Publication - Corporate report

Scottish Budget 2019-2020

Published: 12 Dec 2018
Directorate:
Financial Management Directorate
Part of:
Economy, Scottish Budget
ISBN:
9781787813960

The Scottish Government's proposed spending and tax plans for 2019 to 2020.

241 page PDF

5.1 MB

241 page PDF

5.1 MB

Contents
Scottish Budget 2019-2020
Chapter 7 - Finance, Economy and Fair Work

241 page PDF

5.1 MB

Chapter 7 - Finance, Economy and Fair Work

Portfolio Responsibilities

The Finance, Economy and Fair Work portfolio sits at the heart of delivering the Scottish Government’s ambitious plans to support the development of the Scottish economy from its strong foundations to become a globally competitive, innovative and sustainable country with fairness and opportunity for all. 

A growing, productive economy is one that supports the provision of high quality public services which, in turn, are essential to growing the economy in an inclusive and sustainable way. This portfolio aligns the government’s tax and spending decisions with our enterprise and skills functions to ensure that each complements the other.

The portfolio is guided by Scotland’s Economic Strategy and the four priorities which are vital to our approach of growing an inclusive economy:

  • investing in our people and our infrastructure in a sustainable way;
  • fostering a culture of innovation and research and development;
  • promoting Scotland on the international stage to boost our trade and investment, influence and networks; and
  • promoting inclusive growth and creating opportunity through a fair and inclusive jobs market and regional cohesion.

Following extensive engagement with business, trade unions and others, we published our ‘Economic Action Plan’ on 24 October. The Plan reflects and builds on Scotland’s Economic Strategy and provides greater focus on the range of actions developed to deliver our collective economic objectives. It will ensure that we help Scotland’s businesses to deliver the dual objectives of boosting competitiveness and tackling inequality set out in Scotland’s Economic Strategy. 

It includes a wide-ranging package of new measures addressing priorities such as:

  • responding to the changing skills needs of business and employees by enhancing our support for reskilling and upskilling, particularly digital skills;
  • redoubling efforts to provide stability and new economic opportunities for businesses;
  • delivering new measures to help drive up innovation and entrepreneurship; and
  • showcasing Scotland to the rest of the world and attracting talent for our businesses.

The Economic Action Plan has taken on board the recommendations from: the Sustainable Growth Commission; the Economy, Jobs and Fair Work Committee’s report into Scotland’s Economic Performance; and recommendations from both the National Council of Rural Advisors and the business-led Enterprise and Skills Strategic Plan.

The delivery of the portfolio’s priorities is supported by the following bodies:

  • Scottish Enterprise, Scotland’s national economic development agency;
  • Scottish Development International, who are responsible for supporting international trade and investment; 
  • Scottish Futures Trust, the Scottish Government’s infrastructure delivery company; 
  • Scottish Public Pensions Agency (SPPA) which administers certain public sector pension schemes; 
  • Accountant in Bankruptcy, responsible for administering the process of personal bankruptcy and recording corporate insolvencies in Scotland; 
  • Revenue Scotland, Scotland’s tax authority; and
  • Scottish Fiscal Commission, the independent and official fiscal and economic forecaster.

Portfolio Priorities

The portfolio is fundamental to the delivery of the Scottish Government’s purpose: to focus on creating a more successful country with opportunities for all of Scotland to flourish through increased wellbeing and sustainable and inclusive economic growth. 

The priorities of the Finance, Economy and Fair Work portfolio contribute to a number of National Outcomes including:

  • We have a globally competitive, entrepreneurial, inclusive and sustainable economy.
  • We are open connected and make a positive contribution internationally.
  • We have thriving and innovative businesses, with quality jobs and fair work for everyone. 
  • We are well educated, skilled and able to contribute to society.

Scotland’s economy has continued to grow in 2018, with growth outpacing that of the UK in the first six months of the year. Despite these positive signs, Scotland’s economy still faces significant challenges.

In light of the continued uncertainty around the UK’s exit from the EU, this portfolio budget includes an ambitious package to support and stimulate economic growth, mitigating where possible against the impact of EU exit. 

