Scottish Consolidated Fund Accounts 2017 to 2018

Notes to the Accounts

1. Basis of accounting

In accordance with Section 19 (2) of the Public Finance and Accountability (Scotland) Act 2000, these accounts are prepared on a cash basis.

2. Scottish Rate of Income Tax

The Scotland Act 2012 Section 25 empowers the Scottish Parliament to set a Scottish Rate of Income Tax ( SRIT) for Scottish taxpayers with effect from 6 April 2016. Income tax revenues derived from Scottish taxpayers were assigned to the Scottish Administration commencing in 2016-17. During the year 2017-18, £11,858 million of assigned income tax was paid into the Scottish Consolidated Fund (2016-17 £4,900 million).

3. Receipts from Devolved Taxes

During the year 2017-18, Revenue Scotland paid over £697 million to the Scottish Consolidated Fund in respect of the two Devolved Taxes.

	2017-18 £000	2016-17 £000
Land and Buildings Transaction Tax ( LBTT)	553,271	485,925
Scottish Landfill Tax ( SLFT)	144,066	150,314
Total Devolved Taxes	697,337	636,239

4. Borrowing by Scottish Ministers

Under section 32 of the Scotland Act 2012, as amended by Scotland Act 2016 section 20, additional borrowing powers were conferred on Scottish Ministers with effect from 1 April 2015. Any sums borrowed and repaid under these provisions must be done via the Scottish Consolidated Fund and hence be reflected in these accounts. The first sums borrowed from the National Loan Fund were received by the Scottish Consolidated Fund in 2017-18. A summary of the borrowing position is set out as follows:

	Principal £'000	Accrued Interest £'000	Total £'000
At 1 April 2017	-	-	-
New borrowing	450,000	-	450,000
Interest incurred	-	547	547
Repayments	-	-	-
Interest paid	-	-	-
At 31 March 2018	450,000	547	450,547

No repayments were made in 2017-18. No sums were borrowed or repaid in 2016-17.

The repayment of borrowing is scheduled as follows:

	Principal £'000	Interest £'000	Total £'000
Less than 1 year	7,073	7,723	14,796
1 – 5 years	59,057	31,727	90,784
More than 5 years	383,870	81,397	465,267
Total	450,000	120,847	570,847

5. Crown Estate surplus

Under the provisions of Section 36 of the Scotland Act 2016, the Crown Estate Transfer Scheme 2017 transferred the existing Scottish functions of the Crown Estate Commissioners to Scottish Ministers. A new body, Crown Estate Scotland, was established to manage those functions. All revenue surpluses generated by Crown Estate Scotland are paid into the Scottish Consolidated Fund with effect from 2017-18. The surplus paid into the Fund in 2017-18 amounted to £4.5 million.

6. Fines, forfeitures and fixed penalties

The Scotland Act 1998 (Designation of Receipts) Order 2017, issued under the provisions of Section 67 of the Scotland Act 2016, removes fines forfeitures and fixed penalties receipts from their previous classification as designated receipts under the Scotland Act 1998 (Designation of Receipts) Order 2009.

In 2017-18, the total of fines, forfeitures and fixed penalties paid into the SCF was £17.1 million (In 2016-17 the total of fines, forfeitures and fixed penalties paid into the SFC and paid out by the SCF as designated receipts was £25.0 million). Further details are set out in note 8.

7. Receipts for the Queen's and Lord Treasurer's Remembrancer

The balance of the Queen's and Lord Treasurer's Remembrancer receipts paid into the Fund is as follows:

	2017-18 £000	2016-17 £000
Balance in the SCF at 1 April	48,283	41,994
Receipts in the period	6,750	6,289
Balance in the SCF at 31 March	55,033	48,283

8. Analysis of other receipts not authorised to be used to support expenditure

As provided for in Section 64(3) of the Scotland Act 1998 (and certain other legislative provisions) all sums received by members of the Scottish Administration (and certain other bodies) are to be paid into the Scottish Consolidated Fund as Consolidated Fund Extra Receipts ( CFERs) unless there are alternative statutory provisions. In practice, most of the receipts of the bodies concerned were authorised to be used to support expenditure under the Budget Act and the Budget Orders.

The Scotland Act 1998 (Designation of Receipts) Order 2009 designates certain receipts (designated receipts) and provides that sums equivalent to these are to be paid to the Scotland Office, in practice for paying into the UK Consolidated Fund. As detailed in note 6, the 2009 Order was amended with effect from 2017-18 to remove a category of receipts (fines, forfeitures and fixed penalties) from classification as designated receipts.

2017-18	Receipts paid into Fund during period £000	Receipts classed as Designated £000
Finance and The Constitution	3,070	7
Rural Economy and Connectivity	6	6
Crown Office & Procurator Fiscal Service	4,235	-
Total for 2017-18	7,311	13
Less: Repaid 2016-17 income	(1,633)	-
Total	5,678	13

During 2017-18, CFER payments were paid to Scotland Office of £13,000. £1.633 million was surrendered to the Fund in error during 2016-17 and was repaid by the Fund in 2017-18.

During 2016-17 the receipts not authorised to be used to support expenditure is summarised below:

2016-17	Receipts paid into Fund during period £000	Receipts classed as Designated £000
Finance and The Constitution	27,760	24,854
Rural Economy and Connectivity	480	480
Crown Office & Procurator Fiscal Service	4,230	-
Scottish Parliament	47	-
Justice	1,358	-
Economy, Jobs and Fair Work	1,704	71
Total for 2016-17	35,579	25,405
Receipt surrendered in 2015-16		284
Total	35,579	25,689

During 2016-17 CFER payments were paid to Scotland Office of £25.689 million. The payment in 2016-17 includes a total of £0.284 million in respect of 2015-16. £1.633 million was surrendered to the Fund in error during 2016-17 and was repaid by the Fund in 2017-18. CFER payments include £25.003 million of fines, forfeitures and fixed penalties receipts, which have been removed from classification as designated receipts to be surrendered after 2016-17.

