Some Budget measures are welcome but others will ‘prolong agony’, warns Swinney

Some measures in the UK Government’s Budget are to be welcomed but others will “prolong the agony” for some Scots, First Minister John Swinney has said.

Chancellor Rachel Reeves announced a £1.5 billion funding boost this financial year and a further £3.4 billion next year in her Government’s tax and spending plans on Wednesday.

Speaking at a lively First Minister’s Questions at Holyrood on Thursday, Mr Swinney welcomed the extra cash but criticised Ms Reeves’s decision to continue the cap on benefits for families with more than two children – which the SNP has long campaigned to be lifted.

The First Minister said: “Where my regret comes from is the fact that in the financial estimates set out by the Chancellor yesterday, she’s indicated over the course of a three-year period there will be a £10 billion surplus in the budget.

“But she wasn’t able to find a single penny to lift the two-child cap that is putting and forcing families into poverty in our country today, and I regret that very deeply.

“While there are welcome steps in the Budget, there are issues that will prolong the agony of individuals in our society, and a Labour Government should address that and right the wrongs that they’re presiding over now.”

Scottish Labour leader Anas Sarwar said he had been clear the UK Government could not “fix every Tory mess” in one Budget, and would look to “make further progress over the course of a Labour Government”.

Mr Swinney also raised “significant uncertainty” stemming from the decision to insulate the public sector from the increase to employers’ national insurance contributions, which is understood to be subject to negotiation between the Treasury and the Scottish Government.

“We have to publish a Budget on December 4, and there is currently uncertainty about whether our public finances will be compensated in full for all that’s involved in advance of that Budget,” he said.

“That of course is not an insignificant sum, it’s a £500 million question.”

Mr Sarwar accused the First Minister of being “desperate” to criticise the UK Government on the Budget, adding he welcomed the increase in the block grant “through gritted teeth”.

“The fact is, this is a historic budget rise for the Scottish Government, delivered by a Labour Government,” he said.

Mr Sarwar went on to list a number of initiatives announced in the Budget, prompting Presiding Officer Alison Johnstone to gesture to the Labour leader to ask his question to the First Minister.

Included in the list was compensation for the victims of the infected blood scandal, which Mr Swinney said was “to their credit”, having had constituents who were impacted.