Swinney warns Starmer and Reeves of ‘risks’ if Budget fails to end austerity

John Swinney has challenged the UK Government to end its “failed policy of austerity” – with the Scottish First Minister insisting this is the change that people are “desperately seeking”.

The SNP leader went on to warn both Prime Minister Sir Keir Starmer and his Chancellor Rachel Reeves that without “urgent action to rectify the damage caused by austerity” there was a “very clear risk that community cohesion across the United Kingdom could be permanently damaged”.

He spoke out ahead of a visit to London on Wednesday, which is taking place a week before Ms Reeves will deliver her Budget.

Mr Swinney stressed: “UK Ministers must recognise how people are feeling and deliver a budget that responds to their concerns.

“Failure to do so will further damage public trust and result in people concluding the system is broken.”

As a result, the Scottish First Minister said Sir Keir and Ms Reeves “must ensure this Budget delivers the change people are desperately seeking by putting an end to the failed policy of austerity”.

The SNP leader, speaking ahead of an event at the Institute for Government, added: “People need to believe government is on their side and working to deliver a better future by raising our collective economic prospects, improving living standards, reducing energy bills and providing sustainable public services.

“We know times of economic hardship fuel a sense of division and without urgent action to rectify the damage caused by austerity, there is a very clear risk that community cohesion across the United Kingdom could be permanently damaged.”

With concerns that a possible hike in income tax by the Chancellor could see money cut from the Scottish budget, Mr Swinney said he was “committed to working with the Chancellor to ensure the Budget does not impact public finances in Scotland, particularly the implications of any major policy changes on devolved taxation and social security”.

A UK Government spokesperson said: “The Chancellor has set out the context for the Budget, recognising global and long-term economic challenges. It will continue to build the strong foundations to secure Britain’s future.”