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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 4 May 2021
  6. Current session: 13 May 2021 to 6 February 2026
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Displaying 1454 contributions

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Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 11 November 2025

Ivan McKee

Yes, there was an increase of £246.8 million. That includes the annually managed expenditure provision for future national health service and teacher pension costs, which is obviously not available for day-to-day spending. At £141.9 million, AME is the biggest part of that figure. Under Transport Scotland, there is an extra £78.7 million for Scottish Rail Holdings, a non-departmental public body, for the lease costs of existing rolling stock—again, that has no impact on Scottish Government discretionary spending. There is a transfer of £24.1 million within the student loans budget line, which reflects updated estimates for student loan capital and capitalised interest requirements. That is another technical issue that does not have any impact on Scottish Government day-to-day spending.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 11 November 2025

Ivan McKee

I will defer to officials on the technical aspects of that. Pensions are usually a complicated subject. They are affected by a range of factors.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 11 November 2025

Ivan McKee

Indeed. Thank you for mentioning that.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 11 November 2025

Ivan McKee

We are very clear on this. The way in which we traditionally do budgeting—we have been doing this stuff for a long time in the public sector—does not necessarily lend itself to an environment in which there is money moving between silos and to prevention and so on. I recognise that and I am happy to work with the committee on how we address it. Indeed, workstreams 5 and 6 are all about preventative budgeting and how we configure budgets.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 11 November 2025

Ivan McKee

It will come in in March. A small part of it will fall into this year’s budget.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 11 November 2025

Ivan McKee

It is the on-going costs of the SQA. You are right—

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 11 November 2025

Ivan McKee

If you look back at historical SQA budgets, you will see the reality of what its spend has been. That needs to be reflected in the budget going forward.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 11 November 2025

Ivan McKee

The genesis of the Building Safety Levy (Scotland) Bill follows on from Grenfell and the requirement to find the funds to support retrofitting at-risk buildings. The intention of the building safety levy is, from memory, to raise about £30 million a year for Scottish Government funds over a 15-year period. The total fund required to retrofit is significantly in excess of that, so the levy covers only a small part of it. The rest will come out of general Government spending, which impacts other services. The levy is a mirror of the policy that has been taken forward in the rest of the UK by the UK Labour Government.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 11 November 2025

Ivan McKee

I think that there is an appetite, which is evidenced by the fact that almost £300 million was spent to support that investment. It will be dependent on everybody’s circumstances, which will be different, but the ability to save on energy bills makes a significant difference. The cost of energy is very relevant; individuals will find themselves in a place where that investment could make a huge difference over time to their energy bills and to the quality of their housing and their lives—not to mention the net zero impact. It is an important investment and clearly there is still an appetite for it.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 11 November 2025

Ivan McKee

That goes back to the point that I made earlier about looking through that lens. Last year, for the first time, we identified what the corporate costs were across the public sector. That pulled out a number of approximately £5 billion, which has driven the target of £1 billion of savings that we are identifying. The issue is that it is spread across every portfolio in every public body and across Government. Corralling that into one place so that you can see it in a separate virtual pot is an important piece of the mechanics, but it adds another layer of complexity to how you look at those budget lines.

10:00  

The answer to your question is that, throughout the accounts, the budgeting process is developing to set those corporate cost-reduction targets as part of portfolio budgets. For every portfolio, you will see what has been done previously, what the new budget looks like and, on your corporate costs, whether it is projected that there will be savings. That will be different for every portfolio, depending on the profile, but now that we have the information, we are able to do that.