Our priorities and key investments are reflected under the four themes of the Economic Strategy. Our priorities include:

Investing

  • Supporting of our target of doubling business research and development (R&D) spend from £870 million in 2015 to £1.7 billion by 2025, maintaining our commitment to increase grant support for business R&D from £22 million to £37 million per annum for the three years 2018-21. 
  • Creating a £50 million Town Centre Fund to enable local authorities to stimulate and support a wide range of investments, which encourage town centres to diversify and flourish and become sustainable places for local communities and visitors to live, work and enjoy. 
  • Providing initial funding of £130 million to support the establishment of the Scottish National Investment Bank along with the introduction of the legislation that will underpin it. 
  • Maintaining a stable and competitive tax regime as part of a supportive business environment.
  • Targeting up to £18 million in European funding to establish an Advanced Manufacturing Challenge Fund to ensure all parts of Scotland benefit from developments in advanced manufacturing.
  • Investing £8.3 million to further progress the new National Manufacturing Institute Scotland (NMIS) and along with the related Lightweight Manufacturing Centre, bring together research, industry and the public sector to help companies across Scotland embrace new manufacturing techniques, support research and develop the skills of our workforce.
  • In advance of the Scottish National Investment Bank’s establishment, the £150 million Building Scotland Fund announced in 2017 will provide debt and equity support to the private sector and organisations, such as housing associations and universities, to support the development of housing across all tenures; develop modern industrial and commercial space and support industry-led research and development.

Innovation 

  • Working with business to pilot ‘Productivity Clubs’ to support businesses to help each other to improve managerial capability and diffusion of technology and innovation.
  • Expanding the role of the Can Do Business Innovation Forum to take action on the economic opportunities and challenges of new technologies.
  • Publishing a Future Skills Action Plan in early 2019, setting out how the Government will respond to the actions and recommendations of the Strategic Board for Enterprise and Skills on Future Skills; by ensuring we have the right skills in place to support individuals, employers and our economy.
  • Establishing a National Retraining Partnership to allow businesses, colleges, trade unions and local authorities to work together to ensure that people can learn new skills, or improve their existing skills, at any stage in their working lives. 

Internationalisation

  • Launching a ‘Come to Scotland’ campaign to attract talent and investment and help mitigate the impact of EU exit on Scotland’s ability to attract talent.
  • Invest £5 million as the first phase of our three-year £20 million plan to boost exports by directly supporting more companies to sell their products abroad. We will set out a range of detailed actions to boost Scottish exports with the publication of ‘A Trading Nation: Our Plan for Growing Scotland’s Exports’ by spring 2019.
  • Complete the expansion of the number of people working for Scottish Development International across Europe to market Scotland as an open and welcoming society.

Inclusive Economic Growth

  • Developing Scotland as a world-leading Fair Work Nation, including publishing a Fair Work Action Plan.
  • Investing £5 million over three years to support around 2,000 women return to work following a career break. 
  • Providing £1 million per year to support up to 150 people on very low or no income to retrain and gain employment in the digital economy.
  • Adopting a new default position – termed ‘Fair Work First’ – that will see criteria, including the Living Wage, extended to more contracts and government support grants.

Providing the Jobs and Skills for the Future

The employment rate in Scotland remains amongst the highest on record and the unemployment rate is low. In the last year the youth unemployment rate has been lower and employment for women has been higher in Scotland compared with the UK. However, those further from the labour market still require more individualised support, which is better integrated with other services to help them into long-term sustainable employment. We have developed a new approach to funding employability services through our joint partnership agreement with local authorities, and other partners, which will better align funding and deliver stronger outcomes for people seeking work. 

Our commitments to boosting productivity, competitiveness and inclusive growth will continue in 2019-20 as we focus on:

  • supporting parents to address barriers to work and providing in-work support to help low income parents remain in work, helping meet our child poverty target;
  • closing the disability employment and gender pay gaps, publishing action plans on both;
  • continuing to develop and deliver our devolved employment support service, Fair Start Scotland, giving individualised support to 38,000 individuals to those facing the greatest barriers to employment; 
  • supporting those affected by redundancy through the Partnership Action for Continuing Employment (PACE); and
  • continuing to deliver the £10 million Flexible Workforce Development Fund.

