William Eichler 22 February 2019

Holyrood passes £42.5bn budget but warns of Brexit recession

Holyrood has approved the 2019-20 budget which will see £42.5bn invested into public services and the economy — but warned Brexit could push Scotland into recession.

Finance Secretary Derek Mackay said the budget provides essential funding for health and care services, education, local government and economic investment.

He also said the new budget ensured that 55% of income taxpayers in Scotland pay less tax than those earning the same income in the rest of the UK.

However, he warned that Scotland’s economy was being put at risk by Brexit ‘uncertainty’.

‘Today’s chief economist report shows that a ‘No Deal’ Brexit would be expected to push the Scottish economy into recession during 2019, with the potential for the economy to contract by between 2.5% and 7% by the end of 2019,’ Mr Mackay said.

‘Such an economic slowdown would risk a rise in unemployment from its current record low, with up to 100,000 more people in Scotland made unemployed.

‘This would be an economic shock on the scale of the 2008 financial crisis, and this cannot be allowed to happen.’

Mr Mackey called on the UK Government to rule out a ‘No Deal’ Brexit and extend the Article 50 process.

‘As a responsible Government we are also continuing — and indeed intensifying — our work to prepare for all outcomes as best we can,’ he continued.

‘However, while we will do everything we can to prepare, we will not be able to mitigate all of the impacts of the UK Government’s Brexit approach.

‘This budget safeguards Scotland as best we can, using all the powers and resources at our disposal with a clear focus on our priorities as a nation.’

SIGN UP
For your free daily news bulletin
Highways jobs

Director of Public Health

Royal Borough of Greenwich
Up to £131,210
The Public Health department is at the heart of the council’s business. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Head of Regeneration and Growth

Plymouth City Council
£68,387 - £74,411 (MFS and relocation available, pay award pending)
This is a unique opportunity to lead our award-winning development team and directly deliver hundreds of millions of pounds of projects. Plymouth, Devon
Recuriter: Plymouth City Council

Director of Adult Social Care

Wiltshire Council
£119,390 - £127,137
Join us as the Director of Adult Social Care and make a real difference to people’s lives. Wiltshire
Recuriter: Wiltshire Council

Assistant Director Planning, Performance & Engagement

East Sussex County Council
up to £97,700
With strong local communities, unspoilt countryside and vibrant coastal towns, East Sussex offers an exceptional quality of life to many. East Sussex
Recuriter: East Sussex County Council

Director of Finance & Commerce

Lancashire County Council
Up to £114,339
You will play a critical role in driving the organisation through complex change and innovation. Lancashire
Recuriter: Lancashire County Council
Linkedin Banner