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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Current session: 13 May 2021 to 11 September 2025
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Displaying 2934 contributions

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Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 22 November 2022

John Mason

I go back to the technical adjustments and the IFRS 16 adjustments. I understand that operating leases did not used to be on the balance sheet and now will be as both an asset and a liability, so the net effect is nil. Does that have an impact on our borrowing limit of £3 billion?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 22 November 2022

John Mason

It does not. Will it in the future?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 22 November 2022

John Mason

So, there is no effect, and I am correct in saying that that issue is, effectively, looked after by the Treasury at Westminster and does not impact on us at all, as it stands.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 22 November 2022

John Mason

Right. I am still toiling a wee bit, but, anyway, I will keep going. That £20.7 million is part of a total of £223.9 million that is included as savings in the ABR at the bottom of that table. After that, paragraph 51 states that there is a balance of £191.5 million. What is the difference between those two columns—the one that shows a total of £223.9 million and the one that shows a total of £191.5 million?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 22 November 2022

John Mason

Okay. There is a degree of uncertainty around that column, and it could be that a department that looks like it is overspending manages to catch up over the next few months. That would be good news, I guess.

Paragraph 53 says:

“The EBR process identified approximately £615 million of additional options for spending reductions”.

So, those are not definite. That suggests that there is a degree of uncertainty around that figure.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 22 November 2022

John Mason

Right. The final area that I wanted to ask about was the question of the spillover dispute with the UK Government. I know that that is a debate that has been going on for some time. I think that we have a figure of £375 million now: is that what the Scottish Government was expecting. Is it more or less?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 22 November 2022

John Mason

That was a good estimate, so that is good.

Looking at the current year—2022-23—and the £25 million or whatever it might be, given what Liz Smith has already asked about with regard to how we are a bit uncertain about the timing of the framework review, I am a bit concerned that that is involving the current year’s budget. Presumably, the uncertainty about that figure causes you quite a lot of uncertainty about what you can do this year. I do not know whether there are other figures elsewhere that will be backdated to 1 April, depending on when the spending review is. We might not even know that until next year.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 22 November 2022

John Mason

I am not sure that it does. I was not going to ask you about that paragraph, but now you have raised it, I will. Can we say that the £25 million is small enough in the scale of things to mean that we can just cope with that? We are looking at other figures, and I do not know whether the £25 million is in the £324 million or whether the £324 million is different.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 22 November 2022

John Mason

Okay, that is nice and clear. That is fine.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 22 November 2022

John Mason

I am happy to ask a simple question and get a simple answer. That is commendable.

Paragraph 45 of the guide talks about the emergency budget review:

“While the amounts outlined in the letter are savings based on the in-year budget monitoring position, these do not necessarily correspond to a budget being formally surrendered as part of a gross funding movement.”

I am struggling with the phrase “budget being formally surrendered” and what that would mean. It goes on:

“This is because these savings may be against forecast pressures”

that

“are being transferred internally”.

Again, I am not sure that I understand what “forecast pressures” that are “being transferred internally” means.