The UK Government has provided the Scottish Government with an additional £1.1 billion to support people, businesses and public services affected by coronavirus.
This funding brings the total allocated through the Barnett formula to the Scottish Government since the start of the pandemic to £9.7 billion.
In recognition of the exceptional circumstances and in response to calls for flexibility, the Scottish Government will be able to carry over any of the £1.1 billion not spent this year into the 2021/22 financial year on top of their existing tools to transfer funding between years.
Chief Secretary to the Treasury Steve Barclay said:
Scottish Secretary, Alister Jack said:
Following the previous update on 24 December, this is expected to be the final update for 2020-21 as part of the process for finalising departmental funding at Supplementary Estimates.
Any changes to devolved funding are normally confirmed towards the end of the financial year at Supplementary Estimates – but in July 2020 the UK Government introduced an unprecedented upfront guarantee to provide the devolved administrations with funding certainty to respond to COVID-19 this year. A full explanation of the Barnett guarantee can be found here.
The agreed arrangements the devolved administrations have to move funding between years is set out in Chapter 10 of the Statement of Funding Policy.
Further explanation of the Supplementary Estimates process can be found here.