The Official Report is a written record of public meetings of the Parliament and committees.
All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
All Official Reports of public meetings of committees.
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Public Audit Committee
Meeting date: 19 February 2025
Richard Leonard
Okay, thanks. As I mentioned, the deputy convener has a final question. It might invite a yes or no answer.
Public Audit Committee
Meeting date: 19 February 2025
Richard Leonard
Good morning, and welcome to the sixth meeting in 2025 of the Public Audit Committee. We have apologies this morning from committee member Stuart McMillan.
Under agenda item 1, does the committee agree to take agenda items 4, 5, 6 and 7 in private this morning?
Members indicated agreement.
Public Audit Committee
Meeting date: 19 February 2025
Richard Leonard
Agenda item 2 is consideration of the Auditor General for Scotland’s report, “Administration of Scottish income tax 2023/24”. I am very pleased to welcome our witnesses this morning. We are joined by the Auditor General, Stephen Boyle. Alongside the Auditor General are Carole Grant, an audit director, and Richard Robinson, a senior manager, both from Audit Scotland. I am also very pleased to welcome once again to the Public Audit Committee Gareth Davies, who is the Comptroller and Auditor General at the National Audit Office. Alongside Mr Davies is Darren Stewart, who is His Majesty’s Revenue and Customs financial audit director at the National Audit Office.
I think that you are aware that we are quite tight for time this morning. We have some important areas of ground that we want to cover with you, so if you are able to make your answers concise, that would be helpful—and I have leant on the committee to encourage concise questions. Before we get to those questions, I invite both Stephen Boyle and Gareth Davies to make opening statements. I will begin with you, Auditor General.
Public Audit Committee
Meeting date: 19 February 2025
Richard Leonard
Thank you very much indeed. I will turn to a couple of issues that both of you raised in your opening statements. In particular, Auditor General, you referred to something that is in your report. Exhibit 3 shows that £3.367 billion of additional income tax revenue has been raised from the Scottish population, but that that converts to additional budget spend of only £629 million. Presumably, that is a product of the fiscal framework. Do you have any observations about how the fiscal framework is working? What are the implications of that? As I calculate it, for every £5 raised, only £1 is available for the budget.
Public Audit Committee
Meeting date: 19 February 2025
Richard Leonard
I said at the start we are quite pressed for time, but can I ask you to confirm my calculation? The figure in exhibit 3 is a cumulative figure—I draw attention to it because it is one of your key messages. For every £5 that has been raised through additional income tax in Scotland, only £1 of that—or less than £1 of that; it is about 18 per cent—finds its way into the Scottish budget.
Public Audit Committee
Meeting date: 19 February 2025
Richard Leonard
Okay. Let me move on to another area that your report draws attention to and which you mentioned in your opening statement. The reconciliation figure for 2025-26 is £449 million—nearly half a billion pounds—which is the largest reconciliation to date. Is there a likelihood that that level of reconciliation will continue in the future? How does that affect the Scottish Government’s budget setting?
SPCB Supported Bodies Landscape Review Committee
Meeting date: 6 February 2025
Richard Leonard
Is your performance captured, recorded and publicly available?
SPCB Supported Bodies Landscape Review Committee
Meeting date: 6 February 2025
Richard Leonard
Yes. The other question that I wanted to ask if we had the time is about the measures that you have implemented to make sure that your office functions well within the landscape around public bodies, commissions and commissioners. Can you comment on that?
SPCB Supported Bodies Landscape Review Committee
Meeting date: 6 February 2025
Richard Leonard
You have powers of statutory investigation. Do you have powers of statutory enforcement?
SPCB Supported Bodies Landscape Review Committee
Meeting date: 6 February 2025
Richard Leonard
Yes. We are allowed to comment on that, but I recognise that you may not be.
I will turn to a couple of more technical questions that I hope that you will be able to answer in full. There are issues around measurement and reporting mechanisms. What are the gaps in the current reporting mechanisms that you use? Are there obstacles that you have identified? How are you, as the ombudsman, addressing those?