Information

Scottish Budget: 2023-24

The Scottish Budget sets out the Scottish Government’s proposed spending and tax plans for 2023 to 2024, as presented to the Scottish Parliament.

This document is part of a collection


Chapter 6 Finance & Economy

Portfolio Responsibilities

The Finance and Economy portfolio is at the heart of the Scottish Government's ambition to build a stronger, fairer, greener economy for all Scotland's people and places, and to make our economy more sustainable and resilient in the longer term.

Through the National Strategy for Economic Transformation, the portfolio will build a strong, vibrant and diverse economy that promotes wellbeing, attracts investment and facilitates the transition to a Net Zero economy. It also supports our national digital infrastructure and helps every sector of the economy to increase their digital capacity and capability. It ensures that we tackle the global climate emergency, promote fair work, and through our investment in employability and training we are delivering on the government's ambition to eradicate child poverty and remove structural barriers for those who struggle to access the labour market.

The portfolio will continue to support innovation, through the publication of our National Innovation Strategy, setting out actions to improve our innovation performance, grow our economy, create jobs and bring in investment. The Strategy will identify areas where Scotland has the opportunity to become a world leader and will set out a cluster building approach. We will develop and roll out a delivery plan empowering regions to become lead agents of economic growth, building on the Regional Economic Policy review. Furthermore, we are continuing to deliver statutory responsibilities and policies for the operation and transformation of the planning system and continued investment in our communities and places.

We will also implement the next phase of delivery of our Trade and Investment plans to set the direction for our work on new market opportunities, attracting the high-quality investment and technologies needed, and supporting export potential in key sectors identified in the National Strategy for Economic Transformation.

The Scottish Government remains committed to meeting the needs of our island communities, and we will complete and deliver Ferguson Marine vessels, the Glen Sannox 801 and 802. We will support the yard in securing a sustainable future. The funding set out in this budget is the requirement set out by Ferguson Marine to Parliament on 28 September 2022 and we continue our due diligence on those figures and will update Parliament once concluded.

The portfolio supports Scottish Enterprise, Highland and Islands Enterprise, South of Scotland Enterprise, Visit Scotland, Accountant in Bankruptcy, Consumer Scotland and Scottish National Investment Bank. It also has responsibility for City Region and Growth Deals and European Structural Funds.

The portfolio is also responsible for key functions of Government around public finances, fiscal policy, taxation, procurement, digital strategy, connectivity, and digital economy; and for the funding of Revenue Scotland, the Scottish Fiscal Commission, Scottish Futures Trust, Scottish Public Pensions Agency and Registers of Scotland. Work will continue on approaches to improving efficiency and collaboration, building on the platform of the Resource Spending Review. Progress continues on: shared services, procurement, public sector property, digital public services and revenue raising. Engagement continues with partners, supporting the collaboration and reform necessary to ensure sustainable public services.

