Investing in Scotland's Future: Resource Spending Review

4. Activity and Spending Envelopes by Budget Area

Health and Social Care

Portfolio Responsibilities

The COVID-19 pandemic has affected every single person in Scotland. Our recovery from it is much more than just a financial recovery. It is about the renewal of Health and Social Care in Scotland. By investing strategically now, we not only improve health outcomes for the people of Scotland, but we also set a sustainable framework for the future.

The Resource Spending Review will support:

• The recovery and redesign of services to increase capacity and deliver a financially, environmentally and socially sustainable health service with continued provision of essential COVID-19 services, including building on the success of the COVID-19 vaccinations programme. Our Health and Social Care workforce is vital to delivering this support and care that we all, in our own ways, depend upon. We will continue to invest in measures to support fair work and pay and continue to support the wellbeing of our health and social care staff and unpaid carers.
• The establishment of the National Care Service, bringing social care into parity of esteem with healthcare and transforming the provision of this essential service. This will be backed by a 25 per cent increase in social care investment – equivalent to more than £840 million – which will also support measures to strengthen the implementation of self-directed support, improve prevention and early intervention and increase community-based support.
• Delivering quality community care, allowing us to reduce pressures on frontline hospital services. We will continue to invest in, and improve our multi-disciplinary approach, rooted in the GP Contract, over the RSR period to improve integration with mental health, addiction, and social care services to deliver enhanced care based on personal individual needs.
• The continuation of our vital work to reduce health inequalities. We will invest £250 million over the lifetime of this parliament to tackle drug-related deaths and improve lives through our National Mission, including delivering MAT Standards and our Treatment Target, expanding Residential Rehabilitation and introducing long term funding for the third sector. We will bring forward investment plans for enhanced action through 'deep end' general practice, supporting population health in our communities where need is greatest.

Spending Plans

Table 2: Health and Social Care Portfolio Spending Plans

Level 2*	2022-23 £m	2023-24 £m	2024-25 £m	2025-26 £m	2026-27 £m
Health and Social Care	17,084	17,527	17,972	18,513	19,006
Food Standards Scotland	23	23	23	23	23
Total	17,106	17,550	17,995	18,536	19,029

* Figures include rounding adjustments and projected internal running costs which are subject to change as programming is finalised.

Social Justice, Housing and Local Government

Portfolio Responsibilities

The Social Justice, Housing and Local Government (SJHLG) portfolio is responsible for leading the national mission to reduce child poverty, creating a fairer Scotland and tackling inequalities. Funding is prioritised towards action that we know will contribute to meeting our child poverty targets, in conjunction with other portfolios.

The Resource Spending Review will support:

• Action to tackle child poverty with the provision of almost £300 million over the spending review for tackling child poverty and social justice. This includes fulfilling our £50 million commitment announced alongside Best Start, Bright Futures – our second tackling child poverty delivery plan to drive forward actions set out in the plan to deliver on our national mission to tackle child poverty. We will also continue to invest in our parental transitions fund with up to £50 million of funding over the spending review. In addition, our Social Innovation Partnership work will be scaled up with over £60 million being provided for programmes.
• Vital day to day Local Government services with £42.6 billion of funding over the term of the spending review
• The provision of wider social justice support to those impacted by the cost of living crisis though our financial wellbeing programmes.
• Social security and welfare with over £23 billion worth of payments in total. This includes providing a total of almost £1.8 billion for the Scottish Child Payment which we will increase to £25 at the end of 2022 and extend to under 16s, as outlined in the second Tackling Child Poverty Delivery Plan.
• Continued investment to ensure our existing homes offer everyone a warm, safe home that meets their needs; investing over £600 million to prevent and end homelessness; support households struggling to sustain tenancies and mitigate the bedroom tax and benefit cap and through discretionary housing payments; and deliver rented sector reform for more affordable, high-quality homes, rented on a fair basis.

