Date lodged: 4 July 2018
To ask the Scottish Government, further to the answer to question S5O-02298 by Derek Mackay on 28 June 2018, and in light of the £453 million underspend for 2017-18, when it will act on its commitment to implement the Barclay Review’s recommendation to halve the Large Business Supplement.
Answered by: Derek Mackay 30 July 2018
The Scottish Government is not permitted to overspend its budget so we have consistently controlled expenditure in order to ensure we live within budget control limits. This includes carefully managing the Scottish Reserve - a key element of dealing with the financial uncertainties that can arise through the Fiscal Framework.
After accounting for the commitment of £125 million additional funding announced in the 2018-19 budget process that is being distributed to local authorities this year, other planned carry forwards, surplus devolved tax receipts and fees for guarantees, the remaining cash variance is minimal. Deployment of the balance of the reserve will be considered as part of the on-going 2019-20 Budget process. The level of the Large Business Supplement, along with many other competing priorities, will form part of these considerations in the light of affordability.