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Scottish Budget 2020-21 1 Chapter 2 Tax 17 Chapter 3 Infrastructure Investment 32 Chapter 4 Pre-Budget Scrutiny by Parliamentary Committees 37 Scottish Budget: 2020-21 Scottish Budget: 2020-21 Laid before the Scottish Parliament by the Scottish Ministers, February 2020 SG/2020/20 The Scottish Government, Edinburgh 2020 © Crown copyright 2020 This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open- government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected]. Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. This publication is available at www.gov.scot Any enquiries regarding this publication should be sent to us at The Scottish Government St Andrew’s House Edinburgh EH1 3DG ISBN: 978-1-83960-496-6 Published by The Scottish Government, February 2020 Produced for The Scottish Government by APS Group Scotland, 21 Tennant Street, Edinburgh EH6 5NA PPDAS685594 (02/20) CONTENTS PREFACE v Chapter 1 Strategic Overview for the Scottish Budget 2020-21 1 Chapter 2 Tax 17 Chapter 3 Infrastructure Investment 32 Chapter 4 Pre-Budget Scrutiny by Parliamentary Committees 37 Portfolio Chapters Chapter 5 Health and Sport 43 Chapter 6 Communities and Local Government 60 Chapter 7 Finance, Economy and Fair Work 92 Chapter 8 Education and Skills 115 Chapter 9 Justice 134 Chapter 10 Transport, Infrastructure and Connectivity 158 Chapter 11 Environment, Climate Change and Land Reform 180 Chapter 12 Rural Economy 195 Chapter 13 Culture, Tourism and External Affairs 211 Chapter 14 Social Security and Older People 221 Chapter 15 Government Business and Constitutional Relations 231 Chapter 16 Crown Office and Procurator Fiscal Service 236 ANNEXES ANNEX A Scottish Government Fiscal Control Framework and Reconciliation of Available Funding to Spending Plans 242 ANNEX B Summary of Portfolio Spending Plans 251 ANNEX C Budgets Split by HM Treasury Aggregate (web only) 256 ANNEX D Outturn Comparison 2012-13 to 2018-19 257 ANNEX E Budget Bill Reconciliation and Cash Authorisation 261 ANNEX F Scottish Government Operating Costs 266 ANNEX G Social Security Block Grant Adjustments 268 ANNEX H Glossary 270 iv | SCOTTISH BUDGET: 2020-21 PREFACE This is the second year of a revised budget process following the adoption in 2018 of a new written agreement between the Scottish Government and the Finance and Constitution Committee of the Scottish Parliament.1 The revised budget process now presents a single Scottish Budget document designed both to provide the necessary financial information required to support parliamentary scrutiny of Scottish Government spending plans within the limits of the available budget, and to set out the supporting information for the Budget (Scotland) Bill. This document details portfolio budgets on an HM Treasury basis (in line with last year’s document and the Draft Budget documents for earlier years), which allows year-on-year comparison of spending plans. The portfolio chapters are arranged in the same order used in last year’s document. Each chapter provides a detailed analysis of the proposed plans on a portfolio-by- portfolio basis. For each portfolio and arm’s length body, the portfolio chapter shows: y the proposed portfolio budget for fiscal resource, non-cash, fiscal capital, Financial Transactions and UK-funded AME (Annually Managed Expenditure), with any adjustments for the purposes of Scottish Parliament approval separately detailed; and y details of the proposed budget for each individual Level 2 activity. Annex E provides further detail on the reconciliation of the portfolio spending allocations as set out in this document with the Budget Bill, showing the overall resource authorisations sought in the Budget Bill at portfolio level, and the cash equivalents. The numbers shown in the summary tables in Annex E will read across to the numbers shown on the face of the Bill. The purpose of the Bill itself is to secure Scottish Parliament approval for the Scottish Government’s spending plans for the financial year 2020-21. The Bill does not seek approval of the tax measures in this document as these are subject to separate legislation and parliamentary procedure. 