Block Grant Changes (Impact on Capital Budget)

Portfolio Question Time – in the Scottish Parliament at on 22 May 2024.

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Photo of Clare Haughey Clare Haughey Scottish National Party

To ask the Scottish Government what assessment it has made of the impact of the reduction in Scotland’s capital budget as a result of changes to Scotland’s block grant. (S6O-03464)

Photo of Shona Robison Shona Robison Scottish National Party

Our block grant for capital is expected to reduce in real terms by about 9 per cent by 2027-28, which represents a cumulative loss of more than £1.3 billion. In addition, our financial transactions allocation has been reduced by 62 per cent since 2022-23, which amounts to a reduction of £290 million. That means that we will have to continue to make tough decisions to reprioritise our infrastructure pipeline to ensure that it is affordable and deliverable and that it provides the best value for money.

Photo of Clare Haughey Clare Haughey Scottish National Party

Westminster is set to cut Scotland’s capital budget by almost 9 per cent in real terms over the next five years, which will have a significant impact on my Constituency. For example, there will be less funding available to build affordable homes, and South Lanarkshire Council will continue to refuse to build a much-needed high school to serve communities such as Newton Farm, Drumsagard village and Halfway. Does the Cabinet secretary agree that it is deeply concerning that a potential Labour United Kingdom Government is signing up to public spending cuts, doubling down on Tory austerity and further restricting Scotland’s capital spending power?

Photo of Shona Robison Shona Robison Scottish National Party

The real-terms cuts that our capital budget faces are significantly impacting on our ability to deliver much-needed infrastructure investment, whether that is in Clare Haughey’s Constituency or across Scotland. I called on the UK Government to increase investment in capital projects and to release Barnett consequentials for devolved Governments, but the spring statement provided no additional capital funding.

I hope that everyone in the chamber agrees that it is absolutely imperative that whoever forms the next UK Government after the UK election changes course, reverses the cuts to capital spending and invests for the future. If they do not, they will be held accountable for that loss of capital investment.

Photo of Willie Rennie Willie Rennie Liberal Democrat

I recognise those cuts, but the reduction in inflation has released the pressure on capital spending—in factual terms, an additional £229 million is available as a result of that reduction. Will the Cabinet secretary set out what that additional spend will be allocated to? What are the Government’s priorities?

Photo of Shona Robison Shona Robison Scottish National Party

The infrastructure investment pipeline will be set out, alongside the medium-term financial strategy, on 20 June. That is when we will set out to Parliament how we will use the capital budget that is available to us and what other levers we will use.

Question Time

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cabinet

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However, during periods of national emergency, or when no single party gains a large enough majority to govern alone, coalition governments have been formed with cabinets containing members from more than one political party.

War cabinets have sometimes been formed with a much smaller membership than the full cabinet.

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Tory

The political party system in the English-speaking world evolved in the 17th century, during the fight over the ascension of James the Second to the Throne. James was a Catholic and a Stuart. Those who argued for Parliamentary supremacy were called Whigs, after a Scottish word whiggamore, meaning "horse-driver," applied to Protestant rebels. It was meant as an insult.

They were opposed by Tories, from the Irish word toraidhe (literally, "pursuer," but commonly applied to highwaymen and cow thieves). It was used — obviously derisively — to refer to those who supported the Crown.

By the mid 1700s, the words Tory and Whig were commonly used to describe two political groupings. Tories supported the Church of England, the Crown, and the country gentry, while Whigs supported the rights of religious dissent and the rising industrial bourgeoisie. In the 19th century, Whigs became Liberals; Tories became Conservatives.

constituency

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