Scots finance: ‘Independent expert should be established’

SCOTLAND’s former top civil servant has suggested a new independent scrutineer of the country’s finances should be established if and when Scottish ministers get more powers.

Sir John Elvidge, who was permanent secretary at the Scottish Government from 2003 to 2010, said that a body along the lines of the UK’s Office for Budget Responsibility (OBR) could be set up in Scotland to run the rule over the country’s long-term economic prospects.

Even if Scotland does not back independence next year, MSPs are to get control over a new Scottish income tax rate, allowing them to vary the rates here compared to the rest of the UK.

Pro-UK parties are backing the devolution of further tax powers, including the potential control of all income tax rates.

But Sir John uses a chapter in a new book on the country’s constitutional future to question whether the scrutiny over financial decisions made by ministers is appropriate as it stands.

He also questions the fact that it is often left to Audit Scotland to “unsystematically” examine the way money is spent by Scottish bodies.

Sir John’s comments are made in Scotland’s Future, a book examining the consequences of constitutional change. His chapter focuses on the governance and institutional framework that may be required.

The responsibility for challenging the government’s figures and spending plans is now that of the Scottish Parliament and its committees, he writes.

He adds: “While the committee system has delivered some important benefits, the effective scrutiny of the draft annual Budgets presented by successive governments, and the exercise of the scope to present alternative proposals, could not be judged to be among them.”

He goes on: “If the economic and fiscal powers of government are to increase, this raises the question whether the parliament would be better supported by a more specialised and expert body, along the lines of an Office for Budget Responsibility, than by the present reliance on the parliament’s own staff and, indirectly and unsystematically, Audit Scotland.”

Sir John’s call is only the latest in a series of criticisms of the way in which spending is scrutinised in Scotland. Since 2010, the UK government has had its own figures independently analysed by the OBR. Its chairman, Robert Chote, is giving evidence to the finance committee today on the outlook for the UK economy.

Last year, former local government chief Bill Howat, who conducted an investigation into the spending of Scottish ministers six years ago, said ministers should have all their policies and promises stress-tested by an independent monitor to weed out any more waste.

Sir John also questions whether the “talent pool” from which Ministers are drawn in future could be widened to include people from outside parliament.