Chapter 6 Finance & Economy
Portfolio Responsibilities
The Finance and Economy portfolio is at the heart of the Scottish Government's ambition to build a stronger, fairer, greener economy for all Scotland's people and places, and to make our economy more sustainable and resilient in the longer term.
Through the National Strategy for Economic Transformation, the portfolio will build a strong, vibrant and diverse economy that promotes wellbeing, attracts investment and facilitates the transition to a Net Zero economy. It also supports our national digital infrastructure and helps every sector of the economy to increase their digital capacity and capability. It ensures that we tackle the global climate emergency, promote fair work, and through our investment in employability and training we are delivering on the government's ambition to eradicate child poverty and remove structural barriers for those who struggle to access the labour market.
The portfolio will continue to support innovation, through the publication of our National Innovation Strategy, setting out actions to improve our innovation performance, grow our economy, create jobs and bring in investment. The Strategy will identify areas where Scotland has the opportunity to become a world leader and will set out a cluster building approach. We will develop and roll out a delivery plan empowering regions to become lead agents of economic growth, building on the Regional Economic Policy review. Furthermore, we are continuing to deliver statutory responsibilities and policies for the operation and transformation of the planning system and continued investment in our communities and places.
We will also implement the next phase of delivery of our Trade and Investment plans to set the direction for our work on new market opportunities, attracting the high-quality investment and technologies needed, and supporting export potential in key sectors identified in the National Strategy for Economic Transformation.
The Scottish Government remains committed to meeting the needs of our island communities, and we will complete and deliver Ferguson Marine vessels, the Glen Sannox 801 and 802. We will support the yard in securing a sustainable future. The funding set out in this budget is the requirement set out by Ferguson Marine to Parliament on 28 September 2022 and we continue our due diligence on those figures and will update Parliament once concluded.
The portfolio supports Scottish Enterprise, Highland and Islands Enterprise, South of Scotland Enterprise, Visit Scotland, Accountant in Bankruptcy, Consumer Scotland and Scottish National Investment Bank. It also has responsibility for City Region and Growth Deals and European Structural Funds.
The portfolio is also responsible for key functions of Government around public finances, fiscal policy, taxation, procurement, digital strategy, connectivity, and digital economy; and for the funding of Revenue Scotland, the Scottish Fiscal Commission, Scottish Futures Trust, Scottish Public Pensions Agency and Registers of Scotland. Work will continue on approaches to improving efficiency and collaboration, building on the platform of the Resource Spending Review. Progress continues on: shared services, procurement, public sector property, digital public services and revenue raising. Engagement continues with partners, supporting the collaboration and reform necessary to ensure sustainable public services.
Finance and Economy
Table 6.01: Spending Plans (Level 2)
Level 2 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
£m |
£m |
£m |
Scottish Public Pensions Agency |
5,879.5 |
6,498.7 |
6,954.7 |
Other Finance |
88.1 |
76.4 |
69.2 |
Accountant in Bankruptcy |
2.2 |
2.1 |
2.0 |
Digital |
143.6 |
191.5 |
152.0 |
Planning |
12.3 |
13.9 |
12.3 |
Revenue Scotland |
7.1 |
7.9 |
8.2 |
Scottish Fiscal Commission |
2.0 |
2.3 |
2.5 |
Registers of Scotland |
11.2 |
8.5 |
10.4 |
Employability and Training |
56.2 |
124.6 |
135.1 |
Enterprise, Trade and Investment |
446.6 |
480.6 |
423.1 |
European Structural Funds |
– |
– |
– |
European Regional Development Fund |
– |
– |
– |
Economic Advice |
12.6 |
9.9 |
11.3 |
Consumer Scotland |
– |
2.5 |
2.4 |
Scottish National Investment Bank |
205.0 |
215.7 |
244.4 |
Cities Investment and Strategy and Regeneration |
321.4 |
329.6 |
263.2 |
Ferguson Marine |
47.5 |
35.9 |
60.9 |
Tourism |
65.1 |
51.2 |
49.4 |
COVID-19 Funding |
640.0 |
– |
– |
Total Finance and the Economy |
7,940.3 |
8,051.2 |
8,401.3 |
of which: |
Total Fiscal Resource |
1,172.2 |
567.4 |
594.8 |
of which Operating Costs |
114.9 |
106.7 |
115.2 |
Non-cash |
38.6 |
47.8 |
50.3 |
Capital |
643.3 |
681.0 |
577.2 |
Financial Transactions (FTs) |
232.4 |
284.6 |
258.0 |
UK Funded AME |
5,853.8 |
6,470.4 |
6,921.0 |
Presentational Adjustments for Scottish Parliament Approval |
Revenue Scotland – shown separately |
(7.1) |
(7.9) |
(8.2) |
Scottish Fiscal Commission – shown separately |
(2.0) |
(2.3) |
(2.5) |
Registers of Scotland – shown separately |
(11.2) |
(8.5) |
(10.4) |
NHS and Teachers' Pensions – shown separately |
(5,853.8) |
(6,470.4) |
(6,921.0) |
Enterprise (NDPB non-cash) |
(8.3) |
(18.0) |
(18.0) |
Ferguson Marine (NDPB non-cash) |
(0.5) |
(0.5) |
(0.5) |
Highlands and Island Enterprise (NDPB non-cash) |
(5.1) |
(2.0) |
(2.5) |
South of Scotland Enterprise (NDPB non-cash) |
(2.5) |
(1.0) |
(0.5) |
Scottish National Investment Bank (NDPB non-cash) |
– |
(0.8) |
(0.8) |
Scottish Futures Trust (NDPB non-cash) |
– |
(0.1) |
(0.1) |
Tourism (NDPB non-cash) |
(1.4) |
(2.5) |
(2.5) |
Total Finance and the Economy* |
2,048.4 |
1,537.3 |
1,434.2 |
Total Limit on Income (accruing resources) |
400.0 |
|
|
* Resource cost of borrowing no longer shown as part of the Finance and Economy portfolio and is instead shown as a deduction against total funding
Table 6.02: Scottish Public Pensions Agency Spending Plans (Level 3)
Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
£m |
£m |
£m |
Agency Administration |
25.7 |
28.3 |
33.7 |
Scottish Teachers Pension Schemes |
1,922.8 |
2,002.2 |
2,280.0 |
NHS Pension Scheme |
3,931.0 |
4,468.2 |
4,641.0 |
Total SPPA |
5,879.5 |
6,498.7 |
6,954.7 |
of which |
Fiscal Resource |
20.3 |
19.3 |
24.0 |
Non-cash |
3.2 |
4.4 |
6.2 |
Capital |
2.2 |
4.6 |
3.5 |
FTs |
– |
– |
– |
UK Funded AME |
5,853.8 |
6,470.4 |
6,921.0 |
Table 6.03: Other Finance Spending Plans (Level 3)
Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
£m |
£m |
£m |
Tax and Revenues Development (Scotland Act Implementation) |
2.6 |
2.1 |
2.2 |
Procurement Shared Services |
23.8 |
27.2 |
24.5 |
Scottish Futures Trust |
4.1 |
3.9 |
3.7 |
Exchequer and Finance |
23.7 |
14.3 |
12.4 |
Scottish Government Capital Projects |
27.0 |
23.8 |
16.8 |
Public Information and Engagement |
2.8 |
2.7 |
2.3 |
Growth Accelerators |
1.5 |
1.5 |
7.4 |
Green Growth Accelerator |
1.0 |
1.0 |
– |
Finance FTs |
1.5 |
– |
– |
Total Other Finance |
88.1 |
76.4 |
69.2 |
of which: |
Fiscal Resource |
59.6 |
52.5 |
52.3 |
Non-cash |
12.0 |
11.1 |
9.9 |
Capital |
15.0 |
12.8 |
7.0 |
FTs |
1.5 |
– |
– |
UK Funded AME |
– |
– |
– |
Table 6.04: Accountant in Bankruptcy Spending Plans (Level 3)
Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
£m |
£m |
£m |
Accountant in Bankruptcy |
2.2 |
2.1 |
2.0 |
Total Accountant in Bankruptcy |
2.2 |
2.1 |
2.0 |
of which: |
Fiscal Resource |
0.3 |
– |
0.3 |
Non-cash |
0.8 |
1.0 |
0.9 |
Capital |
1.1 |
1.1 |
0.9 |
FTs |
– |
– |
– |
UK Funded AME |
– |
– |
– |
Table 6.05: Digital Spending Plans (Level 3)
Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
£m |
£m |
£m |
Digital Strategy |
30.6 |
44.8 |
55.9 |
Digital Economy |
10.2 |
15.2 |
(1.0) |
Digital Connectivity |
102.8 |
131.5 |
97.2 |
Total Digital |
143.6 |
191.5 |
152.0 |
of which: |
Fiscal Resource |
40.3 |
34.3 |
38.2 |
Non-cash |
– |
– |
3.5 |
Capital |
101.5 |
151.2 |
112.3 |
FTs |
1.8 |
6.0 |
(2.0) |
UK Funded AME |
– |
– |
– |
Table 6.06: Planning Spending Plans (Level 3)
Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
£m |
£m |
£m |
Planning |
11.6 |
13.3 |
11.7 |
Planning and Environmental Appeals |
0.7 |
0.6 |
0.6 |
Total Planning |
12.3 |
13.9 |
12.3 |
of which: |
Fiscal Resource |
7.3 |
6.9 |
5.3 |
Non-cash |
– |
– |
– |
Capital |
5.0 |
7.0 |
7.0 |
FTs |
– |
– |
– |
UK Funded AME |
– |
– |
– |
Table 6.07: Revenue Scotland Spending Plans (Level 3)
Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
£m |
£m |
£m |
Revenue Scotland |
7.1 |
7.9 |
8.2 |
Total Revenue Scotland |
7.1 |
7.9 |
8.2 |
of which: |
Fiscal Resource |
6.2 |
6.7 |
7.2 |
Non-cash |
0.4 |
0.5 |
0.6 |
Capital |
0.5 |
0.8 |
0.5 |
FTs |
– |
– |
– |
UK Funded AME |
– |
– |
– |
Table 6.08: Scottish Fiscal Commission Spending Plans (Level 3)
Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
£m |
£m |
£m |
Scottish Fiscal Commission |
2.0 |
2.3 |
2.5 |
Total Scottish Fiscal Commission |
2.0 |
2.3 |
2.5 |
of which: |
Fiscal Resource |
2.0 |
2.3 |
2.5 |
Non-cash |
– |
– |
– |
Capital |
– |
– |
– |
FTs |
– |
– |
– |
UK Funded AME |
– |
– |
– |
Table 6.09: Registers of Scotland Spending Plans (Level 3)
Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
£m |
£m |
£m |
Registers of Scotland |
11.2 |
8.5 |
10.4 |
Registers of Scotland |
11.2 |
8.5 |
10.4 |
of which: |
Fiscal Resource |
4.0 |
– |
– |
Non-cash |
4.2 |
6.0 |
4.5 |
Capital |
3.0 |
2.5 |
5.9 |
FTs |
– |
– |
– |
UK Funded AME |
– |
– |
– |
Table 6.10: Employability and Training Spending Plans (Level 3)
Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
£m |
£m |
£m |
Employability and Training |
56.2 |
124.6 |
135.1 |
Total Employability and Training |
56.2 |
124.6 |
135.1 |
of which: |
Fiscal Resource |
56.1 |
124.5 |
135.1 |
Non-cash |
0.1 |
0.1 |
– |
Capital |
– |
– |
– |
FTs |
– |
– |
– |
UK Funded AME |
– |
– |
– |
Table 6.11: Enterprise, Trade and Investment Spending Plans (Level 3)
Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
£m |
£m |
£m |
Enterprise |
299.6 |
302.6 |
280.2 |
Highlands and Islands Enterprise |
67.6 |
64.3 |
62.7 |
South of Scotland Enterprise Agency |
35.7 |
37.0 |
34.5 |
Innovation, Industries, Trade and Investment |
43.7 |
76.6 |
45.8 |
Total Enterprise, Trade and Investment |
446.6 |
480.6 |
423.1 |
of which: |
Fiscal Resource |
242.3 |
230.6 |
239.5 |
Non-cash |
16.1 |
21.0 |
21.0 |
Capital |
159.1 |
156.3 |
136.4 |
FTs |
29.1 |
72.7 |
26.2 |
UK Funded AME |
– |
– |
– |
Table 6.12: European Structural Funds 2014-20 Programmes Spending Plans (Level 3)
Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
£m |
£m |
£m |
ESF Central Government Spend – EC Income |
– |
– |
– |
ESF Central Government Spend |
– |
– |
– |
ESF Grants to Local Authorities |
– |
– |
– |
ESF Grants to Local Authorities – EC Income |
– |
– |
– |
Total ESF 2014-20 Programmes |
– |
– |
– |
of which: |
Fiscal Resource |
– |
– |
– |
Non-cash |
– |
– |
– |
Capital |
– |
– |
– |
FTs |
– |
– |
– |
UK Funded AME |
– |
– |
– |
Table 6.13: European Regional Development Funds Spending Plans (Level 3)
Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
£m |
£m |
£m |
ERDF Central Government Spend – EC Income |
– |
– |
– |
ERDF Central Government Spend |
– |
– |
– |
ERDF Grants to Local Authorities |
– |
– |
– |
ERDF Grants to Local Authorities – EC Income |
– |
– |
– |
Total ERDF 2014-20 Programmes |
– |
– |
– |
of which: |
Fiscal Resource |
– |
– |
– |
Non-cash |
– |
– |
– |
Capital |
– |
– |
– |
FTs |
– |
– |
– |
UK Funded AME |
– |
– |
– |
Tables 6.12 and 6.13 reflect European Funding and as this is not voted for as part of the Scottish Budget is reflected as zero. The scheme comes to an end on 31 March 2025.
Table 6.14: Economic Advice Spending Plans (Level 3)
Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
£m |
£m |
£m |
Office of the Chief Economic Adviser |
7.7 |
7.0 |
8.7 |
Council of Economic Advisers |
0.1 |
– |
– |
Consumer Policy and Advice |
4.8 |
2.9 |
2.6 |
Total Economic Advice |
12.6 |
9.9 |
11.3 |
of which: |
Fiscal Resource |
12.6 |
9.9 |
11.3 |
Non-cash |
– |
– |
– |
Capital |
– |
– |
– |
FTs |
– |
– |
– |
UK Funded AME |
– |
– |
– |
Table 6.15: Consumer Scotland Spending Plans (Level 3)
Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
£m |
£m |
£m |
Consumer Scotland |
– |
2.5 |
2.4 |
Total Consumer Scotland |
– |
2.5 |
2.4 |
of which: |
Fiscal Resource |
– |
2.5 |
2.4 |
Non-cash |
– |
– |
– |
Capital |
– |
– |
– |
FTs |
– |
– |
– |
UK Funded AME |
– |
– |
– |
Table 6.16: Scottish National Investment Bank Spending Plans (Level 3)
Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
£m |
£m |
£m |
Scottish National Investment Bank |
205.0 |
215.7 |
244.4 |
Total Scottish National Investment Bank |
205.0 |
215.7 |
244.4 |
of which: |
Fiscal Resource |
5.0 |
9.0 |
5.8 |
Non-cash |
– |
0.8 |
0.8 |
Capital |
– |
– |
– |
FTs |
200.0 |
205.9 |
237.8 |
UK Funded AME |
– |
– |
– |
Table 6.17: Cities Investment and Strategy and Regeneration Spending Plans (Level 3)
Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
£m |
£m |
£m |
Cities Investment and Strategy |
209.9 |
233.2 |
204.0 |
Regeneration |
111.5 |
96.3 |
59.2 |
Total Cities Investment and Strategy and Regeneration |
321.4 |
329.6 |
263.2 |
of which: |
Fiscal Resource |
29.0 |
23.6 |
26.4 |
Non-cash |
– |
– |
– |
Capital |
292.4 |
306.0 |
240.8 |
FTs |
– |
– |
(4.0) |
UK Funded AME |
– |
– |
– |
Table 6.18: Ferguson Marine Spending Plans (Level 3)
Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
£m |
£m |
£m |
Ferguson Marine |
47.5 |
35.9 |
60.9 |
Total Ferguson Marine |
47.5 |
35.9 |
60.9 |
of which: |
Fiscal Resource |
2.0 |
2.0 |
2.8 |
Non-cash |
0.5 |
0.5 |
0.5 |
Capital |
45.0 |
33.4 |
57.6 |
FTs |
– |
– |
– |
UK Funded AME |
– |
– |
– |
Table 6.19: Tourism Spending Plans (Level 3)
Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
£m |
£m |
£m |
Tourism |
65.1 |
51.2 |
49.4 |
Total Tourism |
65.1 |
51.2 |
49.4 |
of which: |
Fiscal Resource |
45.2 |
43.4 |
41.6 |
Non-cash |
1.4 |
2.5 |
2.5 |
Capital |
18.5 |
5.3 |
5.3 |
FTs |
– |
– |
– |
UK Funded AME |
– |
– |
– |
Finance and Economy intended contributions to the National Outcomes
Primary National Outcomes
- Economy
- International
- Fair Work and Business
- Environment
Secondary National Outcomes
- Poverty
- Communities
- Children and Young People
- Education
- Human Rights
For further information on the purpose of the portfolio budget, and contributions to national outcomes (including impacts of spend on equality of outcome) please refer to the relevant portfolio annex in the published Equality and Fairer Scotland Budget Statement.