Committee
Finance and Public Administration Committee 17 February 2026 [Draft]
17 Feb 2026 · S6 · Finance and Public Administration Committee
Item of business
Subordinate Legislation
Budget (Scotland) Act 2025 Amendment Regulations 2026 [Draft]
In terms of that year-end adjustment number, we always have to make an assessment of what the potential impact is. Those sound like big numbers, but they are in the context of a £60 billion-plus Scottish budget. We need to make our final decisions on borrowing in the middle of March, so there is still scope for changes at that point. Historically, there have been changes—of more than £100 million on occasion—as a consequence of year-end audit adjustments.We need to keep some money for that and for anything that happens in the final few weeks of the financial year. However, as I said, nothing is lost there, because anything that is still there carries forward into the following financial year.
In the same item of business
The Convener
SNP
The next item is an evidence session with the Minister for Public Finance on the draft Budget (Scotland) Act 2025 Amendment Regulations 2026 on the spring bu...
The Minister for Public Finance (Ivan McKee)
SNP
Good morning.As we approach the end of the financial year, the Scottish Government is, once again, on track to balance its budget. That demonstrates our robu...
The Convener
SNP
Thank you, minister, for that and for the amount of detail that the Scottish Government provides for spring and autumn budget revisions—there are 186 pages i...
Ivan McKee
SNP
I will do my best, but I may rely on my officials.I think that I am right in saying that the biggest of those adjustments relates to student loans. That is d...
The Convener
SNP
It seems strange that it has been attached to the budget, given that it does not have any impact on it.
Ivan McKee
SNP
Yes—if I were an accountant, perhaps I could give you a more technical explanation.
The Convener
SNP
John Mason is an accountant, so he will explain it for us all.
Ivan McKee
SNP
Follow the rules in that regard.
The Convener
SNP
In your opening statement, you touched on the £252 million that is being held centrally within the finance and local government portfolio. Of that, you have ...
Ivan McKee
SNP
Are you asking why it is not a round number?
The Convener
SNP
It is a round number—well, the £200 million certainly is. There is potentially a £52 million carry forward, and I am wondering how that sum was arrived at.
Ivan McKee
SNP
In terms of that year-end adjustment number, we always have to make an assessment of what the potential impact is. Those sound like big numbers, but they are...
The Convener
SNP
It looks like a large sum of money, but it is barely a day’s resource expenditure for the Parliament when one thinks about it in those terms.The social justi...
Ivan McKee
SNP
I have a couple of points to make. First, these numbers originally come from the Scottish Fiscal Commission, which makes its assessment of what we need to pu...
The Convener
SNP
The amount for the Scottish child payment is £14 million less than was anticipated. Is that because, for example, the parents moved into a level of employmen...
Ivan McKee
SNP
Again, those are forecast numbers from the SFC. They will be based on a range of different factors and assumptions, and those assumptions could change. The e...
The Convener
SNP
The amount is about 3 or 4 per cent off the forecast. I wonder whether that is good news, in a way, if you think about it. If fewer people require the Scotti...
Ivan McKee
SNP
That is one possible driver. We work hard to make sure that people are claiming the benefit, but underclaiming could be an issue. However, assuming that all ...
The Convener
SNP
A lot of people would baulk at the fact that £24.7 million had to be provided for the additional costs incurred as a result of the United States presidential...
Ivan McKee
SNP
We do not give up hope, and we will continue to press on that.
The Convener
SNP
Not even by splitting the difference?
Ivan McKee
SNP
We can continue to engage with the UK Government, but it has not been helpful in that regard. I find it an interesting situation, given that the Prime Minist...
The Convener
SNP
Was the Vice-President not on holiday? It still cost us millions. Could you not ask him to go somewhere else—Majorca, maybe—the next time he fancies a visit,...
Ivan McKee
SNP
I do not know what the Prime Minister discussed with the President, but I imagine that it was not just chit-chat and that international affairs were mentioned.
The Convener
SNP
We have talked about the Scottish child payment and whether there might be good news in that regard. The number of claimants is not as high, which I would ho...
Ivan McKee
SNP
I do not have all the detail on that, but I can get back to you if there are specifics that you want more information on. Clearly, there will be big projects...
The Convener
SNP
I am not convinced that there has been a lot of speeding up going on. On the transport portfolio, the spring budget revision document says:“Ferry Services ha...
Ivan McKee
SNP
I take the point. As I said, there will be specific reasons for that. If you would like more information, I could get that from transport colleagues.
The Convener
SNP
Thank you. That would be helpful.I have just a few more questions, because colleagues are keen to come in.Funding for the climate action and energy portfolio...
Ivan McKee
SNP
The offshore wind spending will be partnered up with private sector investment, and it is not always possible to have a complete assessment of that in advanc...