Audit Scotland warning on long-term covid costs

Scotland spent an estimated £8.6bn on Covid-19 support and grants in 2020/21 in response to the pandemic but needs to manage finances carefully going forward

The largest area of Covid-19 spending was on business support, which received nearly £3.8bn. The largest funding measures were for business support grants (£1.2 bn) and non-domestic rates relief (£972m).

The second largest area of spending was health and social care, which received over £2.9bn for Covid-19. UK government covered the costs for furloughing staff through the Coronavirus Job Retention Scheme, which is due to end later this month.

Local government was the third largest area of spend, receiving £1.2bn. This included £524m in additional Covid-19 funding to support councils and compensate for lost income, and £155m to cover funding pressures within local government. In addition, local authorities were also responsible for managing and distributing some business grants and other funds.

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