By james art Rachel Reeves will set out the UK government’s tax and spending plans on Wednesday, where she is expected to make “difficult decisions about spending, social care and taxation” and change the way national debt is measured to give her more flexibility in borrowing.
Ahead of the Budget – the first for a Labor government since 2010 – Mr Sweeney urged the chancellor to increase cash for Scotland.
Speaking to business leaders at a reception on Tuesday, Mr Swinney said: “The Office for Budget Responsibility has recently highlighted the potential for public investment to deliver lasting improvements in the economy.
“I am delighted that my calls for the Chancellor to change his fiscal rules have been heard, with indications last week that there will be scope for greater investment.
“The Chancellor has the chance to choose to deliver a UK Budget that invests in our public services and supports the entrepreneurial spirit shown in Scotland’s business sector.
“With these new rules, the Chancellor must use the fiscal reserve it creates to deliver a Budget that immediately and significantly improves Scotland’s resources and capital funding, allowing us to invest more in our public services and continue the vital infrastructure projects that support economic growth, net zero and action to tackle child poverty.”
The Scottish Government has been outspoken about its dire financial straits in recent months, with Finance Secretary Shona Robison forced to make more than £500m of cuts over the year.
Mr Swinney also pushed for funding for the Acorn carbon capture and storage facility in north-east Scotland, which has twice been ignored by UK governments.
The facility will “deliver new opportunities for workers in the oil and gas sector in Grangemouth and elsewhere in Scotland”, the First Minister said.
Meanwhile, Scottish Chambers of Commerce chief executive Liz Cameron warned the budget would have a direct impact on business confidence.
“The focus of our budget is on growth, investment and competitiveness. This means investing in skills, technology and infrastructure and equipping the workforce for tomorrow’s challenges,” she said.
“The Chancellor’s actions and the message they send will have a direct impact on business confidence and investment at a time when we need to create positive momentum. We hope our calls for business support have been heard and not ignored.”
Meanwhile, the Scottish Conservatives warned of the potential for a “double tax hit” if the UK government increased levies on Wednesday and the Scottish government followed suit in December.
Reports suggest the chancellor could increase employers’ national insurance contributions, capital gains tax and fuel tax, while freezing income tax bands.
Scottish Tory finance spokesman Craig Hoy said Ms Reeves’ budget would condemn hard-working Scots to a double tax hit as Labor joins the SNP government in their smear campaign.
“Keir Starmer is shamelessly breaking his campaign promises with a slew of punitive tax increases that have already been leaked to the media.
“The damage caused by Labour’s impressive tax increases will be felt worse by Scots because we are already the highest taxed part of the UK thanks to years of SNP mismanagement.
“These left-wing parties mistakenly believe that constantly raising taxes is the solution to everything. It’s not – and it’s putting an unbearable strain on household budgets and stifling economic growth.”
But Scottish Labour’s finance spokesman Michael Mara insisted the budget would “end the era of austerity and put growth front and centre”.
He added: “Labour is fixing the foundations of the UK but we need an end to the SNP’s economic and financial mismanagement” and urged the Scottish Government not to “waste the opportunities” the budget will create.