Scottish deputy first minister warns against a return to austerity

Scottish deputy first minister, John Swinney has warned against a return to austerity ahead of the UK government's Autumn Statement.

He called for an alternative to austerity to avoid prolonging the expected recession.

Swinney also set out other urgent priorities including inflationary increases to the 2022-23 budgets for the devolved governments, increasing social security benefits in line with the new financial year, retaining the triple lock on pensions and introducing an enhanced windfall tax.

Swinney said: “The UK Government must not repeat the mistakes of the past. Scotland has already suffered a decade of UK Government imposed austerity which has disproportionately hurt the poorest and most vulnerable in society – it does not work and will inflict misery on people, put pressure on our public services and hamper our economy.

“With the UK forecast to enter recession in the coming months – one the Bank of England warns may be the longest in 100 years – cutting public spending risks prolonging that recession, hampering efforts to restore the public finances. The Chancellor must rule this out and pursue an alternative to austerity that invests in public services and the economy.

“We are facing exceptional challenges – a cost of living crisis, soaring inflation and a Scottish Government Budget which is worth £1.7 billion less than when it was introduced last December. An additional inflationary increase in the block grant is needed to support us in addressing these challenges, as part of an overall approach that balances long-term fiscal sustainability with the increases in public spending that are needed.”

“The prospects for next year and beyond are very concerning. Reductions in UK departmental spending on the scale that is being trailed would have severe knock-on impacts on the Scottish Budget and our public services. It is vital that the Chancellor takes steps to ensure that people are supported, public services are protected and devolved governments have the funding to deliver for the communities we serve.”

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