Meeting of the Parliament 19 January 2022
I will give way to Mr Briggs in a moment.
In the context of a 5.2 per cent real-terms reduction in the overall budget, the local government settlement has increased by 5.1 per cent, again in real terms. The growth in the overall settlement was acknowledged by the COSLA resource spokesperson in evidence to the Local Government, Housing and Planning Committee last week.
Having taken the decision to pass on all front-line health and care consequentials in full, we protected local government by providing a flat-cash core budget, alongside a further £1.4 billion, which is transferred from other portfolios, for joint priorities. By definition, a flat-cash core allocation does not take account of inflation. The Cabinet Secretary for Finance and the Economy has acknowledged that we cannot inflation proof any part of the Scottish Government budget, such is the nature of inflation right now. We do not underestimate the challenges that the allocation presents, but it is simply not possible to inflation proof all budget lines when the overall budget is not inflation proofed.