Tag: Finance and Public Administration Committee

“Deep concern” over the Scottish Government’s strategic approach to public finances

The Scottish Parliament’s Finance and Public Administration Committee says it is “deeply concerned” about the Scottish Government’s strategic approach to public finances.

In its pre-budget scrutiny report published today, the committee says there is “little evidence” that medium and long-term financial planning is taking place.

While some of the report’s conclusions are critical, the committee welcomes recent progress on the Scottish Government’s public service reform programme, saying it is encouraged by the focus on preventative and early intervention approaches.

The committee also welcomes the Finance Secretary’s commitment to consider what more can be done to support research and development within Scotland’s universities, with a view to boosting innovation and economic growth.

Finance and Public Administration Committee Convener Kenneth Gibson MSP said: “Our committee is deeply concerned about the Scottish Government’s lack of strategic approach to managing Scotland’s public finances.

“There is little evidence of medium and long-term financial planning. Year-on-year budgeting has become increasingly challenging, with significant emergency controls being required in each of the last three years.

“We recognise devolved governments have fewer flexibilities to deal with ‘shocks’. However, many issues impacting the 2024-25 Budget – such as higher than anticipated pay settlements and increasing social security payments – could have been foreseen and mitigated when the Budget was set, last December.

“At the very least, scenario plans could have been put in place to allow spending commitments to be ‘flexed’ to adapt to fiscal strain.

“We also believe that if key strategy documents looking beyond the year – such as the Medium-Term Financial Strategy, Infrastructure Investment Plan pipeline reset, Tax Strategy, and multi-year plans – had been published when originally committed to, they would have ensured the Scottish Government was considering the medium to longer term approach as part of its budget planning.

“Repeated delays to key financial strategies have led to a perception of the government being in a state of indecision.

“Taken as a package, the recommendations in our report are designed to support the Scottish Government in achieving a much more strategic and coherent approach to managing Scotland’s finances. We urge the government to adopt these in full, placing our finances on a much more stable and sustainable footing.”

On public service reform, Mr Gibson added: “Our committee is encouraged by the focus on preventative and early intervention approaches within the Scottish Government’s public service reform programme.

“We ask the government to consider and report back to us on the potential benefits, risks and costs of introducing a new category of public expenditure on preventative spend, which we were told will establish a benchmark and enable investment to be tracked over time. This would be a welcome development.”

Read the full report: Pre-Budget Scrutiny 2025-26: Managing Scotland’s Public Finances: A Strategic Approach

Enough’s enough: No more Commissioners, says Holyrood Committee

‘ROOT AND BRANCH REVIEW NEEDED’

Holyrood’s Finance and Public Administration Committee has called for a moratorium on the creation of any new commissioner-style bodies in Scotland.

The committee says it heard compelling evidence that the current framework for how such bodies operate “lacks coherence” and “isn’t fit for purpose”.

In its inquiry report, the cross-party MSPs say a “root and branch” review is necessary before any further bodies are created, or the powers of existing ones are expanded.

While the committee’s report specifically focuses on bodies directly responsible to the Scottish Parliamentary Corporate Body (SPCB), it hopes the findings can “set the tone” for decisions around the wider public body landscape in Scotland.

Scotland already has seven SPCB-supported bodies in operation, but the number could double before the end of the current five-year parliamentary term if current proposals were to progress.

Finance and Public Administration Committee Convener Kenneth Gibson said: “Our inquiry isn’t about the merits, or otherwise, of existing SPCB-supported bodies. The post-holders we spoke to are a dedicated group of people with a common purpose to serve Scotland in the public interest.

“The evidence shows, however, there is no clear, coherent framework underpinning how all of these bodies operate. Over the years, the landscape has developed in an ad hoc way, with new commissioners being agreed on a case-by-case basis.

“It’s led to a disjointed landscape of individual bodies with varying functions and powers. There is also evidence of duplication and overlap between existing SPCB-supported bodies and other public bodies in Scotland.”

SIX new bodies being considered

Mr Gibson added: “Once the Patient Safety Commissioner becomes operational the number of SPCB-supported bodies will stand at eight. Proposals for a further six new advocacy-type SPCB supported bodies are currently being considered.

“This proliferation appears primarily to have been driven by calls to respond to perceived failures in public service delivery, or to bring prominence to certain issues or policies.

“It is our clear view that this advocacy role is for MSPs to undertake, with Parliament holding Government to account. We also believe that funding for new bodies would be better spent on improving the delivery of local public services, where greater impact can be made.

“Continuing the trend for creating new advocacy-type SPCB-supported bodies is not sustainable, especially at a time of significant pressure on public finances in Scotland.”

