Why Audit Scotland's report about Scottish Government's finances is deeply alarming

On its front page, Audit Scotland’s website helpfully explains “why we’re here”: “Our vision is that public money is well spent to meet the needs of Scotland's people”. Judging by its latest report, its services are needed more than ever.

After delving into the Scottish Government's ‘fiscal sustainability’, Stephen Boyle, Auditor General for Scotland, concluded “fundamental change” in the way public money is spent was necessary in order to “ensure services can meet demand and remain affordable beyond the short-term”. He added: "People do not fully understand the medium-term risks public services are facing because of a lack of transparency from the Scottish Government.”

The report pointed to the use of £460 million of one-off revenues from the sale of the ‘ScotWind’ licences for renewable energy to fund public sector pay awards this year. Ministers apparently do not know how these pay rises will be funded in future.

John Swinney has a chance to set public service finances on a sustainable footing (Picture: Jane Barlow) | PA

Pleading poverty won’t wash

Commenting on the report, Scottish Liberal Democrat leader Alex Cole-Hamilton claimed SNP ministers “don't have any plan for public services” and accused them of making “one expensive blunder after another”. The Scottish Parliament’s Finance Committee is also "deeply concerned" about the government's lack of a strategic approach to its finances.

With a new First Minister in charge – but the same Finance Secretary, Shona Robison – the Scottish Government has a chance to set the situation to rights. That process must begin by being transparent about its problems and demonstrating there is, in fact, a credible plan to put Scotland’s public services on a firm footing.

Attempts to plead poverty will not wash, with the Scottish Government to receive an extra £1.5 billion this year and a further £3.4bn next year as a result of the UK Budget.

It is deeply alarming that such points need to be made. Sound public finances should be a given for any government. It may not be much of a vote winner but it is far more important than maintaining pet SNP projects like free university tuition and free prescriptions for political purposes.

There are already too many signs that public services are falling apart. The SNP must stop the rot – and quickly.