Press release: action to make Scotland’s budgeting clearer

11th August 2021

Today the David Hume Institute publishes a briefing paper proposing a new agreement on multi-year budgeting to deliver more open discussion about funding for public services and to enable longer-term planning for their delivery which will support a more open conversation about spending plans and investment choices. 

Over the last year the David Hume Institute’s Action Project considered the actions needed to move faster towards a more prosperous, sustainable, inclusive and fair country.  

Multi-year planning helps effective investment and productivity, and can be particularly useful on longer term projects, many of which are linked to climate action.

Despite repeated calls over many years to publish multi-year spending plans, it has proved difficult for Scottish Government to achieve this.  As public finances become even tighter post pandemic, this will remain a challenge.

Public and third sector organisations want more certainty about funding to allow them to plan for more than one year at a time. Draft multi-year budgets will help public services plan more efficiently as we emerge from the pandemic.

The Institute’s paper proposes a way forward for the Scottish Parliament, Scottish Government and Audit Scotland to make multi-year budgeting the established norm in Scotland.   

Susan Murray, Director of the David Hume Institute, says:

“The Scottish Parliament and Scottish Government must work together to make multi-year budgeting the established norm in Scotland.  More open discussion about money and budgets, the predictions, assumptions and choices being made is important for Scotland is to achieve its climate, economic and equality targets.

The urgency for this change is backed by findings from the Institute’s Action Project - Scotland’s largest multi-generational research in the last five years. 

Multi-year budgeting would have an enabling impact for organisations, businesses and charities across Scotland.”

Notes to editors:

• For media enquiries please contact Susan Murray, Director@davidhumeinstitute.com 

• The David Hume Institute is an independent Scottish think tank which works towards a prosperous, sustainable, inclusive and fair Scotland. Find out more here.

• The David Hume Institute’s Action Project brought together people from across Scotland to consider the actions needed to move faster towards a more prosperous, sustainable, inclusive and fair country.  Through facilitated conversations with over 5,000 people we identified actions which will help Scotland build forward better. 

• The David Hume Institute worked with partners to reach people of all ages and backgrounds across Scotland.  These included U3A, the Scottish Youth Parliament, the Children’s Parliament and local organisations like InspirAlba in Campbeltown and Resonate Together in Alloa 

• WhatsYourAction.scot research investigated people’s thoughts on action they would like to see to build a more prosperous, sustainable, inclusive and fair country. Whatsyouraction.scot is a resource for everyone who lives in Scotland  and wants to build forward better. WhatsYourAction.scot wants to inform positive action by magnifying real people’s voices and helping them know they are not alone.

• This briefing paper was developed with support of the Action Project Steering Group, with special thanks to Eleanor Ryan and Stephen Boyle with additional support from Professor David Bell and Dr Katherine Trebeck. 

Blog: Prioritising priorities for economic recovery

Blog by Susan Murray, Director, David Hume Institute

20th April 2020

We are moving into a new phase of the Covid-19 public health crisis and thoughts are turning to the foundations for economic recovery.

The sudden and dramatic disruption of the shutdown, triggered an economic shock far bigger than anything we have in recent years. In a webinar, Adair Turner said the number one priority should be increasing consumption to help GDP return to pre-coronavirus levels. Many economists are emphasing the need to make this a V-shaped shock, a sharp decline followed by a quick sustained economic recovery.

But the shutdown has also provoked much reflection on how we are living our lives, both individually and collectively.

Post-pandemic we will still have a climate emergency.  The world’s resources are still finite.  Encouraging those that have money to spend unsustainably might not be the best way forward.

There is a chance to think about established norms.  For instance, will long complicated global supply chains still be desirable?  

Food security has fallen off the Government’s radar in recent years but an increasing number of people have taken action to grow their own food according to figures from the Royal Horticultural Society. Is this a sign of loss of trust in supply chains?

Acting locally doesn't have to be a substitute for thinking globally, it can be an ally. 

The Scottish Government was the first in the world to sign up to the Sustainable Development Goals.  Now more than ever before, these goals need to underlie decision making and ensure that it is not just the industry that shouts the loudest or has the best lobbying that secures public funding.

Scotland would not be alone in considering this as a chance to rethink the path ahead. A group of 180 political decision-makers, business leaders, trade unions, campaign groups and think tanks urged the EU to adopt green stimulus measures. Amsterdam has already shown leadership in announcing it is working with economist Kate Raworth, author of Doughnut Economics on delivering a “Doughnut City”.  

In Denmark bold leadership from the government means companies which pay out dividends, buy back own shares or are registered in tax havens won’t be eligible for any of the aid programs.  Will other countries follow this lead?

Fears of the economic deficit must not be allowed to crowd out smart thinking. There are very strong reasons for not returning to business as usual so propositions aimed at taking us back to things as they were are particularly unlikely to constitute the best approach.

Constructing a positive way forward will involve embracing the complexity of our future choices.

The Scottish Government must hold strong to the UN Sustainable Development Goals and emissions reductions targets, and ensure any precious public money invested to reboot the economy, does maximum public good.