Before we move to item 2, I invite the Auditor General for Scotland to make a short statement on his report “Fiscal sustainability and reform in Scotland”, which was published earlier today.
Good morning, committee. As you know, this morning Audit Scotland published a report on fiscal sustainability and public service reform in Scotland. I look forward to briefing the committee in more detail on the contents of the report in the next couple of weeks.
Among the key messages from today’s report, which focuses first on fiscal sustainability, is that the Scottish Government could do more to be clearer with both the Parliament and the public about the scale of the fiscal challenges in Scotland’s budget.
We note that, over the past few years, the Scottish Government has delivered a balanced budget—as it is required to do at the end of each year—by using a range of short-term measures. However, that has not yet translated into a longer-term approach of clear fiscal sustainability.
The report also looks at the Government’s progress on making arrangements for public service reform, which is identified as a key plank of delivering changes to public services and achieving fiscal balance. I note that, although there have been some important small-scale changes, that reform has not yet moved at the scale and pace necessary to deliver public services that are affordable in the longer term. Our report includes recommendations for the Scottish Government to that effect.
Thank you very much. As you say, we will return for a detailed evidence session on that report in a fortnight.