Chancellor Rachel Reeves told to abandon 'austerity' welfare cuts in spending review by the SNP
The SNP says Labour must ‘abandon plans to impose more austerity cuts’
The chancellor is being told to “scrap the Labour Party’s devastating cuts to disabled people” in her spending review later this week.
The SNP has written to Rachel Reeves ahead of her statement on Wednesday, urging her to “abandon plans to impose more austerity cuts” and ensure there are no cuts to affordable housing, policing or the Scottish Government’s budget.
Scottish Finance Secretary Shona Robison also told the chancellor to “change course” and abandon her self-imposed fiscal rules.
Yesterday, UK Science, Innovation and Technology Minister Peter Kyle was asked if he could guarantee there would be no cuts to affordable housing and police officer numbers.
In response, Mr Kyle said: “The whole details of the spending review will come out on Wednesday.”
Dave Doogan MP, the SNP’s economy spokesman, has now written to the chancellor calling on her to “immediately and fully reverse Labour’s austerity cuts to disabled people, pensioners and families, and deliver the investment needed to end child poverty, boost public services and grow the economy - instead of swinging the Westminster austerity axe again”.
In his letter he also said the chancellor must “deliver long-overdue funding for Scottish energy projects - including fully and immediately funding the Acorn Scottish carbon capture project, which has faced years of Westminster delays”.
Mr Doogan also said Ms Reeves should match the Scottish Government’s plan to scrap the two-child benefit cap and the bedroom tax, and introduce a UK-wide version of the Scottish child payment.
He added: “Instead of choosing more austerity cuts, the Labour government should be choosing to boost economic growth and make fairer choices to help families and properly fund public services.
“At the UK spending review on Wednesday, I urge you to scrap the Labour Party’s devastating cuts to disabled people and abandon plans to impose more austerity cuts to public services, including affordable housing and policing, which would hit the most vulnerable and squeeze Scotland’s budget.”
Over the weekend Mr Kyle said police must “do their bit” to “embrace change” as the Home Office and Treasury continue negotiations ahead of the spending review.
It is understood Home Office ministers do not believe there is enough cash to recruit the additional police officers Labour promised in its manifesto.
He said “every part of society was struggling” and the chancellor is facing pressure from all sectors - last week Ms Reeves also warned that not every government department will “get everything they want” and said there were “good things I’ve had to say no to”.
However Mr Kyle did confirm there would be a boost to spending on schools and scientific research.
Over the weekend Ms Robison said the UK and Scottish governments must work together to support shared economic growth and end spending that bypasses devolution.
She has called on the chancellor to relax her fiscal rules to enable investment in public services, to fully fund employer National Insurance contribution increases in the Scottish public sector, abandon welfare cuts, and fund the Acorn carbon capture project.
Ms Robison said: “The UK spending review is an opportunity for the UK Government to abandon some of its damaging policies such as cuts to welfare support for disabled people, to scrap the two-child benefit cap and to reinstate a universal winter fuel payment.”
She also said she hopes the chancellor will use the spending review to fully fund the increase in employers’ National Insurance contributions in the Scottish public sector.
Ms Robison added: “The UK Government should also use the spending review to empower the devolved administrations with more flexible fiscal rules that can enable investment in public services and we need an end to spending that bypasses devolution so we can direct funds to best meet local needs.
“We called on UK ministers to involve us at an early stage of this process, but since they’ve refused to provide us with any clarity on their spending priorities it’s clear that it’s business as usual for Westminster.
“We continue to call on the Treasury to use the spending review to change course, providing the funding we need to deliver for the people of Scotland.”
Ms Reeves’s spending review on Wednesday will confirm how much taxpayers’ money will be spent on public services such as the NHS, and how much money the UK Government will be investing in new projects.
The chancellor set out department budgets for 2025/26 back in her autumn statement - this week’s spending review will see her confirm the departmental spending allocations for the next three to four years.
Government borrowing grew to £20.2 billion in April, which is £1bn higher than the same month in 2024 and more than economists had been expecting.
Tax revenues also increased due to increases to employer National Insurance contributions - spending also increased due to increases to pensions and other benefits.
The UK Government has already previewed some of its spending decisions, such as raising defence spending to 2.5 per cent of GDP by 2027 and cutting the overseas aid budget.
Prime Minister Sir Keir Starmer has also vowed to reverse the Labour Party’s cuts to universal winter fuel payments, but has yet to set out the details on what this will look like.
Other areas have not yet been revealed, including vital spending on education and the NHS.
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