THE Scottish Government fears its funding is effectively being cut as a result of spending commitments made in the Budget this week, The National has learned.
Because of decisions made by Chancellor Jeremy Hunt, the Scottish Government is set to receive around £295 million in Barnett consequentials.
But this is significantly less than what was awarded in the financial year 2022-23, despite Scottish ministers' assumptions the money awarded then would have formed a baseline for future sums.
Previously, the Scottish Government said it had been given £470 million as a result in health spending in England. This number has now fallen to £237m in Barnett consequentials generated by the Spring Budget.
A Scottish Government source told The National that Edinburgh had been operating on the assumption future cash would have come on top of a new £470m baseline which was higher because it was covering pay deals for doctors and nurses.
The insider said they were “shocked” this was not the case and added it could become politically significant should health workers’ unions apply more pressure on the Government to increase wages later in the year.
READ MORE: Scottish Government reacts to 'betrayal' Budget as new Tory cuts expected
They said: “Ordinarily we'd expect consequentials related to things like pay to be baselined. But they haven't been. They've effectively cut the consequentials in half.”
A Scottish Government spokespersons said: “Health consequentials of £237m are less than the £470m in-year health funding received for 2023-24 – and less than is needed given the pressures we face.
“We are considering the outcome of the UK Budget and what it means for NHS Scotland.”
A Treasury spokesperson said: “As a result of decisions taken at Spring Budget, we are providing the Scottish Government with around £295m of new funding next year.
“This is on top of the record £41 billion per year settlement it received at Spending Review 2021 – the largest in the history of devolution – which means it is well-funded to deliver high-quality public services for the people of Scotland.”
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