More money for Scotland but businesses warn Labour’s tax plans may cost jobs

SNP ministers have been challenged to cut costs for businesses and fix Scotland’s public sector after the chancellor handed Holyrood the largest budget settlement since devolution.

Rachel Reeves announced that the Scottish government’s budget next year will swell by about £3.5 billion to almost £48 billion amid reforms to English business rates that would make them significantly lower than north of the border.

She told the Commons that Labour would “drive growth in Scotland” and, in an unusual gesture, named Anas Sarwar, the Scottish Labour party leader, as an influential figure guiding Labour policy.

“This budget provides the devolved governments with the largest real-terms funding settlement since devolution, delivering an additional £3.4 billion for the Scottish government through the Barnett formula, funding which must