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by Staff reporter
15 September 2021
Covid spending transparency becoming ‘increasingly difficult’ warns Audit Scotland

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Covid spending transparency becoming ‘increasingly difficult’ warns Audit Scotland

Maintaining transparency around Covid spending will become “increasingly difficult” as Scotland moves into the recovery phase, the public spending watchdog has warned.

Audit Scotland said defining what is and isn’t spending related to the pandemic was already challenging and that is likely to become harder going forward.

The Scottish Government estimates it has spent over £8.8bn of the £9.3bn allocated to Covid-19 in 2020/21.

The majority of this (£8.6bn) comes from Barnett consequentials of extra spending from the UK government, while the rest has been reallocated from existing budgets.

Around £1.15bn in Barnett funding was carried over from the previous financial year but the UK government has not confirmed this will be allowed again next year.

Audit Scotland warned this will make medium-term financial planning more of a challenge.

Stephen Boyle, auditor general, said: “As Scotland moves into the recovery phase from the pandemic, it will likely become increasingly difficult to define what is, and what isn't, Covid-19 spending.

“The Scottish Government is managing financial pressures which predate the pandemic, such as spending on health and social care.

“That means difficult decisions lie ahead and, despite the challenges, it increases the need for a medium-term plan to manage the levels of uncertainty and volatility facing the Scottish budget.”

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