John Swinney urges investment not austerity as Rachel Reeves prepares for first Budget

First Minister John Swinney | Jane Barlow/PA Wire

And he will call on Chancellor Rachel Reeves to reject austerity and choose investment as the remedy.

First Minister John Swinney | Jane Barlow/PA Wire

Ms Reeves is due to deliver the new Labour government’s first Budget on Wednesday October 30 and has warned of tough choices to start to fix a £22 billion black hole left by the Tories.

In a speech in Edinburgh on Monday, Mr Swinney will argue the United Kingdom faces a “make-or-break moment” in a world of turmoil.

He is expected to say: “As the Chancellor prepares to publish her budget next week, the choice before the United Kingdom could not be more stark. Either continue with the current failed Westminster model of public spending cuts undermining growth. Or chart a new course – and invest to grow.

“Successive economic shocks, and policy choices like austerity, have undermined the fabric of our public services – and they have directly impacted the wellbeing of people across the UK.

“These past seven years in particular – with Brexit, Covid, war in Europe and the resulting energy crisis and inflation shock – have been incredibly difficult for everyone. They have felt like a long, dark economic winter.

“What is needed now is a collective commitment to public investment for economic renewal – investment that will allow us to move into an economic spring, with new growth, new opportunities and new hope.

“In this century, defined by global crises, we must invest boldly to improve living standards, increase equality, and protect the planet.

“We cannot simply sit back and wait for economic conditions to improve after nearly two decades of volatility.

“I want to bring together a consensus in Scotland around the need for investment and use that goodwill to fuel the next stage in our economic journey.

“One thing is clear - we have reached a turning point: a pivotal moment for UK decision making in a world of sustained turmoil. That is why I believe the United Kingdom faces a make-or-break moment in this next Budget. It must be seized.”