The Scottish Government Consolidated Accounts for the year ended 31 March 2025

Accountability Report

Corporate Governance Report

The Directors General Report

Information about the Scottish Government, the Scottish Cabinet Ministers and their responsibilities and the Scottish Government Senior Management Team, including the Permanent Secretary, is provided within the Introduction to these accounts, along with the Register of Interests of the members of the Corporate Board of company directorships and other significant interests held.

The governance structure as presented in Figure 1 (below) outlines the current structure.

Statement of Principal Accountable Officer’s Responsibilities

In accordance with the accounts direction (reproduced on page 153) issued under Section 19(4) of the Public Finance and Accountability (Scotland) Act 2000 the Scottish Ministers are required to prepare resource accounts for each financial year in the form and on the basis set out in the Government Financial Reporting Manual (FreM), detailing the resources acquired, held, or disposed of during the year and the use of resources by the Scottish Ministers during the year.

The resource accounts are prepared on an accruals basis and must give a true and fair view of the state of affairs of the Scottish Government, the net resource outturn, resources applied to objectives, recognised gains and losses and cash flows for the financial year.

The Permanent Secretary is the most senior member of the staff of the Scottish Administration and as the Principal Accountable Officer is the Accountable Officer responsible for preparing the accounts and submitting them to the Auditor General for Scotland.

In preparing the accounts the Principal Accountable Officer was required to comply with the Government Financial Reporting Manual and in particular to:

• observe the accounts direction including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis;
• make judgements and estimates on a reasonable basis;
• state whether applicable accounting standards as set out in the FReM have been followed and disclose and explain any material departures in the accounts; and
• prepare the accounts on a going concern basis.

The Principal Accountable Officer confirms that the Annual Report and Accounts as a whole are fair, balanced, and reasonable. The responsibilities of the Principal Accountable Officer are described in the Memorandum to Accountable Officers from the Principal Accountable Officer published in the Scottish Public Finance Manual (SPFM).

For the purposes of the audit, so far as the Principal Accountable Officer is aware, there is no relevant audit information of which the auditors are unaware. The Principal Accountable Officer has taken all reasonable steps to ensure that the Scottish Government’s auditors have been made aware of any information relevant to the audit prior to accounts being authorised for issue.

The Principal Accountable Officer authorised these accounts for issue on the date signed at the end of this report.

Governance Statement

Scope of Responsibility

The Scottish Government’s role is to deliver national outcomes, guided by the present National Performance Framework.

I was appointed as the Permanent Secretary on the 7^th of April 2025, and I am responsible for ensuring that robust governance arrangements are in place to deliver our purpose and National Outcomes in an open and transparent way, including for the year 2024-25 and up to the date of the approval of the Annual Accounts. I am also the Principal Accountable Officer for the Scottish Administration (under the terms of the Public Finance & Accountability (Scotland) Act 2000) and responsible for ensuring the propriety and regularity of finances and the economic, efficient, and effective use of resources. In discharging these overall responsibilities, I am supported by the designated Portfolio Accountable Officers within the core Scottish Government, the Crown Office and Procurator Fiscal Service, Scottish Government Executive Agencies and Health Bodies.

Detailed information on the role and responsibilities of Accountable Officers is set out in the Accountability chapter of the SPFM (Scottish Public Finance Manual) and further detail on the context and purpose of the Governance Statement can be found in the Governance Statement chapter of the SPFM. Figure 1 sets out the approach I have put in place to achieve this.

Corporate Governance System

The Scottish Government’s Corporate Governance system has been designed to provide me with support and advice as Principal Accountable Officer in relation to strategic issues of organisational health, performance, vision and strategy, and effective governance.

The Scottish Government’s corporate governance system provides for clear lines of accountability, effective reporting, and appropriate escalation routes. It enables scrutiny and oversight of the Scottish Government’s activities and provides me with a source of assurance on the effectiveness of the internal control’s framework and corporate governance arrangements in place. In addition, it complies with all governance-related guidance in the SPFM, the Civil Service Code and relevant elements of the Good Governance Standard for Public Services produced by the Independent Commission on Good Governance in Public Services.

In 2023-24, a review of the corporate governance system was undertaken. The recommendations were endorsed by Corporate Board in June 2024, and implementation is underway.

A diagram of the corporate governance structure as of June 2025 is included below at Figure 1. The Accountability and Assurance Framework is also provided at Figure 2 describing the assurance structures operating within Scottish Government.

Figure 1. Corporate governance structure chart: At the top is a box reading ‘To Cabinet’. Directly below that with an arrow upwards is a box that reads ‘Permanent Secretary’. To the left of this box are two boxes with lines that lead into it, one is labelled ‘Remuneration Group’ and the other is labelled ‘Talent & Succession Group’. Below the ‘Permanent Secretary’ box is a box with a line upwards to it labelled ‘Corporate Board’. Below that there are a number of grey boxes with lines leading up to the ‘Corporate Board’ box. The one on the left is labelled ‘Infrastructure & Investment Board’, the one in the middle is headed ‘Executive Team’ and then contains 4 smaller boxes labelled ‘People Executive’, ‘Delivery Executive’, ‘Strategic Executive’, and ‘Investment Assurance’, and the one on the right is headed ‘DG Assurance Meetings’ and then contains 8 smaller boxes labelled DG Communities, DG Education & Justice, DG Strategy & External Affairs, DG Corpoate, DG Health & Social Care, DG Net Zero, DG Economy, and DG Scottish Exchequer. Below the small box labelled ‘People Executive’ there are lines to three boxes labelled ‘People & Place Board’, .Talent Leadership & Learning Board’, and ‘ET Talent’

Figure 2. Overall governance & accountability framework: At the top is a box labelled ‘Scottish Parliament’, there are then three lines from this box leading to different boxes below, labelled ‘Accountable Officers for Other Public Bodies’, ‘Principal Accountable Officer’, and ‘Scottish Ministers’. Below the ‘Principal Accountable Officer’ line there is a line that leads to a box labelled ‘Corporate Board and Executive Team’. This box also has a line up to Scottish Ministers. This box has lines to the right that lead to boxes labelled ‘Remuneration Group’ and ‘Scottish Government Audit and Assurance Committee’. Out of the bottom of the ‘Scottish Government Audit and Assurance Committee’ there is a line to a box labelled ‘DG Assurance Boards’. The box labelled ‘DG Assurance Boards’ has a line to a box labelled ‘Accountable Officers’, and this box also has a line leading up to the box labelled ‘Corporate Board and Executive Team’. The ‘Accountable Officers for Other Public Bodies’ has two dotted lines leading to other boxes in the hierarchy, the ‘Principal Accountable Officer’ and ‘Accountable Officers’ boxes. The ‘Accountable Officers’ box has a line below it to another box labelled ‘Corporate Sub Boards’. Below the ‘Corporate Sub Boards’ box there is a line to another box labelled ‘Assurance Map Components’. Below the ‘Assurance Map Components’ box, there are four columns: The first is headed ‘1st line of defence’ and has 5 boxes below labelled: ‘Implementation of policis and processes’; ‘Risk Management’; ‘Finance Management and decision making’; ‘SRO and Information Asset Owners’; and ‘Performance Management’. The second is headed ‘2nd line of defence’ and has 6 boxes below labelled: ‘Setting of Policies’; ‘Professional Standards’; ‘Oversight of processes’; ‘Training and Guidance’; ‘Corporate oversight and challenge’; and ‘Maintenance of Performance and Risk framework’. The third is headed ‘3rd line of defence’ and has 1 box below labelled ‘Internal Audit’. The fourth column is labelled ‘Other Independent assurances’ and has 3 boxes below labelled: ‘Audit Scotland’, ‘Non-executive Directors’; and ‘Gateway Reviews and PPM Assurance’. Below this is a box labelled ‘Organisational Control Framework.’ Below this box is a box labelled ‘Programme for Government, Civil Service Code, Management information, Budget and budgetary control, Project and Programme Management, Directorate planning process, Scottish Procurement Policy, Risk Management, Counter Fraud Policy, Information Management, Scottish Public Finance Manual, Delivery Essentials: policies, procedures codes of conduct, Public Sector Internal Audit Standards etc.’

Governance arrangements for separate accounting entities

The separate accounting entities within the Scottish Government consolidation boundary have corporate governance arrangements in place appropriate to their individual circumstances and in compliance with relevant guidance. The effectiveness of those governance arrangements is addressed in the Governance Statements provided by the entities as part of their annual accounts. As with the Scottish Government, these arrangements comply with relevant guidance in the SPFM and accepted best practice principles.

