Inquiry into the Scottish budget process in practice

Please note: you do not need to answer all of these questions.

Part 1: Four objectives to the budget process

1. To what extent have the following four objectives for the Scottish budget process been met this parliamentary session – please address each in turn:

• greater influence on formulation of the Scottish Government’s budget proposals
• improved transparency and increased public understanding and awareness of the budget
• effective responses to new fiscal and wider policy challenges
• better outputs and outcomes as measured against benchmarks and stated objectives? 

2. Please set out any barriers to meeting the four core objectives of the budget process and suggestions as to how these might be overcome. 

Part 2: Medium-Term Financial Strategy (MTFS)

The MTFS aims to focus on the longer-term sustainability of Scotland’s public finances and support a strategic approach to financial planning. 

The MTFS is expected to be published annually after the UK Spring Statement and at least four weeks before summer recess. 

3. To what extent does the MTFS support a more strategic approach to the Scottish Government’s financial planning?  

4. How is the MTFS currently used by parliamentary committees and how might it be further developed to support effective scrutiny and a strategic approach to financial planning? 

Part 3: Fiscal Sustainability Delivery Plan

The Scottish Government said it will publish a Fiscal Sustainability Delivery Plan alongside the MTFS 2025 for the first time. 

The government say this will support fiscal transparency and “stable ground” for longer-term financial planning.  

5. What key areas should the Fiscal Sustainability Delivery Plan include to ensure it supports fiscal transparency and “stable ground” for longer-term financial planning?  

6. How should parliamentary scrutiny of this Plan, a new aspect of the budget process, operate? 

Part 4: Approach to spending reviews
 
The Scottish Government is expected to carry out a spending review linked to the equivalent UK spending review. 

In advance, it is required to publish a framework document setting out the economic and political context, the criteria which will govern the assessment of budgets and the process and timetable for the spending review.

7. Learning from the practice of this parliamentary session, how should the Scottish Government approach future spending reviews?

Part 5: Effectiveness

Weaknesses previously identified in the budget process include that it did “not take sufficient account of the interaction of the UK budget timetable with the Scottish budget timetable, and that parliamentary influence on the formulation of the budget has been limited”. 

8. To what extent has the full year budget process addressed this weakness? Please set out the reasons for your response and any suggestions on how any remaining weaknesses could be better addressed.
 
9. How effective is current public engagement in the budget process and are there any ways in which this can be improved?

10. What adjustments do you consider are required to enhance the overall effectiveness of the budget process?
  
11. Are any changes needed to the information, guidance and support provided to parliamentary committees to better support effective budget scrutiny?