Investing in Scotland's Future: resource spending review framework

This framework document launches the Scottish Government's resource spending review process. It sets the scene for the development of multi-year resource spending plans and opens our public consultation.


Glossary

Austerity

A set of policies that aim to reduce government budget deficits, usually through spending cuts, tax increases, or a combination of both.

Barnett Formula

A formula used by the HM Treasury to calculate consequentials which form the Block Grant to devolved governments in Scotland, Wales and Northern Ireland. The Barnett formula seeks to give these governments a proportion (or consequential) of UK expenditure incurred in policy areas which are devolved.

Budget

A document prepared by the government to present its anticipated tax revenues and proposed spending/expenditure for the coming financial year.

Block grant

The grant received by the Scottish Government made up consequentials of UK expenditure, calculated by the Barnett Formula.

Block grant adjustment

Deductions from the Scottish Government’s total Block Grant to reflect devolved tax receipts or social security expenditure.

Capital spending

Money spent on providing or improving non-current assets, which include land, buildings and equipment, which will be of use or benefit in providing services for more than one financial year.

Capital Spending Review

A review to balance the capital spending ambitions of the new Scottish Government within its fiscal constraints.

Climate emergency

A situation in which urgent action is required to reduce or halt climate change and avoid potentially irreversible environmental damage resulting from it.

Climate justice

A climate justice approach recognises that it is those least responsible for the global climate emergency that are being affected first and most severely by it.

Consequentials

A Barnett Consequential is the change to a devolved administration’s assigned budget as a consequence of changes in spending by the UK Government.

Demand-led

Refers to expenditure which can be predicted at the beginning of the year e.g. the payment of benefits which will depend on the number of eligible claimants. Usually managed through Annually Managed Expenditure (AME).

Fair work

Work that offers effective voice, opportunity, security, fulfilment and respect; that balances the rights and responsibilities of employers and workers and that can generate benefits for individuals, organisations and society.

Fiscal framework

The Fiscal Framework agreement was published alongside the Scotland Act 2016 setting out the new funding arrangements, fiscal rules and borrowing powers for the Scottish Government.

Funding outlook

Projection of future funding built up by forecasting separate elements of funding and then aggregating these to produce a path for the total level of potential funding.

Gross domestic product

A measure of the size and health of a country’s economy over a period of time (usually one quarter or one year).

Just transition

A just transition is both the outcome – a fairer, greener future for all – and the process that must be undertaken in partnership with those impacted by the transition to net zero. Just transition is how we get to a net zero and climate resilient economy, in a way that delivers fairness and tackles inequality and injustice.

National outcomes

The Scottish Government’s broad policy aims.

Net zero

Achieving an overall balance between emissions produced and emissions taken out of the atmosphere.

Priority families

Six household types identified within the Tackling Child Poverty Delivery Plan (2018-22)[19] as being at higher risk of child poverty.

Resource Spending

Money that is spent on day-to-day resources and administration costs.

Resource Spending Review

A review to balance the resource spending ambitions of the new Scottish Government within its fiscal constraints.

Scotland Reserve

Enables the Scottish Government to manage volatility associated with the fiscal powers.

Social security

Monetary assistance from the state for people with an inadequate or no income.

UK Spending Review

Allocation of funding to government departments.

Universal credit

A UK social security payment to help eligible individuals pay for living costs.

Wellbeing economy

An economy that is inclusive and that promotes sustainability, prosperity and resilience, where businesses can thrive and innovate, and that supports all of our communities across Scotland to access opportunities that deliver local growth and wellbeing.

Contact

Email: ResourceSpendingReview@gov.scot

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