1 http://www.parliament.scot/S5_Finance/General%20Documents/20180517WA_with_SG.pdf vi | SCOTTISH BUDGET: 2020-21 This document itself has no statutory force – it is produced as an aid to understanding the Budget. It is the aim of the Scottish Government to present a budget to the Scottish Parliament with a clear read-across to the Scottish Government’s Consolidated Annual Accounts. The Scottish Government continues to discuss with the Finance and Constitution Committee and others how it can improve the presentation of supporting information for the Budget, and which material is found to be most useful. CHAPTER 1 Strategic Overview for the Scottish Budget 2020‑21 The Scottish Government is committed to the creation of a more successful country, with opportunities for all of Scotland to flourish through increased wellbeing and sustainable and inclusive economic growth. This national purpose is underpinned by the National Performance Framework and our efforts to build a Wellbeing Economy, where improvements in living standards and our environment are as important as, and fundamental to, improvements in our economy. The Scottish Government’s tax and spending plans for 2020‑21 reflect this vision and commitment. This budget of nearly £50 billion seeks to strengthen our economy and support the path to net‑zero carbon emissions, while tackling inequality through the delivery of first‑class public services and providing support for those who need it most. This approach, supported by a commitment to progressive taxation, forms a strong social contract between the Scottish Government and the people of Scotland. This Budget builds on the current Programme for Government, the National Performance Framework and the Medium Term Financial Strategy, which made clear that our plans would be focused on supporting our public services, building national wellbeing, boosting inclusive economic growth, building sustainable places, responding to the global climate emergency and tackling child poverty. The Scottish Budget in 2020-21 will improve Scotland’s national wellbeing The Scottish Budget is guided by the vision of wellbeing in the National Performance Framework. To be a more successful country we need to make progress across a range of environmental, social and economic factors captured in the National Outcomes. Taking a wellbeing approach to the budget prioritises investment in areas that will have the greatest impact on both improving lives across Scotland now and creating the conditions to ensure wellbeing for future generations. The Scottish Budget does this through our investments in ending Scotland’s contribution to climate change, through our inclusive economy, our support for public services and by tackling deep‑rooted inequalities including child poverty. Taken together, these endeavours will substantially improve our success as a nation. This approach recognises that economic growth is hugely important, but it must be matched by improvements in our environment, quality of life, in the opportunities available to everyone and the public services that support us. 2 | SCOTTISH BUDGET: 2020‑21 In particular, the Scottish Budget supports priorities that will deliver across multiple outcomes, including: y investing around £645 million in the revolutionary expansion of early learning and childcare, improving the life chances of our children, delivering better opportunities for parents and carers to balance work and family life, and setting fair work standards for those that will deliver the expansion; y ensuring a strong start for the Scottish National Investment Bank and its mission to drive the transition to a net‑zero economy with £220 million of fresh seed funding from the Scottish Government in 2020‑21 as part of our £2 billion capitalisation pledge; y increasing investment in health and care services by more than £1 billion, with the total health portfolio budget exceeding £15 billion for the first time; y funding to establish the ‘game‑changing’ Scottish Child Payment which when fully rolled out in 2022 will help an estimated 30,000 children out of poverty; y keeping our communities safe, with an above real‑terms increase to the police budget, an increase to the budget of the fire service, and £6.5 million of additional investment in support for community justice, to reduce re‑offending; y investing more than £180 million in raising attainment in schools, including £120 million delivered to headteachers to spend on closing the attainment gap; y increased investment of £16 million in concessionary fares and bus services, taking total investment in 2020‑21 to nearly £290 million, as part of our commitment to encouraging greater use of public transport and tackling social isolation; y increased investment of £5.5 million in active travel, improving connectivity, our physical and mental health and encouraging the step‑change needed for our net‑zero climate targets; y investment of £117 million in mental health for all ages and stages of life, recognising the impact on individuals, families, communities and our economy; y increased targeted funding by 59 per cent to support the urgent action needed to reduce the harm associated with using alcohol and illicit drugs and halt the rising number of drugs deaths, which have a devastating
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