Enterprise and Trade Investment Priorities

We want Scotland to be the most competitive place to do business, delivering a strong and productive economy which creates wealth and employment across Scotland. 

In 2019-20 we will:

  • release the high growth and innovative potential of our manufacturing sector and benefit more fully from its high levels of productivity through delivery of our Manufacturing Action Plan;
  • continue to build on the reputation as a leader in the growing market for ’govtech’ and find new and innovative ways to engage with businesses to both promote innovation in public services and stimulate our digital economy;
  • continue to invest in our talented individuals through the Unlocking Ambition Challenge;
  • enable more Scottish businesses to export more goods and services to a greater number of markets and secure greater foreign investment for Scotland;
  • continue to work with the enterprise agencies in creating a supportive environment, enabling businesses to flourish and reach their full potential; and continue to provide support for businesses to navigate the potential harm of EU exit via our enterprise and skills agencies; and
  • work across the Scottish Government on the wider response to EU exit in relation to the economic aspects of migration, free movement and trade-in services; leading the Scottish Government economic policy response to the impact of EU exit on goods and investment and developing Scottish policy on market access, including free trade and customs arrangements, and the implications of World Trade Organisation requirements. 

Digital Strategy Priorities

The role of digital technologies in our economy and public services cannot be understated and will continue to grow. How we adapt to, and take advantage of, these changes will be key to ensuring Scotland flourishes in the coming decades.

Digital technologies must be at the heart of everything we do. Alongside the delivery of improved connectivity by the Transport, Infrastructure and Connectivity portfolio in 2019-20 we will:

  • continue to work with partners to enhance the digital skills that businesses require, including a new £1 million Digital Start Fund to support people on lower incomes to access the training they require for a career in the digital industries;
  • support businesses to improve their digital capabilities by providing access to funding, skills and advice; 
  • ensure resilience, through cyber security action plans, including a voucher scheme for SMEs;
  • support action to design, deliver and continuously improve modern, efficient public services enabled by digital technology as set out in our digital strategy, ‘Realising Scotland’s full potential in a digital world’;
  • develop a data and informatics partnership with business and academia to support Scotland as a global centre of excellence in data driven innovation; and
  • establish a UNICEF data and informatics hub at the University of Edinburgh to help improve the wellbeing of children in Scotland and around the world.

Investing in Industry

The Scottish Government remains committed to doing all it can to ensure a sustainable future for our industrial sector. This includes a number of actions, such as working alongside investment from business owners (such as Ferguson Marine Engineering Ltd and Burntisland Fabrications Ltd) to provide commercial and equity loan facilities to help companies strengthen their position and diversify into new areas of opportunity. 

In November 2016, Rio Tinto Alcan sold the last remaining aluminium smelter in the UK at Fort William to the GFG Alliance with the backing of a Scottish Government guarantee. Scottish Ministers underwrote this transaction to secure the long-term viability of the smelter and to encourage other industrial opportunities on site and as part of a clear commitment to Scotland’s industrial infrastructure, our rural economy and to inclusive and sustainable growth in the West Highlands.

The Scottish Government is also working with Michelin in partnership with Scottish Enterprise, Dundee City Council, and other partners to transform the site into a key location for new economic and employment opportunities in manufacturing, remanufacturing, recycling and low carbon transport.

Finance Priorities

In 2019-20 Finance will:

  • continue to fund the implementation and operation of financial provisions in the Scotland Act 2016 and the operation of the powers devolved under the Scotland Act 2012;
  • focus our public information and engagement resources on those areas which will make a tangible contribution towards delivering our Programme for Government; 
  • continue to provide a range of procurement and commercial shared services to Scottish Government and public sector organisations across Scotland. In addition to value for money, our focus is on social and economic benefits which help to deliver on the government’s purpose for sustainable and inclusive economic growth through our portfolio of contracts valued at £4.5 billion; and
  • Scottish Futures Trust will continue to enhance value for money from infrastructure investment across the public sector in Scotland.

