Open Government action plan 2021 to 2025 - commitment 1: fiscal openness and transparency

Progress to June 2024

Commitment 1: fiscal openness and transparency

Aim

Benchmarking our fiscal openness and transparency.

Objective

Establish an approach to assess progress of fiscal openness and transparency, moving towards international best practices of transparency and data standards.

Milestones

Milestone (2024): refine our IMF Fiscal Transparency Code benchmarked assessment, building on the Scottish Human Rights Commission’s (SHRC) Open Budget Index assessment to be published in Spring 2024, and in consultation with Fiscal Openness and Transparency Commitment Group and external fiscal experts.

Milestone (2025): review progress and practical application of benchmarking to design effective future approach.

Progress and next steps

In 2023, an initial benchmarking of current Scottish Exchequer performance against selected key relevant International Monetary Fund (IMF) Fiscal Transparency Code (FTC) principles and practice levels was developed. The Scottish Human Rights Commission’s assessment of the Scottish Budget, using the Open Budget Index, was initially completed and will be published by July 2024. Multi-year milestones to the end of the Action Plan period have been developed and are being used with this update. In 2024, to date on the IMF Code, substantial progress has been made in collaboration with Scottish government subject matter experts to identify potential areas for improvement.

Next steps

By August 2024, from our IMF Code analysis we will have prepared a range of prioritised options for potential improvements where this work is likely to deliver the most beneficial impact on our performance. We will engage with the results of the SHRC assessment of the Scottish Budget 2021 - 2022, understand the impact that improvements to date have made on the benchmarking data, and consider implications for further improvement to the budget process. The focus for the rest of 2024 will be to agree and plan the delivery of specific improvements on the basis of their expected beneficial impact on performance, available capacity and resources. We will engage with the Fiscal Openness and Transparency Commitment Group on this work.

Status

On schedule.

Aim

Improving the accessibility of our fiscal data and information.

Objective

Implement the Fiscal Transparency Discovery Report recommendations to improve the quality, coverage, presentation and standards of current fiscal data.

Milestones

Milestone (ongoing from 2023): by end Q1 2024 deliver a fully functional (internal) minimum viable product Beta solution for the structuring, standardising and visualising of Scottish budget data.

Milestone (2024): subject to resource, by summer 2024 begin development of a live service, including a public facing fiscal portal.

Milestone (2024): subject to resource by autumn 2024 begin user testing and design engagement with the public and external stakeholders.

Milestone (2025): subject to resource, by end Q1 2025 launch live service and public portal.

Progress and next steps

In 2023 a prototype of the Fiscal Transparency portal was delivered and a number working demonstrations provided for our stakeholder community. Funding was secured for the next phase which would deliver an internal Minimum Viable Product (MVP). The scope and timescale of the MVP were revised and it has now completed technical design in Q1 2024, with a widened scope to include Scottish budget data from 2022 to 2023 and 2023 to 2024. Multi-year milestones to the end of the Action Plan period have been developed and are being used with this update.

Next steps

An internal MVP has been developed. Internal and external stakeholder engagement is underway to demonstrate the work and seek feedback. We are developing a business case to set out the options for progressing this to a live service, with related resource requirements for both developing and then maintaining the live service on an on-going basis.

Status

On schedule.

Aim

Improving the accessibility of our fiscal data and information.

Objective

Deliver a procurement management information platform to improve data standards, demonstrate the impact of public sector procurement on Scotland's economy – identifying opportunities to maximise delivery of outcomes at a local and national level.

Milestones

Milestone (2024): sign-off Proof of Concept by end of Q1 2024 and completed the Beta phase of the Management Information (MI) Platform which will include a range of data extracts to support and deliver more concise and informative data across SG procurement landscape.

Milestone (2024): by end of Q4, roll out the MI Platform to other public bodies (Local Authorities, Central Government, Higher Education/Further Education and National Health Service) to identify new sources of data and further data collection which will provide greater information on the impact of public sector procurement.

Milestone (2025): continue to roll out the MI Platform across public sector.

Milestone (2025): continue to identify new data sources to enhance and enrich public sector management information.

Milestone (2025): ability to report on Scope 3 emissions.

Progress and next steps

In 2023 all milestones were met with an Alpha MI platform and Proof of Concept Alpha and further enhancements delivered. The proposal for a publicly viewable small and medium sized enterprise (SME) data portal will not be progressed at this stage due to budget restrictions. Multi-year milestones to the end of the Action Plan period have been developed and are being used with this update.

Next steps

The MI Platform is now live and being used internally to provide additional reports. Wider engagement with public sector bodies to demonstrate the benefits of the platform and to get agreement on sharing and identifying new data sources to be used within platform is being undertaken. We will continue to identify new data sources to support wider Scottish public sector needs.

Status

On schedule.

Aim

Improving the accessibility of our fiscal data and information.

Objective

Improve the transparency around the Scottish Budget, reviewing the accessibility and usability of existing and future information and guidance.

Milestones

Milestone (2024): through our lessons learned exercise from the 2024 to 2025 Budget, we will develop a programme for improvement in the budget process and Budget 2025 to 2026 and over the medium term.

Milestone (2024): we will engage with the Fiscal Openness and Transparency Commitment Oversight Group on our Improvement Plan reflecting in particular on our current progress in responding to the Equality and Human Rights Budget Advisory Group (EHRBAG) recommendations.