Spending Plans

Table 3: Social Justice, Housing and Local Government Portfolio Spending Plans

Level 2*	2022-23 £m	2023-24 £m	2024-25 £m	2025-26 £m	2026-27 £m
Social Security Assistance	3,949	4,958	5,604	5,983	6,359
Local Government	10,616	10,616	10,616	10,616	10,716
Social Security (excluding Social Security Benefits)	404	392	349	323	324
Building Standards	4	4	4	4	4
Housing	149	152	165	172	184
Tackling Child Poverty and Social Justice	34	37	72	96	97
Connected Communities	5	5	5	5	5
Equalities	45	44	44	44	45
Third Sector	22	21	24	24	27
Office of the Scottish Charity Regulator	3	3	3	3	3
Scottish Housing Regulator	5	5	5	5	5
Total	15,235	16,237	16,890	17,274	17,769

* Figures include rounding adjustments and projected internal running costs which are subject to change as programming is finalised.

Finance and Economy

Portfolio Responsibilities

The Finance and Economy portfolio is at the heart of Scottish Government's ambition to build a more prosperous, more productive and more competitive economy: a resilient and fairer economy with strong and sustainable foundations and embracing the opportunities of new technologies.

The National Strategy for Economic Transformation (published in March) sets out the ambitions for Scotland, including stimulating entrepreneurship; building new markets; increasing productivity across our regions; developing skills; and ensuring fairer and more equal economic opportunities. The Finance and Economy portfolio and its funding will directly support delivery of the National Strategy for Economic Transformation five transformational programmes alongside funding and support from other portfolios and partners.

The Resource Spending Review will support:

• Our International Trade and Investment Plans to boost exports and attract inward and capital investment to Scotland. These plans will continue to set the direction on New Market Opportunities, attracting the high-quality investment and technologies required to deliver our ambitions in areas such as Energy Transition, Space, and the Decarbonisation of Transport. We will also establish an Investor Panel, chaired by the First Minister, to attract capital investment to support the transition to net zero.
• Digital transformation, supported by the development of common platforms and adoption of cloud-based technology. This will support modern citizen focused public services as well as the better outcomes for Scotland's citizens through programmes such as bringing 300,000 households online via the Connecting Scotland programme, enabling access to gigabit and superfast broadband via the R100 connectivity programme and delivering on NSET objectives via expansion of CivTech.
• Investment to strengthen our employability offer to parents, as set out in the Tackling Child Poverty Delivery plan 'Best Start, Bright Futures', through actions taken over the remainder of the parliament, aiming to support up to 12,000 parents to access and sustain employment, and to support up to 3,000 parents already in-work to increase their earnings.
• The continued delivery of Ministers' statutory responsibilities and policies for the operation of the planning system and a package of reforms to transform Scotland's Planning system and as well as continued investment in our communities and places.

Spending Plans

Table 4: Finance and Economy Portfolio Spending Plans

Level 2*	2022-23 £m	2023-24 £m	2024-25 £m	2025-26 £m	2026-27 £m
Scottish Public Pensions Agency	19	19	19	19	19
Revenue Scotland	7	7	8	8	8
Scottish Fiscal Commission	2	2	3	2	2
Other Finance	50	55	55	55	54
Digital	36	40	43	40	42
Cities Investment, Regeneration and Planning**	30	36	36	34	30
Registers of Scotland***	-	-	-	-	-
Economic and Consumer Advice****	13	11	11	11	10
Enterprise, Tourism and Trade*****	260	253	228	226	237
Scottish National Investment Bank******	9	7	4	1	-
Employability and Training	124	125	154	168	224
Ferguson Marine	2	2	2	2	2
Total	553	556	561	566	629

* Figures include rounding adjustments and projected internal running costs which are subject to change as programming is finalised.

** Cities Investment, Regeneration and Planning level 2 expanded to include Planning which was previously a separate level 2.

*** Registers of Scotland are broadly self-funded by fees they charge for their services.

**** Economic and Consumer Advice level 2 expanded to include Accountant in Bankruptcy which was previously a separate level 2.

