Scottish gov’t announces 655 mln USD spending cut

LONDON, Sept. 3 (Xinhua) — Scottish Finance Secretary Shona Robison announced a government spending cut of 500 million pounds (655 million U.S. dollars) on Tuesday, during her speech to the Scottish Parliament at Holyrood.
The savings will come from various areas, including up to 60 million pounds from Emergency Spend Controls, a decrease in resource spending on sustainable and active travel, and interest income on Scottish Water loan balances. Additionally, up to 460 million pounds in extra Scotwind revenue funding will be used, drawing from funds initially earmarked for net-zero initiatives.
Robison told the parliament that the savings should also be viewed in light of the recent decision by the Scottish government to align with the United Kingdom (UK) government’s stance not to maintain universal access to the Winter Fuel Payment, a decision that could save up to 160 million pounds.
Robison attributed the cuts to the tight funding constraints imposed by the UK government. The Chancellor has made it clear that UK government funding will remain limited, she said, and the Prime Minister has also warned of difficult decisions ahead.
While the new Labour government has acknowledged the state of the UK’s public finances, she explained, its proposed solutions appear to be an extension of austerity policies.
“We know from bitter experience that yet more Westminster austerity is not the answer, and public services must be protected,” said Robison. (1 British pound = 1.31 U.S. dollar) ■