The Scottish Consolidated Fund Accounts for the year ended 31 March 2024

The 2023-24 annual account for Scottish Consolidated Fund (SCF) set up following devolution in 1999 and under the Scotland Act 1998.

This account has been prepared under sections 19(2) and 19(4) of the Public Finance and Accountability (Scotland) Act 2000.


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. Receipts from the Office of the Secretary of State for Scotland

These receipts are paid into the Scottish Consolidated Fund under Section 64(2) of the Scotland Act 1998.

3. Scottish Income Tax

The Scotland Act 2012 Section 25 empowers the Scottish Parliament to set a Scottish Rate of Income Tax for Scottish taxpayers with effect from 6 April 2016. Income tax revenues derived from Scottish taxpayers were assigned to the Scottish Administration commencing from 2016-17.

4. Non-Domestic Rates Income

Non-Domestic Rates Income (NDRI) is collected by the local authorities. These funds are then pooled, and a distributable amount set by the Scottish Government. This distributable amount is then added to the General Revenue Grant funding that local authorities receive through their weekly payments. This funding does not come directly to the SCF as cashflows, so it is represented here as a notional receipt. Further information about the NDRI can be found in Non-Domestic Rating Account, last published in November 2023[1].

5. National Insurance Contributions

National Insurance Contributions from Scottish taxpayers are collected by HMRC and paid into the SCF as a funding stream for NHS Scotland.

6. Receipts from Devolved Taxes

During 2023-24 Revenue Scotland paid £878 million to the Scottish Consolidated Fund in respect of the two fully devolved taxes.

2023-24

2022-23

£000

£000

Land and Buildings Transaction Tax (LBTT)

796,094

845,139

Scottish Landfill Tax (SLFT)

81,924

109,708

Total fully devolved taxes

878,018

954,847

7. 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 NLF were received by the SCF in 2017-18. A summary of the borrowing position is set out as follows:

Principal

Accrued Interest

Total

At 31 March 2024

£’000

£’000

£’000

At 1 April 2023

2,023,014

3,367

2,026,381

New borrowing

404,000

-

404,000

Interest incurred

-

31,454

31,454

Repayments

(186,977)

(29,750)

(216,727)

At 31 March 2024

2,240,037

5,071

2,245,108

Principal

Accrued Interest

Total

At 31 March 2023

£’000

£’000

£’000

At 1 April 2022

1,815,296

2,703

1,817,999

New borrowing

347,000

-

347,000

Interest incurred

-

20,983

20,983

Repayments

(139,282)

(20,319)

(159,601)

At 31 March 2023

2,023,014

3,367

2,026,381

The repayment of borrowing is scheduled as follows:

Principal

Interest

Total

At 31 March 2024

£’000

£’000

£’000

Less than 1 year

223,324

42,965

266,289

1 – 5 years

815,461

137,722

953,183

More than 5 years

1,201,252

140,511

1,341,763

Total

2,240,037

321,198

2,561,235

Principal

Interest

Total

At 31 March 2023

£’000

£’000

£’000

Less than 1 year

186,977

29,750

216,727

1 – 5 years

726,942

99,965

826,907

More than 5 years

1,109,095

137,031

1,246,126

Total

2,023,014

266,746

2,289,760

Details of loans taken out are as follows:

At 31 March 2024

Financial year

Category

Term (years)

Amount borrowed

Principal

Amount outstanding

Principal

£’000

£’000

2017-18

Capital

25

450,000

368,394

2018-19

Capital

10

250,000

140,427

2019-20

Capital

20

200,000

161,894

2019-20

Capital

25

190,000

164,972

2019-20

Capital

25

15,000

13,067

2020-21

Capital

25

150,000

136,845

2020-21

Resource

5

207,000

103,836

2020-21

Capital

25

50,000

45,671

2021-22

Capital

20

150,000

140,182

2021-22

Resource

5

319,000

225,774

2022-23

Capital

15

300,000

292,299

2022-23

Resource

5

47,000

42,676

2023-24

Capital

10

300,000

300,000

2023-24

Resource

5

104,000

104,000

Total

2,732,000

2,240,037

More details on Scottish Government borrowing can be found in the Fiscal Framework Outturn[2] Report most recently published in September 2023.

8. Voluntary Donations

During 2020-21, a procedure was instituted in co-ordination with the UK Government and the other Devolved Administrations to allow businesses in receipt of non-domestic rates relief to voluntarily repay some or all that relief. Businesses who chose to do so in Scotland were directed to make repayments into the SCF.

9. 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 2023-24 amounted to £20 million (2022-23: £18 million, plus £103 million related to net Scot Wind revenue)

10. Fines, Forfeitures and Fixed Penalties

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

11. Receipt from the Registers of Scotland

Approval was given by the Scottish Parliament of the Section 17 Order under the Public Services Reform Act on 18 March 2020, coming into force on 31 March 2020, allowing for the repeal of Section 9 of the Public Finance and Accountability (Scotland) Act 2000, and the transfer of reserves from Registers of Scotland. No transfer of reserves to the Fund took place under these provisions in 2023-24, only the surplus of cash previously advanced (restated 2022-23: £nil).

