Current status: Answered by Ivan McKee on 18 July 2025
To ask the Scottish Government whether any contingent liabilities becoming due for any purpose are (a) met by departmental or central budgets and (b) more likely to be charged to capital or resource budgets.
The Scottish Government has a number of contingent liabilities, which are disclosed in its consolidated accounts each year. The Scottish Government seeks the prior approval of Parliament, via the Finance and Public Administration Committee, before entering into any specific contingent liability unless it arises in the normal course of business or the sum of the risk is £2.5m or less.
The Scottish Government seeks to manage the impact of contingent liabilities crystallising within existing departmental budgets, in line with portfolio accountabilities. Only where necessary would these be funded centrally.
The budget treatment of crystallised contingent liabilities depends on the nature of the underlying transaction, in line with HM Treasury’s Consolidated Budgeting Guidance and accounting regulations. At present based on the latest contingent liabilities, if these were to crystalise there would be more call on capital over resource budgets.