The Scottish government has confirmed spending cuts of up to £500m.
Finance Secretary Shona Robison said the “direct savings” were necessary to support the Scottish government’s 2024/25 budget.
In a pre-budget fiscal update to the Scottish parliament on Tuesday, Ms Robison said: “Prolonged Westminster austerity, the economic damage of Brexit, a global pandemic, the war in Ukraine, and the cost of living crisis have all placed enormous and growing pressure on the public finances.”
The Scottish government previously announced a number of cost-saving measures, including the reintroduction of peak ScotRail fares, axing universal winter fuel payments for pensioners, and scrapping a free bus travel scheme for asylum seekers.
The cuts have been made ahead of the UK government’s budget in October, which Sir Keir Starmer has warned is going to be “painful”.
Last week, experts at independent economic forecaster the Scottish Fiscal Commission (SFC) said while UK government policies contribute to pressures on the Scottish budget, “much of the pressure comes from the Scottish government’s own decisions”.
The SFC warned that ministers could struggle to balance the country’s budget due to above-expectation public sector pay deals, the council tax freeze and benefit reforms, as well as uncertainty about the level of funding coming from Westminster.
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But in an interview with Sky News, First Minister John Swinney said Scotland has balanced its budget every year and had “not overspent by a farthing”.
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