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Draft Scottish Budget 2023-24 published

  • Area of Work: The ALLIANCE
  • Type: News Item
  • Published: 16th December 2022
Houses and people within a circle

Stated intentions to invest further in health and social care in the 2023-24 budget are welcome, but third sector funding remains a concern.

The Scottish Government yesterday (15 December) published their draft budget for the financial year 2023-24 (this link will take you away from our website). In his budget statement to the Scottish Parliament, Deputy First Minister John Swinney noted the significant pressure on public finances arising from increasing energy costs and high inflation.

The Deputy First Minister confirmed that devolved social security payments, which include the Young Carer Grant, Funeral Support Payment, and the Child and Adult Disability Payments, will rise by 10.1% in line with the rate of inflation recorded in September. In addition, the Scottish Government aim to invest further in health and social care, stating that their spending plans amount to an additional expenditure of £1 billion compared to the previous year. Increased spending has been underpinned by changes to taxation, in particular income tax, with rates for the highest earners increased and thresholds frozen or reduced.

In our pre-budget briefing, the ALLIANCE had called for an inflationary uplift to social security payments, investment in health and social care, and for the Scottish Government to consider how best to use revenue-raising powers to fund public services, and we welcome the measures proposed in these areas. However the briefing also called for stability in funding for the third sector, and questions remain as to the level and sustainability of support at a time of significant cost pressures.

The third sector plays an essential role both in providing valuable services to people in a range of circumstances, including disabled people, people living with long term conditions and unpaid carers, and in employing an estimated 135,000 workers (2021, this link will take you away from our website.) Stability of funding is essential to ensuring that the valuable work of the sector can continue through the cost of living crisis.

You can find out more information about the budget from the Scottish Government (this link will take you away from our website.)

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