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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 2 May 2025
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Displaying 1067 contributions

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Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 November 2024

Ivan McKee

Clearly, there is a timing issue in addressing the fiscal challenges that we face. The cabinet secretary felt that it was important that there was transparency on the adjustments, that people were aware of the financial position and that that was communicated as quickly as possible. You are right that impact assessments need to be done as part of the process, and they were carried out in the required timeframe, so that the information could be published. It was important for transparency that the fiscal position and the required changes were communicated as early as possible.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 November 2024

Ivan McKee

Yes—we will do that.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 November 2024

Ivan McKee

Yes. There will be unknowns in there, such as slippage on programmes, and other factors that will need to be taken into account. We will make an assessment when the dust settles and make adjustments.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 November 2024

Ivan McKee

Even though it is in the budget, there is still a saving from cancelling it.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 November 2024

Ivan McKee

ScotWind is in place, and we have known about the extent of that—you are quoting something from nearly three years ago—for a while. It is not something that has just arrived, and we have grabbed and used it. Plans were made in the understanding that there were pressures that had to be dealt with and there were—

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 November 2024

Ivan McKee

It is all a balance. It is about understanding what the various pressures are and working our way through it, so it is not an either/or situation. In the scenario that you paint, you would have to make cuts up front, which would damage public services at that point. You could make assumptions, such as on public sector pay, and then you could look back after a period of time and realise that your assumption on how much to cut was larger than what occurred in reality. I would then be sitting here and you would rightly ask why I cut hundreds of millions of pounds from the budget at the start, which caused public services to suffer. It is not just a question of turning that tap on again when the money flows through and it becomes clear—I note that we are sitting here in November and still do not have full clarity on what the consequentials are. Pushing that money out the door in the last few weeks of a financial year is the most inefficient way to spend public money.

It is really important that, as part of this process, you understand what the ranges are, because it is not an exact science—there are many variables. We talk about £600 million, of which only £188 million was cuts to specific services in the budget lines that we outlined. That is 0.3 per cent of the total budget. We are trying to land this on a sixpence—very small percentage variations can make a big difference, running into many hundreds of millions of pounds.

That is the process, and I think that it is the right process. Do we always get it absolutely right? Of course not, because there are things that we do not know and are outside our control. Should we have erred more on one side than the other? You can always say that with hindsight, but if we had erred the other way, you would rightly have been criticising us for doing that.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 November 2024

Ivan McKee

As I have indicated in my comments this morning, clarity is still being sought on some of the impacts of the UK autumn budget, particularly around national insurance contributions for the public sector. There are other variables that are still being worked through with HM Treasury. When there is more clarity, the cabinet secretary will review the extent of the consequentials and will indicate what the decisions are on how we take that forward.

11:30  

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 November 2024

Ivan McKee

The budget process and consideration of how much is allocated to portfolios is on-going. That is part of the discussions that the cabinet secretary and I are having with portfolio cabinet secretaries on what the budget should look like for next year. Ultimately, decisions will be made at Cabinet and then by the Parliament in due course as to what the allocations between portfolios look like. There is a well-established process for that.

We absolutely have an eye on what happens next year as we go through this year’s process. I explained the work that is done to manage the ranges and variables in bringing this year’s budget to balance, which obviously has implications, positive or negative, for spend in future years’ budgets, and that is absolutely considered as part of the process.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 November 2024

Ivan McKee

There would still be revisions and transfers, but they would involve smaller numbers, as you rightly point out. We will certainly give that due consideration.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 November 2024

Ivan McKee

I think that £1.4 billion was probably at the upper end of what we expected, but there was no guarantee that the number would not have been far less than that.