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Finance Secretary Shona Robison has outlined the urgent action being taken to balance the 2024-25 Scottish Budget in the face of “enormous and growing pressure on the public finances”.  

Highlighting the continuing effects of Brexit, the COVID-19 pandemic, the war in Ukraine and the cost of living crisis, alongside UK Government spending decisions, Ms Robison said difficult decisions were required.

The total savings, worth up to £500 million, include:

• Implementing emergency spending controls across the public sector, particularly targeting recruitment, overtime, travel and marketing
• Ending the ScotRail Peak Fares pilot
• Mirroring the UK Government’s policy to means test Winter Fuel Payment
• Making additional savings across portfolios, including in sustainable and active travel and in health and social care

The Finance Secretary said she was also currently planning to use up to £460 million of additional ScotWind revenue to address in-year pressures in 2024-25.

Ms Robison said:

“This Government has consistently warned of the significance of the financial challenge ahead. 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. In the last three years alone cumulative CPI inflation has seen prices increase by 18.9%, diminishing how far money will go for households and governments alike.

“In the face of these challenges, the Scottish Government has stepped in to support people and services where it has been needed most: on social security, health and public services. But we have done so without equivalent action from the UK Government, which has repeatedly failed to properly review the adequacy of funding settlements.

“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.”

Background

The Finance Secretary has outlined the savings in a letter to the Finance and Public Administration Committee (FPAC).

Ms Robison also proposed that the next Scottish Budget takes place on the 4th December, subject to the agreement of FPAC and the Scottish Fiscal Commission.  

Fiscal pre-budget update: Cabinet Secretary for Finance - 3 September 2024 - gov.scot (www.gov.scot)

Scottish Budget - gov.scot (www.gov.scot)

UK Government decision ends universal fuel payments - gov.scot (www.gov.scot)

ScotRail Peak fare removal pilot report published | Transport Scotland