As expected, this week’s Autumn Statement was a sober affair with the Chancellor predicting slower growth, higher inflation, weaker tax receipts, and higher borrowing. Gone was any target to eliminate the deficit, and there will certainly be no surplus in this parliament. The OBR estimates that growth over the forecast period will be 2.4% lower because of the UK’s vote to leave the EU.
It’s therefore not surprising that the Scottish Government responded by calling this the “Brexit bombshell” arguing that the Chancellor has now laid bare the costs of leaving the EU while failing to set out an adequate plan to tackle this threat. Finance Secretary Derek McKay also lamented the “missed opportunity to end austerity” and raised serious concerns about a lack of support for public services, in particular the NHS.
The main headline for Scotland in the Chancellor’s statement was £800m in infrastructure ‘Barnett consequentials’ over the entire parliament –so a relatively modest £200m or so a year. The Scottish Government will set out how it will spend this in its December budget announcement but has been quick to point out that there remains a cut of about 8% in capital spending in real terms over the period from when the Conservatives entered Downing Street in 2010.
One announcement that should please Scottish Ministers was the plans to take forward a city deal for Stirling and to consider proposals for a deal with the Tay cities. This would mean all Scottish cities have the opportunity to agree a city deal and Economy Secretary Keith Brown issued a call on Monday for the UK Government to commit to these deals.
It’s been a busy week in the Scottish Parliament for Transport and Islands Minister Humza Yousaf. With opposition politicians continuing to pile pressure on the government over Scotrail’s performance, Mr Yousaf was forced to make an emergency statement to Holyrood. The Minister echoed the First Minister’s earlier apology to rail passengers affected by disruption and, while admitting that ScotRail's performance was not "up to scratch," he maintained that it was better than the UK average. This issue also dominated FMQs when the First Minister said she will consider freezing train fares next year in response to proposals from Labour.
Humza Yousaf was back in the chamber on Thursday to lead a debate on Scotland’s islands in which he outlined the government’s plans to bring forward an islands bill and a National Islands Plan. Meanwhile in a boost for wildlife campaigners, Environment Secretary Roseanna Cunningham has announced that she is minded to allow beavers to remain in Scotland following their controversial reintroduction.
Tory MSP Douglas Ross got into some trouble this week when he missed a justice committee meeting in order to work as an assistant referee at the match between Sporting Lisbon and Real Madrid in Portugal. Fellow committee member, SNP MSP Ben Macpherson, was not impressed and has called on Ruth Davidson to “give him the boot from her frontbench team."