Protocol between the Scottish Fiscal Commission and the Scottish Government for the Commission s scrutiny of the Draft Budget

Transcription

1 Protocol between the Scottish Fiscal Commission and the Scottish Government for the Commission s scrutiny of the Draft Budget 1. Scope a. This protocol covers engagement between the Scottish Fiscal Commission and the Scottish Government in relation to the Commission s independent remit to scrutinise forecasts prepared by Scottish Ministers to underpin the Scottish Budget. The scope of the Commission s remit for the Scottish Budget covers: 2. Points of contact i. Income tax revenues arising from the powers to set nonsavings, non-dividend rates and bands as set out in the Scotland Act 2016; ii. Land and Buildings Transaction Tax revenues (including revenues from residential and non-residential transactions and the Additional Dwellings Supplement which came into effect on 1 April 2016); iii. Scottish Landfill Tax revenues; and, iv. economic determinants of the forecast of revenues from Non- Domestic Rates. a. The Scottish Fiscal Commission will nominate a single point of contact who will be responsible for ensuring efficient and effective communication between the Commission and the Scottish Government on the arrangements for independent scrutiny of the Scottish Government s forecasts. All communications from the Scottish Government regarding the Commission s scrutiny functions should normally be directed to this single point of contact, and all such communications must at least be copied to this single point of contact. All references in this protocol to communication with or notification to the Scottish Fiscal Commission should be read as communication with or notification to the nominated single point of contact unless otherwise stated. b. If issues arise which cannot be resolved with the nominated single point of contact or in exceptional cases due to the seriousness of the issue or because prompt senior management action is required, the Scottish Government may directly approach the Chief Executive. 1

2 Where issues still cannot be resolved, they will be raised with the Chair of the Fiscal Commission. c. The Scottish Government will also nominate a single point of contact who will be responsible for ensuring efficient and effective communication between the Commission and the Scottish Government on the arrangements for independent scrutiny of the Scottish Government s forecasts. All communications from the Commission regarding its scrutiny functions, including arrangements for challenge meetings, should normally be directed to this single point of contact. In exceptional circumstances, the Commission may approach Scottish Government analysts directly but such communications must be copied to the single point of contact. All references in this protocol to communication with or notification to the Scottish Government should be read as communication with or notification to the nominated single point of contact unless otherwise stated. d. If issues arise which cannot be resolved with the nominated single point of contact or in exceptional cases due to the seriousness of the issue or because prompt senior management action is required, the Commission may directly approach the Director of Financial Strategy. Where issues still cannot be resolved, they will be raised with the DG Finance. 3. Challenge and scrutiny a. The Commission will determine in advance a programme of challenge meetings and provide due notice of each meeting to the Scottish Government via the nominated single point of contact. b. The Commission will set the agenda for each challenge meeting and request papers on specific agenda items from the Scottish Government. The Commission will make best endeavours to provide the Scottish Government with 15 days notice to provide papers. c. The Scottish Government will provide such papers to the Commission at least 5 working days in advance of each meeting. Those papers should be provided to the single point of contact and copied simultaneously to the Commissioners, the Chief Executive, the Commission s PA and the Head of Operations. The Scottish Government will provide a full written explanation in advance if the requested deadline for submission of a paper cannot be met. d. Challenge meetings will be chaired by the Chair of the Scottish Fiscal Commission. 2

3 e. The Scottish Fiscal Commission will be represented by the following people at each challenge meeting i. At least 2 Commissioners, including the Chair; ii. The Chief Executive of the Scottish Fiscal Commission, or their nominated representative; iii. The Head of Budget Preparation, or their nominated representative. f. The Scottish Government will be represented by the following people at each challenge meeting i. the Deputy Director for Fiscal Responsibility Division, or their nominated representative; ii. the Deputy Director for the Office of the Chief Economic Adviser, or their nominated representative; and iii. the author(s) of each analytical paper tabled for discussion at the meeting, or their nominated representative(s), will attend for the relevant agenda item(s). g. The Commission may throughout the scrutiny and challenge process raise forecasting concerns and issues. The Scottish Government may respond to these in preparing its final forecasts, should it wish. This is without prejudice to the Commission s final report and assessment of the reasonableness of the Government s forecasts. h. The Commission will prepare a minute of each meeting, which will be agreed with the Scottish Government prior to publication. i. The Commission will allow at least 5 working days for the Scottish Government to provide comments on a draft minute. ii. Minutes of challenge meetings will not be published until after publication of the Scottish Draft Budget unless expressly agreed between the Commission and the Scottish Government. iii. The Commission may publish a summary of each meeting on its website in advance of publication of the Draft Budget, specifying the date and length of the meeting, attendees and topics discussed, subject to confidentiality requirements. i. The Scottish Government will endeavour to respond to questions on forecasting methodologies or requests for follow up information within 5 working days of receipt. 3

