Tag: Accounts Commission

Covid business support: Missing millions?

A detailed analysis of how Covid-19 business support funding was distributed during the pandemic is not possible due to gaps in data, according to spending watchdog Audit Scotland.

The Scottish Government provided about £4.4 billion of grants and non-domestic rate reliefs between March 2020 and October 2021, mostly paid out to businesses by councils. The government announced a further £375 million of support in December 2021 following the emergence of the Omicron variant.

Steps were taken to improve the management of funding during the pandemic.

But there was not enough focus on gathering detailed data on how money was distributed and how quickly applicants received funding.

This means:

  • The Scottish Government does not have an analysis of the total amounts paid out from the more general schemes to different economic sectors
  • For sector specific funding administered by national organisations such as Scottish Enterprise, around 20 per cent of payments cannot currently be matched to council areas
  • Similarly, information to enable wider analysis of how funding supported specific groups, such as the female owned businesses disproportionately hit by Covid-19, is not available from Scottish Government centrally held data.

 In late 2021, the Scottish Government completed retrospective impact assessments to consider how business support funding addressed inequalities. A retrospective fraud review of funding that councils administered was also carried out.

The government is currently undertaking a large data cleansing exercise to ensure that the datasets for individual funds, including those administered by councils, are complete.

Stephen Boyle, Auditor General for Scotland, said: “These business support schemes were administered at pace in exceptional circumstances. But knowing where the money went matters.

“To get future policy development and delivery right, it will be important for the Scottish Government to fully understand how funding was used to support specific businesses and groups over the last two years of the pandemic.”

William Moyes, Chair of the Accounts Commission, said: “Councils’ fraud arrangements are generally robust, but they were heavily relied upon to ensure businesses were eligible for funding during the pandemic.

“Councils will need to continue to work closely with the Scottish Government to ensure a better picture emerges of how money was distributed.”

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Responding to the Audit Scotland report, Economy Secretary Kate Forbes said: “I am pleased that both Audit Scotland and the Accounts Commission have recognised how quickly the Scottish Government was able to establish a wide ranging business support package in order to help safeguard thousands of businesses and jobs.

“This includes providing direct support to over 4,000 businesses and over 5,000 self-employed people who were facing hardship but ineligible for UK Government funding support.

“I am equally pleased this report reflects the unique and challenging context in which new support packages had to be established, and that despite the speed and scale of our response, we were able to work closely with industry, our enterprise agencies and local authorities.

“This helped to ensure the delivery of the business support funding was a shared endeavour and minimised risk and fraud. Without the efforts of our partners, we wouldn’t have been able to deliver this lifeline support at the scale and pace necessary and I thank them for working so closely with us.

“Every decision the Scottish Government has taken has centred around ensuring businesses got the support they needed when they needed it – resulting in over £4.5 billion being allocated to businesses across the country, including around £1.6 billion in rates relief – which is more generous than the other UK administrations so far.

“We will now carefully consider the findings of this report and of course any lessons will be learned, but fundamentally this report shows the decisions we took ensured lifeline support reached key businesses promptly and our economy continued to grow by 7.1% despite the necessary public health restrictions.”

Overarching drug and alcohol plan needed, says spending watchdog

Drug and alcohol services in Scotland are complex and a clear plan is needed to improve people’s lives and increase transparency around spending, says public spending watchdog Audit Scotland.

Drug-related deaths have been rising steeply since 2013. A record 1,339 people lost their lives to drugs in 2020 – the highest rate in Europe. Alcohol deaths have been decreasing since the early 2000s, but rose by 16 per cent in 2020, when there were 1,190 deaths. 

Alcohol and drug partnerships (ADPs) are charged with helping people at the local level. But how services are delivered remains complicated and lines of accountability are not always clear.

Overall funding for ADPs fell over the last few years before returning to 2015 levels by April 2021, but with no real terms increase. The Scottish Government has also provided additional investment for new initiatives, including a drug deaths taskforce and new evidence-based treatments and standards. But it is too early to gauge their effectiveness.  

