I know that some people might see this morning’s subject matter as a bit dry and technical, so I am grateful for the committee’s interest, and we will do our best to set out for you why we think that it matters. I will also briefly summarise my views on the draft that is set out in the submission that you have before you.
The committee knows very well the fundamental changes to Scotland’s public finances that are coming through as a result of the Scotland Act 2016. A number of United Kingdom bodies now have an important role in functions that are central to the Scottish Parliament’s responsibilities, including Scottish income tax, aspects of devolved social security, VAT assignment and the detailed operation of the fiscal framework that governs all of that.
The audit and accountability framework will determine the ability of the Scottish Parliament and its committees to scrutinise those areas, including how United Kingdom bodies report to the Scottish Parliament, how they respond to requests for information and evidence and how that is underpinned by the audit process. Those are likely to be critical issues for the Parliament’s committees as they scrutinise the operation of the new powers.
In my view, the draft framework has some important strengths. It provides a reasonable basis for the direct accountability of UK public bodies to the Scottish Parliament, where that is relevant, and it reinforces the role of independent public audit, both in fully devolved areas and in areas in which UK bodies are involved.
I have highlighted some areas in which I think that the draft framework could be strengthened further to better support accountability to the Scottish Parliament, including the provisions for value-for-money audit in UK bodies that undertake devolved responsibilities.
Ultimately, it is for the two Governments to agree on the arrangements that are to be put in place, but it is important for the committee to be able to contribute its views on behalf of the Parliament. Together with colleagues from the Government, we will do our best to help you with that.