Budget - provisional outturn 2023 to 2024: briefing note - 20 June 2024
The 2023 to 2024 provisional HM Treasury fiscal outturn is £49.3 billion against a fiscal budget of £49.6 billion. The remaining funding of £292 million (0.6% of the total budget) has been carried forward within the Scotland Reserve if confirmed at Final Outturn with no loss of spending power.
Fiscal Framework Review 2023
26. A new Fiscal Framework agreement was announced on 2 August 2023 following a review.
27. The review confirms that the Indexed Per Capita mechanism for calculating Block Grant Adjustments will be adopted permanently, ensuring that the Scottish Budget is protected from the risk of slower population growth.
28. The Scottish Government’s resource borrowing capacity to deal with forecast error will be increased by £300 million (to £600 million) in 2023-24 prices. This limit will be indexed in line with inflation, as measured by the GDP deflator.
29. Capital borrowing limits (£450 million annual limit; £3 billion cumulative limit) will also increase in line with inflation from 2024-25.
30. The drawdown limits on Scotland’s reserve will be abolished. The overall reserve limit will also be indexed in line with inflation from 2024-25.
31. The provision for a Scotland-specific Economic Shock has been removed; this is now covered by improved unconditional resource borrowing limits.
32. There are also changes to the calculation of the reduction applied to the Scottish Block Grant as part of the devolution of Crown Estate revenues and Fines, Forfeitures, and Fixed Penalties (FFFPs) Full details of the changes can be found here; Fiscal framework: agreement between the Scottish and UK Governments - gov.scot (www.gov.scot)
Contact
Email: fiscalmanagement@gov.scot
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