Chamber and committees

The SFC’s Fiscal Sustainability Report is an important contribution to the debate on fiscal sustainability and highlights potential impacts of demographic change on the Scottish public finances over the next fifty years. These challenges are not unique to Scotland, and are prevalent in many high-income countries. However, Scotland lacks a full range of levers to deal with these in the way that other countries can, particularly over migration.

Within the powers at its disposal, the Scottish Government is committed to ensuring the public finances are on a sustainable trajectory. This will mean growing our economy and by extension our tax base, and embedding delivery and value for money at the heart of our public services. Central to this will be overseeing public service reform, focused on delivering more efficient, person-centred public services. The Fiscal Framework review will also be vital and must ensure the Scottish Government and Parliament has the necessary powers to manage the risks we face within our devolved responsibilities, and to support economic recovery. The Scottish Government’s approach to managing the public finances over the medium-term is set out in the Medium Term Financial Strategy, due to be published in May 2023.

In 2023 we will also launch a new Talent Attraction and Migration Service for Scotland, and publish an Addressing Depopulation Action Plan. And we will continue to press the UK Government to make the vital immigration reforms required to meet Scotland’s needs.

While the Scottish Government will continue to manage the public finances diligently with the powers we have, it is our view that the current constitutional settlement is insufficient to properly tackle the long-term challenges that Scotland faces. Ultimately, Scotland must be independent with full control over the economy and powers over migration to secure the stability of our public finances.