Scottish Government Consolidated Accounts: year ended 31 March 2022

Portfolio Outturn Statements

Health and Social Care
Portfolio Outturn Statement for the Year Ended 31 March 2022

Restated 2020-21 Outturn	Programme	Variance Note	Gross Expenditure	Income Applied	Outturn	Budget	Variance
£m			£m	£m	£m	£m	£m
	Expenditure Limit
17,185	Health and Social Care	1	18,740	1,008	17,732	17,651	81
17,185	Total Expenditure Limit		18,740	1,008	17,732	17,651	81
	UK Funded Annually Managed Expenditure
62	Health	2	154		154	195	(41)
62	Total AME		154	-	154	195	(41)
	Other Expenditure
23	Health	3	44	4	40	51	(11)
23	Total Other Expenditure		44	4	40	51	(11)
17,270	Total Resources		18,938	1,012	17,926	17,897	29
516	Capital - Additions	4	538	-	538	492	46
(22)	Capital - Disposals	4	-	7	(7)	-	(7)
35	Capital (Other Expenditure) - Additions	5	5	-	5	9	(4)
529	Total Capital		543	7	536	501	35
17,799	Total Outturn		19,481	1,019	18,462	18,398	64

With effect from 2017-18, gross income and expenditure for the portfolio excludes income received from Integration Authorities on the basis that this presentation better reflects the funding relationship between Integration Authorities and NHS Boards. This adjustment has no impact on the portfolio's net outturn position. Income of £7,264m was received by Boards in 2021-22 (2020-21: £7,034m) for provision of healthcare services commissioned by Integration Authorities. NHS funding to Integration Authorities for 2021-22 totalled £7,751m (2020-21: £7,328m).

Explanation of Major Variances greater than £3m:

Note 1: £46 million of additional research expenditure, £32 million due to the difference in budgeting and accounting reporting requirements for Personal Protective Equipment (PPE) and £7m additional depreciation of COVID-19 equipment partially offset by £5 million in lower than anticipated Sport Scotland and Independent Living Fund working capital requirements and £1 million of apportioned Corporate Running Costs underspend.

Note 2: Lower than anticipated levels of NHS provisions and impairments.

Note 3: Lower than anticipated depreciation and impairments of NHS NPD/PPP/PFI schemes.

Note 4: £41 million of additional accelerated expenditure on the Baird & Anchor, Laboratory Information Management System and other projects partially offset by lower than anticipated advances of Sustainability Loans to GPs (£2 million).

Note 5: Lower than anticipated levels of donated assets and slippage in Hub programmes due to COVID-19.

Social Justice, Housing and Local Government
Portfolio Outturn Statement for the Year Ended 31 March 2022

Restated 2020-21	Programme	Variance Note	Gross Expenditure	Income Applied	Outturn	Budget	Variance
£m			£m	£m	£m	£m	£m
	Expenditure Limit
10,827	Local Government	1	9,683	-	9,683	9,517	166
638	Housing	2	629	11	618	732	(114)
73	Social Justice		20	-	20	21	(1)
108	Third Sector		38	-	38	37	1
100	Central Government Grants to Local Authorities		100	-	100	100	-
3	Connected Communities		5	1	4	5	(1)
216	Social Security		300	2	298	297	1
3,361	Social Security Assistance	3	3,484	-	3,484	3,506	(22)
32	Equalities		41	-	41	42	(1)
15,358	Total Expenditure Limit		14,300	14	14,286	14,257	29
	UK Funded Annually Managed Expenditure
1,868	Non-Domestic Rates		2,090	-	2,090	2,090	-
(912)	Small Business Grant Fund and Retail, Hospitality and Leisure Grant Fund		-	-	-		-
(16)	Housing	4	(195)	-	(195)	(107)	(88)
-	Third Sector		-	-	-	-	-
-	Social Security		(1)	-	(1)	5	(6)
940	Total AME		1,894	-	1,894	1,988	(94)
16,298	Total Resources		16,194	14	16,180	16,245	(65)
466	Capital - Additions/Advances	5	232	-	232	166	66
(80)	Capital - Disposals/Repayments	5	-	122	(122)	-	(122)
386	Total Capital		232	122	110	166	(56)
16,684	Total Outturn		16,426	136	16,290	16,411	(121)

Explanation of Major Variances greater than £3m:

Note 1: The revenue overspends includes £80m for Business Support & Low Income Households, £59m Employability, £6m Scottish Negotiating committee for Teachers and £15m Scottish Child Payment/Pandemic Payments. Funding was awarded after the Spring Budget Revision resulting in a misalignment in expenditure and budget allocation and subsequently the over-spend reported.

