Scotland’s Finance Secretary says she may have to “potentially revisit” her tax plans amid reports the Chancellor will increase income tax in the Budget this month.

Shona Robison said the Scottish Government had a “very limited” set of levers to respond if Rachel Reeves makes the tax decision on November 26.

The Fraser of Allander Institute has estimated a 2p income tax hike in the UK Budget could cut Scotland’s funding by £1 billion because of the way the fiscal framework operates.

Ms Robison has requested an urgent meeting with the Chancellor, saying Ms Reeves should ditch her fiscal rules and instead deliver investment “to grow the economy and support people with the cost of living”.

Speaking to BBC Scotland’s Sunday Show, Ms Robison said the fiscal framework does not take account of changes to national insurance – another levy the Chancellor is reportedly considering changing.

The fiscal framework governs the public money coming to the Scottish Government, but Ms Robison said the system is now in “uncharted territory” as it did not envisage simultaneous changes to both income tax and national insurance.

Ms Robison was asked if she would raise Scottish income tax rates in response to any income tax increase in the Chancellor’s Budget.

She said: “I’m not going to set out here today what our plans for income tax are when we don’t know what we’re going to face on the 26th…

“If we end up in this scenario, then the levers available to us are very limited.

“Unless there is flexibility given to us through the fiscal framework – which would be my first ask, that we need to have that flexibility.

“Because we don’t want to raise taxes, we had already set out in the tax strategy that we want to see that stability till the end of the Parliament.

“But in the event of unforeseen exceptional circumstances, clearly we would have to potentially revisit that.”

Under the devolution settlement, the Scottish Government has powers to adjust income tax rates north of the border.

An HM Treasury spokesperson said earlier: “Our record funding settlement for Scotland will mean over 20% more funding per head than the rest of the UK.

“We have also confirmed £8.3 billion in funding for GB Energy-Nuclear and GB Energy in Aberdeen, up to £750 million for a new supercomputer at Edinburgh University, and are investing £452 million over four years for City and Growth Deals across Scotland.

“This investment is all possible because our fiscal rules are non-negotiable, they are the basis of the stability which underpins growth.”

Pakistan’s manufacturing industry, once considered a key driver of economic growth and employment, is undergoing one of its worst downturns in recent history. The sector has seen a steep 46 per cent fall in private investment over the past six years, raising fears of long-term stagnation among economists and industrial experts.According to The Express Tribune report cited by news agency ANI, private investment in manufacturing dropped from PKR 706 billion in FY2018–19 to just PKR 377 billion in FY2024–25, marking the weakest phase of industrial growth in more than a decade. Ali Imran Asif, Senior Executive Committee Member of the Lahore Chamber of Commerce and Industry (LCCI), warned that the current level of investment was “not enough to even replace depreciating machinery,” suggesting a deep erosion of Pakistan’s industrial foundation.“We are not dealing with a short-term dip; we are watching our industrial base disintegrate,” Asif said, as per The Express Tribune. He stressed that without structural reforms focused on productivity, innovation, and competitiveness, the country could face prolonged industrial paralysis.The combined contribution of the manufacturing and mining sectors to Pakistan’s GDP has remained stagnant at around 13.2 per cent over the past six years. Frequent policy changes, high energy costs, and volatile currency movements have severely affected export-oriented sectors such as textiles, leather, and engineering goods. Large-scale manufacturing output fell 1.5 per cent in FY25, reversing the 0.92 per cent growth recorded in FY24.In contrast, neighbouring economies like India and Bangladesh have maintained strong industrial growth supported by stable policies and export diversification. Economist Shahid Saleem noted that Pakistan’s slump is not merely the result of high interest rates but also reflects policy inconsistency and eroding investor confidence. Import restrictions and weak domestic demand have forced many factories to run below capacity, he added.Experts, as cited by ANI, warned that unless Pakistan swiftly formulates a credible industrial revival plan and ensures policy stability, the manufacturing sector’s decline will deepen further, undermining exports, employment and broader economic resilience.