***** Enterprise Tourism and Trade level 2 expanded to include all the Enterprise Agencies (Scottish Enterprise, Highlands and Islands Enterprise and South of Scotland Enterprise) and Visit Scotland.

****** Over the spending review period it is anticipated that the Bank will gradually increase its revenue income to cover operating costs such that by 2026-27 it will become self-funded.

Education and Skills

Portfolio Responsibilities

A key priority for this Government continues to be improving the life chances of our children and young people. The Education and Skills (E&S) portfolio invests in changing lives for the better, including support to learners in our schools, colleges, universities and those participating in skills and community learning and development programmes.

The Resource Spending Review will support:

• Funding to support the recruitment of 3,500 teachers and 500 support staff. This will ensure we have enough people with the right expertise working to deliver improved learning and societal outcomes for all children and young people in schools in Scotland, whatever their background and wherever they are being educated.
• Investment of £1 billion over the course of this parliament to tackle the poverty related attainment gap and support education recovery through the Scottish Attainment Challenge.
• Following on from the successful delivery of 1,140 hours of high quality funded early learning and childcare, we will progress work to build a system of school age childcare that is free to those on the lowest incomes and consider how we can most effectively invest in early years support for the families who need it most. This will be supported by a strategic childcare plan, to be published later this summer.
• Implementation of measures to reduce the cost of the school day, including expanding free school meal provision, continuing to provide funding for school clothing grant, roll-out of digital devices and connectivity to Scotland's school pupils, a curriculum free of core charges and free music tuition.

Spending Plans

Table 5: Education and Skills Portfolio Spending Plans

Level 2*	2022-23 £m	2023-24 £m	2024-25 £m	2025-26 £m	2026-27 £m
Learning	532	548	548	568	813
Children and Families	194	195	195	195	195
Early learning and childcare	57	57	57	57	307
Higher education and student support	349	349	349	349	349
Scottish Funding Council	1,502	1,501	1,501	1,501	1,501
Advanced Learning and Science	23	23	23	23	37
Skills and Training	271	270	270	270	270
Total	2,927	2,943	2,943	2,963	3,472

* Figures include rounding adjustments and projected internal running costs which are subject to change as programming is finalised.

Justice and Veterans

Portfolio Responsibilities

The Justice & Veterans portfolio has responsibility for the civil, criminal and administrative justice systems, which include Scotland's prisons, courts, tribunals, the legal aid system, and criminal justice social work services. It supports the police and fire and rescue services and community safety work thus supporting safe, secure, and more resilient communities. The Veterans part of the portfolio coordinates support for the Armed Forces community, ensuring no disadvantage in accessing public services and support, so promoting Scotland as a destination of choice for Service leavers.

The Resource Spending Review will support:

• Over £50 million in annual funding for both recovery and reform, to support justice partners to address the unavoidable backlog of cases built up during the pandemic, and to deliver system wide transformations, including shifting the balance between custody and community-based interventions.
• Front-line victim support services with an investment of £48 million over 3 years through the newly created Victim Centred Approach Fund which also supports the overall vision for Justice - to embed person centred, trauma informed practices throughout our services.
• Continued investment in the modernisation and efficiency of the justice system, including the new Digital Evidence Sharing Capability (DESC) which will allow users such as police officers, prosecutors, court staff and defence agents to digitally access evidence in a more efficient and user-friendly way.

Spending Plans

Table 6: Justice and Veterans Portfolio Spending Plans

Level 2*	2022-23 £m	2023-24 £m	2024-25 £m	2025-26** £m	2026-27 £m
Community Justice	47	47	47	47	47
Judiciary	39	39	39	39	39
Criminal Injuries Compensation	16	16	16	16	16
Legal Aid	151	151	151	151	151
Safer and Stronger Communities	14	14	14	14	14
Police Central Government	95	95	95	95	95
Police and Fire Pensions**	351	351	351	466	481
Scottish Prison Service	370	370	370	370	370
Miscellaneous	117	117	117	117	117
Scottish Police Authority	1,246	1,246	1,246	1,246	1,246
Scottish Fire and Rescue Service	294	294	294	294	294
Scottish Courts and Tribunals	100	100	100	100	100
Total	2,839	2,839	2,839	2,954	2,969

* Figures include rounding adjustments and projected internal running costs which are subject to change as programming is finalised.