Note 2: Net slippage of £101m on the Affordable Homes programme. The programme was severely impacted by the ongoing impacts of COVID and associated lockdown periods. In addition, supply chain and workforce issues, which affected the whole construction sector, slowed down the rate of progress on sites, thereby reducing the funding able to be allocated.

Note 3: Benefit expenditure is demand led and cannot be controlled in the same way as other budgets where spending limits can be set. Further information on benefit spend can be found in the Social Security Scotland accounts for 2021-22 at Social Security publications.

Note 4: Relates to the year end loan adjustments where loans are discounted in year 1 (depending on the interest rate charged on loans), and the discount is unwound in subsequent years. A significant change in the interest rate compared to the prior year has resulted in a large unwinding of the discount in 2021-22.

Note 5: In 2021-22 Financial Transactions allocated to Housing were originally £73m (net of receipts). By their very nature, being demand led, Financial Transactions are difficult to predict. There have been reduced spend in the following programmes: £19m in shared equity schemes, delays in the Housing Infrastructure Fund of £11.5m, Build Scotland Fund reduced requirement of £3m and no requirement for the Tenant Hardship and Private Rented Sector Landlord loans at £3m. Receipts over the year have increased by £9m.

There is a £3m underspend on the budget of £17m capital expenditure at Social Security Scotland due to the impact of Covid-19 on the fit-out works in our buildings, and the delivery of IT hardware delay due to global supply issues.

Finance and Economy
Portfolio Outturn Statement for the Year Ended 31 March 2022

Restated 2020-21	Programme	Variance Note	Gross Expenditure	Income Applied	Outturn	Budget	Variance
£m			£m	£m	£m	£m	£m
	Expenditure Limit
20	Scottish Public Pensions Agency		22	-	22	24	(2)
110	Other Finance	1	111	3	108	113	(5)
103	Digital Strategy	2	146	6	140	167	(27)
6	Planning	3	13	-	13	7	6
87	Employability and Training	4	75	-	75	153	(78)
1,351	Enterprise, Trade and Investment	5	914	44	870	1,245	(375)
17	European Social Fund - 2014-20 Programmes		31	33	(2)	-	(2)
-	European Regional Development Fund		7	6	1	-	1
(5)	ESF and ERDF Closed Schemes		-	1	(1)	-	(1)
12	Economic Advice		13	-	13	14	(1)
29	Scottish National Investment Bank		12	-	12	12	-
1	Accountant in Bankruptcy		8	9	(1)	1	(2)
314	Cities Investment and Strategy	6	331	-	331	350	(19)
51	Ferguson Marine	7	61	-	61	2	59
104	Rural Economy Enterprise	8	111	-	111	119	(8)
136	Tourism	9	111	-	111	101	10
2,336	Total Expenditure Limit		1,966	102	1,864	2,308	(444)
	Annually Managed Expenditure (AME)
124	Enterprise, Trade and Investment		-	-	-	-	-
26	ESF 14-20 Programmes	10	14	-	14	-	14
-	Enterprise, Trade and Investment	11	(47)	-	(47)	-	(47)
-	Other Finance		4	-	4	-	4
(4)	Scottish National Investment Bank		1	-	1	-	1
146	Total AME		(28)	-	(28)	-	(28)
2,482	Total Resources		1,938	102	1,836	2,308	(472)
139	Capital - Additions/Advances	12	64	-	64	57	7
23	Capital - Advances Scottish National Investment Bank	13	147	-	147	200	(53)
23	Capital - Additions Ferguson Marine		54	-	54	51	3
(24)	Capital - Disposals/Repayments	12	-	21	(21)	-	(21)
161	Total Capital		265	21	244	308	(64)
2,643	Total Outturn		2,203	123	2,080	2,616	(536)

Explanation of Major Variances greater than £3m:

Note 1: Underspend includes £4m due to Covid campaign activity being scaled back as a result of the pandemic threat reducing.

