Nicola Sturgeon has confirmed that the SNP would move to bin the Barnett formula after the General Election.
Appearing on the Andrew Marr show on Sunday the First Minister repeatedly stated that she wanted full fiscal autonomy for Scotland.
Full fiscal autonomy would mean the end of the Barnett formula, the UK wide funding deal which sees higher public spending in Scotland.
With oil prices falling to below 50 dollars a barrel, ending Barnett would expose Scotland’s finances to billions of pounds worth of cuts to public services and a pensions black hole.
The figure could be at least £4 billion, according to estimates from SNP figures, including the First Minister herself.
Scottish Labour have said that binning Barnett would be bad for Scotland, and will campaign to keep the current Barnett bonus to protect Scotland from the revenue losses caused by low oil prices.
The Barnett bonus means that Scotland can protect public services and pensions, and Scottish Labour would use it to deliver polices Scotland needs like 1000 additional nurses for our NHS.
Scottish Labour Finance Spokesperson Jackie Baillie MSP said:
“The First Minister confirmed that the SNP want this general election to be the end of the Barnett formula, which would rip billions out of Scottish public services. Their plan is dangerous for Scotland.
“Barnett allows us to benefit from the shared and pooled resources and revenues of the whole UK. It gives us the power to make Scotland better, like 1000 additional nurses for our NHS, and setting up a resilience fund for times of crisis in Scotland’s crucial industries.
“The SNP are putting their own political beliefs before what is best for Scotland. Nicola Sturgeon has made the general election a clear choice -; protecting the current Barnett bonus with Scottish Labour, or billions of pounds of cuts with the SNP.”