The Scottish Government has been told to come clean with Scots about what major infrastructure projects will be scrapped because they can no longer be afforded.
John Swinney during First Minister’s Questions in the Scottish Parliament(Image: Getty Images)
Scotland is facing up to a huge £1bn of spending cuts thanks to SNP “mismanagement.” The Scottish Government was handed an extra £750m by Chancellor Rachel Reeves in her November Budget – but even this isn’t enough to cover the infrastructure projects planned for the upcoming years.
SNP Ministers have been urged to come clean to Scots and tell them what projects will be scrapped, with only £7.1bn available when £8.1bn is needed. There is a raft of promises which have yet to be completed, like the dualling of the A9 and A96 as well as the construction of a number of treatment centres.
The government is facing a major multi-billion pound black hole in capital funding by the end of the decade, with Ms Reeves improving day-to-day spending by £750m. Think tank Fraser of Allander (FAI) warned about the financial crisis to come.
Dr Joao Sousa, the deputy director of the FAI, said: “The Scottish Government’s job has been made easier on the resource side this year, mostly due to Barnett consequentials and some unexpected additional funding. But this boost masks the fact it will still be in underlying deficit, which means this approach cannot be relied on indefinitely.
“There is no such news on capital, and there something will have to give. We hope the long-awaited infrastructure investment plan will explain to the public how projects have been prioritised – and crucially, which ones will no longer be going ahead and why.”
The FAI’s report also warned that the government would have to consider sizeable tax hikes or spending cuts in future years if the UK Government cut back on its health spending which have ballooned out of control. Even income tax rises wouldn’t fill a black hole.
Mairi Spowage
FAI director Mairi Spowage said: “Because so much of the funding for the Scottish Government over the long run comes from health consequentials, the UK Government bearing down on health spending growth would leave the Scottish Government short of good options to close its funding gap.
“The already large gap currently projected by Shona Robison by 2029-30 is clearly unsustainable, and makes the challenge even more daunting. The tax rises required to plug the gap seem undeliverable, largely due to Scotland having fewer very high earners, and it’s hard to see how the Scottish Government could respond without having to cut spending.”
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Scottish Tory finance spokesman Craig Hoy said the report was a “damning indictment” of the Scottish Government. He added: “It beggars belief that there’s a £1 billion shortfall in the spending plans Shona Robison announced just six months ago, on top of the existing £1.3 billion gap in her welfare spending plans.
“If John Swinney were serious about tackling this huge black hole, he would abandon his failed left-wing agenda and instead adopt the Scottish Conservatives’ plans for lower taxes and reduced welfare spending. But hard-pressed Scots workers will fear that, once again, they will be made to pick up the tab for SNP mismanagement.”
Scottish Labour finance spokesperson Michael Marra MSP said: “The SNP’s total mismanagement of public finances and failure to grow Scotland’s economy has created a black hole in Scotland’s finances. Since coming to power, the UK Labour Government has delivered an additional £10.3 billion for Scotland’s budget, but Scots will rightly be asking where all that money has gone.
MSP Michael Marra(Image: Ken Jack/Getty Images)
“The SNP must finally come clean about the mess they have made of Scotland’s finances. Having engaged with SNP ministers in good faith, I do not believe that they understand the challenges, let alone have a plan to fix them.”
The Scottish Government has been contacted for comment.
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