Note 2: The R100 contract build is well underway with connections now live in all contract areas. An underspend of £29m is driven by supply chain issues, in part resulting from / linked to the COVID-19 pandemic and wider labour market conditions, that have presented challenges to broadband delivery – both commercial and SG-funded programmes.

Note 3: A review of spend against the Digital Transformation Planning multi-year project has resulted in a write off of £5m of prior years capital spend to revenue. The spend was a valid part of the overall project however the accounting treatment of was reviewed during 2021-22 which resulted in this change. For further details.

Note 4: Within Employability and Training are two main areas: Employability Services and Workforce Skills and Young Person's Guarantee, Employability and Skills:

£14m underspend within Employability Services is mainly driven by £10m underspend on the 'No One Left Behind' & Parental Employability Support Fund offset by additional expenditure reflected through Local Government for accelerated delivery of employability schemes.

£65m underspend within Young Person Guarantee, Employability & Skills is mainly driven by £45m underspend on Young Person's Guarantee Local Employability Partnerships funding to Local Government. There is £20m underspend on the 'No One Left Behind' Long Term Unemployed scheme due to lower than anticipated uptake.

Note 5: Total underspend of £184m in Covid-19 Business Support Grants that has been balanced by an overspend in other portfolios (including £80m in local government, £3m in Health and Social Care for sports funding, £11m in Net Zero food and drink funding, and £25 in Tourism, £14m of culture funding, £11m in Education - childcare and £3m to enterprise agencies for wedding sector funding.

Underspend of £78m on the demand-led Self-Isolation Support grant. Forecasts were updated throughout the year to reflect the latest position which reflected the state of the pandemic and COVID cases. Budget was revised at a point in time where case levels were higher, however, actual cases did not reach the levels expected.

The Business Ventilation Fund was introduced in response to recommendations from the Short-Life Working Group on ventilation, with a £25m value based on a broadly comparable scheme in the Republic of Ireland and a forecast that this would allow support to be provided to up to 10,000 businesses. Business demand for the Business Ventilation Fund has been less than this initial forecast which has resulted in a £21m underspend. A proportion of the underspend was repurposed to enable the college and university sector to purchase CO2 monitors in March 2022, following agreement by the Cabinet Secretary for Finance and the Economy (see note 1 on the Education and Skills portfolio outturn statement).

There was £37m of non-budgeted income received in respect of the European Regional Development Fund Covid Response Fund.

£56m underspend with Scottish Enterprise as they used additional non-budgeted income prior to drawing down SG Funding.

Within International Trade and Investment, Overspends of £8m on capital grants to Local Authorities for capital hubs, and £16m on Building Scotland Fund was offset by £26m underspend from fund managers.

Note 6: Underspend due to delays in signing off City Deals and recruitment delays, Underspend in Inverness due mainly to slippage in the Northern Innovation Hub project caused by ongoing Covid-19 restrictions.

Note 7: Overspend due to impairment of assets under construction following updated valuation of vessels 801 and 802.

Note 8: Mainly due to underspends emerging from Highland and Islands Enterprise (£2m) and South of Scotland Enterprise (£3m) after Spring Budget Revisions, resulting in a reduction in Grant in Aid requirements.

Note 9: Overspend mainly due to additional Covid-19 Business Support Grants Omicron funding (see note 4 above) paid out by Visit Scotland, offset by underspends on other Tourism projects.

Note 10: Additional spend in year in relation to a provision for future potential under-recovery of European Social Fund Income (£14m).

Note 11: The Government's potential exposure to the 25-year guarantee relating to the hydro plant and aluminium smelter at Lochaber and it's valuation under accounting standards has been reviewed in year. This has resulted in a decrease of £47m in the provision valuation - for more information see Note 14 Provisions.

