Scots Government must flesh out its capital plans, say MSPs

10 Dec 12
MSPs have asked the Scottish Government for more information on its capital investment plans, saying the lack of detail makes it difficult to determine which projects will contribute to economic growth.
By Richard Johnstone | 10 December 2012

MSPs have asked the Scottish Government for more information on its capital investment plans, saying the lack of detail makes it difficult to determine which projects will contribute to economic growth.

Reporting today, the Scottish Parliament’s finance committee welcomed the emphasis on capital investment in the administration’s Draft Budget 2013/14.

However, it said more details would be needed before the final Bill is published in January.

The MSPs concluded the financial pressures on the administration ‘remained substantial’. Ministers face a significant challenge in continuing to meet the budgetary commitments in these circumstances, they said. This meant more information was needed on why certain projects are being backed.

‘We welcome the Scottish Government’s emphasis on maximising capital investment at a time of severe budgetary constraints,’ committee convener Kenneth Gibson said. ‘Nevertheless, we also believe there is a need for greater clarity both in terms of additional investment provided and the capital projects supported.

‘We also seek greater analysis of the link between the Scottish Government’s spending priorities and outcomes. In particular, we would like a cost-benefit analysis of the contribution which the spending priorities make towards sustainable economic growth.’

After examining a number of spending areas in evidence sessions, the committee urged ministers to prioritise funding for affordable housing should additional resources become available following the Autumn Statement for the UK.

The government should also provide an annual progress report on savings being made following reforms to information technology procurement introduced after the McClelland Review in 2011.

Responding to the report, a Scottish Government spokesman said the Budget was ‘focused on jobs and growth’ and ministers were doing all they could within the ‘limited powers’ of the Parliament.



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