Finance and Economy

Table 6.01: Spending Plans (Level 2)
Level 2 2021-22 Budget 2022-23 Budget 2023-24 Budget
£m £m £m
Scottish Public Pensions Agency 5,879.5 6,498.7 6,954.7
Other Finance 88.1 76.4 69.2
Accountant in Bankruptcy 2.2 2.1 2.0
Digital 143.6 191.5 152.0
Planning 12.3 13.9 12.3
Revenue Scotland 7.1 7.9 8.2
Scottish Fiscal Commission 2.0 2.3 2.5
Registers of Scotland 11.2 8.5 10.4
Employability and Training 56.2 124.6 135.1
Enterprise, Trade and Investment 446.6 480.6 423.1
European Structural Funds
European Regional Development Fund
Economic Advice 12.6 9.9 11.3
Consumer Scotland 2.5 2.4
Scottish National Investment Bank 205.0 215.7 244.4
Cities Investment and Strategy and Regeneration 321.4 329.6 263.2
Ferguson Marine 47.5 35.9 60.9
Tourism 65.1 51.2 49.4
COVID-19 Funding 640.0
Total Finance and the Economy 7,940.3 8,051.2 8,401.3
of which:
Total Fiscal Resource 1,172.2 567.4 594.8
of which Operating Costs 114.9 106.7 115.2
Non-cash 38.6 47.8 50.3
Capital 643.3 681.0 577.2
Financial Transactions (FTs) 232.4 284.6 258.0
UK Funded AME 5,853.8 6,470.4 6,921.0
Presentational Adjustments for Scottish Parliament Approval
Revenue Scotland – shown separately (7.1) (7.9) (8.2)
Scottish Fiscal Commission – shown separately (2.0) (2.3) (2.5)
Registers of Scotland – shown separately (11.2) (8.5) (10.4)
NHS and Teachers' Pensions – shown separately (5,853.8) (6,470.4) (6,921.0)
Enterprise (NDPB non-cash) (8.3) (18.0) (18.0)
Ferguson Marine (NDPB non-cash) (0.5) (0.5) (0.5)
Highlands and Island Enterprise (NDPB non-cash) (5.1) (2.0) (2.5)
South of Scotland Enterprise (NDPB non-cash) (2.5) (1.0) (0.5)
Scottish National Investment Bank (NDPB non-cash) (0.8) (0.8)
Scottish Futures Trust (NDPB non-cash) (0.1) (0.1)
Tourism (NDPB non-cash) (1.4) (2.5) (2.5)
Total Finance and the Economy* 2,048.4 1,537.3 1,434.2
Total Limit on Income (accruing resources) 400.0

* Resource cost of borrowing no longer shown as part of the Finance and Economy portfolio and is instead shown as a deduction against total funding