Root and branch review

Mr Gibson concluded: “Now is the time to pause and take stock. Before adding any more to the mix, we must first design a coherent structure, with enhanced accountability and scrutiny mechanisms, along with effective delivery and measurement of outcomes.

“The committee therefore calls for a moratorium on creating any new SPCB-supported bodies, or expanding the remit of existing bodies, until a ‘root and branch’ review of the structure is carried out, drawing on the evidence and conclusions set out in this report.

“We also make a series of recommendations that will, in the meantime, improve transparency, accountability, scrutiny and value for money of existing bodies.”

The committee also recommends:

  • the review should be undertaken by a dedicated parliamentary committee, including all political parties, and with meaningful engagement by the Scottish Government – to be completed by June 2025.
  • the Scottish Government should set out how it plans to use this report to “set the tone” for the Scottish Government’s wider review of the public body landscape, as highlighted by the Minister for Public Finance during evidence.

https://www.parliament.scot/chamber-and-committees/committees/committee-reports

Holyrood Committee launches call for views on Scottish Government’s proposed ‘National Outcomes’

A call for views on the Scottish Government’s proposals for National Outcomes has been launched.

The Scottish Parliament’s Finance and Public Administration Committee will lead Holyrood’s committees in scrutinising the proposed new and revised measures under the National Performance Framework.

Views are being sought from across the public sector, from businesses, the voluntary sector and from communities.

The deadline for submitting views is 28 June 2024.


Finance and Public Administration Committee Convener Kenneth Gibson said: “The Scottish Government must, by law, review the National Outcomes for Scotland at least every five years.

“Earlier this month the government published its proposals for new and revised National Outcomes.

“Our committee will lead the Parliament’s scrutiny of the new proposals and, working with other Committees, consider whether the proposed National Outcomes are the right ones for Scotland, and whether the Government should make any other changes.

“Our Committee, along with others, will also examine whether the 13 proposed Outcomes will lead to better lives for the people of Scotland, as intended by the Scottish Government.”

Call for Views

The committee’s call for views asks nine questions about the proposed National Outcomes.

Views can be submitted here: National Performance Framework: Inquiry into proposed National Outcomes

National Performance Framework

The Scottish Government explains that the National Performance Framework is Scotland’s wellbeing framework.

The National Performance Framework aims to get everyone in Scotland to work together to deliver on the National Outcomes. This includes:

  • national and local government
  • public and private sectors
  • voluntary organisations
  • businesses and
  • communities.

What are National outcomes?

The Government explains that National Outcomes are part of the NPF and are the broad policy aims which, with the NPF, describe the kind of Scotland “in which we all want to live”.

The Scottish Parliament must be consulted on proposed National Outcomes and also considers the consultation the Government has carried out.

The Scottish Government’s Report on proposed National Outcomes and its consultation was published on 1 May 2024.

Committee Scrutiny

The Finance and Public Administration Committee is leading consideration of the proposed National Outcomes, although some other Committees will wish to consider evidence in their areas of interest. There is one consultation for all Committees which seeks views on the Government’s proposed National Outcomes.

What happens next?

Once the consultation has closed, the responses will be analysed, and that analysis will be sent to the relevant Committee to consider.

It will be for each Committee to consider what action they may wish to take, including whether to publish their views in a letter or a report to Parliament.

Scottish Budget faces difficult choices in challenging circumstances, says Finance Committee

The Scottish Government’s budget for 2024/25 has been set amidst a context of persistently high inflation, low growth and high interest rates amidst deep cuts to capital funding.

In its budget report published on Wednesday, Holyrood’s Finance and Public Administration Committee looks at the choices the Scottish Government has made, including on taxation.

Finance and Public Administration Committee Convener Kenneth Gibson said: “Significant pressure on Scotland’s public finances have presented difficult tax and spending decisions in the budget. Everybody recognises that.

“The Scottish Government priorities are based on delivering its three ‘missions’ of equality, opportunity and community.  However, there was a great divergence in views from witnesses on what those priorities should be, with the focus understandably in areas where budgets will be reduced rather than increased.

“The committee is unclear how spending has been prioritised towards a fair, green and growing economy.

“Regarding taxation, there is uncertainty about the behavioural impact on taxpayers earning more than £75,000 per year and when there will be a fundamental review of the council tax.

“The Scottish Government needs to deliver long-term financial planning. At present it gives the impression that it’s procrastinating on important decision-making that would help the sustainability of Scotland’s public finances, albeit in the medium and longer-term.

“The Committee is also disappointed at continuing cuts to the capital budget by the UK Government which restricts the Scottish Government’s ability to invest in capital projects, achieving net zero and growing the economy.”

