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New paper reveals cuts equivalent to £1,800 per person.

The Chancellor’s final budget ahead of the General Election should be focused on delivering economic growth by tackling inequality Deputy First Minister and Finance Secretary John Swinney said yesterday as he renewed calls for the UK Government to abandon the damaging policy of austerity.

According to the Office of Budget Responsibility’s own figures, the UK Government will cut public services, capital investment and welfare spending by around £200 billion between 2009/10 and 2019/20 in today’s terms. 

A new paper, published yesterday (Tuesday) by the Scottish Government, sets out the UK Government’s fiscal consolidation to date, the pounds and pence cost of austerity to Scotland, and emphasises the scale of planned cuts to come, such as:

• Cuts on day-to-day spending on public services will be equivalent to around £1,800 per person between 2009/10 and 2019/20.
• These cuts and the cuts to welfare are having a significant impact on the poorest in our society with HM Treasury analysis showing that households in the lowest 20% of the income distribution bearing a greater than average burden of the ongoing austerity.
• Scotland’s cumulative share of the cuts to day-to-day spending over the next 5 years are estimated to amount to around £14.5 billion compared to 2014-15 levels.
• In addition to these cuts, the Scottish Government estimate that the cumulative impact of the welfare reform changes will reduce the welfare bill in Scotland by around £6 billion over the six years to 2015-16.

The Deputy First Minister said:

“There is a need to take action on the legacy of borrowing and debt inherited from the previous UK Government, but the scale of cuts goes far beyond those required to deliver sustainable public finances, and damages the most vulnerable in our society.

“Between 2009/10 – 2014/15, Scotland’s budget has fallen by around 11% in real terms, within this capital expenditure has fallen by around 34%. This means our budget has been cut by a staggering £3.5 billion in real terms since 2009/10.

“And it doesn’t stop there. Scotland’s cumulative share of the cuts to day-to-day public spending over the 5 years to 2019-20 is forecast to be worth around £14.5 billion compared to 2014/15 levels. It is unconvincing to tell the public that austerity is the best – and only – course of action to tackle the deficit.

“The First Minister has outlined a sustainable, credible alternative to austerity and has provided the figures to back it up.

“This alternative would allow a more responsible reduction in the deficit, whilst providing real terms growth in public spending. This would lead to an additional £180 billion of expenditure at the UK level between 2016-17 and 2019-20 compared to current UK Government plans - around £14 billion of which would flow to Scotland.

“The Scottish Government has also highlighted that such cuts not only have the potential to harm public services but potentially delay the economic recovery and make the objective of tackling the public finances that much more difficult. 

“I hope that the Chancellor will have listened to reasoned proposals ahead of delivering his budget and that economic growth and tackling inequality will be given equal representation in this final budget before the General Election.”

Notes To Editors

The paper on public spending can be accessed using the following link:http://www.gov.scot/Topics/Economy/Publications

For more information on the Scottish Government’s alternative approach to austerity, please visit:http://news.scotland.gov.uk/News/An-alternative-to-austerity-15e5.aspx