London Daily

Focus on the big picture.
Saturday, Nov 01, 2025

Tough spending calls needed, says finance secretary Forbes

Tough spending calls needed, says finance secretary Forbes

Scotland's economy is in a "very difficult position" which will force tough spending decisions in the coming months, the finance secretary has said.

Kate Forbes said tackling the cost-of-living crisis while still feeling the effects of the pandemic made her upcoming financial review critical.

It came after the Institute for Fiscal Studies (IFS) warned of an estimated £3.5bn funding gap by 2026/27.

Opposition parties have criticised the government's spending "mismanagement".

The IFS has said the government could be forced to choose between axing key policy priorities or increasing taxes to tackle the deficit.

The shortfall is the equivalent of £640 per person and the IFS warned it could rise even higher.

Ms Forbes' spending review on Tuesday will be the first time a multi-year plan has been announced in more than a decade.


'Need to be canny'


The finance secretary said she will set out plans to focus public sector funds "to achieve ambitions to tackle child poverty, reach net zero and deliver sustainable services for the future".

She said: "These are challenging times, and we need to be canny with our spending, but I'm confident that if we work together we can get through this cost-of-living crisis and still achieve our ambitions.

"We face a very difficult financial position over the next few years with funding increases below inflation levels and the challenge of recovering from the pandemic without the financial tools available to every other government in the world.

"That means that while the spending review is not a budget, it will include difficult decisions to ensure we can really focus on supporting households and services at this time."


The Scottish government is using its new welfare powers for more generous benefits than in the rest of the UK.

It faces heath service backlogs coming out of the Covid crisis, and income tax - although raising rates for higher Scottish earners - is generating less revenue than expected.

So the Institute of Fiscal Studies warned on Friday that either taxes will have to go up, significant cuts will be required or, with tightly constrained borrowing powers, Kate Forbes could simply hope that Westminster will deliver more funding than it has set out so far.

This week's review of non-capital spending until 2026 to 20227, the end of this Parliamentary term, should show which of these ministers are choosing.

In setting expectations, Kate Forbes today warns the difficult financial position will require difficult decisions, with a focus on protecting households and services.

But opposition parties have condemned the Scottish government's handling of the economy.

Scottish Conservatives finance spokesperson Liz Smith MSP said: "It appears Kate Forbes' response to warnings from the IFS of a £3.5bn black hole in the SNP government's spending plans is to stick her fingers in her ears.

"Years of economic mismanagement by the SNP - including squandering taxpayers' cash on failed public sector projects like the ferries fiasco - has left Scotland's finances in a perilous state. Yet there is no acknowledgement of this in Ms Forbes' pre-spending review spin.

"The reality is Scots face big public spending cuts, huge tax rises or a combination of both if the SNP are to bridge the huge funding gap they've created."

Daniel Johnson, Scottish Labour's finance spokesperson, said the IFS assessment "laid bare" the price of "SNP economic failure".

He said: "It is clear that the spending review will reveal the heavy cost of the SNP economic mismanagement.

"You can hear them trying to get the excuses in now, but the truth is that during a cost-of-living crisis, Scots will pay for nationalists prioritising the constitution over the economy.

"This will be counted in lost jobs, cuts to public services and few will be able to forgive the SNP for it."

