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Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
This is my final question before I bring in other members of the committee.
I would be interested in your view on the Auditor General’s comment:
“we cannot help but conclude that that”
budget’s
“absence must have been a significant factor in the board of management being less able to control financial arrangements during that time.”—[Official Report, Public Audit Committee, 8 October 2025; c 5, 6, 2.]
You are shaking your head, Mr Wishart. I take it that you do not agree with that view.
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
Okay, but my point is that you have set aside your own financial regulations, both in your position and the position of the former principal and chief executive. I would also suggest that the people on the board have set aside their obligations under those financial regulations.
I will invite Joe FitzPatrick to come in on this budget question, before I invite Graham Simpson to ask his questions.
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
Thank you very much. Graham Simpson has some questions as well.
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
Thank you very much. We have heard quite a lot of useful evidence this morning and I think that you have been given an opportunity to put on the record some things that I know you feel inject some more balance into our committee considerations. As the deputy convener said, we very much appreciate you taking the time to come in and give us the benefit of your experience and your perspective on the Auditor General’s report.
As I said at the outset, in January 2026, I think, we are due to take evidence from some of the people who have taken your previous positions, as well as from the Scottish Funding Council and the wider University of the Highlands and Islands. That will give us an opportunity to put to them some of the things that you have said to us. You may wish to follow that with some interest.
Mr Watson, I think that you agreed to share with us the December 2024 letter. If any of you, on reflection after today, have anything else that you want to supply to us, we are quite happy to accept a note after today’s oral evidence session to help us prepare for the next round of evidence that we will take. Dr Cook, Mr Wishart and Mr Watson, thank you for coming in and for the evidence that you have presented to us this morning.
I move the committee into private session.
12:20 Meeting continued in private until 12:52.Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
I am struggling a bit to understand what that alignment between tax and economic strategy looks like. For example, the report alludes to the Government’s stated aim to reduce the size of the public sector workforce. Is that based on a theory of crowding out, with the private sector mopping up those jobs? Is it based on an understanding that if you have fewer people in work, income tax receipts are likely to fall? What about earnings growth? There has been some talk about public sector pay settlements. We will take evidence in our next evidence session this morning from people from the college sector, and college pay rises have been cited as one of the reasons why the further education sector is struggling a bit financially.
Are you suggesting or recommending that, as part of aligning economic strategy with tax, there is some straightforward analysis of what those public policy decisions mean for tax receipts?
10:00Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
I will bring Graham Simpson in, but before I do, I have one final question. I mentioned at the start that landfill taxation brings in 0.1 per cent of the Scottish Government budget and Scottish income tax brings in over 32 per cent—almost a third. Where would VAT assignments sit in that range?
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
Thank you. We now have a final set of questions from Joe FitzPatrick.
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
Thank you for making that opening statement. That is now on the record. In the interests of openness, I should say that we expect to have an evidence session with UHI and the Scottish Funding Council, as well as with the new principal and chief executive, in the new year. Those are important points on the record that we will be able to put to them.
Before I turn to Mr Watson, to see whether he wants to add anything, do you accept the findings of the Audit Scotland section 22 report, Dr Cook?
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
Okay. We will get into that this morning. Are you saying that you do or you do not accept the findings and the recommendations in the section 22 report?
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
Did you read the Official Report?