Notes to the Accounts
1. Basis of accounting
In accordance with Section 19(2) of the Public Finance and Accountability (Scotland) Act 2000, these accounts are prepared on a cash basis.
2. Receipts from the Office of the Secretary of State for Scotland
These receipts are paid into the Scottish Consolidated Fund under Section 64(2) of the Scotland Act 1998.
3. Scottish Income Tax
The Scotland Act 2012 Section 25 empowers the Scottish Parliament to set a Scottish Rate of Income Tax for Scottish taxpayers with effect from 6 April 2016. Income tax revenues derived from Scottish taxpayers were assigned to the Scottish Administration commencing from 2016-17.
4. Non-Domestic Rates Income
Non-Domestic Rates Income (NDRI) is collected by the local authorities. These funds are then pooled and a distributable amount set by the Scottish Government. This distributable amount is then added to the General Revenue Grant funding that local authorities receive through their weekly payments. This funding does not come directly to the SCF as cashflows so it is represented here as a notional receipt. Further information about the NDRI can be found in Non-Domestic Rating Account, last published in December 2022.
5. National Insurance Contributions
National Insurance Contributions from Scottish taxpayers are collected by HMRC and paid into the SCF as a funding stream for NHS Scotland.
6. Receipts from devolved taxes
During 2022-23, Revenue Scotland paid £955 million to the Scottish Consolidated Fund in respect of the two fully devolved taxes.
|Land and Buildings Transaction Tax (LBTT)||845,139||752,574|
|Scottish Landfill Tax (SLFT)||109,708||121,578|
|Total fully devolved taxes||954,847||874,152|
7. Borrowing by Scottish Ministers
Under Section 32 of the Scotland Act 2012, as amended by Scotland Act 2016 Section 20, additional borrowing powers were conferred on Scottish Ministers with effect from 1 April 2015. Any sums borrowed and repaid under these provisions must be done via the Scottish Consolidated Fund and hence be reflected in these accounts. The first sums borrowed from the NLF were received by the SCF in 2017-18. A summary of the borrowing position is set out as follows:
|At 31 March 2023||£’000||£’000||£’000|
|At 1 April 2022||1,815,296||2,703||1,817,999|
|At 31 March 2023||2,023,014||3,367||2,026,381|
|At 31 March 2022||£’000||£’000||£’000|
|At 1 April 2021||1,426,691||2,153||1,428,844|
|At 31 March 2022||1,815,296||2,703||1,817,999|
The repayment of borrowing is scheduled as follows:
|At 31 March 2023||£’000||£’000||£’000|
|Less than 1 year||186,977||29,750||216,727|
|1 – 5 years||726,942||99,965||826,907|
|More than 5 years||1,109,095||137,031||1,246,126|
|At 31 March 2022||£’000||£’000||£’000|
|Less than 1 year||139,282||20,318||159,600|
|1 – 5 years||690,171||66,779||756,950|
|More than 5 years||985,843||103,286||1,089,129|
Details of loans taken out are as follows:
At 31 March 2023
|Financial year||Category||Term (years)||Amount borrowed Principal||Amount outstanding Principal|
More details on Scottish Government borrowing can be found in the Fiscal Framework Outturn Report most recently published in September 2023.
8. Voluntary donations
During 2020-21, a procedure was instituted in co-ordination with the UK Government and the other Devolved Administrations to allow businesses in receipt of non-domestic rates relief to voluntarily repay some or all of that relief. Businesses who chose to do so in Scotland were directed to make repayments into the SCF.
9. Crown Estate surplus
Under the provisions of Section 36 of the Scotland Act 2016, the Crown Estate Transfer Scheme 2017 transferred the existing Scottish functions of the Crown Estate Commissioners to Scottish Ministers. A new body, Crown Estate Scotland, was established to manage those functions. All revenue surpluses generated by Crown Estate Scotland are paid into the Scottish Consolidated Fund with effect from 2017-18. The surplus paid into the Fund in 2022-23 amounted to £121 million (2021-22: £13 million). Compared to 2021-22, additional surplus of £103 million paid in 2022-23 relates to net ScotWind revenues.
10. Fines, forfeitures and fixed penalties
The Scotland Act 1998 (Designation of Receipts) (Amendment) Order 2017, issued under the provisions of Section 67 of the Scotland Act 2016, removed fines, forfeitures and fixed penalties receipts from their previous classification as designated receipts under the Scotland Act 1998 (Designation of Receipts) Order 2009.
11. Receipt from the Registers of Scotland
Approval was given by the Scottish Parliament of the Section 17 Order under the Public Services Reform Act on 18 March 2020, coming into force on 31 March 2020, allowing for the repeal of Section 9 of the Public Finance and Accountability (Scotland) Act 2000, and the transfer of reserves from Registers of Scotland. Under these provisions, in 2022-23 £4 million (2021-22: £17 million) represented the balance of retained earnings payable to the Fund.
