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Corporate governance and accountability arrangements for public bodies are in place and built around an established series of statutory and administrative mechanisms. These ensure consistent processes and parameters, based on the principles in the Scottish Public Finance Manual, within which public bodies are required to operate in terms of the stewardship of public money, propriety and ethics.

This is supplemented by framework agreements that Scottish Government has in place with most public bodies setting out respective roles and responsibilities, including requirement for bodies to set plans which contribute to achievement of the National Performance Framework outcomes, including tackling poverty. These activities and the sponsorship and relationship arrangements the Scottish Government has with public bodies helps ensure that Scottish Ministers priorities are delivered.

Scottish Government funding to local authorities is allocated using a relative needs-based formula, taking into account disadvantage and various other considerations, including levels of deprivation. While local authorities decide how to spend their available finances they are guided by a set of national and local outcomes, with the Equality Act and associated specific duties providing a framework to help local authorities pay due regard to equality issues.

Specifically, local authorises, and other certain public bodies, in Scotland are subject to the Fairer Scotland Duty, which places a legal responsibility on them to actively consider how they can reduce inequalities of outcome caused by socio-economic disadvantage, when making strategic decisions.