THE Scottish Government could be forced to make "deep cuts" to public services if ministers are not given new financial powers in the wake of the coronavirus pandemic, Finance Secretary Kate Forbes has said.

She warned that as it stands it is "increasingly difficult" for the Scottish Government to fund its response to the virus without impacting on other areas.

It is now "critical" the Scottish Government gets new borrowing powers, she said, arguing this is the only way ministers can reject a "return to austerity".

Forbes became Scottish Finance Secretary in February, shortly before coronavirus struck.

Since then, ministers have put in place a number of schemes aimed at helping both businesses and communities left struggling because of the pandemic – with Forbes saying cash from the UK Government had provided "about £3.6 billion" of the £4bn being spent on these.

READ MORE: Coronavirus 'came to Scotland from Europe', scientists say

But writing in The Scotsman newspaper, she said: "Our funding needs for the NHS, business and the third sector are greater than the sums provided by the UK Government and, as things stand, the Scottish budget will have to make up the balance.

"While we have been able to re-prioritise some existing budgets, it is becoming increasingly difficult without impacting on vital public services.

"The devolved arrangements were not designed for a health emergency and an economic crisis of this scale.

"With a global pandemic raging, fast decisions on public spending are required and it is critical that we have borrowing powers and greater financial flexibility to respond effectively.

"Otherwise, the only way the Scottish Government will be able to fund our ongoing response would be to make deep cuts to other services."

She added: "The situation is made even more difficult if promised funding is not delivered, as happened when we were informed that £70 million of funding for businesses and charities would no longer come to Scotland.

"There is a real risk that this could be repeated on a far larger scale, compounding the need for the Scottish Parliament to have greater fiscal powers."

"Additional funding is welcome but if there isn't going to be anything further then at the very least we need the powers to manage financial uncertainty and the guarantees of current promises.

"The Scottish Government will always resist a return to austerity, but only with greatly enhanced fiscal powers can we ultimately reject it."

A UK Government spokeswoman said: "Scotland is benefiting from an unprecedented package of UK Government support.

"The Scottish Government receives a share of UK Government borrowing through the Barnett formula, which is currently providing £3.7bn of funding.

"This is on top of the support people in Scotland are receiving through UK-wide measures such as business loans and the job retention scheme.

"The Scottish Government additionally has its own agreed borrowing powers and a £700m Scotland reserve."