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All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
All Official Reports of public meetings of committees.
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Public Audit Committee
Meeting date: 18 May 2023
Richard Leonard
Thank you. I will move things along now and invite Craig Hoy to put some questions to you.
Public Audit Committee
Meeting date: 18 May 2023
Richard Leonard
I will continue with the theme of risk management in the final series of questions that we want to put you. Towards the end of the report, we read a reference to an exercise that took place in summer of 2022 inside the net zero directorate, which took part in what you describe as a risk housekeeping exercise. The result of that housekeeping exercise was the conclusion that the net zero directorate demonstrated a maturity level of novice to organised. My understanding is that that means that the directorate had only just started to implement processes that were in line with Scottish Government guidelines. It was at a very early stage—a novice stage—in that regard.
Do you have a concern about that, given that this is the directorate that is supposed to be showing leadership and driving forward this agenda across the whole of Government?
Public Audit Committee
Meeting date: 18 May 2023
Richard Leonard
Good morning. I welcome everyone to the 15th meeting in 2023 of the Public Audit Committee. The first agenda item is for the committee to consider whether to take agenda items 3, 4, 5 and 6 in private. Is that agreed?
Members indicated agreement.
Public Audit Committee
Meeting date: 18 May 2023
Richard Leonard
Thank you very much. We now move to another area that has been highlighted in the report and which Willie Coffey has some questions on.
Public Audit Committee
Meeting date: 18 May 2023
Richard Leonard
Okay.
Public Audit Committee
Meeting date: 18 May 2023
Richard Leonard
Okay; thank you.
Obviously, the committee will have to consider whether it would be useful for us to invite officials from DG net zero to give evidence to us. If we decided to do that, we could put to them directly some of the questions that have arisen from our session with you.
I thank the Auditor General very much for the evidence that he has led this morning, and I thank Rebecca Seidel and Sally Thompson for the very useful evidence that they have contributed.
For the record, I should have mentioned at the start that Colin Beattie has submitted his apologies for not being at today’s meeting. I wanted to have that recorded.
I close the public part of the meeting and move us into private session.
10:08 Meeting continued in private until 11:03.Public Audit Committee
Meeting date: 18 May 2023
Richard Leonard
The principal item on this morning’s agenda is for us to consider an important report, which the Auditor General published in April. The report relates to audit work that was conducted up until March, so it is very up to date in both data and analysis, and looks into how the Scottish Government is set to deliver climate change goals.
I welcome our witnesses. Stephen Boyle is the Auditor General for Scotland. Alongside him are Rebecca Seidel and Sally Thompson, both of whom are senior managers at Audit Scotland.
As usual, we have quite a wide range of questions to put to you, but before we get into them, I ask the Auditor General to give us an opening statement.
Public Audit Committee
Meeting date: 11 May 2023
Richard Leonard
We are a bit pressed for time, so we will move on to another area that has been of special interest to the committee. Craig Hoy will ask about that.
Public Audit Committee
Meeting date: 11 May 2023
Richard Leonard
Okay. Thank you.
The other thing that you mentioned, which is of interest to not only the Public Audit Committee but the Parliament as a whole, is the fiscal framework and how that works. Of course, it works in a very particular way. If Scottish income tax receipts are at a certain level compared with UK income tax receipts, there are consequential effects on the operation of the fiscal framework, which can be advantageous but can also be disadvantageous. Can you update us on where the renegotiation of the fiscal framework is?
Public Audit Committee
Meeting date: 11 May 2023
Richard Leonard
Thank you very much.
The committee is aware that, in places, the reports prepared by the National Audit Office and the Auditor General for Scotland used language such as “continuing limitations” and “risk”, and identified some areas of concern. We will get to those shortly but, before we get into some of that detail, I will take you back to one of the fundamental issues raised in the audit.
The issue came out in the evidence session that we had on 9 February with the National Audit Office and the Auditor General. They drew our attention to the conclusion that the growth in Scottish income tax receipts in the financial year 2021-22 was expected to be 11.3 per cent, whereas the UK equivalent income tax receipts were expected to grow by 13.2 per cent. I turn to Alyson Stafford first. Can you give us an explanation of the Government’s thinking on why Scottish income tax growth has been lower than the growth in the UK as a whole in recent years?