Autumn Budget Revision 2022-23: Supporting Document

Introduction

1. This booklet provides information for the Parliament and others in support of the ‘Budget (Scotland) Act 2022 (Amendment) Regulations 2023’ – the Autumn Budget Revision. The Order is a Scottish Statutory Instrument laid before the Scottish Parliament by the Scottish Government in November 2022. The booklet itself has no statutory force – it is produced as an aid to understanding the Order.

2. The purpose of the Autumn Budget Revision is to amend the Budget (Scotland) Act 2022, which authorises the Scottish Government’s spending plans for the financial year 2022-23.

3. The main changes to the Scottish Government’s spending plans, as set out in the supporting document to the Budget Bill, are explained below:

i) Funding changes to reflect deployment of available resources to portfolios (total net increase to the budget of £691.5 million);

ii) technical adjustments (net increase to the budget of £106.5 million);

iii) Whitehall Transfers and HM Treasury allocations to the Scottish Government (£7.9 million); and

iv) the transfer of resources between Scottish Government portfolios.

4. In total these changes will increase the Scottish Government budget by £805.9 million from £56,179.2 million to £56,985.1 million.

5. The purpose of the Autumn Budget Revision is to seek Parliamentary approval for these changes.

Funding Changes

6. Following the completion of the 2022-23 Scottish Budget additional funding has become available via additional Barnett consequentials and the conclusion of the 2021-22 provisional outturn exercise resulting in a carry forward within the Scotland Reserve that exceeded initial assumptions.

7. In areas where underspends have emerged through the monthly budget management and monitoring process, budgets have been reduced and redeployed to areas where pressures have been identified. The areas affected by these transfers are detailed throughout the document.

8. The largest element of funding deployed in the budget revision relates to the cost of living measures announced by the Cabinet Secretary for Finance and Economy during the Stage 3 Budget debate on 10 February. As there was not sufficient time to reflect these amendments to the Budget Bill at the time, this funding is allocated at the next available opportunity which is the Autumn Budget Revision. These amounts total £290 million.

9. The second largest allocation (£180 million) relates to Police and Fire Pensions which has been added to the Justice and Veterans portfolio. This is a volatile demand led budget which has historically been managed in year.

10. The Local Government allocation also includes both the £140 million of additional resource funding announced by the Deputy First Minister on 4th August to support COSLA in their negotiations with the local government workforce as well as the £120 million capital support outlined in his letter to the Finance and Public Administration committee on 7^th September.

11. The First Minister announced an Emergency Budget Review on 12^th August in response to the cost of living crisis. Included within the Autumn Budget Revision are the £33.9 million of additional funding for the measures already committed through the Emergency Budget Review process. This includes £18.9 million for Scottish Child Bridging payment, a further £10 million for the Fuel Insecurity Fund and £5 million for Discretionary Housing Payments..