Spending remains difficult to track, including how money is distributed and what it is achieving. For example, in September 2021 the Scottish Government committed to invest £250m to reduce drug deaths – £50m for the next five years.

But details of how much of the £50m will be spent on each local area, or how the funding will be distributed, have not been published. More widely, data gaps around drug and alcohol referrals, waiting times and outcomes persist. And there is a considerable time lag in public reporting.

Stephen Boyle, Auditor General for Scotland, said: “We’ve recently seen more drive and leadership around drug and alcohol misuse from the Scottish Government. But it’s still hard to see what impact policy is having on people living in the most deprived areas, where long-standing inequalities remain.

“Drug and alcohol data is not good enough, and there is a lack of transparency about how money is being spent and allocated. The Scottish Government needs to set out an integrated plan, with clear measures showing how extra spending is being used to reduce the tragic loss of life we’ve seen over the last decade.”

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William Moyes, Chair of the Accounts Commission, said: “Delivery of drug and alcohol services in Scotland is complex and difficult to navigate, with many organisations working across different sectors. What we need to see now is clearer accountability across all partners.

“In the longer term, more focus is needed on the root causes of drug and alcohol dependency and breaking the cycle of harm stretching down generations and across communities.”

Urgent action needed to address critical issues in delivery of social care

Action is needed now to change how Scotland’s social care services are delivered so that it meets the needs, and improves the experience of, people relying on care and support, say Scotland’s spending watchdogs.    

The joint briefing by the Accounts Commission and the Auditor General for Scotland says fundamental issues and threats to the future sustainability of Scotland’s social care system need to be addressed. The pandemic has exacerbated long-standing challenges, highlighting the precarious situation of many vulnerable people who rely on social care or support.  

Over £5 billion a year is spent on delivering social care services, yet some services are at near crisis point. There needs to be a shift in how this money is used, with a far greater emphasis needed on preventative care that meets the needs of individual people. Service users do not always have a choice or say about what support works best for them. Nor are carers getting all the support and advice they need, despite existing legislation.  

Now the Scottish Government, together with its partners, must listen and bring together the views and experiences of service users and carers. This will support the delivery of their long-held ambitions for social care. 

The 200,000-strong workforce is under immense pressure and feels undervalued. There is a high vacancy rate and a continuing problem of recruiting and retaining this workforce into roles which often have low pay and poor conditions of employment. At the same time demand for social care services continues to increase. 

Commissioning social care services tends to focus on cost, rather than quality or outcomes. Worrying limitations in social care data has created major gaps in the information needed to inform improvements.  

William Moyes, Chair of the Accounts Commission, said: “There are significant problems with the delivery of social care services. These services are vital, yet we have a workforce that’s not adequately valued or regarded.

“Staffing shortages are a major issue across the sector and not all people’s needs are being met. Too often a focus on costs comes at the expense of delivering high quality services that aren’t at the heart of the needs of individuals. The additional funding to achieve this will be significant. Not taking action now presents a serious risk to the delivery of care services for the people who depend on them.

Stephen Boyle, Auditor General for Scotland, said: “We cannot wait another five years until the planned National Care Service is in place. Action must happen now, and at speed, by the Scottish Government.

“There must be clear timescales for delivery, demonstrating that lessons have been learnt from previous reforms of health and social care services. This will create a strong foundation for the government’s vision to create a National Care Service.”

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COSLA’s Health and Social Care Spokesperson, Councillor Stuart Currie, responded to the Audit Scotland report on social care: ‘The Audit Scotland report sets out many of the challenges that Local Government has consistently highlighted for many years now.

“There is an urgent need to address these challenges – many of which have been exacerbated by the pandemic – by working with our partners across Scottish Government, in the third and independent sector, and most importantly, people with lived experience.  

“We agree with Audit Scotland  that Social Care reform cannot wait for a National Care Service to be implemented. Local authorities are central to delivering the right care at the right time in the right place.

“Local Government recognises that we cannot stand still if we want to create meaningful change for our communities. We continue to work with Scottish Government to progress our shared commitments outlined in our Joint Statement of Intent so that we can now begin to implement much of the reform that was called for in the Independent Review of Adult Social Care.

