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Saturday, June 14, 2025

Labour Urged to Ditch Austerity Plans Ahead of Spending Review

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The Chancellor is facing mounting pressure to abandon plans for sweeping cuts to public services, as concerns grow over the impact on the most vulnerable in society.

The SNP has called on Labour to scrap what it describes as “devastating” cuts to support for disabled people, as well as proposed reductions to vital services such as affordable housing and policing.

With the Labour government’s first spending review set to be unveiled this Wednesday, the mood in Westminster is becoming increasingly tense.

In a telling interview on BBC’s Sunday with Laura Kuenssberg, senior Labour Cabinet Minister Peter Kyle MP declined to give assurances that funding for affordable housing and police recruitment would not face real-terms cuts.

When asked whether Angela Rayner’s department would be shielded from such reductions, and whether police budgets would remain intact, Mr Kyle would only say that “the whole details of the spending review will come out on Wednesday”.

His comments have done little to quell unease, with reports of a growing rebellion among Cabinet members and backbench MPs.

Central to the controversy are the Chancellor’s proposals to cut disability benefits and delay key initiatives to tackle child poverty.

The decision to maintain the two-child benefit cap, which campaigners say is worsening child poverty, has also fuelled anger.

SNP Economy spokesperson Dave Doogan MP has written to the Chancellor, urging a complete reversal of Labour’s austerity agenda.

He said the government must “deliver the investment needed to end child poverty, boost public services and grow the economy, instead of swinging the Westminster austerity axe again”.

Mr Doogan also pressed for long overdue funding for Scottish energy projects, including immediate and full support for the Acorn carbon capture project.

The Acorn project, which has suffered years of delays at Westminster, is seen as critical to Scotland’s climate ambitions and economic future.

As the country waits for Wednesday’s announcements, campaigners and opposition parties alike are warning that another round of austerity could have deep and lasting consequences for communities across Scotland and beyond.

In his letter, SNP Economy spokesperson Dave Doogan MP writes:

“Dear Chancellor,

“There is growing concern that the Labour government is planning to use the UK spending review this Wednesday to impose a new wave of austerity cuts to families and public services, including deep cuts to disability benefits and key services such as house building and police officers, which would hit the most vulnerable and squeeze Scotland’s budget.

“After years of Westminster cuts, Brexit damage and a UK cost of living crisis, families in Scotland want the Labour government to urgently boost household incomes, tackle the cost of living and protect public services – not swing the austerity axe and impose even more cuts.

“The priority for the spending review must be to immediately and fully reverse the Labour Party’s austerity cuts to disabled people and pensioners – and deliver the investment needed to end child poverty, boost public services and grow the economy.

“For households, that means taking urgent action to reduce soaring energy bills, scrapping the cuts to disability benefits and the winter fuel payment, and matching the SNP government’s bold action on child poverty by abolishing the two child cap and bedroom tax – and introducing a UK-wide version of the Scottish Child Payment.

“For public services, the Labour government must abandon its plans to impose deep cuts to key services, including cuts to affordable house building and the recruitment of police officers, which would squeeze the Scottish Government’s budget and damage services across the UK.

“All of this must be underpinned by strong economic growth, which is why it is vital that the UK government delivers the long-overdue investment for Scotland’s energy projects, including fully and immediately funding the Acorn Scottish carbon capture project, which has faced years of Westminster delays.

“It is also why the Labour government must ditch its damaging obsession with Brexit, and rejoin the EU, single market and customs union, which would boost trade, economic growth and public finances by billions of pounds every year.

“Instead of choosing more austerity cuts – the Labour government should be choosing to boost economic growth and make fairer choices to help families and properly fund public services.

“At the UK spending review on Wednesday, I urge you to scrap the Labour Party’s devastating cuts to disabled people and abandon plans to impose more austerity cuts to public services, including affordable housing and policing, which would hit the most vulnerable and squeeze Scotland’s budget.

“Yours for Scotland,

“Dave Doogan MP
SNP Economy spokesperson “

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