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As with all previous years, level 1 funding for each portfolio will be adjusted following the Autumn and Spring Budget Revision to reflect changes in funding and expenditure plans such as in-year transfers between portfolios.

The transfers identified in Table 4.12 of the 2025-26 Scottish Budget would reduce Education and Skills portfolio budget by £689.6 million, reduce the Justice and Home Affairs budget by £1.0 million, reduce the Health and Social Care portfolio budget by £593.0 million, reduce the Social Justice portfolio budget by £179.7 million and increase the Finance and Local Government portfolio budget by £1,463.3 million compared with the published 2025-26 budget position.

Any new funding commitments or changes to existing funding will also be adjusted at Autumn or Spring Budget Revision, following approval through the formal financial governance process which requires agreed recommendations from the joint Scottish Government and COSLA Officers’ Settlement and Distribution Group and political agreement from Scottish Ministers and COSLA political Leaders.

Table A.07 in the 2025-26 Scottish Budget shows an adjusted 2024-25 resource position removing the impact at portfolio level of the recurring transfers actioned at ABR, to allow a like-for-like comparison against the 2025-26 initial allocations. The table shows the year-on-year movement at portfolio level in cash and real terms on a comparable basis.

The answer to question S6W-32009 shows the additional income arising from the Intermediate Property Rate being set at 55.4p in 2025-26, compared to setting it at 54.5p, keeping rateable values and all other variables constant.

Generally, rateable values only tend to change at revaluations which take place every three years, with the next one scheduled for 1 April 2026. Outwith revaluations, rateable values may change due to factors such as property expansions or improvements, changes due to proposals or appeals, or additions and deletions of property entries from the Valuation Roll.

In Scotland, there is no legislation linking the maximum possible uprating of the rates to inflation in the preceding year. Given that Scottish Ministers have chosen to set the Basic Property Rate to match or be below the Small Business Multiplier in England since 2007-2008, up until 2016-2017, September Retail Price Index (RPI) acted as a cap on inflationary increases in poundage in Scotland because in England, legislation used to link the maximum possible uprating of the Small Business Multiplier to September RPI of the preceding year. The independent Barclay Review of Non-Domestic Rates published in 2017 noted calls for increases in the poundage to be linked to the CPI rather than the RPI. Since 2017-18, annual changes in the rates in Scotland have been lower than the CPI increase.

All answers to written Parliamentary Questions are available on the Parliament’s website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers

The Scottish Government estimates that spending on workforce pay, including pensions and employer National Insurance contributions, will be equivalent to 53.4% of the entire Scottish resource budget in 2025-26. That reflects the importance this Government places on having a highly skilled and remunerated workforce. This only includes funding provided to Local Government from the Scottish Government and does not take account of other sources of funding available to Local Government, such as council tax and other forms of income.

Medium-term projections on workforce spending over the next five years will be set out in the forthcoming Medium Term Financial Strategy.

Yes. The Scottish Government keeps a range of measures under consideration as it develops and finalises its Budget. Final decisions are communicated with the Scottish Fiscal Commission (SFC) as soon as is practicable.

Based on Scottish Government forecasts for 2029-30 the total Fiscal Resource Budget is forecast to be £60.2 billion. Social Security expenditure for 2029-30, as forecast by the Scottish Fiscal Commission, is £8.9 billion. Therefore, Social Security expenditure is estimated to be 14.8 per cent of the total Fiscal Resource Budget in 2029-30.

The Scottish Government is committed to making savings by driving key efficiency programmes such as Scottish Single Estates, Commercial Value for Money (CVfM), Collaborative Procurement frameworks, Oracle Cloud implementation, the Intelligence Automation Centre of Excellence, Digital programme, and Revenue Raising. This work reflects our approach of building these key efficiency programmes into the overall PSR approach.

There has been strong progress across these programmes, with cashable savings delivered. Our Single Scottish Estate, National Collaborative Procurement, Commercial Value for Money and Digital programmes are collectively securing cost avoidance and cash releasing savings, expected to reach up to £280 million over a two-year period by the end of 2024-25, with further projected savings of nearly £300 million over the following two financial years to the end of 2026-27.

The Single Scottish Estate (SSE) will help us have a more efficient approach to public sector property management, optimising costs, enabling the delivery of excellent public services and providing staff with great places to work, recognising the shifts in working culture since the pandemic. The SSE engages with all parts of the public sector including health and local authorities as well as central government bodies. The programme is currently focused on the public sector administrative estate and is undertaking a number of location-based reviews and projects including across Perth, Edinburgh and Glasgow. We are estimating £50-80m total savings from now to 2028, with associated carbon reductions and improvements in service delivery to the public. An overall total of £36m of direct Single Scottish Estate benefits have been secured.

