Ahead of the UK Government’s upcoming Budget announcement, Scotland’s Deputy First Minister John Swinney has urged Chancellor Rachel Reeves to “immediately and significantly” boost Scotland’s funding to support public services, infrastructure projects, and economic growth.
A Critical Moment for Scottish Funding
The Chancellor is set to present the first Labour Government Budget in over a decade on Wednesday. In anticipation of this, Swinney has emphasized the need for greater investment in Scotland, particularly after months of financial strain on the Scottish Government. The Office for Budget Responsibility (OBR) has recently highlighted the potential of public investment to drive lasting improvements in the economy, a call Swinney believes must be acted upon in the upcoming Budget.
“We welcome that there are indications the Chancellor will have more flexibility in borrowing,” said Swinney. “But with this flexibility, there must be a significant increase in Scotland’s resource and capital funding to ensure we can invest in our public services and in infrastructure that drives economic growth, net zero, and tackles critical issues like child poverty.”
Labour’s Budget Plans
Chancellor Reeves is expected to make tough decisions in her Budget, including changes to welfare, taxation, and how national debt is measured to allow for more borrowing capacity. Swinney’s comments reflect growing concerns about Scotland’s financial challenges, which have included more than £500 million in in-year cuts to balance the Scottish Government’s budget.
For Swinney, the new fiscal rules set by the UK Government present an opportunity to fund the essential projects that Scotland needs, from improving public services to supporting business growth. He has called on Reeves to ensure that Scotland benefits from the flexibility the new fiscal framework offers, arguing that it is vital for sustaining the country’s economic and social objectives.
The Pressure on Scotland’s Finances
The Scottish Government has faced financial pressures due to factors such as inflation and delayed fiscal transfers, which have led to difficult budget cuts in areas such as health and education. Swinney’s appeal comes at a time when the Scottish Government is struggling to balance its budget, with Finance Secretary Shona Robison recently announcing the need for significant in-year reductions to prevent a deficit.
Swinney’s call for a more substantial financial commitment from Westminster reflects the critical need for investment in Scotland’s future, particularly as the country navigates its economic challenges, including the transition to a green economy and addressing persistent inequalities.
