Spring Budget Revision 2024-2025 guidance: finance update for FPAC
Background information provided to the Finance and Public Administration Committee (FPAC) to help with members' scrutiny of the Spring Budget Revision (SBR) 2024 to 2025.
C. Reflection of Fiscal Statement in the Spring Budget Revision
103. In her letter to the committee on 3 September 2024 the Cabinet Secretary for Finance and Local Government detailed the different components which comprised the, up to, £500 million of saving measures. These were: - “the previously announced decisions to not make permanent the peak fares removal pilot, or progress the concessionary fares extension to asylum seekers pilot, and agreement with Local Government that they can draw on existing programmes to fund the pay deal; the total of these measures is £65 million.” - “new additional measures announced today totalling £188.4 million;” - “a further up to £60 million savings anticipated to be generated through the emergency spending controls;” - “These savings should also be considered in the context of the recent Scottish Government decision to mirror the UK Government decision not to retain universality in the winter fuel payment, which would have cost up to £160 million.”
104. Savings as a result of not making permanent the peak fares pilot or progressing the concessionary fares extension to asylum seekers pilot are not included within the budget revision as funding would require to be provided to the portfolio or additional savings taken forward to continue with the schemes.
105. Similarly, the granting of additional flexibilities to Local Government to manage the pay deal pressures within their existing programmes has not resulted in a funding change within the document.
106. The table below incudes in a reconciliation of the savings outlined in the Annex A of the letter sent to the FPAC on 3 September 2024 and what has been included within the Autumn and Spring Budget Revisions.
| Portfolio and Budget Line | Total savings | Reflected in the ABR | Reflected in the SBR | Reflected through outturn | Unfunded pressure reduction |
|---|---|---|---|---|---|
| Visit Scotland | 0.8 | 0.0 | 0 | 0.8 | 0.0 |
| European Structural Fund Disallowance | 0.8 | 0.0 | 0.8 | 0 | 0.0 |
| Deputy First Minister, Economy and Gaelic | 1.6 | 0.0 | 0.8 | 0.8 | 0.0 |
| HE Student Support | 6.0 | 6.0 | 0 | 0 | 0.0 |
| Children's Right | 0.3 | 0.0 | 0 | 0.3 | 0.0 |
| Early Learning Childcare (ELC) | 0.2 | 0.0 | 0 | 0.2 | 0.0 |
| Other | 0.2 | 0.0 | 0 | 0.2 | 0.0 |
| Education and Skills | 6.7 | 6.0 | 0 | 0.7 | 0.0 |
| Community Eye Care | 2.4 | 2.4 | 0 | 0 | 0.0 |
| COVID-19 | 20.3 | 17.5 | 2.8 | 0 | 0.0 |
| Education and Training | 8.2 | 7.6 | 0.6 | 0 | 0.0 |
| General Medical Services | 11.0 | 7.3 | 3.7 | 0 | 0.0 |
| Health Improvement and Protection | 4.1 | 0.9 | 3.2 | 0 | 0.0 |
| Mental Health Services | 18.8 | 14.0 | 4.8 | 0 | 0.0 |
| National Care Service / Adult Social Care | 13.6 | 9.1 | 4.5 | 0 | 0.0 |
| Other | 27.7 | 14.4 | 13.3 | 0 | 0.0 |
| Quality and Improvement | 7.8 | 3.6 | 4.2 | 0 | 0.0 |
| Revenue Consequences of NPD Schemes | 2.0 | 2.0 | 0 | 0 | 0.0 |
| Health and Social Care | 115.9 | 78.8 | 37.1 | 0 | 0.0 |
| Safer Communities | 0.1 | 0.0 | 0 | 0.1 | 0.0 |
| Justice and Home Affairs | 0.1 | 0.0 | 0 | 0.1 | 0.0 |
| Scottish Water Interest on Voted Loans | 16.0 | 16.0 | 0 | 0 | 0.0 |
| Zero Waste | 2.5 | 2.5 | 0 | 0 | 0.0 |
| Nature Restoration | 1.0 | 1.0 | 0 | 0 | 0.0 |
| Energy Efficiency and Decarbonisation | 0.9 | 0.0 | 0.9 | 0 | 0.0 |
| Energy Efficiency and Decarbonisation | 0.8 | 0.0 | 0.8 | 0 | 0.0 |
| Scottish Industrial Energy Transformation Fund | 0.5 | 0.0 | 0.5 | 0 | 0.0 |
| Carbon Capture, utilisation and storage (CCUS) | 0.5 | 0.0 | 0.5 | 0 | 0.0 |
| Energy Industries | 0.4 | 0.0 | 0.4 | 0 | 0.0 |
| Energy Industries | 0.3 | 0.0 | 0.3 | 0 | 0.0 |
| Hydrogen | 0.3 | 0.0 | 0.3 | 0 | 0.0 |
| Air Quality public engagement strategy | 0.1 | 0.1 | 0 | 0 | 0.0 |
| Environmental Standards Scotland op costs | 0.1 | 0.1 | 0 | 0 | 0.0 |
| Net Zero and Energy | 23.4 | 19.7 | 3.7* | 0.0 | 0.0 |
| Community Led Local Development (CLLD) | 0.8 | 0.0 | 0.8 | 0 | 0.0 |
| Land Reform | 0.5 | 0.0 | 0.5 | 0 | 0.0 |
| Animal Licences | 0.1 | 0.0 | 0.1 | 0 | 0.0 |
| Rural Affairs, Land Reform and Islands | 1.4 | 0.0 | 1.4 | 0 | 0.0 |
| Cladding remediation | 0.7 | 0.0 | 0 | 0.7 | 0.0 |
| Ukrainian Resettlement Programme | 0.5 | 0.0 | 0 | 0.5 | 0.0 |
| Other | 0.6 | 0.0 | 0.6 | 0 | 0.0 |
| Social Security Scotland - workforce savings | 7.0 | 7.0 | 0 | 0 | 0.0 |
| Social Security Scotland | 5.0 | 5.0 | 0 | 0 | 0.0 |
| Social Security | 1.0 | 0.0 | 1.0 | 0 | 0.0 |
| Social Security - Other | 0.9 | 0.0 | 0.9 | 0 | 0.0 |
| Social Justice | 15.7 | 12.0 | 2.5 | 1.2 | 0.0 |
| Active & Sustainable Travel | 23.7 | 0.0 | 0 | 0 | 23.7 |
| Transport | 23.7 | 0.0 | 0 | 0 | 23.7 |
| TOTAL | 188.5 | 116.5 | 39 .3 | 1.6 | 23.7 |
* Savings have been realised within the Net Zero and Energy portfolio which exceeds the amounts outlined within the Fiscal Statement. The exact split of these savings differs from what was outlined and is detailed within the SBR supporting documentation
107. The delivery of savings within the Health and Social Care portfolio are included in the table above. These savings have been retained within the portfolio and are not included as funding reductions within either the Autumn or Spring Budget Revision. All other savings are included as funding reduction within the supporting document.
108. There are no amounts included within the either the Autumn or Spring Budget Revision in respect of the £60 million forecast to be realised as a consequence of the emergency spending controls. An update on these will be included as part of the Spring Budget Revision.
109. The decision to mirror the UK Government decision not to retain universality in the winter fuel payment was reflected in the Autumn Budget Revision. An amount of £148 million was included subject to revised forecasts which have been reflected in the Spring Budget Revision.