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Joint review of budget as it relates to climate change

Letter from the Cabinet Secretary for Net Zero, Energy and Transport and the Cabinet Secretary for Finance and Economy to the Conveners of NZET and FPA Committees, 25 August 2021

Dear Conveners,

Following our letter to the Committees on 21 June, we are writing to reiterate our continued commitment to the Joint Budget Review (JBR), to set out our current assessment of the timescales for this work, and to seek agreement of the new Committees’ continued involvement.

As you will be aware, during Stage 2 of the Climate Change (Emissions Reduction Targets) (Scotland) Bill, the Government committed to working with the Parliament and stakeholders to review current processes and outputs around budget information as it relates to climate change. The Joint Review of the Budget, which began last September, aims to propose feasible and proportionate steps to deliver meaningful improvements to processes and transparency with respect to the consideration of climate change in the Scottish Budget.

As noted in our letter in June, we remain committed to this work but had to revise the timescales to allow sufficient time to undertake necessary research to provide viable and effective recommendations to enhance the assessment of spending decisions as they relate to climate change. Accordingly, the Fraser of Allander Institute research will run from August 2021 to Summer 2022, and consequently, we expect the JBR to conclude with agreed recommendations and actions during Summer 2022.

We remain committed to delivering meaningful improvements to processes and transparency with respect to the consideration of climate change in the Scottish Budget, and ensuring we have quality research evidence to support this. Whilst the research is ongoing, we will continue to work to examine any further interim improvements that may be made to processes and transparency ahead of the 2022-23 Budget. Our officials will also work with yours and FAI to consider how any early findings from their research can be made available to support your own scrutiny timetable of the Scottish Budget.

Following the change in Committee remits and appointments, we would invite confirmation of your continued support for the JBR based upon these revised timescales, and look forward to working with you on this important portfolio agenda.

Yours sincerely,

Kate Forbes and Michael Matheson