1. At its meeting on 18 February 2020, the Delegated Powers and Law Reform Committee considered the sole delegated power in the Budget (Scotland) (No.4) Bill at Stage 1 ("the Bill").ⁱBudget (Scotland) (No.4) Bill, as introduced. The Committee reports to the Parliament on the provision under Rule 9.16.3 of Standing Orders.

2. This Bill was introduced by the First Minister, Nicola Sturgeon MSP, on 6 February 2020. It makes provision for the financial year 2020-2021. In particular, it authorises the use of resources by the Scottish Ministers and bodies whose expenditure is funded directly out of the Scottish Consolidated Fund (“SCF”). Those bodies are the Scottish Parliamentary Corporate Body and Audit Scotland.

3. The Bill confers one power to make subordinate legislation upon the Scottish Ministers. The Scottish Government has produced a Delegated Powers Memorandum (“DPM”).Budget (Scotland) (No.4) Bill, Delegated Powers Memorandum It sets out the reasoning for taking the delegated power and for the procedure chosen.

Section 7 – Budget revision regulations

Power conferred on: Scottish Ministers

Power exercisable by: regulations

Parliamentary procedure: affirmative

Provision

4. Section 7(1) of the Bill provides that the Scottish Ministers may by regulations amend the amounts specified in section 4(2) and 4(3) and schedules 1 to 3. Section 7(2) provides that this power is subject to the affirmative procedure.

5. Sections 4(2) and 4(3) of the Bill specify the overall cash amounts which can be drawn from the SCF by the Scottish Administration and each of the direct-funded bodies respectively. Schedules 1 and 2 of the Bill specify the authorised purposes and the amount of resources which can be used by, respectively, the Scottish Administration and the direct-funded bodies for those purposes. Schedule 3 provides the amounts of borrowing available to certain specified statutory bodies under the enactments listed in that schedule.

Committee Consideration

6. The Scottish Government states in its DPM that the power in section 7 of the Bill is necessary to permit the Scottish Ministers to amend the Bill to take account of inevitable changes to the Government’s spending plans during the financial year to which the Bill applies. The Scottish Government considers that there is a need for a mechanism to allow Ministers to seek authorisation for such changes. It is further explained that since devolution, the use of subordinate legislation to make refinements to the Government’s spending plans has become a regular part of the budget process. It states that each of the annual Budget Acts has been subject to at least one revision by way of secondary legislation.