đź‘Ź Budget: Scotland

Westminster Hall

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The UK Labour Government’s 2024 Autumn Budget provided Scotland with the largest financial settlement in the history of devolution, amounting to £47.7 billion for 2025-26. This significant increase in funding aims to end austerity and boost Scotland’s public services, including a major investment in the NHS. However, opposition parties, particularly the SNP and Conservatives, criticized the Budget for imposing higher taxes on businesses and failing to support key Scottish industries like whisky and oil. The debate highlighted the tension between the need for fiscal stability and the concerns over the impact of new tax policies on Scotland’s economy.

Summary

  • The 2024 Autumn Budget provides the largest financial settlement for the Scottish Government in the history of devolution, with an additional ÂŁ1.5 billion this year and ÂŁ3.4 billion next year, totaling ÂŁ47.7 billion for 2025-26.

  • The Budget aims to support Scottish businesses and stimulate economic growth through investments in green freeports, city growth deals, Great British Energy, and hydrogen projects, along with improvements in connectivity and support for cultural sectors.

  • It includes tax reliefs for theatres, orchestras, museums, and galleries, and benefits the whisky industry with reduced fees and duty stamps. Local growth projects will receive ÂŁ1.4 billion over the next decade.

  • The Budget supports working people by increasing the national living wage, extending a fuel duty cut, maintaining the triple lock for pensions, and adjusting welfare benefits and universal credit payments to benefit lower-income families.

  • The Scottish National Party (SNP) has criticized the Budget, arguing it fails to address issues like the two-child benefit cap and national insurance rises. They believe it does not end austerity as claimed by the Labour government.

  • The Conservative party has also criticized the Budget, stating that it imposes tax increases that may negatively impact businesses, the whisky industry, and agricultural sectors, potentially stifling economic growth.

  • Labour MPs defended the Budget, emphasizing its focus on ending austerity, promoting growth, and increasing investment in public services, such as the NHS and education, while highlighting the SNP’s mismanagement of Scotland’s finances.

  • The debate showcased diverse views on the Budget’s impacts, with Labour asserting it as a step towards revitalizing Scotland’s economy and public services, while the SNP and Conservatives raised concerns about its effectiveness and fairness.

Divisiveness

The session displayed a high level of disagreement among participants. The debate on the Autumn Budget 2024’s impact on Scotland saw strong opposition from SNP and Conservative MPs, who criticized various aspects of the budget, including its effects on businesses, agriculture, the whisky industry, and public services. SNP members, in particular, expressed dissatisfaction with the budget’s implications for Scotland’s economy and public services, often clashing with Labour MPs who defended the budget’s benefits and criticized SNP governance. Labour MPs, on the other hand, strongly supported the budget, emphasizing its historic financial settlement and the end of austerity. The exchanges were often confrontational, with interruptions and pointed criticisms. The session included multiple instances of Members refusing to give way during speeches, indicating heightened tensions and disagreement. Overall, the session was marked by significant contention over the budget’s merits and effects.