Collaborative procurement can help public bodies achieve better value for money, through consolidating volumes, driving efficiencies and social value and making better use of skills and resources. The Scottish Government establishes national collaborative procurement framework agreements on behalf of the whole Scottish public sector. There are opportunities to increase Scotland’s collaborative buying power by expanding the use of National Collaborative Frameworks across the Scottish public sector, leading to a significant increase in financial benefits delivered on a cross-sectoral basis via economies of scale. Building on current financial benefits delivered annually of around £130m, made up of both cost avoidance and cash savings, work is underway to scope the potential to scale up the service offered by the national collaborative procurement team.

The Commercial Value for Money programme (CVfM) is providing commercial expertise and support across all Scottish Government expenditure to support increased value for money through the delivery of monetary efficiencies and/or increased impactful policy outcomes. This includes work in areas such as grant alignment, commercial scrutiny of costs, development and implementation of performance monitoring and reporting to show the effectiveness of SG spend, development of novel funding approaches and increased leverage of SG spend. Almost £7m of cashable and £600k of non-cashable savings have already been delivered, with little or no impact on policy delivery. The CVfM programme is projected to save up to £50m over the next 5 years whilst also supporting other efficiency work.

Meanwhile, the Intelligent Automation Centre of Excellence has already been realised significant benefits within government and several core agencies. £3.9M in cost-avoidance benefits have been achieved to date with a projected £14.5M by 28-29.

As the PSR programme develops further, building on the data and capacity around savings, and the embedding of reform and efficiency in the budget process, we will look to drive and quantify other and future savings opportunities.

Our commitment to reform is not a single programme; it is a cross system approach with a focus on strategic priorities which we set out in the Budget. This work is being progressed through multiple and interconnected work-streams and requires a whole-of-government approach.

There are 5.8 civil servants working in the team that is leading the core public service reform programme.

Table 1 shows the estimated net income from properties liable for the Basic Property Rate in 2025-2026, broken down by property class. The net estimates include adjustments for reliefs, as well as in-year adjustments such as reductions due to proposals or appeals and write-offs.

The Scottish Government does not hold property-level data on industry sectors. “Property class” is a classification used by Scottish Assessors to describe the type of property, but may not necessarily accurately reflect the actual use of a property.

The distribution for relief awards is estimated based on a snapshot of councils’ billing systems as at 1 June 2024. In the case of the proposed relief for hospitality properties, the forecast value of the relief has been distributed based on property level eligibility without trying to account for take-up or for the effect of the £110,000 cash cap for this relief at a business level.

Table 1: Estimated net income from properties liable for BPR by class, to the nearest £100,000

The Scottish Government published a detailed update to Finance and Public Administration Committee on 19 December 2023 setting out our reform plan.

With actions across 4 workstreams we are clear on the work that Scottish Government is doing. We are working to build a shared vision, support efficient delivery of services, empower service providers, unblock stubborn barriers and work together with partners on models of funding and accountability which underpin the reform we need to see. Our approach balances responding to short-term budget pressures and making savings, while building the platform for wider change.

I provided an update to FPAC on delivery against the programme and the portfolio plans on 23 September 2024 and 21 December 2024, and we will continue to report on progress with the Parliament at 6-monthly intervals.

I will also be leading the process of articulating a PSR strategy within government and with partners. We will engage with public sector leaders at a PSR summit by the end of February 2025. Together this will set out the Scottish Government’s vision and expectations and invite public sector leaders to come together to inform that strategic approach and to galvanise action.

The core Scottish Government workforce has been following a strategy to reduce in size since March 2022, to adjust to the budgetary context and the change in the profile of its work following the Covid-19 pandemic. This direction accords with the wider work on medium term financial planning and in-year path to balance, as well as aligning with wider Public Service Reform ambitions. Enhanced recruitment controls were introduced at the start of the 2022-23 financial year to achieve this strategy.

In 2022-23 and 2023-24 the total Scottish Government workforce (i.e. directly employed and contingent workers) reduced by 0.4% and 3% respectively. This is the first time the workforce has reduced in consecutive years since SG began publishing workforce statistics in 2012. For the remainder of 2024-25, the presumption against external recruitment has been further strengthened in line with the spending controls announced in August 2024. Workforce planning for 25-26 will get underway across SG teams in early 2025. The size of the corporate functions within the Scottish Government, and the services they offer to wider public sector bodies, has been part of the consideration of the optimal size and deployment of the total Scottish Government workforce.

Ongoing assessment of the size of the corporate functions, both within the Scottish Government and across the wider public body landscape, is underway and opportunities will continue to be reviewed to ensure the those functions are as efficient and effective as possible to enable the delivery of public services.

The Scottish Government is taking action to support effective workforce planning in public bodies to, including providing guidance on redeployment.