Budget fails to tackle slow economic growth, says Labour

The SNP’s Budget fails to tackle slow growth and continues a “cycle of decline” in the Scottish economy, Scottish Labour has said.

The party’s economy spokesman Daniel Johnson said the draft Budget proposals set out earlier this week include real-terms cuts for enterprise agencies and skills funding.

Meanwhile, the SNP has said the UK Government’s own budget merely treated Scotland as an “afterthought”.

Labour pointed to analysis from the Scottish Fiscal Commission regarding the tax differentials between Scotland and the rest of the UK.

It estimated that slower Scottish economic growth would detract £839 million from the income tax net position in 2025-26.

Mr Johnson said: “The SNP’s low-growth economy is starving the public purse of over £840 million next year – but this Budget is set to continue the cycle of decline.

“At a time when we need to kick-start growth and renew our economy, the SNP is raiding the budgets of key engines of growth – from skills to transport to enterprise agencies.

“These decisions will harm Scotland economy and our public services by consigning Scotland to more low growth.

“Across the UK, Labour is working to clean up the economic carnage left behind by the Tories, but Scotland’s economy needs a change in direction too.

“The SNP must stop relying on sticking plaster solutions and set out a real plan to fix the foundations of our economy and unlock growth and jobs.”

However, the SNP pointed to the record funding of £21 billion for health and social care in Finance Secretary Shona Robison’s Budget.

The SNP have also pledged to mitigate the two-child benefit cap, although payments for this would likely begin in 2026 pending the co-operation of the UK Government.

MSPs will vote on the Scottish Budget in February, following a period of negotiation between the parties at Holyrood.

SNP depute leader Keith Brown said: “John Swinney’s first Budget as First Minister delivers real progress on the people of Scotland’s priorities – offering hope and putting in place the investment for Scotland to win big in the future.

“People across Scotland have been let down by the UK Labour Government. While the UK Government’s budget treated Scotland as an afterthought – this is a Budget that puts the people of Scotland first.

“We have listened to what people have told us on the NHS – that’s why the SNP is investing record amounts in the health service, making it easier for people to see their GP and bringing down waiting times.

“While Labour cut winter fuel payments, the SNP is introducing universal support and while they push children into poverty with the cruel two-child cap, the SNP will scrap it and give thousands of children a better chance in life.”