Tag: Finance and Public Administration Committee

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.

FPAS622R8Download

Cost of living crisis: Holyrood’s Finance Committee launches inquiry

How will the rising cost of living affect the Scottish Budget in 2023-24? Will the Scottish Government’s proposals for reforming the public service deliver the efficiencies expected?

These and other key questions are the focus of the Finance and Public Administration Committee’s inquiry that begins today.

The committee is seeking views from organisations and the public to inform its pre-budget scrutiny work, prior to the Scottish Government publishing its 2023/24 budget later this year. 

Committee Convener Kenneth Gibson MSP said: “The next Scottish Budget will be challenging as the current cost-of-living crisis impacts on Scotland.

The Committee is therefore keen to hear from organisations and individuals how the Scottish Government’s Budget in 2023-24 should respond to this crisis.  

“We also want to hear views on how the government’s proposed reform of the public service will support its future spending plans.” 

Mr Gibson concluded: “Using the government’s resource spending review announced in May, we will focus our pre-budget scrutiny on the proposals for reforming the public service, the impact of the cost of living crisis on the Scottish Budget, and how spending priorities might affect the delivery of national outcomes.”