Fiscal framework between Scottish Government and local government: progress report December 2023

The Verity House Agreement, signed on 30 June 2023 as part of the New Deal with Local Government, committed to concluding a Fiscal Framework which establishes early and meaningful budget engagement, the simplification and consolidation of the Local Government Settlement.

Sources of Funding for the Scottish Government

The framework will reflect the sources of funding that central government has to spend, and the sources of funding which Local Government has to spend. It will set out the interaction between these and how each are set.

The Scottish Government and Local Government acknowledge that single-year budget allocations are sub-optimal across the public sector and our partners, compared with multi-year spending plans which better enable long-term planning.

As the UK Government provides the Scottish Government with an annual resource budget settlement, the Scottish Government does not currently set more than a single year budget (and therefore more than a single year local government finance settlement).



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