FINANCE Secretary Kate Forbes is due to set out her resource spending review, the first time the Scottish Government has published a multi-year programme since 2011.
It comes after the Institute for Fiscal Studies (IFS) warned that ministers face “tough decisions” over a projected budget gap of £3.5 billion in 2026/27.
The sum is the equivalent of 8% of the Scottish Government’s projected budget for day-to-day spending in that year – or £640 for every person in Scotland.
The IFS said a substantial budget gap is likely and choices will have to be made between “axing, taxing or hoping for extra funding”.
Forbes has acknowledged Scotland faces a “very difficult financial position” in the coming years and said the review will include “difficult decisions”.
She is due to update MSPs on Tuesday afternoon.
Resource spending is classed as money spent on administration and the day-to-day delivery of services, such as school meals, bus passes and most public sector staff salaries.
Speaking ahead of her statement to the Scottish Parliament, Forbes said: “The Resource Spending Review – which is not a Budget – will set out how we can best focus Scotland’s public finances in the coming years to tackle child poverty, address the climate crisis, strengthen our public sector as Scotland recovers from Covid, and grow a stronger, fairer and greener economy.
“We are living in unprecedented times when it is necessary to be canny with our spending, and the Scottish Government is no different.
“Within our resources and current powers, we have to make sure we are doing the best for households and businesses, in the midst of Covid recovery, a war which is affecting the global economy, and the cost-of-living crisis.
“This review gives broad parameters for spending over the next four years and sets out areas we want to engage with partners on to deliver the reforms necessary for Scotland to deal with the challenges ahead.
“While we face challenges, this does not mean we cannot achieve our ambitions of a fairer, greener and more prosperous society if we are prepared to make the difficult decisions now which will bring about the changes needed to achieve this.”
