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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 28 November 2025
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Displaying 1215 contributions

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Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 8 March 2022

Tom Arthur

Yes, that is correct. To touch on that point, I am confident that we will be in a position not only to ensure that we are within budget but that we are able to take that carry forward into the reserve, which was part of the budget process. That resource will be found, as I mentioned, from a stronger than forecast performance of devolved taxes and emerging underspend in some demand-led areas. As it stands, we are confident that we will not only be able to spend within our budget limit but will have that carry forward in the reserve to meet next year’s budget requirements.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 8 March 2022

Tom Arthur

The broader point that I seek to make is that we need to spend, as you are aware, and we cannot exceed our expenditure limits as set by Treasury. We have a reserve totalling £700 million. Looking at the quantum of the Scottish budget as a whole, we have that very limited space in which to land. We cannot go over. We cannot overspend and we cannot underspend beyond what we can take forward in the reserve—and I am sure that members would rightly be criticising why resource had been lost. That is an extremely challenging set of circumstances. The way that I and others have articulated it is that it is like trying to land a 747 on a postage stamp.

As we move into the latter part of the year we, then have fiscal events including the autumn budget and potentially more in-year funding announced. We then have supplementary estimates. This year, we did not have confirmation of what the supps were going to be until about three weeks after we published the SBR. That creates an incredibly challenging set of circumstances in which to operate, and that compounds the existing challenges that we are all aware of, which meet any government or organisation managing its finances towards year end.

I take the point that you make about needing to provide as much clarity as possible, and I am happy to reflect on that. As I hope the way in which we have presented this information would indicate, I am committed to doing as much as possible to aid transparency and understanding, and I recognise the points that have been raised.

Do you wish to add anything, Scott?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 8 March 2022

Tom Arthur

This is an important point, and I will ask Scott Mackay to come in on it.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 8 March 2022

Tom Arthur

I would be happy to provide you with an up-to-date picture. As Niall Caldwell said, that is a conservative estimate. I would be happy to give you a rounded picture of the support that has been provided, if that would be helpful.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 8 March 2022

Tom Arthur

It expires at the end of next year.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 8 March 2022

Tom Arthur

Yes.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 8 March 2022

Tom Arthur

I recognise that there is significant interest in this area. Would it perhaps be helpful for us to write to the committee with further technical information, given the considerable interest? I am also happy to arrange any follow-up sessions that would be useful. How the economic modelling is devised is a highly technical matter. If the committee would be content with that, I would be happy to arrange for that to take place.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 8 March 2022

Tom Arthur

We work very closely with partners in delivering the programme. Earlier, I set out the broad, strategic framework. We are obviously considering the impact on resourcing in the context of the work that the Government is doing with partners to deliver housing, but the issue is not unique to Government. Private developers will be experiencing the same constraints around supply.

I reassure you that we have a clear commitment to our support for affordable housing, but the challenges that we are facing are ultimately outwith our control, although we certainly do what we can within the Government to help to address the issues around supply chains and logistics. However, as I am sure that you appreciate, these are broad, global issues that are impacting many economies across Europe and North America.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 8 March 2022

Tom Arthur

Yes, certainly. It was a combination of reductions in demand-led expenditure, so it comes back to my earlier point about demand-led areas. It was also about a number of efficiency savings. We have had some of the lower lines of the budget for the young persons guarantee, but the largest element related to the national transition training fund; some of the costs are being reprofiled into next year.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 8 March 2022

Tom Arthur

That is a fair point. We want to see the maximum uptake of any scheme, particularly in relation to employability. We can continue to reflect on that. Some of it has also been about delivering the scheme more efficiently and another aspect, as I referred to, is the reprofiling into the next financial year.