Consumer Duty guidance: response letter

To: Professor Russel Griggs

From: Ivan McKee, Minister for Public Finance

Thank you for your letter of 5 August 2024 where you kindly provided me with an overview of the work of the Regulatory Review Group (RRG) and in particular RRG’s assessment of the Consumer Duty (the Duty).

I am pleased to hear that my officials provided RRG with a helpful overview of the Duty. I have noted your recommendations which focus on proportionate compliance, monitoring and enforcement.

As you are aware, the Duty came into force as part of the Consumer Scotland Act 2020. The Scottish Government is responsible for the SSI (which names the relevant public authorities which have to adhere to the Duty) and Consumer Scotland is responsible for providing guidance which supports decision-makers in ensuring they are applying the Duty in strategic decision-making.

I recognise the need to ensure that the Duty is applied consistently across the public sector. The Duty is a legal requirement and, while there are no formal reporting measures in place at this stage, I am confident that accountable officers will ensure that their organisations are meeting their statutory obligations. The very real resource pressures facing us just now means that I do not propose to place additional reporting requirements on public bodies. However, I am keen to take advice on next steps from Consumer Scotland following the implementation year.

I also agree that setting expectations and leadership engagement is critical. I am pleased that Consumer Scotland is taking a strong lead on wide-ranging engagement and consultation during the 2024/25 implementation year. Accessible guidance will support consistent application, and my officials will continue to work with Consumer Scotland and stakeholders to ensure that the draft guidance is fit for purpose. My officials will also consider with Consumer Scotland whether the guidance might clarify the definition of a strategic decision.

I can also confirm that the Consumer Duty is now part of the BRIA and a consideration within the policy making process. Information has been published on the Scottish Government’s intranet to ensure that policy officials can access information on the Duty and ways in which it can be effectively applied and implemented.

RRG may be interested to note that my officials carried out extensive stakeholder engagement with public bodies prior to the introduction of the Duty. It was clear that many were already considering consumers in their decision-making and I am pleased that the Duty will now allow them to formalise that approach in a consistent way.

Thank you again for your helpful recommendations. My officials would be delighted to be invited back to a future RRG meeting to provide an update on the Duty.

Yours sincerely,

Ivan McKee