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UK government revises Scottish budget cut from £176.8m to £107m | UK government revises Scottish budget cut from £176.8m to £107m |
(about 2 hours later) | |
It has been confirmed that cuts to Scotland's budget this year will be £70m less than estimated. | |
Treasury sources said last week that the Scottish government could lose £176.8m but the most up-to-date figures show the reduction will be £107m. | |
Scotland's Finance Minister John Swinney welcomed the news but said there was "more work to do". | Scotland's Finance Minister John Swinney welcomed the news but said there was "more work to do". |
The updated figures were released ahead of a meeting between Mr Swinney and Mr Osborne in London on Monday. | The updated figures were released ahead of a meeting between Mr Swinney and Mr Osborne in London on Monday. |
The Treasury said the cut to the 2015/16 Scottish budget was the consequence of £3bn savings being made to UK departmental budgets. | The Treasury said the cut to the 2015/16 Scottish budget was the consequence of £3bn savings being made to UK departmental budgets. |
Mr Osborne believed the move was necessary to tackle UK debt "as quickly as possible". | Mr Osborne believed the move was necessary to tackle UK debt "as quickly as possible". |
Defer impact | |
A Treasury spokesman confirmed the £107m figure, saying: "Following the completion of the in-year Whitehall budget review process the automatic calculation of the Barnett formula impact on the budgets of the devolved administrations has now been finalised and the Chief Secretary to the Treasury has written to the Scottish Finance Minister to this effect." | |
The Scottish government will have the option of deferring the impact of the budget reduction until 2016/17. | |
However, Mr Swinney, who was speaking in London ahead of his meeting, said: "They've [UK government] no mandate to slash public expenditure in the fashion that they have reduced public expenditure already and certainly not to proceed in the way that the Chancellor has outlined. | However, Mr Swinney, who was speaking in London ahead of his meeting, said: "They've [UK government] no mandate to slash public expenditure in the fashion that they have reduced public expenditure already and certainly not to proceed in the way that the Chancellor has outlined. |
"So I hope out of the discussions that we have and the parliamentary pressure that 56 out of 59 Scottish MPs being SNP MPs will bring, is that the Chancellor will listen to the mood in Scotland - which says this is the time to end austerity and to start investment in our public services." | |
The UK government has pledged to clear the deficit by 2018/19. | The UK government has pledged to clear the deficit by 2018/19. |
Mr Osborne must find a further £30bn of savings over the next three years, including £12bn from welfare spending and £13bn from government departments. | Mr Osborne must find a further £30bn of savings over the next three years, including £12bn from welfare spending and £13bn from government departments. |
He told MPs in the House of Commons last week: "We set out two weeks ago that we were going to find further efficiencies and savings in government. | He told MPs in the House of Commons last week: "We set out two weeks ago that we were going to find further efficiencies and savings in government. |
"As everyone knows, when it comes to living within your means, the sooner you start the smoother the ride. | "As everyone knows, when it comes to living within your means, the sooner you start the smoother the ride. |
"Sharing resources and risks across the UK is a much better idea than full fiscal autonomy that would cost Scotland £10bn a year." | "Sharing resources and risks across the UK is a much better idea than full fiscal autonomy that would cost Scotland £10bn a year." |
The Chancellor will detail his plans for the future in an emergency budget which is scheduled to take place on 8 July. | The Chancellor will detail his plans for the future in an emergency budget which is scheduled to take place on 8 July. |