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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 22 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

Can you refer me to the specific line?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

We are not in a position to commit to reinstating that funding. We will consider the needs of the Scottish Funding Council as part of the budget process, and the funding allocation will be set out as part of the budget announcement.

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

I touched on that in my answer to Mr Mason. We are not in a position to commit to reinstating that money. We will assess the SFC’s needs as part of our budget-setting process.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

Yes. I am just trying to pull the exact details together.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

In the savings that have been set out to support the overall fiscal position, we have identified particular items. We have, for example, already had a conversation with the convener about the Marine Scotland line and have looked at some of the detail there. There are areas where the overall budget has been maintained through, for example, the use of reserves; there are areas where the associated forecasts have been reduced; and there are areas where funding will be deferred but will be used in full in future years.

Craig, can you provide some more of the specific detail on the point about ring fencing?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

Thank you very much, convener, and good morning to the committee.

As the committee can appreciate, we continue to face challenging economic circumstances. Continued inflationary pressures, particularly around public sector pay, are putting real pressure on the Scottish budget. Given those circumstances, tough choices have to be made on how we prioritise spending in order to meet those pressures and support priority areas. Those challenges are not unique to the Scottish Government; other devolved Governments and departments across the UK are struggling with the same issues. The autumn budget revision reflects our response to those challenges.

The funding changes increase the budget by £361.3 million and include providing £265 million to local government to support pay deals, £50 million to health, £44 million to police pensions and £30 million to Ukrainian resettlement. To help to fund those areas, it has been necessary to reprioritise budgets. The technical, Whitehall and internal transfers are presented in the document in the usual way. Some of the technical adjustments, in particular under international financial reporting standard 16, get to the heart of discussions around budget presentation transparency.

I welcome the dialogue that the committee recently had with my officials and the recent correspondence on the issue with the Deputy First Minister. We are considering the issue in the context of the 2024-25 Scottish budget. The supporting document to the autumn budget revision and the finance update that was prepared by my officials reflect some of those discussions and provide further background on the net changes.

With that, I am happy to conclude and to answer any questions that the committee may have.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

That is a fair point and is something to which we are giving further consideration. Clearly, devolved pensions differ in terms of the ways in which pensions are handled—through annually managed expenditure lines, for instance. In this case, we are seeking to manage in-year. We will give the matter further consideration and reflect on how we can refine our forecasting in order, we hope, to move to having, at the outset, a number that is much closer to the outturn. Because of the volatile and demand-led nature of the particular line, there is a need to manage it in-year.

However, the points that you make are fair and reasonable, and I am happy to consider how we can refine our forecasting in that area.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

Recently, there has been further development of business cases and assessment of multiyear plans. That has identified scope for reduced spend on that programme of activity within this financial year, so we have an opportunity for funding to be returned to the centre. As I touched on in my opening remarks, we face a very challenging set of overall economic circumstances.

Craig, do you want to provide more detail on the portfolio?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

That is an important point. It is about recognising that reserves are there for a purpose. They give bodies that have that facility a degree of flexibility that is commensurate with their roles and responsibilities. We recognise that, in the financial situation in which we find ourselves, that facility is available, which allows and assists us to manage the overall budget position. Of course, implicit in your argument is the idea that the continual use and depletion of reserves would clearly be a cause for concern. They are there for a purpose; there will have been a logic and rationale behind that facility being available. What we have set out in some of the specific items that we have discussed with an agency that has reserves reflects the circumstances in which we find ourselves.