Monday, December 23, 2024

Scotland to receive extra £3.4bn in UK Budget, says chancellor

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She said any money gained by the Scottish government was expected to be offset by about £500m in increased public sector costs due to employers being asked to pay National Insurance contributions on workers’ wages.

Robison also said the UK government should have U-turned on its winter fuel payment cut and scrapped the two-child benefit cap.

She added: “One Budget doesn’t change 14 years of austerity. That is going to take time and sustained investment in public services.”

The SNP government has already cut £500m from its budget this year, with ministers warning that without extra cash they would need to make difficult choices when they set out their tax and spending plans for next year in December.

Reeves said the funding announced in the Budget “must be used effectively in Scotland to deliver the public services that the people of Scotland deserve”.

While some of the measures included in the Chancellor’s Budget apply directly to Scotland, others do not.

However, spending decisions in areas that are devolved to the Scottish government, and that will only apply south of the border, have a knock-on effect for the Holyrood administration’s finances through what is known as the Barnett Formula.

The Scottish government gets a fixed share of changes to budgets of Westminster departments such as transport, justice, health and education – areas of government devolved to Holyrood – as part of its funding arrangement with the UK Treasury.

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