SNP warned not to ‘squander' £9.1bn boost after Chancellor Rachel Reeves unleashed £300bn UK-wide splurge

Scottish Sun

a day ago

LABOUR challenged the SNP not to 'squander' a £9.1billion boost to Holyrood's coffers after the Chancellor turned on the taps at her spending review.
Rachel Reeves unveiled a £300billion UK-wide splurge in a bid to appease voters after her party's rocky first year in power.
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Scottish Labour leader Anas Sarwar labelled the extra money as 'game-changing'
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Finance Secretary Shona Robison claimed that if Ms Reeves was being fair, she'd have sent an extra £1bn a year to Holyrood
Announcing her long-term spending plans for the years from 2026, she confirmed major investment in defence and nuclear power plus a three per cent above-inflation increase to NHS spending down south.
Ms Reeves admitted 'too many people in too many parts of our country' were yet to feel the benefits of the 'change' they voted for when Labour swept back into power last July.
The knock-on effect of the Chancellor's funding pledges means a massive cash boost for the Scottish Government to spend as it sees fit.
Nats ministers will get an average annual boost of £2.4billion on day-to-day spending and £400million for major projects in the years to 2029.
That's on top of the £4billion-plus yearly bonus delivered last October from the first Budget of Sir Keir Starmer's government.
Scottish Labour leader Anas Sarwar labelled the extra money as 'game-changing'.
He said: 'These plans will bring billions of pounds of investment to Scotland — on top of the record Budget settlement.
'But the massive increase in funds must not be squandered by the SNP government, which has a track record of waste and failure.'
Scottish Secretary Ian Murray said voters would face a clear choice at next May's Holyrood election.
He said: 'It's either a third decade of the SNP, who've squandered their opportunity over the last 18 years and squandered the £4.9billion extra the UK Government gave earlier.
Top 5 takeaways from Spending review
'Or a government that's committed to investing in public services and infrastructure, renewing Scotland and working with a UK Labour government to deliver jobs right across the country.'
But experts warned the extra cash could be swallowed by Scottish Government pledges such as pay hikes for public sector workers and higher devolved benefits.
FUEL AID HOPE
NATS' Finance Secretary indicated the SNP might dish out more cash to pensioners after Labour's winter fuel payment U-turn.
But Shona Robison refused to commit to passing on all of an estimated extra £120million from Westminster to struggling Scots OAPs.
Labour has now said older people down south with an income below £35,000 will receive the handouts, following an outcry when they were axed.
Experts reckon the extra funds now due to Holyrood will be enough to cover £100 payments Nats have already pledged to pensioners.
Asked if the payments could be increased, Ms Robison said: 'There's other things we need to fund as well which is why we're looking at the options. We'll deliver the best deal for pensioners.'
Nats ministers are already set to spend £2billion more on welfare by the end of the decade than they receive from Westminster.
But SNP Finance Secretary Shona Robison claimed that if Ms Reeves was being fair, she'd have sent an extra £1billion a year to Holyrood.
She said: 'This review is business as usual from the UK Government, which is yet again treating Scotland as an afterthought and failing to provide the funding we need.
'Had our resource funding for day-to-day priorities grown in line with the UK Government's overall spending, we'd have £1.1billion more to spend on our priorities over the next three years. In effect, Scotland has been short-changed by more than a billion pounds.'
But despite the extra cash, an expert warned SNP policy decisions mean tax rises or spending cuts may be needed to balance Scotland's books by 2027/28.
David Phillips, associate director at the Institute for Fiscal Studies, said the winner of next year's election 'will face tough choices' due to increased NHS, benefits, and public sector pay costs.
Earlier, Ms Reeves told the Commons her plans were the start of Labour's project to 'renew Britain'.
She vowed to back the Acorn carbon capture project in Aberdeenshire.
But official documents raised questions about how the scheme, to store gas emissions under the North Sea, would be funded.
NUCLEAR SWIPE AT FM & CO
RACHEL Reeves slammed the SNP's opposition to arms factories and nuclear power as she confirmed defence spending hikes.
The Chancellor announced an £11billion boost for the armed forces plus a £600million increase for security and intelligence agencies.
She also confirmed a £250million redevelopment of the Faslane base on the Clyde, where new nuclear submarines will be stationed.
It means defence spending will be upped to 2.6 per cent of GDP by April 2027.
Ms Reeves blasted Nats' opposition to nuclear weapons and munitions.
She said: 'Investment in Scotland, jobs in Scotland, defence for the United Kingdom, opposed by the Scottish National Party, delivered by this Labour Government.'
Sir Keir Starmer previously set out the UK Government's Strategic Defence Review in a speech in Glasgow last week.
Nats and Labour clashed as the No10 chief claimed Nats' goal of scrapping Trident nuclear missiles would make Scotland less safe.
Sir Keir said: 'Imagine the effect that would have on the safety and security of the UK and of Scotland.'
They concluded: 'A final investment decision will be taken later.'
Scottish Tory finance spokesman Craig Hoy warned UK taxes will probably have to rise at the Budget this autumn.
He said: 'This spend-now-tax-later statement will offer no comfort to those betrayed by the first year of a disastrous Labour Government.
'Taxes remain sky-high and the Chancellor will almost certainly have to hike them further to pay for her spending plans, breaking yet another of her promises.'
Mr Hoy added: 'Scots are saddled with two failing, high-tax, left-wing governments — one at Westminster and the other at Holyrood.'