Scottish government announces £290m in additional funding

During the Stage 3 debate in the Scottish Parliament, Finance Secretary Kate Forbes announced a further £290m in financial support to help address the rising cost of living.

Ms Forbes said that while the Scottish Government is awaiting final confirmation from the Treasury on funding allocations, the £290m for Scotland announced by the Chancellor of the Exchequer last week is not likely to mean net additional funding. This is due to an expected reduction of a similar amount in other consequential funding previously anticipated through the forthcoming UK Government Supplementary Estimates.

Despite these budget pressures and existing support in place to help people, Scottish Ministers have honoured the commitment to allocate £290m to help tackle the cost of living crisis and are going further to ensure those hardest hit have support. New measures announced include providing £150 to every household in receipt of Council Tax Reduction in any Band and to provide £150 to all other occupied households in Bands A to D. This means 1.85 million households, or 73% of all households, will receive financial support through their council tax bill or a direct payment.

The budget will also see £10m in 2022-23 spent on the Fuel Insecurity Fund to help households from rationing their energy use. This is in addition to the £120m previously announced for local government in 2022-23.

A further £39.5m has also been allocated to businesses from the £375m of Omicron business support funding for the current financial year. Following consultation with businesses, who asked for financial support to now focus on economic recovery, this funding will help support local economies and cities continue their economic recovery and help build a more resilient economy. 

Ms Forbes said: ‘Large rises in energy bills, increased costs on every day essentials, rising interest rates and the UK Government’s new National Insurance hike are causing huge concern and worry, and people are struggling. These additional costs will hit the most vulnerable in our society, the hardest.’

‘That is why we will honour our commitment, whatever other Budget challenges we face, to pass on the full £290m to help families now. I am therefore today announcing that there will be three elements to the package of support today.’

‘We must seek to do what we can to prevent those households and families on the edge of the poverty line, from falling over it.’

In related news, new figures show that economic output is estimated to be back above pre-pandemic levels, suggesting encouraging signs for economic recovery in Scotland.

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