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Further consequentials were announced as part of the UK spending review, but we will not have confirmation of that until supplementary estimates are given. The current position, as is outlined in the autumn budget revision document that has been provided to the committee, is that we have to take a balanced view on the question of that additional funding, because ultimately we will not have confirmation of whether we will receive it until later in the financial year, and that is because we do not have the Barnett guarantee that we had in the previous financial year. Therefore, we need to take a balanced and prudent approach to how that funding will be deployed.

Thank you very much, convener, and good morning. First, I must apologise for my delay and put on record my gratitude to the committee for being so accommodating.

The autumn budget revision provides the first of two opportunities to formally amend the 2021-22 Scottish budget, and it details the continuation of the Scottish Government’s financial response to Covid-19 alongside regular annual budget changes. The supporting document to the autumn budget revision and the brief guide that my officials have prepared provide background on the changes.

The changes that are detailed in the document are based on the funding that the Treasury confirmed to us following the United Kingdom Government’s main estimates earlier in the year. Further spending for 2021-22 that was included alongside the UK spending review figures has not yet been formally added to our block grant, and the financial position remains at risk of funding being withdrawn or changed later in the year. The UK Government has refused to continue the Barnett guarantee into this financial year.

I will set out the changes in the budget revision in four groups. The first set of changes increases the budget by £1,173.8 million and comprises the majority of the Covid-19 funding, which has been allocated over a number of lines as detailed in the brief guide.

The second set of changes comprises technical adjustments to the national health service and teachers’ pensions budgets. They are non-cash adjustments, but they add £267.2 million to the overall aggregate position. Thirdly, Whitehall transfers and allocations from Treasury have a net positive impact on the budget of £29.4 million, and the final part of the budget revision concerns the transfer of funds within and between portfolios to better align the budgets with profiled spend.

The ABR allocates more than £1 billion of Covid-19 and other funding changes, and it is being funded through £1 billion of Barnett consequentials and Scotland reserve drawdowns. I would highlight that £834 million is being allocated to health and social care through the ABR, with all of it directed at our continuing response to Covid-19, while a further £104 million is being allocated towards maintaining our critical transport networks.

Of the just over £300 million that remains of the total funding that we have received, £250 million is for capital and financial transactions. Although that funding is not formally allocated in the budget revision, it is being held against a variety of commitments that are embedded in our budget position, and funding to meet those commitments and pressures will be formally recognised in the spring budget revision.

As we move towards the financial year end, we will continue in line with our normal practice to monitor forecast outturn against budget and, wherever possible, seek to utilise any emerging underspends to ensure that we make optimum use of the resources available.

With that, convener, I conclude my remarks. I am happy to take any questions that the committee might have.

Certainly. That money is collected centrally and goes to UK Government consolidated funds. It is then distributed to devolved health authorities using the Barnett formula.

The autumn budget revision is retrospective. Clearly, there can be issues around when funds are drawn down, as and when required, but this is general funding to support our health service, as itemised in the supporting document that was provided. It is for the whole range of measures that are required to support the health service as we continue to face the challenges that Covid-19 presents.

That is an important question. I remind Mr Johnson of my earlier remarks. He has correctly identified a significant uplift in health funding, which has been confirmed by the ABR. An additional £300 million is being committed as part of the winter support package. We have a long-standing commitment to pass on every health consequential that we receive to support our NHS. That commitment is evidenced in the autumn budget revision process.

Yes. Additional consequentials were identified but, ultimately, what materialises will not be confirmed until later, so we cannot take it for granted that all that money will feed through in the end. That is why the Cabinet Secretary for Finance and the Economy and I have called, and continue to call, for the Barnett guarantee. It gives us certainty and allows us a more assured budget planning position.

I draw your attention to the fact that the autumn budget revision was published in late September, so it predates that announcement. The budget revision is retrospective in nature. As I mentioned in my answer to the convener, that £40 million was announced on 18 March and has been distributed. I reiterate that it is at the discretion of local authorities to spend that money as they see fit to meet their own needs and priorities.

Yes. It is revenue neutral.

Yes, that is correct. If I remember correctly, that money might have been transferred to the net zero, energy and transport portfolio to better align with our energy policies. Is that correct, Scott?

Yes, we clearly would. The Standards Commission for Scotland provides support and guidance as well. It will be for individual boards to respond to the model code, should the Parliament agree to it. They will go through a process and submit their revised codes to ministers for consideration. Ultimately, the ones that are best placed to interpret the model code as it is applicable to the organisation are the respective organisations themselves.