- Additional funding to help those most in need
Measures announced today will provide further help to those most
impacted by the cost of living crisis while tackling budget
pressures caused by rising inflation and economic uncertainty.
The Emergency Budget Review (EBR) for 2022-23 identifies funding
of around £35 million for a range of initiatives to support
people with the increased cost of living, including doubling the
Fuel Insecurity Fund, doubling the Scottish Child Bridging
Payment to £260 and a new £1.4 million Island Cost Crisis
Emergency Fund to help island households manage higher energy
costs.
Significant investment in public sector pay deals – delivering
higher increases in pay for low earners – is also designed to
help families and individuals deal with the cost of living
crisis.
Other measures include:
- confirming funds to local authorities to support
Discretionary Housing Payments
- establishing a Joint Taskforce with business, COSLA, local
authorities and agencies to consider the differing impacts of
regulation on business
- extending energy advice to businesses by investing £300,000
to expand the services of Business Energy Scotland, while
doubling the value of the SME energy efficiency Loan and Cash
Back Scheme for energy efficiency to £20,000
- new payment break options to help protect those who have
agreed to repay debt through the Debt Arrangement Scheme but face
unexpected increases in the cost of living
Additional savings of £615 million have been identified to enable
enhanced public sector pay offers to be made while maintaining a
route to complying with Ministers’ responsibility to balance the
budget. They follow savings of £560 million announced on 7
September.
Deputy First Minister said:
“There has never been a time of greater pressure on the public
finances.
“The Scottish Government's budget today is worth £1.7 billion
less than when it was published last December. At the same time,
demand for government support and intervention is understandably
increasing while we continue to try to fund increased public
sector pay claims, particularly for those on lowest incomes.
“These savings are not ones we would wish to make, but in the
absence of additional funding from the UK Government, we are left
with no alternative.
“We must balance the books while prioritising funding to help
families, back business, provide fair pay awards and to protect
the delivery of public services. This Emergency Budget Review
delivers on these objectives.”
Background
The Deputy First
Minister’s Emergency Budget Review statement
The Emergency Budget
Review
Equality and Fairer
Scotland Assessment of the Emergency Budget Review
Cost of living analytical
report
Expert Economist Panel
commentary
The EBR will see £400 million spending reprioritised within
Health and Social Care to support a fair pay offer to NHS staff.
The overall health budget remains unchanged. Further savings of
£33 million have been found across the Scottish Government and
£180 million of capital spending reductions identified.
The EBR consisted of a thorough review of
all devolved spend planned for 2022-23, across all portfolios, to
support a path to balance the budget in light of significant
pressure (e.g. inflation, pay deals, increased demand), and to
identify opportunities for savings to support measures to help
with the cost of living crisis. The process was informed by
a panel of leading economists.
