Close Menu
Invest Insider News
    Facebook X (Twitter) Instagram
    Tuesday, February 17
    Facebook X (Twitter) Instagram Pinterest Vimeo
    Invest Insider News
    • Home
    • Bitcoin
    • Commodities
    • Finance
    • Investing
    • Property
    • Stock Market
    • Utilities
    Invest Insider News
    Home»Finance»SNP choices contributing to financial pressure
    Finance

    SNP choices contributing to financial pressure

    August 27, 20244 Mins Read


    PA Media Shona Robison PA Media

    Finance Secretary Shona Robison says emergency spending curbs were “unavoidable”

    The Scottish government’s own decisions are to blame for “much of the pressure” facing the country’s finances, a watchdog has said.

    The Scottish Fiscal Commission (SFC) – the official independent economic forecaster – warned the SNP government would need to make “difficult decisions” to balance its budget.

    It also highlighted “significant uncertainty” about UK government funding for Holyrood.

    Finance Secretary Shona Robison has introduced emergency curbs on spending describing them as “unavoidable”.

    The Scottish government has said “painful choices” are required to fund public sector pay deals, while accusing the UK government of limiting its options by imposing austerity.

    Prime Minister Sir Keir Starmer has warned that October’s UK Budget will also be “painful”, citing a a £22bn black hole in Treasury finances.

    He said he had no other choice and those with the broadest shouldest “should bear the heavier burden”.

    Getty Images Keir Starmer Getty Images

    Prime Minister Sir Keir Starmer has warned the public about the state of the UK’s finances

    Ms Robison is due to set out in-year cuts in a statement to parliament next week. The Scottish government will announce more comprehensive spending plans for 2025-26 in its budget later this year.

    As it released a report on the state of the country’s finances, the SFC said while decisions made by the UK government had contributed to pressure on the Scottish public purse, “much of the pressure comes from the Scottish government’s own decisions”.

    It said a council tax freeze, more generous public sector pay deals than in other parts of the UK and social security reforms had all “added to the in-year pressures”.

    ‘We need more transparency’

    SFC chairperson professor Graeme Roy said: “The past choices of the Scottish government narrow its room for manoeuvre now and in the future.”

    He added: “With pay making up more than half of the Scottish government’s day-to-day budget, we need more transparency and planning around pay awards at budget time to avoid disruptive spending controls being introduced part way through the year.”

    The commission said the government had budgeted for a 3% limit to pay increases, but that this would be exceeded by agreements being struck, with more negotiations under way.

    On devolved welfare benefits, it said ministers have chosen to spend £900m more than the Treasury allocated in a block grant, and that is on course to reach £1.5bn within five years.

    Responding to the report welcomed the report, Ms Robison said: “The first minister and I have both made clear that, following the UK Chancellor’s July statement, the Scottish government continues to face the most challenging financial situation since devolution.

    “I will be providing an update to parliament on the urgent action being taken to address these profound financial pressures.”

    PA Media bin strike in Edinburgh PA Media

    The government has intervened to help avoid public sector strikes, including those involving waste workers

    To help pay for public sector pay deals and avoid strikes, Ms Robison has ordered a halt to all non-essential spending, as well as a recruitment freeze for all but the most pressured jobs in the NHS.

    Ahead of the announcement next week, some spending decisions have already been announced – including introducing means tested winter fuel payments, the return of peak rail fares, scrapping free bus travel for asylum seekers and delaying a digital devices programme.

    Cash is also being diverted from nature restoration and flood defences and expanding a free school meals initiative.

    The Scottish government recently provided extra funding to help Cosla offer a pay increase of at least 3.6% to local authority workers.

    Pay deals for doctors, nurses and teachers are yet to be agreed.

    Ms Robison has said pay increases were not be fully funded and would require cuts from other areas.

    She said ministers have had to deal with “huge fiscal headwinds” in recent years due to the Covid pandemic, the cost of living crisis and soaring inflation.

    “All of these things impact on devolved administrations and the only lever we have, in-year, are spending controls,” the minister added.

    She defended the SNP administration’s record since 2007 and said the country’s finances were being run “efficiently”.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleInspire Investing Receives Perfect Score for Proxy Voting Behavior for Second Consecutive Year
    Next Article Knight Frank upholds forecast but awaits Budget – Mortgage Finance Gazette

    Related Posts

    Finance

    Why analysts believe Mutuum Finance (MUTM) is the only DeFi crypto asset capable of a 2026 moonshot

    February 17, 2026
    Finance

    IIFL Finance ₹500 crore NCD base issue fully subscribed within hours of opening

    February 17, 2026
    Finance

    Top Finance Stocks in 2026

    February 15, 2026
    Leave A Reply Cancel Reply

    Top Posts

    How is the UK Commercial Property Market Performing?

    December 31, 2000

    How much are they in different states across the US?

    December 31, 2000

    A Guide To Becoming A Property Developer

    December 31, 2000
    Stay In Touch
    • Facebook
    • YouTube
    • TikTok
    • WhatsApp
    • Twitter
    • Instagram
    Latest Reviews
    Bitcoin

    Babylon Secures $15M to Push Bitcoin DeFi Beyond Wrapped BTC

    January 9, 2026
    Utilities

    Utilities companies told to tidy up ‘graffiti’ cabinets

    October 23, 2025
    Bitcoin

    Morgan Stanley Files Bitcoin and Solana ETF Applications

    January 6, 2026
    What's Hot

    DoorDash stock target raised by Benchmark on growth outlook By Investing.com

    October 17, 2024

    China Opens Foreign Real Estate Investors in New Push

    September 18, 2025

    Markets head higher again as earnings season rolls on

    August 5, 2025
    Most Popular

    Auctus Gallery Bring In The Rain Man Of Art.

    February 20, 2025

    Yorkshire-based LCF Law explains how charities can unlock potential legal support for property transactions

    March 25, 2025

    Treasuries slip, dollar firm as markets grapple with US politics

    July 15, 2024
    Editor's Picks

    UK GDP: Fastest Growth in Q1 2025

    June 30, 2025

    Developer scuttles affordable housing project at prime San Jose site

    August 12, 2024

    Companies Absorb BTC at 4x Daily Miner Supply, Per River’s Research

    August 30, 2025
    Facebook X (Twitter) Instagram Pinterest Vimeo
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions
    © 2026 Invest Insider News

    Type above and press Enter to search. Press Esc to cancel.