Scotland’s Deputy First Minister and Finance Secretary John Swinney has said that Scotland is continuing to pay the price of UK government’s austerity agenda as the Chancellor’s budget confirmed his Government had missed key targets on the UK’s economic recovery.
In the last substantial finance statement before the UK General election George Osborne confirmed he had missed his forecasts on deficit reduction with borrowing higher and tax revenues lower than expected.
The Finance Secretary also warned that the Chancellor’s decisions were continuing to hit the poorest in our society hardest with the Treasury confirming that those in the lowest 20% will face some of the hardest impacts of the austerity plan.
The majority of spending announcements simply recycle existing money meaning the Scottish Government will receive around £200m in Barnett consequentials. This makes up only 8% of the £2.7bn of real terms cuts that have been removed from Scotland’s budget since 2010 and have taken 25% of Scotland’s capital budget.
Swinney said: “The Scottish Government is focused on securing economic growth, tackling inequality and protecting our public services. The Chancellor’s budget fails to pass the test on all of these measures.
“Today’s budget shows the failure of the UK Government’s austerity policy and it is clear that we in Scotland are paying the price. In 2010 the Chancellor embarked on his austerity programme and instead of putting the finances on a sound footing we are seeing borrowing this year of over £50bn higher than expected, lower tax revenues and austerity extended by atleast a further two years.
“Just last week I wrote to the UK Government to ask them to use the Autumn statement as an opportunity to ensure that the benefits of economic growth are not only sustained but are made accessible to all. The Chancellor has not listened.
“The lowest earning households in Scotland will be among the hardest hit by the UK Government cuts.
“And while the Chancellor gives Northern Ireland the power to cut corporation tax his government is continuing to block the job creating powers Scotland needs.”