Scottish Public Pensions Agency Priorities 

In 2019-20 the Scottish Public Pensions Agency will:

  • fully integrate pension and payroll systems into one operating platform while implementing new and improved system and web-based functionality;
  • build on the more customer-centric roles to emerge from the target operating model and the development of new employers’ and members’ charters in order to improve stakeholder engagement and strengthen joint working;
  • continue to invest in our people and apply to gain the ‘platinum’ Investors in People award; and
  • work closely with scheme advisory boards, local authority pension scheme administering authorities, actuaries and other key stakeholders to improve scheme participation rates and evaluate the outcome of the first scheme ‘cost cap’ exercise in terms of member contribution rates and/or accrued benefits. 

Revenue Scotland Priorities 

Revenue Scotland, the Scottish tax authority, is responsible for the collection and management of the devolved taxes, currently Land and Buildings Transaction Tax (LBTT) and Scottish Landfill Tax (SLfT). 

In 2019-20 Revenue Scotland will: 

  • continue to invest in its processes, technology and staff to provide an accessible and convenient taxpayer-focused service to assist all taxpayers to comply with their obligations. This work includes progressing the implementation of our British Sign Language plan and our equalities action plan;
  • through its People Strategy and our Scottish Tax Education Programme (STEP), continue to develop its staff to improve the organisation’s overall performance in collecting and managing the devolved taxes;
  • through its Leading Enabling Ambition Performance programme (LEAP), deliver a new tax collection system, the improved business processes and better customer service; and
  • continue to be proactive in engaging with the Scottish Government, HMRC and other devolved tax authorities to share operational experience of tax policy and legislation.

Accountant in Bankruptcy Priorities

In 2019-20 we will:

  • continue to deliver, with stakeholders, a range of options for individuals seeking debt relief and debt management, supervise insolvency in Scotland, and maintain the public register of insolvencies and the Debt Arrangement Scheme register; and 
  • implement legislative changes to ensure our statutory debt management and debt relief options continue to meet society’s needs.

Scottish Fiscal Commission Priorities

In 2019-20 the Scottish Fiscal Commission will:

  • prepare and publish independent and official forecasts of revenue from fully devolved taxes, Scottish income tax and Non-Domestic Rates. The Commission will also prepare forecasts for demand-led social security expenditure and onshore Scottish Gross Domestic Product (GDP); and
  • produce annual forecasts evaluation publications and occasional working papers on related subjects.

European Regional Development Fund and European Social Fund Priorities 

In 2019-20 European Regional Development Fund (ERDF) and European Social Fund (ESF) will:

  • continue to support economic and social cohesion across the EU as part of the Scottish Government’s role in the implementation of trans-national and territorial co-operation funding programmes. ERDF, ESF and the trans-national and territorial funds provide financial support to projects which will encourage economic growth by: improving business competitiveness; encouraging business innovation; improving skills; tackling poverty and promoting social inclusion; and facilitating the development of the green economy.

Spending Plans

Table 7.01: Finance, Economy and Fair Work Spending Plans (Level 2)

Level 2 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Scottish Public Pensions Agency 4,539.8 4,421.1 4,568.2
Finance  140.3 138.7 130.7
Economic Advice 3.1 1.7 11.0
Enterprise, Trade and Investment 234.5 405.0 514.3
Accountant in Bankruptcy 1.2 3.6 3.3
Employability and Training 43.0 52.9 56.7
European Social Fund - - -
European Regional Development Fund - - -
Revenue Scotland 6.1 10.2 7.6
Scottish Fiscal Commission 1.7 1.6 1.9
Digital Strategy 21.4 22.7 43.1
Total Finance, Economy and Fair Work 4,991.1 5,057.5 5,336.8
of which:      
Total Fiscal Resource 396.0 415.1 411.2
  of which Operating Costs* 98.1
Non-cash 14.0 11.2 26.9
Capital 24.6 76.1 88.2
Financial Transactions 35.0 153.5 265.5
UK Funded AME (NHS and Teachers Pensions) 4,521.5 4,401.6 4,545.0

* In 2019-20, there is a change to the way that Scottish Government staffing budgets are presented and total operating costs are now included within portfolio budgets. This is set out in more detail in the Annex on operating costs.