Milestone (2025): deliver an improved Budget process based on lessons learned and stakeholder input, including the Fiscal Openness and Transparency Commitment Oversight Group.

Progress and next steps

In 2023 milestones were met through improvements to the in-year guide that accompanies (and is published alongside) the budget revision supporting document.

More information was published to enhance transparency in the 2024 to 2025 Scottish Budget including:

• using international best practice to classify spending by classification of functions of government (COFOG)
• additional disclosure of prior year information to illustrate how the new future Budget compares with the ‘live’ budget (prior year) to aid comparison between years
• transparency enhancements to, and easy read version of, the Equalities and Fairer Scotland Budget Statement
• distributional analysis of how decisions on tax and social security impact households of different income levels and characteristics
• using research on Citizens’ Budgets internationally to make enhancements to the citizens’ guide to the budget ‘Your Scotland, Your Finances’, which is now produced alongside the new Budget. This guide is updated alongside each in-year budget revision in the autumn and spring, enhancing the information available on the Scottish Budget in year

In addition, the government published a response to take forward Equality and Human Rights Budget Advisory Group’s (EHRBAG) recommendations on equalities budgeting and transparency. Multi-year milestones to the end of the Action Plan period have been developed and are being used with this update.

Next steps

The development of an overall programme for improvement in the budget process and Budget 2025 to 2026, as well as over the medium term. This will include engagement with key stakeholders, including ERHBAG and the Fiscal Openness and Transparency Commitment Group.

Status

On schedule.

Aim

Improving participation and engagement on the public finances.

Objective

Build on previous engagement and best practice to develop a multi-stakeholder approach to the next Infrastructure Investment Plan (IIP).

Milestones

Milestone (2024): work to support planned Scottish Exchequer engagement events in 2024, to showcase the infrastructure transparency already in place in Scotland, and set out our ambitions for the coming years.

Milestone (2024): develop a public and stakeholder engagement strategy, in conjunction with Scottish Futures Trust, by the end of 2024 for internal use, consistent with the recommendations from the Infrastructure Commission for Scotland. This will in turn inform the next Infrastructure Investment Plan and therefore will be overseen by the Infrastructure Investment Board. The Fiscal Openness and Transparency Oversight Group will be provided with bi-annual updates for information.

Milestone (2025): continue work with Scottish Futures Trust to improve the engagement we have planned with the public around infrastructure by testing various engagement options, ahead of development of the next Infrastructure Investment Plan. This will be overseen by the Infrastructure Investment Board. The Fiscal Openness and Transparency Oversight Group will be provided with bi-annual updates for information.

Progress and next steps

In 2023 the milestone was met with the newly created Planning, Infrastructure and Place Advisory Group (PIPAG) established to support joined-up place-based delivery of development and infrastructure in Scotland.

It’s remit includes an objective to provide strategic input to the development of the next IIP. Multi-year milestones to the end of the Action Plan period have been developed and are being used with this update. There has been engagement on infrastructure data transparency in Scotland at OGP’s Nordic+ event on fiscal openness in April 2024, coupled with ongoing engagement with CoST around their transparency work, to help to understand best practice to inform the approach to public and stakeholder engagement with the next IIP.

Next steps

We will continue engagement and work with the Scottish Futures Trust to develop a public and stakeholder engagement strategy by the end of 2024, keeping the Fiscal Openness and Transparency Commitment Group updated on this work.

Status

On schedule.

Aim

Improving participation and engagement on the public finances.

Objective

Build on previous engagement, striving for a best practice approach to engagement, ensuring that we use our tax powers in a transparent policy making process.

Milestones

Milestone (2024): by end May 2024 engage with the Tax Advisory Group (TAG) and wider stakeholders to develop a draft tax strategy.

Milestone (2024): having launched a public consultation on the tax strategy, work with TAG and other stakeholders to help identify seldom heard voices and consider ways to encourage participation.

Milestone (2024): engage with citizens and stakeholders before the budget process begins, to better understand knowledge of the tax system and help inform decision making.

Milestone (2024): by end 2024 publish the Tax Strategy. Stakeholder and citizen engagement will feature in the Strategy, and will be an area of interest in the analysis of consultation responses. This data may provide insights that can be used to inform both the strategy and future approaches to engagement, including Budget 2025 to 2026.

Milestone (2025): by September 2025 engage with citizens and stakeholders before the budget process begins, to better understand knowledge of the tax system and help inform decision making.

Progress and next steps

Milestones in 2023 were partially met through the creation of the Tax Advisory Group (TAG), engagement with the public to understand their views on income tax, and as part of the tax engagement work, with stakeholders, in the run up to the 2024 to 2025 Scottish Budget.

Multi-year milestones to the end of the Action Plan period have been developed and are being used with this update. TAG has met twice this year to support the development of the themes and content for the Tax Strategy. In parallel there has been a programme of stakeholder engagements, including a series of roundtables with think tanks, academics, civic society groups and tax professionals, alongside individual stakeholder meetings, to seek feedback and views on the approach, objectives and themes on the Strategy. 

Overall, stakeholders are supportive of the approach and have highlighted the need for increased transparency in how decisions are made as a core area which could be improved through the Strategy.

Next steps

Alongside the launch of a public consultation on the Tax Strategy, work will be taken forward with the TAG and other stakeholders to help to identify seldom heard voices and consider ways to encourage participation in the Tax Strategy consultation process.

Status

On schedule.