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400million Scottish government underspend


Reynard

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Eh no. South Ayrshire council is a joke and always has been.

Label me stunned.

"SNP underspend " - an example of good governance.

"Labour underspend" - shocking.

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Label me stunned.

"SNP underspend " - an example of good governance.

"Labour underspend" - shocking.

Incredible level of double standards. Ayr is apparently a shithole because Labour withhold wedge. Scotland is a shithole not because of the Scottish government withholding wedge but because of WESTMINSTERRRRR!!! Talk about tying yourself in knots...

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From elsewhere;

Wilson understands fine well how public finance works, but misrepresents cynically in order to mislead

1. The Scottish Government CANNOT legally overspend (see below)

1. SG prudently maintain a small contingency for unforeseen events. e.g 10 weeks of snow in 2010.

1. Hence they aim to just underspend each year but keep that underspend minimal in relation to the overall budget

1. The SG carry forward money between financial years. That is the 'Financial Transactions line in table 1.01 http://www.scotland.gov.uk/Publications/2013/09/9971/2

For 2014/15 the carry forward is £189m - so the actual outturn underspend is not £444m, but £262m. Which equates to 0.9% of the total £29,089,000,000 Scottish budget in that year. Pretty damn good.

1. Budget decisions made by the UK Government have Consequentials the amount and timing of which are both outwith the SG's control. In the year in question these were £841m. For the SG to get under 1% away from budget projections in these circumstances is not a failure. It is a minor miracle!

See http://www.scottish.parliament.uk/ResearchBriefingsAndFactsheets/S4/SB_11-74.pdf
"UK Government accounting rules deem that Departments and devolved administrations are not permitted to overspend in a financial year. This means that the Scottish Parliament cannot authorise expenditure in excess of the total assigned budget and other sources of income. The Treasury’s Statement of Funding Policy, lays out the arrangements for funding the devolved administrations as follows: “Breaches in DELs which materialise at the end of the year would be viewed by the United Kingdom Government as serious mismanagement on the part of the devolved administration and the presumption would be that the following year’s DEL and grant to the devolved administration would be reduced by an amount equivalent to the breach. The same rule applies to departments of the United Kingdom Government” (Treasury 2010). However, the rules relating to unspent monies (known as underspends) were relaxed in the late 1999s by the then UK Government. Prior to the late 1990s, any departmental underspend would automatically transfer back to the centre. However, the introduction of End Year Flexibility (EYF) allowed departments and devolved administrations to carry forward unspent monies from one year to the following. This was partly as a result of the move to Spending Reviews which outlined three-year DELs, but was also designed to prevent the practice of inefficient spending by departments concerned at losing money – in essence “spending for the sake of it” at the end of financial year. The Coalition Government elected in 2010 ended this system of EYF and introduced a “Budget Exchange Mechanism” (BEM) in its place. This system allowed for a limited amount of unspent monies to be carried over from one year to the next. Departments and devolved administrations would inform the Treasury in November what they were expecting to underspend in that financial year. Any underspend beyond that amount would return to the centre. Accumulated underspends were also to be returned to the centre as part of the BEM. The Finance Ministers Quadrilateral meeting of 14 July 2011 agreed a modification to this arrangement. Devolved administrations would be allowed to carry over unspent monies from year to year up to a set limit, rather than having to estimate anticipated underspends to Treasury in November. It was agreed that the Scottish Government would be allowed to carry over up to a maximum 0.6% of Resource DEL and 1.5% of Capital DEL from one financial year to the next.

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You don't really get whats going on, do you?

Scottish Labour handed that 1.5 billion back to Westminster at a time when they were bashing on with the privitization of the health sector.

The SNP actually managed to claw much of that money back when they took over through an agreement they set up with Westminster. They also won't be handing any of that 444 million back.

Eh, I was talking about Labour in Ayrshire - which you'd have realised if you werent' a thick c**t Confidemus.

Thanks for playing though.

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You can't even seem to get that subject right either. Your political naivety on here knows no bounds. You fit in well with Jim Murphy's pro-right crew.

Well, how embarrassing for you Confidemus. You've dived in here, and made a complete fool of yourself.

Not for the first time of course. Time you begged to be banned again.

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And yet another subject you're getting spectacularly wrong. If I was that poster, i'm sure the admins on here would have flagged it up by now.

But seeing how weirdly obsessed you are with that poster, i'm not surprised he left.

Why? You volunteered to leave. Your ban was self imposed because you'd made a c**t of yourself and the mods simply did what was requested of them by you.

