The headline £2 billion ‘extra spending’ figure for Scotland has much less to it than meets the eye.
Firstly, it is spread over this and next three years. Secondly, and more importantly, more than half of the headline £2 billion (£1.1 billion) is in the form of Financial Transactions. That’s money that can only be used for limited purposes and must be repaid by the Scottish Government.
Taking account of today’s announced changes, the 2018-19 Scottish Government revenue budget is still facing a real terms cut of over £200 million - imposed by the UK government.
And the Chancellor’s announcement of an extra £350 million for the NHS in England this year translates into net increase in the Scottish Government budget of just £8 million!
There is not an extra penny, or any real commitment, from UK government on lifting public sector pay cap. The Scottish Government will lift the cap.
The announcement on oil and gas very welcome, if overdue. As is the announcement on police and fire VAT - though no backdating disappointing and unfair to emergency services.
There is lots more to mull over but early indications are of more smoke and mirrors than substance.