Pre-budget scrutiny 2027–28: The affordability and sustainability of Scotland’s tax and spending plans
The Royal Society of Edinburgh (RSE) welcomes the opportunity to contribute to the call for views from the Finance and Public Administration Committee to inform its pre-budget scrutiny of the affordability and sustainability of Scotland’s tax and spending plans. This response draws on insights from a working group of RSE Fellows and Young Academy of Scotland members with extensive knowledge of the Scottish economy and policy processes.
Executive summary
The RSE welcomes the Medium-term Financial Strategy and Scottish Spending Review as well as the revision of the National Performance Framework. However, it is our view that these two initiatives need to be better joined up. Furthermore, concepts like ‘efficiency’ and ‘spending’ need to be defined more precisely in practice. It is also important to acknowledge that while some of the key factors are within the purview of the Scottish Government, others are not.
Overall, the RSE believes the Scottish Government needs to better link its spending allocations to long-term policy objectives. The country is facing pressing challenges including stagnating growth and productivity, an ageing population, and a diminishing workforce. Without radical change to the devolved tax system, a clearer plan for public sector savings, and a greater commitment to properly planned preventative spending, the sustainability of public finances is at risk.
The key documents highlighted by the Finance and Public Administration Committee go into great detail and so this response limits itself to the main questions that need to be addressed. Our conclusions and recommendations dovetail with those of the RSE response to the Public Service Reform Committee’s call for views to inform its pre-budget scrutiny of how the Scottish budget can best advance public service reform, which is cross-referenced as appropriate.
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Publication Date
30/09/2026Identifier
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