Note 12: Revaluation of buildings in year by the District Valuer has resulted in a write off of £4m of infrastructure improvements. Although this expenditure was required within those buildings, they did not add to the overall value of the building in line with the District Valuers procedures. For more details on valuations see note 6c.

Note 13: The timing of investments at year-end did not result in the full budget being used by 31 March. £200m capital budget as per the 2021-22 Budget Bill for SNIB was incorrectly re-categorised as resource budget at the 2021-22 Spring Budget Revision. The outturn statement above includes this budget within capital, in line with original 2021-22 Budget Bill and the nature of the spend (loans provided by SNIB).

Education and Skills
Portfolio Outturn Statement for the Year Ended 31 March 2022

Restated 2020-21Outturn	Programme	Variance Note	Gross Expenditure	Income Applied	Outturn	Budget	Variance
£m			£m	£m	£m	£m	£m
	Expenditure Limit
366	Learning	1	306	2	304	325	(21)
166	Children and Families	2	180	17	163	186	(23)
28	Early Learning and Childcare Programme	3	15	-	15	8	7
828	Higher Education Student Support	4	64	3	61	746	(685)
2,143	Scottish Funding Council		1,976	-	1,976	1,978	(2)
15	Advanced Learning and Science		19	-	19	20	(1)
279	Skills and Training	5	278	-	278	271	7
737	Central Government Grants to Local Authorities		699	-	699	699	-
4,562	Total Expenditure Limit		3,537	22	3,515	4,233	(718)
	UK Funded Annually Managed Expenditure
1	Learning		-		-		-
(86)	Higher Education Student Support	6	(210)	75	(285)	(172)	(113)
(85)	Total AME		(210)	75	(285)	(172)	(113)
4,477	Total Resources		3,327	97	3,230	4,061	(831)
	Of which Operating Costs
10	Capital - Additions/Advances		12	-	12	13	(1)
701	Capital (AME) - Advances	7	691	-	691	513	178
(204)	Capital (AME) - Repayments	7	-	152	(152)	-	(152)
507	Total Capital		703	152	551	526	25
4,984	Total Outturn		4,030	249	3,781	4,587	(806)

Explanation of Major Variances greater than £3m:

Note 1: Administrative error led to £16m of budget for Teacher Training remaining here although spend and additional budget was provided to Local Government.

£4m overspend within Schools people and places due to additional Co2 monitors and ventilation costs, offset by underspend of £6m within Scottish Qualifications Authority due to higher income than expected and lower staff and operational costs.

Note 2: There was £10m underspend in relation to the Redress Statutory Scheme due to the operational throughput of applications being lower than anticipated – for more information see the Education and Skills portfolio section of the Performance report. Whole Family Wellbeing Fund underspend of £3m to cover corresponding overspend for this Fund in Local Government portfolio.

Disclosure Scotland £4.5m more income than budgeted for due to an unforeseen demand for our products during the Pandemic. They also amortised £1m less than we budgeted for due to delays in the completion of our digital programmes.

Note 3: Overspend is due to authorised spend of £8.1m on Childcare Sector Omicron Impacts Fund covered by the Economy Directorate.

Note 4: The apparent underspend in Higher Education Student Support is driven by the Cost of Providing Student Loans though the RAB and Stock Charges. A ring-fenced non-cash budget of £330m was provided, however due to the drivers in the Student Loan model (including set interest rates and discount rates) the outturn figure was a credit of £344 million (for more details see the accounting policies note and note 10f.) This is a ring-fenced budget and not available for use elsewhere in the Education portfolio.

Note 5: Due to delays in claims of European Social Funding in 2020-21, Skills Development Scotland (SDS) were provided with additional cashflow support to continue to pay training providers at the request of Scottish Ministers (£18m). This has been offset by underspends within SDS of £9m and £4m underspends on Education Maintenance Allowance (EMA) of £4m due to school leaver numbers and impact of lower final 20/21 EMA grant claims against estimated accruals.

Note 6: This non-cash variance is predominantly due to movement in the fair value calculation in relation to Student Loans - for more details see the accounting policies note and note 10f.