** Figures in 2025-26 and 2026-27 reflect changes in the budgeting approach to police and fire pensions.

Net Zero, Energy and Transport

Portfolio Responsibilities

The Net Zero, Energy and Transport (NZET) portfolio is responsible for achieving a net zero carbon emission Scottish economy in line with the Scottish Government Climate Change Plan which requires all portfolios to respond to the global climate emergency. The portfolio is also charged with protecting and enhancing our natural environment and providing an effective and accessible transport network across Scotland. While there are significant challenges in this space, there are also significant opportunities to diversify our economy, create good, green jobs, and to lead the world in a just transition to net zero.

The portfolio is responsible for climate change policy; heat and energy; transport; environment, forestry and land reform policy, strategy and delivery. The portfolio also leads on strategic infrastructure planning and regular reporting on major projects and programmes.

The portfolio's spending plans include significant investment in action to tackle the twin challenges of climate change and biodiversity loss, supported by £660 million in income from the recent ScotWind Off-Shore Leasing Round, which is itself a major milestone in our journey to Net Zero. This investment includes £210 million of ScotWind legacy investment in 2026-27 to secure lasting benefit for communities from this revenue in the context of Scotland's climate change ambitions, our commitment to tackle the biodiversity crisis and Scotland's green recovery from the COVID-19 pandemic. We will work with COSLA and local authorities to deliver this legacy investment from ScotWind in a way that directly benefits communities.

The investment required to address the climate crisis is weighted towards capital funding (including financial transactions). The targeted review of capital spending carried out alongside this Resource Spending Review supports critical low carbon capital spending, with an increase of over half a billion pounds directed towards net zero programmes to address the climate crisis over the next three years.

The Resource Spending Review will support:

• Action to address climate change. We will increase resource spend to deliver our Heat in Buildings strategy up to £75 million per year, directly supporting £1.8 billion of overall public investment (including capital and financial transactions) across this parliament to decarbonise over a million homes and 50,000 non-domestic buildings by 2030. Over the spending review period, we will also commit £4 million resource spend, alongside at least £150 million of capital and financial transaction investment, for the 10-year North East and Moray Just Transition Fund to help accelerate the transition to a fairer, greener economy, creating jobs in low carbon industries and contribute to the region's future prosperity.
• Action to tackle the twin challenges of biodiversity loss and climate change, providing £95 million of further investment across the spending review period to support the scaling-up of activity to meet our annual target of 18,000 hectares of woodland creation target by 2024-25, supporting actions to drive Scotland's circular economy, and delivery of our ambitious programmes of nature based solutions such as peatland restoration, and action to address biodiversity loss, for example, through the commitment of £65 million over the lifetime of the parliament for the Nature Restoration Fund, part of our wider £500 million investment in Scotland's natural environment.
• Scotland's transport network, including over £4.2 billion across the spending review period on our bus, rail and ferry services as well as investing up to £150 million in resource to support capital expenditure across the spending review period in active travel, as part of a shift of transport funding to walking, wheeling and cycling – supporting our commitment to cut car kilometres by 20 per cent by 2030, and enabling Active Travel funding to reach a combined annual budget of £320 million by 2024-25 in line with the Bute House Agreement.

