The Public Audit Committee looks at reports published by the Auditor General for Scotland to examine whether public money is being spent efficiently and effectively.

On 12 November 2025, the Auditor General for Scotland published Fiscal sustainability and taxes.

The report says:


"Devolved taxes are making a positive contribution to the Scottish Budget, but lower earnings and employment growth in Scotland compared to the rest of the UK are reducing their overall impact. Altogether, the net benefit to Scottish Budgets since the introduction of devolved taxes in 2015/16 is around £4.1 billion. But this is significantly less than the additional tax raised over the same period. This trend is set to continue. For example, in 2025/26 alone, the Scottish Government expects to raise up to £1.7 billion from Scottish Income Tax through its policy choices, yet the Scottish Budget is only projected to benefit by £616 million. 
The Scottish Government has not been transparent enough about this difference, why it exists and how it arises through block grant adjustments. The relative performance of the tax base, such as growth in wages and employment, in Scotland compared to the rest of the UK is a main driver of these differences. The Scottish Government has not set out clearly enough how it plans to address this economic challenge in future years, and what this would do to support fiscal sustainability". 

Read the report on Audit Scotland's website