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Publication - Factsheet

Fiscal framework: factsheet

Last updated
14 June 2024 - see all updates
Topic
Money and tax, Public sector

Detailed information about the fiscal framework agreed between the Scottish and UK Governments.

Overview

The fiscal framework agreement between the Scottish and UK Governments determines how the Scottish Government is funded. It is a non-legislative agreement and underpins the powers set out in the Scotland Act 2016.

The framework comprises several elements, including:

  • how the block grant is adjusted to accommodate further devolution
  • budget management tools (borrowing and reserve powers)
  • independent fiscal institutions and forecasting arrangements
  • dispute resolution and governance
  • the review of the fiscal framework

The framework was initially agreed in February 2016, guided by a set of principles set out in the Smith Commission. It has subsequently been reviewed, with a revised agreement being reached between both governments in 2023. The review was also guided by the Smith Commission Principles and sought to change certain aspects of the original agreement based on a parliament’s worth of experience.

Contact

Email: ceu@gov.scot

First published
20 November 2017
Last updated
14 June 2024 - show all updates

  1. Multiple pages updated.

  2. Multiple pages updated.

  3. Publications page updated with text and link to statement.

  4. Publications page updated with text and link to statement.

  5. Minor update to amend link to annex 'B' in Scottish Government’s Medium Term Financial Strategy.

  6. Added link to the Scottish Government’s Medium Term Financial Strategy.

  7. Added link to letter to the Chief Secretary to the Treasury regarding agreement in principle to commission an independent report on the Block Grant Adjustment arrangements on publications page.

  8. Added link to 22 July letter about the income tax reconciliation process and the provisional 2019-20 income tax reconciliation.

  9. Added link to 15 March letter about the BGAs for the Scottish Budget 2021-2022 on publications page.

  10. Updated following the Scottish Budget 2021-2022.

  11. Link to 23 December letter regarding fiscal powers and flexibility added to publications page.

  12. Link to 7 December letter regarding fiscal powers and flexibility added to publications page.

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