Spending Plans

Table 7: Net Zero, Energy and Transport Portfolio Spending Plans

Level 2*	2022-23 £m	2023-24 £m	2024-25 £m	2025-26 £m	2026-27 £m
Active Travel, Low Carbon and Other Transport	69	80	97	102	110
Air Services	59	55	53	51	54
Climate Change & Land Managers Renewables Fund **	27	29	28	30	239
Concessionary Fares and Bus Services	373	382	404	462	500
Energy	65	78	80	85	94
Environmental Services	144	147	141	146	147
Environmental Standards Scotland	2	3	3	3	3
Ferry Services	207	209	217	223	231
Forestry and Land Scotland	17	17	17	16	16
Land Reform	6	8	9	11	11
Motorway & Trunk Roads	277	271	272	277	285
Rail Services	409	407	401	407	418
Research, Analysis & Other Services	37	35	34	33	34
Scottish Forestry	39	46	47	45	45
Scottish Water	(97)	(98)	(98)	(98)	(98)
Total	1,633	1,669	1,704	1,793	2,088

* Figures include rounding adjustments and projected internal running costs which are subject to change as programming is finalised. Negative numbers are shown in brackets.

** Funding increase in 2026-27 will support delivery of future climate change policies to meet statutory climate change targets and commitments.

Rural Affairs and Islands

Portfolio Responsibilities

Rural Affairs and Islands (RA&I) is a diverse portfolio which includes farming and food production, animal health and welfare, rural and island communities, food and drink, crofting, fisheries and aquaculture. The reach of the portfolio is broad and vital, supporting the Scottish Government's overarching ambition to tackle climate change and biodiversity loss. Our priorities in this parliament are to reform and transform key areas to help make Scotland greener and fairer. We will create a more prosperous country by safeguarding the natural environment and harnessing the power of all of our people and our natural assets. Sustainability is at the heart of all that we do.

The Resource Spending Review will support:

• Investment in the transformation of agriculture and farming, to ensure we support and prepare a thriving sector that will fully contribute to our net zero and environmental ambitions.
• Our determination to deliver economic recovery and resilience in our rural, coastal and island communities, including rural businesses, the third sector, food and drink industries, alongside fisheries, farming and crofting.
• Delivery of a strategic approach to the management of our marine resource which supports ecosystem health, improved livelihoods, economic prosperity, social inclusion and wellbeing.

Spending Plans

Table 8: Rural Affairs & Islands Portfolio Spending Plans

Level 2*	2022-23 £m	2023-24 £m	2024-25 £m	2025-26 £m	2026-27 £m
Agricultural Support and Related Services	738	733	734	732	736
Rural Services	43	44	45	47	47
Fisheries	16	6	5	5	5
Marine	82	94	93	98	96
Islands	3	3	2	3	3
Total	881	879	879	884	885

* Figures include rounding adjustments and projected internal running costs which are subject to change as programming is finalised.

Constitution, External Affairs & Culture

Portfolio Responsibilities

The Constitution, External Affairs & Culture (CEAC) portfolio engages at home and internationally to enhance Scotland's reputation, increase economic success, prosperity and wellbeing, support Scotland's diverse and evolving culture and major events sectors, promote access to our historic environment, and promote Scotland as a great place to live, visit, work, study and do business. It is also responsible for co-ordinating constitutional policy.

Our vision is for Scotland to be a thriving, inclusive and entrepreneurial country, delivering a just transition to a net zero, nature-positive, wellbeing economy promoting health and wellbeing through access to culture, ensuring this is enjoyed by new and diverse audiences and future generations right across Scotland. We are also determined that Scotland should be a good global citizen, making a constructive contribution to addressing global challenges. The Global Affairs Framework has a consistent focus on good global citizenship; maintaining the closest possible relationship with the European Union; gender equality; climate crisis and climate justice; respect for human rights and the rule of law; the role of our international networks; and Scotland's culture.