Corporate Board

Corporate Board’s purpose is to provide myself, as Principal Accountable Officer, with objective strategic oversight, guidance, and advice in relation to the Scottish Government’s vision and strategy, performance, organisational health, and effective governance. Membership of Corporate Board includes Directors General as my Portfolio Accountable Officers, at least four Non-Executive Directors (NXDs) and myself. The Non-Executive Director members over the period have been Belinda Oldfield, Jayne Scott, Manish Joshi and Jenny Stewart. There are also a number of standing attendees including the Chief Financial Officer, the Director of People Directorate, and the Board Secretary.

Corporate Board has met quarterly over the course of the reporting period and its minutes are published. Corporate Board’s core areas of business for the year included: Public Service Reform and its reform enablers, workforce (including monitoring of workforce metrics and workforce planning), finance including in-year and medium-term financial management, risk including corporate risk and strategic risk horizon scanning, and progress monitoring of Corporate Governance Review recommendations.

The Executive Team

The Executive Team met on at least a twice-weekly basis throughout the reporting period and more frequently as appropriate, focusing on developing and implementing the Scottish Government’s vision and strategy, managing performance and delivery, deploying resources in response to Ministerial priorities and ensuring effective governance and organisational health.

The Executive Team meets in distinct ‘modes’: Strategic, People, Delivery and Investment Assurance, which facilitates enhanced focus on key priorities and issues. The strands of business which are considered in each mode support the delivery of shared objectives that the Permanent Secretary and Executive Team put in place for 2024-25: prioritise, collaborate, design, deliver and perform, develop, and lead.

Meeting in Strategic mode, the Executive Team has provided leadership and direction to ensure that the Scottish Government achieves its goals, considering issues of a cross-cutting nature and considering the strategic design of the organisation. This has included: budget strategy, capital planning and prioritisation, cyber resilience, UK and Scottish Covid Inquiries, compliance culture, pay proposals and Public Service Reform.

Meeting as the People Executive, the Executive Team has focused on issues relating to leadership for delivery, organisational design, workforce strategy, absence management, hybrid working and talent.

The weekly Delivery mode of Executive Team is responsible for providing challenge, leadership, and direction on key delivery priorities across the organisation. The Delivery Executive considers corporate finance monthly, corporate risk quarterly and provides a space for constructive mutual challenge and partnership to support improved delivery and outcomes. It provides me with increased focus and enhanced assurance as Principal Accountable Officer on monitoring the performance and delivery of the key Ministerial priorities of eradicating child poverty, growing the economy, tackling the climate emergency, and delivering sustainable public services. Areas of focus during the reporting period have included: housing, population health, National Performance Framework, climate adaptation and mitigation, investment strategy, prisons, cladding risk and economic inactivity.

In Investment assurance mode the Executive Team considers business cases for endorsement, with a focus on those that are novel and contentious or with significant recurrent spend, to ensure improved investment decision making and fiscal planning and prioritisation.

Scottish Government Audit and Assurance Committee

The Scottish Government’s Audit & Assurance Committee (SGAAC) members are our Non-Executive Directors, and their role is to provide advice and support when I am discharging my Principal Accountable Officer responsibilities in relation to risk, control and governance and associated assurance through the provision of constructive challenge.

Jayne Scott replaced Jim Robertson as Chair of the Committee in September 2024 and served as Chair until her departure from her Non-Executive Director role at the end of April 2025. Manish Joshi was Deputy Chair of the Committee from September 2024 until May 2025, when he took on the role of Interim Chair following Jayne’s departure. Tom Taylor was formally appointed in September 2025 as chair of the Scottish Government Audit and Assurance Committee. David Martin, Neil Wooding, Rory Mair and Fiona Ross also concluded their periods of service as Non-Executive Directors during the reporting period and Neil Richardson, Jim Robertson and Jenny Stewart were re-appointed.

I attend SGAAC along with Directors General, the Chief Financial Officer, the Director for Internal Audit and Assurance and the Board Secretary. Audit Scotland attend SGAAC and have an open invite to attend Director General Assurance meetings as the Scottish Government’s External Auditors. The Auditor General attends SGAAC annually when the Committee considers the Scottish Government’s Annual Accounts and the Governance Statement.

Relevant issues discussed at Director General Assurance meetings are escalated for awareness and discussion to SGAAC or elsewhere in the governance system (e.g. Corporate Board or the Executive Team) as appropriate based on clear escalation criteria. Issues which have been considered for assurance purposes at SGAAC in this reporting period have included: the 2024-25 budget flightpath, fiscal sustainability, Oracle readiness and implementation, Health and Social Care service delivery, workforce planning, public service reform, infrastructure investment, and public bodies sponsorship improvement work. Further improvements have been made to the new approach to monitoring the implementation of Audit Scotland and Internal Audit recommendations.

The issues raised throughout this year, alongside the Director General Certificates of Assurance which underpin this Statement, have been discussed by SGAAC in the period up to my signature of the Statement and the Scottish Government’s Annual Accounts. SGAAC subsequently considered the Statement and the Annual Accounts on 6 October 2025 and no significant control weaknesses were raised other than those disclosed in the significant control issues section of this Statement. A similar process is in place in each of the separate accounting entities within the Scottish Government consolidation boundary.

Director General Assurance meetings

Director General Assurance meetings take place quarterly, providing a dedicated forum in which assurance is sought on the core elements of good governance. Each meeting covers: financial stewardship, people and capability, performance and outcomes, organisational efficiency, risk management and the internal control environment. Relevant risks and issues are escalated for awareness, discussion and/or action as appropriate by SGAAC, the Executive Team or Corporate Board in line with the associated escalation criteria.

Assurance meetings are attended by each Director from the Director General family; the Non-Executive Directors that are aligned with the particular Director General portfolio in their pairing relationship; Audit Scotland; Internal Audit and Assurance; the Board Secretary and relevant officials as appropriate. They provide me with support as the Principal Accountable Officer in the preparation of this Governance Statement and the Scottish Government’s Annual Accounts. The Chair and Deputy Chair of SGAAC have open invitations to attend Director General Assurance meetings and have done so frequently over the reporting period, primarily with a view to calibrating risks, and their management, across Director General Areas and their Directorates.

Following agreement at Corporate Board in March 2024, a number of improvements have been made to the Scottish Government’s assurance arrangements. The new thematic approach to assurance has been rolled out across all Director General families, supporting a more assurance-focussed conversation on Director General priorities, connecting all lines of assurance and aiming to streamline the process and reduce the overall volume of papers.

Aligned to this new approach, Programme for Government commitments and improvements in monitoring delivery, as well as cross-cutting issues including Public Service Reform, path to balance, Oracle implementation and workforce planning featured prominently across Assurance. In addition, quarterly ‘risk workshops’ have been set up across DG families to ensure that risk materials are subject to scrutiny between Assurance rounds, focusing on the accuracy of risk descriptions and scoring, and the sufficiency of actions planned for closure. The impact of these changes was assessed as part of the annual review of the Governance system, which commenced in January 2025.

Following enhancements to performance dashboard material and progress in risk management maturity, the need for continued robust risk management, incorporating useful appetite statements, effective performance reporting and up to date financial and corporate information was recognised in supporting evidence-based assurance, while ensuring proportionality. Arrangements for supporting evidence-based assurance were reviewed through 2024-25 to identify and develop areas for improvement.

Other Corporate Governance Boards

The Corporate Board is supported by a number of corporate sub-boards:

People & Place Board

The People & Place Board provides advice on the creation of the culture and conditions for success in the Scottish Government. It has an information flow into the Executive Team’s People Executive. The Board met in April 2024, August 2024, October 2024, January 2025 and March 2025. In the reporting period the Board has discussed key issues including absence management, development of the Employee Value Proposition (EVP), Hybrid working policy, estates prioritisation, digital programme supporting Public Service Reform, Oracle Cloud implementation, and the People Survey.

Infrastructure Investment Board

The Infrastructure Investment Board (IIB) is chaired by Director General Scottish Exchequer. Its purpose is to strengthen strategic direction and oversight to ensure coherent advice on, and effective delivery of, a well-planned, fiscally sustainable programme of infrastructure investment which supports effective public service delivery and economic growth. It is concerned with what infrastructure is delivered and how that supports government priorities, how best and by whom that infrastructure is financed and ensuring we have governance and processes in place that support effective decision making and delivery.

