SB(07)13th Conclusions
STRATEGIC BOARD MEETING
14 JUNE 2007
Present | Sir John Elvidge (chair) | |
| Shonaig Macpherson | |
| David Fisher | (dialling in) |
| Robert Gordon CB | (part of meeting only) |
| Andrew Goudie | |
| Kevin Woods | |
| Philip Rycroft | |
| Richard Wakeford | |
| Apologies | Bill Bound | |
In Attendance | Owen Kelly | |
| Sarah Smith | |
| Sarah Davidson | |
| Donald Cameron | |
| John Williams | (For Agenda Item 4 only) |
| David Stewart | (For Agenda Item 4 only) |
Agenda Item 1: Minutes and Matters Arising
1. The minutes of the previous meeting (SB(07)12th conclusions) were agreed. Under matters arising:
Paragraph 1: The Permanent Secretary referred to his note of the previous evening, 13 June, responding to proposals from Directors General about membership of Programme Boards to support delivery of the 5 strategic objectives. He said that decisions about appointing non executive members to Programme Boards should be deferred until after the meeting of the non executive network on Tuesday, 26 June, which would discuss arrangements for non executive participation in the revised organisational structure.
Agenda Item 2: Report from Cabinet
2. Ms Davidson reported on the Cabinet meeting on Tuesday, 12 June and said that the Cabinet Secretary for the Environment and Rural Affairs had reported his participation in the EU Fisheries Council on Wednesday, 13 June where DEFRA Ministers and officials had demonstrated a willingness to engage positively with the devolved administration. Cabinet had agreed proposals on handling End Year Flexibility, and for a Scottish Climate Change Bill. Discussion on the Smarter strategic objective had highlighted its delivery as being critical to the successful delivery of each of the other objectives.
Agenda Item 3: Risk Management
3. The Board noted actions in place to address emerging risks and in particular highlighted the importance of ensuring, wherever possible, that advice from senior officials had been available in advance of significant media announcements (Action: Owen Kelly and PPS/First Minister).
Agenda Item 4: Review of the Budget Act (SB(07)31)
4. Mr Williams and Mr Stewart introduced paper SB(07)31 which proposed options for changing the format of the Budget Act without the need for changes to primary legislation. Mr Williams said that the terms of debate had moved on over the past few months since the paper was drafted and that the administration was now clearly viewed as a single corporate entity. There was no statutory/legal impediment to seeking a single budget approval for the Scottish Government, and the Budget Act in its current format was poorly presented and poorly understood. The proposals were intended to simplify the Act while retaining the level of supporting material in place to allow effective Parliamentary scrutiny. Once agreement was reached on the principle of the proposals there would be issues to address around drafting of the Bill and the need to amend the formal written agreement between the Government and the Scottish Parliament Finance Committee. Virement rules set out in the agreement with Parliament were based on a departmental structure and would need to be revised to take account of the new structure as part of ongoing work around accountability, governance and internal financial management processes. Although there was a good opportunity to change the format of the Budget Act careful handling was required to ensure any misconception that the level of parliamentary scrutiny was being eroded. Mr Stewart added that Audit Scotland had expressed support for the proposals sure that informal consultation in advance of the formal consultation proposed in the paper.
5. In discussion the following points were made:
(a) Ms Macpherson, in her capacity as chair of the Scottish Executive Audit Committee, said that the proposed changes were positive and would enhance public and parliamentary understanding of the financial settlement in Scotland. The Audit Committee would continue to require a clear audit trail and transparency around the Scottish budget;
(b) It would be important to be clear, in describing the proposed changes to Parliament and external commentators, that the proposed changes did not undermine the level of scrutiny of the Executive's budget;
(c) Care was needed to avoid sending unintended signals to spending bodies, and in particular, health boards, that the proposed approach did not lessen the responsibility for robust financial management, or weaken the accountability of spending bodies accountable to the Executive;
(d) Although the proposals were intended to avoid qualification of the Executive's accounts in the event that one portfolio overspent despite expenditure across the whole of the organisation remaining within the overall budget available to the Executive, rigorous scrutiny of financial management at individual portfolio level was expected to continue; and
(e) Final decisions about timing and the overall approach to this issue and should be taken in the light of responses to the proposed consultation - although the Board recognised that some change to the Act was required following the restructuring of the Executive.
6. The Board agreed:
(a) The proposed change to a single budget for the Scottish Executive and the proposed next steps set out in the paper at paragraph 24;
(b) The importance of developing a clear narrative around the proposals which emphasised that the financial accountabilities of spending bodies, including NHS Boards, was not weakened, and that rigorous scrutiny of spending by individual portfolios would remain; and
(c) Final decisions about timing and the overall approach to this issue should be taken in the light of responses to the proposed consultation but that since change was required to reflect the Executive's changed structures, debate should be constructed on the level of - if not this change - what change?
Agenda Item 5: Any Other Business
7. There was no other business.
Date of Next Meeting
8. Thursday, 21 June at 8.30am.
Cabinet and Corporate Business Secretariat
June 2007