John Swinney rules out cuts to universal benefits

The Scottish government has faced criticism from political opponents and economists for not budgeting for higher public pay deals in this year’s budget, which Mr Swinney said would cost more than forecast.

Asked if ministers made a mistake, he replied: “Not necessarily because you’ve got to live within your means.”

The first minister told BBC Scotland News: “You can only set out in your budget what you can afford.”

At last year’s SNP conference, then SNP leader Humza Yousaf announced a council tax freeze.

The Scottish Fiscal Commission – an independent watchdog – said the freeze, more generous public sector pay deals than in other parts of the UK and social security reforms had all “added to the in-year pressures” facing the government.

But Mr Swinney defended his predecessor’s decision, describing it as a “practical” measure to help families during the cost of living crisis.

The government could not impose a nationwide freeze on council tax, which is overseen by local authorities.

Instead, it offered financial incentives for councils to comply, with all agreeing to doing so by April. At that point, the government said, external it had allocated £147m to local authorities, with a further £62.7m pledged.