Table 6.02: Scottish Public Pensions Agency Spending Plans (Level 3)
Level 3 2021-22 Budget 2022-23 Budget 2023-24 Budget
£m £m £m
Agency Administration 25.7 28.3 33.7
Scottish Teachers Pension Schemes 1,922.8 2,002.2 2,280.0
NHS Pension Scheme 3,931.0 4,468.2 4,641.0
Total SPPA 5,879.5 6,498.7 6,954.7
of which
Fiscal Resource 20.3 19.3 24.0
Non-cash 3.2 4.4 6.2
Capital 2.2 4.6 3.5
FTs
UK Funded AME 5,853.8 6,470.4 6,921.0
Table 6.03: Other Finance Spending Plans (Level 3)
Level 3 2021-22 Budget 2022-23 Budget 2023-24 Budget
£m £m £m
Tax and Revenues Development (Scotland Act Implementation) 2.6 2.1 2.2
Procurement Shared Services 23.8 27.2 24.5
Scottish Futures Trust 4.1 3.9 3.7
Exchequer and Finance 23.7 14.3 12.4
Scottish Government Capital Projects 27.0 23.8 16.8
Public Information and Engagement 2.8 2.7 2.3
Growth Accelerators 1.5 1.5 7.4
Green Growth Accelerator 1.0 1.0
Finance FTs 1.5
Total Other Finance 88.1 76.4 69.2
of which:
Fiscal Resource 59.6 52.5 52.3
Non-cash 12.0 11.1 9.9
Capital 15.0 12.8 7.0
FTs 1.5
UK Funded AME
Table 6.04: Accountant in Bankruptcy Spending Plans (Level 3)
Level 3 2021-22 Budget 2022-23 Budget 2023-24 Budget
£m £m £m
Accountant in Bankruptcy 2.2 2.1 2.0
Total Accountant in Bankruptcy 2.2 2.1 2.0
of which:
Fiscal Resource 0.3 0.3
Non-cash 0.8 1.0 0.9
Capital 1.1 1.1 0.9
FTs
UK Funded AME
Table 6.05: Digital Spending Plans (Level 3)
Level 3 2021-22 Budget 2022-23 Budget 2023-24 Budget
£m £m £m
Digital Strategy 30.6 44.8 55.9
Digital Economy 10.2 15.2 (1.0)
Digital Connectivity 102.8 131.5 97.2
Total Digital 143.6 191.5 152.0
of which:
Fiscal Resource 40.3 34.3 38.2
Non-cash 3.5
Capital 101.5 151.2 112.3
FTs 1.8 6.0 (2.0)
UK Funded AME
Table 6.06: Planning Spending Plans (Level 3)
Level 3 2021-22 Budget 2022-23 Budget 2023-24 Budget
£m £m £m
Planning 11.6 13.3 11.7
Planning and Environmental Appeals 0.7 0.6 0.6
Total Planning 12.3 13.9 12.3
of which:
Fiscal Resource 7.3 6.9 5.3
Non-cash
Capital 5.0 7.0 7.0
FTs
UK Funded AME
Table 6.07: Revenue Scotland Spending Plans (Level 3)
Level 3 2021-22 Budget 2022-23 Budget 2023-24 Budget
£m £m £m
Revenue Scotland 7.1 7.9 8.2
Total Revenue Scotland 7.1 7.9 8.2
of which:
Fiscal Resource 6.2 6.7 7.2
Non-cash 0.4 0.5 0.6
Capital 0.5 0.8 0.5
FTs
UK Funded AME
Table 6.08: Scottish Fiscal Commission Spending Plans (Level 3)
Level 3 2021-22 Budget 2022-23 Budget 2023-24 Budget
£m £m £m
Scottish Fiscal Commission 2.0 2.3 2.5
Total Scottish Fiscal Commission 2.0 2.3 2.5
of which:
Fiscal Resource 2.0 2.3 2.5
Non-cash
Capital
FTs
UK Funded AME
Table 6.09: Registers of Scotland Spending Plans (Level 3)
Level 3 2021-22 Budget 2022-23 Budget 2023-24 Budget
£m £m £m
Registers of Scotland 11.2 8.5 10.4
Registers of Scotland 11.2 8.5 10.4
of which:
Fiscal Resource 4.0
Non-cash 4.2 6.0 4.5
Capital 3.0 2.5 5.9
FTs
UK Funded AME
Table 6.10: Employability and Training Spending Plans (Level 3)
Level 3 2021-22 Budget 2022-23 Budget 2023-24 Budget
£m £m £m
Employability and Training 56.2 124.6 135.1
Total Employability and Training 56.2 124.6 135.1
of which:
Fiscal Resource 56.1 124.5 135.1
Non-cash 0.1 0.1
Capital
FTs
UK Funded AME
Table 6.11: Enterprise, Trade and Investment Spending Plans (Level 3)
Level 3 2021-22 Budget 2022-23 Budget 2023-24 Budget
£m £m £m
Enterprise 299.6 302.6 280.2
Highlands and Islands Enterprise 67.6 64.3 62.7
South of Scotland Enterprise Agency 35.7 37.0 34.5
Innovation, Industries, Trade and Investment 43.7 76.6 45.8
Total Enterprise, Trade and Investment 446.6 480.6 423.1
of which:
Fiscal Resource 242.3 230.6 239.5
Non-cash 16.1 21.0 21.0
Capital 159.1 156.3 136.4
FTs 29.1 72.7 26.2
UK Funded AME
Table 6.12: European Structural Funds 2014-20 Programmes Spending Plans (Level 3)
Level 3 2021-22 Budget 2022-23 Budget 2023-24 Budget
£m £m £m
ESF Central Government Spend – EC Income
ESF Central Government Spend
ESF Grants to Local Authorities
ESF Grants to Local Authorities – EC Income
Total ESF 2014-20 Programmes
of which:
Fiscal Resource
Non-cash
Capital
FTs
UK Funded AME
Table 6.13: European Regional Development Funds Spending Plans (Level 3)
Level 3 2021-22 Budget 2022-23 Budget 2023-24 Budget
£m £m £m
ERDF Central Government Spend – EC Income
ERDF Central Government Spend
ERDF Grants to Local Authorities
ERDF Grants to Local Authorities – EC Income
Total ERDF 2014-20 Programmes
of which:
Fiscal Resource
Non-cash
Capital
FTs
UK Funded AME

Tables 6.12 and 6.13 reflect European Funding and as this is not voted for as part of the Scottish Budget is reflected as zero. The scheme comes to an end on 31 March 2025.

