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Seòmar agus comataidhean

Official Report: search what was said in Parliament

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 16 April 2025
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Displaying 1169 contributions

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Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

Robert, do you have any information that you are able to share on that point?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

Certainly. There are areas where it has not been possible to deliver the spend in-year. That is the case in the building programme, for example. There are other elements where work is still on-going in business cases, for example, which has meant that money could not be spent in-year. I will ask Scott Mackay to come in on the specific point on the Scottish Water borrowing.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

As I touched on, it will cover a range of capital expenditure across the health portfolio. I recognise the interest in the capital position going forward, but that money is to support the in-year position, recognising the range of pressures that the health portfolio is facing. All I can say is it broadly supports capital expenditure across the health portfolio.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

That reflects pay awards, appointee costs following the introduction of curriculum for excellence, to ensure alignment with the real living wage, inflation and other operational costs as well—it is for pay awards, inflation and various other operational costs.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

As you would imagine, it will be invested in a range of areas of capital expenditure. As I touched on a moment ago—and I think is more broadly reflected across the autumn budget revision—we are operating in an environment where capital budgets are under significant pressure. Of course, the position that we are moving into in the next financial year is compounded by the reduction in the capital that we will receive from the UK Government over the medium term. Craig Maidment or Scott Mackay, do you have the figures on the capital position in relation to the overall NHS capital allocation at hand?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

That just reflects the challenges within the construction sector on these particular capital projects. These are macro factors that are not within our control. We have to be able to respond to the economic environment we are in.

You asked a specific question around Scottish Water, convener, and I will ask Scott Mackay to come in on that.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

We have set out the elements that are ring fenced. We have a commitment, through the Verity house agreement, to establishing a fiscal framework for local government. That is work that we are committed to seeing through and are working at pace to deliver. Where we are in the process of setting a baseline for 2024-25 represents a point on a journey. I know that there is interest in Parliament, in the committee and, certainly, in local government in continuing discussions about what further progress we can make.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

We provide some commentary on that in the guide that we have provided to the committee. There is informal information that can be shared at official level and there is engagement between the Deputy First Minister and Cabinet Secretary for Finance and the Chief Secretary to the Treasury through the finance interministerial standing committee. There are such opportunities but, as was touched on earlier, uncertainty is inherent in the process, in that our earlier assumptions around capital and negative consequentials have not, ultimately, prevailed.

Ultimately, that reflects the way in which the wider UK fiscal framework operates. In respect of supplementary estimates, we find out what our final allocations from the UK Government will be very late in the financial year. We seek to provide as much information as possible to ensure that the budget, as amended for the financial year, reflects the position as we understand it. Of course, the position is not finalised until the end of the financial year—or even beyond it. That is challenging, so we seek to strike a balance. I acknowledge that, within that, judgments have to be made, but the situation is, ultimately, just reflective of how the UK fiscal framework operates. Scott might want to add to that.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

The money is being allocated in-year and is part of the spring budget revision for 2023-24.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

It certainly could be beneficial, but availability of capital is, of course, only one element: many other factors determine the viability of capital projects. We recognise that there have, in recent years, been challenges in terms of supply chain shortages and inflation. Pressures within the construction sector can have an impact, as well. Capital resource being available is not necessarily in itself a guarantee that an organisation’s project can progress at the pace that it would want.

Broadly speaking, given that the challenge that we face right now is that lack of capital is constraining what we want to do, the additional flexibility is welcome. As that grows over the coming years, it will be of benefit.