Scotland's Tax Strategy: Building on our Tax Principles

Glossary

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 (BGA): Deductions or additions to the Scottish Government's total Block Grant to reflect devolved tax receipts or social security expenditure.

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. Following a review between the UK and Scottish Governments, an update was agreed and published in August 2023.

Net position: The difference between tax revenue or social security expenditure applied to the Scottish Budget and its equivalent block grant adjustments (BGAs). For tax, revenues in Scotland are compared to a BGA deduction for the equivalent revenues in England and Northern Ireland. For social security, expenditure in Scotland is compared to a BGA addition for the equivalent spend in England and Wales.

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

Outturn data: Official published statistics about actual revenues and expenditure.

Overall net position: The combined impact of the tax net position and social security net position in a budget year.

PAYE: PAYE stands for Pay As You Earn and is HM Revenue and Customs’ (HMRC) system to collect Income Tax and National Insurance from taxpayer income, such as wages from employment and pension income.

Tone date: The date at which all non-domestic properties are valued by the Assessor.