Scotland 'faces £42bn funding cuts'

The public spending squeeze in Scotland is likely to be worse than first projected following the recent UK Budget.

Figures published by the Scottish Government's chief economic adviser Dr Andrew Goudie, project spending cuts of £42 billion over the next sixteen years. A similar study in April estimated reductions of £25-35 billion over 12 to 15 years. The latest report predicts six consecutive years of cuts in real terms, up from the previous assessment of five years.

The Tory-Lib Dem UK Government's Comprehensive Spending Review in October will outline more details of allocations for Scotland's devolved budget. The onus will then be on SNP ministers to set the right priorities for services they are responsible for.