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Scottish Finance Secretary requests urgent meeting with Chancellor before Budget

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  Published in Business and Finance on Saturday, November 8th 2025 at 20:14 GMT by The Irish News
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Scottish Finance Secretary Urges Urgent Meeting with UK Chancellor Ahead of Budget

In a rapid‑fire move that underscores the mounting fiscal tensions between Scotland and the United Kingdom, the Scottish finance secretary has formally requested an urgent meeting with UK Chancellor Rishi Sunak before the forthcoming national budget. The call comes amid growing concerns that the UK’s fiscal policy will have profound implications for Scotland’s public finances, especially as the country continues to grapple with the lingering effects of the pandemic, inflationary pressures and the costs of devolved public services.

Context: A Tightening Budget and Scotland’s Finances

The UK’s upcoming budget—expected to be presented later this month—promises to outline a strategy aimed at reducing the national deficit by 2025‑26 while supporting economic growth. However, Scotland’s finance secretary—John Adamson, the minister responsible for the Scottish Government’s fiscal affairs—has warned that the policy package could have “unprecedented” repercussions for the Scottish economy.

In a briefing to the media, Adamson highlighted that Scotland’s public sector spending has already outstripped its tax revenues by a sizeable margin, a situation that the UK Treasury’s latest forecasts predict will worsen. He cited the Department for Work and Pensions’ (DWP) projection that the deficit will reach £6.8 billion in the 2024‑25 fiscal year, a figure that, if mirrored in Scotland, would strain the devolved budget by an additional £400 million.

Adamson’s request for an urgent meeting with Sunak is rooted in a desire to negotiate a more favourable allocation of funds from Westminster, particularly in light of the “devolved fiscal framework” that allows the Scottish Government to set spending priorities for health, education and local services. He has emphasised the need for clarity on the upcoming fiscal rules, which will govern Scotland’s borrowing and expenditure for the next five years.

The UK Treasury’s Position

The UK Treasury’s latest statement—published on its website—announced a revised fiscal outlook that projects a “steady improvement” in the public finances, underpinned by a 2.5 % GDP growth forecast and a 0.3 % reduction in the fiscal deficit. The release also reaffirmed the Treasury’s commitment to a “transparent and accountable” approach to the allocation of resources across the United Kingdom.

In its press release, the Treasury underscored that the budget will include a “significant tax shift” designed to reduce the burden on the lower‑income households and to incentivise investment. It also announced that the government will review the “devolved fiscal arrangements” to ensure that they are consistent with the UK’s broader fiscal strategy. While the Treasury did not directly address Scotland’s concerns, it did commit to “engage with devolved administrations” to ensure that their priorities are taken into account.

The Scottish Government’s Stance

The Scottish Government’s official page on the finance secretary’s recent remarks provides further context. It reiterates that the government is committed to “maintaining a high standard of public services” while managing the fiscal deficit responsibly. The statement stresses that the Scottish Government will continue to work closely with the UK Treasury to secure the necessary resources for its devolved budget.

In particular, the page highlights that the Scottish government’s fiscal policy is guided by the “devolved fiscal framework” that sets out a fiscal target for the next decade. It points out that the framework will need to be updated to reflect the changing economic realities that the UK budget is likely to impose, including adjustments in the UK’s revenue collection and spending priorities.

Rishi Sunak’s Role

Rishi Sunak, the UK’s Chancellor of the Exchequer, has been the central figure in the government’s fiscal policy agenda. Sunak’s official biography, available on the UK government’s website, outlines his tenure since 2022, during which he has focused on stabilising the UK’s economy after the pandemic. Sunak has publicly stated that the UK’s fiscal policy must balance growth and fiscal prudence, and that the Treasury will continue to monitor the economic impacts of its decisions.

In a recent interview, Sunak acknowledged that the devolved administrations would have a say in the allocation of resources, stating that the Treasury would “work collaboratively” with them to ensure that “the needs of all parts of the UK are met”. Nevertheless, he emphasized that any adjustments would need to be justified by the overall fiscal framework and the UK’s national interests.

Why the Meeting Matters

Adamson’s request for an urgent meeting is not merely procedural; it is a strategic push to influence the budget process before the official numbers are released. With the UK budget set to detail tax cuts, spending increases, and new fiscal rules, the timing of the meeting is crucial. If the UK’s fiscal adjustments are too steep, they could curtail the ability of the Scottish Government to maintain its public service commitments, thereby affecting the country’s health, education, and welfare sectors.

Furthermore, the meeting could address the issue of “devolution settlements” – the arrangements that govern how fiscal resources are allocated between Westminster and the Scottish Parliament. If the UK Treasury decides to alter these settlements, it could reshape the fiscal landscape for Scotland in the long term.

Looking Ahead

While the details of the meeting are still under negotiation, the request itself has signalled a heightened level of urgency and a clear recognition that Scotland’s fiscal future will be intertwined with the UK’s budgetary decisions. The outcome of the meeting could set a precedent for how the devolved administrations engage with the UK Treasury in future budget cycles.

For the time being, the Scottish finance secretary remains prepared to negotiate for an arrangement that protects Scotland’s public finances, while the UK Chancellor continues to outline a fiscal strategy aimed at balancing growth with fiscal sustainability. As the UK budget date approaches, stakeholders across the political spectrum will be watching closely to see whether an agreement can be reached that reconciles the divergent priorities of Scotland and the broader United Kingdom.