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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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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 21 April 2025
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Displaying 1169 contributions

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Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

We have made that commitment.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

I very much welcome that. This is a shared endeavour to ensure that we have as much transparency as possible, consistency of messaging and understanding of what the numbers actually say, so that a substantive debate can take place on whether the allocations are aligned with people’s priorities.

Transparency is a priority for us. The IFRS 16 issue throws up a particular example of the challenges that can be posed in that context. I am conscious that, with transparency, there is a need to ensure that we get the balance right. An overprovision of information, although well intentioned, can add to the complexity and make it more challenging for the budget to be understood and comprehended more widely. Similarly, insufficient information being provided presents a challenge on transparency. We are trying to ensure that we present the figures in a way that they can be intuitively and innately grasped and in a way that is fair and representative. I recognise that there is complexity.

Niall, I do not know whether you want to say something about some of the challenges posed by the IFRS 16 technical adjustments and the issues around presentation and transparency.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

That was a very well-crafted question, because you probably anticipated many of my answers in your preamble.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

Certainly, we wish to be able to provide as much information as possible. We have to recognise that there is a need for proportionality. I appreciate your recognising the points on the potential unintended consequences of overprovision. We are looking at other provisions around transparency such as COFOG, the classification of the functions of Government. I am keen to ensure that we provide information that is as useful as possible for Parliament and the wider public.

Niall, can you touch on where we are on the level of detail that we can go into on our current provision on outturn?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

That is an important point. First, as I have said previously, the nature of such budgets is that they are demand-led, as you have highlighted, and volatile, given the flexibilities that exist around retirement options. That is why, historically, that has been something that we have sought to manage in-year. In this particular instance, it is just in police pensions that a transfer has taken place. The total allocated to date for police pensions is £335 million.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

Is that question specifically on the agriculture reform line—the £4 million?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

What you are seeing is a reflection of the very challenging fiscal environment that we are in. You referred to Creative Scotland. We have committed to reinstate that funding in future years, and the First Minister has made a broader commitment to increase spending in culture and the creative sector by £100 million over the next five years. Of course, we do not want to find ourselves again in a situation that is as challenging as this one is. We have to ensure that we are able to fully fund our priorities, to meet demands that emerge in-year, such as public sector pay settlements and, of course, to ensure that we are in a position to balance the budget.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

It would be helpful if the committee were of one mind on the level of detail that it wants to be provided to it, with reference to what we already provide. I would be very happy to have that discussion and engagement.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

Yes.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

The way in which the reserve operates means that it is a facility to allow us to carry forward underspends from one financial year into the next. The nature of underspends is that they can emerge very late in the day. We saw particular examples of that during the pandemic, when late funding announcements were made and there was simply not the means to deliver on that expenditure prior to 1 April, so the reserve provides that facility.

The sources of funding for the reserve were set out in some detail. Niall, do you want to give more detail?