The Board met in June 2024 and December 2024. In the reporting period it considered items including Mutual investment Model (MIM) governance, Infrastructure Governance, the Medium-Term Financial Strategy (MTFS) and the Scottish Government’s planned infrastructure and investment pipeline reset, and the proposed investment framework underpinning the next Infrastructure Investment Plan.

Strategic Design Authority (SDA)

The Strategic Design Authority (SDA) provided strategic oversight, advice and recommendations to the Permanent Secretary about the organisation’s design and vision. It enabled us to apply intentional design to organisational change and structure around our organisational development.

The Board met for the final time in May 2024. The target Operating Model initial outputs and recommendations were discussed. The board agreed to pause future meetings of SDA to consider the best fit governance route for next stages. This was considered as part of the implementation of the Corporate Governance Review recommendations applying the principles of minimising duplication. At the September Corporate Board, it was agreed that Strategic Design be included in the Terms of Reference for Strategic mode of Executive Team (ET), ensuring an appropriate reporting line for the decisions moving forward.

Talent, Leadership and Learning Board

The Talent, Leadership and Learning (TLL) Board is an expansion of the former Talent Board and met for the first time on 12 June 2024. The purpose of TLL Board is to provide advice and guidance to the Executive Team in People Mode on Senior Civil Service Talent Management, Leadership Development and Learning within core Scottish Government. Key topics in scope include:

• Propose and monitor implementation of corporate learning, leadership and talent strategies for Executive Team in People mode sign off;
• Ensure the conditions are in place to fully embed talent management, leadership development and learning effectively at all levels in the organisation;
• Develop implementation and communication plans;
• Consider reports on the effectiveness and value for money of Talent, Leadership and Learning activity – at corporate and DG level - and make recommendations to the Executive Team in People mode for improvement; and
• Evaluate and agree outcomes across all talent, leadership and learning activity, to provide ET with assurance on return on investment.

The TLL Board met in June, September, December 2024 and March 2025. In the reporting period it considered items including: maintenance of early talent recruitment, the inclusion of the profession model in recruitment process, 9 box grid talent management tool and succession plans, Hybrid Working and the impact on developing talent, the Developing Diverse Leaders programme, outcomes of the annual learning survey and the experience of Talent management across all DGs portfolios, review of Learning and Development (L&D) internal activity and external spend, leadership and learning offer and how to access on Pathways and L&D Strategy creation and implementation.

Internal Audit and Assurance

The Directorate of Internal Audit and Assurance (DIAA) brings together three independent assurance teams (Internal Audit, Digital Assurance Office and Portfolio, Programme and Project Assurance), the Head of Counter Fraud Profession and Counter Fraud Service, and the role of the Data Protection Officer. While the services provided by each of the teams continue independently, an integrated approach to assurance is taken to support the Scottish Government through the provision of proportionate assurance activities throughout the policy to delivery lifecycle.

Audit Scotland, as the Scottish Government’s External Auditors, assess the extent to which they will use the individual reviews undertaken by Internal Audit to inform their opinion on the financial statements, and meet their wider responsibilities, depending on their direct relevance to their work. Each year they also undertake a review of the Scottish Government’s Internal Audit arrangements. Audit Scotland confirmed that their review did not find any areas of non-compliance with the public sector internal audit standards.

Audit Scotland

Audit Scotland attend Director General Assurance meetings and SGAAC, providing updates in relation to current and future work plans. Periodic meetings take place between the Executive Team, the Auditor General and Audit Scotland as part of the Scottish Government’s wider commitment to working together, with the most recent taking place in June 2024.

Regular engagement has also taken place between Audit Scotland and the Directors General, the Chief Financial Officer, the Director of Internal Audit & Assurance and the Board Secretary and others as required. In addition, Audit Scotland meet regularly with the Chair and Deputy Chair of SGAAC in order that Audit Scotland can support them in discharging SGAAC’s responsibilities to me as Principal Accountable Officer.

Non-Executive Directors

At present, there are six Non-Executive Directors providing support, guidance, and constructive challenge to the Scottish Government through the governance structures set out above and through individual pairing arrangements with Directors General. The Non-Executive Directors act as the Scottish Government’s ‘critical friends,’ undertaking and supporting a wide range of work which has assisted me in identifying the issues raised within this Governance Statement.

The former Scottish Government Lead Non-Executive Director, David Martin, stepped back from this role with effect 18 June 2024, and Belinda Oldfield took over as Interim Lead Non-Executive Director from that date. Helen Dean commenced her appointment as Non-Executive Director on 29 July 2024. All new Non-Executive Directors have a tailored induction programme to support them into role. Jayne Scott replaced Jim Robertson as Chair of the Audit Committee in September 2024 and served as Chair until her departure from her Non-Executive Director role at the end of April 2025. Manish Joshi was Deputy Chair from September 2024 until May 2025, when he took on the role of Interim Chair following Jayne’s departure. Neil Wooding, Rory Mair and Fiona Ross concluded their periods of service as Non-Executive Director roles during the reporting period and Neil Richardson, Jim Robertson and Jenny Stewart were re-appointed. Tom Taylor was formally appointed in September 2025 as chair of the Scottish Government Audit and Assurance Committee.

National Performance Framework

The Scottish Government’s National Performance Framework (NPF) and Programme for Government set the priorities, plan the activity and monitor the progress and performance across the organisation. This framework continues to develop to reflect the Government’s approach to accountability and support the Government’s aim for transparency. The internal Performance and Delivery process provides the Cabinet, Ministers and the Executive Team with routine, regular and transparent reporting, and assurance on the performance of the Government’s key priority areas, as set out in its Programme for Government. The framework seeks to align across programme, budget, and resourcing, bringing more visibility, support, and challenge to delivering outcomes and developing key performance indicators.

The National Performance Framework has been the foundation for a transformative shift in how policy is developed and delivered in Scotland. It is Scotland’s wellbeing framework, which currently highlights 11 National Outcomes and combines measurement of how well Scotland is doing in economic terms with a broader range of wellbeing measures. These indicators incorporate a range of different types of data, from social attitudes and perceptions to economic and environmental statistics, to paint a broad picture of Scotland’s performance.

A statutory review of the National Outcomes and subsequent Scottish Parliament inquiry, as per the requirements of the Community Empowerment Act (2015), concluded in January 2025. The Deputy First Minister, in her response to the inquiry on 14 January, stated the Scottish Government would take further time to ‘rethink and reform the National Performance Framework’. In practice, no immediate changes will be made to the NPF, including the National Outcomes and National Indicators. As reporting has paused the NPF website will not be updated, however indicator data will continue to be published, until the next iteration of the National Performance Framework is finalised close to the next parliamentary session. Work is ongoing to develop a reformed NPF, which will involve the creation of proposed new outcomes, indicators, and an implementation plan, in conjunction with a range of relevant stakeholders. These proposals will be subject to Ministerial agreement.

Social Security Scotland

The annual accounts of Social Security Scotland have had an audit qualification each year since 2018-19. This is in respect of the regularity of an estimated level of overpayments attributable to fraud and error in benefits administered by the Department for Work and Pensions. The estimated level of overpayments attributable to fraud and error in the benefits, delivered by the Department for Work and Pensions on Social Security Scotland’s behalf, is not deemed material for the Scottish Government consolidated accounts.

Work to develop the capability to estimate the extent of fraud and error present within Social Security Scotland caseloads progressed in 2024-25. Primary legislative change to support estimation of client induced error and fraud came into force in January 2025, with further necessary work to develop or amend secondary legislation ongoing. Official statistics for estimated levels of official error in Best Start Grant were published in November 2024 and official error in Scottish Child Payment between May and October 2024 was published on 17 June 2025. Social Security Scotland has its own counter-fraud response measures in place and continues to develop both its data-driven approach to proactive identification of fraud and error risk, and its investigative capability.

Although actual benefit expenditure was 0.7% variance from the Spring Budget Revision for 2024-25, the Scottish Government have specifically recognised a risk to the Scottish budget of Social Security expenditure being materially different from forecasts due to its demand led nature. The Scottish Fiscal Commission has formal responsibility for producing forecasts and explaining variations from forecast.

Corporate Transformation

The implementation of the Oracle Cloud platform is one of the largest transformation projects the Scottish Government has undertaken in years. It has brought our HR, Finance and Purchasing data into one integrated solution, delivering a single data source. There is more to be done - our existing budgeting and forecasting will be replaced through future releases of the Enterprise Performance Management (EPM) to make greater use of the data and promote greater insights to support decision making.

