Skip to main content

Language: English / Gàidhlig

Loading…

Seòmar agus comataidhean

Official Report: search what was said in Parliament

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

Criathragan Hide all filters

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 2 May 2025
Select which types of business to include


Select level of detail in results

Displaying 3226 contributions

|

Finance and Public Administration Committee [Draft]

Scottish Budget Process in Practice

Meeting date: 22 April 2025

Kenneth Gibson

Thanks. That is very clear.

There are no further questions from members. Is there anything else that you wish to say that you feel that we have not touched upon? Is there anything that you would like to clarify or point out to the committee?

Finance and Public Administration Committee [Draft]

Scottish Budget Process in Practice

Meeting date: 22 April 2025

Kenneth Gibson

I will ask a final question on zero-based budgeting. Professor Bell, who will be giving evidence very soon, said in his submission:

“The UK Spending Review is a comprehensive ‘zero-based’ review that is forcing departments to justify the entirety of their spending, rather than the increment requested relative to last year’s baseline. It will involve ‘challenge panels’ including experts from the private sector and academia who will scrutinize departmental spending plans.”

What are the implications of that for the OBR?

Finance and Public Administration Committee [Draft]

Scottish Budget Process in Practice

Meeting date: 22 April 2025

Kenneth Gibson

Thank you. I am pleased that you have touched on the OBR’s review and that the Treasury has accepted the 10 recommendations. I was going to ask you about that, but you have covered a lot of what I was going to ask, so I will ask one final question before I open up the session to colleagues.

In your submission, you state:

“The OBR’s remit includes the responsibility to evaluate the long-term sustainability of the UK public finances and assess fiscal risks.”

The SFC has published a fiscal sustainability report, which the committee will be interrogating—or at least questioning—and taking evidence on next Tuesday. What kind of work have you been doing with the SFC in relation to its report and your own work?

Finance and Public Administration Committee [Draft]

Scottish Budget Process in Practice

Meeting date: 22 April 2025

Kenneth Gibson

You have pointed out that you are, of course, not responsible for the formal calculation of the block grant adjustments, which are produced by the UK Treasury. Let me phrase it in this way: would it be helpful if the OBR actually did that?

Finance and Public Administration Committee [Draft]

Scottish Budget Process in Practice

Meeting date: 22 April 2025

Kenneth Gibson

I always think that, for long-term projects—city region deals being an obvious example of projects with a long development period—a spending review never happens next week, next month or even next year. It always seems to be kicked down the road—there is always that worry as well.

I will open up the session to questions. Michael Marra will start, to be followed by Liz Smith.

Finance and Public Administration Committee [Draft]

Scottish Budget Process in Practice

Meeting date: 22 April 2025

Kenneth Gibson

When we discussed that issue during budget deliberations, we said that, because of in-grade rises, promotions and so on, 3 per cent really looked like being more like 4.5 per cent, but that is not being budgeted for.

I am jumping about a bit, because I do not want to take up too much time, given that other colleagues will want to come in. However, I want to cover a number of bases that others will want to touch on. I am not going to mention AI—David Bell’s report is laced with it—because I know that a certain individual will probably want to come in on that.

Professor Spowage, you talked about the MTFS earlier and you said that it appears to have

“the trappings of a strategic document but lacks a lot of detail that would be required for it to be a useful set of forecasts. There is no detail on how the spending projections are arrived at, and therefore it is impossible to scrutinise the priority of each and how realistic they are.”

You have also said that it has largely been “abandoned”.

Added to that, you talked about the fiscal sustainability delivery plan, and you said:

“It’s unclear why a different document is needed.”

I do not think you are the only person to have said that. The SFC has said something similar. Why do you think it has produced a separate document?

Finance and Public Administration Committee [Draft]

Scottish Budget Process in Practice

Meeting date: 1 April 2025

Kenneth Gibson

You say that the addition of the medium-term financial strategy to the budget process

“has been a positive development, setting out five-year forecasts”,

and you go on to say that

“this should encourage budget planning over multiple years rather than focusing on balancing the budget one year ahead.”

Can you talk to us about that, too?

09:45  

Finance and Public Administration Committee [Draft]

Scottish Budget Process in Practice

Meeting date: 1 April 2025

Kenneth Gibson

That is an important point. Your submission also says:

“We currently do not have a role forecasting spending, other than social security payments”.

You are obviously keen to have that additional role.

Finance and Public Administration Committee [Draft]

Scottish Budget Process in Practice

Meeting date: 1 April 2025

Kenneth Gibson

I hear a sense of frustration, though, that, although you are examining that aspect, you are not able to deliver the same handle on its impact on the rest of the Scottish budget. I sympathise with you on that. You say:

“The Scottish Government has also set out scenarios for spending and funding to assess the risks faced by the Scottish Budget in future years. The Scottish Fiscal Commission does not currently have any role in assessing these scenarios and risks.”

Again, would you be keen to have such a role?

Finance and Public Administration Committee [Draft]

Scottish Budget Process in Practice

Meeting date: 1 April 2025

Kenneth Gibson

Exactly. In the autumn revisions, in particular, we have a groundhog day scenario with some of those transfers. I have said that to ministers, as you probably know. Thank you for emphasising that.

You said that the evaluation of the forecast in 2024, which was accompanied by a fiscal update, was

“judged to be a useful snapshot as the Scottish Parliament began its annual process of Budget scrutiny so we plan to publish the Fiscal Update again in August 2025.”

Can you touch on how useful that was?