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

Progress to November 2022

Milestone: Benchmarking our fiscal openness and transparency

Review other approaches/international best practice to assess our progress on fiscal openness and transparency

Update and next steps

Progress

We have identified as a key benchmark the International Monetary Fund’s Fiscal Transparency Code (FTC), whose practice maturity levels provide a means to understand progress against a range of key principles over the period of the commitment. By end December 2022 we will scope benchmarking exercise against the IMF FTC, focusing on those FTC principles and practices with a major bearing on fiscal openness and transparency.

Next steps

Development through Q1 and Q2 2023 of a structured and proportionate internal benchmarking exercise providing a broad baseline assessment of current Scottish Exchequer performance against relevant IMF FTC principles and practice levels.

In Q3 and Q4 2023 we aim to broaden benchmarking of our performance against international comparators to include key relevant elements of the Open Budget Index and OECD Principles of Budgetary Governance.

In early scoping and development we will liaise closely with colleagues who are developing the SG Budget Improvement Plan.

Status

In progress.

Milestone: Benchmarking our fiscal openness and transparency

Over the period of the action plan, we will involve a range of stakeholders through our ongoing work on budget improvement

Update and next steps

Progress

We have secured initial resource (from Q3 2022) to develop an implementation plan for taking forward incremental and strategic improvements. This will include the Equality Budget Advisory Group recommendations, work from the Joint Budget Review, output from the Resource Spending Review consultation and wider areas.

On an exceptional basis, for in-year budget adjustments, a high-level summary of equalities and fairness evidence was published alongside the Emergency Budget Review (EBR) on 02 November 2022. The EBR was also accompanied by commentary from an independent expert panel on the economy and an analytical report on the cost of living crisis. The process of preparing an Equality and Fairer Scotland Budget Statement for the 2023-24 Budget has begun. We expect the final Joint Budget Review report to be provided to the Scottish Parliament in the coming weeks. This is the end of a joint piece of work between the Scottish Government and Scottish Parliament to improve our reporting on information related to greenhouse gas emissions in budgetary documentation and support better informed decision-making and scrutiny.

Next steps

Development of a budget improvement plan (expected Q2 2023, as an internal-facing document), with further detail on key improvement milestones planned for 2024-25 budget and future public finance publications. A key early step in this work will be a full review of all existing / live recommendations.

Alongside this, implementation of specific agreed next steps (tbc) from:

• EHRBAG recommendations (Scottish Government response expected to be finalised by end 2022)
• Joint Budget Review of climate change information in budgets (conclusion expected by time of 2023-24 budget and to include specific improvements for both 2023-24 and 2024-25 rounds of budget documentation)

Status

On schedule.

Milestone: Improving accessibility of our fiscal data and information

Establish a programme to take forward recommendations of the Fiscal Transparency Discovery Report. In 2022 we will review existing data to improve structuring, standardisation and data visualisation in the development of a fiscal portal pilot. We will involve stakeholders and engage with a range of users who use fiscal information to inform the development of this work.

Update and next steps

Progress

We have established a Fiscal Transparency Programme, with a programme team and Stakeholder Steering Group. The programme has reviewed potential candidate areas for selection as a fiscal portal pilot and using a weighted scorecard has chosen Infrastructure Investment as the successful pilot area. A procurement exercise for the design and delivery of a solution to support fiscal transparency has been carried out and a prototyping alpha phase has begun. Initial stakeholder engagement has begun through the Fiscal Transparency Commitment Oversight Group; wider engagement with users and stakeholders is being planned.

Next steps

• 01/23 - alpha complete and prototype available
• 03/23 - beta business case approval
• 04/23 - beta commences
• 07/23 - data strategy complete
• 10/23 - Minimum Viable Product delivered
• 12/23 - Roll-out business case prepared
• 12/23 - Roll-out strategy complete

Status

On schedule.

Milestone: Improving accessibility of our fiscal data and information

Establish a procurement management information platform, to deliver improvements to reporting and analytical capability

Update and next steps

Progress

The contract for the Procurement Management Information Platform was awarded in September 2022. We carried out a cross sector consultation exercise with representatives from across the public procurement community and they will be kept fully informed in the design, build and test of the Platform. Initially we will be using core SG data to help develop and build the Platform through a Proof of Concept phase which will deliver key reporting and analytical capability.

Next steps

• 11/22 - Phase 1 Service Design Complete

• 09/23 - Phase 1 Implementation Complete – The Proof of Concept will be completed ready for sign off. Due to the Agile approach reports will be delivered throughout 2023.
• 10/23 - Phase 1 Training Complete - Scottish Government users will be fully trained
• 12/23 - Phase 1 User Acceptance Testing Complete
• 12/23 - Phase 1 Service Rollout Complete - Scottish Government users will be “live” and ready to use the platform as Business as Usual

Status

On schedule.

Milestone: Improving accessibility of our fiscal data and information

Review the accessibility and usability of information and guidance produced for the 2022-23 Autumn Budget Revision and ‘Your Scotland, Your Finances’ publication. Over the period of the Action Plan, we will continue to involve a range of stakeholders through our ongoing work on budget improvement.

Update and next steps

Progress

The ‘Your Scotland, Your Finances’ PDF publication has been replaced by a more accessible web page with plain text. In addition to improving the accessibility of the information, it is now planned to produce an updated version of this document when the new Scottish Budget is published each year and for it to be updated when the Budget Bill is agreed by the Scottish Parliament. The review of information and guidance produced for Autumn Budget revision will now be undertaken in 2023.

Next steps

Work with Scottish Government financial management colleagues to review the guidance note written to explain the autumn budget revisions.

Status

In progress.

Milestone: Improving participation and engagement on the public finances

Review best practice approaches to public engagement to support the development of the next Infrastructure Investment Plan. Including a multi-stakeholder approach to developing the infrastructure Needs Assessment.

Update and next steps

Progress

We are finalising an engagement strategy to assist us in beginning engagement on strategic level decision making. We began implementation of stakeholder engagement in autumn 2022, with engagement on an Infrastructure Needs Assessment based in part of our independent consultant’s scenario modelling. This engagement will continue for the rest of 2023 as the needs assessment scenario modelling work develops.  We are also considering the establishment of an external advisory body on infrastructure, working closely with National Planning Framework 4 and Place colleagues around a possible “Infrastructure, Planning and Place” stakeholder advisory board or group. Further detail will be provided in due course

Next steps

Creation and ongoing engagement with external stakeholder advisory group.

Completion of Infrastructure Needs Assessment.

Status

On schedule.

Milestone: Improving participation and engagement on the public finances

Publish a Framework for Tax, informed by wide ranging engagement, to provide a foundation on which tax policy work in Scotland is based.

Update and next steps

Progress

Responding to the Citizens’ Assembly, Scotland’s first Framework for Tax was published in December 2021. During 2022 several events were held on the Framework and the findings of the Scottish Income Tax 2018-19 policy evaluation alongside the Chartered Institute of Tax and the Institute for Fiscal Studies. We have also published the animated video ‘Raised in Scotland. Spent in Scotland.’ which clearly explains the link between taxes, specifically devolved taxes, and public spending. Engagement work for the 2023-24 Scottish Budget has also been undertaken, though altered slightly as a result of the impact of the UK Government’s mini Budget on devolved taxes and the Scottish economy

Next steps

Re-focus engagement to improve discussions on tax with key stakeholders and the wider population.

Improve communications products for the general public to ensure messaging on tax is better understood.

Status

On schedule.