Scottish Government: Public Finance

(asked on 16th December 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential impact of the £1 billion shortfall identified by the Scottish Fiscal Commission in the Scottish Government public finances in the financial year 2026-27.


Answered by
Simon Clarke Portrait
Simon Clarke
This question was answered on 5th January 2022

The Scottish Government now has substantial tax and welfare powers and is responsible for its own policy choices in these areas.

For example, if the Scottish Government chooses to spend an additional £512 million on new welfare benefits then this means £512 million less spending on other areas or £512 million of additional revenue raising. These types of choices are a direct consequence of devolving tax and welfare powers.

The UK Government continues to operate the Fiscal Framework, including the block grant adjustments for tax and welfare devolution, as agreed with the Scottish Government.

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