Scottish Budget set to pass following Labour announcement

The Scottish Budget is set to pass following the Labour announcement, after Anas Sarwar provided an update on his party’s position

The Scottish Budget is set to pass after Scottish Labour confirmed it will abstain from the vote.

Scottish Labour leader Anas Sarwar says his party will abstain because he knows the Budget “will pass anyway” as the SNP has the support of at least one other opposition party.

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The Labour leader has also turned the tables on the SNP by stressing his party will actively back the Budget if the Scottish Government accelerates its plans to mitigate the controversial two-child benefit cap and begins payments from April.

But Mr Sarwar has been accused by the Conservatives of committing a “spineless act” as the Tories warned Labour was complicit in a “cosy left-wing consensus at Holyrood”.

As the SNP is now a minority government in Holyrood, it needs the backing of at least one other opposition party to pass the 2025-26 Budget.

First Minister John SwinneyFirst Minister John Swinney
First Minister John Swinney

It was thought the LibDems could allow the Budget to pass after SNP Finance Secretary Shona Robison outlined several policies the party had called for.

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However if all 22 Labour MSPs abstain as Mr Sarwar has now indicated, the Scottish Government will have the numbers they need for the Budget to pass.

Speaking to BBC Good Morning Scotland, Mr Sarwar said: “From our perspective we would have voted for this Budget if it offered a new direction.

“But as it currently stands, we will not vote this Budget down.

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“We will abstain because it will pass anyway, it has the votes from at least one other political party so we will not vote against it, we will abstain.”

Mr Sarwar was caught flatfooted by the Scottish Government’s announcement to mitigate the two-child benefit cap from 2026 after his Labour colleagues at Westminster refused to buckle under pressure to end the policy.

But in an attempt to pile pressure back on Mr Swinney’s government, Mr Sarwar has confirmed Labour would vote in favour of the Budget, if that policy is accelerated.

He said: "If they actually put the ending of the two-child benefit cap into this budget and lift it on the first of April, we will vote for the budget.”

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Scottish Labour leader Anas SarwarScottish Labour leader Anas Sarwar
Scottish Labour leader Anas Sarwar | Andrew Milligan/PA Wire

He added: “We were really pleased with a record settlement for the Scottish Government with £5 billion of additional money to spend.

“We wanted that to be game-changing money not just in where the money was spent, but how it was spent, and setting out a new direction.

“But that won’t come from this Budget.

“The only chance for change is the election in 2026 and the election of a Labour government.”

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On Monday, Mr Sarwar set out his vision for “a new direction for Scotland” as he called for a change of government at the 2026 Holyrood election.

SNP Finance Secretary Shona Robison has ridiculed Mr Sarwar for his changing position.

Finance Secretary Shona Robison (Photo by Jeff J Mitchell/Getty Images)Finance Secretary Shona Robison (Photo by Jeff J Mitchell/Getty Images)
Finance Secretary Shona Robison (Photo by Jeff J Mitchell/Getty Images)

She said: “Only a few months ago, Anas Sarwar’s Scottish Labour MPs were queuing up to keep the two-child cap in place – yet now he agrees it should be mitigated in Scotland as soon as possible. Mr Sarwar has said that Scotland needs change – but he seems to have reflected over the holidays and decided that it is he who needs to change.

“However, people in Scotland will never forgive the Labour party if it does not vote for the reintroduction of a winter fuel payment and the ending of the two-child cap.

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“Labour have gone from calling for a new direction to seemingly having no direction.”

A government source said Labour’s announcement was a “welcome development”, but said the First Minister and finance secretary still want to see Labour supporting their budget.

They said: “This is a budget that meets the needs of public opinion and is aligned with the public’s priorities, so we are encouraging Labour to vote for the budget rather than just abstaining.

“If you want the measures in place, the best way to do it is to vote for the budget.”

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Scottish Conservative shadow finance secretary, Craig Hoy, said: “This is a spineless act from Anas Sarwar who has clearly caved to John Swinney.

“Labour’s leader is all talk and no action when it comes to standing up to the failing SNP.”

He added: “He and his party are part of the cosy left-wing consensus at Holyrood which has repeatedly raised taxes and left our public services and businesses struggling.

“Scottish Labour and its weak leadership are so disconnected from the Scottish people and communities that they are unwilling to vote against an SNP budget that once again fails to do anything to address their failures over the last 18 years.

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“The Scottish Conservatives are the only party who are committed to delivering tax cuts for Scots workers and businesses and giving people more power over their own lives. Meanwhile Labour is happy to be complicit in continuing with the same old approach that has failed Scotland for decades.”

Mr Sarwar’s decision to allow the Budget to pass takes the pressure off the LibDems, who are still claiming victory for their priorities being included in the draft spending plans.

Scottish LibDems leader, Alex Cole-Hamilton, said: “Labour’s decision confirms once and for all that there will be no early election.

“This was always very unlikely and that’s why all along Scottish Liberal Democrats have sought to shape the budget to unpick some of the damage caused by years of SNP neglect.”

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He added: “You can already see significant Liberal Democrat demands baked into the pages of the budget’s first draft.

“There is the reinstatement of the winter fuel allowance for pensioners, spending on social care, affordable homes, family carers, additional support needs, GPs, dentists, long covid, the Belford Hospital in Fort William and Edinburgh’s Eye Pavilion.

“There is no deal at present, our support is not guaranteed, but we continue to negotiate with the government and expect more talks in the coming days.”

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