Note 7: The underspend on Student Support and Tuition fees payments is due to lower than anticipated student numbers along with lower than anticipated in-year utilisation of Discretionary Funding. Any unused Discretionary Funds can be spent by academic institutions until July 22, so unspent year-end balances are prepaid into the next financial year 2022-23. The increased value of this prepayment has reduced outturn for 2021-22.

Justice and Veterans
Portfolio Outturn Statement for the Year Ended 31 March 2022

Restated 2020-21Outturn	Programme	Variance Note	Gross Expenditure	Income Applied	Outturn	Budget	Variance
£m			£m	£m	£m	£m	£m
	Expenditure Limit
38	Community Justice Services	1	50	-	50	56	(6)
1	Judiciary		5	-	5	5	-
21	Criminal Injuries Compensation		16	-	16	16	-
113	Legal Aid	2	133	-	133	139	(6)
75	Police Central Government	3	75	2	73	86	(13)
11	Safer and Stronger Communities		19	7	12	13	(1)
459	Police and Fire Pensions	4	515	-	515	534	(19)
296	Scottish Prison Service	5	331	7	324	311	13
46	Miscellaneous	6	54	1	53	57	(4)
1,267	Scottish Police Authority	7	1,381	-	1,381	1,369	12
308	Scottish Fire and Rescue Service		311	-	311	315	(4)
85	Central Government Grants to Local Authorities		86	-	86	86	-
2,720	Total Expenditure Limit		2,976	17	2,959	2,987	(28)
	UK Funded Annually Managed Expenditure
1	Scottish Prison Service		(1)	-	(1)	-	(1)
1	Total AME		(1)	-	(1)	-	(1)
	Other Expenditure
78	Scottish Prison Service	7	71	-	71	76	(5)
4	Scottish Police Authority Loan Charges		4	-	4	4	-
82	Total Other Expenditure		75	-	75	80	(5)
2,803	Total Resources		3,050	17	3,033	3,067	(34)
41	Capital - Additions	8	51	-	51	56	(5)
41	Total Capital		51	-	51	56	(5)
2,844	Total Outturn		3,101	17	3,084	3,123	(39)

Explanation of Major Variances greater than £3m:

Note 1: £2m of the underspend is due to the drop in the volume of electronic monitoring orders as a result of Covid-19 and £3m due to Local Authorities being unable to use time limited Covid funding by the end of the year due to recruitment issues.

Note 2: The underspend was a result of the Legal Aid Fund budget being demand led and demand was less than anticipated. This was due to the impact of the coronavirus on the operation of the courts, and on the continuation of business generally which has resulted in a significant reduction in legal aid expenditure.

Note 3: This is mainly due to a lower than anticipated 2021-22 Scottish Government contribution to the UK Government led Airwave, Firelink and Emergency Services Communication Programme (ESMCP).

Note 4: The pension scheme is demand led in nature. The underspend in year is related to fewer eligible officers retiring than anticipated.

Note 5: The majority of the overspend for Scottish Prison Services is in relation to running costs (overspend of £8m), in particular in relation to maintenance costs.

Note 6: The overall variance on miscellaneous spend is due to multiple minor variances. The largest individual variance is within Victim and Witnesses support where an underspend of £1.3m relates to the impact of Covid on projects.

Note 7: Authorisation for additional expenditure by the SPA was provided after Spring Budget Revision due to the impact of Omicron Covid variant on spend and a need for additional working capital.

Note 8: Underspends due to slippage in the Women's Estate Project (National Facility and Community Custody Units) within Scottish Prison Service.

