The Scottish Parliament’s Finance and Public Administration Committee is not convinced the Scottish Government is carrying out enough long-term financial planning to ensure Scotland’s fiscal sustainability.
On the Scottish Government’s public service reform programme, the committee says it has no overall strategic purpose with limited oversight and direction from government.
Finance and Public Administration Committee Convener Kenneth Gibson MSP said: “As the Scottish Budget approaches, we’ve seen little evidence to suggest a shift away from the Scottish Government’s short-term approach towards financial planning; an approach hampered by reliance on one year UK financial settlements.
“We therefore strongly recommend that the Scottish Government produces a full response to the Scottish Fiscal Commission’s sustainability report, setting out the actions it will take to address the longer-term challenges ahead.
“We are also concerned that the UK Government’s decision not to inflation proof capital funding available to Scottish Ministers will mean a 16% reduction in 2028-29 compared to this financial year, at a time when governments need to invest in infrastructure to stimulate economic growth.
“The creation of a Scottish Government advisory group on taxation is welcome. Given the financial challenges ahead, it is imperative that their work to create a clear taxation strategy for Scotland proceeds at pace.”
On the government’s public service reform programme, Mr Gibson said: “We are concerned that the focus of the government’s reform programme has changed multiple times since May 2022, as have the timescales for publishing further detail on what it will entail.
“Given the financial challenges facing the Scottish Budget, this represents a missed opportunity to be further along the path to delivering more effective and sustainable public services.
“The recommendations in our report aim to bring much-needed impetus, focus and direction to the Scottish Government’s reform programme.”
Read the full report:
Pre-Budget 2024-25 Report on the Sustainability of Scotland’s Finances
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