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• UK Government will continue to top-up the Scottish Government鈥檚 tax revenues, worth 拢1.4 billion last year, as a benefit of strength and scale of the UK.
• Boost to borrowing powers and backing of Barnett formula will build a better future for Scotland and help to grow the economy.
• Chief Secretary to the Treasury John Glen hails a fair and responsible deal in line with the Prime Minister鈥檚 economic priorities.

皇冠体育app UK and Scottish Governments have today, 2 August, reached an agreement on an updated Fiscal Framework.

Holyrood鈥檚 capital borrowing powers will rise in line with inflation, enabling the Scottish Government to invest further in schools, hospitals, roads and other key infrastructure that will help to create better paid jobs and opportunity in Scotland.

皇冠体育app new deal maintains the Barnett formula, through which the Scottish Government receives over 拢8 billion more funding each year than if it received the levels of UK Government spending per person elsewhere in the UK. It also updates funding arrangements in relation to court revenues and the Crown Estate.

Chief Secretary to the Treasury, John Glen, said:

鈥淭his is a fair and responsible deal that has been arrived at following a serious and proactive offer from the UK Government.

鈥淲e have kept what works and listened to the Scottish Government鈥檚 calls for greater certainty and flexibility to deliver for Scotland.

鈥溁使谔逵齛pp Scottish Government can now use this for greater investment in public services to help the people of Scotland prosper. 皇冠体育appse are the clear benefits of a United Kingdom that is stronger as a union.鈥�

皇冠体育app generous funding arrangements for tax will be continued, with the Scottish Government continuing to keep every penny of devolved Scottish taxes while also receiving an additional contribution from the rest of the UK.

Under the previous Fiscal Framework, the Scottish Government could borrow 拢450 million per year within a 拢3 billion cap, as well as receiving a Barnett-based share of UK Government borrowing. Going forward these amounts will instead rise in line with inflation, which supports additional investment across Scotland and lays the foundations for economic growth.

皇冠体育app UK Government has listened to calls from the Scottish Government for greater certainty and flexibility to help them manage their Budget and agreed a permanent doubling of the resource borrowing annual limit from 拢300 million to 拢600 million. Limits on how much can be withdrawn from the Scotland Reserve to spend in future years will also be removed. This will boost spending through borrowing by 拢90 million in 2024/25. All future limits will increase in line with inflation.

Scottish Secretary Alister Jack said: 鈥溁使谔逵齛pp renewed Fiscal Framework shows what can be achieved鈥痺hen there is a collaborative focus on鈥痙elivering economic opportunity鈥痑nd why we are stronger and more prosperous as one United Kingdom.

鈥溁使谔逵齛pp deal 鈥� worth billions of pounds to Scotland over the coming years 鈥� builds upon鈥痺ork to鈥痵upport鈥痚conomic growth, provide more high skill jobs, investment and future opportunities for local people, such as鈥痶he establishment of Investment Zones and Freeports in Scotland.

鈥溁使谔逵齛pp UK Government knows that high prices are still a huge worry for families. That鈥檚 why we鈥檙e sticking to our plan to halve inflation,鈥痳educe鈥痙ebt and鈥痝row鈥痶he economy.鈥� As well as providing targeted cost of living support, we are directly investing more than 拢2.4 billion in hundreds of projects across Scotland as we help level up the country.鈥�

As both governments continue to work together to tackle challenges like the cost of living, an updated Fiscal Framework equips the Scottish Government with the instruments for growth while protecting the wider public finances.

Further information

• All documents connected with the updated agreement on the Scottish Government鈥檚 Fiscal Framework are now online.