The Scottish Government has condemned the spring budget as a “betrayal of public services” after failing to get any more money for investment and house-building.

Increased spending on the NHS and schools in England means Holyrood will get another £295million for day-to-day spending under the Barnett funding formula in 2024/25.

However Chancellor Jeremy Hunt chose not to give SNP ministers any more capital funding or “financial transactions”, which can be used for construction and maintenance work.

It means the Scottish Government is set to press ahead with hugely controversial cuts to the affordable house-building programme despite a housing emergency.

SNP finance secretary Shona Robison cut almost £200m from the programme in her recent 2024/25 budget after cuts to her capital funding and financial transactions finance.

The latter allows housing associations to borrow to invest in social homes.

Read more: Douglas Ross 'deeply disappointed' by Hunt windfall tax extension

However Ms Robison gave all £176m of the financial transactions funding available to her to the Scottish National Investment Bank for investing in business instead.

Facing savage criticism from housing charities, she said on Sunday that her top priority would be reversing the housebuilding cut if the situation improved in the budget.

However the budget left the capital funding and financial transactions unchanged.

Chief Secretary to the Treasury Laura Trott said all the extra funding for Holyrood was “resource”, meaning for spending on day to day costs such as wages.

She added: “The Scottish Government can convert that into capital if they so wish.”

Ms Robsion, who is also deputy First Minister, said: “Today’s UK Spring Budget is nothing short of a betrayal of public services across the UK. 

“Our hope had been the Chancellor would have eased pressures on services - not least by providing more funding for capital. 

“This would have helped support our NHS and the delivery of more affordable housing, but it would also have created jobs and economic growth, as well as helping secure a just transition to net zero.

“When more support is desperately needed for public services and infrastructure, for greater cost of living measures, and for money to aid our efforts to reduce carbon emissions – Scotland has been badly let down by the UK Government.

“Today’s statement provides not a single penny more for capital funding. 

“And the Barnett consequentials from health that were signalled by the Chancellor are actually less than the in-year health consequentials of 2023/24 and less than what is needed to address the pressures we face. 

“I can guarantee that this Scottish Government will not be passing on this UK Government cut to our NHS.”
After cutting National Insurance from 12 to 10% from January in his autumn statement, Mr Hunt cut it from 10 to 8% from April, saving 2.4m Scottish workers an average of £680. 

If he had cut income tax instead it would have increased funding for Holyrood.

Ms Robison said: “The National Insurance cut fails to offset the crippling effects of the Cost of Living crisis. There is also little detail of the spending cuts needed to pay for it. 

“Even before today’s Spring Budget the Institute for Government described its spending plans as a ‘fantasy’, with no detail on where cuts will fall. 

“Today’s statement merely adds to that: according to the UK Government's own financial watchdog, the Office for Budget Responsibility, the Treasury may not even have the headroom available that today's commitments are based on.

“Public services up and down the UK are in real need of investment, and they’re being sacrificed to deliver unsustainable tax cuts.”

Scottish Labour leader Anas Sarwar said the budget would not "even begin to undo the damage this Tory government has done to our economy."

"Families are still struggling, food prices are still going up and annual mortgage payments are still £2,000 higher," he added.

“The Chancellor’s decision to follow Labour’s lead and extend the windfall tax on the profits of oil and gas giants exposes Douglas Ross’ irrelevance in his own party and leaves the SNP to the right of the Tories on this issue.

“Scotland deserves better than Rishi’s recession with the Tories, or an SNP that thinks that oil and gas giants should pay less tax while a nurse should pay more."

Scottish Greens finance spokesperson Ross Greer said the budget was "another Tory-inflicted disaster for Scotland."

"It continues the fourteen years of pain and cuts to essential public services forced on us all by Westminster.

“They have knowingly slashed Scotland’s construction budget in particular and are offering absolutely nothing to reverse this, despite the Scottish Government making clear that any additional money provided would go straight into affordable housing.

“The trumpeted extra £300m for health is actually a cut, because some of the funding provided for this year has been removed from next year at the same time."

“Extending the windfall tax on oil and gas company profits by another year isn’t unwelcome, but with the ridiculous 90% relief still in place for companies who agree to drill for more fossil fuels it's largely meaningless," he added.

The SNP's Economy spokesperson Drew Hendry said Mr Hunt's tax and spending plans would take "axe to public services."

"Worse still, there is no alternative on offer from Sir Keir Starmer's Labour Party, who support Brexit and want to impose the same damaging Tory fiscal plans, which will slash services and starve the economy of the investment needed to secure growth," he added.

"The UK economy is broken - and the damaging cuts in today's budget will make it even worse by failing to properly invest in the green energy gold rush, choking off economic growth, and putting up to 100,000 jobs at risk in Scotland's energy sector."

Scottish Secretary Alister Jack said the budget would keep "Scotland and the whole of the UK on the right path for the future, with a clear focus on economic growth, jobs and prosperity."

He said Levelling Up funding had now passed the £3 billion mark in Scotland.

"New measures announced today include £60 million for Arbroath, Peterhead and Kirkwall and there is a further cash boost of £12.6million for cultural projects in Dundee, Dunfermline and Perth.

"Hardworking Scottish families will see more money in their pockets with a second National Insurance cut – guaranteeing lower taxes for Scottish workers - and a freeze to fuel duty is great news for motorists.

"The Budget freezes spirits duty for another year to boost our biggest export, whisky, and it also puts Scotland ahead in the new space race, with £10 million made available for Shetland’s SaxaVord spaceport and the exciting prospect of a first satellite launch before too long. 

“On top of this, the Scottish Government will receive an extra £295 million funding, on top of their record block grant. There can be no excuses for not providing excellent public services in Scotland.”