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Its almost as if they were busy doing something else apart from their core jobs last year?

Quite.

Nicola sturgeon even said in a tv debate the reason the local income tax hadn't been brought in was because the snp was busy with the referendum.

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Incredible level of double standards. Ayr is apparently a shithole because Labour withhold wedge. Scotland is a shithole not because of the Scottish government withholding wedge but because of WESTMINSTERRRRR!!! Talk about tying yourself in knots...

nope, the money was sent back by councils, not the glorious SNP government. Thanks confi for putting us right.
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nope, the money was sent back by councils, not the glorious SNP government. Thanks confi for putting us right.

Councils spending within budget is disgraceful - just think what they could be doing for the poors in their area with that unused funding.

The Scottish government spending within budget is remarkable - good governnance and very sensible to run at a surplus. Can't do any more for the poors than they are.

I think that just about covers it.

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nope, the money was sent back by councils, not the glorious SNP government. Thanks confi for putting us right.

Councils spending within budget is disgraceful - just think what they could be doing for the poors in their area with that unused funding.

The Scottish government spending within budget is remarkable - good governnance and very sensible to run at a surplus. Can't do any more for the poors than they are.

I think that just about covers it.

Firmly in "two legs good four legs bad" territory here with the clown collective.

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SAC has been run by numpties for the last 15 years.........yes... Tory, Labour and SNP administrations.

Fools the lot of them. Too busy fighting each other to be even remotely aware of the common weal.

They'll be well aware. But like most other normal people they will just ignore them as the loony left. We've been there and done that in the UK, thanks.

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Open letter from Deputy First MinisterJOHN SWINNEY

£145m is the true underspend

Updated on the

14 January 2015

The Scottish Government firmly believes Scotland will prosper best when all revenue raised here stays here.

Meantime, there is an obligation upon us to ensure what funds the UK Government does allocate to Edinburgh are managed responsibly. That’s why this government ensures that we put every penny we receive towards improving the lives of people in Scotland.

In contrast, Brian Wilson’s comments (Perspective, 10 January) betray the same problems understanding ­public spending that must have bedevilled the Labour Party when they managed Scotland’s finances.

Mr Wilson’s colleagues managed to forget to spend £700 million in one year and left more than £1 billion in a Treasury bank account which could have supported our economy and public services.

Thankfully the SNP secured the release of that money.

I can assure Brian Wilson, and your readers, that if the £444m of underspend he ­refers to was all money over which I had control, then every penny of it would be being invested properly to mitigate the impact of ­Westminster cuts and welfare reforms.

The £444 million underspend against the annual accounts-based budget, ­reported in the Final Outturn Report and in the media last week, also reflects variances in Annual Managed Expenditure programmes and other technical non-cash accounting budgets – for example depreciation and impairments.

So such underspends therefore do not reflect a missed opportunity to spend more on public services – much as Mr Wilson and his Labour ­colleagues try to claim otherwise. The reality is that the fiscal underspend the Scottish Government has available from 2013-14 to invest in public services is only 0.5 per cent of our budget, or £145 million.

Far from keeping it a secret, I announced it to Parliament in June, and confirmed that it would be carried into the next year – and that every penny would be allocated to support people in ­Scotland.

On top of that, some £31 million of financial transactions was also brought forward to support vital investment in housing and regeneration. This is funding restricted by Treasury rules and can only be used for the provision of loans or equity investment beyond the public sector and has to be repaid to HM Treasury in ­future years.

We agree that Scotland’s schools and hospitals are worthy of the best possible levels of investment and, until we are responsible for our own financial affairs, they deserve better than the successive real-term cuts to which Scotland’s budget has been subject and which the Labour Party clearly intend to continue.

JOHN SWINNEY

Deputy First Minister

I'm sure the unionists will be on any minute now to condemn the actions of the previous Scottish Government :rolleyes:
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The underspend was £145 million.

To put it into perspective last years underspend was £179 million.

So all in all, the Government have spent £34 million MORE than they were allocated by the Barnett Formula.

Here to help.

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Surely this is an issue with how the UK system works and indicates how we quite clearly aren't "Better Together".

How can Scotland ever grow the economy if it can't.

A) Raise money?

B) Hold onto money that isn't spent?

But I thought it could and has done that?

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So Mr S is misleading us then when he says its available to Scotland. Talking of doing better is this under spend still a deliberate fund? Or bad management by councils?

Yes. He was wheeled out yesterday to unzip and give the clown collective something to suck on.

I wonder what the underspend is for referendum year. I bet its horrible.

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