New spending plans for Scotland

Public services in Scotland received a boost today with large increases in investment over the next three years as part of the Government's Spending Review plans announced by the Chancellor Gordon Brown today. By 2003-04, spending will be £3.4 billion higher than in 2000-01.

Additional resources over the next three years have been made available to invest in modern public services in Scotland. The increases over 2000-01 baseline are £1.2 billion in 2001-02, £2.3 billion in 2002-03 and £3.4 billion in 2003-04 .

The extra resources will allow the Scottish Executive to improve devolved public services and determine their own particular expenditure priorities in line with the needs of the people of Scotland.

Dr John Reid, the Secretary of State for Scotland, said:

"This represents an excellent settlement for Scotland. The Government has provided substantial additional resources for Scotland, made possible by our successful handling of the economy and public finances. Now it's for the Scottish Executive to translate this opportunity into the best possible services for the Scottish people.
"The spending review demonstrates the Government's commitment to provide an opportunity for everyone to fulfil their potential through education and employment; to promote a fair and inclusive society in which communities are healthy and secure; and facilitates sustained economic growth and investment in infrastructure.
"This is also a fair settlement for Scotland, which gives the Scottish Executive a population based share of the extra resources which are now available as a result of the Government's sound management of the economy."

The Scottish Executive has freedom to make their own spending decisions within the overall totals on functions under their control in response to local priorities. The Scottish Executive will make their own announcements in due course about their detailed spending plans.

Notes for editors

1. The Scotland Departmental Expenditure Limits for the next three years represent increases over the 2000-01 limit of £1.2 billion for 2001-02/ £2.3 billion for 2002-03/ £3.4 billion for 2003-04 and include increases announced in the Budget. They represent a 4.4 per cent real terms annual average increase in provision over the next three years.

2. The budgets have been set in resource terms consistent with those of UK departments.

3. The increases have been determined on the basis of the Barnett formula. The general principles for determining budgets were set out in the Statement of Funding Policy.

4. The Barnett formula ensures that Scotland receives a population based share of changes in comparable spending in England.

5. The devolved administrations' budgets continue to be determined within the United Kingdom framework of public expenditure control. Responsibility for United Kingdom public expenditure allocation remains with the Treasury.

6. The changes in the Scottish Executive's budget in the spending review has been linked to changes in spending plans of United Kingdom Government departments by the Barnett formula. The formula gives Scotland, Wales and Northern Ireland a population-based share of planned changes in comparable spending in England.

7. For more information, contact the Scotland Office press office on 020 7270 6875.