The platform was implemented in the Scottish Government and 32 public sector organisations in October 2024. A phased approach on 1 October saw around 3,000 users begin accessing the first 3 finance modules, with the HR component rolled out to the full customer base (around 20,000 users) across Scottish Government core and 32 public sector bodies on 7 and 8 October. A further rollout on 14 October saw the implementation of additional finance modules. The platform has been built around a suite of best practice processes, adopted from the UK Government Global Design principles (now superseded by NOVA Functional Reference Model) and was implemented in response to the recognition that the previous Finance and People platforms, SEAS and e-HR respectively, were approaching the end of their useful lives and had not kept pace with the scale or functions of the organisation. Ahead of go-live, the 32 customer organisations received assurance from Scottish Government outlining the rigorous quality assurance and security in place for the platform.

Significant work was undertaken to prepare for the introduction of Oracle, and the associated strengthened controls of processes, and assurance of the security and modernity of the new platform. The operational controls were fully implemented on 1 October 2024, and work continued throughout 2024-25 to ensure these controls were fully embedded and operating as expected.

Training was provided ahead of implementation and this was supplemented by a period of enhanced post implementation support to our users. Based on the post go-live feedback to address user feedback we have implemented platform enhancements building on user experience and requests from customer organisations. Stabilisation has taken longer than expected, broadly because of issues with the time and labour Oracle Time and Labour (OTL) module within the system with the Scottish Government continuing to work with third party suppliers through to resolution of all issues, while noting that a SaaS (software as a service) product will always be subject to change and monitoring of business impact of those changes. The operating model continues to be developed to ensure corporate teams are able to maximise benefits for Ministers and customers of our corporate operations and shared services. To ensure that the platform continues to meet the ever-evolving needs of modern government, the Scottish Government has put in place a dedicated management team which is managing and maintaining the platform.

Scottish Government’s Assurance Framework

Annual assurance on the adequacy and effectiveness of the core Scottish Government’s governance, risk management and internal control systems is provided by the Scottish Government’s Director of Internal Audit and Assurance. In the annual assurance report submitted to SGAAC at its meeting on 2 June 2025, the Director of Internal Audit and Assurance confirmed that a reasonable assurance opinion had been provided on the systems for risk management, control, and governance within the Scottish Government.

Risk Management Arrangements

Risk management remains a critical component of the Scottish Government’s Assurance Framework. The Government’s approach to risk management, as set out and published in the Risk management section of the SPFM was reviewed and updated in 2025 to introduce a principles-based approach that can be adopted across the public sector. In alignment with the update to the SPFM, a further review of the Scottish Government’s internal guidance on the management of risk was undertaken including the review and approval of organisation’s Risk Management Strategy and Policy by the Corporate Board. All guidance is also consistent with the UK Government’s Orange Book and best practice.

In 2024-2025, emphasis has shifted from the policy and process towards culture and practice; with activity targeted towards embedding and integrating risk management into the culture of the organisation. An area of considerable focus has been the development and implementation of a new set of risk appetite statements that provide a consistent approach to the management and acceptance of risk. Continued embedding of this approach and movement towards appetite-based risk discussion and decision-making will be a key plank of 2025-26 cultural improvement. During the year, the Risk Management Policy Team have also worked closely with Strategy and Delivery teams to ensure that reporting around delivery confidence, in the context of the Programme for Government, is consistent and aligned to the identification of risk to delivery of Scottish Government priorities ensuring that reporting across risk and delivery is coherent.

The organisation operates a network of risk champions: colleagues appointed by their Director to support and develop risk management maturity within individual directorates. The current approach has been in place since October 2021 and, this year, a review was undertaken to understand the effectiveness of risk champions in improving risk culture. The output of that review has confirmed that risk champions are crucial to the development of good practice whilst also highlighting the need to ensure that roles and responsibilities for risk management are enforced throughout the organisation, that Directors are regularly engaging with their champion, and greater skills development support is required to ensure that risk champions can deliver their role effectively. A re-launch of the risk champion role, supported by new guidance, additional tools and training opportunities took place in June 2025.

In addition to the role of the risk champion, risk management learning for all staff is critical to embedding best practice within the Scottish Government and mandatory eLearning for all staff remains in place; as at 31 March 2025, 97% of the organisation had undertaken the required learning. To consolidate the mandatory learning, a refresher eLearning course was launched in April 2025, designed to work through each element of the Scottish Government Risk Management Framework and focus on typical roles and responsibilities at each grade level.

During the last year, further automated risk reporting tools have been launched allowing all risk register users, at all levels, to summarise and visualise their risks in a way that supports tailored and targeted discussion on the management of risk. At Executive Team and Corporate Board, the Strategic Risk Landscape report continues to ensure that there is an understanding of the wider risk eco-system of civil contingency emergency risk and longer-term horizon trends stretching into the next 10 to 20 years. Further work is required in 2025-26 to ensure that this risk landscape is coherent, complementary and communicated in a way that ensures a better understanding of the connections and interactions between risks to delivery and the wider risk environment in which the organisation operates. In June 2025, the “Future Trends for Scotland” report was published which has fulfilled a commitment made by the Scottish Government to the Finance and Public Administration Committee to support leaders across Scotland to make future-focused decisions.

Scottish Government Key Risks

The Scottish Government’s corporate governance system has been designed to ensure that risks to its organisational health and policy performance are identified, managed, and mitigated effectively.

Over the last year a number of policy-specific risks have been identified, managed, and monitored through the assurance processes and included in the Scottish Government’s Risk Register. The Register is a living document and is updated on an ongoing basis. A short summary of the risk focus at the end of the period covered in this Statement is included below:

• Fiscal Sustainability: ensuring the medium to long term sustainability of public sector finances through understanding of fiscal performance, risks, management of spending and credible expectations around the resources available in the future. This risk is linked to ensuring that Public Sector Pay settlements do not exceed affordable pay metrics and a credible Infrastructure Strategy and Plan is developed and aligned to strategic delivery priorities.
• Climate Change Mitigation: the delivery of policies that will reduce Greenhouse Gas emissions in response to the climate emergency and deliver a just transition to net zero.
• Climate Change Adaptation: strengthening approaches to adapting to the ‘locked in’ impact of climate change on Scotland and its people, ensuring adequate preparedness and resiliency to the risks posed by a changing climate.
• Child Poverty: development of the next Tackling Child Poverty Delivery Plan that will cumulatively deliver at the pace and scale required to meet the holistic needs of parents and the statutory targets in 2030.
• Health and Social Care Delivery and Reform: the need to implement a series of measures that will see operational improvement to health and social care services alongside development and implementation of a reform strategy to improve and provide services that are sustainable in the long term.
• Preventative Population Health: developing a decisive shift towards greater prevention of ill health and promotion of wellbeing across all government policy to improve the health of the people of Scotland and reduce demand on services.
• Public Service Reform: collective development, implementation and monitoring of long term and short-term plans for service reform across the public sector to improve outcomes; reduce cost and reduce inequalities.
• Public Sector Cyber Resilience: ensuring awareness of, and preparation for, the growing cyber threat to the public sector in alignment with Framework for a Cyber Resilient Scotland and supported by the Scottish Cyber Coordination Centre.
• Prison Population: ensuring that appropriate measures are in place, both long and short term, to manage the increasing population of Scotland’s prisons.
• Cladding Remediation: delivering the Cladding Remediation Programme to address unsafe cladding in residential buildings as set out in the Housing (Cladding Remediation) (Scotland) Act.
• Housing Emergency: advancing a strategic approach to housing, in partnership with Local Authorities and key stakeholders to meet Scotland’s housing needs.
• Tertiary Education Stability: working with the Scottish Funding Council to understand, and, where appropriate, respond to the financial stability of institutions in the higher and further education sector.