Presentational Adjustments for Scottish Parliament Approval

Level 2 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Enterprise (NDPB Non-cash) (10.6) (8.3) (8.3)
Borrowing – not approved by Scottish Parliament  (49.0)
Revenue Scotland – shown separately (6.1) (10.2) (7.6)
Scottish Fiscal Commission – shown separately (1.7) (1.6) (1.9)
NHS and Teachers Pensions – shown separately (4,521.5) (4,401.6) (4,545.0)
Central Government Grants to Local Authorities 50.0
Total Finance, Economy and Fair Work 451.2 635.8 775.0
Total Limit on Income (accruing resources) 300.0

What the Scottish Public Pensions Agency (SPPA) budget does

The Scottish Public Pension Agency’s budget supports its principal role of providing pensions administration services for, and paying pensions to, members of Scotland’s NHS, Teachers’, Police and Firefighters’ pension schemes. Its other administrative responsibilities include injury benefits schemes for the NHS, Police, and Fire and Rescue services in Scotland and providing pension calculation services for the Scottish Parliament Pension Scheme and the Scottish Legal Aid Board Pension Scheme. Its customers are all current or former public servants or their employers. The resource and capital budgets support the running of the Agency and the four associated Pension Boards. The Annually Managed Expenditure (AME) budget covers the cost of pension payments to approximately 200,000 retired scheme members.

Table 7.02: Scottish Public Pensions Agency Spending Plans (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Agency Administration 18.3 19.5 23.2
Scottish Teachers’ Pension Scheme 1,554.6 1,496.3 1,525.0
NHS Pension Scheme 2,966.9 2,905.3 3,020.0
Total SPPA 4,539.8 4,421.1 4,568.2
of which:      
Fiscal Resource 14.4 15.7 17.3
Non-cash 1.9 1.4 1.9
Capital 2.0 2.4 4.0
Financial Transactions
UK Funded AME 4,521.5 4,401.6 4,545.0

What the Finance budget does

The Finance budget covers a range of important functions including the Scotland Act implementation budget which funds the operational costs for delivering Scottish income tax and Scottish VAT assignment.

The budget funds Procurement Shared Services, to provide a range of commercial contracting solutions for the Scottish public sector, enabling organisations to deliver economic and social benefits, and savings. E-Commerce-shared services provide systems functionality facilitating business between the public, private and third sectors which increase opportunities to speed payments for firms.

The budget covers the cost of the Scottish Futures Trust in its work to improve the efficiency and effectiveness of infrastructure investment in Scotland.

This budget also supports the provision of property, facilities and information technology.

The £49 million to cover capital borrowing repayments reflects our estimated repayment costs for planned borrowing in 2018-19 although final figures for this commitment will not be settled until the end of 2018-19.

Table 7.03: Finance Spending Plans (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Scotland Act Implementation 12.0 8.6 4.0
Procurement Shared Services 16.8 16.8 22.9
Scottish Futures Trust 4.7 4.5 4.4
Exchequer and Finance 0.0 0.0 15.7
Scottish Government Capital Projects* 0.0 0.0 31.8
Public Information and Engagement 2.8 2.8 2.9
Scotland Act 2016 non-tax implementation 80.0 75.0 -
Capital borrowing repayment 24.0 31.0 49.0
Total Finance 140.3 138.7 130.7
of which:      
Fiscal Resource 140.3 138.7 98.9
Non-cash 14.6
Capital 17.2
Financial Transactions
UK Funded AME

See footnote on operating costs in Table 7.01
* Previously included within the Administration chapter

What the Economic Advice budget does

The Office of the Chief Economic Adviser budget provides for the procurement of data and specific technical assistance to strengthen understanding of key developments in the economy and public finances and to support statutory functions around the publication of official statistics.

