It goes on to say that "the cost of delivering public services and of building public infrastructure is increasing … with inflation, [and] this situation demands a range of responses, including a re-energised drive for innovation and efficiency".viiInvesting in Scotland’s Future: Resource Spending Review, Scottish Government
Since these documents were published in May 2022, inflation (Consumer Price Index) has risen to 10.1% in the 12 months to September 2022 and the Bank of England has indicated that inflation could peak at more than 13% this year.Rising inflation expectations pressure Bank of England | Reuters Its Monetary Policy Committee increased interest rates on 22 September by 0.5% to 2.25%, the highest level since November 2008.Bank Rate increased to 2.25% - September 2022 | Bank of England Ofgem (the energy regulator) announced in August that the energy price cap would increase to £3,549 per year for an average household, from 1 October 2022.Ofgem confirms energy price cap will rise to £3,549 from October | The Independent Pressures from inflation and a cost of living crisis has prompted public sector pay increases costing £700m more than Ministers had originally budgeted for.Official Report, Scottish Parliament, 6 September 2022 The First Minister, in a statement to Parliament on 6 September, noted, as a result, that the current year's budget is worth £1.7bn less than when it was published in December 2021.Official Report, Scottish Parliament, 6 September 2022
In recognition that the Covid-19 pandemic continues to affect many parts of society, the Scottish Government's Covid Recovery Strategy: for a Fairer Future Scotland, published on 5 October 2021, aims to work with local government, business, community and voluntary organisations to “address the systematic inequalities made worse by Covid, make progress towards a wellbeing economy, and accelerate inclusive person-centred public services”.