The Scottish Government’s risk management arrangements have also surfaced several cross-cutting risks and themes, which are reflected in the current iteration of the Scottish Government’s Risk Register and have been highlighted via Director General assurance meetings or through the Certificates of Assurance provided to me by my Directors General. Many of these risks and themes are also addressed specifically within other sections of the statement as appropriate. These include:

• The importance of employee engagement and wellbeing in ensuring the Scottish Government’s workforce is productive and steps are taken to reduce absence and retain key skills.
• The importance of maintaining strong and productive relationships with Local Government and Business through the Verity House Agreement and New Deal for Business, respectively, to understand the impact of policy decisions and foster collaborative approaches to delivery. As well as the need to ensure productive engagement between the UK and Scottish Governments on both devolved and reserved matters through maximisation of opportunities to collaborate.
• The challenges surrounding the annual financial outturn amidst a backdrop of an increasingly challenging fiscal position, a demand-led budget, and rising costs.
• The provision of information to the UK and Scottish Covid Inquiries and the consideration and implementation of recommendations from both.
• Ensuring a productive relationship between Government, Public Bodies, Ministers and Trade Unions is a strategic enabler to delivering public service and workforce reform.
• Open and Transparent Government: taking action to commit to a more proactive approach to transparency, openness and accountability in decision making.
• Security and Business Continuity: delivering technical, physical and cultural improvement to secure, protect and respond to threats to the Government’s critical systems, buildings and people.

Sponsorship of Public Bodies

The Scottish Government has continued to embed Strategic Sponsorship as best practice through assurance processes, with sponsorship being actively managed as a risk at both a Portfolio and Directorate level.

In light of issues highlighted by Audit Scotland regarding the Water Industry Commission for Scotland (WICS), each Director General family successfully completed deep dives into Scotland’s public bodies, testing the robustness of the Scottish Government’s governance and accountability frameworks. A total of 109 bodies were captured in the risk review. Whilst the review found that most bodies were rated as green (68) or amber (32), nine bodies were rated red. Six of those rated red were NHS health boards, all of which were on the NHS Scotland Support and Intervention Framework. The other three were bodies with ongoing, well-known issues (including WICS). As a result of the deep dives four main recommendations were identified and actioned within 2024-25:

• Sponsorship is to be viewed as a specialism, with Sponsorship Team and Senior Civil Service objectives developed in 2024 and in place for the 2025-26 reporting year.
• A peer-led Sponsorship Forum is now established, with representatives from across the Scottish Government, providing a community to discuss issues and develop best practice.
• Establishment of the Public Body Advice and Support Network, enabling sponsorship teams and Director Generals to have a central resource, comprising of existing expertise, which ensures more rigour and consistency in the support provided when live issues arise.
• Annual Deep Dives becoming part of the reporting of strategic sponsorship within each Director General Family, reinforcing the recommendations of the Ryan review.

On 19 June 2025, the Public Service Reform Strategy was published. The Strategy emphasises enhanced person-centred access to services that are efficient, good quality and effective, prioritising the needs of people, communities and places and maximising public value and ensuring fiscal sustainability. It also sets out the government’s commitment to transform the way public services are delivered in Scotland; making them more efficient, joined up, and preventative in focus. These changes are vital to ensuring public services remain sustainable and continue to deliver for the people of Scotland. It will also set the strategic direction to drive the pace and scale of reform, with a dual focus on improving outcomes and achieving fiscal sustainability, as it is also closely integrated with the strategic approach to public spending outlined in the Medium Term Financial Strategy (MTFS).

Health Inquiries and Investigation

In 2024-25 across DG Health and Social Care (HSC), a number of active public inquiries and investigations were underway, some of which were entirely the responsibility of DG HSC in terms of statutory response, and others required a contribution as part of a whole SG response. Those inquiries and investigations included the Scottish Hospitals Inquiry, Operation Quadric, The UK and Scottish Covid Inquiries, The Crown Office and Procurator Fiscal Service (COPFS) Investigation into Covid related deaths in Scotland, The Eljamel Inquiry, the Infected Blood Inquiry, and The Scottish Child Abuse Inquiry.

All responses to the various inquiries and/or investigation requests have been delivered to the appropriate quality standard and detail, with all responses to statutory requests being responded to within the legal timeframes. Furthermore, all witnesses who have been identified and engaged as part of the on-going inquiry and investigation work have been fully supported, both by the dedicated response teams, but also through access to legal services and support, including (when required) access to independent legal services and advice.

The response requirements and associated risks have been managed through the dedicated response teams, with the resourcing of those teams being regularly reviewed. Response success, however, also relies heavily on the effective engagement of the wider HSC response network, established to offer policy leadership and response contributions where required. Data Access Agreements are, where appropriate, in place with all witnesses (external to the Scottish Government) to provide assurances that information that is shared as part of these processes is handled/managed securely and secure information sharing arrangements are in place with the Inquiry, witnesses and our external legal advisors.

Information governance and management protocols and methodologies are in place and regularly reviewed with structured lessons learned exercises undertaken following each stage of inquiry/investigation response. Established policy networks across DG HSC are also in place to support the responses to the various inquiries and investigations with dedicated legal services in place and under contract.

Significant Issues

The process for the provision of annual assurances by senior staff within the core Scottish Government (and the other constituent parts of the Scottish Administration) is set out in the Certificates of Assurance section of the Scottish Public Finance Manual. The culmination of this process is the provision of Certificates of Assurance from Directors General that reflect any issues raised by Directors, as well as any other issues raised throughout the course of the year in either the Director General Assurance process, by SGAAC, by Non-Executive Directors, the annual assurances by Internal Audit and consideration of information on control issues received in respect of any associated executive agencies, non-ministerial departments and sponsored bodies.

In preparing this Statement, my assessment of whether an issue represents a significant issue is based on a review of its materiality, relevance, and impact on the organisation and its governance as a whole. It is also based on the assurances provided by Directors General, including whether they believe they have been able to effectively discharge their responsibilities as Portfolio Accountable Officers. On this basis, the issues I have identified are as follow:

Fiscal Sustainability

The Scottish Government assesses the fiscal outlook for the medium-term on an annual basis. This analysis shows that there remains a gap between forecast funding and projected expenditure over the medium-term, with the public finances expected to continue facing significant challenges going forward. The wider global context remains volatile with continued uncertainty over economic performance, inflation, and funding levels from the UK Government. Challenges also continue in relation to the increased cost of replacing complex and ageing infrastructure due to construction inflation. Due to the wide range of factors affecting the fiscal position, confidence in existing controls has been limited with the Scottish Government Audit and Assurance Committee (SGAAC) continuing to reserve their assurance over the medium-term fiscal sustainability.

Enhanced governance and delivery assurance of the levers within the control of Scottish Ministers will be put in place following publication of the 2025 Medium-Term Financial Strategy (MTFS) and Fiscal Sustainability Delivery Plan (FSDP) in June 2025. Comprehensive advice was provided by the Scottish Government as part of the Budget 2025-26 process, supporting Ministers in making informed and sustainable fiscal decisions. The UK Government’s recent return to regular Spending Reviews will also allow the Scottish Government to strengthen its medium-term financial planning.

The next Scottish Spending Review later in 2025 and the move to regular UK Spending Review cycles is expected to provide a more stable framework for financial management and control over the medium-term period. The MTFS and FSDP provided enhanced transparency over the scale of the fiscal challenge and the Scottish Government’s plan to address this. However, achieving the savings outlined in the FSDP will require sustained attention and delivery discipline by all Accountable Officers across the Scottish Government and its partners. Establishing strong delivery tracking of the measures in the FSDP in line with the Public Service Reform Strategy, multi-year public spending governance mechanisms, and control frameworks will be key priorities for the year ahead to support risk reduction and ensure the Scottish Government is positioned to deliver its medium-term financial strategy.

Financial Management

Although the overall financial picture remains an area of risk, spending controls and management activity to address the risk of potential overspend or a failure continue to be in operation, helping to mitigate the risk of a potential breach of the Scottish Budget or Scotland Reserve in 2024-25. There has been further focus and alignment of value for money, investment and outcomes in 2024-25 with improvement in the understanding, streamlining and early notification of funding to partners for 2025-26. As per standard practice, delegation of authority for spend flows from accountable officers to Directors, then on to Deputy Directors to manage staffing and budgets. Portfolio Accountable Officers continue to scrutinise budget and allocations to identify efficiencies and ensure adherence to the Scottish Public Finance Manual (SPFM). Similarly, where Ministers seek advice on cross-portfolio policies, funding responsibilities are appropriately shared across relevant portfolio areas. However, vigilance and collective action across all portfolios and stakeholders remains essential to provide necessary assurances and controls regarding the delivery of the path to budget balance in 2025-26. Given the current financial and resourcing pressures, prioritisation of the right people with the right skills at the right time to deliver Ministerial priorities has also been essential.

