– in the Scottish Parliament at on 6 March 2024.
Kenneth Gibson
Scottish National Party
3. To ask the Scottish Government what assessment it has made of the impact on its financial planning process of the United Kingdom Government having autumn and spring statements, in light of reported calls for a multiyear budget approach. (S6O-03160)
Tom Arthur
Scottish National Party
In short, that process does not have a positive impact.
Due to the lateness of the autumn statement and the lack of any advanced sight of the impacts of the decisions that have been taken in the autumn statement, our budget process was later than we would have desired. Now, only a week on from stage 3 of our Budget (Scotland) (No 3) Bill being voted on in this Parliament, we have a UK spring budget, which will have an impact on our budget plans.
We recognise that greater certainty over the medium term would help organisations to plan ahead but, sadly, we are tied to the UK budget process, which is rendering it nearly impossible to deliver that meaningfully. After all, we are still in a position in which we have faced more negative consequentials to financial transactions in recent weeks. Therefore, even after our budgets have been set, they are still open to being impacted by UK Government actions.
Kenneth Gibson
Scottish National Party
I thank the Minister for that comprehensive reply.
It is clear that the Chancellor of the exchequer’s two UK Westminster budgets in less than four months, which are desperately aimed at holding on to a few extra seats, can only play havoc with Scotland’s budgeting processes. Nevertheless, the Accounts Commission has long argued that, even in such circumstances, long-term budgeting will still bring efficiencies and better service delivery for local authorities. Is that not also the case with the Scottish Government?
Tom Arthur
Scottish National Party
Indeed. Given the disappointment of both the autumn budget statement and the spring budget statement, we are considering our resource spending outlook in light of further funding changes and the actions that are needed to deliver sustainable finances.
The Scottish Government continues to review and to seek to improve its financial planning processes, including by improving multiyear planning through spending reviews to support better planning overall. We also recognise that certainty over the medium term would help organisations to plan ahead.
It will take time to analyse the impacts of the Chancellor’s statement on Scotland and the people of Scotland before we can set out next steps. We are considering the implications for the Scottish budget of what the chancellor has set out today, and we will take proposals to the Cabinet for consideration before the Deputy First Minister returns to Parliament in due course.
Elizabeth Smith
Conservative
On the multiyear theme, the Scottish Government said last year:
“wherever possible multi-year certainty will be provided to support strategic planning and investment” for local authorities. What progress has been made on that?
Tom Arthur
Scottish National Party
As I touched on in my earlier remarks, we are seeking to do that and to engage with our partners. What makes this a challenge—as was discussed yesterday at the Finance and Public Administration Committee—is the uncertainty around our fiscal position with regard to the UK Government. We face that uncertainty throughout the year due to the rhythm of UK fiscal events.
We will continue to engage with partners to identify ways in which we can provide long-term certainty but, ultimately, if our budget is subject to long-term uncertainty because of actions of the UK Government, that makes it very difficult for us to provide certainty to partners.
The chancellor of the exchequer is the government's chief financial minister and as such is responsible for raising government revenue through taxation or borrowing and for controlling overall government spending.
The chancellor's plans for the economy are delivered to the House of Commons every year in the Budget speech.
The chancellor is the most senior figure at the Treasury, even though the prime minister holds an additional title of 'First Lord of the Treasury'. He normally resides at Number 11 Downing Street.
Ministers make up the Government and almost all are members of the House of Lords or the House of Commons. There are three main types of Minister. Departmental Ministers are in charge of Government Departments. The Government is divided into different Departments which have responsibilities for different areas. For example the Treasury is in charge of Government spending. Departmental Ministers in the Cabinet are generally called 'Secretary of State' but some have special titles such as Chancellor of the Exchequer. Ministers of State and Junior Ministers assist the ministers in charge of the department. They normally have responsibility for a particular area within the department and are sometimes given a title that reflects this - for example Minister of Transport.
The cabinet is the group of twenty or so (and no more than 22) senior government ministers who are responsible for running the departments of state and deciding government policy.
It is chaired by the prime minister.
The cabinet is bound by collective responsibility, which means that all its members must abide by and defend the decisions it takes, despite any private doubts that they might have.
Cabinet ministers are appointed by the prime minister and chosen from MPs or peers of the governing party.
However, during periods of national emergency, or when no single party gains a large enough majority to govern alone, coalition governments have been formed with cabinets containing members from more than one political party.
War cabinets have sometimes been formed with a much smaller membership than the full cabinet.
From time to time the prime minister will reorganise the cabinet in order to bring in new members, or to move existing members around. This reorganisation is known as a cabinet re-shuffle.
The cabinet normally meets once a week in the cabinet room at Downing Street.
The Chancellor - also known as "Chancellor of the Exchequer" is responsible as a Minister for the treasury, and for the country's economy. For Example, the Chancellor set taxes and tax rates. The Chancellor is the only MP allowed to drink Alcohol in the House of Commons; s/he is permitted an alcoholic drink while delivering the budget.
Ministers make up the Government and almost all are members of the House of Lords or the House of Commons. There are three main types of Minister. Departmental Ministers are in charge of Government Departments. The Government is divided into different Departments which have responsibilities for different areas. For example the Treasury is in charge of Government spending. Departmental Ministers in the Cabinet are generally called 'Secretary of State' but some have special titles such as Chancellor of the Exchequer. Ministers of State and Junior Ministers assist the ministers in charge of the department. They normally have responsibility for a particular area within the department and are sometimes given a title that reflects this - for example Minister of Transport.
