Skip to main content

Language: English / Gàidhlig

Loading…

Seòmar agus comataidhean

Question reference: S6W-29955

  • Date lodged: 17 September 2024
  • Current status: Answered by Shona Robison on 2 October 2024

Question

To ask the Scottish Government what its response is to the Scottish Retail Consortium’s suggestion in its Retail industry recommendations for the 2025-26 Scottish Budget paper, that spending restraint rather than tax rises should form the bulk of the measures to plug the projected gap in devolved government finances.


Answer

Prolonged Westminster austerity, the economic damage of Brexit, a global pandemic, the war in Ukraine, and the cost of living crisis have all placed enormous and growing pressure on the public finances.

For example, Brexit has reduced the size of the UK economy by 2.5 per cent, equating to a £2.3 billion annual cut in revenue in Scotland.

Decisions for 2025-26 will be published as part of the 2025-26 Scottish Budget on 4 December. Scottish Income Tax policy for 2025-26 will be announced during the annual Budget process.