Devolved Budgets

Five months into Starmer’s government, the broken promises are clear. Labour continues to shortchange pensioners, cutting winter fuel payments while claiming to offer “change”.

Wednesday this week sees publication of the next Scottish budget for 2025/26.

We know from independent analysis by the House of Commons Library that Scotland’s block grant has fallen as a percentage of UK government spending from 8.2% in 2015/16 to 7.6% this year – meaning Scotland is getting a lower share of the UK spending pie than at any point in the last decade.
 
The research highlights that, in a like-for-like comparison, the Scottish Government’s block grant has suffered a real-terms cut in every year since 2020, and is now worth £6.4billion less than it was in 2020/21 – a drop of 12.7%.  

This like-for-like comparison is before adjustments are made to reflect the recent devolution of tax powers and welfare responsibilities, it shows the declining spending power of the Scottish Government over time as a result of Westminster cuts.
 
The Scottish Government’s block grant will now be Increased following the UK budget decisions to increase spending across the public sector in England.  Which means the Scottish Government is set to receive an uplift in cash; £3.4 billion for 2025/26 via the Barnett Formula. When compared to the 2024/25 budget set out by the previous UK government in the spring, it is a £4.3bn or almost 10% increase.  Although significant questions remain regarding the impact of National Insurance costs.
 
This uplift reversing recent trends is welcomed, however it still leaves Scotland receiving less funding than was the case in 2020.

The upcoming Scottish budget exposes the fundamental flaws of devolved governance. Despite Westminster’s constraints, the SNP remains committed to protecting Scottish families through critical policies like free prescriptions, tuition-free education, and substantial childcare support.

Already announced for the Scottish budget will be introduce a new Pension Age Winter Heating Payment, yet another necessary mitigation of Westminster’s detrimental policies.

As Octopus Energy CEO Greg Jackson reveals, Scotland remains a paradox – energy-rich but powerless, trapped in a centralized pricing system that penalizes local communities.

“If you don’t fight for what you want, don’t cry for what you lose.”

It has been said “If you don’t fight for what you want, don’t cry for what you lose.”  For Scotland to truly flourish, we need more than the ability to soften the impact of Westminster’s worst decisions. Mitigation is not enough. Independence offers the opportunity to shape and change policies that reflect Scotland’s priorities and aspirations, rather than settling for compromises within a system that doesn’t serve its people.

The message is clear: Scotland needs independence. Not just as a political dream, but as an economic necessity.

Each budget cycle reinforces one truth: Scotland needs the power to control its own destiny.


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Hello, I’m Martyn Day.

Martyn Day

Political commentator, independence campaigner, anti-poverty and human rights champion.

Former SNP MP for Linlithgow and East Falkirk (2015-2024), West Lothian Councillor (1999-2015)

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