Scottish Government financing to be examined as part of inquiry by MPs

MPs have launched an inquiry into the financing of the Scottish Government.

The Scottish Affairs Committee will examine how the UK Government funds Holyrood.

The cross-party group will explore the Barnett formula, which determines the funding for devolved services based on what the UK Government spends elsewhere in the UK, examining whether it is fit for purpose or should be reformed.

The committee will not examine budget decisions made by the Scottish Government.

MPs will also look at the impact the UK Government’s in-year changes to the Budget have on Holyrood’s block grant.

The Scottish Affairs Committee will look at the ability of the Scottish Government to borrow money and what steps Westminster could take to offer Holyrood more financial certainty.

The SNP has repeatedly called on the UK Government to devolve more powers to Scotland, including on tax and welfare.

The committee said it will discuss the overall effectiveness of the UK’s financing of the Scottish Government.

Members of the public are encouraged to share their views with the committee on the inquiry’s website.

Patricia Ferguson, chairwoman of the committee, said: “The committee’s inquiry is a timely opportunity to examine the current funding model for the Scottish Government and wider model of fiscal devolution.

“Our inquiry will explore how Scotland’s funding arrangements, particularly the Barnett formula, came to be, and how it determines the level of funding made available to the Scottish Government.

“As part of this, we’ll also look closely at the current fiscal framework.”