Committee
Finance Committee, 19 May 2009
19 May 2009 · S3 · Finance Committee
Item of business
Strategic Budget Scrutiny Inquiry
Good afternoon. Welcome to the 13th meeting of the Finance Committee in 2009, in the third session of the Scottish Parliament. Please turn off all mobile phones and pagers.Agenda item 1 is continuation of the evidence programme for our strategic budget scrutiny inquiry, focusing on the effects of recession on the public sector budgets of Scotland and the immediate pressures on the 2010-11 budget, as well as likely future trends. Before we take evidence from the Cabinet Secretary for Finance and Sustainable Growth, we will have a further short evidence session with Scottish Government officials. I welcome to the committee Stella Manzie, the Scottish Government's director general finance and corporate services, and Alyson Stafford, the director of finance. I give notice to the committee that I intend to allow no more than 15 minutes for the session, to ensure that the cabinet secretary's evidence session can begin at 1.45. I invite questions from members.
In the same item of business
The Convener (Andrew Welsh):
SNP
Good afternoon. Welcome to the 13th meeting of the Finance Committee in 2009, in the third session of the Scottish Parliament. Please turn off all mobile pho...
Jackie Baillie (Dumbarton) (Lab):
Lab
I thank Stella Manzie for returning to the committee. My aim is to ensure that we have clarity, rather than confusion; the Official Report of our meeting of ...
Stella Manzie (Scottish Government Director General Finance and Corporate Services):
The figure is correct, excluding end-year flexibility.
Jackie Baillie:
Lab
That is helpful. Can you confirm that the decision to accelerate capital spending from 2010-11 to the previous two years was taken by the Scottish Government...
Stella Manzie:
Part of the question is fairly political, but factually it is completely correct to say that the Scottish Government took the decision.
Jackie Baillie:
Lab
I am not seeking to be political—I am seeking to gain clarity. I hope that that helps you to understand my intentions. Can you confirm that the expenditure t...
Stella Manzie:
I cannot comment in detail on whether they had all been planned exactly for 2010-11, but they were planned capital projects.
Jackie Baillie:
Lab
It is welcome that the projects were brought forward, but I understand that the bulk of them were planned. Would I be fair for me to conclude that, once the ...
Stella Manzie:
There are a number of components to the question, so I will ask my colleague, Alyson Stafford, to respond.
Alyson Stafford (Scottish Government Finance Directorate):
I am happy to do so. Could you repeat the question, as there was quite a lot in it?
Jackie Baillie:
Lab
From my first three questions, it is clear to me that my understanding is shared. Building on those questions, would I be fair to conclude that, given that t...
Stella Manzie:
If Alyson Stafford answers on some of the detail, I will make a general comment. Any response to the question has to be placed in the context of the continui...
Jackie Baillie:
Lab
In response to the first three questions you said to me that there is 1.3 per cent growth, once the capital acceleration for next year is stripped out.
Stella Manzie:
Yes.
Jackie Baillie:
Lab
I am trying to establish that the impact this year is not as a consequence of United Kingdom budget decisions. The reasons may lie elsewhere. Perhaps I could...
Stella Manzie:
Depending on what my colleague says, we would have to examine the components of that. That is quite a difficult question to answer at speed, without looking ...
Jackie Baillie:
Lab
Okay. Let me try to simplify it even further. I expected our household budget for the Scottish Parliament to be X, with an increase of a certain order of mag...
Stella Manzie:
There has certainly been growth in the budget for 2009-10. That is substantiated by figures from elsewhere—from the Centre for Public Policy for Regions and ...
The Convener:
SNP
We understand that the issues are complex, and that you wish to be as accurate as possible. If you wish to respond further in writing, please do so.
Stella Manzie:
You may find yourself in receipt of a further follow-up letter. We will see how the committee progresses.
Jackie Baillie:
Lab
On the subject of correspondence, I found your letter fascinating in the sense that it seemed to have several different styles to it. I wonder whether it was...
Stella Manzie:
Inevitably, the kinds of letters that generally have my signature on them have contributions from a number of people. When Alistair Brown and I left the comm...
Jackie Baillie:
Lab
It was cleared politically.
Stella Manzie:
Yes.
Jackie Baillie:
Lab
So it was not just from financial and technical people. That is helpful to know, thank you.
The Convener:
SNP
I point out that our timing is tight. James Kelly is next, to be followed by Jeremy Purvis.
James Kelly (Glasgow Rutherglen) (Lab):
Lab
In your letter, you refer to the Treasury red book and say that total current spending will grow by 0.7 per cent in 2013-14. However, you go on to say that d...
Stella Manzie:
Although we have not finalised any figures in relation to that, it is clear from the projections—particularly when we consider capital expenditure—that there...
James Kelly:
Lab
As the CPPR representative told us, forecasts are only forecasts, and there is an element of estimation about them. Just to be clear, no Treasury baselines h...
Stella Manzie:
No. It is based on an assessment of what is in the red book and consideration of how those financial projections move forward and the different elements of t...