Emergency spending control decisions: FOI release

Information requested

All decisions that have been taken under the SG imposed ‘emergency spending controls’ procedure where the Cabinet Secretary for FLG wrote to fellow Cabinet Secretaries stating that ‘emergency spending controls will now be introduced with immediate effect’. This was reported on 13 August 2024 but please list all decisions that have been taken under these measures since the Cabinet Secretary for Finance and Local Government sent her letter (9 August 2024), detailing the spending that has had to be stopped, frozen or cancelled as a result of these controls, and which cabinet secretary took the decision in each case.

Response

While our aim is to provide information whenever possible, in this instance we are unable to provide the information you have requested because an exemption under section s.29(1)(a) (policy formulation) of FOISA applies to that information. The reasons why that exemption applies are explained below.

An exemption applies, subject to the public interest test

An exemption under section 29(1)(a) of FOISA (formulation or development of government policy) applies to the information requested because it relates to the development of the Scottish Government’s policy. This is because decisions taken under the emergency controls relate to spend in the current financial year, remain under consideration and could proceed at a later point depending on the Scottish Government financial position which could be impacted by external factors, particularly decisions taken by the UK Government with impacts on consequentials. Where final decisions on savings result in transfers between budget lines these will be communicated to Parliament as part of the Autumn and Spring Budget Revisions.

This exemption is subject to the ‘public interest test’. Therefore, taking account of all the circumstances of this case, we have considered if the public interest in disclosing the information outweighs the public interest in applying the exemption. We have found that, on balance, the public interest lies in favour of upholding the exemption. We recognise that there is a public interest in disclosing information as part of open, transparent and accountable government, and to inform public debate. However, there is a greater public interest in high quality policy and decision-making, and in the properly considered implementation and development of policies and decisions. This means that Ministers and officials need to be able to consider all available options and to debate those rigorously, to fully understand their possible implications. Their candour in doing so will be affected by their assessment of whether the discussions on pausing or restarting spending under the Emergency Spend Controls will be disclosed in the near future, when it may undermine or constrain the Government’s view on that policy while it is still under discussion and development.

• Please also state what is meant by emergency spending controls. For example, any details about the procedures that must be followed when Scottish Ministers make spending decisions following the imposition of emergency spending controls and if any more people are involved in signing off spending decisions.

Answer

The Scottish Government and the whole of the public sector faces a financial position that is extremely challenging. It has always been necessary to ensure resources are used economically, efficiently and effectively. The spend control process and procedures that require to be followed by can be found in the Scottish Public Finance Manual at the following link - FGN2024/03 SPFM AO Spend Control August 2024 - Scottish Public Finance Manual - gov.scot (www.gov.scot)

Following the letter issued from Cabinet Secretary for Finance and Local Government to fellow Cabinet Secretaries on 9th August 2024 increased additional scrutiny will now be applied to expenditure in taking decisions forward before it follows the process outlined in the paragraph above. In particular, any activity undertaken, or commitment made, that generates expenditure in 2024-25 must only proceed if it is truly essential and unavoidable. For example, an assessment should be made on whether or not proceeding would otherwise breach legal obligations, or fail to provide essential support to emergency situations, or cause significant economic damage across Scotland. Consideration must also ensure that any activity or commitment is essential now and cannot be deferred to a future point. The emergency spend controls also implemented further control on marketing spend and discretionary spending including pausing external recruitment, hospitality, events and travel unless there are essential operational reasons to prevent this.

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