Fiscal Framework between Scottish Government and Local Government

Engagement

24. Scottish and Local Government are committed to new ways of working in the fiscal relationship going forward, which promotes best practice in engagement to support transparency and accountability. This will encourage a relationship based on collaboration and also improve our shared information and evidence base.

25. This will include engagement on:

• high level policy ambitions;
• strategic issues and themes;
• the demands of the previous, current and subsequent financial years;
• the fiscal and economic circumstances in which decisions must be made for the next financial year; and
• horizon scanning and the impacts for medium to long term financial plans.

26. Local Government will also be provided with opportunities to contribute to the evidence and options for:

• the Programme for Government, which sets out the Scottish Government’s legislative and policy priorities; and
• the Draft Scottish Budget, which sets out the Scottish Government’s proposed spending plan for the relevant financial year.

27. To facilitate this, Scottish and Local Government will hold joint political level meetings at the following key points in the financial year:

• start of the financial year, around the publication of the Scottish Government’s Medium Term Financial Strategy;
• in connection with the Programme for Government at the outset of the autumn;
• following UK Government’s fiscal events;
• pre-Scottish Budget; and
• post-Scottish Budget.

28. Official/officer level engagement will take place throughout the financial year to ensure there is a robust understanding of the evidence and challenges faced by Scottish and Local Government. Developing this shared understanding will be critical in supporting and informing the joint political level meetings outlined above.

29. These meetings should supplement those agreed as part of the Verity House Agreement annual strategic engagement plan which offer a forum to discuss progress towards our three shared priorities and resolve issues and barriers to their delivery.

30. At an official/officer level:

• regular meetings between the Permanent Secretary and COSLA Chief Executive as well as between Scottish Government Executive Team and COSLA’s Senior Management Team. These meetings provide an opportunity for discussion on strategic policy developments, joint priorities, and areas of concern for Local and National Government.
• the Settlement and Distribution Group will continue to meet to consider and make recommendations on distribution and settlement issues.

31. The meetings outlined in this section do not replace on-going Ministerial and official level engagement around specific policy development and delivery and associated funding decisions.

32. A process map at Annex B captures this engagement and the connection to official level preparatory work.