On public service reform Mr Gibson added: “The Scottish Government’s public service reform programme is critical to the sustainability of the Budget and ensuring effective delivery of public services.

“While the government has set out principles and objectives for its reform programme there are few other signs of progress. This is disappointing given the urgent need for reform.

“We need to see the government develop and deliver its reform programme at a quicker pace in the months and years to come.”

The report also says that the Scottish Government must explain why it has delayed:

  • the public sector pay policy 2024-25
  • an updated infrastructure project pipeline and
  • a financial strategy for public service reform.
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Holyrood Committee announces inquiry into Scotland’s Commissioners

DOES SCOTLAND NEED YET MORE COMMISSIONERS?

A new parliamentary inquiry examining Scotland’s Commissioner ‘landscape’ has been announced.

Holyrood’s Finance and Public Administration Committee will investigate whether a more “coherent and strategic approach” is needed for the creation of any further commissioners.

Scotland currently has seven commissioners directly responsible to Parliament. An eighth – the Patients Safety Commissioner – was agreed by Parliament in September 2023.

A further six commissioners have been proposed, or are being considered, that could potentially bring the total number to 14 by the end of this five-year session of Parliament.

Finance and Public Administration Committee Convener Kenneth Gibson said: “Seven commissioners cost £16.6m, according to budget figures for 2023/24.  Each office comes with its own staff and its own running costs. 

“The smallest cost £0.3m and the largest £6.7m.  More are being proposed, or considered, by both the government and by backbench MSPs.

“Our committee believes this inquiry is both timely and necessary.

“The Scottish Government has already stated there is very little published research on commissioners in Scotland – or the UK – and little evaluation exploring their pros and cons, powers or ways of working.

“Our committee will therefore investigate whether a more coherent and strategic approach is needed for the creation of such commissioners in Scotland.”

The committee will launch a call for views in January. Oral evidence will be taken in March / April. The committee’s report is expected to be published in May / June 2024.

Holyrood Committee ‘concerns’ over Circular Economy Bill

The Scottish Government’s Circular Economy Bill has been criticised for a lack of financial transparency and accurate costings, in a report out today.

The Finance and Public Administration Committee (FPAC) doubts that the Bill complies with the Parliament’s rules on setting out “best estimates” of costs likely to arise.

FPAC Convener Kenneth Gibson MSP said: “Scrutiny of this Bill reinforces our concern that affordability does not appear to be a key factor in Scottish Government decision-making.

“The Minister, Lorna Slater MSP, has committed to consult on the cost of secondary legislation, but that should not replace an assessment of affordability at the point of a Bill’s introduction.

“Our committee is not convinced that this Bill’s financial memorandum meets the requirements set out in Parliament’s Standing Orders to provide: “best estimates of the costs, savings, and changes to revenues to which the provisions of the Bill would give rise”.

Mr Gibson continued: “We’ve seen an increasing use of ‘framework’ bills that provide government with future enabling powers. These do not, however, provide best estimates of all likely costs, and undermine parliamentary scrutiny. 

“It also risks the Parliament passing legislation which may in the end – once outcomes are fully understood – lead to significant cost increases.

“The increased use of framework bills with no clear implementation costs, poses a long-term risk to the Scottish Budget, both now and for successive governments.

“The FPAC is disappointed that Scottish Ministers have still to meet our previous recommendations or expectations around the level of financial data, clarity and transparency required.

“In the end, it will be for Parliament to decide when voting on the general principles of this framework bill, whether the outcomes it seeks to deliver outweigh any financial or affordability considerations.”

On income from fly-tipping and litter fines, the report said:

  • The assumption in this financial memorandum (FM) of a 100% payment rate for fixed penalty notices is entirely unrealistic. Therefore, given that the level of income from fines assumed in the FM is not attainable, it should not be used to ‘off set’ some of the costs of enforcement, such as in relation to fly tipping. We consider this approach to identifying potential savings to be unsatisfactory.

Updates every six months:

  • We request that the updates, committed to by the Minister in her letter of 20 November be provided to the Committee every six months. These updates should include updated information on the expenditure incurred to date, any changes in forecast costs and any savings arising from the Bill and the subsequent Act (subject to the Bill being passed) and relevant secondary legislation, until all provisions are operational.

Holyrood’s Finance Committee calls for long-term planning to ensure fiscal sustainability

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

Holyrood’s Finance Committee to hear from North Coast people about Scotland’s Budget challenges

MSPs from the Scottish Parliament’s Finance and Public Administration Committee will visit Largs next week (Wednesday 30 August) to hear from local people about Scotland’s Budget challenges.

