Scottish budget was ‘bleak’ and public service reform required, says Swinney

The budget he laid out to Parliament on Thursday was “bleak” and the delivery of public services will likely require reform, Scotland’s Deputy First Minster has said.

John Swinney, who is also the country’s acting Finance Secretary, laid out the Government’s tax and spending plans this week, with a focus on the NHS and social security.

He announced that people earning more than £43,662 would pay more in tax as the higher rate was lifted from 41p to 42p, while the top-rate threshold was brought down to £125,140 as the rate rose from 46p to 47p.

Council leaders condemned the budget, saying it could lead to the end of some public services.

I think anyone observing my budget statement on Thursday would recognise that I gave a pretty candid, open explanation of the scale of difficulty that we face

Local authority body Cosla said the £550 million increase in council funding actually amounted to just £71 million in real terms.

Speaking to the BBC’s Sunday Show, Mr Swinney said: “I set out, frankly, a pretty bleak picture to Parliament on Thursday.

“It was an explanation of the very real difficulties we find ourselves in as a consequence of some of the global issues which we often feel are a long way away from us.

“But on this occasion the war in Ukraine has brought energy and price inflation right to the heart of our economy and public services – compounded by some of the significant strategic mistakes that have been made in the United Kingdom around Brexit and the mini-budget in early September.”

He added: “I think anyone observing my budget statement on Thursday would recognise that I gave a pretty candid, open explanation of the scale of difficulty that we face.”

Speaking to the same programme, Cosla resources spokeswoman Katie Hagmann said there was “disappointment across the board” at the settlement for local government, adding that councils would be “desperately trying to protect” frontline services.

Mr Swinney also said that, as a result of financial pressure, the country should be open to reforming public services in a bid to save money.

“The financial pressures on all of us because of inflation are so great we have to change the way we deliver public services,” he said.

Referring to reports that the budget was a left-wing one, Mr Swinney said it was “right for the times”.

“We face acute challenges, it needed bold action, and that’s what I did on Thursday,” he added.

Scottish Labour finance spokesman Daniel Johnson said Mr Swinney was “out of touch with Scotland”.

“Even SNP councillors are calling out their own party for the failure to support councils after 15 years of savage cuts,” he added.

“While claiming to reject austerity, John Swinney is foisting it upon local government – leaving council services decimated across the country.”