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Spending Review: Swinney vows to 'protect' vulnerable from cuts Spending Review: Swinney vows to 'protect' vulnerable from cuts
(35 minutes later)
Scotland's finance secretary has said he will do everything he can to protect families from any further austerity measures announced by the chancellor. Scotland's finance secretary John Swinney has said he will do everything he can to protect families from any further austerity measures announced by the chancellor.
George Osborne is giving details of his Autumn Statement and Spending Review in the Commons. George Osborne is giving details of his Autumn Statement and Spending Review.
He is setting out how he intends to make £20bn of spending cuts and £12bn of savings on welfare.He is setting out how he intends to make £20bn of spending cuts and £12bn of savings on welfare.
John Swinney is due to give detail of the Scottish government's budget plans for 2016-17 next month. The chancellor also used his statement to announce he was scrapping £4.4bn plans to cut tax credits.
Mr Osborne said he had listened to the concerns expressed about the tax credit cuts and decided not to press ahead with them.
The chancellor's proposed cuts, along with a £5bn crackdown on tax avoidance, are intended to help him meet his pledge of eliminate the national deficit without raising personal taxes.The chancellor's proposed cuts, along with a £5bn crackdown on tax avoidance, are intended to help him meet his pledge of eliminate the national deficit without raising personal taxes.
But Mr Swinney, who is also Scotland's deputy first minister, insisted that the Conservatives were "engaged in austerity of choice, not necessity".But Mr Swinney, who is also Scotland's deputy first minister, insisted that the Conservatives were "engaged in austerity of choice, not necessity".
Mr Swinney is due to give details of the Scottish government's budget plans for 2016-17 next month.
He said: "The Scottish government has consistently demonstrated that the UK's deficit and debt can be brought down without the need for huge public spending cuts as set out by the UK government.He said: "The Scottish government has consistently demonstrated that the UK's deficit and debt can be brought down without the need for huge public spending cuts as set out by the UK government.
"We have set out that the public finances can be returned to a sustainable footing alongside increasing public sector net investment.""We have set out that the public finances can be returned to a sustainable footing alongside increasing public sector net investment."
Presented by Chancellor George Osborne, the Spending Review sets out what government spending will be over the next four years, while the Autumn Statement is an annual update of government plans for the economy.
Explained: Which government departments will be affected?
Analysis: Latest from BBC political editor Laura Kuenssberg
Douglas Fraser: What might it mean for Scotland?
Special report: Full in-depth coverage of the Spending Review and Autumn Statement
Watch: The BBC's TV coverage begins on BBC Two and the BBC News Channel at 11:30 GMT, with BBC Radio 5 Live coverage from 11:55 GMT
Mr Swinney said the likelihood was that the chancellor would make a "significant real-terms cut to Scotland's budget" and added: "What is worse is these cuts will hit the poorest the hardest."Mr Swinney said the likelihood was that the chancellor would make a "significant real-terms cut to Scotland's budget" and added: "What is worse is these cuts will hit the poorest the hardest."
A key element of Mr Osborne's announcements will be his plans for tax credits.A key element of Mr Osborne's announcements will be his plans for tax credits.
The UK government wants to cut them to save £4.5bn a year from 2016, arguing that most working families will still be better off by 2017, as a result of the introduction of the National Living Wage and changes to income tax thresholds.The UK government wants to cut them to save £4.5bn a year from 2016, arguing that most working families will still be better off by 2017, as a result of the introduction of the National Living Wage and changes to income tax thresholds.
Mr Osborne has vowed to press ahead with changes aimed at bringing tax credit spending "under control" despite the House of Lords voting to delay the cuts.Mr Osborne has vowed to press ahead with changes aimed at bringing tax credit spending "under control" despite the House of Lords voting to delay the cuts.
Mr Swinney said: "We will continue to do everything within our power to protect the most vulnerable from the UK government's austerity measures, but we want to use our powers and resources to lift people out of poverty, not just continually mitigate as best we can."Mr Swinney said: "We will continue to do everything within our power to protect the most vulnerable from the UK government's austerity measures, but we want to use our powers and resources to lift people out of poverty, not just continually mitigate as best we can."
With Scotland to get some limited power over income tax from April next year, with the ability to set rates and bands due in 2017, Mr Swinney said in the future Holyrood ministers would be able to "take a distinctive approach to the challenges we face".With Scotland to get some limited power over income tax from April next year, with the ability to set rates and bands due in 2017, Mr Swinney said in the future Holyrood ministers would be able to "take a distinctive approach to the challenges we face".
Looking ahead to his own budget plans for 2016-17, he added: "We will be fair and progressive in our decisions.Looking ahead to his own budget plans for 2016-17, he added: "We will be fair and progressive in our decisions.
"We only hope and call on the Chancellor to take a fair and progressive approach to the Spending Review and end his obsession with needless austerity.""We only hope and call on the Chancellor to take a fair and progressive approach to the Spending Review and end his obsession with needless austerity."
Shadow Scottish secretary Ian Murray also criticised Conservative plans to cut tax credits for working families.Shadow Scottish secretary Ian Murray also criticised Conservative plans to cut tax credits for working families.
Mr Murray, the only Labour MP in Scotland following the SNP's landslide victory in May's general election, said: "Before the election, the Tories promised that they would not cut tax credits, but their plans will cost three million working families £1,300 a year.Mr Murray, the only Labour MP in Scotland following the SNP's landslide victory in May's general election, said: "Before the election, the Tories promised that they would not cut tax credits, but their plans will cost three million working families £1,300 a year.
"Scottish Labour is clear that the Chancellor must reverse his decision, but if he does not we would use the new powers available to the Scottish Government to restore the money lost in full.""Scottish Labour is clear that the Chancellor must reverse his decision, but if he does not we would use the new powers available to the Scottish Government to restore the money lost in full."