12. Receipts from and payments to the UK Contingencies Fund

The UK Contingencies Fund is used to finance payments for urgent services in anticipation of UK Parliamentary provision for those services becoming available, and to provide funds required temporarily by government departments for necessary working balances, or to meet other temporary cash deficiencies.

A successful application was made for a short-term Contingencies Fund advance of £704 million based on the forecast funding required in March 2024, being the excess of funding required over the remaining UK Main Estimates Budget cash requirement (available cash funding limit) for Scotland. An increase in the Scotland cash requirement was included in the UK Spring Supplementary Budget, which became available after the relevant legislation received Royal Assent in March. The actual repayment to the UK Contingencies Fund was made directly by the Office of the Secretary of State for Scotland on their receipt of cash grant from HM Treasury. As a result, repayments from the Scottish Government to the SCF and from the SCF to the UK Contingencies Fund were notional and do not represent physical cashflows. The transactions involved were as follows:

2023-24

£000

Received from UK Contingencies Fund 1st March 2024

703,711

Paid to Scottish Government 4th March 2024

(703,711)

Received from Scottish Government

703,711

Repaid to UK Contingencies Fund

(703,711)

-

2022-23

£000

Received from UK Contingencies Fund 1st March 2023

(313,000)

Repaid to UK Contingencies Fund 27th March 2023

313,000

-

13. National Loans Fund repayments

Prior to 1 July 1999, the Secretary of State for Scotland lent money to several Scottish bodies out of the National Loans Fund. At 1 July 1999, the right to the sums outstanding was transferred to the Scottish Ministers who must pay the repayments and interest to the Secretary of State for Scotland via the Scottish Consolidated Fund. The remaining NLF loans are with Scottish Water and Registers of Scotland. The SCF Receipts and Payments account includes receipts from those bodies and corresponding payments to the Office of the Secretary of State for Scotland.

14. Receipts for the King’s and Lord Treasurer’s Remembrancer

The King’s and Lord Treasurer’s Remembrancer (KLTR) – previously the Queen’s and Lord Treasurer’s Remembrancer (QLTR) - is the representative of the Crown in Scotland and is responsible for dealing with ownerless property (“bona vacantia”). Regulation of the activities of the QLTR was transferred to Scottish Ministers by Schedule 8 Paragraph 1 of the Scotland Act 1998. Bona vacantia covers assets of dissolved companies, assets of missing persons and lost and abandoned property. The realised value of such assets is paid into the SCF and remains there until Scottish Parliament authorisation to draw the balances down is obtained in the Budget Act.

The balance of King’s and Lord Treasurer’s Remembrancer receipts paid into the SCF is as follows:

2023-24

2022-23

£000

£000

Balance in the SCF at 1 April

-

8,052

Receipts in the period

171

5,022

Payments in the period

-

(13,074)

Balance in the SCF at 31 March

171

-

15. Analysis of other receipts

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 are authorised to be used to support Scottish Administration expenditure under the Budget Act except for the designated receipts accruing from bank interest which are required to be surrendered to HMT through Scotland Office.

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 Office of the Secretary of State for Scotland, in practice for paying into the UK Consolidated Fund. As detailed in note 10, 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.

The receipts paid into the SCF during 2023-24 include £10 million (2022-23: £12 million) recovered under the Proceeds of Crime Act (see Note 18) and £1 million (2022-23: £470k) recovered under the Victim Surcharge provision (see Note 19) by the Crown Office and Procurator Fiscal Service and Scottish Courts and Tribunals Service. CFER receipts surrendered to the SCF in previous years by Scottish Courts and Tribunals Service were repaid during 2023-24 totalling £49k.

Except for designated receipts, all others have been classed as receipts authorised to support expenditure and have been included in the Funding section of the Receipts and Payments Account.

2023-24

Receipts paid into Fund during period

Receipts classed as Designated

£000

£000

Crown Office and Procurator Fiscal Service

5,356

-

Scottish Courts and Tribunals Service

6,989

-

12,345

-

Scottish Courts and Tribunals Service

(49)

-

Sub-Total

12,296

-

Designated Bank Interest

471

-

Total

12,767

471

2022-23

Receipts paid into Fund during period

Receipts classed as Designated

£000

£000

Crown Office and Procurator Fiscal Service

8,879

-

Scottish Courts and Tribunals Service

4,730

-

Net Zero, Environment and Transport

110

-

Social Justice, Housing and Local
Government

22,800

-

36,519

-

Scottish Courts and Tribunals Service

(79)

-

Sub-Total

36,440

-

Designated Bank Interest

153

153

Total

36,593

153

During 2023-24, CFER payments of £471k were paid to Office of the Secretary of State for Scotland.

16. Payments authorised under the Budget Acts

For the period of this account the Scottish Parliament approved Budget (Scotland) Act 2023 (ASP 2) as amended by the Budget (Scotland) Act 2023 Amendment Regulations 2023 (SSI 2023/357) and the Budget (Scotland) Act 2023 Amendment Regulations 2024 (SSI 2024/99).

