Tories tell Derek Mackay he can boost spending without raising taxes

Derek Mackay MSP, Cabinet Secretary for Finance, Economy and Fair Work. Picture: John Devlin

The Conservatives highlighted figures showing that the Scottish Government received the third-biggest cash increase from the Chancellor at the UK budget in November when compared with Whitehall departments. It comes as Mr Mackay decides how to respond to tax cuts unveiled by Philip Hammond.

Scottish Labour have repeated their demand for further action from the Scottish Government to use its powers to ease austerity, including an end to the two-child cap on tax credits and the associated “rape clause”, a £5 top-up to child benefit, and a freeze on rail fares.

At the weekend, the Greens and the Liberal Democrats said they would not take part in budget talks with the minority SNP Government until their conditions were met.

Green co-convener Patrick Harvie said he wanted a commitment to council tax reform before any talks with Mr Mackay could begin, while Lib Dem leader Willie Rennie pulled out of further discussions unless the possibility of a second independence referendum was taken off the table.

Figures from the latest UK budget Red Book show the Scottish Government will receive a cash boost through additional spending and the Barnett Formula worth £1.6 billion, the third highest increase behind the UK transport and health departments.

The Scottish Tories said the funds should be passed on to public services without asking taxpayers to pay any more.

Shadow finance secretary Murdo Fraser said: “These figures prove that the Scottish Government will benefit enormously from the UK budget.

“While the SNP can’t bring themselves to welcome it, this is a huge investment in Scotland.

“This shows that the SNP Government has enough cash to support our ailing public services without asking taxpayers more.

“The SNP has become a ‘pay more, get less’ government. With the Budget this week, that must end.”

Labour’s finance spokesman, James Kelly, urged the SNP to commit more money towards mitigating the impact of the UK government’s welfare reforms.

He said: “It would simply be morally wrong to leave children languishing in poverty whilst Scotland’s significant powers over welfare gather dust on the SNP Government’s shelf.

“Experts, faith leaders and charities have backed Labour’s call to use Scotland’s powers to lift people out of poverty, and it is time for Derek Mackay to listen. The time for tinkering at the edges is over.”