JOHN Swinney has suggested that the Scottish Government will not follow Tory ministers in cutting the basic rate of tax – insisting he has no intention of passing on funding cuts to public services.

The Scottish Government stressed it was not following the UK Government in cutting tax for the super-rich before the UK Government U-turned on the decision for England.

But SNP ministers are yet to say whether they will mirror the decision to cut the basic rate of tax by 1p in England.

Earlier on the BBC’s Sunday with Laura Kuenssberg, Nicola Sturgeon said: “We will set our Budget in December and we will set out our tax plans as part of that.

“We will come to that decision in a balanced way, taking account of all the factors you would expect any government to.”

SNP bosses have been under pressure from activists at this weekend’s conference to be more flexible over tax powers.

The UK Government is set to cut public spending by up to £18bn next year after Chancellor Kwasi Kwarteng confirmed the budget will not be uplifted in line with inflation – having a knock-on effect on the Scottish Government’s funding deal.

Mr Swinney, addressing the SNP conference in Aberdeen, said: “As a result of inflation, the Scottish budget is now worth £1.7 billion less than when we set it in December.

“We have already had to announce £500 million of savings to ensure we comply with our legal duty to balance the books, and fund fair pay deals for public sector workers.

“And that is before we take into account the £18 billion of spending cuts the Tories are planning to pay for their tax cuts. This will impact every corner of Scotland.”

He added: “Our public services, already under the strain of recovering from the pandemic, risk being starved of cash, all so that those with the broadest shoulders can pay less tax.

“There is no denying that the task is great. And, our room for manoeuvre is limited.

“But conference, I am clear the job of an SNP finance secretary isn’t to cut public services.

“It is to fund public services. And despite the harsh fiscal constraints of devolution, supporting our public services is what we intend to do.”

Mr Swinney also pointed the finger at the UK Government amid suggestions it will not uplift benefits payments in line with inflation, warning that “the poorest 20% in society will see their incomes fall next year”.

He added: ”Meanwhile the richest 5% will see their incomes boosted by more than £9,000.

“During a cost of living crisis, they are taking from the poor and giving to the rich.

“They did so with no independent reports on the costings and no idea how they would pay for the tax giveaways.

“Within weeks the new Tory Prime Minister decided to transform a punishing cost crisis in to a full blown economic and financial crisis.

“In an act of fiscal recklessness, the Tories have threatened the financial security of millions of our people, jeopardised the homes of many through higher mortgages and shredded in one fell swoop the fiscal credibility of the United Kingdom. That is just the latest disaster the Tories have delivered.

“And what will this recklessness bring for us – it will bring a new age of austerity.

“A new age of austerity that will cripple public services and create misery for those on fixed incomes.”