“Fundamental to these shared commitments is a recognition that through empowering people, valuing our workforce and embedding a human rights-based approach in social care, we can begin to deliver real solutions for our local communities, unpaid carers, and our workforce.”

‘The stark reality is that some council services won’t restart’

Accounts Commission: Councils and communities worked well together but impacts of Covid are unequal

Scotland’s councils reacted quickly, working alongside communities and partners to address the unprecedented challenges created by Covid-19, says a new report from the Accounts Commission. Many challenges remain significant, however, made more urgent by the multiple impacts of Covid-19 on communities and services.

Councils have a critical role in providing vital services which communities depend on. In its Local Government Overview 2021 report, the Accounts Commission, who report to the public on the performance of local government, make clear that councils, alongside their partners, quickly provided innovative and sustained support to vulnerable people.

This included supporting those who were shielding or self-isolating, switching to delivering services digitally and managing significant funding to support local businesses. 

With many council services disrupted, stopped or reduced, in particular education, social care and culture and leisure, the impact on some service users was severe and unequal. This included carers who lacked access to respite care, people with learning disabilities who were unable to access critical services and support, those receiving care at home and school children whose education was disrupted.

Covid-19 has also exacerbated and laid bare fundamental issues that need to be addressed to ensure services are maintained and that councils can tackle the multiple challenges ahead.

To help achieve this, longer-term financial certainty for councils will be vital. Whilst the Scottish Government has provided significant financial support to councils to assist in managing the net cost of Covid-19 in 2020/21, considerable amounts of funding took the form of one-off payments.

Furthermore, funding for councils beyond 2021/22 remains uncertain. Addressing this issue is vital.

Elma Murray, Interim Chair of the Accounts Commission, says: “Councils, communities and their partners have worked incredibly hard to continue to deliver vital services to local people. The stark reality is that some council services won’t restart, and some services will have to be delivered differently. 

“Underpinning this is the increasingly urgent need to address inequalities throughout Scotland’s communities. And for councils this is made more challenging because they continue to operate in a climate of significant financial uncertainty, which must now be addressed.”

Education attainment gap remains wide, says Audit Scotland

Progress on closing the poverty-related attainment gap between the most and least deprived school pupils has been limited. And more evidence is needed to understand educational achievement beyond exams.

A joint report by the Auditor General for Scotland and the Accounts Commission found that exam performance and other attainment measures at the national level have improved.

However, progress since 2013-14 has been inconsistent. And there are large variations in local authority performance, with some councils’ performance getting worse on some measures.

The poverty-related attainment gap remains wide and existing inequalities have been exacerbated by the Covid-19 pandemic. The national curriculum recognises that school is about more than exams.

And there has been an increase in the types of pathways, awards and qualifications available to young people. But better data is needed to understand if other important broad outcomes, like wellbeing and self-confidence, are improving.

The Scottish Government, councils, schools and the other bodies responsible for planning and delivering education were working well together before Covid-19.

That allowed them to respond rapidly in exceptionally difficult circumstances. Funding for education has remained largely static – rising from £4.1 billion in 2013/14 to £4.3 billion in 2018/19.

However, most of that real-terms increase was due to the Attainment Scotland Fund, which the Scottish Government set up to close the attainment gap.

Stephen Boyle, Auditor General for Scotland, said: “Significantly reducing the attainment gap is complex. But the pace of improvement has to increase as part of the Scottish Government’s Covid-19 recovery planning.

“That process needs to particularly focus on the pandemic’s impact on the most disadvantaged children and young people.”

Elma Murray, Interim Chair of the Accounts Commission, said: “There is variation in educational performance across Scotland, but this is not solely about exam performance.

“Education also supports and improves the health and wellbeing of children and young people, which has been impacted by the Covid-19 pandemic.

“It is vital that councils, schools and their partners work to reduce the wide variation in outcomes as well as understanding and tackling the short and longer-term impact of Covid-19 on learning and wellbeing.”

