Finance secretary Shona Robison criticises Chancellor’s budget decisions
Scotland’s Finance Secretary, Shona Robison, has warned that the Scottish Government will need to “turbocharge” its drive for efficiency savings following UK welfare reductions she described as “austerity on stilts.”
The SNP minister’s comments come in the wake of Chancellor Rachel Reeves’ spring statement, which will have significant repercussions for Scotland’s devolved budget. While there will be a minor increase in funding for the upcoming financial year, the block grant is set to shrink in the following years—dropping by £455 million by 2029/30 compared to current forecasts.
Much of social security spending is now devolved to Holyrood, and discussions are ongoing between the two governments on how the Westminster-imposed welfare changes will impact Scotland. The Chancellor is targeting £4.8 billion in savings by 2029/30 through reforms to incapacity benefits, while simultaneously increasing defence spending by £2.2 billion from April. The UK Government argues this will create jobs and economic growth in Scotland.
‘A very, very challenging situation’
Speaking to journalists at Holyrood following the spring statement, Ms Robison reaffirmed the Scottish Government’s commitment to protecting vulnerable citizens, stating:
“We will do absolutely everything we can to avoid pushing vulnerable people into poverty.”
However, she acknowledged the scale of the challenge, describing the funding constraints as a “very, very challenging situation.” She confirmed that the government will outline its strategy in a forthcoming spending review.
SNP Public Finance Minister Ivan McKee is already conducting a review into public sector reform, aiming to cut back-office costs. Ms Robison suggested these efforts will need to accelerate in response to the latest budgetary pressures.
“I think we’re going to have to turbocharge some of that work over the next few years in order to give ourselves choices around how we can ensure that we can support our most vulnerable,” she said.
She insisted that reducing administrative costs would deliver “significant value” and allow more funds to be directed toward front-line services.
‘Austerity on stilts’
Ms Robison did not hold back in her criticism of the UK Government, branding its budget approach as “austerity on stilts.” She also took aim at Scottish Labour leader Anas Sarwar, accusing him of “hiding again” and failing to challenge Westminster’s financial decisions.
Earlier, she lambasted the Chancellor for what she described as “repeated attacks on some of the most vulnerable members of society,” warning that the welfare cuts risk creating a “vicious cycle of reduced funding and increased demand” for public services.
She said:
“The UK Government appears to be trying to balance its books on the backs of disabled people.”
Trade unions and economic experts weigh in
Roz Foyer, general secretary of the Scottish Trades Union Congress, echoed Robison’s concerns, condemning the Chancellor’s “deeply damaging” cuts to disability benefits.
“No-one denies that this statement was made in the midst of testing domestic and international circumstances,” she said. “However, the Chancellor had choices. She could have rewritten her self-imposed and self-defeating fiscal rules. She could have increased taxes on corporations or the wealthy.”
Economic analysts also raised concerns about the long-term financial impact on Scotland. Joao Sousa, deputy director of the Fraser of Allander Institute at the University of Strathclyde, noted that while the Scottish Government would receive an additional £28 million in the immediate term, this was overshadowed by looming budget cuts.
“Put together, and in the absence of any other changes, the Scottish budget would be around £900 million worse off on the current side in 2029-30 than previously projected,” he warned.
However, he acknowledged that Scotland’s capital budget—excluding defence spending—would increase by nearly £250 million by 2029-30 under the new plans.
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UK Government defends budget decisions
Scottish Secretary Ian Murray defended the UK Government’s budget, arguing that the £2.2 billion defence spending increase would strengthen the economy.
“This is a huge boost for Scotland’s world-leading defence sector, which delivers Scottish economic growth and more highly-skilled jobs,” he said.
He also emphasised that the Scottish Government had already received a record budget settlement.
“The spring statement also delivered an extra £28 million for the Scottish Government. That is on top of their £4.9 billion extra from the budget, creating a record £47.7 billion settlement for 25/26, announced at the autumn budget.”
He dismissed claims of austerity, instead calling on the Scottish Government to use its funding “wisely” to address challenges in public services.
Political and economic crossroads
As the dust settles on the Chancellor’s budget, the Scottish Government faces difficult financial choices in the coming years. The debate over welfare cuts, efficiency savings, and funding priorities is likely to intensify as ministers in Edinburgh seek to shield vulnerable communities while managing a shrinking budget.
With tensions high between Holyrood and Westminster, and differing economic visions for Scotland’s future, the next few years could see significant shifts in fiscal policy and public spending priorities.