Governance and Monitoring of NHS Boards

The NHS Scotland Support and Intervention Framework sets out a transparent process for Scottish Government to support and intervene in territorial NHS Boards that are struggling to meet delivery standards or services. NHS Boards can be escalated for a number of issues including those associated with specific services or organisational issues. Nine territorial NHS Boards in Scotland were formally escalated to Stage 3 or above on the Framework. Grampian, Ayrshire and Arran, Borders, Highland, Dumfries and Galloway and Orkney were escalated in regard to financial management, but are all being provided continued financial monitoring and support by the Health Finance Financial Delivery Unit. Tayside, Highland and Lothian continue to be monitored in relation to Mental Health Performance, while support is being provided to assist towards a path of de-escalation. Grampian were escalated for Leadership and Governance to stage 4 alongside financial sustainability. Lastly, Forth Valley was de-escalated from Stage 4 to Stage 3 in relation to Governance Leadership and Culture and continues to make considerable progress in delivering their Assurance and Improvement Plan. In 2025-26, the NHS Support and Intervention Framework web page has been updated to include informal Stage 2 escalations to enhance transparency and support being provided to territorial NHS Boards across Scotland.

Resilience and Reform of the NHS

The NHS requires significant renewal and reform to ensure that we have a sustainable health service, given the scale of growing demand being faced. On 4 June 2024, the Cabinet Secretary for Health and Social Care set out a new vision to address this challenge and give focus. Our vision is to ‘enable people to live longer, healthier and more fulfilling lives’, and it requires a focus on prevention, early intervention and quality and efficient services.

On 27 January 2025, the First Minister described three plans to support the delivery of the vision, renew our health service and deliver the change that people in Scotland need. The NHS Scotland Operational Improvement Plan published on 31 March 2025 is the first component. Following this, was the publication of Scotland’s Population Health Framework in June 2025 that sets out how the Scottish Government, COSLA, Local Government, the NHS and partners across business, the third sector and communities themselves, can increase the positive effects that social and economic drivers have on population health, mitigate those areas that contribute to negative outcomes and build a Scotland that positively supports health and wellbeing. This will be a whole systems prevention focused approach strengthening how elements can operate together nationally and locally, to drive collective accountability for population health outcomes and inequalities and reorientate resources to primary prevention.

Finally, the Health and Social Care Service Renewal Framework (SRF) was also published in June 2025. Together these plans will progress reform to ensure long-term sustainability, reduce health inequalities, further harness the benefits of digital technology, and improve population health outcomes in Scotland. They will drive forward work under each of the three pillars of Public Service Reform and set out how we will plan our services for our whole population over the short, medium and longer term.

On 1 April 2024, Scottish Ministers also commenced the Health and Care (Staffing) (Scotland) Act 2019. The Act builds on existing policies and procedure and provides a statutory basis for the provision of appropriate staffing in health and care services, enabling safe and high-quality care and improved outcomes for service users. We continue to manage escalated risks at DG level in connection with workforce planning and capacity, noting in particular that health service performance continues to be challenged in relation to future workforce demand, based on long-term planning assumptions. We are taking steps to ensure that there is sufficient policy support in place by working closely across impacted areas. Risk mitigation is under regular review and is considered at monthly governance meetings.

People Management

The Scottish Government continues to manage capacity and capability challenges by deploying sustainable resourcing solutions that prioritise essential services and Ministerial priorities. This has involved a focus on ensuring that the Scottish Government is operating with the right people, the right skills, in the right place and in a timely way on key issues. This year the priorities have included clear performance standards and regular development focused feedback, flexibility, and optimising how and where we work. These priorities have been underpinned by a focus on strong values, while building a diverse and inclusive working environment. Portfolio areas have developed workforce plans which support Ministers’ delivery priorities. These cover skills and capability development and prioritisation, and governance and recruitment controls were maintained and enhanced to manage and deliver agreed headcount reductions within agreed budgets. Mandatory training and learning and development have also been used to improve our work.

European Structural and Investment Funds (ESIF)

Performance, financial, people and reputational risks related to ESIF have been escalated to SGAAC and the Corporate Risk Register but are now being managed at Portfolio level. The core long-term financial risk is that the Scottish Government may be subject to financial corrections by the European Commission at programme closure between 2025 and 2028, with post-audit penalties for regulatory non-compliance remaining a possibility.

Higher and Further Education

The Scottish Funding Council’s (SFC’s) report on the Financial Sustainability of Colleges, published in January 2024, confirmed that the financial position of colleges was deteriorating and that colleges face a number of financial risks. Universities faced separate financial pressures, including with reference to reductions in income from foreign students. Having previously been reflected in wider institutional sustainability risks across public services, a specific risk on the financial sustainability of colleges and universities was escalated to the Corporate Risk Register during the year and remains above the risk appetite. Action is being taken by Ministers and officials in response to this risk through joint work with the SFC and tri-partite engagement with the SFC and Colleges Scotland and Universities Scotland, as the representative bodies for the sectors.

During the final months of 2024-25, a specific financial sustainability risk arose at the University of Dundee. The university is an autonomous institution. Within its statutory powers the SFC provided additional liquidity support to the university. Further actions have been taken, including the commissioning by SFC of an independent investigation into the circumstances that gave rise to the financial issues at the university and the establishment of a Taskforce to consider how to support the wider contribution of the university. Key risks remain as the university develops its financial recovery plan, including through engagement with the SFC and external consultants.

Strategic Commercial Assets

Scottish Government manages a high-profile portfolio of commercial assets including Ferguson Marine, Glasgow Prestwick Airport, and interests in the Lochaber smelter and hydro scheme. Governance of these assets has improved significantly, with Audit Scotland recognising recent progress. A dedicated team now manages this portfolio, improving consistency, assurance and expertise. Where necessary, the team draws on specialist external advice to help manage risk effectively. A recent transparency review has led to plans for new Strategic Commercial Assets Division (SCAD) web pages and new Transparency Assurance Panel by September 2025. The Strategic Assets Review Group, established in 2022, continues to provide valuable oversight and supports the development of a centre of expertise capable of advising across Scottish Government. Scrutiny from Parliament and media remains high, and work continues to secure the specialist external expertise required to manage risk effectively.

Water Industry Commission (WICS)

In December 2023, Audit Scotland published a Section 22 report into WICS which identified significant failures in the financial management and governance of the organisation in the 2022-23 financial year. The report also highlighted other issues with financial management such as unreceipted expenditure and expenditure that significantly exceeded approved subsistence rates. The Auditor General expressed concern around public money being spent without due process and expenditure not representing value for money. An independent review of governance of WICS was undertaken during the summer of 2024 which was led by the Scottish Government Directorate for Internal Audit & Assurance. Around the same time, as part of SG 2024-25 Internal Audit Plan, a review of sponsorship arrangements covering WICS was also undertaken. In December 2024, a second Section 22 report on WICS was published. The findings of this, and the recommendations made by the Public Audit Committee, have been responded to. Work remains ongoing to address the issues raised and is being closely monitored.

Counter Fraud Activity

Guidance on the prevention, detection, reporting and handling of fraud is included in the Fraud section of the SPFM. The Integrity Group is responsible for improving fraud prevention measures across the Scottish Government as well as monitoring relevant cases of suspected external and internal wrongdoing made through formal reporting lines. This includes supporting and reporting on the concerns that are raised under the Public Interest Disclosure Act 1998. The Group is also available to provide advice on the handling of specific allegations of external and internal wrongdoing where required. The Group meet regularly, and report work annually to SGAAC as part of the Annual Fraud Report. The membership of the Group is represented by Counter Fraud, Risk, Control and Assurance, Propriety and Ethics Group, Finance, Human Resources, Information Security, Scottish Government Legal Directorate, and Internal Audit.

An annual report on fraud within the Scottish Government’s consolidation boundary is prepared annually for SGAAC and includes all types of fraud, error, and other acts of dishonesty such as theft which have been reported to the Scottish Government during the 2024-25 financial year excluding the NHS which is reported by NHS National Services Scotland Counter Fraud Services (NHS NSS CFS). During the 2024-25 financial year a total of 75 cases of fraud and 11 cases of suspected or attempted fraud were recorded in addition to 1 case of error and 3 cases of third party grant fraud were reported. There were no cases of wrongdoing or of theft reported for 2024-25.

