SCOTLAND'S Finance Secretary has pledged there will be no "Tory pay freeze" in Scotland.

Kate Forbes insisted "austerity will never be our answer" as she addressed the SNP's annual conference, which is being held virtually. 

It comes after Chancellor Rishi Sunak announced a pay freeze for at least 1.3 million public sector workers as he outlined his Spending Review.

But he said frontline NHS workers and those earning less than £24,000 will receive pay increases next year.

Ms Forbes said: "Last week, the Chancellor’s first actions to manage our public finances was to freeze pay for our key workers and cut international aid.

"It’s the same Conservatives, with the same ideology."

She added: "My budget in January will build on the steps we have taken to date.

"I'll use it to support businesses, to build a strong economy and to fund the services we need.

"But a strong economy also relies on strong public services.

"That’s why austerity will never, ever be our answer.

"That’s why there will be no Tory pay freeze in Scotland."

Elsewhere, Ms Forbes said she will "push the powers of devolution as far as they can go, to build a better, fairer economy". 

She said: "But I can't hide the limitations on our options. 

"With no meaningful borrowing powers and limited powers over tax, devolution means UK spending decisions are still the biggest factor in deciding the size of the Scottish budget.

"For the second year in a row, the UK Government has shown complete disregard for devolution by delaying their budget to March, saying it's far too uncertain a time to plan ahead. 

"Well Scottish finance secretaries are well used to balancing the books with one hand tied behind their backs. 

"But this year, of all years, I'm being asked to do it blindfolded as well."

She said the Scottish budget will include a "five-year pipeline of investment in infrastructure to boost economic growth". 

She said: "Not pet projects like a Boris bridge to Northern Ireland, but the essential investment that our economy and our public services needs."

The Finance Secretary said an additional £10 million this year will help an additional 2,000 small and medium-sized enterprises "reap the benefits of investment in digital". 

Highlands and Islands Enterprise will be given £800,000 to extend its Digital Enablement Grant scheme to reach more businesses.

The Data Lab will also receive £1 million to help businesses to invest in more advanced technologies such as data analytics and artificial intelligence.