90-minute warning has hurt SNP’S relations with Labour
The Chancellor has claimed there is a £22 billion black hole in the UK government’s finances – a revelation that has become a clear row with the SNP.
Rachel Reeves announced a raft of measures to address the overspend on Monday, saying the money was “hidden” by the Conservatives.
However, this has now seen Labour come under fire for a pre-election pledge that promised no austerity under the party. One of the measures announced by Ms Reeves includes stopping winter fuel payments to pensioners not on benefits. It is a decision that will see the Scottish Government forced to fund the payment themselves or follow suit.
Putting aside the merits of the policy or need to take tough decisions, the main issue stems with public finance minister Ivan Mckee’s claim the Scottish Government was only told 90 minutes before the decision was announced. Mr Mckee labelled this as “concerning given Labour’s talk about resetting the relationship with Holyrood”.
On the face of it, yes, such a move would be problematic, and damage a relationship Sir Keir Starmer has been so keen to focus on. Within hours of becoming Prime Minister, Sir Keir headed to Scotland to meet with the First Minister. His party won 37 of 57 Scottish seats at the Westminster election and he’s given an array of Scottish Labour MPS ministerial roles.
The message has been “Brand Scotland”, and Scotland being at the heart of government. Now, the SNP cry betrayal. However, it is worth noting, just because Mr Mckee says something, that doesn’t mean it’s true. That goes the same for the UK government, with Scotland Secretary Ian Murray claiming they actually did get in touch with the Scottish Government earlier, but were told the person who deals with this issue was “on holiday”.
Mr Murray said: “I understand that the Chief Secretary to the Treasury tried to contact his opposite number in the Scottish Government yesterday and she was unavailable, I think on holiday. So these calls were made, they were made at the appropriate time.”
Is this true? Is Mr Mckee’s claim? Unfortunately, it does not matter. The SNP, who still have months to adapt to the policy, have something they can use to reinforce their attack lines that Labour do not value Scotland or respect devolution. It’s true enough and that’s politics.
The same is said for the criticism from the SNP over the spending cuts, with Mr Mckee saying Labour “absolutely should have known” about the need to make them.
Labour fiercely deny this, explaining this relates to a £22bn in-year overspend by the previous government the Tories hid from the Office for Budget Responsibility. They argue it is not the same as the figures discussed in the election, and the Scottish Government will not receive a smaller settlement as a result of the announcement. Ministers believe they are totally in the right, the Institute for Fiscal Studies verdict on the finances validates them, and these decisions have to be made.
That doesn’t mean they aren’t worried, with MPS now being briefed to stress “this isn’t austerity”. For both administrations, they will hope it is their version of the truth that people believe.