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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 23 June 2025
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Displaying 1169 contributions

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Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 March 2023

Tom Arthur

Annex A in the document provides a breakdown of the additional funding in the fiscal resource funding envelope. Niall Caldwell can talk you through that.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 March 2023

Tom Arthur

You have hit the nail on the head, because that is the nature of demand-led budgets.

It is important to recognise that the total of the various lines that you identified is still significantly less than 1 per cent of the total Scottish Government budget. Therefore, although it is a significant amount of money in and of itself in absolute terms, it is quite small relative to the whole Scottish budget.

We continue to learn and refine with each budget. The important point to recognise in relation to many of those particular demand-led schemes is that there is no change to criteria or eligibility; ultimately, it reflects the demand that exists. The past financial year has of course been extraordinary, given the macroeconomic factors at play in the form of a combination of the legacy of the pandemic and the significant inflation that we have seen as a consequence of Russia’s invasion of Ukraine, which I know that we all recognise is impacting the economy not only in Scotland but right across the United Kingdom and, indeed, the wider world.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 March 2023

Tom Arthur

One of the portfolios that you identified contains social security and local government, which I recognise are two very significant elements of the Scottish budget. Of course, within the broader changes that take place are the usual and routine transfers that take place between the portfolio to which a budget is allocated at budget and the portfolio where delivery takes place.

Niall Caldwell might want to come in on that.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 March 2023

Tom Arthur

Ultimately, the issue is to do with accounting requirements. Given the technical nature of it, Niall Caldwell might want to unpack that.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 March 2023

Tom Arthur

I am conscious that there is keen interest in where there is discretionary spend—money that the Scottish Government can spend on public services or a range of other activities—but there is other funding that is non-discretionary, which does not always command the same attention in the political debate. Given the interests that the committee has expressed, I will be happy to write back to the committee to provide more detail on the area.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 March 2023

Tom Arthur

To clarify, I referred to discussions that I have not had; I cannot speak on behalf of colleagues or other officials.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 March 2023

Tom Arthur

The total cost to build the ferries since they came into public ownership will be taken to £202.6 million, inclusive of £6.2 million of contingency costs.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 March 2023

Tom Arthur

Good morning. My sincere apologies for my delay in arriving, and my sincere thanks to the committee for being so accommodating.

The spring budget revision provides the final opportunity to formally amend the Scottish budget for 2022-23. It contains the usual four categories of changes. The funding changes increase the budget by £502.3 million. They include the provision of £427 million to health and £200 million to Ukrainian resettlement.

As usual, there are a number of technical adjustments, Whitehall transfers and transfer of funds between portfolios. The supporting document to the spring budget revision, and the finance update that was prepared by my officials, provide background on the net changes. It is necessary to reflect those adjustments to ensure that the budget is consistent with the accounting requirements and with the final outturn that will be reported in our annual accounts.

However, there are a number of differences between how expenditure is classified for the Scottish budget and how it is classified by HM Treasury—which, ultimately, governs how we deploy our discretionary resources. The finance update provides some more detail on those differences, on the movements in funding since the spring budget revision was laid in the Parliament, and on the wider fiscal context in which we have to operate. It includes an annex that details how our resource borrowing limits are calculated.

I will be happy to answer any questions that the committee may have.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 March 2023

Tom Arthur

Do I understand you correctly, Mr Johnson? Are you factoring in the transfers to local government on health expenditure as well?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 March 2023

Tom Arthur

Do you want to come in on that, Niall?