Newsletter

Related Articles

0:00
0:00
Close
Glamour UK Says ‘Stay Mad Jo x’ After Really Big Rowling Backlash
Former Prince Prince Andrew Faces Possible U.S. Congressional Appearance Over Jeffrey Epstein Inquiry
UK Faces £20 Billion Productivity Shortfall as Brexit’s Impact Deepens
UK Chancellor Rachel Reeves Eyes New Council-Tax Bands for High-Value Homes
UK Braces for Major Storm with Snow, Heavy Rain and Winds as High as 769 Miles Wide
U.S. Secures Key Southeast Asia Agreements to Reshape Rare Earth Supply Chains
US and China Agree One-Year Trade Truce After Trump-Xi Talks
BYD Profit Falls 33 % as Chinese EV Maker Doubles Down on Overseas Markets
US Philanthropists Shift Hundreds of Millions to UK to Evade Regulatory Uncertainty in Trump Era
Israeli Energy Minister Delays $35 Billion Gas Export Agreement with Egypt
King Charles Strips Prince Andrew of Titles and Royal Residence
Trump–Putin Budapest Summit Cancelled After Moscow Memo Raises Conditions for Ukraine Talks
Amazon Shares Soar 11% as Cloud Business Hits Fastest Growth Since 2022
Credit Markets Flooded with More Than $200 Billion of AI-Linked Debt Issuance
U.S. Treasury Secretary Scott Bessent Says China Made 'a Real Mistake' by Threatening Rare-Earth Exports
Report Claims Nearly Two Billion Dollars in Foreign Charity Funds Flowed into U.S. Advocacy Groups
White House Refutes Reports That US Targeting Military Sites in Venezuela
Meta Seeks Dismissal of Strike 3’s $350 Million Copyright Lawsuit
Apple Exceeds Forecasts With $102.5 Billion Q3 Revenue Despite iPhone Miss
Israel's IDF Major General Yifat Tomer-Yerushalmi Admits to Act Amounting to Aiding Hamas During Wartime (Treason)
Shawbrook IPO Marks London’s Biggest UK Listing in Two Years
UK Government Split Over Backing Brazil’s $125 Billion Tropical Forest Fund Ahead of COP30
J.K. Rowling Condemns Glamour UK Feature of Nine Trans Women as 'Men Better at Being Women'
King Charles III Removes Prince Andrew’s Titles and Orders His Departure from Royal Lodge
UK Finance Minister Reeves Releases Email Correspondence to Clarify Rental-Licence Breach
UK and Vietnam Sign Landmark Migration Deal to Fast-Track Returns of Irregular Arrivals
UK Drug-Pricing Overhaul Essential for Life-Sciences Ambition, Says GSK Chief
Princesses Beatrice and Eugenie Temporarily Leave the UK Amid Their Parents’ Royal Fallout
UK Weighs Early End to Oil and Gas Windfall Tax as Reeves Seeks Investment Commitments
UK Retail Inflation Slows as Shop Prices Fall for First Time Since Spring
Next Raises Full-Year Profit Guidance After Strong Third-Quarter Performance
Reform UK’s Lee Anderson Admits to 'Gaming' Benefits System While Advocating Crackdown
United States and South Korea Conclude Major Trade Accord Worth $350 Billion
Hurricane Melissa Strikes Cuba After Devastating Jamaica With Record Winds
Vice President Vance to Headline Turning Point USA Campus Event at Ole Miss
U.S. Targets Maritime Narco-Routes While Border Pressure to Mexico Remains Limited
Bill Gates at 70: “I Have a Real Fear of Artificial Intelligence – and Also Regret”
Elon Musk Unveils Grokipedia: An AI-Driven Alternative to Wikipedia
Saudi Arabia Unveils Vision for First-Ever "Sky Stadium" Suspended Over Desert Floor
Amazon Announces 14 000 Corporate Job Cuts as AI Investment Accelerates
UK Shop Prices Fall for First Time Since March, Food Leads the Decline
London Stock Exchange Group ADR (LNSTY) Earns Zacks Rank #1 Upgrade on Rising Earnings Outlook
Soap legend Tony Adams, long-time star of Crossroads, dies at 84
Rachel Reeves Signals Tax Increases Ahead of November Budget Amid £20-50 Billion Fiscal Gap
NatWest Past Gains of 314% Spotlight Opportunity — But Some Key Risks Remain
UK Launches ‘Golden Age’ of Nuclear with £38 Billion Sizewell C Approval
UK Announces £1.08 Billion Budget for Offshore Wind Auction to Boost 2030 Capacity
UK Seeks Steel Alliance with EU and US to Counter China’s Over-Capacity
UK Struggles to Balance China as Both Strategic Threat and Valued Trading Partner
Argentina’s Markets Surge as Milei’s Party Secures Major Win
×