Is The Scottish Block Grant The Largest Or Smallest It Has Ever Been - in real terms, it is not a record block grant

10th March 2024

Fraser of Allender looks at who is right when talking about the size of the block grant. We hear it all the time - the amounts are bigger than ever but we all also know that even though our salary pension etc is bigger than ever it buys less these days. So say councils have more than ever in real terms we know the truth is it buys less housing roads, health etc. So the block grant is important but more important is telling the truth abut what it really means.

Over to Mairi Spowage and João Sousa to understand what it actually means so when you hear that such and such a grant is bigger than ever you understand what it actually means and your not fooled by the flim flan

We've had a busy week here at the Fraser, digesting all of the announcements made by the Chancellor on Wednesday. Hopefully you've found our blogs and analysis useful, and there will be more analysis in the weeks to come, and as part of our next Quarterly Economic Commentary on 27th March.

One of the first things we get asked about any fiscal event is, of course, what it means for Scotland. This week's announcements saw £295m of Barnett consequentials coming to the Scottish Government, mostly generated from extra spending on the NHS in England.

These extra consequentials were heralded by some (i.e. the UK Government) as being part of a "record" block grant, which was "the biggest in the history of devolution". At the same time, a number of outlets ran a story on Wednesday, quoting Pete Wishart, SNP MSP, which said that the Scottish block grant is the "lowest since devolution". So, who is right?

It is not surprising that government spending of any kind is the highest ever
Firstly, we need to deal with the slightly irritating claim about the block grant being the highest in the history of devolution. This is a pretty meaningless claim, because inflation means that in cash terms this is almost always going to be true. Lots of politicians say stuff like this, including the Scottish Government (about the funding given to local government, or how much money they are spending on health).

Putting that aside - is it true?

Read the details about who is right HERE