Chamber and committees

Scrutiny of Financial Memorandums

About Financial Memorandums

Bills introduced in the Scottish Parliament are usually accompanied by a Financial Memorandum (FM). FMs should set out best estimates of the costs, savings, and changes to revenues arising from a Bill. An FM should show the margins of uncertainty for these estimates. 

An FM will also outline the estimated financial implications of the Bill, and when they will arise, for:

• the Scottish Government
• local authorities
• other bodies, individuals and businesses

Role of the Committee

The Finance and Public Administration Committee scrutinises FMs. The Committee asks people and organisations who may be financially affected by the legislation for their views. 

This scrutiny happens at the same time as an examination of the detail of the Bill by a different committee, or different committees. The committee with the majority of responsibility for examining the detail of a Bill is usually referred to as the 'lead committee'.

After reading the responses, the Finance and Public Administration Committee will do at least one of the following:

• take no further action beyond passing the submissions on to the lead committee for its consideration
• write to the lead committee highlighting any areas of concern and suggesting that it may wish to raise them with the Scottish Government Minister responsible for the Bill
• invite stakeholders who have responded to expand upon their submissions in oral evidence
• invite Scottish Government officials to respond to the issues raised in oral evidence
• publish a formal parliamentary report to the lead committee highlighting any areas of concern and suggesting that it may wish to seek further information on them from the Scottish Government

From time to time, the Committee may not examine an FM if the time for scrutiny of a particular Bill at Stage 1 does not permit.

Session 7 Financial Memorandums

The Committee will consider Bill FMs during Session 7 of the Parliament.

Further information

If you have any queries about the Committee’s consideration of FMs please contact us: [email protected].