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Chamber and committees

Finance and Public Administration Committee


Response on process and timetable around Scottish Budget 2022-23

Letter from the Convener to the Cabinet Secretary for Finance and the Economy of 7 September 2021

Dear Cabinet Secretary

 

Thank you for your letter of 30 August setting out your initial thoughts on the process and timetable relating to the Scottish Budget 2022-23. It was helpful to discuss these issues with you further at the Committee’s evidence session the following day. 

 

The Committee appreciates the challenges associated with setting the timetable for the budget process while there is still uncertainty around the timing of the UK fiscal events. That said, our primary priority is to maximise the opportunity for effective and meaningful parliamentary scrutiny throughout the budget process and we would therefore support reverting to the timetable envisaged in the Written Agreement between the Committee and the Scottish Government, as suggested in your letter. Our strong preference however is for the Scottish Budget 2022-23 to be published in early December, with a view to preserving time for all committees to familiarise themselves with the Scottish Government’s spending plans and consider their approaches to scrutiny. We are content for our officials, in early course, to discuss exact timings for publication of the Budget 2022-23 this calendar year, along with dates for parliamentary scrutiny, and report back to the Committee for further consideration.

 

Linked to these timings, your letter refers to the UK Government having indicated that work supporting a multi-year spending review is ongoing and set to conclude in the autumn. As set out in the Written Agreement between this Committee and the Scottish Government, there is a presumption that the Scottish Government will carry out a Spending Review, linked to the equivalent UK Spending Review. There is also a requirement on the Scottish Government to publish a framework document setting out the economic and political context, the criteria which will govern the assessment of budgets and the process and timetable for review. The Committee is mindful that the Written Agreement envisages time for the Parliament’s committees to undertake “constructive dialogue with Ministers, public bodies, and stakeholders once the Framework is published in order to influence the outcome of the Spending Review”. We would therefore welcome an indication of when you might expect to publish the Spending Review and preceding framework document and, again, we are happy for our officials to progress discussions on this matter and then report back to Committee.

 

The Committee welcomes your intention to return to a May publication date for the Medium-Term Financial Strategy (MTFS) in 2022. We have also given careful consideration to the timing of this year’s MTFS. Reflecting on your concerns, we accept your proposal that the MTFS be published alongside the Scottish Budget 2022-23, subject to both documents being published in early December. To ensure that scrutiny of the MTFS is not compromised by the timing of publication, the Committee will consider, as part of its forward work programme, how it can schedule specific time to examine the MTFS after it is published.

 

The Committee is content with your proposal to publish the Fiscal Framework Outturn Report on 1 October this year, rather than in line with the September recommendation of the Budget Process Review Group. This timetable would still allow the Committee to scrutinise the Report during our planned evidence session with you in relation to pre-budget scrutiny in early October.

 

Finally, we appreciate receiving advance notification of publication of the draft Framework for Tax on 31 August. As you will be aware, the Session 5 Committee’s Legacy Expert Panel recommended that we undertake further work on Scottish tax policy, so we will keep a close interest in the consultation. The Panel also noted that the Devolved Taxes Legislative Working Group should be an early priority for this Committee and we are therefore content for the Group to be reconvened by officials.

 

I look forward to continuing our dialogue on these important matters in the weeks ahead.

 

Yours sincerely

Kenneth Gibson

Convener

Finance and Public Administration Committee