The recent Spending Review by Rachel Reeves has sparked controversy in Scotland, with claims from the SNP Government that the nation has been “short-changed” by over a billion pounds. The Chancellor’s announcement in the Commons highlighted a pledge of £52 billion for Scotland by the end of the spending review period in 2028/29. This represents a 4% increase from the previously stated £50 billion block grant for 2025/2026. However, the Scottish Government argues that this increase does not align with their financial needs.
Scotland’s Financial Concerns
Scotland’s Finance Secretary, Shona Robison, voiced her concerns about the allocation, stating that the settlement is “disappointing.” She emphasized that the real terms growth of only 0.8% a year for Scotland’s overall block grant is lower than the average increase for UK departments. According to Robison, if Scotland’s resource funding had grown in line with the UK’s overall spending, the nation would have an additional £1.1 billion over the next three years to address its priorities.
Investment Highlights and Concerns
The Spending Review did include significant investments such as £750 million for a supercomputer in Edinburgh and £250 million for the Faslane nuclear base. However, Robison and other critics have pointed out that these figures conceal cuts to day-to-day spending. The Poverty Alliance has also raised concerns about these cuts, which they argue overshadow the investment figures presented.
Unmet Financial Needs
Robison further criticized the UK Government’s approach, particularly the lack of full funding for the employer National Insurance increase, which she claims deprives Scotland of hundreds of millions of pounds. Additionally, proposed cuts in support for disabled people are expected to push 250,000 individuals into poverty, including 50,000 children.
Carbon Capture Project Uncertainty
The Finance Secretary also questioned the lack of specific numbers attached to the support for the Acorn carbon capture project in Scotland’s north east. While Labour has announced a £9.4 billion allocation to UK carbon capture and storage over the spending period, detailed funding for the Acorn project remains unclear.
Calls for Change
Robison expressed disappointment over the limited engagement with the UK Government regarding Scotland’s priorities for the Spending Review. She criticized the continuation of local growth funding being directed from Whitehall, which she argues bypasses devolved governments and fails to replace the European Structural Funds.
Next Steps
The Scottish Government plans to thoroughly review the Spending Review’s details and will announce its formal response on 25 June as part of the Medium Term Financial Strategy.
Note: This article is inspired by content from https://www.thenational.scot/news/25231996.scottish-government-short-changed-1bn-rachel-reeves/?ref=yahoo. It has been rephrased for originality. Images are credited to the original source.