EIS General Secretary Larry Flanagan said: “The impact of poverty on children’s life chances remains a matter of huge concern, and much more needs to be done to support young people living in poverty to overcome the barriers that they continue to face.

“Schools do all that they can with insufficient resources to support young people from all backgrounds but cannot, in isolation, overcome such serious societal issues as inequality and poverty.”

“We have long known of the devastating impact that poverty can have on young people, and this has been made worse during the pandemic when young people from less affluent backgrounds have been far more likely to have had their in-school learning disrupted and to face barriers in accessing education outwith the school environment.”

“It is clear that much greater and sustained investment is needed to tackle the impact of poverty on young people’s education, and all of Scotland’s political parties must fully commit to tackling this issue in the context of education recovery during the next Parliament.”

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City Council ‘must do better’

Over the last four years many services provided by the City of Edinburgh Council have improved, its finances have been well-managed and ambitious strategies to improve the lives of local people and the economy have been agreed.

In a report published today the Accounts Commission says, however, that since 2016 there has been mixed progress at a strategic level, across community engagement and continuous improvement.

The council must now put in place a long-term financial strategy and a more effective workforce plan.

Both are essential for the council to address the additional pressures the impact of Covid-19 has placed on the council, and support how it will fund and manage its vision for the future. Strong leadership and clear, collaborative working with local partners are vital to realise these ambitions.

Across Scotland, Covid-19 has exacerbated existing inequalities, an issue of significant concern to the Accounts Commission.

Whilst Edinburgh is, overall, a prosperous city, the Commission urge the council to continue to lead and progress its commitment to reducing poverty and inequality across the city.

The council should also do more to embed community empowerment throughout the council’s culture, enabling local people to improve public services and their communities.

Elma Murray, Interim Chair of the Accounts Commission said, “The City of Edinburgh Council can do more to maximise its potential to improve the city and the lives of local people.

“Whilst the ambition of the council and its partners is impressive, the detail of how it will deliver, monitor and report on its key strategic goals must be in one accessible and coherent plan. It is the responsibility of all local councillors, working together, to ensure the city and its services continue to improve.

“It is important for the council to focus on continuous improvement and the creation of long-term financial and workforce plans. I expect the council to act swiftly on our report. Doing so will support the council’s ambitions to improve the lives of its residents.”

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Responding to the report, Council Leader Adam McVey said: “We welcome the Accounts Commission’s constructive feedback in response to the Best Value Assurance Report carried out by the Controller of Audit and we are pleased to note their positive comments about the levels of ambition we have shown in addressing our key priorities of poverty, sustainability and wellbeing.

“The Controller of Audit acknowledged the improving picture of our core services, while our bold strategies to put people at the heart of how we design public space, our proven ability to take difficult decisions like taking trams to Newhaven, and extensive consultations with residents and stakeholders to put communities at the heart of our decision-making are all cited as strengths.

“Of course, we’re always striving to improve wherever we can so that we deliver the best possible services and achieve what we’ve set out to achieve on behalf of the people of Edinburgh. We are now carefully reviewing the full report and will work hard to address areas in need of our attention going forward.”

Depute Leader, Labour’s Cammy Day said: “The Council delivers more than 700 services for Scotland’s Capital, from care for the most vulnerable in our communities and maintaining several hundred miles of roads and pavements to educating our children and putting roofs over people’s heads, and much more besides.

“Our frontline colleagues continue to pull out all the stops to keep vital services going during hugely challenging circumstances right now and I want to thank each and every one of them for their hard work and dedication. 

“These are especially testing times for all local authorities given the ongoing global pandemic and straitened public finances so it’s vital we are equipped with as much information as possible when making decisions affecting our communities.

“What we’re doing now is reviewing the Best Value Assurance report and the Accounts Commission’s findings in full with elected members. We’ll then draw up our detailed response setting out how we plan to use the findings in the best interests of the whole city.”

The Best Value Assurance Audit report and Accounts Commission findings will be considered and scrutinised by the Policy and Sustainability Committee on 1 December, by the Governance, Risk and Best Value Committee on 8 December and by Full Council on 10 December. 

