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The UK Government's Comprehensive Spending Review (CSR) will see Scotland's overall budget fall by £1.3 billion in cash terms in 2011-12 compared to 2010-11 - including a fall of £800 million in the capital budget.
Finance Secretary John Swinney said this exceeds expectations, and alone threatens 12,000 jobs in Scotland.
Mr Swinney said:
"Today, the Chancellor's cuts went beyond our expectations, particularly on swingeing cuts to the capital budget, with an overall cut in next year's Scottish budget of £1.3 billion - including an £800 million reduction in vital capital spending.
"Today's cuts go far too deep, far too quickly - the capital budget cuts alone will threaten some 12,000 jobs in Scotland.
"In its decisions today, the UK government made the wrong choices for Scotland, and threatens to choke off the recovery that we are building in Scotland.
"On the same day that GDP figures showed growth of 1.3 per cent in the second quarter of 2010, based largely on recovery in the construction sector, the Chancellor has cut Scotland's capital budget beyond our expectations - some £150 million more than forecast in the Independent Budget Review report - which is totally the wrong approach.
"This GDP growth shows that we were absolutely right to take decisive and comprehensive action through our Economic Recovery Plan, stimulating investment by bringing forward capital projects and delivering an infrastructure programme worth £3.3 billion in 2010-11 - providing much needed support for construction and employment.
"The UK Government is putting all that at risk.
"There are elements in today's statement that we welcome. I note the Chancellor's words to support clean energy and renewables. Longannet is now the clear front runner to win the UK Carbon Capture and Storage competition, although we need to see further details. There are major questions about how and indeed when the proposed Green Investment Bank will operate, and we also need answers about what exactly the Treasury is proposing regarding Scottish Government access to the 190 million pound Fossil Fuel Levy, and how we can use it to directly support the renewables sector.
"The CSR demonstrates beyond doubt that Scotland must have the same financial and economic powers as other nations have, so that we can grow our economy and revenues as the only alternative to a decade or more of Westminster-dictated cuts."
Finance Secretary John Swinney said this exceeds expectations, and alone threatens 12,000 jobs in Scotland.
Mr Swinney said:
"Today, the Chancellor's cuts went beyond our expectations, particularly on swingeing cuts to the capital budget, with an overall cut in next year's Scottish budget of £1.3 billion - including an £800 million reduction in vital capital spending.
"Today's cuts go far too deep, far too quickly - the capital budget cuts alone will threaten some 12,000 jobs in Scotland.
"In its decisions today, the UK government made the wrong choices for Scotland, and threatens to choke off the recovery that we are building in Scotland.
"On the same day that GDP figures showed growth of 1.3 per cent in the second quarter of 2010, based largely on recovery in the construction sector, the Chancellor has cut Scotland's capital budget beyond our expectations - some £150 million more than forecast in the Independent Budget Review report - which is totally the wrong approach.
"This GDP growth shows that we were absolutely right to take decisive and comprehensive action through our Economic Recovery Plan, stimulating investment by bringing forward capital projects and delivering an infrastructure programme worth £3.3 billion in 2010-11 - providing much needed support for construction and employment.
"The UK Government is putting all that at risk.
"There are elements in today's statement that we welcome. I note the Chancellor's words to support clean energy and renewables. Longannet is now the clear front runner to win the UK Carbon Capture and Storage competition, although we need to see further details. There are major questions about how and indeed when the proposed Green Investment Bank will operate, and we also need answers about what exactly the Treasury is proposing regarding Scottish Government access to the 190 million pound Fossil Fuel Levy, and how we can use it to directly support the renewables sector.
"The CSR demonstrates beyond doubt that Scotland must have the same financial and economic powers as other nations have, so that we can grow our economy and revenues as the only alternative to a decade or more of Westminster-dictated cuts."