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Fiscal framework outturn report: 2020

The Fiscal Framework Outturn Report 2020 publishes outturn and reconciliation information for Scottish Income Tax, Scottish Landfill Tax, Land and Buildings Transaction Tax and devolved Social Security benefits, as well as updates on borrowing and the Scotland Reserve.

Fiscal framework outturn report: 2020
10. Scotland Reserve

10. Scotland Reserve 

10.1 The opening balance in the Scotland Reserve at the start of 2019-20 was £605 million. The closing balance on the Reserve for 2019-20 is £434 million, as reported to Parliament at Provisional Outturn in June 2020.

10.2 The expected drawdown from the Scotland Reserve in 2020-21 is £223 million following the 2020-21 Autumn Budget Revision.

10.3 On the basis of planned drawdowns, the residual balance of the Scotland Reserve is £211 million. An update on the reserve position, including the changes from the confirmation of final outturn against the 2019-20 budget will be provided with the 2020-21 Spring Budget Revision.

10.4 Table 26 shows the 2019-20 Reserve position as reported to Parliament at Provisional Outturn in June 2020.

Table 26: Scotland Reserve Forecast (post 2020-21 Summer Budget Revision & 2019-20 Provisional Outturn)
Resource Capital Financial Transaction Total
2019-20 Opening Balance 381.1 65.3 158.6 605.0
2019-20 Planned Drawdowns -248.8 -60.0 -120.0 -428.8
2019-20 Additions to reserve 85.8 75.5 96.2 257.5
2019-20 Closing Balance (Provisional) 218.1 80.8 134.8 433.7
2020-21 Planned Drawdowns -148.6 -70.0 -4.0 -222.6
2020-21 Closing Balance (Provisional) 69.5 10.8 130.8 211.1

10.5 Chapter 3 of Scotland’s Fiscal Outlook: The Scottish Government’s Five Year Financial Strategy from May 2019 sets out the principles and policies that guide the use of the Scottish Government’s fiscal powers, including the use of the Scotland Reserve. The Scottish Government intends to build up the balance in the Scotland Reserve over time as resources allow, in order to have a financial cushion available while ensuring that there remains sufficient capacity in the Reserve to prudently manage any underspend across financial years. A carefully managed reserve is a key element of managing the financial volatility that can arise through the operation of the Fiscal Framework.


Contact

Email: martin.hay@gov.scot