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This item was published during the term of a previous administration that ended in April 2007

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Scotland's budget to rise to £25.5 billion

12/07/2004

Chancellor Gordon Brown has today announced the Executive budget will rise to £25.5 billion by 2007-2008 as part of the overall UK Spending Review.

Deputy Minister for Finance and Public Services Tavish Scott said the Executive would continue to invest efficiently and effectively in Scotland's priorities to ensure the very best value from the money.

He said the Efficient Government initiative - announced by Minister for Finance Andy Kerr last month - would deliver savings across the whole public sector which will then be invested in frontline staff and services.

And this would then be underpinned by further steps to ensure the most efficient use of public finances.

Mr Scott continued:

"The UK Spending Review highlights one of the benefits of working within a strong UK, as Scotland receives a fair share of any additional public spending.

"But we have a duty to ensure we spend public money effectively. That means we need to get the very best value from the money we invest in growing the economy and delivering better services.

"I believe that our record on efficiency is already a strong one. Our e-procurement system is one of the most comprehensive and successful e-Government initiatives in the world.

"We are joining-up back office functions between our Health Boards, to save £29 million a year. And local government has shown itself able to make a number of impressive strides to secure efficiency gains and to deepen collaboration between councils.

"But our Efficient Government initiative will dramatically step that activity up and deliver savings to plough back into frontline staff and services. That is the right thing to do.

"Our own Spending Review has been underway for some months. Now we know the totals available for the Assigned Budget, we can move forward towards announcing detailed Spending Plans for portfolios in September."

The total increases to the Executive's Assigned Budget are as follows:

2005-06 - Unchanged

2006-07 - an increase of £1.5 billion

2007-08 - an increase of £2.9 billion

(Figures shown are DEL - Departmental Expenditure Limit Spending - including resource accounting adjustments)

The results of Scotland's Spending Review, detailing how the increased funds will be invested and what it will deliver, will be announced in September.

Page updated: Sunday, July 18, 2004