Source · Select Committees · Scottish Affairs Committee
Recommendation 13
13
Acknowledged
Capped Scotland Reserve limits fiscal flexibility, risking surrender of Scottish Government funds
Conclusion
Given the challenges the Scottish Government faces, we recognise its need for fiscal flexibility. The Scotland Reserve is a key tool that enables the Scottish Government to carry funds from one year to another, and there seems little benefit in capping the amount of money that can be stored in it. 45 The danger of the Scottish Government having to surrender funds, due to a late addition which pushes the Reserve over the limit, whilst hypothetical, remains of concern to us. (Conclusion, Paragraph 99)
Government response summary AI-generated
The government explained the Scotland Reserve limit was mutually agreed and is uprated annually, with consideration of any changes deferred to the next Fiscal Framework review expected in 2028.
Government Response
The government responded to this report on 17 October 2025. No passage in that response could be matched to this conclusion. Read the response document ↗