John Swinney warns of delay risk to Scottish budget due to UK Government autumn statement

Scotland’s budget is at risk of being delayed beyond the end of the year due to the UK Government announcing further delays to its own budget, the interim finance secretary has said.

John Swinney, who is also the deputy first minister, warned of the delays after Chancellor Jeremy Hunt delayed the planned Halloween fiscal statement on Monday until mid-November.

Mr Hunt’s budget is expected to depart from the economic vision of former prime minister Liz Truss after Rishi Sunak was installed in Number 10 this week, with the Chancellor already having ripped up Ms Truss’s plans. His statement will now be a full autumn statement and will impact the amount of funding available to the Scottish Government next year. Cash is already being squeezed due to inflationary pressures and expected spending cuts.

The Scottish Government’s emergency budget review, which was intended to address some of the in-year inflationary pressures and help free money for cost-of-living measures, could also be delayed further. On Tuesday, it was announced it would be delayed until after the fiscal statement on October 31, but the fresh delay may well push it back further. It is understood the majority of the work on the review is complete.

Mr Swinney, who is in charge of Scotland’s finances while finance secretary Kate Forbes is on maternity leave, said: “This is an unwelcome and unnecessary delay by the UK Government, which simply creates more economic uncertainty at a time when households, businesses and the wider economy all need as much certainty and stability as possible.

“It risks impacting on the timing of the Scottish Government’s own budget plans as we will now need to wait two-and-a-half weeks longer than previously proposed to see what the effect of UK tax and spending plans will be on devolved budgets.”

But the Deputy First Minister said the key point that should be taken into the budget was ruling out cuts to public spending. “Above all, it is essential that the Chancellor heeds warnings not to impose renewed austerity, which would only worsen the extreme pressures already being faced by people and businesses as a result of inflation, rising interest rates and other economic factors,” he said.

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