Skip to main content
Chancellor risking ‘austerity doom loop,’ warns Scottish TUC
Protesters outside 11 Downing Street as Chancellor Rachel Reeves prepares to deliver the spring statement in London, March 26, 2025

THE Scottish government is facing cuts in the cash it receives from Westminster as a result of Chancellor Rachel Reeves’s decision to reduce welfare spending, MSPs were warned today.

Holyrood Finance Secretary Shona Robison said she has received confirmation from the Treasury that “there will be cuts to our block grant from the welfare cuts from 2026-27 onwards.”

Her comments came shortly after Ms Reeves used her spring statement in the Commons to confirm a £6.4 billion cut in the welfare budget.

With much of social security now devolved to the Scottish government, Ms Robison said its funding now faces being reduced.

She condemned the British government for its “repeated attacks on some of the most vulnerable members of society,” warning that there is a risk of “creating a vicious cycle of reduced funding and increased demand” for welfare.

Scottish Green co-leader Lorna Slater accused Labour of choosing “super-charged austerity.” 

Labour MP for Alloa and Grangemouth Brian Leishman also vowed opposition, branding the plans “horrendous.”

He told the Star: “The Labour Party should be true to its values and build a caring and compassionate society that looks after people.

“We should reject austerity, because another way is possible.”

“The Chancellor had choices,” said Scottish TUC genral secretary Roz Foyer. “She could have increased taxes on corporations or the wealthy.

“Instead, she has rushed through deeply damaging cuts to support for disabled people.

“This is a statement that transfers suffering and risk to workers and the vulnerable in society, while big business and the wealthiest get off scot-free.  

“Putting fiscal rules above human dignity is not progressive nor economically astute.

“It is deeply damaging and risks repeating the austerity doom loop of her predecessors.”

The 95th Anniversary Appeal
Support the Morning Star
You have reached the free limit.
Subscribe to continue reading.
More from this author
Scottish Money
Scotland / 2 June 2025
2 June 2025
Walkers take an evening stroll near Gretna, Dumfries and Gal
Scotland / 30 May 2025
30 May 2025
Similar stories
Protesters outside the Treasury this evening
Britain / 25 March 2025
25 March 2025
Chancellor Reeves' planned public spending cuts will ‘open the door’ for Reform UK, McDonnell warns as campaigners get set to rally outside the Treasury
Chancellor of the Exchequer Rachel Reeves attending the Make
Britain / 5 March 2025
5 March 2025
Chancellor of the Exchequer Rachel Reeves at the Confederati
Britain / 22 January 2025
22 January 2025