Thank you, convener, and good morning.
The spring budget revision provides the final opportunity to formally amend the 2017-18 Scottish budget. In this year’s spring budget revision, there are four different types of amendments. First, there are a few funding changes. Secondly, there are a number of technical adjustments that have no impact on spending power. Thirdly, there are some Whitehall transfers. Finally, there are some budget-neutral transfers of resources between portfolio budgets, including a modest budget redirection to ensure that we maximise our available budget. The net impact of all these changes is an increase in the approved budget of £421.4 million.
Table 1.1 on page 5 of the supporting document shows the approved budgets following the autumn budget revision and the changes sought in the spring budget revision. The supporting document to the spring budget revision, and the brief guide prepared by my officials, provide the background on the net changes.
The first set of changes, which increases the budget by £141.7 million, has been allocated over a number of lines as detailed in the brief guide.
The second set of changes comprises a number of technical adjustments that are mainly non-cash and therefore budget neutral and which have a net positive impact of £271.9 million on the overall aggregate position. It is necessary to reflect those adjustments to ensure that the budget is consistent with the accounting requirements and the final outturn that will be reported in our annual accounts.
Thirdly, with regard to Whitehall transfers and allocations from Her Majesty’s Treasury, there is a net positive impact on the budget of £7.8 million from a number of small transfers.
The final part of the budget revision concerns the transfer of funds, within and between portfolios, to better align the budgets with profiled spend. The main transfers between portfolios are noted in the spring budget revision supporting document and the guide to the SBR.
As we approach financial year end we will, in line with normal practice, continue to monitor forecast outturn against budget and, whenever possible, seek to utilise any emerging underspends to ensure that we make optimum use of the resources available in 2017-18 and manage the necessary carry-forward to meet the additional spending commitments for 2018-19, as I disclosed at stage 1 of the Budget (Scotland) Bill for 2018-19. An additional £34.5 million of funding for local government, which was announced at stage 1, does not appear in the spring budget revision because of timing issues, but it appeared in the local government finance order and will appear in the outturn statement.
In line with the budget process review group’s recommendations, my officials have included in the brief guide sent to the committee an indication of the forecast outturn position at 31 December for the spring budget revision. That brief guide to the spring budget revision, which my officials have prepared, sets out the background to and details of the main changes proposed, and I hope that colleagues have found it helpful.