Net Zero, Energy and Transport
Portfolio Outturn Statement for the Year Ended 31 March 2022

Restated 2020-21Outturn	Programme	Variance Note	Gross Expenditure	Income Applied	Outturn	Budget	Variance
£m			£m	£m	£m	£m	£m
	Expenditure Limit
1,586	Rail Services	1	1,526	4	1,522	1,543	(21)
403	Concessionary Fares and Bus Services	2	385	5	380	396	(16)
251	Active Travel, Low Carbon and Other Transport	3	257	-	257	302	(45)
332	Motorways and Trunk Roads	4	511	2	509	422	87
257	Ferry Services	5	234	4	230	283	(53)
73	Air Services	6	90	1	89	117	(28)
44	Scottish Forestry	7	72	15	57	77	(20)
151	Energy	8	80	4	76	327	(251)
22	Forestry and Land Scotland		44	-	44	41	3
65	Research, Analysis and Other Services	9	77	-	77	89	(12)
131	Environmental Services	10	168	-	168	195	(27)
12	Land Reform	11	11	-	11	14	(3)
21	Climate Change and Land Managers Renewable Fund	12	16	-	16	23	(7)
(90)	Scottish Water		4	106	(102)	(100)	(2)
49	Central Government Grants to Local Authorities		55	-	55	58	(3)
3,307	Total Expenditure Limit		3,530	141	3,389	3,787	(398)
	UK Funded Annually Managed Expenditure
-	Scottish Forestry		-	-	-	-	-
-	Active Travel, Low Carbon and Other Transport		15	-	15	15	-
-	Transport Scotland		-	-	-	-	-
-	Total AME		15	-	15	15	-
	Other Expenditure
130	Motorways and Trunk Roads PPP/PFI		129		129	131	(2)
130	Total Other Expenditure		129	-	129	131	(2)
3,437	Total Resources		3,674	141	3,533	3,933	(400)
564	Capital - Additions/Advances	13	629	-	629	603	26
(111)	Capital - Disposals/Repayments	13	-	99	(99)	-	(99)
(14)	Capital (AME) - Capital Provision		-	2	(2)	-	(2)
439	Total Capital		629	101	528	603	(75)
3,876	Total Outturn		4,303	242	4,061	4,536	(475)

Explanation of Major Variances greater than £3m:

Note 1: Underspends mainly due to slippage in Network Rail Enhancement projects, in addition to Abellio Scotrail revenue recovering faster than originally forecast which reduced the anticipated EMA support requirements.

Note 2: Underspend mainly due to slower than anticipated uptake of the new Under 22 Free Bus Scheme. Initial uptake and usage of the new scheme, which commenced 31 January 2022, was affected by the prevalence of COVID-19 at that time and restrictions that were put in place.

Note 3: Work on the Glasgow Subway Modernisation project was delayed by COVID-19 leading to an underspend in year of £35m. The Bus Partnership Fund expenditure was £32m lower than anticipated due to the level of interest and profile of projects following bid assessments being significantly different than expected. These underspends were partially offset by additional support of £21m for Scottish Zero Emission Bus (ScotZEB) challenge fund being provided.

Note 4: Net increase in maintenance costs including £49m costs for emergency repairs for M8 Woodside Viaduct and A83 Rest and Be Thankful and £40m increased non-cash depreciation costs.

Note 5: Fuel savings against fuel plan and penalties on Northern Isles Ferry Services and Clyde and Hebrides Ferry Services (£18m); reduced spend in year on Uig harbour project (£15m); reduced spend in year on Ardrossan harbour project (£9m) and delay in Freight Fares Reviews (£11m).

Note 6: In-year expenditure on capital projects lower than expected (£22m), revenues at HIAL airports higher than expected (£5m).

Note 7: Additional EU co-financing income (£4m) was achieved during the year. There was also an underspend of £16m on planting due to the significant impact of Storm Arwen in late November 2021, and labour shortages.

Note 8: Within Energy are 2 main programmes – Energy Industries and Heat in Buildings. The initial budget allocation for both programmes was based on a very ambitious delivery programme. Demand for both programmes has been severely impacted by the pandemic. In addition, even where there has been demand those programmes have themselves been disrupted from a combination of Covid-19 and supply chain issues.

Energy Efficiency Scotland and Fuel Poverty capital grant schemes had significant underspends in year: Area Based Schemes £50m; Warmer Home Scotland £15m; Cashback Scheme £10m; Energy Efficiency: £6m (SME Loan Scheme - Cashback Element).

