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Scottish government calls for chancellor to 'end austerity' Scottish government calls for chancellor to 'end austerity'
(about 2 hours later)
Scotland's finance secretary has urged the chancellor to use his first Autumn Statement to end the UK government's "damaging austerity agenda".Scotland's finance secretary has urged the chancellor to use his first Autumn Statement to end the UK government's "damaging austerity agenda".
Derek Mackay said "real terms cuts" to the Scottish government budget were harming its efforts to build a "fairer country".Derek Mackay said "real terms cuts" to the Scottish government budget were harming its efforts to build a "fairer country".
Chancellor Philip Hammond will make his statement in the Commons at 12:30.Chancellor Philip Hammond will make his statement in the Commons at 12:30.
He is under pressure to deliver some help to the so-called "jams" - people who are "just about managing".He is under pressure to deliver some help to the so-called "jams" - people who are "just about managing".
Mr Hammond will announce changes to Universal Credit - the flagship single payment currently being rolled out across the UK - to reduce the "taper rate" from 65% to 63%.Mr Hammond will announce changes to Universal Credit - the flagship single payment currently being rolled out across the UK - to reduce the "taper rate" from 65% to 63%.
This means benefits will be withdrawn at a rate of 63p for every pound of net earnings - which the government says will benefit three million families.This means benefits will be withdrawn at a rate of 63p for every pound of net earnings - which the government says will benefit three million families.
The first major economic statement since the Brexit vote will also unveil forecasts which are expected to show higher borrowing and slower growth in the UK economy.The first major economic statement since the Brexit vote will also unveil forecasts which are expected to show higher borrowing and slower growth in the UK economy.
The chancellor has vowed to ensure the UK economy is "watertight" for the "sharp challenges" of Brexit and described the UK's debt - national debt stands at £1.6trn - as "eye-wateringly" large.The chancellor has vowed to ensure the UK economy is "watertight" for the "sharp challenges" of Brexit and described the UK's debt - national debt stands at £1.6trn - as "eye-wateringly" large.
'This is unacceptable''This is unacceptable'
Mr Hammond has also warned of "turbulence" and "an unprecedented level of uncertainty" as the UK leaves the EU.Mr Hammond has also warned of "turbulence" and "an unprecedented level of uncertainty" as the UK leaves the EU.
Speaking ahead of the statement, Mr Mackay said the Scottish government was facing real terms cuts from the UK government every year until at least 2019-20, which would further reduce funding for the country's public services.Speaking ahead of the statement, Mr Mackay said the Scottish government was facing real terms cuts from the UK government every year until at least 2019-20, which would further reduce funding for the country's public services.
He added: "Our discretionary budget will have been cut by £3.3bn in real terms, or 10.6%, since 2010-11 and within this, our capital budget will have fallen by £600 million or 15.7%.He added: "Our discretionary budget will have been cut by £3.3bn in real terms, or 10.6%, since 2010-11 and within this, our capital budget will have fallen by £600 million or 15.7%.
"This is unacceptable. I have written to the chancellor and urged him to end the damaging austerity agenda when he sets out the Autumn Statement later today.""This is unacceptable. I have written to the chancellor and urged him to end the damaging austerity agenda when he sets out the Autumn Statement later today."
'Big challenges for Hammond' What will the Autumn Statement mean for Scotland?
Laura Kuenssberg, BBC political editor by Prof Graeme Roy, director of the Fraser of Allander Institute and former senior economic adviser to the Scottish government
Philip Hammond looked relaxed in a photo released by the Treasury - reading his statement, settled in a wing-backed chair, tea in a china cup and saucer at hand. This is the first time that we are dealing with an Autumn Statement in the new world of Scotland having substantial tax powers.
But while he is perfectly at home in the Treasury, the government has little to be relaxed about. As a new team, in Number 11 and Number 10, there is a clear political desire to show Theresa May means it when she promises to help families struggling to make ends meet. Today we are really only going to get half of the story about what the Scottish budget might look like over the next few years.
But one Cabinet source said there was even less money than in 2010, when there famously was "no money left". We will get the consequentials and we will get the overall envelope that the Scottish government will face.
There may be concessions to some, but don't expect any largesse. But what we really need to wait for is what the Scottish government will forecast Scottish tax revenues to be, and that will not happen until the Scottish Budget in December.
Read more from Laura I think what the Scottish government will be looking for is what are the potential implications for capital investment?
That is obviously something they have been calling for, and that is probably the thing that has been alluded to over the past few days as something the UK government will go for.
So you could see a couple of hundred million or a hundred million coming through that, either in housing or in roads.
But overall the Scottish budget is still likely to face real-terms cuts over the next few years, and again the Scottish government will start to think over the next few weeks about how they will wrestle with that and what choices they will have to make in a world where the budget continues to decline.
Read more analysis from the Fraser of Allander Institute
Scottish Conservative leader Ruth Davidson said the Autumn Statement came at the same time as a "massive change in the way Britain will work in the future".Scottish Conservative leader Ruth Davidson said the Autumn Statement came at the same time as a "massive change in the way Britain will work in the future".
She stated: "As of next year, the Scottish Parliament will be one of the most powerful and accountable devolved Parliaments in the world.She stated: "As of next year, the Scottish Parliament will be one of the most powerful and accountable devolved Parliaments in the world.
"The SNP will no longer just be making decisions on how to spend money, it will have to decide how to raise it from Scottish taxpayers too.""The SNP will no longer just be making decisions on how to spend money, it will have to decide how to raise it from Scottish taxpayers too."
'Working families''Working families'
She said people would want to see a "positive reaction" from the Scottish government instead of "griping and sniping", and called on the SNP to "stop dithering in government and get on with governing."She said people would want to see a "positive reaction" from the Scottish government instead of "griping and sniping", and called on the SNP to "stop dithering in government and get on with governing."
Scottish Labour leader Kezia Dugdale also called on Mr Hammond to call a halt to spending cuts in his statement, as well as provide more support for the struggling North Sea oil and gas sector.Scottish Labour leader Kezia Dugdale also called on Mr Hammond to call a halt to spending cuts in his statement, as well as provide more support for the struggling North Sea oil and gas sector.
Ms Dugdale said: "When she first took office, Theresa May claimed to be a different kind of Tory. Today we will find out whether or not the Prime Minister really is on the side of working families after all."Ms Dugdale said: "When she first took office, Theresa May claimed to be a different kind of Tory. Today we will find out whether or not the Prime Minister really is on the side of working families after all."