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Extra £1.9bn funding for Scotland's Covid response

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Steve BarclayImage source, PA Media
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The announcement was made ahead of Steve Barclay's visit to Edinburgh

The Scottish government will receive £1.9bn of extra funding to deal with coronavirus, the UK government has said.

The devolved administrations will receive an additional guarantee of £3.7bn this year.

The figure includes £1.2bn for Wales and £0.6bn for Northern Ireland.

The Scottish government said the UK government announcement amounted to about £800m of new funding for Scotland.

It said a further £1.1bn was a reflection of the Scottish government's share of PPE procurement and funding to prepare the NHS for winter which had previously been announced by the UK government.

Chief Secretary to the Treasury Stephen Barclay said the funding will help provide for future coronavirus response planning.

He made the announcement ahead of a visit to Edinburgh.

The Treasury said the guaranteed funding takes the total given to the devolved administrations to at least £12.7bn for 2020/21 to support coronavirus recovery.

Securing the UK's economic recovery

Speaking ahead his visit, Mr Barclay said: "At the start of the coronavirus pandemic, we said we would do everything we could to support the whole of the UK, whether that's saving jobs or ensuring our vital NHS has the equipment it needs.

"And that is exactly what we have done.

"Today we go one step further by giving the devolved administrations in Scotland, Wales and Northern Ireland the additional certainty they need to plan their own support schemes over the next few months.

"This is yet another sign of our support for the union and commitment to securing an economic recovery for the whole of the United Kingdom."

Image source, PA Media
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Kate Forbes wants an urgent decision on new financial powers for Scotland

Scotland's Finance Secretary Kate Forbes will use a meeting with Mr Barclay and her counterparts in Wales and Northern Ireland to call for an urgent decision on new financial powers for Scotland.

Ms Forbes said: "We welcome the increased funding package provided by the UK government while recognising that, unlike the Scottish government, they have access to the borrowing powers that are required to respond to a crisis like coronavirus.

"This will provide vital support in order to combat the impact of Covid-19 on Scotland. However, we still need urgent agreement on fiscal flexibilities in order to provide further much needed funding to support the dual economic impact of Covid and the end of the EU transition period."

The Scottish government wants the ability to borrow up to £500m, with repayment periods extended to a maximum of 10 years from five years.

It has also requested powers to reallocate capital underspend on day-to-day spending and more flexibility on drawing down reserve money with the limit increased to £220m.

Due to increased spending to tackle Covid-19, the Scottish government's overall budget for the 2020-21 financial year stands at more than £52bn, up from an earlier estimate of £49.25bn.