Public Audit Committee 17 December 2025
Many thanks indeed, convener, and good morning. I am presenting this report on the 2024-25 audit of the Scottish Government’s consolidated accounts under section 22 of the Public Finance and Accountability (Scotland) Act 2000. The Scottish Government’s annual consolidated accounts are a central part of its accountability to Parliament and the public. My independent audit opinions are unmodified, which means that the accounts provide a true and fair view, and meet legal and accounting requirements.
There are a few areas in particular that I want to highlight to the committee from my report. The first is that the consolidated accounts report a total expenditure of £56.3 billion, which is £1 billion less than budget. That is mainly due to £2.2 billion of additional consequentials that were received from the United Kingdom Government during the year. This avoided the need for previously announced spending control measures and the planned use of ScotWind revenues.
On financial sustainability, key financial documents were published earlier this year, but we have found that more detailed delivery plans are needed. We also note that the financial position of the Scottish public sector remains unsustainable. The public service reform strategy aims to accelerate workforce reforms, with significant changes also planned to public services.
Our report also covers the roll-out of Oracle cloud for the Scottish Government and 32 other public bodies at a cost of £59.5 million. The Scottish Government must now demonstrate, following introduction and implementation, that it is achieving value for money from the roll-out of the system, together with the full realisation of anticipated benefits.
The absence of a national performance framework means that the Scottish Government cannot yet clearly show that public spending is delivering the intended outcomes from its priorities. With on-going financial challenges, it is increasingly important that targeted spending is delivering maximum impact.
I have continued to have strong impact on sponsorship. Effective sponsorship arrangements are essential to balance oversight, assurance and the responsibilities of accountable officers. The Scottish Government still has work to do to ensure consistent and effective sponsorship across its public bodies.
In that regard, yesterday, I published a section 22 report on the 2024-25 audit of Historic Environment Scotland. It highlights unacceptable weaknesses in HES’s governance arrangements, including that the organisation operated without an accountable officer for almost six months. I recognise the committee’s likely interest in the matters contained in that report. I hope to have the opportunity to give evidence to the committee in detail on it in the coming weeks, when I will be joined by the appointed auditor of Historic Environment Scotland and the auditor of the Scottish Government. However, with that caveat, I will do my best to answer any interest in the issue that the committee has in general terms this morning.
As ever, Richard Smith, Carole Grant and I will do our utmost to answer the committee’s questions.