By Andy Philip, Political Reporter, Press Association Scotland
Scotland will lose GBP900 million from its next budget, according to
details announced by the UK Government today.
The figure is lower than feared by Scottish Finance Secretary John
Swinney, who had expected to lose about GBP1.1 billion from the block
grant.
Details emerged in Chancellor George Osborne's Comprehensive Spending
Review (CSR), described as the biggest package of cuts since the Second
World War.
Looking across the four-year review period, Scottish spending will be
reduced by about 10% in real terms, while the UK total is cut by about
11%.
The Scottish total includes a 7% cut in resource spending and 38% cut in
capital spending, according to the Treasury.
Scottish Secretary Michael Moore said: "Scotland will play its part in
helping reduce the huge deficit we inherited from the last Government.
"Compared to reductions in budgets of other government departments, this
is a sensible settlement for Scotland as we get to grips with the
challenges we face."
The Treasury said spending in Scotland will drop from GBP28.2 billion this
year to GBP27.3 billion in 2011-12, then changing annually to GBP27.6
billion, GBP27.5 billion and GBP27.7 billion.
The UK Government's Scotland Office - which will have to meet its own
cuts of 25% - said the reduction to the Scottish grant is "better than
expected" by the SNP administration's independent budget review, which
predicted a 12.3% cut.
The office also said resource spending will rise by nearly GBP600 million
in cash terms over the CSR period.
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