Shona Robison’s budget has been criticised by Holyrood’s Finance and Public Administration Committee, with MSPs warning that some decisions taken by the SNP Finance Secretary “appear to conflict with the priorities of tackling poverty, growing the economy and prioritising public services.”

The MSPs also criticised the council tax freeze,  saying it “does not expressly target those in poverty."

There was a warning too about the new tax band for higher earners and the "uncertainty" about any behavioural impact. 

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The Committee said they understood that there were “significant pressures on Scotland’s public finances” resulting in “difficult decisions in relation to taxation and spending.”

They continued: “We further note the Scottish Government’s commitment to spending prioritisation based on delivering its three Missions of Equality, Opportunity and Community.

“However, we remain to be convinced that this prioritisation exercise has been carried out in a strategic, coherent and co-ordinated way.

“In fact, some individual decisions appear to conflict with the priorities of tackling poverty, growing the economy and prioritising public services.”

The MSP said evidence from witnesses suggested that ministers were “focused on plugging short-term funding gaps at the expense of medium- and longer-term financial planning.”

They also said public service reform was “critical to the sustainability of the Budget.”

The MSPs warned that without a “coherent reform programme in place” they were concerned that savings would be made through “a series of uncoordinated cuts across the board, rather than genuine reform aimed at enhancing the delivery of public services.”

Members also questioned why one portfolio in the Scottish Budget referred to ‘a 5% efficiency saving that has been taken across all public bodies as part of public service reform’.

“This is not referred to more widely in the Scottish Budget or in the reform update we received on the same day," they said. "We therefore seek clarity on this matter along with details of how this approach aligns with the Scottish Government’s aim to prioritise public services."

They also said the public sector pay policy for next year must be “published as early as possible” after UK Chancellor Jeremy Hunt’s Budget in March.

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Committee convener Kenneth Gibson said: “Significant pressure on Scotland’s public finances have presented difficult tax and spending decisions in the budget. Everybody recognises that.

 “The Scottish Government's priorities are based on delivering its three ‘missions’ of equality, opportunity and community.  

"However, there was a great divergence in views from witnesses on what those priorities should be, with the focus understandably in areas where budgets will be reduced rather than increased.

 “The committee is unclear how spending has been prioritised towards a fair, green and growing economy.

 “Regarding taxation, there is uncertainty about the behavioural impact on taxpayers earning more than £75,000 per year and when there will be a fundamental review of the council tax. 

 “The Scottish Government needs to deliver long-term financial planning. At present it gives the impression that it’s procrastinating on important decision-making that would help the sustainability of Scotland’s public finances, albeit in the medium and longer-term."

The SNP MSP  also said the committee was “disappointed at continuing cuts to the capital budget by the UK Government”.

With the Scottish Government’s capital budget set at £6.25 billion for 2024-25, Mr Gibson said this “restricts” its “ability to invest in capital projects, achieving net zero and growing the economy”.

 

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Responding to the report, Shadow Finance Secretary Liz Smith, who is a member of the committee, said: “This is a hard-hitting report which expresses the committee’s unanimous concerns that the Budget decisions taken by the SNP-Green Government are at odds with the need to create economic growth, improve the delivery of public services and tackle poverty.

“The committee is clear that there has not been nearly enough focus on long-term planning for the economy in order to address the substantial fiscal deficit or on the badly-needed reform of public services which the SNP promised.”

Scottish Labour finance spokesperson Michael Marra said: "This damning report exposes this SNP Government's woeful approach to budgeting.

"The SNP government has presented a budget littered with errors, inconsistencies and missing key data - with the Deputy First Minister unable to answer key questions in her appearance at Committee.

"Worse still, the SNP Government refuses to face up to the fundamental challenges facing Scotland's public finances, and the public services on which we all rely.

"This is not a serious Government - Scotland deserves far better."

The first parliamentary debate on the budget is due to take place next week.

The Scottish Government has been approached for comment.