The Scottish Government also continues to participate in the biennial National Fraud Initiative (NFI) exercise led by Audit Scotland to help public bodies minimise fraud and error in their organisations. Audit Scotland published the National Fraud Initiative in Scotland 2024 which covered the data from the 2022-23 exercise aiming to prevent and detect fraud across public bodies in Scotland. To date the 2024-25 exercise identified a total of 3,072 matches for the Scottish Government, ranging over 19 reports. As in prior years, the investigations are split between payables (creditors), payroll and procurement. The total number of matches processed so far has been 2,921, of that number; 7 were closed due to already being known and 936 were closed after finding no frauds or errors were detected. A further 1,978 matches were closed as they were not selected for investigation due to their being assessed as low risk.

During 2024-25 improvements towards greater counter fraud maturity have been made, including fraud risk assessments completed in areas of high fraud risk and strategic fraud risk profiling to understand specific areas of vulnerability to fraud. The Counter Fraud Toolkit, containing tools, guidance, and templates for managing fraud risk is now freely accessible through the Pathways platform for colleagues across Scottish Government and Scottish Government organisations, and ensures that fraud risk management is consistent and targeted at the highest risk areas. In addition, the Scottish Government’s counter fraud guidance has been refreshed and updated to ensure it is aligned to current best practice in public sector fraud prevention.

In addition to the counter fraud activity above, there is also a whistleblowing policy available to all staff. The policy covers the types of concerns that can be raised, general processes and support that can be accessed. To ensure that employees who raise a concern feel safe from repercussion, the Scottish Government maintain their commitment to confidentiality and anonymity by enabling employees to raise concerns via several routes, which includes the organisation’s counter fraud processes.

Cyber Security

Cyber resilience is a critical enabler as the landscape continues to change significantly. Whilst organisations have been focused on rapidly adapting new and hybrid working arrangements, cyber criminals are consistently evolving their tools and techniques to stay ahead of the curve.

As demonstrated very visibly by the cyber-attacks on the Scottish Environment Protection Agency in 2020, Comhairle nan Eilean Siar in 2023 and NHS Dumfries and Galloway in March 2024, the cyber threat is very real and growing. Phishing continues to be the most common form of attack as a springboard for more sophisticated ransomware attacks. The Scottish Government reviews public sector cyber resilience annually and is improving its strategic capability and capacity to respond to the escalating level of threat and achieved Cyber Essentials accreditation in December 2024. Cyber security and resilience will continue to require attention and focus next year.

Multiagency cyber incident coordination groups were formed in response to incidents involving National Records of Scotland (NRS) data being released as part of the NHS Dumfries and Galloway cyber attack in March 2024. This quickly assisted NRS with the incident response by ensuring that Police Scotland, Scottish Government and National Cyber Security Centre were fully sighted on the incident. Ensuring that all appropriate resources were in place to mount a quick and effective response.

Proportionate cyber protection is in place, including a Cyber Incident Response Plan tested through exercise. Several work streams which underpin the strategy are in progress and a Cyber Education plan has been developed. Cyber security incidents are co-ordinated as required with relevant stakeholders and the Scottish Government are demonstrating leadership around cyber resilience, sharing knowledge, and learning and seeking to pro-actively identify and resolve issues. The Strategic Framework for a Cyber Resilient Scotland will be updated again in 2025.

Data Protection

The landscape in this subject area has remained stable over the year. Information assurance and security are strategic risks for the Scottish Government. Director General Corporate, as the Senior Information Risk Owner (SIRO), is the owner for these risks at Executive Team level. Corporate policies and guidance are in place to ensure that the Scottish Government meets its legislative and procedural obligations to protect the information assets and minimise the likelihood of a data loss incident, with staff data protection training compliance rate currently at 87%. A Deputy SIRO now supports the SIRO.

151 personal data security incidents were recorded internally and reported in the Director General Assurance reports covering the 2024-25 period for the Core Departments (an increase of 44 on last year). Two reports were made to the Information Commissioner’s Office (ICO) in this period and no enforcement action was taken by the Commissioner. All internally reported incidents were assessed, and actions taken where necessary to minimise impact and recurrence. The number of incidents is in range of the number recorded since data has been collected, with most being minor (misdirected e-mails or redaction errors).

A dedicated Data Protection Officer has been in place since the introduction of the General Data Protection Regulation (GDPR) in May 2018. With a new post-holder in the role this year and new data protection legislation coming into force, the aims, objectives, and tasks of the role are currently under review. Registration with the ICO is up to date, staff are trained in data protection and engagement with ICO on legislation and data protection impact assessments is frequent and cooperative. In light of the recent high profile incident of data breach by UK Government Officials in relation to the Afghan Relocation Assistance Programme, the Scottish Government has sought assurances regarding its own processes in relation to the protection of personal data and will take note of any specific lessons learned from this incident.

Written Authority

The management of Ferguson Marine Port Glasgow (FMPG) and delivery of the Glen Rosa remain under intense scrutiny. Strategic Commercial Assets Division participates in the Glen Rosa Review Group, alongside Caledonian Maritime Assets Limited and Ferguson Marine Port Glasgow and maintains a regular presence at the yard and on the company board meetings.

A new permanent Chief Executive Officer (CEO) and two non-executive directors have been appointed, bringing valuable expertise in shipbuilding and audit. The revised delivery plan for MV Glen Rosa, approved by the Board of Ferguson Marine on 27 March, identified further delays and costs exceeding the 2025-26 budget. The updated plan, showing a revised delivery date of Quarter 2 2026 and a total cost to complete forecast of £185 million, was shared with the Net Zero, Energy and Transport Committee on 16 April. The Government has appointed external advisers to work alongside officials to review the updated plan and prepare an updated Accountable Officer assessment.

Ferguson Marine presently has no substantial pipeline of work beyond the Glen Rosa apart from a sub-contract for the fabrication of steel units for BAE’s Type 26 frigate programme. In the absence of further contract awards, it is anticipated that, as the Glen Rosa progresses towards completion and commissioning, a greater proportion of the workforce will become under-utilised with a corresponding rise in unrecovered overhead costs.

A new business plan will be submitted by the Board, which will prompt critical decisions on future investment and strategic direction. In 2023-24, DG Economy was not assured of value for money on expenditure related to hull 802 and received written authority from Ministers to proceed, with further authority requested in November 2024. Cost concerns remain, and FMPG’s Board is expected to monitor delivery closely against estimates.

Remuneration and Staff Report

The information in the Remuneration and Staff Report relating to the remuneration and pension benefits of ministers, law officers, senior management and non-executive directors, fair pay disclosures, staff numbers, staff costs, analysis by pay bands and the number of exit packages have been audited by external auditors.

Appointments

Civil service appointments are made in accordance with the Civil Service Commissioners' Recruitment Principles, which require appointments to be on merit on the basis of fair and open competition, but also include the circumstances when appointments may otherwise be made.

Director-General members of the Scottish Government Corporate Board are appointed following approval by the Head of the Home Civil Service, following consultation with the First Minister in accordance with the Constitutional Reform and Governance Act 2010. Prior to the introduction of the Constitutional Reform and Governance Act 2010, appointments were approved by the Prime Minister.

Unless otherwise stated, all of the Executive members of the Scottish Government Corporate Board, covered by this report, hold appointments which are open-ended until they choose to retire. The rules for termination of appointments are set out in chapter 11 of the Civil Service Management Code. Early termination, other than for misconduct, would result in the individual receiving compensation as set out in the Civil Service Compensation Scheme. The Scottish Government, its Agencies and the Crown Office and Procurator Fiscal Service, in line with the rest of the UK Civil Service, introduced a policy of no mandatory retirement age for the Senior Civil Service from 1 October 2009, in line with the implementation of the Employment Equality (Age) Regulations 2006. Under current arrangements, an individual's pension will become payable from age 60 if they were employed in the Civil Service prior to 30 July 2007, and in these circumstances that employee can choose to leave work and collect his or her pension at any time from age 60, subject only to compliance with the basic notice of leave requirements. The Government announced a number of reforms to civil service pensions which were applied from 1 April 2015. Subsequent pension arrangements are detailed further below in the appropriate sections.

The Civil Service Commissioners website provides further information about their work.

The Non-Executive Directors provide advice, support and challenge to the Permanent Secretary as Principal Accountable Officer (PAO) and Directors General as Accountable Officers (AO). Non-Executive Directors of the Scottish Government are appointed by the Permanent Secretary for an initial period of three years with an annual review.

