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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Session 6: 13 May 2021 to 8 April 2026
  7. Current session: 14 May 2026 to 8 November 2026
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Displaying 214 contributions

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Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 2 September 2026

Alan Brown

The way in which councils were allowed to accumulate debt meant that, in accounting terms, according to the UK Government, the councils were not considered to be spending the money in areas that triggered the Barnett formula. I know that it seems niche, but it seems like that money had already physically been spent, but Barnett consequentials are only coming through now.

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 2 September 2026

Alan Brown

The reconciliation obviously affects future budgets, which is where we are at the moment with the £700 million.

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 2 September 2026

Alan Brown

Am I correct in thinking that the Scottish Government cannot build up the reserve too much in any one year? It cannot put away a lot of extra money to minimise the risk of underpredictions in the future, because there is a limit to what it can put away and the rest would go to the Treasury. Is that correct?

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 2 September 2026

Alan Brown

Politicians talk about a £5 billion spending gap to be plugged. I thought that that involved something like £2 billion in capital.

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 2 September 2026

Alan Brown

The Scottish Government might have only a few months to deal with that if it is in-year spend.

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 2 September 2026

Alan Brown

I am still trying to get my head around it. So, if the UK Government writes off the debt, that triggers Barnett, but the money had already been spent, and it did not trigger Barnett. There is still an accounting mechanism that stops Barnett consequentials coming through.

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 2 September 2026

Alan Brown

The thing is that the UK Government guaranteed that debt. Councils were allowed to spend the money because it was underwritten by a UK Government guarantee. The limits kept increasing year on year, until this year, when the UK Government made a fiscal decision to end the practice and said it will write off the debt, which triggers a spend. Are other debt management mechanisms available that could potentially allow the UK Government to skip Barnett?

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 2 September 2026

Alan Brown

On that £50 billion figure in the headline, it is a theoretical £50 billion because of the responsibility of the Scottish Government to make up, say, 40 per cent of that, and risk and liabilities come with that. It is not a physical block grant of £50 billion; it is an allowance to spend £50 billion with baked-in reconciliations.

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 2 September 2026

Alan Brown

On that point, Professor Roy, you said that the current reconciliation gap of £700-odd million is higher than what the Scottish Government can use from the fiscal reserve. Therefore, in effect, that bakes in an additional cut, because the Government cannot do the in-year balancing. Does that mean that the fiscal reserve policy should be reviewed to allow a greater reconciliation process?

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 2 September 2026

Alan Brown

We have already discussed the fact that the Scottish Government is planning to make efficiencies to balance the capital and revenue budgets. There is also a projection for efficiencies of something like £8 billion in the final year of the UK Parliament. What sort of risks does that bake in for the Scottish Government? You have said that there is no multi-year funding settlement and that the Scottish Government does not know what it will get in the future. If the UK Government makes big cuts to offset its predicted shortfall and to keep within its spending rules, does that create a further possible cliff edge?