Remit
“To carry out a fundamental review of the Scottish Parliament’s budget process following the devolution of further powers in the Scotland Act 2012 and Scotland Act 2016. To bring forward proposals for a revised budget process which are consistent as far as possible with the principles of the Financial Issues Advisory Group for consideration by the Finance Committee and the Cabinet Secretary for Finance and the Constitution.“
Final Report
The Budget Process Review Group's Final Report is published below;
Interim Report
The Budget Process Review Group's Interim Report was put out for consultation on 10 March and can be accessed here;
The consultation closed on 28 April and the written responses can be accessed below;
The Budget Process Review Group commissioned external research from Joachim Wehner Associate Professor in Public Policy, from the London School of Economics and Political Science. Professor Wehner's report is published below;
Membership
Scottish Parliament
Dr Jim Johnston (Chair) |
Clerk, Finance Committee |
Dr Stephen Herbert |
Senior Assistant Clerk, Finance Committee |
Allan Campbell |
Head of Financial Scrutiny Unit, SPICe |
David Eiser |
Adviser, Finance Committee |
Scottish Government
John Nicholson |
Deputy Director for Financial Scrutiny and Outcomes |
Aidan Grisewood |
Deputy Director for Fiscal Responsibility |
Scott Mackay |
Deputy Director for Finance Programme Management |
Simon Fuller |
Deputy Director for the Office of the Chief Economic Adviser |
External Experts
- Caroline Gardner, Auditor General
- Don Peebles, Head of CIPFA Scotland
- John Ireland, Chief Executive, Scottish Fiscal Commission*
- Professor James Mitchell, Director of Academy of Government, University of Edinburgh
- Dame Sue Bruce, Non Executive Director
- Dr Angela O’Hagan, Glasgow Caledonian and Gender Budgeting expert
- Elaine Lorimer, Chief Executive of Revenue Scotland
- Professor Mike Danson, Heriot-Watt University
* John Ireland took over from Sean Neill, Interim Chief Executive, from May 2017.
Approach
Stage 1: Assess the likely impact of the increased level of responsibility to the effectiveness of the existing budget process arising from the new powers including the potential impact of:
- forecasting of tax receipts and demand-led social security spending;
- the operation of the indexation mechanism;
- the calculation of the adjustments to the block grant;
- the reconciliation between tax receipt forecasts and outturn figures;
- the UK Government’s Autumn Statement;
- the availability of relevant outturn data;
- associated revenue effects of tax change behaviours.
(This Stage should include a review of the Draft Budget 2017-18 process.)
Stage 2: Devise a revised budget process which addresses the increased level of responsibility within the context of the FIAG principles:
- Provide opportunities for the Parliament to comment on expenditure priorities and to influence the Executive’s preparation of Budgets;
- Provide the opportunity for the public to have the opportunity to put their views to subject committees, as well as individual MSPs at an early stage in the process;
- Provide sufficient time for the Parliament to consider and debate proposals fully;
- Provide balance between the requirement for Parliamentary scrutiny and the needs of the Executive;
- Provide some degree of certainty so that on-going activities can continue without prolonged uncertainty;
- Provide an efficient mechanism to deliver motions to be debated by the Parliament;
- Provide a meaningful role for subject committees and the Finance Committee;
- Deliver timeous decisions on tax varying power and the Budget (as well as the interim spending approval and budget amendments);
- Engages all MSPs;
- Facilitates the Executive’s formulation of proposals; and
- Provides for the right of amendment.
Timetable
- Stage 1 to be completed by end of February;
- Stage 2 to be completed by end of May ;
- Report findings to Ministers and Finance Committee for agreement before Summer recess;
- Plenary debate in the Chamber on agreed changes to the Written Agreement in early September;
- Write to the Standards, Procedures and Public Appointments Committee with recommendations for any associated changes to the Standing Orders before Summer recess.
Finance Committee Clerks
Scottish Government Officials
August 2016