September 19, 2024
Cuts statement sets tone for tough financial choices to come #NewsUnitedStates

Cuts statement sets tone for tough financial choices to come #NewsUnitedStates

CashNews.co

There’s a longer term debate now brewing about public spending choices in general – the first minister has ruled out cutting universal benefits such as free prescriptions and concessionary travel. But some are now questioning whether those – and increased spending on social security – can be afforded.

There’s no money in the coffers for Mr Swinney to make bold investment promises – instead the focus is likely to be on growing the economy to generate cash for public spending.

That is a strategy also being deployed at Westminster, with Sir Keir Starmer warning “things will get worse before they get better”.

The UK Labour government is banking on economic growth to transform the country’s financial fortunes in the years ahead.

Both governments agree on that – and have been keen to establish better lines of communication than existed under the Tories’ rule.

Certainly by all accounts the relationship between the Scottish and UK governments has improved.

But financial pressures are proving to be the political pinch point.

Scottish ministers have repeatedly pointed the finger at Labour, blaming UK ministers for failing to confirm whether there’ll be extra funding for pay deals, and claiming it is imposing further austerity after promising not to during the general election campaign.

Labour – along with the Conservatives – say this is a mess of the Scottish Government’s own making.

With budgets due to be set at both Westminster and Holyrood on 30 October and 4 December respectively, expect the row over public spending – and the political choices that come with it – to continue in the months to come.

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