Scottish Government to set out budget as energy prices squeeze public finances

The Scottish Government's budget for the next financial year will be set out on Thursday afternoon, as inflation and high energy prices squeeze public finances.

Ahead of Deputy First Minister John Swinney's statement, Labour have called on the Scottish Government to end what they call the "scandal" of poverty pay in the public sector.

The party says there are 23,000 people in the public sector who are earning below the national living wage.

Labour is also calling for a freeze on water charges and a £100 rebate for households, as well as help for homeowners facing repossession and action on the cost of commuting.

Finance spokesman Daniel Johnson said: "With Scotland's finances in turmoil due to Tory and SNP incompetence, the need for a budget that delivers on the priorities of the people of Scotland has never been greater.

"Scottish Labour is clear - the priority for this budget must be tackling the cost-of-living crisis by targeting support to those most in need and ending the scandal of poverty pay across the public sector.

"Every penny of spending in this budget must deliver value for money for the people of Scotland.

"On Thursday, the Deputy First Minister must set out clearly how he will reduce waste and end spending to fix mistakes made by SNP ministers."

Meanwhile, the Scottish Liberal Democrats called for the budget to include investment in energy efficiency, social care and long Covid support.

Party leader Alex Cole-Hamilton took part in Deputy First Minister John Swinney's meeting with the opposition last week.

Mr Cole-Hamilton said: "Given that the Finance Secretary appears to have bought the support of the Greens simply by spending tens of millions on independence, some may wonder why we are even taking part in budget talks.

"Despite these obstacles, Scottish Liberal Democrats have always believed that opposition parties should seek to improve budgets where they can.

"Our deal on the eve of the last election secured £120 million extra for mental health, among other improvements.

"I have told the Finance Secretary that our priority for capital spending is to insulate people from the cost-of-living crisis and the climate emergency.

"The Government could launch a national emergency insulation programme, with a particular focus on those areas with the most hard-to-heat homes."

A spokesman from the Scottish Government said: "The Scottish Government is responding to a cost of living crisis involving an increased demand on public services.

"We have allocated £3 billion in 2022-23 to mitigate the impact of the cost of living crisis, increased the game changing Scottish Child Payment to £25 per eligible child per week - a 150% increase within eight months - and attempted to secure fair pay settlements for public sector workers.

"The UK Government has provided no additional funding for this year's pay uplifts to respond to inflation.

"The Deputy First Minister will outline the 2023-24 Scottish Budget proposals, including on taxation, on Thursday."

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