THE Scottish Government should take a more strategic approach to allocating funding, according to a new report.
Holyrood’s Finance and Constitution Committee releases its Budget report today, saying new powers over social security and taxation mean amounts in the public purse will vary from year to year.
MSPs said ministers should consider whether distributing all available funds each year is sustainable. The committee urged the UK Government to consider its findings and look into allowing the Scottish Parliament to have more powers on borrowing.
Convener Bruce Crawford said there was a need for a medium-term approach, suggesting instituting multi-year budgets for public bodies in a bid to improve forward planning.
He called on the Scottish Government to implement the changes in its next medium-term financial strategy.
READ MORE: Michael Russell: Constitutional convention plans being drawn up
Crawford, who recently announced he is stepping down before the 2021 Holyrood elections, also urged the UK Government to consider the proposals made in the report as Holyrood calls for increased fiscal powers to be transferred.
He said: “A key theme in this report is the increasing volatility and complexity of Scotland’s Budget and the need to look beyond a one-year horizon approach.
“Our report seeks to address the risks and opportunities that arise from an increasingly complex landscape, both politically and economically.
“Our committee recognises the fundamental challenges the Scottish Government faces in managing the volatility that arises from the operation of the fiscal framework, while also meeting its statutory obligation to balance its Budget annually. In that light, we recommend HM Treasury carefully examine the issues raised in our report when considering the Scottish Government’s request for additional resource borrowing and reserve powers to help manage volatility.”
He added: “We are also of the view, however, that there needs to be a clear strategy for the use of the existing Budget management tools.
“We recommend therefore that the Scottish Government’s next medium-term financial strategy should set out the basis for a more strategic approach to budgetary management.
“It should look beyond the current annualised approach and seek to address medium-term volatility and risk, as well as the possibility of multi-annual budgets for the public bodies.
“But the committee is also aware it will be challenging to develop this approach in the absence of a UK comprehensive spending review.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here