9. Payments authorised under the Budget Acts

For the period of this account the Scottish Parliament approved: Budget (Scotland) Act 2017 ( ASP 1) as amended by the Budget (Scotland) Act Amendment Regulations 2017 ( SSI 2017/399) and the Budget (Scotland) Act Amendment Regulations 2018 ( SSI 2018/113).

These Orders appropriate sums out of the Scottish Consolidated Fund for the financial year ending 31 March 2018 for the purposes of meeting expenditure in that year in connection with the functions for which expenditure is, by virtue of the Scotland Act 1998 and provisions made under it, payable out of that fund during the year.

2017-18	£000	£000
Scottish Government and Associated Departments	33,860,715
Crown Office & Procurator Fiscal Services	106,000
Food Standards Scotland	14,800
Scottish Administration		33,981,515
Forestry Commission (Scotland)	66,800
The Scottish Parliamentary Corporate Body	84,300
Audit Scotland	5,500	156,600
Total Paid		34,138,115

During 2016-17 the authorised payments under the Budget Acts was £33,348 million. This is summarised below:

2016-17	£000	£000
Scottish Government and Associated Departments	33,079,012
Crown Office & Procurator Fiscal Services	109,500
Food Standards Agency	15,500
Scottish Administration		33,204,012
Forestry Commission (Scotland)	56,000
The Scottish Parliamentary Corporate Body	83,400
Audit Scotland	5,000	144,400
Total Paid		33,348,412

10. Judicial Salaries

Receipts and Payments Account
For the period 1 April 2017 to 31 March 2018

Receipts	2017-18 £000	2016-17 £000
Received from the SCF	32,290	29,700
Income from recovery of overpayments	-	2
Reimbursement of salary costs	235	155
Total Receipts	32,525	29,857
Payments	2017-18 £000	2016-17 £000
Salary Costs	32,794	30,177
Bank Charges	1	1
Total Payments	32,795	30,178
Surplus/(Deficit) for the Period	(270)	(321)

Summary of the balance held at the Government Banking Service:

Balance brought forward from previous year	513	834
Surplus/(deficit) of receipts over payments for the year	(270)	(321)
Balance held at the Government Banking Service	243	513

A member of the judiciary took up a post as chair of an inquiry in 2016-17, and has continued in post during 2017-18; her salary costs continued to be charged to the Fund. The inquiry reimbursed the Fund for the member's salary costs commensurate with the time spent on inquiry business, totalling £235,000 (2016-17 £155,000).

The salaries of the judiciary are a matter for the UK Government. Information on salaries payable is set out in a report by the Senior Salaries Review Body. The 2017 report may be accessed at https://www.gov.uk/government/organisations/review-body-on-senior-salaries

During 2017-18 the number of paid judiciary in post at 31 March 2018 was:

Judges (Senators of the College of Justice)	35
Sheriffs Principal	6
Sheriffs	125.1 FTE
Summary Sheriffs	29.4 FTE
Members of Lands Tribunal Scotland	1.8 FTE
Chair of the Scottish Land Court	1
Deputy Chair of the Scottish Land Court	0.6 FTE
Members of the Scottish Land Court	1.4 FTE

Comparative figures for 2016-17, the number of paid judiciary in post at 31 March 2017, are:

Judges (Senators of the College of Justice)	35
Sheriffs Principal	6
Sheriffs	125.5 FTE
Summary Sheriffs	32.6 FTE
Members of Lands Tribunal Scotland	2
Chair of the Scottish Land Court	1
Deputy Chair of the Scottish Land Court	0.75 FTE
Members of the Scottish Land Court	1.25 FTE

11. Proceeds of Crime receipts 2017-18

During 2017-18 a total of £7.259 million (2016-17 £6.621 million) was repaid to the Scottish Government in respect of Proceeds of Crime initially surrendered to the Scottish Consolidated Fund. The net balance of Proceeds of Crime receipts paid into the Fund is as follows:

	2017-18 £000	2016-17 (restated) £000
Balance in the SCF at 1 April	6,283	5,865
Receipts to the SCF in the period	7,297	7,039
Payments to the Scottish Government in the period	(7,259)	(6,621)
Balance in the SCF at 31 March	6,321	6,283

The 2016-17 Receipts to the SCF figure has been restated as it was understated in the 2016-17 Annual Accounts.

12. Analysis of the balance held at the Scottish Consolidated Fund

	2017-18 £000	2016-17 (restated) £000
Designated Receipts not yet paid to UK Consolidated Fund	-	-
Sums due to funded bodies not yet paid	6,571	7,916
General SCF Reserve	243,320	234,512
Balance held at the SCF at 31 March	249,891	242,428

The figure for Sums due to funded bodies not yet paid for 2016-17, has been restated as it was understated in the 2016-17 Annual Accounts, resulting in a restatement of the elements comprising the overall balance.

The balance on the General Reserve of the Scottish Consolidated Fund does not necessarily represent an amount available for appropriation by a Budget Act or other means as there may be sums due to the Scottish Government or other funded bodies and/or sums due to the Scotland Office for onward transmission to the UK Consolidated Fund.

In particular, non-domestic rates paid to and by Scottish Ministers are credited to, or drawn from the Scottish Consolidated Fund and are accounted for in more detail in a separate non-domestic rating account.