John Swinney: Scotland doesn’t have same budget flexibility as UK government

Deputy first minister John Swinney said Scotland does not have the same “flexibility” within its budget to react to inflationary pressures as the UK government does.

On Monday, Mr Swinney called for the UK Government to provide additional funding to increase public sector pay and said a failure to do this could result in cuts to services.

Speaking to BBC Scotland’s The Nine on Monday evening, Mr Swinney said the situation facing the public purse in Scotland had “changed dramatically” over the last few months.

“When the funding settlements for Scotland were agreed at the end of last year, the events of the last few months have changed dramatically the economic outlook, particularly in relation to inflationary pressures, both on government and individuals within our society through the cost of living,” he said.

Mr Swinney argued that as a result of this, the Scottish Government were having to wrestle with “much higher” public pay demands.

The deputy first minister would not reveal how much he had asked the UK government to provide because the Scottish Government were still engaged in pay negotiations.

However, opponents accused the Scottish Government of financial mismanagement and said the money should come from their own budget.

Scottish Conservative MSP Jamie Halcro Johnston said: “This is about SNP priorities and mis-priorities. Where they are putting the money and how they are spending it and now, all they are trying to do is create another grievance, another reason to blame Westminster when this all falls down to mismanagement by the SNP.”

Daniel Johnson, Scottish Labour’s finance spokesperson, accused both the Scottish and UK governments of blaming each other for their collective failure.

He said: “It is the SNP who have for almost 15 years failed to value public sector workers or prioritise fair pay deals for them, all while the Tories have presided over a massive transfer of wealth to top earners.

“To fix this we need an economy that is growing and relentlessly focused on giving everyone a chance to succeed. Neither the SNP or the Tories are willing or able to use the powers at Holyrood or Westminster to do that.”

Mr Swinney responded, saying: “We have a fixed budget Scotland, it is fixed largely by the block grant that comes from the United Kingdom Government, and we’ve made our choices within that budget during the course of the last few months.”

He also ruled out increasing income tax, saying it was “against the law” as the Scottish Government are “obliged by law” to set the rate at the beginning of the financial year and it cannot be changed.

The Treasury ruled out sending any extra funding to Holyrood, adding: ““We have provided the Scottish Government with a record £41 billion per year for the next three years, the highest spending review settlement since devolution.

“As a result, the Scottish Government is receiving around £126 per person for every £100 per person of equivalent UK Government spending in England over the next three years.”

Mr Swinney was asked about allegations surrounding former North Lanarkshire council leader Jordan Linden after he was accused of sexual misconduct.

He said: “Any complaint that comes forward about anyone’s behaviour in connection with the SNP must be fully and properly investigated.

“I don’t have access to all of the information in relation to this particular case.

“But what I think is important is whenever any issues are raised about an individual’s conduct it should be fully properly and transparently investigated and any necessary action should be taken at the time.”