SNP admits deficit of £5bn but not liability

THE Scottish Government last night revealed it is facing a staggering £5billion Budget blackhole in the next five years.

- By David Walker

The news prompted a furious backlash from political opponents who also highlighted the timing of the announcement — Holyrood breaks for summer recess today and does not reconvene until September.

Critics said the statement meant the average Scot would be "facing continued tax rises or cuts to public services" for years to come.

Meanwhile, STUC general secretary Roz Foyer described the news as "scything cuts to Scotland's public services".

Announcing the proposals, the Finance Secretary Shona Robison admitted she could not rule out compulsory redundancies amid plans to axe about 12,000 full-time public sector jobs.

Not surprisingly, she blamed Westminster for the country's chaotic financial position.

Burgeoning

Her much-delayed and often-cancelled "Fiscal Sustainability Delivery Plan" outlined a number of severe cuts and reforms to the public sector. But she has moved to protect the burgeoning benefits bill that will need an extra £2.1bn by 2030 in addition to the money coming from the Treasury.

SNP ministers have refused to follow the UK Labour Government and reform spiralling disability benefit payouts.

In order to fill this major deficit, Ms Robison is aiming to cut spending by £2.6bn per year, coming from a multi-year spending review and infrastructure investment plan.

There will be reductions to staff "by an average of 0.5% per year until 2030," as well as reform of public services and investment in prevention "to reduce demand on services in the medium to long-term".