The Labour government has been challenged to “abandon its devastating plans for austerity, reverse the cuts to Scotland’s budget and deliver the major investment boost needed to protect public services and get the economy growing” – as new research shows Scotland’s block grant is at its lowest level, as a proportion of UK government spending, in a decade.
The independent analysis by the House of Commons Library, shows that Scotland’s block grant has fallen as a percentage of UK government spending from 8.2% in 2015/16 to 7.6% this year – meaning Scotland is getting a lower share of the UK spending pie than at any point in the last decade.
The research also shows that, in a like-for-like comparison, the Scottish Government’s block grant has suffered a real-terms cut in every year since 2020, and is now worth £6.4billion less than it was in 2020/21 – a drop of 12.7%.Â
The like-for-like comparison, before adjustments are made to reflect the recent devolution of tax powers and welfare responsibilities, shows the declining spending power of the Scottish Government over time as a result of Westminster cuts.
Last year, the Scottish Government’s capital block grant was cut by 9.6% – a real-terms cut of around £600million, and it faces a further 3% cut of around £200million this year.
That means less money available to build affordable homes, hospitals, schools, roads and other projects.
Similarly, the Scottish Government’s resource block grant, which pays for the day-to-day running of the NHS and other frontline public services, has been cut by almost 15% in real-terms since 2020/21, despite the soaring costs of UK inflation, public pay demands, Brexit and covid backlogs. It means less money available for health, education and policing.
It comes amid a growing Cabinet rebellion over the huge scale of the austerity cuts being planned by Labour Chancellor Rachel Reeves.
With cuts and tax rises of around £40billion being considered, figures including Deputy Prime Minister Angela Rayner are reported to have written to the Prime Minister urging him to overrule the Chancellor and block the cuts.
Commenting, SNP Economy spokesperson Dave Doogan MP said:
“It’s vital that the Labour government finally listens to voters – and abandons its devastating plan to impose billions of pounds of austerity cuts to public services and Scotland’s budget.
“The Scottish Government has already had its budget slashed by Westminster.
“We cannot afford even more cuts from the Labour Party, which would take money away from our NHS, schools, police and vital infrastructure projects like affordable housing, roads and hospitals.
“Voters were promised change but instead Labour ministers have been lining their own pockets with thousands of pounds of freebies, while imposing painful austerity cuts on the rest of us.
“We were told a Labour government would end the cuts but instead they have increased them – taking the winter fuel payment from around 900,000 Scottish pensioners, pushing thousands of Scottish children into poverty by imposing welfare cuts, and starving Scotland of investment.
“Instead of imposing even deeper cuts, the Labour government must abandon its devastating plans for austerity, reverse the cuts to Scotland’s budget and deliver the major investment boost needed to protect public services and get the economy growing.
“The Labour Party can’t face both ways on this.
“If they impose austerity cuts at Westminster, they will hit public services and communities right across Scotland – and they won’t be forgiven.”