Commons Sense

House of Commons · Ministers' Questions

Block Grant Funding

Tuesday 19 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 1 Partly answered 3 Not answered 0

Key points

  • Scottish Government receiving around 295 million in additional funding in 2024-25 through the Barnett formula.
  • Scottish Government's total departmental expenditure limit is growing in real terms over the Parliament by over 1% a year on average.
  • Scottish Government can borrow up to 400 million of capital each year.

Topics (select to filter)

Questions & Answers

Q1 Alan Brown SNP
Scotland
Context

Assessment requested of Spring Budget's effect on levels of block grant funding for Scotland, following concerns raised about public services and economic impacts.

Question

What assessment has been made of the potential impact of the Spring Budget 2024 on levels of block grant funding for Scotland? Concerns have been raised about public services and economic impacts.

Answer from Laura Trott

As a result of decisions at the spring Budget, the Scottish Government are receiving around £295 million in additional funding in 2024-25 through the Barnett formula.

Answered
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Q2 Martyn Day SNP
Scotland
Context

According to the Commons Library, the Scottish Government has experienced a significant cut in capital funding. The IFS forecasts additional cuts by 2029.

Question

The Government have cut the Scottish Government's capital funding by 16% in real terms from 2022-23 to 2024-25, with further cuts forecasted by the IFS. Can the Minister explain why the Chancellor is impacting public services negatively?

Answer from Laura Trott

The hon. Gentleman is aware that the block grant has been going up in real terms. The Scottish Government can switch resource to capital—unlimited amounts, if they choose to do so. They can borrow up to £400 million of capital each year.

Partly answered

Not addressed: Reason for cuts not addressed

How: Switch Resource To Capital, Borrowing Capabilities

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Q3 Deidre Brock SNP
Economy Scotland Local Government
Context

The UK Government is accused of imposing hard cuts to public services, leading to real-terms reductions in the Scottish block grant since 2020.

Question

The Tories have failed to invest in high-growth industries and public services, dragging Scotland into recession. The UK Government continues to cut public funding despite previous denials of real terms reduction.

Answer from Laura Trott

The Scottish Government's total departmental expenditure limit is growing in real terms over this Parliament by over 1% a year on average.

Partly answered

Not addressed: 'real terms' understanding and impact not addressed directly

How: Growing De Limit

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Q4 Alan Brown SNP
Scotland
Context

Analysis by the Institution of Civil Engineers shows a multiplier effect from construction spending, suggesting significant economic impact from reduced infrastructure spend in Scotland.

Question

The Minister does not understand what 'real terms' means. The analysis shows that real-terms cut to the block grant for capital by £1.6 billion over two years further deprives our economy of a wider £3 billion. Why are these cuts being made?

Answer from Laura Trott

The Scottish Government are well funded to deliver their devolved responsibilities, receiving 25% more funding on average per person than the equivalent UK Government spending in other parts. This translates to £8.5 billion more a year on average.

Not addressed: Economic impact not addressed directly

How: Funding For Devolved Responsibilities

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Q5 Drew Hendry SNP
Economy Scotland
Context

The Chancellor's Budget announcements include £20 billion in cuts, leading to significant reductions in some Departments and concerns over fiscal sustainability.

Question

The Chancellor has announced £20 billion in cuts for the public sector. This defies logic as the public sector cries out for funding. The IFS, Institute for Government, and Resolution Foundation have all expressed doubt about these plans. Does the Minister agree with them?

Answer from Laura Trott

Over the next Parliament, our plans are for spending to go up in real terms—I want to be absolutely clear about that. Spending has gone up in real terms over this Parliament too. Scotland is getting £295 million extra this year through Barnett consequentials.

Partly answered

Not addressed: Agreement with IFS, IoG, and RF not addressed directly

How: Spending Up In Real Terms

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Q6 Drew Hendry SNP
Scotland
Context

The Scottish block grant is set to fall to its lowest ever level under devolution, with capital funding falling by 16% over the next two years. The Chancellor has confirmed that the energy sector is a major loser.

Question

There is a 'conspiracy of silence' from both the Government and Labour about these cuts. For Scotland, capital funding is set to fall by 16%. Why are this Government and this Chancellor trying to be the new hammer of Scots?

Answer from Laura Trott

The only area in which I agree with the hon. Gentleman is that I would love to know what the Labour party's spending plans are for the next Parliament. The Scottish Government have unlimited ability to switch from resource spending to capital spending.

Not addressed: Impact on Scottish economy not addressed directly

How: Labour'S Spending Plans, Switching Capabilities

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