London Daily

Focus on the big picture.
Saturday, May 30, 2026

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
Japanese Technology Firm Fujitsu Launches Advanced Artificial Intelligence Tool for Corporate Disclosures
South Africa Officially Launches Nationwide Campaign for Highly Contested Local Government Elections
United Kingdom Commits Additional Funding for Unexploded Ordnance Clearance in Laos
Singapore Announces Stringent New Greenhouse Gas Regulations for Commercial Cooling Systems
Cambodia and Thailand Hold High-Level Border Security Talks at United Nations Headquarters
Myanmar Military Government and China Sign Major Agreement to Upgrade Media and Cultural Cooperation
Knife Attack at Swiss Train Station Leaves Three Injured in Suspected Act of Domestic Terrorism
Transnational Extortion Gang Threatens Canadian Police With Army of One Thousand Armed Operatives
Australia Imposes Forty-Two-Day Quarantine on Cruise Ship Passengers Following Deadly Hantavirus Outbreak
International Monetary Fund Unlocks Seven Hundred Million United States Dollars for Sri Lanka Following Economic Reforms
Australia Launches Record One Point Four Billion Dollar Lawsuit Against Chemical Giant 3M Over Contamination
China and Canada Foreign Ministers Meet in Ottawa in Effort to Stabilize Strained Diplomatic Ties
Indonesia Demands Urgent United Nations Security Council Reform Amid Escalating Global Conflicts
Extreme Weather Patterns Trigger Severe Drought in Madagascar and Destructive Flooding in East Africa
Indian State of Karnataka Faces Political Upheaval as Chief Minister Siddaramaiah Abruptly Resigns
Philippines and Japan Reaffirm Defense Ties as Crucial for Indo-Pacific Regional Stability
Norway Joins French Nuclear Deterrence Initiative in Major Shift for European Security Architecture
Global Critical Mineral Alliances Expand as Western Nations Move to Counter Chinese Supply Dominance
United States Imposes Fifty Percent Tariffs on Mexican Steel and Aluminum Ahead of Trade Pact Review
European Union and China Head Toward Major Trade Conflict Over Clean Technology Exports
United States Economic Growth Severely Downgraded to One Point Six Percent as Stagflation Fears Mount
World Health Organization Warns Central African Ebola Epidemic is Outpacing Containment Efforts
United States Treasury Department Conditions Sanctions Relief on Reopening of the Strait of Hormuz
Iranian Air Defenses Intercept and Destroy United States Military Drone Over Bushehr Province
Iranian Armed Forces Launch Ballistic Missiles Toward Unspecified Targets Prompting Regional Condemnation
United Nations Secretary-General Warns Global Order Facing Highest Level of Conflict Since 1945
Israel Issues Sweeping Evacuation Orders in Southern Lebanon Amid Intensified Hezbollah Conflict
Russia Announces Systemic Military Strikes Targeting Ukrainian Defense and Energy Infrastructure
United States and Iranian Negotiators Reach Draft Agreement to Extend Ceasefire and Resume Nuclear Talks
United Nations Security Council Deeply Divided Over United States Capture of Venezuelan President
US and Iran Exchange Direct Military Strikes Amid Fragile Gulf Ceasefire
World Health Organization Warns of Catastrophic Ebola Outbreak in DR Congo
Russia Threatens New Wave of Strikes on Ukrainian Infrastructure and Embassies
Scientists Warn Atlantic Ocean Currents Could Collapse Faster Than Projected
Anthropic Reaches $900 Billion Valuation in Historic AI Funding Round
Washington Imposes Crippling Sanctions on Iranian Maritime Authority
Japan and the Philippines Initiate Strategic Intelligence-Sharing Pact
Microsoft Deploys Autonomous Computer-Using AI Agents to Global Markets
Anthropic Secures $45 Billion Compute Infrastructure Agreement With SpaceX
U.S. Director of National Intelligence Resigns Amid Administration Shakeup
Micron Technology Crosses Trillion-Dollar Valuation Amid Unprecedented Hardware Demand
Canada and Germany Finalize Historic Long-Term LNG Export Agreement
China Expands International Travel Restrictions on Domestic AI Researchers
Japan Approves Sweeping Overhaul of National Intelligence Apparatus
Global Airlines Scramble Logistics as Middle East Airspace Remains Fractured
Japan's Naphtha Imports Plunge 47 Percent Amid Strait of Hormuz Closure
Global Crude Prices Retreat Below $96 as Gulf Tensions Momentarily Ease
Generative AI Outperforms Human Baselines in Landmark Global Creativity Study
NASA Partners With Private Aerospace to Unveil Permanent Lunar Base Architecture
South Korean Equity Markets Surge on Next-Generation Memory Chip Frenzy
×