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Chamber and committees

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 10 August 2025
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Displaying 1169 contributions

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Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

It is certainly an important observation. However, of course, the policy of landfill tax sits as part of a broader suite of objectives aimed at achieving a circular economy, which I know that the committee has been taking a keen interest in. I am conscious that, more broadly, the committee will be beginning its scrutiny of the Aggregates Tax and Devolved Taxes Administration (Scotland) Bill, which I am looking forward to engaging with you on.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

I appreciate that position, convener. It is something that we will take away to consider.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

I do not have that information available, convener.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

As the committee will be aware, we continue to face challenging economic circumstances. Continued inflationary pressures, particularly around public sector pay, have put real pressure on the Scottish budget over the course of the financial year. Despite some improvement in the overall funding position since the autumn budget revision, managing the impact of pay deals within the overall position has been challenging. Reprioritisation of budgets has been necessary due to continued inflationary pressures, including on public sector pay, and to support priority areas, including the on-going funding for Ukrainian displaced people.

In her letter to the committee from November, ahead of the United Kingdom autumn fiscal event, the Deputy First Minister set out the tough choices that the Scottish Government has been required to make to ensure that we can achieve a balanced budget. The spring budget revision shows the outcome of those tough choices being actioned.

The spring budget revision provides the final opportunity to formally amend the Scottish budget for 2023-24 and contains the usual four categories of changes. The net funding changes increase the budget by £546.8 million. These changes include: providing £750.8 million to health to support services, fund pay rises and provide support as it continues to recover from the Covid-19 pandemic; £134 million to police and fire pensions; £51.8 million net to social security benefit expenditure; and £41.2 million to the Ukrainian resettlement scheme. To help fund these priority areas, it has been necessary to reprioritise budgets in the way in which the Deputy First Minister outlined. The technical, Whitehall and internal transfers are presented in the document in the usual way.

There are some extremely large technical adjustments included within the spring budget revision. These include a £3.1 billion decrease in the annually managed expenditure budget requirement for national health service and teachers’ pensions, and a £735 million increase in the non-cash budget cover required for student loans. From our previous discussions, I know that the committee is aware that those changes do not impact the Scottish Government’s discretionary spending power. The adjustments reflect latest estimates and are used to set the final budgets that outturn is reported against in the annual accounts. They are required to limit material differences being reported against the budget totals and accounts and try to avoid the confusion around underspends that emerged in previous discussions in Parliament.

The supporting document to the spring budget revision and the finance update prepared by my officials provide further background on the net changes, as well as updates on information requested by the committee.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

We are all familiar with the rules that govern these inquiries and their autonomy and independence.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

When inquiries are established and in train, we of course comply with the legislative requirements .

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

Decisions on borrowing, which are one of the few flexibilities that we have, are taken at the end of the year. The capital position has allowed us to move to the position that you have outlined.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

Yes.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

Could you clarify what your question is, Mr Mason?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

We have seen the Scotland reserve operate in different ways. Clearly, given the way in which we have to balance our budget, it is unavoidable that underspend will be generated, and, sometimes, that underspend will emerge after the end of the year. We have also seen the reserve play an important role when we received late consequentials, particularly when we were coming out of the pandemic period, which has allowed us to ensure that resources better align with the optimal time to spend them. We have seen the reserve operating in those two ways.

As to whether the reserve develops into more of a reserve rather than continues as a function for allowing money to be moved from one year to the next, that will depend on a number of factors. The most prominent of those will be the fiscal settlements that we receive from the UK Government, and there will be demand commitments and so on. Is there anything that you want to add, Scott?