Finance Committee publishes budget report

CFIN004/2005 | 14 December 2005

The Scottish Parliament's Finance Committee has questioned the Scottish Executive's "inequitable" treatment of local government in its report on its Draft Budget for 2006-07 published today.

The report contains detailed criticism of the Executive for the way in which it has dealt with its Efficient Government programme and its treatment of local government.

While the committee was pleased with changes made to the budget process this year, it has highlighted a number of issues of concern on the budget itself:

• Executive departments have been asked to make fewer efficiency savings than both local government and health. In addition, Executive departments have been allowed to reinvest any money they save whereas a proportion of local government's savings were taken off its budget.

• There is a potential shortfall in local government finance which could impact on either local services or council tax

• The Executive has not provided the information necessary to monitor the delivery of efficiency savings;

• The committee wants to see the accountability of parliamentary nominated commissioners and ombudsman (eg, Children's Commissioner, Freedom of Information Commissioner and Public Services Ombudsman) strengthened, especially in relation to setting budgets

The Convener of the committee, Des McNulty said:

"Our committee has raised questions over whether the delivery of efficiency savings can be properly monitored and over the inequitable treatment of local government.

"We are asking the Executive to look again at the efficiency savings it has set for its own departments and to look again at its approach of imposing budget cuts in areas which affect front-line services, such as local government and health.

"On the issue of commissioners - we believe that their independence must be safeguarded but it is equally important that no-one feels they can write a blank cheque to carry out their functions."

The committee has made a number of recommendations for ways in which these concerns can be addressed including:

• that Audit Scotland clarify publicly what they believe is now possible in terms of ensuring the transparency of the process, the establishment of baselines and future monitoring of the Efficient Government initiative and what they believe is appropriate for the longer term.

• a review of the powers of direction in relation to the various parliamentary appointed commissioners and ombudsman in the legislation which set them up. On the assumption that there is a gap in the legislation with regard to budgetary control, then the necessary steps should be taken to strengthen the budgetary powers of the SPCB in relation to the bodies its funds

Parliament will debate the committee's report on 21 December 2005.

Background

The Draft Budget sets out the Executive's spending plans for the £29 billion which comprises its budget for 2006-07.  The Finance Committee is responsible for the overall scrutiny of the Budget and for co-ordinating responses from the Parliament's subject committees on the spending plans for their respective portfolios.

The next stage in the budget process will be for the Executive to bring forward its annual Budget Bill in January which will legislate for spending in 2006-07.

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