Sarwar: SNP’s ‘chaos’ the real reason for spending cuts

“Chaos” in the SNP’s management of public finances is to blame for the Scottish Government’s spending cuts rather than decisions from Westminster, Anas Sarwar has said.

The Scottish Labour Party branded claims to the contrary from an SNP minister as a “blatant lie”, publishing a document on the pressures faced by the Scottish Government’s finances.

Mr Sarwar conceded there was “no magic wand” to fix issues in the public sector like lengthy NHS waiting lists but said his party would still seek to make improvements if they won power in Edinburgh.

Labour is drawing a distinction between the £22 billion in-year budget black hole identified by Chancellor Rachel Reeves and the £20 billion figure highlighted by the Institute for Fiscal Studies before the election, saying the latter figure relates to wider pressures on UK Government finances.

The party said that with the exception of the winter fuel allowance, Ms Reeves’ decisions have not impacted the Scottish Government’s budget.

Scottish Labour’s briefing document said the SNP’s project overruns, mismanagement and failed industrial interventions have cost £5 billion – mentioning ballooning costs for the Ferguson Marine ferries and the Barlinnie prison replacement.

They also said the Scottish Government have been aware for years of a potential £1 billion gap in the 2024-25 budget, but there has been a lack of “prudent and realistic” spending plans.

Speaking to journalists on Tuesday, Mr Sarwar and Scottish Labour’s finance spokesman, Michael Marra, said their party would set out more of their own plans on how to improve the fiscal position in the run-up to the 2026 Holyrood election.

Mr Sarwar said: “I think people across the country recognise that the Labour Party doesn’t have a magic wand, it can’t fix every problem straight away.

“But it can start the process of changing our country for the better.”

He said it is “absurd” to suggest the recent rounds of spending cuts announced by the Scottish Government are a result of “a Labour Party in government for seven weeks and not an SNP Government in power for 17 years”.

Mr Sarwar added: “The Cabinet ministers know it’s chaos, they privately say it.

“MSPs know it’s chaos, they privately say it. MPs know it’s chaos.

“They know it’s not working. There’s no plan, no strategy and it’s just trying to live day by day, week by week.”

Mr Sarwar accused the SNP of spreading “misinformation” around the public finances.

He said: “(Public Finance Minister) Ivan McKee was doing it again this morning, where he was saying that decisions that decisions that have been made across departmental spending cuts was a direct consequence of the statement made by Rachel Reeves.

“A blatant lie. Either that’s deliberate misinformation or it’s a failure to understand how public finances work.”

Mr Marra said Finance Secretary Shona Robison’s spending decisions are being taken in a “panicked mess” as a result of poor planning.

Ms Robison has said more cuts will be required following the Treasury’s review and in light of public sector pay deals.

On Sunday, it emerged the Scottish Government had written to councils asking them to use £5 million intended for the nature restoration fund to cover local authority pay awards.

A scheme to provide free iPads to “digitally excluded” people has also been paused.

Ms Robison said earlier: “This so-called dossier from Labour’s leader in Scotland is nothing more than a smokescreen to try and distract from the billions of pounds in cuts that his boss in London is unveiling this week.

“We have delivered a more progressive income tax system in Scotland which ensures those on lowest incomes pay a bit less – and unlocks billions more in investment for public services.

“Of course, the Scottish Government operates with a largely fixed budget from Westminster – and if Anas Sarwar really wanted to see more investment in public services in Scotland, he would join with us in standing up to Labour’s austerity agenda at Westminster.”