Europe, UK (Commonwealth Union) – Scotland’s finance secretary Shona Robison has detailed the immediate steps being taken to balance the 2024-25 Scottish Budget amid “tremendous and increasing strain on public funds.”
The Finance Secretary indicated that tough decisions would have to be made.
The overall financial savings, amounting to as much as £500 million, encompass the enacting crisis spending restrictions throughout the public sector, focusing on hiring, extra work hours, travel, and advertising efforts. Other measures include terminating the ScotRail Peak Fares trial Adopting the UK Government’s approach to means-test Winter Fuel Payments Achieving extra cost reductions across various departments, such as in eco-friendly and active transportation and in healthcare and social services.
The Finance Secretary also stated that she is presently devising a strategy to utilize up to £460 million in additional ScotWind income to alleviate short-term financial burdens in 2024-25.
Ms. Robison stated that the government has consistently emphasized the scale of the financial challenges ahead. Prolonged austerity from Westminster, the economic fallout from Brexit, the global pandemic, the war in Ukraine, and the ongoing cost of living crisis have all significantly intensified the pressure on public finances. Over the past three years alone, cumulative CPI inflation has risen by 18.9%, reducing the purchasing power for both households and governments.
She further indicated that despite these obstacles, the Scottish Government has taken action to support individuals and essential services, particularly in areas like social security, healthcare, and public services. She pointed out however, they have done this without corresponding support from the UK Government, which has consistently neglected to reassess the sufficiency of funding allocations.
“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.”
In a letter to the Finance and Public Administration Committee (FPAC), the Finance Secretary has detailed the cost-saving measures. Ms. Robison has additionally suggested that the upcoming Scottish Budget be scheduled for December 4th, contingent upon FPAC and the Scottish Fiscal Commission’s approval.
