Scottish budget: John Swinney urged to drop ‘vanity’ independence spending in statement

Ministers should drop “vanity” independence spending and instead prioritise the cost-of-living crisis in tomorrow’s budget statement, the Scottish Conservatives have said.

Deputy First Minister John Swinney, who has stepped in as finance secretary while Kate Forbes is on maternity leave, will set out the 2023/24 budget tomorrow.

The Tories have urged the Government to support households and key public services amid rising costs.

The party’s finance and economy spokeswoman, Liz Smith, said the £1.2 billion additional funding for Scotland outlined in the Chancellor’s autumn budget should ease the pressure on Scots.

Money and a Scottish purse, as ministers are told to drop "vanity" independence spending and instead prioritise the cost-of-living crisis in the upcoming budget statement, the Scottish Conservatives have said. Picture: Jane Barlow/PA Wire

It comes as the Fraser of Allander Institute said the funding received in Barnett consequentials would “more or less offset the impacts of inflation”.

Ms Smith said Mr Swinney must abandon the £20 million earmarked for a second independence referendum after the Supreme Court ruled Holyrood cannot legally call a referendum without Westminster’s consent.

The Scottish Government has said it would prioritise tackling child poverty, delivering net zero and transforming public services in tomorrow’s statement.

In their demands, the Tories have called for a fair funding deal for local government to protect vital services.

Health and education funding from the Barnett consequentials must be passed on to the NHS and schools directly, Ms Smith said, while further support is urged for businesses, such as a rates relief package.

Ms Smith said the plans were “practical, costed and effective” to tackle the “pressing needs of Scottish households, businesses and public services”.

She said: “As usual, the SNP, focused on its independence obsession, has tried to blame Westminster for areas and budgets entirely within the Scottish Government’s control.

“Thanks to Scotland’s place within the UK, John Swinney will now have significant additional funding and the scope to deliver real help if he chooses to concentrate on Scotland’s real priorities for once.

“With Scotland’s NHS on its knees and education standards in freefall, it’s essential that the Barnett consequentials stemming from the Chancellor’s budget are passed on directly to our hospitals and schools.

“Meanwhile the SNP is sitting on money that could help hard-pressed families and businesses now. It should immediately divert its vanity spending on a referendum that the courts have ruled out and abandon reckless plans for a costly, centralised National Care Service that everyone else can see is a bad idea.”

A cohort of Scottish hospitality groups have meanwhile called for business rates support in tomorrow’s budget to help outlets across the country remain viable in the face of the cost-of-living crisis.

The Scottish Beer and Pub Association, Scottish Licensed Trade Association and UKHospitality Scotland have jointly called for Mr Swinney to help hospitality businesses survive this winter.

In a joint statement, the three associations said: “The hospitality industry is vital to the economy of Scotland, to local high streets and communities, but the current economic downturn and a range of other unprecedented challenges will see many unfortunately fail without meaningful intervention on business rates.

“Not only must the Cabinet secretary commit to matching a freeze on the UBR [uniform business rates] in Scotland, but he must also match the support for the sector in England and Wales, where a 75 per cent rates relief package will be in place. The sector desperately needs this to survive, to continue to provide employment for staff and remain competitive with our neighbours.

“The industry expects that the Barnett consequentials coming from Westminster will be ringfenced to support the sectors still scrambling along the road to recovery.

"The hospitality sector faced the brunt of the pandemic, but managed to remain resilient and yet we continue to be held back, in part due to the discriminatory nature of the rating system in Scotland, which disproportionately burdens the sector more than any other. This needs to be taken into consideration by the finance secretary when deciding the level of support.

Health charities have issued a further appeal, calling for targeted emergency cost-of-living payments through the social security system as soon as possible.

The Health and Social Care Alliance Scotland, Chest Heart & Stroke Scotland, Children’s Hospices Across Scotland, Marie Curie and MS Society Scotland have spelled out the possible impacts on people with long-term and terminal conditions.

Jane-Claire Judson, chief executive of Chest Heart & Stroke Scotland, said: “This is about dignity in care. Nobody should be forced to cut back on essentials because they are unwell.

“People are telling us they are risking their health to cut back on essentials like heating and eating because they are even more scared of rising costs. They are simply not getting the financial help they need to ensure they can keep themselves well this winter.”

A Scottish Government spokesperson said: “The Scottish Government is responding to a cost-of-living crisis involving an increased demand on public services, supporting Ukrainian refugees and attempting to secure fair pay settlements for public sector workers.

“The UK Government has provided no additional funding for this year’s pay uplifts to respond to inflation.

“The Deputy First Minister will outline the 2023/24 Scottish Budget proposals, including on taxation, later this week.”