A STEP IN THE RIGHT DIRECTION

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RACHEL Reeves's landmark Budget was hailed as a "step in the right direction" by the SNP Finance Secretary yesterday in a sign of improved relations between Holyrood and Westminster.

Shona Robison welcomed the Labour Chancellor's decision to change Treasury rules to allow greater investment in infrastructure.

But she warned the Scottish Government still faced "enormous cost pressures" despite being handed an additional £3.4billion by Reeves.

SNP ministers will now spend the next month attempting to balance their own books before the draft Holyrood budget is presented to MSPs on December 4.

Robison said last night that a deal between her party and Labour on the Scottish Government budget in December would be a "positive" thing.

The Finance Secretary added: "We called for increased investment in public services, infrastructure and tackling poverty. This Budget is a step in the right direction, but still leaves us facing enormous cost pressures going forwards.

"The additional funding for this financial year has already been factored into our spending plans.

"By changing her fiscal rules and increasing investment in infrastructure, the Chancellor has met a core ask of the Scottish Government. But after 14 years of austerity it's going to take more than one year to rebuild and recover.

"There is a risk that by providing more funding for public services while increasing employer national insurance contributions, the UK Government is giving with one hand while taking away with the other.