Holyrood committee seeks clarity on how Covid recovery strategy will be funded

The Scottish Government has been urged to clarify whether budget pressures will affect the funding of Scotland’s Covid recovery strategy.

Inflationary pressures caused by the cost crisis has seen the budget fall by £1.7 billion compared to what it was previously worth in December 2021.

The Government’s resource spending review outlined earlier this year said difficult decisions were ahead.

Following pre-budget scrutiny, Holyrood’s Covid-19 Recovery Committee has written to Covid Recovery Secretary John Swinney to ask how the ongoing costs associated with the pandemic will be funded.

The letter expresses concern that there is no specific budget line for Covid recovery.

Mr Swinney is asked to clarify “whether budgetary and inflationary pressures have impacted on [the Scottish Government’s] priorities and ability to deliver the outcomes as set out in the Covid recovery strategy”.

The impact of the cost crisis was highlighted during the committee’s evidence sessions, including concerns from witnesses over how this could affect funding and delivery of the recovery strategy, with some saying the crisis will pose more significant challenges for service providers than even faced during the height of the pandemic.

The Covid recovery strategy was published in October 2021 – before the scale of the emerging cost crisis was apparent – and sets outs the Government’s vision for recovery, focusing on efforts to tackle inequality arising from the pandemic.

Siobhan Brown MSP, committee convener, said: “During our pre-budget scrutiny, we heard that the Scottish Government’s budget is approximately £1.7 billion less than it was worth in December 2021 due to inflationary pressures.

“The committee, therefore, are seeking clarity on how this will impact the Scottish Government’s priorities and ability to deliver the outcomes as set out in the Covid recovery strategy and whether it intends to refresh the strategy to reflect any policy changes in light of the cost-of-living crisis.

“As the budget doesn’t commit to specific spending on Covid-19 or Covid recovery, it’s important that there is greater clarity provided on how much funding the Scottish Government intends to commit to achieving the outcomes identified in its Covid recovery strategy within the upcoming budget.”

The committee’s pre-budget scrutiny included evidence gathered on costs associated with future pandemic preparedness, vaccinations, testing and surveillance, and personal protective equipment.

A Scottish Government spokesperson said: “We are intent on ensuring the strongest possible sustained recovery from the effects of the pandemic, which continue to impact individuals, businesses and public services.

“We are using our current financial powers to the maximum to achieve that and to mitigate the impact of the current cost crisis.

“However, it is essential that the UK Government, which continues to hold many of the economic policy levers needed to address these issues, does not seek to impose cuts to public services and unleash a renewed wave of austerity, which would be utterly counterproductive and risk hampering the long-term recovery from the Covid-19 crisis.”