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12 Jan 2026

Labour ‘not in strong negotiating position’ over Budget, says Sarwar

Labour ‘not in strong negotiating position’ over Budget, says Sarwar

Scottish Labour are “not in a strong negotiating position” on the Budget, the party’s leader has claimed after he announced the party will not block the Government’s plans.

Anas Sarwar said, last week, his MSPs would not stand in the way of the Government’s tax and spending plans – due to be announced on Tuesday.

Scottish Labour members are instead expected to abstain on the Budget, effectively allowing it to pass, with Mr Sarwar focused on May’s election, raising the spectre of a potential emergency budget if his party were to take power.

Recent polls suggest Labour could slip to third behind Reform at May’s election, though the party has pointed to similar commentary ahead of last year’s Hamilton, Larkhall and Stonehouse by-election, which was won by Labour’s Davy Russell.

Speaking to journalists during a visit to a credit union in Coatbridge, North Lanarkshire, the Scottish Labour leader said: “I’m just living in the real world.

“We are not in a strong negotiating position.

“The Greens and the SNP are going to do a deal on the Budget, the Budget is going to pass and there’s a possibility the Lib Dems could do a deal, too.

“So, me trying to pretend that the parliamentary arithmetic currently doesn’t favour the SNP and instead favours the Labour Party, does not live in the real world.

“I want to change the parliamentary arithmetic, I want to change the outcomes and I want to change the government, because, ultimately, that’s how we change outcomes for people and that’s what I’m focused on.”

Despite already saying his party won’t be opposing the Budget, Mr Sarwar said they will continue to engage with the Government, which is “in our interest”, but he added: “It’s not going to give us anywhere near the kind of new direction we need in our country.

“It’s not going to have a new plan to reform our NHS and make it fit for the future, it’s not going to commit to renegotiate the GP contract so we can end the 8am rush for a GP, it’s not going to demonstrate the realignment of investment we need to support our apprenticeships, our colleges, as well as our universities.

“It’s not going to deliver reform of our justice system so police officers are out of courtrooms not giving evidence, or stuck in A&E because of a lack of capacity in the NHS and instead on the front line supporting communities.

“It’s not going to end the chronic waste of this SNP Government and make sure we’re respecting public money – that’s not what’s going to come of this Budget.

“Only a new government can deliver that and that’s what we’re focused on.”

The party will, however, “keep every option on the table”, including “re-prioritisation” of the current Government’s plans, all the way up to a full emergency budget, if Labour win the election.

Asked if he was too focused on winning the election rather than securing improvements to the Budget, Mr Sarwar said it would be “up to the good people of Scotland to decide” who wins, adding: “I have every confidence this is an election we can win and this is an election we will win.

“We have already shown in the first week since the Parliament has returned that we are the hungriest, we are the most energetic, we have the most ideas and we’re the ones that are most committed to go out there and throw absolutely everything at this election campaign, because this is an opportunity Scotland can’t afford to miss.”

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