A black hole exceeding £1 billion has been revealed at the heart of Scotland’s budget as a result of slow economic growth under the SNP.
The Scottish Fiscal Commission revealed today that budgets were being adjusted to account for Scotland now collecting its own income tax.
That means the Scottish Government budget is more dependent on the country’s own economic performance.
As a result, £229 million has been wiped off next year’s budget, a further £608 million from the 2021-22 accounts, and £188 million from the following year.
The report also revealed wage growth for Scots would be worse over coming years.
Shadow finance secretary Murdo Fraser said the poor economic performance under the SNP would mean more tax rises, increased borrowing or the slashing of public services.
Scottish Conservative shadow finance secretary Murdo Fraser said:
“This is a devastating blow for Scotland’s finances totalling more than £1 billion.
“For years the SNP has been warned about the poor economic performance for which it is responsible, and now we see the consequences of that.
“This is disastrous news for public services as well as hardworking Scots who may be in line for even more of their payslip being seized by the SNP government.
“We already knew Scotland’s growth and productivity was worse than the rest of the UK, and that people north of the border receive comparatively lower pay.
“Now we learn that’s all set to continue for the years ahead.
“The SNP has the control to turn this around, but has instead obsessed about constitutional matters, bringing uncertainty and division to our economy.
“The hardworking people of Scotland are now reaping what the nationalists sowed.”
Notes to editors:
To see the full report, visit:
The key table can be seen here: