Scottish Budget 2025 to 2026: Barnett Block Grant funding

This factsheet sets out information on the Barnett Block Grant funding for the Scottish Government in 2024 to 2025 and 2025 to 2026 after the October 2024 UK Autumn Budget, including a comparison of funding with 2022 to 2023.

The factsheet shows only Barnett Block Grant funding received from the UK Government. It does not include the Block Grant Adjustments for devolved taxes and social security; or funding raised through use of devolved taxes or other sources of funding such as non-Barnett UK Government funding, the Scotland Reserve, borrowing, or draw downs of revenues raised by Crown Estate Scotland. It therefore does not show the total funding of the Scottish Government, but shows the funding received from the UK Government on a consistent basis over time, before changes associated with increased devolved responsibility for tax and social security. This Barnett Block Grant funding is a key component of the Scottish Government Budget 2025 to 2026.

Barnett Block Grant funding in 2024 to 2025 and 2025 to 2026 compared to 2022 to 2023

• following the UK Autumn Budget, the Scottish Government is receiving £45.5 billion of funding in 2024 to 2025. This will increase to £47.6 billion in 2025 to 2026 in cash terms. 
• in real terms, overall Barnett Block Grant funding in 2024 to 2025 is now broadly in line with 2022 to 2023. This reflects real term reductions in capital funding and financial transactions, and a real terms increase in resource funding relative to 2022 to 2023.
• in real terms, overall Barnett Block Grant funding in 2025 to 2026 is higher than in 2022 to 2023. However, while resource funding is higher by £1.7 billion in real terms, capital funding and financial transactions remain lower in real terms than in 2022 to 2023 by £333 million and £216 million respectively.

Change in Barnett funding between 2024 to 2025 and 2025 to 2026

Overall

In cash terms, overall Barnett Block Grant funding is increasing by £2.1 billion (4.6%) between 2024 to 2025 and 2025 to 2026. In real terms, funding is increasing by £989 million (2.2%).

Resource

Barnett Block Grant resource funding in 2024 to 2025 is £39.6 billion. This will increase to £41.1 billion in 2025 to 2026.

In cash terms, this is a £1.5 billion increase (3.8%). In real terms, this is a £547 million increase (1.4%).

Capital

Excluding financial transactions, Barnett capital funding in 2024 to 2025 is £5.7 billion. This will increase to £6.3 billion in 2025 to 2026.

In cash terms, this is a £547 million increase (9.6%). In real terms, this is a £401 million increase (7.0%).

Financial Transactions

Total financial transactions funding in 2024 to 2025 is £123 million. This will increase to £167 million in 2025 to 2026.

In cash terms, this is an increase of £44 million (35.8%). In real terms, this is a £40 million increase (32.6%).

The tables below set out details of the latest Barnett Block Grant settlement for the Scottish Government. Table 1 shows the Barnett Block Grant funding for 2024 to 2025 and 2025 to 2026, in both cash and real terms, and the annual growth. Table 2 provides a comparison back to 2022 to 2023 in real terms and the changes since that year.

Table 1: Scottish Government Barnett Block Grant funding in 2024 to 2025 and 2025 to 2026

	2024 to 2025 £m	2025 to 2026 £m	Increase £m	Increase %
Cash terms
Resource funding	39,635	41,141	1,506	3.8
Capital funding (excl FTs)	5,709	6,256	547	9.6
Financial Transactions (FTs)	123	167	44	35.8
Total	45,467	47,564	2,097	4.6
Real terms (2024 to 2025 prices)
Resource funding	39,635	40,182	547	1.4
Capital funding (excl FTs)	5,709	6,110	401	7.0
Financial Transactions (FTs)	123	163	40	32.6
Total	45,467	46,456	989	2.2

Table 2: Real terms Scottish Government Barnett Block Grant funding (£ million, 2024 to 2025 prices)

	2022 to 2023 £m	2023 to 2024 £m	2024 to 2025 £m	2025 to 2026 £m
Resource funding	38,489	38,138	39,635	40,181
Capital funding (excl FTs)	6,443	6,110	5,709	6,110
Financial Transactions (FTs)	380	166	123	163
Total	45,312	44,415	45,467	46,455
Change from 2022 to 2023
Resource funding	n/a	-£349	+£1,146	+£1,693
Capital funding (excl FTs)	n/a	-£333	-£734	-£333
Financial Transactions (FTs)	n/a	-£214	-£257	-£216
Total	n/a	-£896	+£155	+£1,144

Source: Scottish Government calculations based on HM. Treasury, Office for Budget Responsibility data