MSPs warn affordability not key factor in Government's financial planning
MSPs on Holyrood's Finance and Public Administration Committee also highlighted a "missed opportunity" to reform Scotland's public services.
A critical report examining financial planning by the Scottish Government has claimed "affordability does not appear to be a key factor" in decision making processes.
MSPs on Holyrood's Finance and Public Administration Committee also highlighted a "missed opportunity" to reform Scotland's public services.
Committee convener Kenny Gibson said he hopes the report will "bring much-needed impetus, focus and direction to the Scottish Government's reform programme".
He was speaking as the committee published a report on the sustainability of Scotland's finances ahead of next month's Holyrood budget.
In its medium-term financial strategy announced in May, the Government acknowledged the need for "tough and decisive action".
But in its report, the committee said: "We are concerned that affordability does not appear to be a key factor in Scottish Government decision making."
An earlier report published by the committee in January said the MSPs were "not convinced that the Scottish Government was carrying out enough strategic long-term financial planning to ensure fiscal sustainability".
The committee had claimed the Government appeared to be "firefighting on a number of fronts" - and the latest report said there is "little evidence to suggest a shift away from a short-term approach to financial planning".
The committee is now urging ministers to come up with a "full response" to a report from the Scottish Fiscal Commission which warned Scottish Government spending over the next 50 years could exceed the funding available by an average of 1.7% a year.
This should see the Government "setting out the actions it will take to start addressing the longer term challenges ahead", the MSPs said.
They raised concerns that the Government's capital budget - which is used to fund long-term investment such as infrastructure, hospitals and research and development - will be 16% smaller in real-terms in 2028-29 than it was in 2023-24.
First Minister Humza Yousaf recently pledged to freeze council tax bills across Scotland next year, and the committee used its report to call for more details on how this will be funded.
Adding that a "more fundamental reform of council tax is now overdue", the committee went on to highlight how the Government's planned public service reform programme had "changed multiple times" since May 2022.
MSPs noted the "financial challenges facing the Scottish budget", but the report argued this was a "missed opportunity to be further along the path to delivering more effective and sustainable public services".
It continued: "It is disappointing that commitments to set out further details of the Scottish Government's reform programme have at times not been met.
"Eighteen months into the programme and a lack of clarity remains in relation to the overall purpose, objectives, timetable, upfront costs required and anticipated savings and efficiencies to be delivered."
Mr Gibson said: "As the Scottish Budget approaches, we've seen little evidence to suggest a shift away from the Scottish Government's short-term approach towards financial planning; an approach hampered by reliance on one year UK financial settlements."
The creation of a new expert group to advise ministers on tax was welcomed by the committee, with the convener saying: "Given the financial challenges ahead, it is imperative that their work to create a clear taxation strategy for Scotland proceeds at pace."
Conservative finance spokesperson Liz Smith also raised concerns, saying: "Short-term thinking has, for years, been a hallmark of this SNP government's approach to public finances. It's what has created the black hole in the budget, savage cuts to frontline services, and stagnant growth.
"The Scottish Fiscal Commission, the Auditor General, and now the Scottish parliament's own finance committee have all criticised the lack of forward planning under the SNP.
"All the economic projections show that public services will become unaffordable without reform, increased productivity and attracting people to live and work in Scotland.
"Yet the SNP continually shift their focus, have to fire-fight on different fronts, and are distracted by their own constitutional obsessions, rather than the real priorities."
A Scottish Government spokesperson said: "As we set out in the medium-yerm financial strategy, we will do all we can within our powers to ensure public finances are on a sustainable path.
"The Scottish Government will carefully consider the Finance and Public Administration Committee's report and provide a full response to the committee after the Scottish Budget is published on December 19."