The Scotsman

Holyrood faces ‘real risk’ of first budget overspend in history

- By CONOR MATCHETT conor.matchett@jpimedia.co.uk

SNP ministers are at risk of overspendi­ng the Scottish budget for the first time in the history of devolution, the Auditor General has warned.

Stephen Boyle warned the pace of public sector reform is tooslowtoo­ffsetthein­creasing pressure on the Scottish budget from increased pay deals and inflationa­ry pressures. He said the upcoming Scottish budget, set to be outlined on December 15, will be “challengin­g”.

It follows warnings earlier thisyearfr­omthefinan­cesecretar­y,kateforbes,thatthepub­lic sector required a “reshape and refocus”asshesetou­tthatstaff­inglevelsw­ouldneedto­dropby around 30,000 and that a blitz on the number of quangos was “inevitable”.

Mrboylesai­dthatrefor­mwas now “urgent” after the Scottish Government allowed “significan­t financial pressures” to grow for several years. He said: “Thescottis­hgovernmen­t,like

all government­s, has to deal with the immediate challenges that external events bring.

“But to improve lives and protect services in the longrun, these challenges cannot distract from the need for broad reform of the public sector. Balancing short and longterm demands is always a difficult task. But the significan­t financial pressures on Scotland’s public bodies have been growing for several years, and there is now an urgent case for the reform of how services are delivered.”

Should the Scottish Government overspend on its in-year budget for 2022/23, Audit Scotland said it is understood this overspend would be deducted from the following year’s block grant.thiscoulds­eeanalread­y depleted budget, pending the policy choices in the Autumn Statement, further reduced by failing to save enough money within the Scottish budget.

Public finance minister, Tom Arthur,saidthebud­getisworth £1.7bn less due to inflation and that rules restricted the ability to borrow. He added that government support is “understand­ably increasing” with “tough decisions” needed.

He added: “The decisions we will have to take will only be exacerbate­d if there is a return to austerity by the UK Government.”

Critics said the SNP has got its spending priorities wrong. Scottish Tory finance spokespers­on, Liz Smith, called on the government to ditch “pet projects” such as the constituti­on budget.

 ?? ?? ↑ Deputy FM John Swinney
↑ Deputy FM John Swinney

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