Scottish Government criticised for a lack of financial planning on key recycling bill

Holyrood’s finance committee has published a damning report throwing cost estimations into doubt

A Holyrood committee has criticised the Scottish Government for a lack of financial planning on a controversial recycling bill.

The finance and public administration committee has published a highly critical report, casting doubt on whether the financial estimates for the government’s Circular Economy Bill were based on accurate costings.

The Scottish Conservatives say this report is a “damning verdict” of the SNP-Green government’s financial transparency.

Circular Economy Minister Lorna Slater. Image: Jane Barlow/Press Association.

This bill, if introduced, would give councils additional powers to tackle waste crime such as fly-tipping, and provide more enforcement for household recycling.

Its financial memorandum says there would be a 100 per cent payment rate for fixed-penalty notices for car littering.

However the committee’s report says these projected savings are “unsatisfactory” as the figure is “entirely unrealistic” and cannot be used to offset the bill’s enforcement costs.

It says this “reinforces our concern” that ministers are not making affordability a “key factor” in decision-making.

The report says financial scrutiny was “incredibly challenging, if not impossible” because the legislation was introduced before the co-design process started, preventing complete cost estimates.

It says this “effectively undermines parliamentary scrutiny” and risks “parliament passing legislation which may in the end, once outcomes are fully understood, be unaffordable.”

Committee Convener Kenneth Gibson MSP said: “Scrutiny of this bill reinforces our concern that affordability does not appear to be a key factor in Scottish Government decision-making.

“The minister, Lorna Slater, has committed to consult on the cost of secondary legislation, but that should not replace an assessment of affordability at the point of a bill’s introduction.

“Our committee is not convinced that this bill’s financial memorandum meets the requirements set out in parliament’s standing orders to provide ‘best estimates of the costs, savings and changes to revenues to which the provisions of the bill would give rise’.

“We’ve seen an increasing use of ‘framework’ bills that provide government with future enabling powers.

“These do not, however, provide best estimates of all likely costs, and undermine parliamentary scrutiny.

“It also risks parliament passing legislation which may in the end - once outcomes are fully understood - lead to significant cost increases.

“The increased use of framework bills with no clear implementation costs poses a long-term risk to the Scottish budget, both now and for successive governments.”

He added the committee was “disappointed” ministers had not met previous recommendations around financial transparency.

In response Ms Slater said: “We want to create a circular economy, in which resources are kept in use for as long as possible.

“This is not just good for the environment - it will also create new economic opportunities and green jobs here in Scotland.

“Our Circular Economy Bill will establish the legislative framework to support that.

“The bill is also expected to bring benefits to local authorities, for example as a result of less contamination of recycling, and savings made through waste collection and disposal costs, including reduced litter costs.

“The financial memorandum provides strategic-level cost and benefit data which will be refined as part of ongoing work with local authorities and householders, businesses and other stakeholders.”

The Scottish Conservatives say this report highlights Ms Slater’s “shambolic handling” of Scotland’s deposit return scheme.

Liz Smith MSP, the party’s finance and local government spokeswoman, said: “Yet again, this is a damning verdict from the Scottish Parliament’s finance committee on key legislation being brought forward by the SNP-Green government.

“The complete lack of financial transparency on the Circular Economy Bill shows Lorna Slater has clearly not learned any lessons from her shambolic handling of Scotland’s deposit return scheme.

“Lorna Slater cannot pass the buck and hide from serious questions being raised over this bill.

“She must ensure she responds to this report as a matter of urgency.”