The visit is part of a parliamentary inquiry into the sustainability of Scotland’s finances.

It follows the Scottish Government’s forecast that public spending in Scotland is set to outstrip income expected by £1 billion in 2024/25, rising to £1.9 billion in 2027-28.

This means the government is forecasting that it will not have sufficient money to fund the spending it currently wishes to make.

The politicians are meeting with local people, organisations and businesses to hear their views on what the Scottish Government’s priorities should be in its 2024-25 budget.

Their views will help inform the committee’s scrutiny of the government’s budget in the autumn.

Finance and Public Administration Committee Convener Kenneth Gibson MSP said: “The focus of our work this year is how the budget for 2024-25 and beyond will ensure Scotland’s finances are sustainable in both the short and longer-term.

“It is an incredibly important subject matter given the forecast budget pressures and longer-term demographic challenges in Scotland.

“Coming to Largs and talking to North Coast people – including businesses, third sector bodies and residents – will enable us to hear different views of the impact of the Scottish Government’s tax and spending decisions.

“And that matters because the budget and the long-term sustainability of Scotland’s finances will affect everyone in the country.

“I am delighted that we will also meet the following day in Seamill to discuss our committee’s work programme for the forthcoming parliamentary year.”

Participants will be asked to give views on:

  • what should the Scottish Government’s priorities be for its budget in 2024-25, given the challenges that Scotland faces next year, and in the years ahead? 

Finance Committee launches inquiry into Scottish Government’s public service reform programme

A new parliamentary inquiry into the Scottish Government’s public service reform programme has been announced.

Holyrood’s Finance and Public Administration Committee wants to examine the detail of the reform programme, which is focused on digitalisation, innovation, estates, public body landscape and procurement. 

As part of this work, the committee will examine how public bodies are working to achieve the government’s plans to make efficiencies, while ensuring effective delivery of public services, in 2023-24 and beyond. 

It will also consider the government’s ambitions to:

  • keep the public service pay bill costs at 2022-23 levels and
  • return the public sector workforce “broadly to pre-Covid-19 levels”.

Finance and Public Administration Committee Convener, Kenneth Gibson MSP said: “The Scottish Government’s Resource Spending Review published in May 2022 set out its high-level spending plans up until 2026-27 to deliver on its ambitions. 

“Further information on the government’s plans for reform and workforce levels were expected in the Scottish Budget 2023-24 but did not materialise due to ongoing economic turbulence.

“Our committee therefore wants to look at how public bodies are working to put in place the government’s ambitions for reform.“We also want to establish from where in the public sector reductions in headcount to pre-pandemic levels will be made, and to what timescales.

“Clarity and transparency around these issues are crucial, during what is an uncertain time for the public sector.”

A call for views from public sector bodies, academics, think tanks and other interested parties has been launched today, with a closing date of 1 May 2023.

To inform this inquiry, the committee is seeking written views from Scottish public bodies on their plans for public service reform in their sectors, and others with a view on how the reform programme is working in practice and how it is delivering effective and efficient services. 

The committee is particularly keen to hear from: 

  • all types and sizes of public sector bodies from across the public sector 
  • others affected by the Scottish Government’s public service reform programme, and 
  • think-tanks, academics and commentators on progress with, and outcomes from, the reform programme. 

Submit your views

Sustained progress needed on Scotland’s National Performance Framework ambitions, says Holyrood’s Finance Committee

In a report published yesterday, the committee sets out a suite of recommendations aimed at ensuring the NPF is a “much more explicit” part of policy making.

This begins, says the committee, with the Scottish Government making clear how it will use the NPF in setting national policy, and in collaborating with local government and wider Scottish society.

The report also says Scottish Government funding decisions need to be aligned with NPF outcomes, and that greater scrutiny and accountability is required.

Finance and Public Administration Committee Convener Kenneth Gibson said: “The NPF remains an important vision of the type of place Scotland should aspire to be, but there needs to be more sustained progress towards achieving that vision.

“While there is no single solution, of key importance is positioning the NPF as the start of a ‘golden thread’ from which all other frameworks, strategies and plans flow, through to delivery on the ground.

“We recommend that the government explicitly set out how its policies will contribute to the delivery of specific NPF outcomes, their intended impact on NPF outcomes, and approaches to monitoring and evaluation.

“Similarly, government funding decisions should also be aligned with National Outcomes. From the wide range of organisations we heard from the NPF is not currently seen to drive financial decisions, nor is it a mechanism by which organisations are held to account for spending effectively.”

The report also makes recommendations for strengthening and refocussing scrutiny – including by parliamentary committees – over how organisations have regard to the NPF.

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