Spring Budget Revision 2023-2024 guide: finance update for the FPAC

C. Update on the Verity House Agreement.

102. In its report on the Autumn Budget Revision the committee asked for an update on the progress of the Verity House Agreement (‘VHA’).

103. The Scottish Government published its 2024-25 Budget on 19 December 2023. As part of the budget document £1 billion of ring-fenced funding which had previously been held within portfolios was baselined into the local government settlement. Details of these amounts are included below and will ensure there is no requirement for these to be managed as in-year transfers, simplifying the budget revision process.

• £521.9 million for Early Learning & Childcare Expansion
• £333.5 million for Living Wage
• £42.3 million for Free Personal and Nursing Care
• £42.2 million for Free School Meals Intervention
• £2.8 million for Free Sanitary Products in Public Places
• £2.4 million for Local Heat and Energy Efficiency Strategies
• £2.1 million for Free Sanitary Products in Schools
• £2 million for Community Justice Partnership Funding
• £1 million Former Housing Support
• £0.7 million for the Blue Badge Scheme

104. The baselining of these amounts in the 2024-25 Scottish Budget highlights our commitment to the VHA which will continue as work begins on the 2025-26 Scottish Budget. This is an ongoing process which the Scottish Government is fully committed to it. The Scottish Government agreed to the baselining of these amounts prior to any formal agreement on the Accountability and Assurance Framework with COSLA.

105. Scottish Government will continue to work with COSLA to further develop and agree a Fiscal Framework between the Scottish Government and Local Government which will support alignment of shared priorities, enhance the fiscal empowerment of local government; and, a Shared Programme, Outcomes, Monitoring and Accountability Framework enabling better collaboration to jointly deliver our shared priorities. This will include exploration of opportunities for further funding from portfolios to be baselined into the General Revenue Grant.