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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 20 October 2025
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Displaying 1170 contributions

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Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

We have sought to support public sector pay in a way that is commensurate with the scale of the challenge that we face with the inflationary pressures. Thankfully, we have seen some signs of inflation beginning to fall, which clearly will create a different economic and fiscal context for future rounds of negotiations. However, I entirely agree with the implicit point in your question, Ms Smith: this has created exceptional in-year pressures, and those pressures will have to be carried forward. We are giving very careful consideration to that in our spending plans for the next financial year.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

With regard to returns to the centre, there is no unallocated funding, as Niall Caldwell has said. That overall position supports everything that is set out in allocations. Clearly, though, the majority of funding allocated in the ABR is to support local government pay, including the teachers’ pay settlement.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

There has been a reprofiling, but there has been no loss of spend on the front line. It is just a reprofiling across years.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

I would be happy to get back to you on the matter and provide some more detail. I stress that part of that reprofiling is a flexibility that is given to local government. There is no loss of spend on the front line—I just want to be clear on that point.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

It will be set out as part of the budget process for future years’ budgets. Of course, we are still to see the autumn statement and forecasts ahead of setting our own budget, but it will be taken as part of that process.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

First, there is, of course, a dedicated rural affairs, land reform and islands portfolio, but we also recognise that rural affairs interests are supported across a range of portfolios. In certain areas, we have sought to be more effective in getting money out the door earlier through, for example, the basic payment schemes and greening advances.

As for the decision-making process, with a set of circumstances such as those that we have faced this financial year—and, indeed, the previous financial year—we have to look for opportunities to generate efficiencies that can then be returned to the centre to support the in-year fiscal position, particularly to meet emerging pressures such as public sector pay. The particular example that we are considering here relates to the rural affairs, land reform and islands portfolio, but opportunities to generate savings will be looked at across Government. Sometimes that can mean rephasing or reprofiling particular budget lines, but the aim is to generate revenue internally in order to support the in-year budget position to meet challenges.

For example, if you have a demand-led scheme but demand is not what was forecast, that provides a source of revenue that can be redeployed. If there is slippage, perhaps in a capital project, that, too, provides an opportunity for redeployment. It is a continuous, on-going process that is part of the in-year budget management process.

Is there anything that you want to add, Niall?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

As that is a technical matter, I will ask Craig if he wants to explain.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

I am not in a position to give a detailed answer, but I will ask my officials at the Scottish Public Pensions Agency to contribute to a response to the committee and see whether they can shed any light on the matter.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

Thank you. I will ensure that the points that you have highlighted are reflected in the correspondence.

I very much want to thank the committee for its constructive engagement and to thank officials for the work that has been undertaken to get us to a position where we have been able to take the financial update forward. This is a process, rather than an event, and we are always keen to get feedback to ensure that we are presenting information as transparently as possible. It is all part of an on-going discussion and a process of refinements. I am grateful for the committee’s input, and I will certainly ensure that the points that you have highlighted on financial memoranda are relayed to relevant officials and ministerial colleagues.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 November 2023

Tom Arthur

With your permission, convener—and this also applies to some of the questions that Mr Mason asked—I would be happy to respond in detail in writing when I have had the chance to have further discussions with officials and to look at the matter in some detail myself. The committee has raised an important point that warrants a more substantive response than something extemporised by me at this stage in the session.