The Resource Spending Review will support:

• Scotland's culture and historic environment with investment of £925 million over the spending review, to ensure our diverse and world-class cultural scene and rich heritage continue to thrive.
• Our International Development Fund, with an increase in funding to £15 million per year by the end of this spending review period to make a real difference to some of the world's poorest people.
• The expansion of our network of international offices by opening a new Scottish Government Office in Warsaw, increasing opportunities for policy exchange and Scotland's economic and cultural visibility.
• Investment in Major Events recognising the economic and broader policy benefits they can bring. This includes £14 million for the Cycling World Championships in 2023-24 financial year, bringing the total spend for these Championships to £30 million.
• Creative Scotland and our world class museums, collections and National Performing Companies.
• Delivery of a referendum on independence.

Spending Plans

Table 9: Constitution, External Affairs and Culture Portfolio Spending Plans

Level 2*	2022-23 £m	2023-24 £m	2024-25 £m	2025-26 £m	2026-27 £m
External Affairs	33	35	38	39	40
Referendum	-	20	-	-	-
National Records of Scotland	22	23	25	23	23
Historic Environment Scotland	61	63	58	55	48
Culture and Major Events	177	173	173	177	183
Total	294	314	294	294	294

* Figures include rounding adjustments and projected internal running costs which are subject to change as programming is finalised.

Deputy First Minister and Covid Recovery

Portfolio Responsibilities

The Deputy First Minister and Covid Recovery portfolio supports the delivery of the Covid Recovery Strategy and contributes to strategic oversight for the delivery of key government priorities. The portfolio also co-ordinates the development and implementation of the Scottish Government's policies on Scottish Parliament and local government elections and supports efforts to improve Scotland's preparedness against a range of hazards and threats, including work on winter preparedness. The portfolio promotes public sector reform and leadership development, with particular emphasis on the participation of people in all aspects of Scottish life.

The Resource Spending Review will support:

• Transformation of public services including those delivered by Scottish Government through the Christie Principles.
• Move to further transparency through the Open Government Action Plan.
• Support for public service leaders to drive innovation and a focus on outcomes.
• The continued co-ordination of key aspects of Government business over the spending review period.
• Delivery of Scottish Parliament and local government elections, ensuring that elections in Scotland are held safely and securely with a high level of public confidence in the process and outcome.
• More resilient communities and work to build Scotland's resilience by improving Scotland's understanding and preparedness against a range of hazards and threats, through multi-agency planning, strengthening national work on risk and prevention and working with partners to build and deliver capacity.
• The establishment and operation of, and preparation for, public inquiries into the handling of the COVID-19 pandemic.

Spending Plans

Table 10: Deputy First Minister and Covid Recovery Portfolio Spending Plans

Level 2*	2022-23 £m	2023-24 £m	2024-25 £m	2025-26 £m	2026-27 £m
Public Service Reform	3	3	3	3	3
Government Business and Elections	14	15	14	15	44
Organisational Readiness	26	25	26	26	26
Total	43	43	43	43	73

* Figures include rounding adjustments and projected internal running costs which are subject to change as programming is finalised.

Crown Office and Procurator Fiscal Service

Portfolio Responsibilities

The Crown Office and Procurator Fiscal Service (COPFS) is the sole public prosecution authority in Scotland, prosecuting cases independently, fairly and effectively in the public interest. It is also responsible for investigating sudden, unexplained and suspicious deaths and allegations of criminal conduct by police officers.

The Lord Advocate has Ministerial responsibility for the work of the Service. Her position as head of the systems of criminal prosecution and investigation of deaths is enshrined in the Scotland Act 1998 and she exercises that responsibility independently of any other person.

The Resource Spending Review will support:

• COPFS' role in delivering the Scottish Government's Strategy for Justice in Scotland, in particular, its priorities of reducing crime, particularly violent and serious organised crime, tackling hate crime and sectarianism, supporting victims and witnesses, and increasing public confidence and reducing fear of crime.

Spending Plans

Table 11: Crown Office and Procurator Fiscal Service Portfolio Spending Plans

Level 2*	2022-23 £m	2023-24 £m	2024-25 £m	2025-26 £m	2026-27 £m
COPFS	170	170	170	170	170

* Figures include rounding adjustments.