To ask the Scottish Government, in light of the potential impact on state schools of the United Kingdom Government’s decision to make independent schools liable for VAT, how it plans to use any Barnett consequential funding resulting from this decision to support state schools. (S6O-04395)

The Barnett formula does not entitle the Scottish Government to consequentials that are raised under reserved powers. Block grant changes are calculated with reference to the UK Government spend in devolved areas.

The UK Government had previously indicated the VAT revenue would be ring fenced and applied to the Department of Education budget to increase teacher numbers in England. His Majesty’s Treasury has now advised that there will be no ring fencing of that revenue. Although the autumn budget contained additional funding for the Department for Education, which led to Barnett consequentials, I am not able to confirm the proportion that was funded by VAT on school fees.

This issue is becoming a growing concern in Edinburgh in particular. In a response to me, the cabinet secretary has said that, already, 79 pupils from the independent sector have enrolled in the state sector. Moreover, in response to the Education, Children and Young People Committee, she gave the detail that around 40 per cent of all pupils who attend independent schools in Scotland are in Edinburgh. If we finally get clarification from the UK Government on Barnett consequentials, will she commit to allocating 40 per cent of that funding to the City of Edinburgh Council, which is the council that will be most impacted?

I thank the member for his interest in the matter, which we discussed recently at a meeting of the Education, Children and Young People Committee. I also responded yesterday to the member’s parliamentary written question, giving the detail that he has alluded to.

In response to the member, I have made it very clear that the distribution methodology that we use for our funding to local government will take into account the issues that he has raised. I recognise that the issue is particularly pertinent to the City of Edinburgh Council, because of the number of pupils in the area who attend private school.

I hope that the member will take some comfort from my response today. I apologise that I am not able to give him the granular detail that he asked for originally, but that is because of the decisions that have been taken by the UK Government.

Can the cabinet secretary outline how the 2025-26 budget has already earmarked funding for support to state schools and, specifically, how the Scottish Government is supporting the recruitment of additional teachers, which is a significant issue in my constituency?

The 2025-26 Scottish budget provides record block grant funding of more than £15 billion for local government, which is an increase of £1.1 billion, or 5.5 per cent in real terms, compared with 2024-25. The 2025-26 local government finance settlement also includes an extra £186.5 million for increasing teacher numbers to 2023 levels, and a further £28 million of funding for the additional support for learning workforce. An additional £1 million has been specifically earmarked to support national initiatives to help recruit and train more ASL teachers, including in the member’s constituency.

The UK Government has increased funding for the Department for Education by much more than what the VAT policy is raising, which means that Scotland is getting Barnett consequentials that are worth more than just the VAT policy. This week, the NASUWT published research showing worrying increases in incidents of violence in school and highlighting that 62 per cent of respondents were not aware of the Government’s national plan in that respect. Given that, will the cabinet secretary use some of the increased funding to implement commitments set out in her national action plan?

The increased funding to which the member alludes was included in the Scottish Government’s budget. As I outlined in my response to Ms Nicoll, that budget includes £186.5 million for increasing teacher numbers to 2023 levels and an extra £29 million for additional support needs in our schools to help with, for example, the recruitment of additional support needs teachers, which of course can help to respond to some of the challenges that the member has set out. I do not understand how, on the one hand, the member can come to the chamber today and praise the additionality that is coming to the Scottish Government while, on the other, her party can decide not to vote in favour of the Scottish Government budget, which delivers on the challenge set out in the NASUWT report.