More than £700m to be cut from Scottish Budget next year

SFC chairman Graeme Roy warned that the Scottish government would face significant challenges in trying to balance future budgets.

“The delivery of planned savings, managing workforce costs, and the impact of the upcoming UK Budget will all be important factors in determining the funding available for public services in Scotland,” he said.

Roy called for ministers, when they return from parliamentary recess next week, to provide an update on progress towards savings “and to identify any new or emerging pressures” affecting upcoming budgets.

Goodlad, the public finance minister, insisted her government would “continue to take a responsible approach to managing the public finances, prioritising investment in frontline services”.

She said “Through progressive taxation and careful stewardship of the public finances, we are protecting those who are most vulnerable to these pressures and Scotland continues to provide the most comprehensive package of cost-of-living support in the UK.

“These are deliberate choices, but we are equally clear that they do not come at the expense of ensuring that public finances remain sustainable.”

She added that £1.5bn of planned savings would be achieved through “workforce reform, productivity improvements and changes to how services are delivered”.