An additional £320 million allocated to Scotland from the UK Budget does not go far enough to address the cost-of-living crisis, Nicola Sturgeon has said.

The First Minister welcomed the “limited additional funding”, but said significant strain would remain on the Scottish Government’s budget.

The additional cash is allocated to Holyrood ministers through Barnett consequentials as a result of spending decisions for England.

Chancellor Jeremy Hunt also announced the energy price guarantee will be frozen at £2,500 for at least another three months.

Addressing the Budget during First Minister’s Questions at Holyrood on Thursday, Ms Sturgeon said: “While any limited additional money for the Scottish Government budget is welcome, it does not go nearly far enough.

Nicola Sturgeon
Nicola Sturgeon said the UK Government needs to do more to help people amid the costs crisis (Jane Barlow/PA)

“We have repeatedly called on the UK Government to deploy its full range of powers to support people, the public sector and businesses through the cost-of-living crisis.

“The Chancellor’s Budget yesterday was, disappointingly, another missed opportunity to do that.

“The decisions announced yesterday mean that this Government will continue to have a constrained ability to support vital services and provide fair pay rises.

“This Government is doing everything it can within its limited powers to ensure people receive the help needed, but the UK Government could have done far more to ease the burden affecting so many.”

Mr Hunt announced 30 hours a week of free childcare for children as young as nine months south of the border.

Budget 2023
Chancellor Jeremy Hunt said his Budget helps people across the UK (Stefan Rousseau/PA)

In response to a question from Scottish Conservative MSP Meghan Gallacher on that promise for families in England, Ms Sturgeon said her Government could not match it because the Scottish childcare provision would have to be “reduced” to do so.

The Scottish Government currently offers up to 1,140 hours of funded early learning and childcare per year – equating to around 30 hours per week in term time – for three and four-year-olds, and some eligible two-year-olds.

Ms Sturgeon stressed her Government would like to go further, and SNP leadership candidate Humza Yousaf has pledged to extend the provision to one and two-year-olds if elected.

Meanwhile, Scottish Labour leader Anas Sarwar used FMQs to accuse the Tories of doing “little to address the cost-of-living crisis across the UK”.

He branded it a “Budget that gave tax breaks to the wealthiest and did nothing to help those most in need”, adding: “We need a meaningful windfall tax now, to scrap the non-dom status and invest in our communities across the country.

“That’s not possible with the Tory Government.”

Earlier on BBC Radio Scotland’s Good Morning Scotland programme, Mr Hunt said his Budget would help people with the costs crisis.

He said: “We have a plan that is starting to work, and what is the biggest thing that is worrying people in Scotland at the moment is the rising cost of living, it is the fact that the weekly supermarket shop is becoming more expensive.

“That is because we have inflation at more than 10%, and the plan we are embarking on will see inflation go down to less than 3% within a year.”

He added there would be cost-of-living support for people across the UK, including extending the energy price guarantee, stopping the rise in fuel duty, one-off payments for people on low incomes, and increasing benefits with inflation.

He added: “It amounts to over £3,000 of help per household on average across the UK.

“It is a huge amount of support to help people through a very, very difficult period and that is what I think we should be doing as a Government.”