Commons Sense

House of Commons · Ministers' Questions

Public Spending: Budget 2021

Wednesday 10 March 2021 · 7 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 6 Not answered 0

Key points

  • The Budget confirmed an additional 1.2 billion for the Scottish Government in the next financial year through the Barnett formula.
  • The Government published an interim report on the Union connectivity review, emphasizing the need for better connectivity across transport modes.
  • Prospectuses for community renewal and levelling-up funds were published alongside the Budget, focusing on real devolution and local community schemes.

Topics (select to filter)

Questions & Answers

Q1 Kirsten Oswald SNP
Economy Scotland
Context

The question stems from concerns about the impact of the Budget 2021 on public spending in Scotland, particularly in relation to financial allocations.

Question

What assessment has been made of the effect of Budget 2021 on public spending in Scotland?

Answer from Iain Stewart

The Budget confirmed an additional £1.2 billion for the Scottish Government in the next financial year, with a total of £3.6 billion over two years through the Barnett formula.

Answered
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Q2 Kenny MacAskill
Transport Scotland Science & Technology
Context

East Lothian has lower broadband download speeds and gigabyte capacity compared to many parts of the UK. The question is prompted by concerns about connectivity for both transport infrastructure and digital services.

Question

The A1, east coast main line and national grid run through East Lothian, but with poorer broadband speeds than many areas in the worst 10% of the UK. Is this a Brexit bonus or the price of the Union? What is being done to ensure adequate spending for improved connectivity?

Answer from Iain Stewart

The Government published an interim report on the Union connectivity review, emphasizing better connectivity needs across transport modes. The importance of good digital connectivity has been underlined by the recent pandemic, with substantial investments in improving broadband speeds across the UK.

Partly answered

Not addressed: Reasons behind lower broadband capacity and specific measures for East Lothian were not addressed directly

How: Emphasis On Connectivity Needs, Mention Of Substantial Investments Without Specifics

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Q3 Kirsten Oswald SNP
Economy Scotland
Context

There is a discrepancy between the pay rise for public sector workers in Scotland and a real-terms cut for those in the UK. This prompts questions about justice, recognition of hard work, and fiscal impacts.

Question

Scotland provides a pay raise for public sector workers while the UK Government institutes a real-terms cut. Does the decision harm Scottish government's ability to pay adequately? What appreciation does the Minister have?

Answer from Iain Stewart

The Government will be as generous with public sector pay as possible, while also managing public finances. The Chancellor announced that if international financial markets become concerned about UK's fiscal state, it could worsen the financial situation. Scottish government has powers to increase public sector pay.

Partly answered

Not addressed: Specific impact on Scotland's budgeting abilities and recognition of efforts were not directly addressed

How: Mention Of Managing Finances, Acknowledgment Of Scottish Powers

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Q4 Mhairi Black SNP
Economy Parliamentary Procedure Local Government
Context

The United Kingdom Internal Market Act allows for financial assistance but lacks detail. There are concerns about how this will work in practice and qualifying conditions.

Question

UK Internal Market Act grants ability to provide financial assistance, particularly from the shared prosperity fund. What details can be provided on how it works?

Answer from Iain Stewart

Prospectuses for community renewal and levelling-up funds were published alongside the Budget last week, emphasizing real devolution with local communities coming forward with schemes to help bounce back from the pandemic and secure future growth.

Partly answered

Not addressed: Specific details on conditions or operational processes not provided

How: Mention Of Community-Led Initiatives

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Q5 Mhairi Black SNP
Scotland
Context

There is a need to address concerns raised by stakeholders regarding financial assistance and the lack of detail on how provisions will work.

Question

A Scotland Office Minister mentioned engagement opportunities with stakeholders. Can you outline these opportunities?

Answer from Iain Stewart

Work will build on existing strong relationships, such as city region and growth deal programmes. The Minister will speak at the Glasgow area policy conference shortly after this session.

Partly answered

Not addressed: Specific engagement opportunities not detailed

How: Mention Of Ongoing Relationship Building

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Q6 Chris Elmore Lab Bridgend
Scotland Benefits & Welfare
Context

Citizens Advice Scotland has highlighted the impact of removing universal credit uplift, which will leave many families unable to meet living costs. Concerns about Chancellor's delay and uncertainty.

Question

With Citizens Advice Scotland reporting nearly 60% of complex debt clients unable to meet living costs due to universal credit cut, what steps are being taken to ensure the least well-off in Scotland are not impacted?

Answer from Iain Stewart

The extension of universal credit and other support schemes until September has been prudent. The system has worked well during the pandemic, with civil servants administering it effectively under unprecedented demand.

Partly answered

Not addressed: Specific steps to mitigate impact not detailed

How: Mention Of Prudence In Extension, Acknowledgment Of Effective Administration

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Q7 John Nicolson SNP
Scotland Business & Trade Local Government
Context

The UK government is extending a business rates holiday for three months in England, while Scotland extends it for the whole year. The Scottish Government aims to go further.

Question

While the UK Government are extending rates relief for only three months in England, the Scottish Government are doing so for the whole year, helping the retail, hospitality, leisure and aviation sectors. The Scottish Government want to go further still, so will the Minister support Scottish businesses by calling for the full devolution of financial powers to Scotland?

Answer from Iain Stewart

It is not correct to say that the business rates holiday is only being extended for three months; a period beyond that is specially targeted at businesses in the tourism, hospitality and entertainment sector. In addition, for England substantial restart grants are available, the money for which is Barnettised to the Scottish Government, who are able to spend that as they see fit.

Partly answered

Not addressed: The Minister did not directly address the specific ask of supporting full devolution of financial powers to Scotland

How: It Is Not Correct To Say

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