Scottish ministers face budget challenge over UK March date

The Scottish budget process for the coming financial year has been thrown into uncertainty by the announcement that the UK budget statement will not be made until 11 March.

That is also the date by which Scottish local authorities must set their budgets for 2020-21, which depend on their funding from central government – but Scottish ministers normally have final details of UK spending plans before they set their own budget.

Before 1 April the Scottish Parliament also has to pass a resolution confirming the rates and bands of income tax for the year from 6 April, or the devolved income tax system ceases to apply.

The UK budget statement was originally scheduled for 12 December, but was postponed when the general election was called for that date.

Derek Mackay, Cabinet Secretary for Finance, accused the UK Government of being "really disrespectful" to Holyrood, and the Convention of Scottish Local Authorities has written to Chancellor Sajid Javid to warn of "catastrophic risks" to local services if budgets cannot be passed.

However the UK Treasury said there was nothing to stop the Scottish Parliament from passing its budget before the UK budget, and it was "working with the Scottish Government as part of an agreed process to provide the information they need to prepare their budget". Mr Mackay denied that he had yet been given and real information.

Each Holyrood committee normally examines the Scottish Government's spending plans relating to its particular remit, and some political negotiation usually takes place before the Budget Bill is passed, where the Scottish Government does not have a majority, but this year's process will have to be carried out within a very short time frame, and subject to the risk of unexpected changes of plan at Westminster.

Discussions are likely between the parties at Holyrood as to how to proceed.