News alert / IFS reviews Scotland Budget

06 February 2024

The Institute for Fiscal Studies has published a report on the Scottish government's 2024/25 Budget, which will raise taxes on the 5% highest earners but decrease health funding in real terms. According to Budget figures, funding for the NHS recovery, health and social care portfolio is set to increase by less than average (1.3% in real terms), though this is affected by classification changes that mean some research and development funding previously classified as resource funding is now capital funding. Adjusting for this, the real-terms rise in funding in 2024/25 is set to be around twice as large (2.6%), says the IFS. However, the NHS budget received top-ups in 2023/24 totalling £605m. When accounting for these, even adjusting for the classification changes, health spending is set to fall by 0.7% in real terms between this year and next. 

Keywords
Allocations
UK nation
Scotland