The Scottish government has confirmed spending cuts of up to £500m.
Finance Secretary Shona Robison said the “direct savings” were necessary to support the Scottish government’s 2024/25 budget.
In a pre-budget fiscal update to the Scottish parliament on Tuesday, Ms Robison said: “Prolonged Westminster austerity, the economic damage of Brexit, a global pandemic, the war in Ukraine, and the cost of living crisis have all placed enormous and growing pressure on the public finances.”
The Scottish government previously announced a number of cost-saving measures, including the reintroduction of peak ScotRail fares, axing universal winter fuel payments for pensioners, and scrapping a free bus travel scheme for asylum seekers.
The cuts have been made ahead of the UK government’s budget in October, which Sir Keir Starmer has warned is going to be “painful”.
Last week, experts at independent economic forecaster the Scottish Fiscal Commission (SFC) said while UK government policies contribute to pressures on the Scottish budget, “much of the pressure comes from the Scottish government’s own decisions”.
The SFC warned that ministers could struggle to balance the country’s budget due to above-expectation public sector pay deals, the council tax freeze and benefit reforms, as well as uncertainty about the level of funding coming from Westminster.
Scottish health secretary Neil Gray denies he tried to buy Oasis tickets during Alzheimer’s panel at SNP conference
John Swinney to reveal Scotland’s plans for economy, net zero and child poverty in his first Programme for Government
The SNP will fear they have further to fall as lower-key party conference gets under way
But in an interview with Sky News, First Minister John Swinney said Scotland has balanced its budget every year and had “not overspent by a farthing”.
Read more from Sky News:
FM to reveal plans for Scotland
Minister denies trying to buy Oasis tickets during Alzheimer’s panel
Keep up with all the latest news from the UK and around the world by following Sky News
Be the first to get Breaking News
Install the Sky News app for free
This breaking news story is being updated and more details will be published shortly.
Please refresh the page for the fullest version.
You can receive Breaking News alerts on a smartphone or tablet via the Sky News App. You can also follow @SkyNews on X or subscribe to our YouTube channel to keep up with the latest news.