According to Finance Secretary Shona Robison, the “direct savings” were required to fund the budget for the Scottish government for 2024–2025.
“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,” Ms. Robison said in a pre-budget fiscal update to the Scottish parliament on Tuesday.
According to reports, pay is a “significant driver” of in-year pressures, with prospective expenses exceeding the Scottish government’s budget by up to £0.8 billion in only one fiscal year.
A number of cost-cutting initiatives have already been proposed, including as the reinstatement of peak ScotRail charges, the elimination of seniors’ universal winter heating payments.
The changes were imposed in advance of the UK government’s October budget, which Sir Keir Starmer has called “painful.”
According to specialists at the Scottish Fiscal Commission (SFC), an independent economic forecaster, last week, “much of the pressure comes from the Scottish government’s own decisions,” even while pressure on the Scottish budget is exacerbated by UK government policies.