The Council of Economic Advisers’ budget supports the provision of economic advice to Ministers, both privately in meetings and publicly through its Annual Reports. Members are not remunerated for their time.

The consumer policy and advice budget delivers advice to citizens across Scotland by the Citizens Advice Network and ensures consumer interests are represented to government, regulators and decision makers. 

The Consumer Scotland budget is for establishment of a new public body to represent consumer interests and propose solutions to issues causing the most significant consumer detriment in Scotland. It will fulfil a manifesto commitment, contribute to ensuring fairness in how wealth, resources and opportunities are distributed, and encourage participation.

Table 7.04: Economic Advice Spending Plans (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Office of the Chief Economic Adviser 0.5 1.0 6.4
Office of the Chief Statistician 1.9
Council of Economic Advisers 0.1 0.1 0.1
Economic Policy and Advice 1.3
Consumer Scotland Policy and Advice 0.6 0.6 3.2
Total Economic Advice 3.1 1.7 11.0
of which:      
Fiscal Resource 3.1 1.7 11.0
Non-cash
Capital
Financial Transactions
UK Funded AME

See footnote on operating costs in Table 7.01

What the Digital Strategy budget does

This budget: facilitates digital transformation across the public sector; funds assurance activities that help major digital projects to be delivered on track and on budget; funds direct investment to enhance digital skills for businesses; encourages digital participation; supports data driven innovation; and funds the creation of Scottish Government statistics.

Table 7.05: Digital Strategy Spending Plans (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Digital Strategy 21.4 22.7 43.1
of which:      
Fiscal Resource 21.4 22.7 31.1
Non-cash
Capital
Financial Transactions 12.0
UK Funded AME

See footnote on operating costs in Table 7.01

What the Enterprise, Trade and Investment budget does

The Enterprise budget funds Scottish Enterprise and other enterprise-related activity. The Innovation and Industries budget will invest in development and application of research, innovation and technology, support entrepreneurial activity and includes the Building Scotland Fund and Scottish Growth Scheme. The International Trade and Investment budget supports our increased ambitions for internationalisation, building our international presence and supporting a range of detailed actions in ‘A Trading Nation: Our Plan for Growing Scotland’s Exports’. It also supports the development of trade policy in response to EU exit, and supports the attraction and retention of international investment into Scotland’s economy. This budget also supports the delivery of our Hubs in London, Dublin and Berlin. Those offices will continue to develop their influence and strengthen their relationships, deepening our impact in key markets, encouraging collaboration, supporting trade and innovation and creating opportunities to showcase Scotland’s cultural and creative offering.

The Scottish National Investment Bank Bill will pave the way for the Bank to become operational in 2020 leading to a step change in innovative and inclusive growth. Development of the Bank is also supported by investment through the Building Scotland Fund over 2018-21 and the Scottish Growth Scheme.

Table 7.06: Enterprise, Trade and Investment Spending Plans (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Enterprise 223.8 289.3 276.5
Innovation and Industries 10.7 115.7 106.9
Scottish National Investment Bank 130.9
Total Enterprise, Trade and Investment 234.5 405.0 514.3
of which:      
Fiscal Resource 167.0 175.8 187.7
Non-cash 10.6 8.3 8.5
Capital 21.9 67.4 64.6
Financial Transactions 35.0 153.5 253.5
UK Funded AME - - -

See footnote on operating costs in Table 7.01

What the Accountant in Bankruptcy budget does

Accountant in Bankruptcy (AiB) is largely self-funded through statutory fees for administering and supervising insolvency processes. The budget supports the agency’s work to provide fair access to debt relief and debt management for the people of Scotland. 

Capital investment in IT systems assists the agency to fulfil its duties and meet its digital agenda.

