial challenge ahead. Prolonged Westminster austerity,
the economic damage of Brexit, a global pandemic, the war in
Ukraine, and the cost of living crisis have all placed enormous
and growing pressure on the public finances. In the last three
years alone cumulative CPI inflation has seen prices increase by
18.9%, diminishing how far money will go for households and
governments alike.
“In the face of these challenges, the Scottish Government has
stepped in to support people and services where it has been
needed most: on social security, health and public services. But
we have done so without equivalent action from the UK Government,
which has repeatedly failed to properly review the adequacy of
funding settlements.
“We cannot ignore the severe financial pressures we face. We will
continue to be a fiscally responsible government and balance the
budget each year, as we have done every year for 17 years and as
we will do again this year. But this will mean we must
unfortunately take difficult decisions along the way.”
Background
The Finance Secretary has outlined the savings in a letter to the Finance and
Public Administration Committee (FPAC).
Ms Robison also proposed that the next Scottish Budget takes
place on the 4th December, subject to the agreement of FPAC and
the Scottish Fiscal Commission.
Fiscal pre-budget update:
Cabinet Secretary for Finance - 3 September 2024 - gov.scot
(www.gov.scot)
Scottish Budget - gov.scot
(www.gov.scot)
UK Government decision
ends universal fuel payments - gov.scot (www.gov.scot)
ScotRail Peak fare removal
pilot report published | Transport Scotland
