Welfare squeeze to pay for tax cuts would be devastating, say SNP

Any cut in public sector budgets to pay for UK tax cuts would be devastating for Scotland's public services, the Scottish government has said.

The UK government's mini-budget included £45bn in cuts funded by government borrowing.

It revealed the government expects its two-year scheme to fix energy prices will cost £60bn in the first six months.

That led to suggestions that cuts could be made in welfare and public services.

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But the Scottish government has warned that would compound the "folly" of tax cuts only benefiting the rich.

The mini-budget announcements made by Chancellor Kwasi Kwarteng sparked days of turbulence in financial markets.

The pound fell to a record low against the US dollar on Monday, although it has since recovered.

Prime Minister Liz Truss has admitted she should have "laid the ground better" for the announcements.

The PM told the BBC's Laura Kuenssberg she had "learned from that", but she was confident her tax cutting package would boost economic growth.

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However, Scotland's social justice minister Shona Robison said the plans which have already been outlined would increase inequality.

She told BBC Scotland's Sunday Show: "We had a mini-budget that has caused economic crisis. It has put people's homes at risk because of interest rates going up.

"People are worried about putting food on their tables and paying energy bills.

"And we're now hearing that we may end up seeing cuts to public services to pay for all of this folly.

"As a government we will work to mitigate some of the worst aspects of this, but we can't do all of that and the Tory government really has to think again.

"If public sector budgets are cut, that will be devastating for the budget of the Scottish government and it will hamper what we can do.

'Uncharted waters'

Ms Robison added: "If our budget is cut by the Tory government, that will mean difficulties across all of our public services, including public sector pay. But we have been trying through the resources we do have to give fair offers to public sector workers.

"We're trying to do what we can, but if our budget is cut then we will be in really uncharted waters."

Scottish Conservative MP, and former party vice-chairman, Andrew Bowie dismissed speculation about the public sector paying the price for top rate income tax cuts.

Speaking from Birmingham as the Tory party conference got under way, he said: "Cutting welfare to pay for tax cuts would not be the right thing to do, but that's not what is being laid in front of us.

"We are going to examine the plans. The chancellor has made clear he is going to be setting out more detail on what he wants to achieve. The prime minister will be doing the same this week and in the weeks ahead.

"Then every Conservative MP will have to examine those plans and determine whether they support them or not. That's exactly what the public expect from us and that's exactly what we're gong to do."