Significant underspends were also noted within the Heat in Buildings Large Scale Programmes: Low Carbon Infrastructure Transition Programme £40m, Social Housing Net Zero Heat Fund £20m, Public Sector Initiatives £20m and other programmes circa £40m. Projects funded under both the Low Carbon Infrastructure Transition Programme and the Social Housing Net Zero Heat Fund were delayed by the ongoing Covid-19 pandemic, including by outbreaks on worksites and workforce absences as well as curtailment of delivery to homes with vulnerable tenants. In addition, projects suffered delays due to supply chain issues that emerged in late 2021 and early 2022, due to a number of factors. Social landlords are also deferring investment at scale due to uncertainty around the Energy Efficiency Standard for Social Housing.

Note 9: The main reason for the underspend with Research Analysis is due to delay in the commencement of the Botanic Gardens Biomes project, leading to slippage of £10m spend.

Note 10: Savings were achieved with the Peatland capital grants scheme (£7m) and the Recycling Improvement Fund (£10m). There were also underspends from NDPBs. Nature Scot had a £4m underspend against their budget due to slippage on capital projects funded by Peatland Action, Biodiversity Challenge and visitor management funds alongside some agreed resource savings. Scottish Environmental Protection Agency had a £3m underspend due to underspends in projects (Tarbolton, Electronic Waste Tracker, Volcanic emissions and Hydrology Consultancy work) some agreed resource savings.

Note 11: Underspend at COP26 alongside delays to project spend and lower drawdown of funds than expected in demand led schemes.

Note 12: A budget increase of £10m on 2020-21 for the Sustainable Action Fund was not fully utilised with an underspend of £6m, however claims paid out remain comparable to last year.

Note 13: Transport Scotland reported a capital underspend in the year of £58m primarily as a result of the continuing delays in infrastructure projects last year caused by the impact of Covid-19 suppression measures and other international events which had a significant impact upon the supply chain for material and labour, especially across major infrastructure and roads maintenance programmes which have been re-profiled into future years. To partially offset some of the underspend position caused by these delays to infrastructure projects, Transport Scotland were able to accelerate the procurement of new vessels into the aging ferries fleet, by adding the MV Loch Frise and commissioning two 95 metre class vessels which, upon completion of their build, are intended for deployment on the Islay routes

Rural Affairs and Islands
Portfolio Outturn Statement for the Year Ended 31 March 2022

Restated 2020-21 Outturn	Programme	Variance Note	Gross Expenditure	Income Applied	Outturn	Budget	Variance
£m			£m	£m	£m	£m	£m
	Expenditure Limit
722	Agricultural Support and Related Services	1	788	85	703	743	(40)
51	Rural Services	2	51	-	51	46	5
22	Fisheries and Aquaculture Grants	3	19	5	14	21	(7)
74	Marine Scotland		97	8	89	89	-
-	Islands Plan		9	-	9	10	(1)
869	Total Expenditure Limit		964	98	866	909	(43)
	UK Funded Annually Managed Expenditure
1	Agricultural Support and Related Services		-	-	-	2	(2)
1	Marine Scotland		2	-	2	2	-
2	Total AME		2	-	2	4	(2)
	Other Expenditure
-	Animal License Fees		-	-	-		-
-	Total Other Expenditure		-	-	-	-	-
871	Total Resources		966	98	868	913	(45)
358	Capital - Additions/Advances	4	351	-	351	35	316
(513)	Capital - Disposals/Repayments	4	-	343	(343)	-	(343)
(155)	Total Capital		351	343	8	35	(27)
716	Total Outturn		1,317	441	876	948	(72)

Explanation of Major Variances greater than £3m:

Note 1: £18m underspend on the Agricultural Transformation Fund due to a smaller than expected uptake of pilot projects and less livestock data gathering. £5m underspend in Less Favoured Area Support Scheme due to lower uptake as the budget was set in line with previous years outturn, and £3m underspend in the same scheme due to a delay in the Suckler Beef pilot.

£4m underspend across a number of different schemes within Business development - key drivers included underspends of £3m in the Food Processing, Marketing and Cooperation Grant Scheme (FPMC). There were other minor variances across the programme.

