Scottish Finance Secretary Warns of Economic Damage from UK Budget Cuts
Changes in welfare policies may affect over three million families as Scottish Government braces for fiscal challenges.
Scotland's Finance Secretary Shona Robison has expressed concerns regarding the recent spring statement delivered by the Chancellor of the Exchequer, which she claims risks causing significant social and economic damage.
The statement, which includes plans for nearly £5 billion in benefit cuts by the end of the decade, aims to restore a narrow margin of fiscal headroom while allocating £1 billion towards employment support initiatives aimed at assisting individuals in returning to work.
The proposed welfare alterations have drawn criticism from opposition politicians and charitable organizations, as they stand to affect approximately three million families currently receiving incapacity benefits.
The reforms will also result in personal independence payments (PIP) being reduced for 800,000 claimants.
While the Scottish Parliament possesses substantial authority over welfare policies administered through Social Security Scotland, any modifications enacted by the UK Government in Westminster will directly influence the devolved budget in Scotland.
Robison highlighted the urgency of addressing the implications of the new measures during a debate in Holyrood, emphasizing the need for the UK Government to reconsider its approach.
Robison stated, "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.
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."
According to the alarming impact assessments released by the UK Government regarding its welfare policies, it is projected that 250,000 individuals—including 50,000 children—will be driven into relative poverty due to the announced measures.
Robison further criticized the Treasury for not fully funding the additional costs related to employers' national insurance contributions, thereby exacerbating the fiscal challenges faced by Scotland.
She reiterated that the decisions made by the UK Government have the potential to cause serious social and economic repercussions and indicated a commitment to pressing UK ministers to alter their course.
The measures have faced accusations of austerity from critics, pointing to a growing discontent with various unpopular governmental decisions.
However, representatives from the UK Government and figures within Scottish Labour have contended that public spending is slated to increase amid these proposed cutbacks.