Angela Rayner denies UK government forcing Scottish spending cuts

Earlier, the finance secretary told BBC Radio’s Good Morning Scotland that the government had budgeted for public sector pay rises of up to about 2% because that was all it could afford.

The Scottish government recently provided extra funding to help Cosla offer a pay increase of at least 3.6% to local authority workers.

Pay deals for doctors, nurses and teachers are yet to be agreed.

The Fraser of Allander Institute (FAI) said a major part of the budget issue was due to a “lack of prudent planning” by Holyrood ministers.

FAI deputy director and senior economist Joao Sousa said while the SNP government had “limited room for manoeuvre”, the spending freeze was foreseeable because ministers did not set a public pay policy in advance.

Ms Robison said the Scottish government had not been able to plan with certainty due to the “chaotic” Conservative government that was in Downing Street until July.

She told BBC Scotland News that communication with the Treasury under the new Labour administration had improved.

The finance secretary added that she would set out her spending plans in detail when she announced the 2025-26 budget later this year.