Scottish Government announces £500m in cuts amid £800m budget shortfall
Scotland’s Finance Secretary Shona Robison has unveiled plans for up to £500 million in spending cuts to balance the Scottish government’s budget amid “enormous and growing” financial pressure.
Ms Robison told parliament that this fiscal year Scotland is projected to face an additional £800m in costs, driven by factors including public sector pay rises, “prolonged” Westminster austerity, inflation, the pandemic, and the war in Ukraine.
In addition to direct cuts affecting areas such as mental health services, the government will reallocate up to £460m raised from offshore wind projects, originally intended to address the climate crisis. Overall, a total of £933m in measures will be implemented to ensure the budget remains balanced.
Ms Robison emphasised the need for difficult decisions in light of the severe financial challenges, stating: “We cannot ignore the severe financial challenges 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 we will do again this year. But this will mean we must unfortunately take difficult decisions along the way.”
The opposition has challenged the government’s narrative, highlighting a report by the Scottish Fiscal Commission that attributes much of the financial pressure to the Scottish government’s own policy choices.