Table 7.07: Accountant in Bankruptcy Spending Plans (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Operating Expenditure 13.0 12.8 12.7
Capital Expenditure 0.7 1.0 0.8
Retained Income (12.5) (10.2) (10.2)
Total Accountant in Bankruptcy 1.2 3.6 3.3
of which:      
Fiscal Resource (1.0) 1.1 1.0
Non-cash 1.5 1.5 1.5
Capital 0.7 1.0 0.8
Financial Transactions
UK Funded AME

What the Employability and Training budget does

The Employability and Training budget directly supports the Scottish Government’s approach to employability and fair work and supports the ongoing delivery of the devolved employability service, Fair Start Scotland.

Table 7.08: Employability and Training Spending Plans (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Employability and Training 43.0 52.9 56.7
Total Employability and Training 43.0 52.9 56.7
of which:      
Fiscal Resource 43.0 51.9 56.1
Non-cash 0.4
Capital 1.0 0.2
Financial Transactions
UK Funded AME

See footnote on operating costs in Table 7.01

What the Revenue Scotland budget does

Revenue Scotland’s budget provides for the administration of the two devolved taxes – Land and Buildings Transaction Tax and Scottish Landfill Tax. The budget supports investment in staff, processes and technology to build on the organisation’s performance in collecting and managing the devolved taxes. The capital provision will support the renewal of Revenue Scotland’s digital tax administration system, including improvements in business processes.

Table 7.09: Revenue Scotland Spending Plans (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Total Revenue Scotland 6.1 10.2 7.6
of which:      
Fiscal Resource 6.1 5.9 6.2
Non-cash
Capital 4.3 1.4
Financial Transactions
UK Funded AME

What the Scottish Fiscal Commission budget does

The Scottish Fiscal Commission budget supports the production of independent and official fiscal and economic forecasts for Scotland to help inform fiscal events such as the Scottish Budget. It will also enable the appointment of an independent reviewer to undertake a review of the Commission’s performance, as required by their legislation, which is scheduled to take place in 2019. 

Table 7.10: Scottish Fiscal Commission Spending Plans (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Scottish Fiscal Commission 1.7 1.6 1.9
of which:      
Fiscal Resource 1.7 1.6 1.9
Non-cash
Capital
Financial Transactions
UK Funded AME

What the European Regional Development Fund and European Social Fund budget does

The European Regional Development Fund (ERDF) and European Social Fund (ESF) make significant resources available to Scotland over the EU’s seven-year budget cycle. For the period 2014 to 2020 some €944 million has been allocated to Scotland. The Scottish Government will manage these funds and allocate them according to programmes agreed with the European Commission and in accordance with EU regulations.

The Scottish Government, working through a network of lead partners, will allocate the funds to projects, schemes or programmes across Scotland. When funds have been allocated and spent the lead bodies will seek payment of the funds from Scottish Government. As the Scottish Government pays out to these bodies it will recover the funds from the European Commission. The funds do not impact the Scottish Government’s overall budget and therefore are represented as zero in the budget tables.

Table 7.11: European Regional Development Fund – Spending Plans (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Grant to Local Authorities
Central Government Spend
Grants to Local Authorities – EC Income
Central Government Spend – EC Income
Total
of which:      
Fiscal Resource
Non-cash
Capital
Financial Transactions
UK Funded AME

Table 7.12: European Social Fund – Spending Plans (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Grant to Local Authorities
Central Government Spend
Grants to Local Authorities – EC Income
Central Government Spend – EC Income
Total
of which:      
Fiscal Resource
Non-cash
Capital
Financial Transactions
UK Funded AME

What the Central Government Grants to Local Authorities budget does

We will work in partnership with COSLA and local authorities to deliver the £50 million Town Centre Fund investment. The aim is to invest in inclusive growth which supports town centres to become more diverse and sustainable, creating footfall through local improvements and partnerships which encourage town centres to become more vibrant, creative, enterprising and accessible places for their communities.

Table 7.13: Central Government Grants to Local Authorities (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Town Centre Fund 50.0
of which:      
Fiscal Resource
Non-cash
Capital 50.0
Financial Transactions
UK Funded AME

Contact

Email: Finance.co-ordination@gov.scot