Angela Rayner denies UK government imposed cuts on Scotland

The Deputy Prime Minister has denied that the UK government’s decisions have forced budget cuts in Scotland.

Angela Rayner was in Edinburgh for talks with Prime Minister John Swinney, whose administration has imposed emergency spending controls.

Scottish ministers have said they have no choice but to make tough decisions because of planned budget cuts at Westminster.

But Ms Rayner insisted that was not the case.

She added: “We continue to work together, to govern and to collaborate.”

Mr Swinney said Scotland was facing “the most difficult financial situation of the devolution era”.

Holyrood ministers have cited spending cuts announced by Chancellor Rachel Reeves to plug a £22bn black hole in the Treasury’s finances.

This included scrapping universal winter fuel payments for pensioners – a measure that was replicated north of the border after the The SNP government has abandoned its plan to provide Scottish replacement benefit without a means test.

Mr Swinney said he had raised concerns with Ms Rayner that his government had taken the decision “without any consultation”.

He insisted his government had “no choice but to repeat this decision which will impact tens of thousands of pensioners in Scotland”.

The Prime Minister said: “As I have warned before, we need an injection of investment into our public services to cope with the increasing pressures and continuing costs of austerity.”

He added: “I look forward to engaging with the UK Government on areas where we can work together.”

Scottish Finance Secretary Shona Robison ordered an emergency spending brake in a letter to cabinet colleagues earlier this week.

She told BBC Scotland News that “only absolutely essential spending” would be allowed.

The government has also implemented a hiring freeze, with only “absolutely critical” emergency service positions exempt, Robison said, as well as a halt to marketing spending.

She said the SNP administration had found itself in an “extraordinary position” because of the chancellor’s cuts.

Robison said spending cuts were the only “lever” her government could pull during the year to fund higher-than-expected public pay deals.

She reiterated that UK government funding would not cover pay rises and that around a third of the total would have to come from ministerial cuts.

Earlier, the finance secretary said BBC Radio’s Good Morning Scotland programme that the government had budgeted for public sector wage increases of up to about 2% because that was all it could afford.

The Scottish Government recently provided additional funding to help Cosla offer a pay rise of at least 3.6% to local government employees.

Salaries for doctors, nurses and teachers have not yet been agreed.

According to the Fraser Allander Institute (FAI), much of the budget problem was due to a “lack of prudent planning” by Holyrood ministers.

João Sousa, deputy director and chief economist at the FAI, said that while the SNP government had “limited room for manoeuvre”, the spending freeze was predictable because ministers had not set out a public pay policy in advance.

Ms Robison said the Scottish Government had been unable to plan with certainty because of the “chaotic” Conservative government which was in Downing Street until July.

She told BBC Scotland News that communication with the Treasury under the new Labour administration had improved.

The finance secretary added that she would set out her spending plans in detail when she announces the 2025-26 budget later this year.