Scotland’s Deputy First Minister and Finance Secretary Jenny Gilruth has warned that spending cuts will “undoubtedly” be required as the Scottish Government faces a projected funding shortfall of nearly £5bn by the end of the decade.

Speaking shortly after taking up her new dual role, she acknowledged the scale of the challenge and said ministers had been transparent about the fiscal pressures ahead.The warning follows previous concerns from Scotland’s auditor general, who highlighted a £4.7bn funding gap by 2029–30 and criticised the lack of a clear plan to address it.

Gilruth emphasised that the government would aim to protect public services and frontline workers while pursuing public sector reform and efficiency savings.

She indicated she would work closely with the newly appointed minister for public sector reform, Ivan McKee, to identify efficiencies, including shared services across government bodies.However, she did not rule out reductions in spending, stating that difficult decisions would be unavoidable.

She stressed that vulnerable groups should not be disproportionately affected and highlighted the rising cost pressures on government, including wage increases following record public sector pay deals, alongside broader inflationary pressures such as energy and food costs.

Opposition parties criticised the government’s approach, with Labour accusing ministers of failing to clarify where cuts would fall, while the Conservatives described the cabinet as offering no solution to ongoing instability.The Scottish Greens warned against large-scale job losses and argued for exploring revenue-raising options before implementing cuts.

The article also notes wider political tensions, including the SNP’s continued push for a future independence referendum and planned parliamentary motions.

While the Scottish Government argues it has a democratic mandate, the UK Government maintains its opposition to another referendum, urging a focus on economic delivery and public services rather than constitutional change.