Oral Answers to Questions

Debate between Richard Thomson and Iain Stewart

Wednesday 7th October 2020 Commons Chamber

[Patrick Grady (Glasgow North) (SNP)]

What discussions he has had with (a) the Scottish Government and (b) Cabinet colleagues on the effect of the delay to the autumn Budget 2020 on the finances of the devolved Administrations.

[The Parliamentary Under-Secretary of State for Scotland (Iain Stewart)]

I have regular discussions with my ministerial colleagues and Scottish Government Ministers on economic and fiscal matters. The Treasury has made an unprecedented up-front guarantee to the devolved Administrations, guaranteeing that Scotland will receive at least £6.5 billion in additional funding this year on top of its Budget 2020 funding.

[Richard Thomson]

Last year’s delay to the UK Budget saw knock-on delays in the Scottish Government and local government being able to set their own budgets, with the result that many local authorities were forced to separate setting their council tax rate from settling their revenue budgets. Given this year’s delay, which has united devolved Finance Ministers in condemnation across these islands, would the Minister like to take this opportunity to apologise for the further uncertainty and risk that his Government are about to inflict on local and national Government in Scotland?

[Iain Stewart]

First, I repeat the point made by my right hon. Friend the Secretary of State that we have heard this “cry wolf” story before from the Scottish Government. The fact of the matter is that, as well as the guaranteed minimum funding for this year, the Chancellor has asked the Office for Budget Responsibility to provide forecasts next month. Together with the spending review, which will happen this autumn, that will give the Scottish Government plenty of certainty in setting their budgets.