HOLYROOD COMMITTEE DEMANDS TRANSPARENCY OVER SCOTTISH BUDGET GAP

A Holyrood committee has said it cannot determine whether the Scottish government's tax and spending plans are affordable, and has demanded "much greater transparency" from ministers. The Finance and Public Administration Committee said it took evidence from public bodies, local authorities and economic experts, but could not reach a conclusion because of a lack of answers from the government. Its convener, SNP MSP Clare Haughey, said: "We have insufficient evidence to determine whether the Scottish government's tax and spending plans are affordable and sustainable." Haughey said the committee was concerned the Budget faced "substantial risks" if reform targets were not met.

The committee's report pointed to a forecast £5 billion gap in Scotland's finances by 2029-30, comprising a £2.6 billion shortfall in day-to-day spending and £2.1 billion in capital funding. It said the gap had widened after a British government decision to prioritise military spending added £87 million to the shortfall next year. This came on top of a £720 million shortfall caused by weaker than expected income tax receipts compared with the rest of the UK. The committee said the country faces "significant financial pressures", citing inflation and rising energy prices.

A Scottish government spokesperson said it was "taking forward a public service reform strategy" to deliver efficient services, and noted its budget would be cut in real terms by around £650 million next year. The spokesperson said ministers had delivered a balanced budget every year and would consider the recommendations within fiscal constraints. Scottish ministers have proposed reducing the number of NHS boards and regional councils. The government said it would respond to the committee's report after publishing its Budget on 3 December.