Autumn Budget Revision 2023-2024 guide: finance update
Background information provided to the Finance and Public Administration Committee (FPAC) to help with members' scrutiny of the Autumn Budget Revision (ABR) 2023 to 2024.
C. Scottish Budget comparators
65. In your letter to the Deputy First Minister the committee requested that 2024-25 Scottish Budget be presented so that the current year figures are compared to 2022-23 outturn and 2023-24 forecast outturn.
66. Clearly, this request relates directly to the budget revision process due to the large volume of internal transfers and technical changes which mean the starting budget position differs materially from the final budget and the outturn. It is not possible to do a like for like comparison between outturn and current budget figures as different factors require to be taken into account. This includes the impact of in-year transfers from policy areas to delivery bodies, technical changes and the impact of one-off funding changes.
67. For example, we are currently in the midst of a three year transition period for implementing IFRS16. For 2022-23 and 2023-24, changes to the budget were applied as part of the in-year budget position. With the transition period ending it is likely that the IFRS16 figures will be baselined into 2024-25 budget meaning a direct comparison to starting budgets are not possible.
68. Furthermore, the IFRS16 adjustments for 2022-23 are far higher than the figures in 2023-24 or 2024-25 as the first year of the transition has required far greater capital budget cover to cover existing leases. This would distort the prior year comparative and make it appear there has been a significant year on year cut to certain capital budgets in 2023-24.
69. A comparator follows for illustrative purposes, noting the caveats set out above:
| 2022-23 | ||||||
|---|---|---|---|---|---|---|
| Portfolio | Budget Bill | Internal Transfers | Funding Changes | IFRS16 Changes | Spring Budget Revision | Outturn |
| NHS Recovery Health & Social Care | 18,043 | (994) | 738 | 85 | 17,872 | 17,832 |
| Social Justice | 5,680 | (250) | 181 | (1) | 5,610 | 5,570 |
| WEFWE | 1,869 | (16) | (160) | 5 | 1,697 | 1,602 |
| Education and Skills | 4,793 | (202) | (515) | 4 | 4,080 | 3,950 |
| Justice | 3,230 | 9 | 485 | 13 | 3,736 | 3,708 |
| TNZJT | 3,843 | (8) | (45) | 759 | 4,549 | 4,223 |
| RALR&I | 1,185 | 6 | (80) | (2) | 1,108 | 1,064 |
| CEAC | 370 | (18) | (5) | 7 | 353 | 348 |
| DFM & Finance (includes LG) | 17,009 | 1,472 | 1,067 | 6 | 19,555 | 19,850 |
| COPFS | 181 | 1 | 8 | 5 | 195 | 194 |
| Scottish Parliament and Audit Scotland | 140 | - | 7 | 0 | 147 | 145 |
| Total | 56,342 | 0 | 1,681 | 879 | 58,903 | 58,486 |
| 2023-24 | ||||||
|---|---|---|---|---|---|---|
| Portfolio | Budget Bill | Internal Transfers | Funding Changes | IFRS16 Changes | Autumn Budget Revision | Forecast Outturn |
| NHS Recovery Health & Social Care | 19,152 | (1,060) | 50 | 168 | 18,311 | 18,311 |
| Social Justice | 6,718 | (80) | 35 | 0 | 6,673 | 6,673 |
| WEFWE | 1,386 | 31 | - | 6 | 1,423 | 1,423 |
| Education and Skills | 4,887 | (129) | 6 | 11 | 4,775 | 4,775 |
| Justice | 3,452 | 2 | 47 | 15 | 3,516 | 3,516 |
| TNZJT | 4,344 | (33) | - | 261 | 4,572 | 4,572 |
| RALR&I | 1,230 | (22) | (31) | 0 | 1,177 | 1,177 |
| CEAC | 343 | (24) | 0 | 0 | 320 | 320 |
| DFM & Finance (includes LG) | 17,958 | 1,316 | 267 | 9 | 19,550 | 19,550 |
| COPFS | 197 | - | - | 2 | 199 | 199 |
| Scottish Parliament and Audit Scotland | 146 | - | - | 6 | 153 | 153 |
| Total | 59,813 | 0 | 374 | 479 | 60,666 | 60,666 |
70. In her response of 17 October the Deputy First Minister advised she is currently giving careful consideration to the presentation of the 2024-25 Scottish Budget and any changes or additional disclosures that may be used.
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