Block Grant Adjustments

The Fiscal Framework describes how funding for the Scottish Budget should be changed, now more taxes and social security have been devolved to the Scottish Parliament. These funding changes are called Block Grant Adjustments (BGAs).

Tax BGAs remove funding from the Scottish Budget, because the Scottish Government is now raising its own tax revenue. Social security BGAs add funding because the Scottish Government has become responsible for social security payments.

BGAs are based on revenues or spending in Scotland the year before devolution, and then adjusted in line with increases in UK Government revenue or spending per head on the corresponding taxes and benefits. The adjustments are designed to reflect the hypothetical amount that would have been raised or spent in Scotland if the taxes and benefits had not been devolved.

We publish relevant BGAs in each of our forecast publications.

Find out more in our Analytical Papers series, including our Occasional Papers and Forecast Evaluation Reports.

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Or read our latest Scotland’s Economic and Fiscal Forecasts report.

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