More Scottish spending cuts needed amid ‘very challenging environment’, says finance secretary

Finance secretary Shona Robison says she is working on cutting back Scottish Government spending amid a “very challenging environment” for public finances, pledging to update MSPs on her choices in early September.

Robison said more cost-cutting measures are needed following the Treasury’s review of public finances and uncertainty over how pay review body recommendations will be funded.

Earlier this month she confirmed a freeze on public sector recruitment for everything except “essential frontline” posts.

Scottish ministers have also confirmed their version of the winter heating payment will now be means-tested, following a similar decision by the UK Government.

The arts body Creative Scotland has also closed one of its key funds due to concerns over support from the Scottish Government.

In a letter to Kenneth Gibson, convener of Holyrood’s Finance Committee, Ms Robison said more cost-cutting is needed in the 2024/25 financial year.

She said: “The Scottish Government, along with government and public sector bodies across the UK, faces a very challenging environment as we manage our finances through the current financial year and set our budget for 2025-26.

“I am working with my cabinet colleagues to agree the necessary actions to reduce expenditure and ensure our finances are on a sustainable footing.

“Further to this, additional measures are now necessary following the UK Treasury’s recent audit of public spending and lack of clarity over whether their decision to deliver pay review body recommendations will be fully funded.”

Details are expected to be set out when the Scottish Parliament returns from recess in early September.

The finance secretary also said the Government would publish its tax strategy at the same time as the draft Budget document for the upcoming financial year.