Fiscal Framework Agreement
Scottish Government publishes agreement with UK Government.
The agreement between the Scottish and UK Governments on the financial arrangements to underpin the Scotland Bill has been published.
The fiscal framework agreement confirms:
- The method for adjusting Scotland’s block grant to ensure no detriment as a result of acquiring taxation powers
- An independent review of the block grant adjustment by the end of 2021, with a method from the start of 2022 financial year to be jointly agreed by both Governments
- £200 million to support implementation of new social security powers, with annual funding for ongoing administration costs
- Scotland’s capital borrowing limit will be increased to £3 billion, with an annual borrowing limit of £450 million
- New resource borrowing powers to deal with increased budget volatility will be capped at £1.75 billion
- The Scottish Fiscal Commission will prepare independent forecasts of Scottish tax revenue, demand-driven welfare spending and onshore GDP
- Commencement arrangements and timescales for devolution of new powers.
Deputy First Minister John Swinney said:
“The fiscal framework agreement with the UK Government implements the Smith Commission and is fair to taxpayers in Scotland and across the UK.
“The agreement makes clear that the Barnett formula will remain and that Scotland’s block grant will be adjusted annually to ensure no detriment to Scotland as a result of having new powers.
“The fiscal framework increases the Scottish Parliament’s financial responsibility and allows future Scottish Governments to exercise new powers effectively to create a fairer and more prosperous Scotland. I am pleased the agreement has now been published to allow Parliament and the public to scrutinise and judge for themselves.”
Latest News from
COVID-19 safety in schools20/10/2021 10:05:00
Existing COVID-19 safety mitigations in schools are to remain for now, following advice from senior clinicians.
Coronavirus (COVID-19): state of the epidemic - 15 October 202119/10/2021 15:05:00
This report brings together the different sources of evidence and data about the Covid epidemic to summarise the current situation, why we are at that place, and what is likely to happen next.
Vaccine certification enforcement gets underway19/10/2021 12:05:00
The Coronavirus vaccine certification scheme became subject to enforcement as of yesterday meaning higher risk venues and events affected must verify customers are fully vaccinated, or otherwise exempt, before entry.
Involving young people in COP2619/10/2021 10:05:00
Opportunities to meet world leaders and climate activists.
Transforming evidence sharing18/10/2021 15:05:00
A major transformation programme that will radically overhaul the way that evidence is handled and used by the criminal justice system has been announced.
Scottish Animal Welfare Commission: annual report 2020 to 202118/10/2021 12:05:00
Annual report of the Scottish Animal Welfare Commission (SAWC) showing activity for the year 2020 to 2021.