Source · Select Committees · Scottish Affairs Committee
Recommendation 12
12
Accepted in Part
Ensure early communication of UK budgetary changes and block grant impact assessments to Scotland
Recommendation
The importance of regular communication between the UK and Scottish Governments, in respect of UK spending decisions which could impact Scotland’s budget, cannot be overstated. The UK Government must ensure that the impact of UK budgetary changes on the block grant is assessed and considered while decisions are being made. The details of such impact assessments must be released alongside or very quickly following any spending decisions. While we recognise the need for due process, the Scottish Government should be informed of major changes which impact its funding as early as possible. (Recommendation, Paragraph 93) Flexibility
Government Response Summary
The government stated that regular engagement and early notification on funding changes already occur, but rejected the need for formal impact assessments due to the mechanical nature of the Barnett formula, though impacts are routinely considered.
Government Response
Accepted in Part
HM Government
Accepted in Part
There is regular engagement between the UK Government and Scottish Government around changes to UK Government department spending, forecasting of tax receipts and devolved benefit expenditure including in-year UK policy decisions that may affect Scottish Government funding. The Scottish Government is given notice of changes at the earliest possible opportunity, given the market sensitive nature of information about some policy changes. Given the mechanical nature of the Barnett formula no formal impact assessment is carried out, however impacts on devolved government funding from UK Government policy decisions are considered as a matter of routine, with potential devolved government funding changes resulting from UK Government policy decisions included in advice to Ministers. The intention to publish the block grant transparency report on an annual basis will mean that more up to date data on changes to devolved government block grant funding will be regularly set out.