Legacy report of the Finance and Public Administration Committee, Session 6

While the Committee recognises that our successor committee will wish to carve its own path in Session 7, the recommendations in this report are focused on areas intended to support it to carry out effective and robust scrutiny, rather than being prescriptive on potential inquiry topics.

The Committee recommends that its successor committee—

Continues to examine the adequacy of the Scottish Government’s medium-term financial planning, including its key strategic budgetary documents such as the annual Medium-Term Financial Strategy.

Ensures the Scottish Government is carrying out long-term financial planning that responds now to the significant fiscal sustainability challenges highlighted by the Scottish Fiscal Commission, such as demographic trends and climate change.

Continues to press the Scottish Government for more detailed information to demonstrate how it prioritises and deprioritises spending and to consider the extent to which a zero-based budgeting approach can be adopted for future Scottish Spending Reviews.

Builds on the Committee’s scrutiny of the Scottish Government’s prioritisation of spending and of fiscal risks, such as the growing social security budget and public sector pay bill, within the overall context of fiscal sustainability.

Urges the Scottish Government to build on improvements in the availability of data and transparency of budgetary information, including the baselining of all routine transfers.

Develops with the Scottish Government a clear definition and baseline for preventative spending, including considering outcomes of the current pilot exercise involving ‘budget-tagging’ of preventative spend.

Considers with the Scottish Government ways of building more transparency into the Parliament’s scrutiny of contingent liabilities.

Continues to press the Scottish Government for timely publication of key financial planning documents in line with the Budget Process Agreement, to try to avoid the repeated delays in publication and their significant impacts on parliamentary scrutiny experienced in Session 6.

Considers and agrees an early timetable for publication of the next Medium-Term Financial Strategy following the 2026 elections.

Builds on the recommendations of this Committee to ensure it has the level of detail required in key financial planning documents to support effective parliamentary scrutiny.

Carries out further and enhanced scrutiny of the Scottish Spending Review (SSR) and Infrastructure Delivery Pipeline (IDP), building on the Committee’s evidence sessions held in February and March 2026, with a view to making recommendations for future SSRs and IDPs.

Considers how to approach scrutiny of the six-monthly updates to be provided by the Scottish Government on progress with delivering the projects and programmes set out in the IDP.

Works with the Scottish Government and Scottish Fiscal Commission to agree an optimal timeframe for publishing the Scottish Budget after the UK Budget, striking a balance between ensuring sufficient time to formulate tax and spending proposals and forecasts, and protecting time for Parliamentary scrutiny of them.

Presses the UK Government to publish the UK Budget in late October to avoid unacceptably short timetables for Scottish Budget scrutiny, as happened in January 2026.

Maintains a clear focus on the upcoming fiscal framework review, ensuring that the priority areas identified by this Committee are included within the scope of the review, and pressing both the Scottish and UK Governments for an open and transparent review process.

Initiates a joint review of the Scottish budget process mid-session, building on the findings in this Committee’s report on the budget process in practice.

Works with the Scottish Government to enhance public understanding around both the fiscal framework and the Scottish budget process.

Continues to press the Scottish Government to work with the UK Government to address anomalies relating to marginal tax rates.

Works with the Scottish Government and the Scottish Fiscal Commission to address poor levels of public understanding of tax.

Scrutinises the viability of introducing new taxes that generate relatively low levels of income.

Considers undertaking an inquiry into the wider Scottish approach to taxation, including how taxes interact and contribute to fiscal sustainability along with their behavioural impacts. This work could also include an in-depth look at options for reform of local taxation.

Considers the merits of introducing a legislative process that enables the regular maintenance of, and amendment to, devolved taxes.

Closely monitors the extent to which Financial Memorandums follow the requirements and guidance in the Scottish Public Finance Manual and provide, as required, best estimates for the costs and savings associated with new Bills, paying particular attention to framework legislation.

Considers options for automatic notification to the Committee of supplementary and revised Financial Memorandums.

Continues to press the Scottish Government to provide regular updates on Financial Memorandums alongside the Medium-Term Financial Strategy, where requested.

Develops a streamlined call for views on Financial Memorandums alongside a checklist for the officials who draft them.

Considers the merits of carrying out post-legislative scrutiny of Financial Memorandums, particularly for framework Bills. Financial Memorandums that might benefit from post-legislative scrutiny include those for the following Bills, when the policy has had some time to ‘bed in’—
Police (Ethics, Conduct and Scrutiny) (Scotland) Bill 1 Scottish Parliament. (n.d.) Police (Ethics, Conduct and Scrutiny) (Scotland) Bill. Retrieved from https://www.parliament.scot/bills-and-laws/bills/s6/police-ethics-conduct-and-scrutiny-scotland-bill
Victims, Witnesses, and Justice Reform (Scotland) Bill 2 Scottish Parliament. (n.d.) Victims, Witnesses, and Justice Reform (Scotland) Bill. Retrieved from https://www.parliament.scot/bills-and-laws/bills/s6/victims-witnesses-and-justice-reform-scotland-bill
Agriculture and Rural Communities (Scotland) Bill 3 Scottish Parliament. (n.d.) Agriculture and Rural Communities (Scotland) Bill. Retrieved from https://www.parliament.scot/bills-and-laws/bills/s6/agriculture-and-rural-communities-scotland-bill

Continues to monitor progress with the Scottish Public Pensions Agency’s delivery of the McCloud Remedy, given that deadlines for completing this Remedy have repeatedly been missed and the uncertainty this brings for those with public pension schemes.

Examines the Scottish Government’s next iteration of the National Performance Framework including any associated implementation plans, building on the findings in our 2024 report.

Seeks improved data to promote better understanding of the effects of budgetary decisions on outcomes, including well-developed national indicators at the outset.

Continues to monitor updates on progress in delivering the Scottish Government’s Public Service Reform programme given its important role in ensuring fiscal sustainability. This scrutiny could include examining the delivery of efficiencies and their impact on public service delivery, as well as the streamlining of Government strategies and the size of the public sector.

Continues to assess the effectiveness of the Scottish Government’s decision-making processes, including ensuring that its decisions are clearly evidence-based.

The Committee also makes the following recommendations to the Parliament, reflecting the findings of our work on public administration:
That the next finance committee retains public administration as a distinctive area of its remit. Scrutiny of futures thinking should also be included within the public administration remit.
That the recommendations agreed by Parliament on Scotland’s Commissioner landscape, including relating to committee remits for scrutiny and assessment of proposals to create new SPCB supported bodies are fully implemented.
That scrutiny of public inquiries is added to the remit of a Parliamentary committee.

As noted above, the working practices adopted by the Committee have played a crucial role in its ability to deliver robust scrutiny and impactful work. We therefore recommend that our successor takes a similar approach, including:
Embedding a culture where effective, constructive collaboration and consensus amongst Members delivers robust and effective scrutiny and a strong reputation for impactful outcomes.
Striving to take decisions unanimously wherever possible.
No pre-scripted questions from the Scottish Parliament Information Centre (SPICe) or the clerks, to enable Members to build up their own knowledge and expertise and provide more opportunities for Members to follow their own lines of questioning.
A strong preference for ‘in-person’ attendance by Members and witnesses wherever possible.
Effective leadership from the Convener, including fairness and protecting the interests of all Committee members to scrutinise effectively.
Allowing Members during evidence the time to develop a narrative and lines of questioning.
Appointing advisers to support specific pieces of work such as on public administration issues, as well as a budget adviser to support its financial scrutiny throughout the session.