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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 5 May 2021
  6. Current session: 12 May 2021 to 7 May 2025
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Displaying 1067 contributions

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Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 4 March 2025

Ivan McKee

Yes鈥攊t is a huge range because there is a huge range of unknowns. Frankly, I do not know what planning you have taken part in, but we would always plan for contingencies. Those contingencies, depending on the extent of the consequentials that came through, may have involved the use of ScotWind money, the use of reserves and further restrictions on budgets, or they may not have. That is dependent not only on the UK Government consequentials, but on a range of other factors that we have talked about this morning, many of which run into the many hundreds of millions of pounds.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 4 March 2025

Ivan McKee

First of all, we will always get such adjustments at the level of specific benefits because, as I said, they are demand led and we will get variation鈥攕ome will be up and some will be down. However, over the piece, those are almost balanced. As I said, many of those benefits are new, so, as we run those benefits for longer and we get more data, there will be more clarity and more accuracy on the forecast, although we will never get that exactly right.

Scott Mackay might want to comment on that specific issue.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 4 March 2025

Ivan McKee

I will defer to officials for the numbers in a minute.

International financial reporting standard 16 is about how leases and rentals are treated in relation to transfers from capital to resource. A change in the policy and in the regulation of their treatment is getting phased in over a three-year period, so we were required to submit an estimation of how that would phase in over those three years. Normally in that scenario, you would get flexibility鈥攜ou would be able to move those numbers in year, depending on how the transfers and the projects themselves transpired. However, we were not given that flexibility, which means that we are having to flex from discretionary spending any variation from the forecast of how those transfers from capital to resource would take place to meet the new standard.

On the scale of the impact, I will pass to Scott.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 4 March 2025

Ivan McKee

Those are all good questions. If we were able to deliver a result for less money, I would be supportive of that. As I said, though, there is an independence involved in the operation of inquiries, and we need to be cognisant of that. The committee might wish to look further at the issue, but we are happy to provide whatever information we have on their operation.

I have seen the same thing with regard to estates. We are working hard to ensure that public bodies share estates, but inquiries are in a slightly different place because of the requirements with regard to the specific estates that they want to occupy.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 4 March 2025

Ivan McKee

That is an interesting point. It will be harder to identify soft costs such as staff time and so on, but I absolutely think that it will be worth doing. Moreover, quite a lot of time and resource will be spent鈥攑erhaps rightly so鈥攐n preparing for inquiries. In the interest of transparency, we should seek to look at those numbers.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 4 March 2025

Ivan McKee

No, but we can get back to you on that鈥攗nless others have the information to hand.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 4 March 2025

Ivan McKee

It is in that portfolio because that gives us flexibility. Things will happen. I mentioned year-end audit adjustments, which are an unknown number, so we do not know where they will land. That is the whole point of having a contingency. There can still be variation in demand-led schemes. There are other issues, such as the storms perhaps triggering Bellwin payments to local authorities. There are a number of known unknowns as we go through to the end of the year.

Having that 拢350 million held centrally allows us the flexibility to respond to issues and allocate funds, depending on where we see demand coming through as we get towards the end of the year. Of course, any money that is left unutilised moves forward and can be spent in next year鈥檚 budget.

The answer to your question is that the money is held there because it gives us more flexibility. Of course, we do not yet know what the year-end audit adjustments will be, which is the whole point of having that contingency.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 4 March 2025

Ivan McKee

Sorry鈥攚hen you said 84 per cent, did you mean 84 per cent of the total reduction?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 4 March 2025

Ivan McKee

Yes. I think that there have been some changes with regard to how that limit is treated.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 4 March 2025

Ivan McKee

I suppose that the operator would need to have the capacity as well as the funding. If you need any more specific information, we will try to get the details.