Commons Sense

House of Commons · Ministers' Questions

Financial Settlement for Scotland

Wednesday 6 March 2024 · 6 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 3 Partly answered 2 Not answered 0

Key points

  • Patricia Gibson questioned the adequacy of the financial settlement for Scotland, including the block grant and capital budget.
  • The Secretary of State defended the financial support provided to Scotland, mentioning a record block grant and additional funding.
  • Douglas Ross criticized the Scottish Nationalists for cutting services and increasing income tax rates.

Topics (select to filter)

Questions & Answers

Q1 Patricia Gibson SNP
Scotland
Context

The MP inquired about an assessment of the adequacy of financial support provided to Scotland by the UK government.

Question

What recent assessment has been made of the adequacy of the financial settlement for Scotland? This includes the block grant and capital budget, which are critical to Scotland's economy and infrastructure development.

Answer from Alister Jack

Contrary to what we hear from the Scottish National party, the Scottish Government are well-funded. This UK Government have provided a record block grant, averaging £41 billion a year, with an additional £2.4 billion across the last three fiscal events. Scotland also continues to benefit from the Barnett formula, under which the Scottish Government receive around 25% more funding per person than equivalent spending across the United Kingdom.

Answered
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Q2 Patricia Gibson SNP
Economy Scotland
Context

The MP inquired about the impact of recent budget cuts, specifically £1,600 million reduction over three years, on various sectors including roads, hospitals, schools and digital connectivity.

Question

Will the Secretary of State explain how his Government's £1,600 million cut to Scotland's capital budget over the next three years will impact infrastructure projects such as roads, hospitals, schools, housing, digital connectivity, and economic growth?

Answer from Alister Jack

It is nice to see that the hon. Lady and her colleagues have turned up for work today, even if that is in defiance of the deputy Leader of the SNP, who thought they should not bother coming. Let me be clear on resource spending and the capital budget: the Scottish Government are able to divert their resource spending for capital infrastructure investments; and they can also borrow to enhance capital investments if they so choose.

Partly answered

Not addressed: Specific impact of £1,600 million cut was not addressed

How: Working With Partners

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Q3 Douglas Ross Con
Scotland
Context

The MP questioned the SNP and Green coalition government's decision to increase income tax rates while cutting services, suggesting it has wrong priorities for Scotland.

Question

Does my right hon. Friend agree that the nationalists have got the wrong priorities for Scotland by cutting services while increasing income tax rates for anyone earning more than £28,867?

Answer from Alister Jack

I agree with my hon. Friend, and I add further that the Scottish Government's six tax bands, as opposed to the UK Government's three tax bands, are really holding Scotland back.

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Q4 Michael Shanks Lab Rutherglen
Ukraine Economy Energy
Context

The MP criticized both the SNP and Tory parties for opposing a windfall tax on oil and gas companies while increasing taxes on working people.

Question

Who does the Secretary of State support—the Scottish Tory leader who is standing up in Holyrood today attacking an extension of the windfall tax, or the Chancellor who we understand is about to announce exactly that?

Answer from Alister Jack

My position has always been clear: I believe that the energy profits levy on the excess profits caused by Putin's illegal war in Ukraine was the right thing for the Government to do, to give support to people in the cost of living crisis.

Answered
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Q5 Gavin Newlands SNP
Economy Scotland
Context

The MP criticized the Secretary of State for cutting Scottish Government's funding despite inflationary pressures, questioning his legacy.

Question

Is he proud of his legacy given that on his watch many Scots are struggling with high living costs due to rapid inflation and further cuts to Scottish Government funding?

Answer from Alister Jack

That is an easy one to answer, Mr Speaker, as I am very proud of my legacy. Rather like winning four Calcutta cups, I have won in court with the Scottish Government four times, and there are any number of things I would like to list for my legacy. Importantly, the Scottish Government receive a record block of £41 billion, and record Barnett consequentials on top of that.

Partly answered

Not addressed: Specific issues impacting Scots' living costs were not addressed

How: Working With Partners

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Q6 Gavin Newlands SNP
Economy Scotland
Context

The MP criticised the Secretary of State for cutting capital funding to Scottish Parliament and claimed that it drives public services to the edge.

Question

Does he accept that it is his Government's “bust or bust” austerity that is driving public services to the edge, given cuts in capital funding?

Answer from Alister Jack

This is nonsense. Austerity is not a thing under this Government—not a thing at all. [Laughter.] No, absolutely not. Departmental spending—this is the point that the SNP does not acknowledge—throughout this Parliament has grown by 3.2% on average.

Not addressed: Austerity as an issue was dismissed entirely without addressing its impact

How: Attack

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