Scottish Government Debate: Fiscal Framework Review

That the Parliament recognises the limited improvements to the Scottish Fiscal Framework, following a joint review with the UK Government; welcomes the outcome of the review, which provides an increase in the Scottish Government’s borrowing and reserve capacity, and also confirms the Indexed Per Capita methodology as the permanent basis for calculating Block Grant Adjustments for devolved tax and security spend; notes that, while the limited progress is welcome, the Framework cannot protect Scotland from the UK Government’s austerity-driven budget decisions; understands that the Autumn Statement saw real-terms cuts to frontline spending in NHS England and on justice, and that these cuts have impacts on the finances that are consequently available to Scotland; calls for the UK Government spending plans for 2024-25 to be urgently revisited to invest in services and provide the funding necessary to meet the costs of public sector pay deals, not least in the NHS, and believes that the Scottish Parliament should have all the fiscal levers to prevent Scotland being subject to the austerity policies that harm efforts to reduce poverty, develop a growing wellbeing economy, tackle climate change and invest in public services. Liz Smith S6M-11546.4 As an amendment to motion S5M-11546 in the name of Shona Robison (Fiscal Framework Review), leave out from "notes" to end and insert "further welcomes the co-operation between the Scottish and UK governments in signing the 2023 fiscal framework agreement to deliver the best outcomes for the Scottish economy, and welcomes the extensive financial benefits that accrue to Scotland on an annual basis in terms of the fiscal transfers provided by the Barnett formula." Michael Marra S6M-11546.3 As an amendment to motion S6M-11546 in the name of Shona Robison (Fiscal Framework Review), leave out from ", while" to end and insert "the deal was agreed to by both governments as part of the devolution settlement that has evolved significantly since 1998; regrets the lack of public scrutiny afforded by a rushed final agreement that saw the simultaneous publication of the Independent Report along with the political agreement, thereby preventing full parliamentary discussion and the input of expert bodies; believes that Scotland has been held back by the Scottish National Party administration and the UK Conservative administration, which have built a low-growth, low-wage economy and, as a result, the UK Autumn Statement was delivered in the context of a stagnating economy and the highest overall tax burden since the Second World War; notes the Scottish Fiscal Commission’s modelling of a £1.9 billion revenue gap by 2027-28 between the Scottish Government’s committed spending and projected available revenues; further notes that this analysis was undertaken prior to the First Minister’s further sizeable spending commitments made at the Scottish National Party conference in October 2023, and calls on both of Scotland’s governments to prioritise economic growth, to put wages into the pockets of hard-pressed people in Scotland, and to generate the taxes to pay for vital public services, which are currently undermined by the financial and economic incompetence of ministers in Edinburgh and London." Alex Cole-Hamilton S6M-11546.2 As an amendment to motion S6M-11546 in the name of Shona Robison (Fiscal Framework Review), leave out from first "limited" to end and insert "improvements to the Scottish Fiscal Framework, following a joint review with the UK Government, and welcomes the outcome, which will protect and enhance devolved powers, providing more flexibility and choice than ever before, continuing to build on the cross-party agreement reached at the Smith Commission in 2014, but condemns the Scottish Government’s repeated failure to treat local authorities fairly in setting the Scottish Budget or to establish a new fiscal framework that ensures that local authorities get a fair share of resources, harming their efforts to reduce poverty, grow local economies, tackle the climate emergency and invest in essential public services, including schools." Ash Regan S6M-11546.1 As an amendment to motion S6M-11546 in the name of Shona Robison (Fiscal Framework Review), leave out from "believes" to end and insert "notes that although VAT assignment was recommended by the Smith Commission, several years later, half of VAT raised in Scotland that was to be assigned to the Scottish Budget is still not included in the updated fiscal framework, and believes that only with the full powers of independence will the Scottish Parliament have all the fiscal levers required to reduce poverty, grow the economy, tackle climate change by investing in the future of carbon capture technology in the North Sea, and invest in public services."