Thank you, deputy convener, and happy new year to you and the other committee members.
Today’s report is presented under section 22 of the Public Finance and Accountability (Scotland) Act 2000. It is the sixth consecutive report that I have prepared following the annual audit of the Scottish Police Authority. The auditor—Stephen Boyle, who is sitting to my right—has given an unqualified opinion on the SPA’s annual report and accounts for 2018-19.
The SPA has maintained the improvements in the quality of its accounting that I reported on last year, and there have been clear improvements in its financial reporting. The annual report and accounts were signed off earlier than in previous years, and the financial statements were of a good standard. I welcome the progress that the SPA has made, but nonetheless the organisation continues to face considerable challenges.
In 2018-19, the SPA’s operating deficit was £35.6 million. That was agreed with the Scottish Government, and it was accommodated from elsewhere in the Scottish budget. Plans to achieve financial balance in 2020-21 will now not be achieved. That is due in part to planning for the impact of withdrawal from the European Union, which has meant that the planned reduction in police officer numbers has been postponed. The SPA now needs to reach agreement with the Scottish Government on how it will achieve financial balance in the longer term while still delivering its policing 2026 strategy.
Robust workforce planning is an essential part of the SPA’s overall financial planning. The workforce accounts for about 85 per cent of Police Scotland’s expenditure, and having the right workforce in place is crucial to the delivery of the policing 2026 strategy, so detailed workforce plans are needed urgently.
The recent resignation of the chair of the SPA highlights the continuing lack of clarity on how the system of policing in Scotland should operate, and in the roles and responsibilities of all those involved. The SPA and Police Scotland were established in 2013—almost seven years ago. As I reported at the time, that was a major piece of public service reform, which was carried out very quickly, and its history since then has been turbulent. In my view, it is now time for a review of the way in which the system of governance and accountability as a whole is operating, which should take in the roles that are played by the Scottish Government, Her Majesty’s inspectorate of constabulary in Scotland and the Police Investigations and Review Commissioner, as well as by the SPA and Police Scotland. In order to protect public confidence, it is essential that everyone involved has a shared understanding of how the SPA will fulfil the role that is envisaged for it in the legislation, and what else is required for it to do so.
My colleagues and I will do our best to answer the committee’s questions.