Scotland’s block grant, the funding allocated by the UK government to the Scottish Parliament, has fallen to its lowest share of UK government spending in nearly a decade, according to a recent analysis by the House of Commons Library. The report, commissioned by the SNP, reveals that the proportion of Westminster spending on Holyrood has decreased from 8.2% in 2015/16 to 7.6% as of July this year.
This reduction translates to a significant financial impact, with the SNP claiming that Scotland’s block grant is now worth £6.4 billion less than it was in 2020/21, representing a substantial 12.7% drop. The figures were calculated before any adjustments were made to reflect the devolution of tax and welfare powers to the Scottish Parliament.
The Scottish Government has already reported that its capital budget, which is earmarked for long-term projects such as infrastructure and buildings, has been cut by 9.6% (approximately £600 million) after adjusting for inflation. An additional 3% cut is expected this year.
Simultaneously, the resource budget, which funds day-to-day spending on essential services like the NHS, has reportedly been reduced by nearly 15% in real terms since 2020.
The SNP has called on the Chancellor to reverse these cuts in the upcoming Budget. David Doogan MP, the party’s economy spokesperson at Westminster, warned against “starving Scotland of investment” and urged the Labour government to “abandon its devastating plans for austerity, reverse the cuts to Scotland’s budget and deliver the major investment boost needed to protect public services and get the economy growing.”