Childcare expansion plans on track, says Government

The expansion of funded early learning and childcare (ELC) in Scotland is on course to be delivered from August 2020, says Children’s Minister Maree Todd – but public watchdogs have concerns over the tight timescale. 

Backed by an unprecedented £2 billion investment, by the end of the expansion more than 900 nurseries will have been built, extended or refurbished since 2018. Meanwhile, 4,310 additional full-time equivalent staff have also been recruited, resulting in a record 40,000-strong workforce.

From August, all three and four-year-olds and around a quarter of two-year-olds, will be entitled to 1,140 hours a year – almost double the current entitlement of 600 hours.

In response to Audit Scotland report on early learning expansion, Children’s Minister Maree Todd said: “We are on course to deliver the most generous, high quality early learning and childcare offer in the UK, which can transform the lives of children.

“I’ve seen and heard of the way children’s confidence and communication skills have been boosted by the care and learning they’ve received, while they’re also getting access to opportunities such as outdoor learning.

“Through our strong partnership working with local government, so much has already been achieved. There are already thousands of additional staff in post, and councils will continue to grow their teams over the coming months.

“We have also been delivering a large-scale infrastructure programme to provide high quality settings. Hundreds of nurseries have been built or refurbished, with work continuing across the country.

“We are committed to delivering the roll-out from August and councils have contingency plans in place for all critical projects due to complete this summer, so we can be confident that the places will be there to deliver the expansion for Scotland’s children. The expansion also opens up more opportunities for playgroups, private and third sector nurseries, and childminders to be involved in delivering funded hours.

“The quality of ELC provided is absolutely key. That is why we are investing in the workforce and developing improved learning opportunities for them to increase their skills and share best practice.

“With a passionate and dedicated workforce across all parts of the sector, and fantastic places for children to learn and play in a nurturing environment, there has never been a more exciting time for our childcare sector.”

However while plans to boost early learning and childcare (ELC) hours have made steady progress, risks around buildings and staffing remain, say public sector watchdogs.

The watchdog says the Scottish Government and councils are working well together to increase ELC hours from 600 to 1,140 a year from August and the pace of the expansion is broadly in line with plans.

But around half of the building work required is due to be completed over the summer, and about half of the additional ELC staff still need to be recruited. Private and third sector providers – which are expected to deliver over a quarter of the hours – also continue to report significant workforce challenges that threaten their sustainability.

The Scottish Government’s evaluation plans for the expansion are well advanced but challenges remain. For example, it is not clear how the longer-term economic benefits of the policy, or its impact on family wellbeing, will be measured.

Caroline Gardner, Auditor General for Scotland, said: “The Scottish Government and councils have worked well together to increase early learning and childcare hours, and we’ve also seen improvements in how the project will be evaluated.

“But the timeline remains tight and there are big risks around infrastructure and workforce.”

Graham Sharp, Chair of the Accounts Commission said: “Given the amount of work due to be completed over summer 2020, it’s important that councils continue to work closely with the Scottish Government to manage the risks of any delays, including how best to keep parents informed.”

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Skint! Council finances ‘unsustainable’

Most of Scotland’s 32 councils are increasingly relying on money from reserves to keep up with demand for services and balance their budgets. A report from the Accounts Commission, Scotland’s national watchdog for local government, says the financial pressures are likely to get worse. Continue reading Skint! Council finances ‘unsustainable’

Decisive leadership needed as council savings “increasingly critical”

Finding savings is now “increasingly critical” for councils dealing with ongoing reductions in funding, says the Accounts Commission in a report published today. Continue reading Decisive leadership needed as council savings “increasingly critical”

Lessons must be learned following school wall collapse, says new report

Councils must learn lessons to maintain the safety of public buildings following Edinburgh school wall collapse. In a report out today, the Accounts Commission highlights important lessons for all councils following the collapse of a wall at Oxgangs Primary School in 2016. Continue reading Lessons must be learned following school wall collapse, says new report