Swinney warns against ‘damaging cuts’ ahead of Chancellor’s spring statement
First Minister John Swinney has said he expects the Chancellor’s spring statement this week to include “damaging cuts” to Scotland’s economy.
Speaking during a visit to Kirkintilloch, East Dunbartonshire, Mr Swinney also warned that economic growth across the UK would “plummet” due to Labour’s hike to employers’ national insurance, which he described as a “body blow” to business.
The SNP leader said he feared the “mismanagement of the economy” by Rachel Reeves would result in spending cuts that would hurt Scotland.
Mr Swinney told the PA news agency he had “two principal worries” about the spring statement on Wednesday.
He said: “The first is that I think some of the most vulnerable in our society are going to be targeted by a Labour Government and I can hardly believe that a Labour Government has actually taken more damaging decisions than even the reckless Conservative government took in relation to people with vulnerability in our society.
“And the second thing is that I suspect the mismanagement of the economy by the Labour Government is going to result in spending cuts that will have a damaging effect on Scotland, and that will not help us to eradicate child poverty, that will not help us to improve our public services, particularly the National Health Service, and all of that is happening at the hands of a Labour Government.”
It comes after the UK Government announced £5 billion worth of welfare cuts last week, largely from a reduction in support for disabled people and those claiming incapacity benefits.
The Chancellor has already ruled out “tax-and-spend” policies ahead of her speech as she is expected to ask some government departments to cut their budgets, while Prime Minister Sir Keir Starmer has said he will “take some money out of government”.
Mr Swinney said the “rhetoric” from Labour suggested the party could “erode” Holyrood’s budget.
He said the rise in national insurance announced in Ms Reeves’ first budget last year was “deeply worrying”.
Mr Swinney said: “It hasn’t even been implemented yet and, believe you me, once that gets implemented the growth ambitions of the UK Government are going to plummet because it’s a body blow for business and the economy.
“The last decision the Chancellor should have taken was to take that decision – it’s not an illustration of very good decisions.”
A UK Government spokesperson said: “The budget delivered more money than ever before for Scottish public services and the Scottish Government receives over 20% more funding per person than equivalent UK Government spending.
“It is for the Scottish Government to allocate this across its own public sector and meet the priorities of people in Scotland.
“It will also receive additional Barnett funding on top of this record £47.7 billion settlement as part of support provided in relation to changes to employer national insurance.”
