6. Proceeds of Crime
61. Revenue seized under the Proceeds of Crime Act 2002 is subject to a BGA. The basis on which this is carried out is the subject of dispute between the Scottish and UK Governments and the BGA remains at negative £4 million while the dispute remains unresolved. The Scottish and UK Governments agreed to consider this issue as part of the review of the Fiscal Framework. Given the narrow scope of the 2023 review, the focus was on removing the indexation of “Revenues from courts and tribunals” – which includes fine, forfeitures, fixed penalties and amounts recovered under Proceeds of Crime legislation – as outlined above, so this dispute remains unresolved.
62. Provisional outturn revenue recovered under the Proceeds of Crime Act in 2022-23 is £7.3 million. The Scottish Government receives all revenues recovered under the Proceeds of Crime Act, however, outturn revenues are hypothecated for spend on community projects. Due to this hypothecation of funds and the negative £4 million BGA, the net position for the Scottish Budget is negative £4 million while this BGA remains in force.
63. No reconciliation takes place while the BGA remains the subject of dispute between the Scottish and UK Governments.
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