John Swinney: Budget a step in the right direction but will help prolong the agony of those in poverty

John Swinney has described the Budget as “a step in the right direction” but said Labour still has work to do to lift people out of poverty.

Speaking at First Minister’s Questions, Swinney was positive about how the Budget will impact Scotland, but added that scrapping the Winter Fuel Payment and maintaining the two-child cap “will prolong the agony of individuals in our society”.

His comments in parliament followed Chancellor Rachel Reeves' announcement of an additional £3.4bn for Scotland via Barnett consequentials as part of the Budget yesterday, making up the largest block grant in the history of devolution.  

The first minister said: “The increase in funding largely accords with the expectations the Scottish Government had to deal with the issues of pay and inflation.”

He said the increase in Barnett consequentials in health and education “delivers for Scotland” but added he is “conscious” that there are “negative consquentials” for culture, environment and transport.  

On the increase in National Insurance that employers will have to contribute, Swinney said it created an “uncertainty on public spending in Scotland”.  

The SNP leader said: “We have to publish a budget on 4 December and there is currently uncertainty about whether our public finances will be compensated in full for all that’s involved in advance of that [Scottish] budget.”

He described it as a “£500m question”.  

Scottish Labour leader Anas Sarwar responded by saying Swinney “was desperate to be disappointed by the Budget”.  

Initially refuting those claims, the first minister criticised the lack of spending to lift the two-child cap and said Sarwar “will have to convince” families living and poverty and pensions affected by the scrapped Winter Fuel Payment.

“There are issues that will prolong the agony of individuals in our society and a Labour government should address that,” Swinney told the chamber.  

Scottish Conservative leader Russell Findlay was scathing on the SNP’s general support of the Budget, which he said was the “biggest tax heist ever”.

Findlay asked: “If a £40bn tax rise is just a step in the right direction, how much does the first minister think it should be?”  

Swinney argued Labour have “inherited unsustainable circumstances in the public finances” and described the Tories of having a “menacing agenda” during its 14 years in government.  

Findlay accused the SNP leader of defending Labour and asked him to reduce income tax as well as tax on business.  

Swinney said: “The nerve of Mr Findlay who comes here calling for a reduction in tax when he wants us to spend more. That's some nerve.”