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Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
That is fine. I appreciate that. Thank you. Graham Simpson has some questions.
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
I will move on to an area that is highlighted in your report in exhibit 1, which is titled, “Progress on implementing devolved taxes in Scotland has been slower than planned”. That might be a bit of an understatement. For example, you refer to the devolved air departure tax, which was expected to be introduced on 1 April 2018. You refer to the assignment of VAT receipts, which was supposed to be sorted out with a transition year in 2019 and implemented by 2020. We are talking about seven and five years ago and neither of those taxes has been implemented. Could you shed some light on why there have been those delays, what the problems are, and who, if anybody, is to blame?
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
Thank you very much indeed. I am now going to turn to Colin Beattie, who has some questions for you.
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
That ends this very useful session. I take the opportunity to thank you again, Auditor General, for presenting that evidence and producing the report. I also take the opportunity to thank Thomas Charman and Richard Robinson for their evidence this morning. We need to consider what our next steps are, and we will take a bit of time to look at that.
I will suspend the meeting to allow for a changeover of witnesses.
10:47 Meeting suspended.Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
You have not read all of it. Which bits have you read?
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
That is fine. It is just that, in the course of this morning, we may turn to things that the Auditor General said.
Mr Watson, do you want to say anything at the outset?
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
Yes, but I do not think that any of us would accept that there was nothing to see here, Mr Watson.
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
That is not how the Auditor General viewed the situation when he gave evidence to us on 8 October, and we can return to that.
One of the things that have been reported is that, under your tenure as the principal and chief executive, there were five different finance directors. Why was that?
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
I will bring in Joe FitzPatrick in a second, but can I just take you back, Mr Watson, to some of the fundamentals here? When we took evidence from the Auditor General on 8 October, he said:
“I ... cannot recall, from my time in this role and during my career of auditing public bodies in Scotland, an organisation that has not prepared an annual budget.”
In your time—in your career—Mr Watson, have you ever been part of an organisation that has not prepared an annual budget?
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
We are talking about an organisation that is governed by the Public Finance and Accountability (Scotland) Act 2000 and is subject to the Scottish public finance manual. We are not talking about a private enterprise. We are talking about public money, which is why we expect certain standards to be met.
The Auditor General said:
“a budget gives an organisation an anchor with which to measure how it is progressing during the year.”
Margaret Cook, do you not accept that that is a fact?