After negotiating for almost a year, the UK and Scottish Governments have yet to decide what should happen in five years’ time – when the existing deal on block grant funding will be reviewed.
First Minister Nicola Sturgeon warned that Scotland’s block grant from Westminster could be “reduced systematically by a cumulative total of £2.5bn” over 10 years. She said these cuts would Holyrood’s budget would bear “population-driven detriment” – the financial reflection of Scotland’s population growing more slowly than that of the entire UK.
Ms Sturgeon said: “I will not sign up to a systematic cut to Scotland’s budget – whether that cut is being applied today or by a pre-judged review in five years’ time.”
Scotland’s Finance Secretary John Swinney said the UK Government doesn’t agree with the Scottish Government’s opinion on the principle of no detriment, which would affect the block grant.
According to Swinney, “No detriment means that our budget should not be cut as a consequence of the devolution of these powers. The UK Government takes a different view.”
Mr Swinney has also warned that Holyrood has limited time to study an agreement before dissolution ahead of May’s elections.
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