Table 6.14: Economic Advice Spending Plans (Level 3)
Level 3 2021-22 Budget 2022-23 Budget 2023-24 Budget
£m £m £m
Office of the Chief Economic Adviser 7.7 7.0 8.7
Council of Economic Advisers 0.1
Consumer Policy and Advice 4.8 2.9 2.6
Total Economic Advice 12.6 9.9 11.3
of which:
Fiscal Resource 12.6 9.9 11.3
Non-cash
Capital
FTs
UK Funded AME
Table 6.15: Consumer Scotland Spending Plans (Level 3)
Level 3 2021-22 Budget 2022-23 Budget 2023-24 Budget
£m £m £m
Consumer Scotland 2.5 2.4
Total Consumer Scotland 2.5 2.4
of which:
Fiscal Resource 2.5 2.4
Non-cash
Capital
FTs
UK Funded AME
Table 6.16: Scottish National Investment Bank Spending Plans (Level 3)
Level 3 2021-22 Budget 2022-23 Budget 2023-24 Budget
£m £m £m
Scottish National Investment Bank 205.0 215.7 244.4
Total Scottish National Investment Bank 205.0 215.7 244.4
of which:
Fiscal Resource 5.0 9.0 5.8
Non-cash 0.8 0.8
Capital
FTs 200.0 205.9 237.8
UK Funded AME
Table 6.17: Cities Investment and Strategy and Regeneration Spending Plans (Level 3)
Level 3 2021-22 Budget 2022-23 Budget 2023-24 Budget
£m £m £m
Cities Investment and Strategy 209.9 233.2 204.0
Regeneration 111.5 96.3 59.2
Total Cities Investment and Strategy and Regeneration 321.4 329.6 263.2
of which:
Fiscal Resource 29.0 23.6 26.4
Non-cash
Capital 292.4 306.0 240.8
FTs (4.0)
UK Funded AME
Table 6.18: Ferguson Marine Spending Plans (Level 3)
Level 3 2021-22 Budget 2022-23 Budget 2023-24 Budget
£m £m £m
Ferguson Marine 47.5 35.9 60.9
Total Ferguson Marine 47.5 35.9 60.9
of which:
Fiscal Resource 2.0 2.0 2.8
Non-cash 0.5 0.5 0.5
Capital 45.0 33.4 57.6
FTs
UK Funded AME
Table 6.19: Tourism Spending Plans (Level 3)
Level 3 2021-22 Budget 2022-23 Budget 2023-24 Budget
£m £m £m
Tourism 65.1 51.2 49.4
Total Tourism 65.1 51.2 49.4
of which:
Fiscal Resource 45.2 43.4 41.6
Non-cash 1.4 2.5 2.5
Capital 18.5 5.3 5.3
FTs
UK Funded AME

Finance and Economy intended contributions to the National Outcomes

Primary National Outcomes

  • Economy
  • International
  • Fair Work and Business
  • Environment

Secondary National Outcomes

  • Poverty
  • Communities
  • Children and Young People
  • Education
  • Human Rights

For further information on the purpose of the portfolio budget, and contributions to national outcomes (including impacts of spend on equality of outcome) please refer to the relevant portfolio annex in the published Equality and Fairer Scotland Budget Statement.

Contact

Email: ScottishBudget@gov.scot

Back to top