Scottish government announces £500m budget cuts amid rising costs

The Scottish government, led by Finance Secretary Shona Robison, has announced significant funding cuts totaling up to £500 million as it grapples with nearly £1 billion in additional costs. These financial challenges stem from various factors, including public sector pay negotiations, ongoing austerity measures from Westminster, inflation, the impacts of the pandemic, and the war in Ukraine. To address these issues, the government has implemented emergency spending controls and a recruitment freeze on non-essential positions. In addition to direct cuts, the government plans to draw down £460 million from the ScotWind leasing auction, which raised over £700 million in 2022. This funding is intended to support efforts to tackle climate and biodiversity crises. The measures also include reintroducing peak rail fares, eliminating free bus travel for asylum seekers, and allowing local authorities to finance pay deals through existing funds. Robison emphasized the need for fiscal responsibility, stating that the government has balanced its budget for 17 consecutive years and aims to continue this trend. The cuts will affect various sectors, including sustainable travel initiatives and public services, although frontline services like the NHS, police, and fire departments will still be able to recruit necessary staff. The announcement comes just before First Minister John Swinney is set to present his first Programme for Government, outlining the administration's policy goals. The Scottish government is expected to provide more detailed spending plans for the 2025-26 budget later this year, as it navigates these financial challenges.