TORY austerity cuts are going “too fast and too far” and now pose an “unnecessary risk” to public services, the finance ministers of Scotland, Wales and Northern Ireland have all warned.
In a blunt joint letter, the SNP’s John Swinney, Welsh Labour’s Jane Hutt and Arlene Foster of the DUP, also complained about the “unsatisfactory” way the Treasury had treated the three devolved administrations over recent budget changes.
Sent yesterday to Greg Hands, the Chief Secretary to the Treasury, the letter demands an urgent meeting between all four UK finance ministers ahead of the latest spending review.
Chancellor George Osborne has ordered Whitehall departments to draw up scenarios for real-term cuts of 25 and 40 per cent to save £20bn and eliminate the UK deficit by 2019-20.
David Cameron has promised to protect spending on health, defence and international aid, however this means a greater burden is borne by other departments.
Ministers have been told to come up with plans in October, with the detailed spending review due to be published on November 25.
Cabinet office minister Matthew Hancock has admitted 40 per cent cuts imply “radical change”.
The message from the three finance ministers outside Westminster follows a recent meeting between them in Edinburgh about looming financial problems.
In the letter to Hands, they say: “The three Devolved Administrations share the view that the UK Government’s on-going austerity plans… continue to reduce public spending in the UK too fast and too far, and present unnecessary risks to our public services.
“We also share the view that the UK Government’s plans were developed and communicated in an unsatisfactory way, with neither advance notice nor apparent consideration of the implications for the Devolved Administrations."
The letter warns the late spending review date of November 25 leaves little time for setting the devolved budgets for 2016-17, and calls for an update of the fiscal arrangements between the governments to reflect the recent devolution of taxes and borrowing powers.
Pointing out there has not been a meeting of Treasury ministers and devolved finance ministers since November 2013, the trio "propose an early quadrilateral meeting as soon as possible following the summer recess, to discuss current issues”.
Swinney added last night: “The UK Government’s broken austerity programme is reducing household income, damaging economic confidence and weakening public finances. That represents a clear threat to our public services.
“The recent Budget was misguided and deeply unfair, with disproportionate cuts falling on the poorest and most vulnerable sections of society while giving tax breaks to the better-off.
“The planned announcement of the UK Spending Review in late November leaves little time for setting our own budgets before 2016-17, presenting significant operational challenges and potentially constraining the time available for Parliamentary process.
“We therefore need early engagement to help us understand, as fully and as early as possible, the shape of likely funding settlements from the Spending Review.
“The Scottish Government will continue to argue against the failed austerity programme and speak up for the policies to promote economic growth, protect our public services and help the most vulnerable in society.”
A spokeswoman for HM Treasury said: “The government's long term economic plan is working: Britain was the fastest growing economy in the G7 in 2014 and 2015 and the deficit has been more than halved. However it is still too high - at just under 5 per cent it is one of the highest in the OECD - and it is no surprise to anyone that the government has clear plans to deal with it. The spending review will set out the savings needed for the country to live within its means.?”
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