Fiscal Framework Review - joint agreement between Scottish and UK Governments: 20 July 2023

A joint communique between the Scottish and UK governments on agreement of the review of the Scottish Government's Fiscal Framework.

Chief Secretary to the Treasury John Glen and the Deputy First Minister of Scotland, Shona Robison held talks on 20 July to discuss the review of the Scottish Government’s Fiscal Framework. 

Following a series of negotiations, Ministers have agreed on an updated Fiscal Framework, which will be published in due course. This follows the completion of an independent report into the Scottish Government’s block grant adjustments, which is also soon to be published.  

This deal updates the 2016 Fiscal Framework Agreement following a Parliament’s worth of experience and helps to keep the Scottish Government’s devolution settlement up to date.

Alongside this agreement both governments acknowledged the important independent work undertaken by Audit Scotland and the Scottish Fiscal Commission in providing scrutiny of the Scottish Government’s finances. Both Governments reaffirmed their support for these bodies and the calls from the Finance and Public Administration committee to increase this reporting as set out in their letter to the Commission of May 2023. Both governments noted that the Framework for Audit and Accountability which sits alongside the Scottish Government’s Fiscal Framework will also be reviewed in due course.

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