UK Budget 2020 - Scotland £640 Million, Wales £360 Million And Northern Ireland £210 Million

11th March 2020

As part of its commitment to levelling up the whole of the UK, the government will support economic growth in each of the four nations and will strengthen the ties that bind them into a prosperous United Kingdom. The government will work closely with the devolved

administrations on this agenda, especially where it is possible to achieve better outcomes in partnership with Cardiff Bay, Holyrood and Stormont.

The Budget announces changes across tax, welfare and public spending that apply across the whole of the UK and so will directly benefit people and businesses in Scotland, Wales and Northern Ireland. This includes steps to upgrade digital infrastructure, support decarbonisation and reduce tax for employees and the self-employed.

Where Budget measures do not apply across all nations, the devolved administrations will receive significant additional funding through the Barnett formula to invest further in public services, infrastructure and other priorities:

• the Scottish Government's block grant will increase by over £640 million through to 2020-21 before adjustments for tax devolution

• the Welsh Government's block grant will increase by over £360 million through to 2020-21 before adjustments for tax devolution, this includes a 5% uplift in Barnett consequentials agreed as part of the Welsh Government's fiscal framework in 2016

• the Northern Ireland Executive’s block grant will increase by over £210 million through to 2020-21

The Budget announces £242 million to fund a further four City and Growth Deals across Scotland, Wales and Nothern Ireland. This builds on the £2.5 billion already allocated to existing deals and ensures that every part of Wales and Nothern Ireland benefits from a City or Growth Deal, with another deal that benefits Scotland.

The government will also take action to improve cross-border links, including improving transport links between North Wales and England by developing the A483 Pant Llanymynech Bypass, and supporting an independent economic review of the Western Gateway, which stretches across Wales and the west of England.

The Budget announces further support targeted at each of the nations - including a package for the whisky industry, action to allow TV channel S4C to recover in full any VAT it pays, and legislation to provide appropriate exemptions for payments for injuries relating to the Troubles in Northern Ireland.

Additionally, the government is working with the Scottish Government to devolve further tax and welfare powers as set out in the Scotland Act 2016. This includes transferring responsibility to the Scottish Government for around £3 billion of disability benefits in April 2020 and, from 2021, assigning half of the VAT revenues generated in Scotland.