Scotland faces 'undoubtedly' cuts amid £5bn shortfall, warns deputy first minister

The deputy first minister has warned that there will "undoubtedly" need to be cuts to deal with a predicted shortfall of nearly £5bn by the end of the decade.

Jenny Gilruth, who was appointed to the dual role of deputy first minister and finance secretary on Wednesday, said the Scottish government had been "very upfront about the challenge we face".

Scotland's auditor general previously said ministers lacked a clear plan to deal with a £4.7bn funding gap by 2029-30.

Gilruth said the government would work "to protect services and protect frontline workers" while looking at public sector reform.

When asked if the government will need to make cuts, she told BBC's The Sunday Show: "Undoubtedly."

Gilruth said she would work with Ivan McKee, who was appointed the minister for public sector reform this week, on "driving some of the efficiencies we need to see".

"His work will be pivotal in that regard," she added.

But she stressed that the government should not look to the "most vulnerable" when finances are stretched.

The deputy first minister also told the programme that there was cross-party support for shrinking the number of public sector bodies.

"We have seen a growing public sector during the pandemic, that has brought with it additional costs, and in the same time period wages have increased," she said.

"People will know costs are going through the roof just now - the price of energy, the price of the food shop - and we need to keep pace with that and that's why we delivered record public sector pay deals.

"But that has come with additional cost to the government."

However, she said it was important to protect the services "that matter most to people" while making efforts to save money, potentially through "shared services".

She also laid out the SNP's manifesto pledges which she claimed would "pivot public services to better help families".

Gilruth added: "We're taking forward a range of different actions including bringing down food prices for families, introducing a £2 bus cap, and taking forward measures to expand childcare across the board to help families."

Scottish Labour's Michael Marra criticised Gilruth for "keeping Scots in the dark about where those cuts will fall".

Meanwhile Scottish Conservative finance spokesman Craig Hoy said that the "continuity cabinet" would do nothing to "fix the chaos and instability the SNP has created".

Scottish Greens co-leader Gillian Mackay told the programme that some "shared functions" could work.

"But many of the departments that we're talking about are already stretched,"

she said.

"We need to protect those services to make sure that they are functioning for the people of Scotland - to make sure there's not delays in things like making sure that benefits are approved and passed on to people."

She said she would "absolutely" have concerns about any potential large-scale job losses.

"We've laid out a number of ways in which we can raise more money rather than making cuts to some services that are vital to the people of Scotland and to the functioning of government," said Mackay.

"So making sure that we bring those forward and explore all of those opportunities before thinking about making cuts, I think is the right way round to do that."

'Democratic route out of the union'

The SNP plans to bring forward a vote on independence at the Scottish parliament on Tuesday.

In the lead up to the Holyrood election, First Minister John Swinney said a majority of SNP MSPs would give the Scottish government a mandate for a second independence referendum.

However the SNP's share of MSPs fell to 58 seats, with 65 needed for a majority.

The party still won the election, with second place Labour and Reform on 17 seats each.

The Scottish Greens - the other pro-independence party of the six larger parties - won a record 15 seats, meaning the majority of MSPs support independence.

"The people have voted again to re-elect an SNP government,"

Gilruth told The Sunday Show.

"Really, this is a matter for the UK government to answer now. What is the democratic route out of the union if they're going to consistently refuse Scotland's right to choose?"

When asked if the SNP had a plan if the UK government continued to say no, she said: "We'll set out the plans to parliament this week, but we will continue to push the UK government for the powers to hold a democratic independence referendum as was the case in 2014."

They added: "People need and want their governments focused on the issues that really matter - economic growth, the cost of living, and public services. Our focus must be on delivery, not division."