Scottish Government publishes financial strategy

Deputy First Minister Shona Robison has announced the Scottish Government's Financial Strategy, which includes economic growth, progressive taxation and spending plans that targeting those in greatest need.

The Medium-Term Financial Strategy sets out the government's approach to make sure the country's finances are sustainable and at the same time, deliver high-quality public services.

The Strategy includes growing the economy, including by delivering on ambitious commitments on childcare, seizing opportunities in areas where Scotland has a competitive advantage and supporting entrepreneurs, start-ups and scale-ups and taking tough decisions around spending, focusing on what is needed to achieve the missions of equality, opportunity and community.

The tax strategy will also be updated with a new advisory group to be established this summer and chaired by the Deputy First Minister.

Robison said: “We are steadfast in our commitment to tackling poverty, building a fair, green and growing economy, and improving our public services to make them fit for the needs of future generations. But we must recognise that our current financial situation is among the most challenging since devolution, driven by the Covid pandemic, the war in Ukraine and the recent period of high inflation.

“Our funding remains largely based on decisions made by the UK Government, but they have failed to take the steps required to inflation-proof our budgets, and their decisions from Brexit to the disastrous mini-budget have made matters worse. This is creating substantial pressure on our public services, which we have no choice but to address.

“Today I have outlined our strategy for managing these challenges, doing all we can within our powers to ensure public finances are on a sustainable path. We will have a laser-like focus on spending, ensuring it targets equality, opportunity and community. We will generate economic growth, supporting businesses to invest and create new jobs while increasing tax revenues to invest in better public services. And we will continue to build the most progressive tax system in the UK, ensuring the burden of taxation is placed on those with the broadest shoulders.

“There can be no escaping the difficult choices ahead, but by following the plan outlined today we can provide a more prosperous and fairer future for the people of Scotland.”