These Orders appropriate sums out of the Scottish Consolidated Fund for the financial year ending 31 March 2024 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.

The balance paid to Scottish Government includes £3,047 million related to the distribution of Non-Domestic Rates Income to local authorities by the SG. As with Non-Domestic Rates Income (see Note 4), this does not represent an actual cashflow and is included here as a notional payment.

2023-24

£000

Scottish Government and indirectly funded bodies

49,301,687

Non-Domestic Rates Income Distribution

3,047,000

Crown Office & Procurator Fiscal Service

205,000

Scottish Courts and Tribunals Service

173,000

Food Standards Scotland

24,200

Scottish Administration

52,750,887

The Scottish Parliamentary Corporate Body

117,200

Audit Scotland

11,152

128,352

Total Paid

52,879,239

2022-23 (Restated)

£000

Scottish Government and indirectly funded bodies

46,671,416

Non-Domestic Rates Income Distribution

2,766,000

Crown Office & Procurator Fiscal Service

195,000

Scottish Courts and Tribunals Service

161,500

Food Standards Scotland

19,700

Scottish Administration

49,813,616

The Scottish Parliamentary Corporate Body

110,000

Audit Scotland

11,172

121,172

Total Paid

49,934,788

In 2023-24, the SCF was required by statute to pay funding directly to three recipients, the Scottish Administration, the Scottish Parliament Corporate Body, and Audit Scotland. These bodies are referred to as directly funded bodies. Funding paid to the Scottish Government in respect of the Scottish Administration includes funding paid by the Scottish Government to other Scottish public sector bodies. These are referred to as indirectly funded bodies.

17. Judicial Salaries

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 2023 report is available online[3].

Scottish Government operates a separate bank account, funded directly from the Scottish Consolidated Fund.

Receipts and Payments Account

For the period 1 April 2023 to 31 March 2024

Receipts

2023-24

£000

2022-23

£000

Received from the SCF

38,974

37,400

Income from recovery of overpayments

-

-

Reimbursement of salary costs

-

-

Total Receipts

38,974

37,400

Payments

2023-24

£000

2022-23

£000

Salary Costs

37,702

35,493

Bank Charges

1

1

Total Payments

37,703

35,494

Surplus / (Deficit) For The Period

1,271

1,906

Summary of the balance held at the Government Banking Service:

2023-24

£000

2022-23

£000

Balance brought forward from previous year

4,760

2,854

Surplus/(deficit) of receipts over payments for the year

1,271

1,906

Balance carried forward

6,031

4,760

The number (FTE) of paid judiciary in post was:

At 31 March 2024

At 31 March 2023

Judges (Senators of the College of Justice)

33.6

36.5

Sheriffs Principal

6

6

Sheriffs

123.6

113.25

Summary Sheriffs

28.5

36.5

Members of Lands Tribunal Scotland

2.2

1.8

Chair of the Scottish Land Court

1

1

Deputy Chair of the Scottish Land Court

0

0.8

Members of the Scottish Land Court

2

1.6

18. Proceeds of Crime Receipts

The net balance of Proceeds of Crime (POCA) receipts in the SCF is as follows:

2023-24

2022-23

£000

£000

Balance in the SCF at 1 April

3,667

11,059

Receipts to the SCF in the period

10,198

11,773

Payments to the Scottish Government in the period

(6,040)

(19,165)

Balance in the SCF at 31 March

7,825

3,667

POCA is a source of SG funding and all Justice requirements for applications of POCA are funded from within the general SG funding envelope. This is reflected in the Receipts and Payments Statement and is separate from the management of the cash within the SCF reflected in this note.

19. Victim Surcharge receipts

The Victims and Witnesses (Scotland) Act 2014 includes powers to introduce a Victim Surcharge, payable by offenders convicted of specified offences. The Victim Surcharge (Scotland) Regulations 2019 set up a Victim Surcharge Fund, and set out procedures for its administration, including the collection and allocation of funds. Victim Surcharges receipts are being paid into the SCF since 2020-21, where they are held pending payment to the Scottish Government for allocation.

2023-24

2022-23

£000

£000

Balance in the SCF at 1 April

87

305

Receipts to the SCF in the period

1,166

470

Payments to the Scottish Government in the period

(477)

(688)

Balance in the SCF at 31 March

776

87

20. Analysis of the balance held in the Scottish Consolidated Fund

2023-24

2022-23 (Restated)

£000

£000

Sums due to funded bodies not yet paid

8,607

3,758

Designated receipts not yet paid to UKCF

-

-

KLTR

14

171

-

General SCF Reserve

211,062

192,762

Balance held at the SCF at 31 March

219,840

196,520

Details of the King’s and Lord Treasurer’s Remembrancer balance held in the Fund and its derivation are set out in Note 14. Sums due to funded bodies not yet paid include balances related to Proceeds of Crime, Victims Surcharge and Restitution Fund receipts.

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.

Contact

Email: pawel.kurcz@gov.scot

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