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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: 5 March 2024

Tom Arthur

We are all familiar with the rules that govern these inquiries and their autonomy and independence.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

When inquiries are established and in train, we of course comply with the legislative requirements .

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

Decisions on borrowing, which are one of the few flexibilities that we have, are taken at the end of the year. The capital position has allowed us to move to the position that you have outlined.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

Yes.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

Could you clarify what your question is, Mr Mason?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

We have seen the Scotland reserve operate in different ways. Clearly, given the way in which we have to balance our budget, it is unavoidable that underspend will be generated, and, sometimes, that underspend will emerge after the end of the year. We have also seen the reserve play an important role when we received late consequentials, particularly when we were coming out of the pandemic period, which has allowed us to ensure that resources better align with the optimal time to spend them. We have seen the reserve operating in those two ways.

As to whether the reserve develops into more of a reserve rather than continues as a function for allowing money to be moved from one year to the next, that will depend on a number of factors. The most prominent of those will be the fiscal settlements that we receive from the UK Government, and there will be demand commitments and so on. Is there anything that you want to add, Scott?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

We can certainly incorporate the high-level impact of inflation on capital projects and of construction pressures in the construction sector in the response to the committee.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

Again, as I said, I am happy to see whether we can cover some of that in our correspondence to the committee.

The capital is in-year as opposed to the next financial year. It is there to support the existing position and the on-going cost pressures in the health portfolio. The capital is allocated to support the existing activity that is taking place in this financial year.

On your broader point about what those pressures are and, indeed, about the different ways in which capital is used, whether it be for new projects or for maintenance for example, I would be happy to try to pick some more detail on the issue of capital expenditure with regard to construction and maintenance.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

Certainly. There are areas where it has not been possible to deliver the spend in-year. That is the case in the building programme, for example. There are other elements where work is still on-going in business cases, for example, which has meant that money could not be spent in-year. I will ask Scott Mackay to come in on the specific point on the Scottish Water borrowing.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Tom Arthur

As I touched on, it will cover a range of capital expenditure across the health portfolio. I recognise the interest in the capital position going forward, but that money is to support the in-year position, recognising the range of pressures that the health portfolio is facing. All I can say is it broadly supports capital expenditure across the health portfolio.