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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Current session: 13 May 2021 to 14 January 2026
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Displaying 1396 contributions

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Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 11 November 2025

Ivan McKee

Do you mean rates of taxation?

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 11 November 2025

Ivan McKee

Indeed.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 11 November 2025

Ivan McKee

You say “significant”, but if you look at that example, I think that £18 million out of £305 million was carried forward, so around 94 per cent was spent. You make an assessment at the beginning of the process of what the demand will be. There are only three scenarios. We either hit it right on the button—which, statistically, is unlikely—or we spend more or we spend less. We have had conversations about spending more on certain demand-led services and less on others. There will always be—

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 11 November 2025

Ivan McKee

Good morning. The Scottish Government is once again on track to balance its budget despite continuing to face a challenging financial situation. Persistent high inflation, lower economic growth across the United Kingdom, the continued cost of living crisis and wider geopolitical events mean that careful consideration has had to be given to balancing the budget. The UK Government’s decision not to fully fund the increase in the rate of employer national insurance contributions has added to the challenges that we face in balancing the budget.

Our prudent management of the 2024-25 financial year has allowed us to carry forward £557 million through the Scotland reserve, which is being used in full to support the 2025-26 position. Those amounts, in addition to in-year Barnett consequentials and an anticipated increase in the social security block grant adjustment, allow us to provide additional budget cover across portfolios to meet the emerging pressures within this budget revision.

The autumn budget revision sets out the funding changes and amendments to the budget since the 2025-26 Scottish budget was set. The revision that has been allocated deploys almost £1.2 billion of additional funding to support our public services. It contains the usual four categories of changes. The net funding changes increase the budget by £1,137 million and include the provision of £697.5 million to support health services, £173.7 million to local government, additional funding for the increased pension age winter heating payment and the removal of peak rail fares.

All the consequential funding that has been received from the UK Government in respect of employer national insurance contributions is allocated out as part of the budget revision. The technical Whitehall and internal transfers are presented in the document in the usual way. The supporting document to the autumn budget revision and the finance update prepared by my officials provide further background on the net changes as well as updates on information that has been requested by the committee. I am happy to answer any questions.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 11 November 2025

Ivan McKee

I will provide the updated number to the committee to show you exactly where we are on that, but there has been a reduction so far in the first six months of the year, which will continue. We have targets for each of the next five years that we will deliver on, as we have in the past two years.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 11 November 2025

Ivan McKee

The total operating cost budget has been set during the spending review period. Taking inflation into account, there will be a year-on-year reduction in that budget.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 11 November 2025

Ivan McKee

Indeed—I am rehearsing my lines for next week.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 11 November 2025

Ivan McKee

The total budget across that area was just above £300 million, if you add up all the various schemes that are in play and the funds that are operated. The underspend is about £18 million, so, in the scheme of the £300 million and given that it is a demand-led service, that reflects the fact that 90 or 95 per cent was delivered.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 11 November 2025

Ivan McKee

As I said, the targets in relation to the corporate cost savings, which is one part of it, are clear. They have been allocated across the piece. In you look at, for example, the health portfolio through the portfolio lens, you will see that there will be more doctors, more nurses and more spend on various parts of the service, including social care. However, you will also see that the corporate costs are being reduced. Where that sits in the profile of the portfolio at the top level—level 2 or whatever—will depend on the amounts of corporate costs that are in each portfolio; however, there is a very clear focus on the corporate costs and the reductions in each portfolio, and on how they impact the overall budget.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 11 November 2025

Ivan McKee

It changes week on week.