Budget - provisional outturn 2023 to 2024: briefing note - 20 June 2024

Borrowing

11. The Scottish Government borrowed £104 million for resource expenditure and £300 million for Capital expenditure in 2023-24.

12. Borrowing drawdown decisions are always taken in the light of the in-year budget management position and are finalised at the very end of the financial year to ensure maximum fiscal flexibility.

13. The Medium-Term Financial Strategy sets out the Scottish Government’s overall approach to Capital and Resource Borrowing and our outturn amounts remain within these borrowing policy approaches.

Capital Borrowing

14. The Capital Borrowing policy seeks to maximise the limitations of the fiscal framework in a fiscally sustainable way.

15. Policy to date has been built around ensuring sustainable Capital Borrowing within the fiscal framework limits. With these limits now growing with inflation the dynamics of a sustainable level of Capital Borrowing have changed and therefore the next MTFS will provide further detail on the future approach to Capital Borrowing policy.

Resource Borrowing

16. Resource Borrowing is governed by an entirely different set of rules and therefore our policy approach reflects this.

17. Under the fiscal framework the resource borrowing facility has increased but remains limited. Our policy approach is to consider all of the limited tools available to manage the resource budget to:

• Ensure a balanced budget by the end of each financial year.
• Mitigate volatility in the medium-term resource funding outlook.

Social Security

18. In 2023-24, Social Security Scotland administered 14 benefits; Carer’s Allowance Supplement, Best Start Foods, Best Start Grant – Pregnancy and Baby Payment, Best Start Grant – Early Learning Payment, Best Start Grant – School Age Payment, Funeral Support Payment, Young Carer Grant, Job Start Payment, Scottish Child Payment, Child Winter Heating Payment, Child Disability Payment, Adult Disability Payment, Winter Heating Payment and Carer Support Payment.

19. In 2023-24, the Department for Work and Pensions administered 6 benefits under agency agreements on Social Security Scotland’s behalf: Carer’s Allowance, Personal Independence Payment, Attendance Allowance, Industrial Injuries Disability Scheme, Severe Disablement Allowance, and Disability Living Allowance.

20. During 2023-24 we have launched a new benefit with the introduction of Carer Support Payment in pilot areas and widened eligibility for Best Start Foods. We have also been working to improve our processing times on our disability benefits, while continuing to develop systems and capability to support delivery of the remainder of the devolved benefits outlined in the Social Security (Scotland) Act 2018.

21. The table below provides details of expenditure on each benefit for 2023-24.