Note 2: Overspend mainly reflects £6.5m for the Covid-19 Additional Relief Fund (CARF). Budget and underspend reflected within the Finance and Economy portfolio (note 4).

Note 3: Underspend of £8m under the European Maritime and Fisheries Fund and Marine Fund Scotland, due to a combination of Covid, EU Exit and the conflict in the Ukraine impacting on the supply chain.

Note 4: There was no spend against the Agricultural Transformation demand-led Fund in year (budget £20m). The farmers loan scheme final outturn was £7m lower than budget due to a higher recovery rate than anticipated for current and prior year advances. These underspends were offset by a £7m overspend on the Covid-19 Additional Relief Fund (CARF).

Deputy First Minister and Covid Recovery
Portfolio Outturn Statement for the Year Ended 31 March 2022

Restated 2020-21 Outturn	Programme	Variance Note	Gross Expenditure	Income Applied	Outturn	Budget	Variance
£m			£m	£m	£m	£m	£m
	Expenditure Limit
19	Government Business and Constitutional Affairs	1	58	-	58	67	(9)
10	Governance and Reform		5	-	5	5	-
29	Total Expenditure Limit		63	-	63	72	(9)
29	Total Resources		63	-	63	72	(9)
-	Capital		-	-	-	-	-
-	Total Capital		-	-	-	-	-
29	Total Outturn		63	-	63	72	(9)

Explanation of Major Variances greater than £3m:

Note 1: Underspend of £3m due to delays in recruitment and reduced central costs due to Covid, and reduced spend of £3m on administering Local Government and Scottish Parliament elections. There were other minor variances across the programme.

Constitution, External Affairs and Culture
Portfolio Outturn Statement for the Year Ended 31 March 2022

Restated 2020-21 Outturn	Programme	Variance Note	Gross Expenditure	Income Applied	Outturn	Budget	Variance
£m			£m	£m	£m	£m	£m
	Expenditure Limit
268	Culture and Major Events	1	249	1	248	242	6
22	External Affairs		32	1	31	29	2
79	Historic Environment Scotland		74	-	74	74	-
369	Total Expenditure Limit		355	2	353	345	8
	UK Funded Annually Managed Expenditure
1	Culture and Major Events	2	3	-	3	10	(7)
1	Total AME		3	-	3	10	(7)
370	Total Resources		358	2	356	355	1
4	Capital DEL - Additions / Advances		-	-	-		-
-	Capital DEL - Disposals/Repayments		-	1	(1)	(1)	-
4	Total Capital		-	1	(1)	(1)	-
374	Total Outturn		358	3	355	354	1

Explanation of Variances:

Note 1: Variance due to Covid funds being allocated for culture and events after the budget revision process had concluded.

Note 2: The final calculation on the Historic Silicosis Legal Provision was lower than estimated at the time of Spring Budget Revision - for further details see Provisions note 14.

The Crown Office and Procurator Fiscal Service
Portfolio Outturn Statement for the Year Ended 31 March 2022

Restated 2020-21 Outturn	Programme	Variance Note	Gross Expenditure	Income Applied	Outturn	Budget	Variance
£m			£m	£m	£m	£m	£m
	Expenditure Limit
	Staff Costs
100	The Crown Office and Procurator Fiscal Service	1	114	-	114	117	(3)
	Administration Expenditure
9	Accommodation		9	-	9	8	1
-	Travel/Transport		-	-	-	1	(1)
39	Legal		31	-	31	30	1
5	Supplies and Services		7	2	5	6	(1)
5	Capital Charges		6	-	6	6	-
2	Other Office Costs		3	-	3	3	-
160	Total Expenditure Limit		170	2	168	171	(3)
	UK Funded Annually Managed Expenditure
1	Impairment		1	-	1	1	-
2	Provisions	1	7	-	7	-	7
3	Total AME		8	-	8	1	7
163	Total Resources		178	2	176	172	4
9	Capital - Additions		9		9	8	1
9	Total Capital		9	-	9	8	1
172	Total Outturn		187	2	185	180	5

Explanation of Variances:

Note 1: Additional spend in year in relation to a provision to a specific litigation claim.