Source · Select Committees · Scottish Affairs Committee
Recommendation 14
14
Deferred
Removing Scotland Reserve cap would enable more strategic Scottish Government financial planning
Recommendation
We note also that the jeopardy for returning funds to the UK Treasury at the end of the financial year incentivises poor behaviour in departmental spending, relative to value for money to the taxpayer. The removal of the Reserve, which is simply a treasury rule, would allow the Scottish Government to plan more strategically both within and across financial years. A political decision could remove the Scotland Reserve in advance of the next Fiscal Framework event in 2027 to the immediate benefit of the Scottish Government’s budget setting. (Conclusion, Paragraph 100)
Government response summary AI-generated
The government explained the current Scotland Reserve limits were agreed with the Scottish Government and deferred any changes, including potential removal, to the next Fiscal Framework review 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 ↗