12. Receipts from and payments to the UK Contingencies Fund
The UK Contingencies Fund is used to finance payments for urgent services in anticipation of UK Parliamentary provision for those services becoming available, and to provide funds required temporarily by government departments for necessary working balances, or to meet other temporary cash deficiencies.
A successful application was made for a short-term Contingencies Fund advance of £313 million based on the forecast funding required in March 2023, being the excess of funding required over the remaining UK Main Estimates Budget cash requirement (available cash funding limit) for Scotland. An increase in the Scotland cash requirement was included in the UK Spring Supplementary Budget, which became available after the relevant legislation received Royal Assent in March. Once the additional Spring Supplementary cash requirement became available, the Contingencies Fund advance was repaid via the SCF and equivalent funding drawn down from the UK Exchequer. The transactions involved are as follows:
|Received from UK Contingencies Fund 1 March 2023||(313,000)|
|Repaid to UK Contingencies Fund 27 March 2023||313,000|
|Received from UK Contingencies Fund 1 November 2021||(12,000,000)|
|Paid to Scottish Government 21 March 2022||11,058,119|
|Received from Scottish Government 21 March 2022||(11,058,119)|
|Repaid to UK Contingencies Fund 21 March 2022||12,000,000|
13. National Loans Fund repayments
Prior to 1 July 1999, the Secretary of State for Scotland lent money to several Scottish bodies out of the National Loans Fund. At 1 July 1999, the right to the sums outstanding was transferred to the Scottish Ministers who must pay the repayments and interest to the Secretary of State for Scotland via the Scottish Consolidated Fund. The remaining NLF loans are with Scottish Water and Registers of Scotland. The SCF Receipts and Payments account includes receipts from those bodies and corresponding payments to the Office of the Secretary of State for Scotland.
14. Receipts for the King’s and Lord Treasurer’s Remembrancer
The King’s and Lord Treasurer’s Remembrancer (KLTR) – previously the Queen’s and Lord Treasurer’s Remembrancer (QLTR) - is the representative of the Crown in Scotland, and is responsible for dealing with ownerless property (“bona vacantia”). Regulation of the activities of the QLTR was transferred to Scottish Ministers by Schedule 8 Paragraph 1 of the Scotland Act 1998. Bona vacantia covers assets of dissolved companies, assets of missing persons and lost and abandoned property. The realised value of such assets is paid into the SCF and remains there until Scottish Parliament authorisation to draw the balances down is obtained in the Budget Act. Accumulated balance available in the Scottish Consolidated Fund has been drawn down by the Scottish Government in full during 2022-23.
The balance of King’s/Queen’s and Lord Treasurer’s Remembrancer receipts paid into the SCF is as follows:
|Balance in the SCF at 1 April||8,052||1,022|
|Receipts in the period||5,022||7,030|
|Payments in the period||(13,074)||-|
|Balance in the SCF at 31 March||-||8,052|
15. Analysis of other receipts
As provided for in Section 64(3) of the Scotland Act 1998 (and certain other legislative provisions) all sums received by members of the Scottish Administration (and certain other bodies) are to be paid into the Scottish Consolidated Fund as Consolidated Fund Extra Receipts (CFERs) unless there are alternative statutory provisions. In practice, most of the receipts of the bodies concerned are authorised to be used to support expenditure under the Budget Act and the Budget Orders.
The Scotland Act 1998 (Designation of Receipts) Order 2009 designates certain receipts (designated receipts) and provides that sums equivalent to these are to be paid to the Office of the Secretary of State for Scotland, in practice for paying into the UK Consolidated Fund. As detailed in note 10, the 2009 Order was amended with effect from 2017-18 to remove a category of receipts (fines, forfeitures and fixed penalties) from classification as designated receipts.
The receipts paid into the SCF in 2022-23 include £12 million recovered under the Proceeds of Crime Act (see Note 18) and £470k recovered under the Victim Surcharge provision (see Note 19) by the Crown Office and Procurator Fiscal Service and Scottish Courts and Tribunals Service. CFER receipts surrendered to the SCF in previous years by Scottish Courts and Tribunals Service were repaid during 2022-23 totalling £79k.
In addition, a one-off receipt of £23 million related to JESSICA/SPRUCE scheme surplus cash has been paid into the SCF following the management change from the European Investment Bank to the Scottish National Investment Bank.
With the exception of designated receipts, all others have been classed as receipts authorised to support expenditure and have been included in the Funding section of the Receipts and Payments Account.
|2022-23||Receipts paid into Fund during period||Receipts classed as Designated|
|Rural Affairs and Islands||153||153|
|Crown Office and Procurator Fiscal Service||8,879||-|
|Scottish Courts and Tribunals Service||4,730||-|
|Net Zero, Environment and Transport||110|
|Social Justice, Housing and Local Government||22,800||-|
|Scottish Courts and Tribunals Service||(79)||-|
|2021-22||Receipts paid into Fund during period||Receipts classed as Designated|
|Crown Office and Procurator Fiscal Service||4,998|
|Scottish Courts and Tribunals Service||4,087||-|
|Scottish Courts and Tribunals Service||(28)||-|
During 2022-23, CFER payments of £153k were paid to Office of the Secretary of State for Scotland.
