Scottish parliament announces £500 million spending cuts

Scotland's Finance Secretary has announced cuts to green policies, as part of half a billion pounds worth of savings the government is trying to make, our Scotland Correspondent Peter Smith reports

By ITV News Producer Hannah Ward-Glenton

The Scottish finance minister has announced severe cuts to the country's public services, saying the current financial situation is "not sustainable".

Shona Robison announced up to £500 million worth of cuts, including £188 million to be found across government departments, saying: "I must take further and more urgent action now to make sure we can balance the Scottish budget."

That included £115.8 million of savings from the health and social care budget, but in a letter to MSPs on Holyrood’s Finance Committee, Robison offered “assurances that the health portfolio will seek to protect key frontline emergency services”.

The government also plans to cut active travel funding and repurpose money from other projects to save £65 million, on top of around £60 million saved through spending controls already announced.

Robison said that on top of the "direct savings" she would make, up to £460 million from the ScotWind leasing round - the process by which Scotland leases its seabed to companies wanting to build offshore wind farms - will also be used, but with the hope it wouldn't all need to be spent.

"It is not what I would want to be doing," Robison said when questioned on why ScotWind funds were being utilised.

Robison did not outline any changes to taxation, but hinted that the Scottish government would not increase income tax at the next Scottish Budget.

She highlighted that raising significant funds from additional taxation would be challenging because it would involved "substantial reform" to the tax system or further devolution of powers.

A number of measures had already been announced, including the government redirecting money from a nature fund and a free iPad scheme to go towards local authority pay awards.

Opposition parties have blamed the financial shortfalls on the SNP's previous spending plans.

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Robison sought to blame Westminster for a “whole new era of austerity” both ahead of and during her update for MSPs on the scale of Scottish government spending cuts.

"Were Scotland an independent country we would not be paying the price for bad decisions made at Westminster," Robison said on Tuesday.

Tuesday's speech came ahead of the full Scottish Budget which is set for December 4.

Ahead of her statement statement, Ms Robison said: “The SNP Government has delivered a balanced budget in every year that we have been in office – and we will continue to do so."

“We have taken many tough choices – including asking those on higher incomes to pay a bit more income tax – in order that we can invest more in public services like our NHS.

“But the fact is, the Scottish Government operates with a largely fixed budget determined by Westminster and, under the Labour Government, it is clear that we are entering a whole new era of austerity."

First Minister John Swinney had already warned there are more “tough decisions” ahead, echoing Prime Minister Sir Keir Starmer, who last week said the October Budget would be "painful".

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