4 4. Access to information a. The Commission has a right of access at reasonable times to any relevant information held by the Scottish Government that the Commission may reasonably require for the purpose of performing its functions. b. This right of access is subject to any enactment or rule of law that prohibits or restricts the disclosure of any information or the giving of assistance or explanation. 5. Confidentiality / commercial in confidence a. As set out in the Framework Document, the Commission is bound by the confidentiality requirements set out in the Code of Conduct for Members of the Scottish Fiscal Commission. b. The Commission must keep all privileged budget information confidential in advance of publication of Scottish Budget. Privileged budget information will include tax policy decisions which the Scottish Government intends to announce in the Scottish Budget. This applies equally to the members of the Commission and to any staff appointed by the Commission to support it in the discharge of its duties. The Scottish Government will ensure that all documents provided to the Commission which contain privileged budget information are marked as such. c. The Commission must also protect all information which is commercial in confidence. The Scottish Government will ensure that any information which it passes to the Commission which may be regarded as commercial in confidence is marked as such. d. Privileged budget information and information which is marked as commercial in confidence must not be shared with external parties. 6. Budget decisions a. The Scottish Government will provide the Commission with sufficient notice of all Budget decisions which impact upon the Commission s work, including any proposed changes to tax rates and bands. 6. In-year updates to forecasts a. The Commission and the Scottish Government will agree an addendum to this protocol to reflect any decision by the Scottish Ministers to update its forecasts between the date of the Draft Budget and 31 March

5 b. It is anticipated that the Commission will independently scrutinise any such updates. 7. Draft report a. The Commission will send a copy of its draft report on the outcome of its independent scrutiny of forecasts prepared by Scottish Ministers to underpin the Scottish Budget to the Scottish Government. This will be sent by to the Deputy Director for Fiscal Responsibility, copied to the designated single point of contact and DG Finance and the Chief Economist. b. The Scottish Government will be invited to confirm the factual accuracy of the report so far as it relates to the forecasting methodologies adopted by the Scottish Government or to the presentation of Scottish Government policy. The Scottish Government will not offer comment on anything other than points of factual accuracy. c. The Commission shares the objective with the Scottish Government that the best possible forecasts are produced. If, following receipt of final Scottish Government forecasts, the Commission considers any or all of the Scottish Government s forecasts to be unreasonable it will inform the Scottish Government of its view and the basis on which it has reached that view. The Scottish Government may choose to revisit its forecasts prior to publication of the Draft Scottish Budget, in which case the Commission would narrate changes made to the forecasts in its report. The Commission will endeavour to provide a copy of the draft report to the Scottish Government at least 10 working days in advance of publication of the Draft Scottish Budget. d. The covering from the Commission will specify the deadline for any comments from the Scottish Government, with an expectation that the Scottish Government will be allowed at least 5 working days to respond from the date of the . e. The Commission and / or the Scottish Government may request a meeting with the other party before the end of the period for providing comments on the draft report in order to discuss any issues arising. 8. Meeting with the Cabinet Secretary for Finance and Constitution a. The Commission will offer to present its findings to the Cabinet Secretary for Finance and Constitution. It is anticipated that the Cabinet Secretary will meet with members of the Commission between submission of the draft report to the Scottish Government and the date of the Scottish Draft Budget in order that the Commission can communicate its findings. 5

6 9. Final report a. The Commission will make best endeavours to send a copy of the final version of its report to the Cabinet Secretary for Finance and Constitution to arrive 2 working days before the date of publication of the Draft Budget. This report will be copied to DG Finance, the Chief Economist and to the designated single point of contact. b. This report is embargoed until the time at which the Scottish Draft Budget is presented to Parliament and will not be released by the Commission or by the Scottish Government prior to this time. 10. Publication and communications a. The Commission will publish its report on the outcome of its independent scrutiny of forecasts prepared by Scottish Ministers to underpin the Scottish Budget at the same time as the Scottish Draft Budget is presented to the Scottish Parliament. b. The Commission will send a copy of any press release to accompany the report to the single point of contact at least 1 working day before the report is published. c. The Scottish Government will send a copy of any press release or other communications commenting on the Commission s report to the Commission at least 1 working day before the report is published. 11. Other reports and publications, including information or analysis provided to Scottish Parliament committees a. The Commission will send a copy of any other reports or publications which it prepares in relation to revenue forecasts prepared by the Scottish Ministers to the Cabinet Secretary for Finance and Constitution and to the designated single point of contact no later than the time of general publication or submission to committees of the Scottish Parliament. b. The Commission will ensure that such publications make clear whether Scottish Government officials have or have not confirmed the factual accuracy of the contents so far as the report relates to forecasts prepared by them. c. The Scottish Government will likewise undertake to provide the Commission with a copy of any reports or publications which refer to the work of the Scottish Fiscal Commission no later than the time of general publication. 6

7 12. Disclosure of information a. If a request is made to the Commission for the disclosure of information obtained from the Scottish Government in the context of the Commission s scrutiny of the reasonableness of forecasts prepared by Scottish Ministers and the information might be regarded by the Scottish Government as sensitive, commercial in confidence or exempt under FOI legislation, the Commission will, where reasonably practicable, consult the Scottish Government before responding to the request. b. The Commission will similarly consult the Scottish Government before volunteering such information to a third party and inform the Scottish Government before including it in any publication. c. If a request is made to the Scottish Government for the disclosure of information obtained from the Scottish Fiscal Commission and the information might be regarded as sensitive, commercial in confidence or exempt under FOI legislation, the Scottish Government will, where reasonably practicable, consult the Scottish Fiscal Commission before responding to the request. d. The Government will similarly consult the Commission before volunteering such information to a third party and inform the Commission before including it in any publication. 13. Use of models under licence a. The Commission is responsible for ensuring that it complies with the terms of any licences attached to models or datasets owned by third parties. 7