Letter from the Cabinet Secretary for Finance and Economy of 23 July 2021
Dear Kenny
On 20 July 2021 I attended the Finance Ministers’ Quadrilateral by videoconference with the Chief Secretary to the Treasury, the Minister for Finance and Local Government from the Welsh Government and the Minister of Finance from the Northern Ireland Executive. I can now update the Committee on the key points of this meeting, in line with the reporting arrangements set out in the Written Agreement on Inter-Governmental Relations between the Scottish Parliament and the Scottish Government.
The agenda items for the meeting were:
The meeting began with the Devolved Administrations seeking commitment from the UK Government to more regular meetings, in person where possible. The UK Government have agreed to review and coordinate.
We discussed plans to support recovery from Covid. The Devolved Administrations were keen for funding certainty and flexibility and continued to press the UK Government for the Barnett guarantee to be implemented for the current financial year, more support for businesses and the continuation of the job retention scheme and universal credit uplift.
On economic growth and the levelling up agenda, the UK Government confirmed that they will work with the Devolved Administrations collaboratively on the UK Infrastructure Bank and more detail will follow soon on the UK Shared Prosperity Fund. The Devolved Administrations reiterated that EU funding hasn’t been replaced in full, particularly rural and fisheries funding, and the use of the Internal Market Act in relation to areas of devolved spending is unacceptable.
We also discussed the importance of agreeing the Finance Interministerial Standing Committee Terms of Reference and the upcoming UK Government Spending Review. Whilst little could be shared regarding the timing of the Spending Review, the Devolved Administrations emphasised the need for a multi-year Spending Review and early engagement on the operation and potential outputs of the review.
I hope that the Committee finds this update helpful.
Yours sincerely,
KATE FORBES