16. Payments authorised under the Budget Acts
For the period of this account the Scottish Parliament approved Budget (Scotland) Act 2022 (ASP 3) as amended by the Budget (Scotland) Act 2022 Amendment Regulations 2023 (SSI 2023/2) and the Budget (Scotland) Act 2022 Amendment (No 2) Regulations 2023 (SSI 2023/115).
These Orders appropriate sums out of the Scottish Consolidated Fund for the financial year ending 31 March 2023 for the purposes of meeting expenditure in that year in connection with the functions for which expenditure is, by virtue of the Scotland Act 1998 and provisions made under it, payable out of that fund during the year.
|Scottish Government and indirectly funded bodies||49,441,416|
|Crown Office & Procurator Fiscal Service||195,000|
|Scottish Courts and Tribunals Service||161,500|
|Food Standards Scotland||19,700|
|The Scottish Parliamentary Corporate Body||110,000|
|Scottish Government and indirectly funded bodies||48,609,206|
|Crown Office & Procurator Fiscal Service||167,400|
|Scottish Courts and Tribunals Service||143,500|
|Food Standards Scotland||22,100|
|Registers of Scotland||-|
|The Scottish Parliamentary Corporate Body||104,700|
In 2022-23, the SCF was required by statute to pay funding directly to three recipients, the Scottish Administration, the Scottish Parliament Corporate Body and Audit Scotland. These bodies are referred to as directly funded bodies. Funding paid to the Scottish Government in respect of the Scottish Administration includes funding paid by the Scottish Government to other Scottish public sector bodies. These are referred to as indirectly funded bodies. Registers of Scotland became an indirectly funded body with effect from 2020-21 (see Note 11).
17. Judicial Salaries
The salaries of the judiciary are a matter for the UK Government. Information on salaries payable is set out in a report by the Senior Salaries Review Body. The 2023 report is available online.
Scottish Government operates a separate bank account, funded directly from the Scottish Consolidated Fund.
Receipts and Payments Account
For the period 1 April 2022 to 31 March 2023
|Received from the SCF||37,400||37,200|
|Income from recovery of overpayments||-||2|
|Reimbursement of salary costs||-||183|
|Surplus/(Deficit) for the period||1,906||786|
Summary of the balance held at the Government Banking Service:
|Balance brought forward from previous year||2,854||2,068|
|Surplus/(deficit) of receipts over payments for the year||1,906||786|
|Balance carried forward||4,760||2,854|
The number (FTE) of paid judiciary in post was:
|At 31 March 2023||At 31 March 2022|
|Judges (Senators of the College of Justice)||36.5||30.5|
|Members of Lands Tribunal Scotland||1.8||1.8|
|Chair of the Scottish Land Court||1||1|
|Deputy Chair of the Scottish Land Court||0.8||0.8|
|Members of the Scottish Land Court||1.6||1.4|
18. Proceeds of Crime receipts
The net balance of Proceeds of Crime (POCA) receipts in the SCF is as follows:
|Balance in the SCF at 1 April||11,059||10,332|
|Receipts to the SCF in the period||11,773||7,508|
|Payments to the Scottish Government in the period||(19,165)||(6,781)|
|Balance in the SCF at 31 March||3,667||11,059|
POCA is a source of SG funding and all Justice requirements for applications of POCA are funded from within the general SG funding envelope. This is reflected in the Receipts and Payments Statement and is separate from the management of the cash within the SCF reflected in note 18. In 2022-23, £7.3 million was used to fund Justice projects.
19. Victim Surcharge receipts
The Victims and Witnesses (Scotland) Act 2014 includes powers to introduce a Victim Surcharge, payable by offenders convicted of specified offences. The Victim Surcharge (Scotland) Regulations 2019 set up a Victim Surcharge Fund, and set out procedures for its administration, including the collection and allocation of funds. Victim Surcharges receipts were paid into the SCF commencing in 2020-21, where they are held pending payment to the Scottish Government for allocation.
|Balance in the SCF at 1 April||305||149|
|Receipts to the SCF in the period||470||313|
|Payments to the Scottish Government in the period||(688)||(157)|
|Balance in the SCF at 31 March||87||305|
20. Analysis of the balance held in the Scottish Consolidated Fund
|Sums due to funded bodies not yet paid||3,758||189,611|
|Designated receipts not yet paid to UKCF||-||-|
|General SCF Reserve||192,762||6,977|
|Balance held at the SCF at 31 March||196,520||204,640|
Details of the King’s and Lord Treasurer’s Remembrancer balance held in the Fund and its derivation are set out in Note 14. Sums due to funded bodies not yet paid include balances related to Proceeds of Crime, Victims Surcharge and Restitution Fund receipts.
The balance on the General Reserve of the Scottish Consolidated Fund does not necessarily represent an amount available for appropriation by a Budget Act or other means.
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