Block Grant Adjustments

The fiscal framework describes how funding for the Scottish Budget should be adjusted following devolution of taxes and social security. 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 social security payments. The adjustments are designed to reflect the hypothetical amount that would have been raised or spent in Scotland if the taxes and payments had not been devolved.

We publish relevant BGAs in each of our forecast publications.