Westminster decisions ‘risk serious social and economic damage’, says Robison

The Chancellor’s spring statement announced last week risks “serious social and economic damage”, Scotland’s Finance Secretary has said.

Last week, Rachel Reeves announced nearly £5bn in benefit cuts by the end of the decade to restore a narrow buffer of fiscal headroom, with £1bn to be invested in employment support to help people back to work.

The changes, which drew the ire of opposition politicians and charities, will hit three million families on incapacity benefits and see personal independence payments (Pip) be lower for 800,000 claimants.

The Scottish Parliament holds substantial powers over benefits, administered through the devolved agency Social Security Scotland, meaning changes made south of the border to payments will impact the devolved budget.

The Chancellor made the spring statement last week (Ben Stansall/PA). PA Media

Speaking ahead of a Holyrood debate on the issue – and its impact on Scotland’s budget – Finance Secretary Shona Robison said the Government would work to persuade UK ministers to “change course”.

“The spring statement was an opportunity for the UK Government to reject the mistakes of the past and to commit to investment in public services,” she said.

“But the Chancellor made the wrong choices, which will short-change public services and deliver austerity, seeking to balance the books on the backs of disabled people.

“The alarming impact assessments published by the UK Government on its own welfare policies show in black and white the number of people who will lose out as a direct result of these changes.

“We know that 250,000 people – 50,000 of whom are children – will be pushed into relative poverty as a result of the measures announced by the Chancellor.

“These cuts will have a devastating impact on Scotland’s budget, which will be compounded by the Treasury’s refusal to fully fund the additional cost of employers’ national insurance contributions.

“The UK Government’s decisions risk serious social and economic damage – and we will continue to press them to change course.”

Critics of the changes, and of many unpopular decisions in recent months, have accused the Labour Government of “austerity”, but UK ministers and figures in Scottish Labour have been quick to say that public spending is due to go up.