SKINT public services are projected to face even more cuts due to ministers’ pledge to tie benefits rises to inflation, with experts warning of a bleak financial future on the horizon for the Scottish Government.
According to The Scottish Sun, experts warn that frontline departments could be left extremely limited of funds for year as the pledge continues to risk making the estimated £2billion hole worse for the Scottish Government by the year 2030.
Social Security Secretary Shirley-Anne Somerville pledged to increase government handouts in line with inflation and IFS’s David Phillips says this decision will put more pressure on the Scottish Government’s finances as a result.
“It is legitimate for the Scottish Government to prioritise issues like the generosity of benefits” Phillips says. “But the decision will bake in spending pressures on other devolved areas unless additional income is found.
“Because spending is starting from a higher level, these increases will exceed increases in block grant funding from the UK Government — even if Westminster increases benefits in line with inflation as well.
“This means the amount of general funding needing to be used for benefits will grow over time.”
Tories’ social security spokeswoman Liz Smith was highly critical of the usage of taxpayers’ money: “By allocating an ever-rising share of the budget to benefits and public pay, the SNP is putting increasing strain on key services.
Nowhere near enough revenue is coming in to pay for this additional spending which, in turn, is leading to slower economic growth compared to the rest of the UK.”
A spokesperson issued the following: “The Scottish Government continues to face the most challenging financial situation since devolution.
“Difficult choices are having to be made to deliver sustainable finances.
“We are calling on the UK Government to deliver more funding for public services, infrastructure and measures to eradicate child poverty.”
