Agreement reached on Fiscal Framework between Scottish and UK Governments

The Scottish and UK Governments have reached agreement on the Fiscal Framework, providing greater long-term funding clarity for Scotland and some more flexibility on how the Scottish Government manages the public finances.

• UK Government will continue to top-up the Scottish Government’s tax revenues, worth £1.4 billion last year, as a benefit of strength and scale of the UK.

• Boost to borrowing powers and backing of Barnett formula will build a better future for Scotland and help to grow the economy.

• Holyrood’s capital borrowing powers will rise in line with inflation.

The Scottish Government and the UK Government have both provided updates on this that members can read.