The Deputy First Minister of Scotland, Jenny Gilruth, has warned that the UK Chancellor’s Autumn Budget will result in Scotland’s resource block grant being reduced by 1.3% in real terms in 2027-28.
This would amount to a reduction of around £550 million. Scotland’s capital budget will see a 1.5% real terms reduction in 2027-28, equivalent to around £100 million, stated Jenny Gilruth.
The UK Chancellor, John Healey, described his Autumn Budget as a ‘breathing space today, while delivering the big structural changes needed for the future.’
Healey has promised energy reform which will include asking Ofgem to abolish gas standing charges and move them to unit rates. In the short term a £100 Household Energy Payment for up to 20 million households in bands A to D in England, which the Scottish Government will match for households in Scotland.
Commenting on the one off payment Gilruth said:
“The Scottish Government will ensure that households in Scotland will benefit from the one-off £100 payment for energy bill support, however, it is clear that the measures announced today fall far short of the action which is required.
“Furthermore, this support does not come close to meeting the promises on which the UK Government came to office, including reducing energy bills by £300 which remain significantly higher than they were in July 2024. The UK Government has failed to meet the moment and has failed to keep its promise.”
The Scottish Government also hit out at the Healey budget for not ending austerity measures like the Bedroom Tax, which was put in place by the Tories and continued by Labour. In Scotland, the Bedroom Tax is not applied as the Scottish Government mitigates it using money from the Scottish Budget so that vulnerable Scots are not penalised for having an additional bedroom.
The Scottish Greens also criticised Healey’s Budget for not taxing the oil companies more by strengthening the windfall tax. Co-leader of the Scottish Greens Ross Greer said:
“This budget was Andy Burnham’s chance to follow through on his lofty promises, and he has fallen short at the first hurdle. At the very least, he needs to deliver on his alleged commitment to further devolution.
“That would let us make more decisions on issues like energy and taxation for ourselves here in Scotland. We can boost our economy, tackle skills shortages, and ease the unfair pressures hitting working-class families and communities the hardest.”
The cost of our energy bills was also to the fore in the reaction by the Scottish Liberal Democrats to the Autumn Budget. Leader of the LibDems, Alex Cole-Hamilton said:
“There are some sensible changes like removing standing charges, which have pushed up people’s bills even when they’re reducing their energy consumption, but it is far short of the Lib Dems’ essential energy guarantee which would have further cut bills for the average household.
“The Chancellor should have done more to bring energy bills down, slashed fuel duty and reduced VAT on our pubs, restaurants and cafes.”
Unsurprisingly, Leader of the Labour Party in Scotland, Michael Marra, fully supports the Autumn Budget. Labour is now the second party in the Scottish Parliament due to another resignation from Reform.
At a meeting with Orkney and Shetland Labour party members he said that the Autumn Budget was a good deal for Scotland and that there was a significant increase in funding for Scotland.
The Scottish Labour leader said that the UK had ‘huge levels of public debt and a constrained energy market.’ There was an ‘enormous task ahead’, he added.
For the Scottish Government Jenny Gilruth will be taking stock of what the the UK Chancellor’s Budget means for Scotland, commenting:
“We will now take the time to assess the full implications for Scotland …I will be announcing further details as part of the Scottish Budget on 3 December.”
Fiona Grahame
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