Jim Robertson stepped down as Chair of SGAAC, and therefore member of the Corporate Board, on 30 June 2024. The position was taken over by Jayne Scott on 1 July 2024, who vacated the position of SGAAC Deputy Chair on 30 June 2024.

Manish Joshi, who was appointed as Non-Executive Director on 15 April 2024, became the interim Deputy Chair of SGAAC on 1 July 2024.

David Martin stepped down as Non-Executive Director on 18 June 2024. The Lead Non-Executive Director position was taken over by Belinda Oldfield on an interim basis.

Jenny Stewart joined the Strategic Design Authority on 29 May 2024 and therefore became a member of the Corporate Board.

Helen Dean was appointed as Non-Executive Director on 29 July 2024.

Neil Wooding and Fiona Ross stepped down as Non-Executive Directors on 28 June 2024 and 31 January 2025, respectively.

Rory Mair, appointed as Non-Executive Director on 15 April 2024, stepped down on 3 March 2025.

The Terms and Conditions of Non-Executive Directors set out that the appointments may be terminated at any time by agreement, or with three months’ notice, provided by either party.

Remuneration Policy

The remuneration of senior civil servants (SCS) is set in accordance with the Civil Service Management Code and with independent advice from the Review Body on Senior Salaries (SSRB).

In reaching its recommendations, the SSRB is to have regard to the following considerations:

• The need to recruit, retain, motivate and where relevant, promote suitably able and qualified people to exercise their different responsibilities;
• Regional / local variations in labour markets and their effects on the recruitment, retention and, where relevant, promotion of staff;
• Government policies for improving the public services including the requirement on departments to meet the output targets for the delivery of departmental services;
• The funds available to departments as set out in the Government's departmental expenditure limits; and
• The Government's inflation target.

Further information about the work of the SSRB can be found via the Office of Manpower Economics website.

SCS pay is reserved and decisions regarding pay levels and pay awards are in line with the UK SCS pay and performance framework and rules. Scottish Ministers provide governance oversight to support alignment with the Scottish Public Sector Pay Policy.

The SCS pay ranges with effect from 1 April 2024:

SCS Pay Steps	Deputy Director 1	Deputy Director 1A legacy grade	Director	Director General
Target Rate-4	-	-	£108,393	£138,533
Target Rate-3	-	-	£110,561	£141,303
Target Rate-2	£90,718	£90,718	£112,773	£144,129
Target Rate-1	£92,533	£92,533	£115,028	£147,012
Target Rate	£94,383	£94,383	£117,329	£149,953
Target Rate +1 (DD1A)	-	£95,710	-	-

There were no non-consolidated payments in 2024-25.

The Permanent Secretary’s salary and performance-related pay are set as part of a UK Cabinet Office framework and agreed by the Prime Minister.

Non-executive directors receive fees on a quarterly basis. Non-executive directors are also reimbursed for expenses incurred in the course of their duties.

Remuneration

The remuneration of the Cabinet Ministers who served over the year to 31 March 2025 and members of the Scottish Government Corporate Board is noted below.

Ministers (audited)

The remuneration of the First Minister and the Cabinet Ministers during the year to 31 March 2025 is shown in the table below. Ministerial salaries included in the table below are additional to the salaries (2024-25: £72,196, 2023-24: £67,662) and entitlements as MSPs which are borne by the Scottish Parliament. The full year salary rate for the First Minister is £104,584 (2023-24: £98,016) and for all other Cabinet Ministers is £54,256 (2023-24: £50,849).

	Salary 2024-25 £	Salary 2023-24 £	Pension Benefits *2024-25 £	Pension Benefits *2023-24 £	Total Remuneration 2024-25 £	Total Remuneration 2023-24 £
John Swinney, MSP (1)	97,620	12,524	36,630	-	134,250	12,524
Kate Forbes, MSP (2)	48,714	12,524	19,019	-	67,733	12,524
Humza Yousaf, MSP (3)	63,147	99,971	840	38,929	63,987	138,900
Nicola Sturgeon, MSP (4)	-	64,378	-	-	-	64,378
Michael Matheson, MSP (5)	12,712	43,543	-	0	12,712	42,162
Shirley-Anne Somerville, MSP	54,256	50,849	21,160	9,795	75,416	60,644
Keith Brown, MSP (6)	-	12,524	-	-	-	12,524
Mairi Gougeon, MSP	54,256	50,849	21,160	15,881	75,416	66,730
Angus Robertson, MSP	54,256	50,849	21,160	15,881	75,416	66,730
Shona Robison, MSP	54,256	50,849	21,160	15,881	75,416	66,730
Neil Gray, MSP	54,256	50,849	23,873	22,356	78,129	73,205
Angela Constance, MSP	54,256	50,849	18,447	17,275	72,703	68,124
Jenny Gilruth, MSP	54,256	50,849	21,160	19,814	75,416	70,663
Mairi McAllan, MSP	54,256	50,849	21,160	19,814	75,416	70,663
Fiona Hyslop, MSP (7)	54,256	7,452	21,160	2,803	75,416	10,255
Gillian Martin, MSP (8)	40,692	-	15,889	-	56,581	-

* The value of pension benefits accrued during the year is calculated as the real increase in pension multiplied by 20 less the contributions made by the individual. The real increase excludes increases due to inflation or any increase or decrease due to a transfer of pension rights.

(1) John Swinney was appointed as First Minister on 7 May 2024. His salary and total remuneration for 2024-25 includes a benefit-in-kind of £3,438 arising from the provision of accommodation at Bute House (2023-24: £0). His salary and total remuneration in 2023-24 includes MSP and office-holder resettlement grant as per the Scottish Parliamentary Pensions Act 2009 after his appointment as Deputy First Minister and Cabinet Secretary ended on 29 March 2023.

(2) Kate Forbes was appointed as Deputy First Minister and Cabinet Secretary for Economy and Gaelic on 8 May 2024. Her salary and total remuneration in 2023-24 includes MSP and office-holder resettlement grant as per the Scottish Parliamentary Pensions Act 2009 after stepping down as Cabinet Secretary on 28 March 2023.

(3) Humza Yousaf stepped down as First Minister on 7 May 2024. His salary and total remuneration for 2024-25 includes a benefit-in-kind of £172 arising from the provision of accommodation at Bute House (2023-24: £1,955) and MSP and office-holder resettlement grant as per the Scottish Parliamentary Pensions Act 2009.

(4) The former First Minister, Nicola Sturgeon received MSP and office-holder resettlement grant in 2023-24 as per the Scottish Parliamentary Pensions Act 2009.

(5) Michael Mattheson stepped down as Cabinet Secretary on 8 February 2024. His salary and total remuneration for 2024-25 include MSP and office-holder resettlement grant as per the Scottish Parliamentary Pensions Act 2009. His pension benefit in 2023-24 is expressed as zero as the increase in 2023-24 was not sufficient to offset inflation increase, that is, in real terms, the pension value was negative.

(6) Keith Brown received MSP and office-holder resettlement grant in 2023-24 as per the Scottish Parliamentary Pensions Act 2009.

(7) Fiona Hyslop was appointed as Cabinet Secretary on 8 February 2024.

(8) Gillian Martin was appointed as Acting Cabinet Secretary for Net Zero and Energy on 1 July covering the maternity leave of Mairi McAllan.

Scottish Government Ministers’ Pay Freeze Commitment

The Scottish Parliament Corporate Body (SPCB) is required under Chapter 46, Section 81 of the Scotland Act 1998 to make provision for the payment of salaries to MSPs, Officeholders of the Parliament and Ministers. A resolution of the Parliament to pay salaries in accordance with the Scottish Parliamentary Salaries Scheme was passed by the Parliament on a free vote on 21 March 2002. The Scheme determines that the Scottish Parliamentary Corporate Body should decide the salary levels for Members and Officeholders including the Law Officers. The Scheme determines that Members’ and Officeholders’ salary rates should be increased annually from 1 April in line with public sector pay rises in Scotland, using the Annual Survey of Hours and Earnings published by the Office for National Statistics.

Scottish Government Ministers and the Law Officers have previously agreed to freeze pay as at their April 2009 pay level. The Salaries Scheme does not give the power to withhold an annual increase. To achieve the required reduction, pay increases are deducted from the Ministers’ and the Law Officers’ net salaries and repurposed for use by the Scottish Government. The disclosure reflects the salary awarded under the Scottish Parliamentary Salaries Scheme.

Law Officers (audited)

The remuneration, comprising of salary and pension benefits, of the serving Law Officers for the year to 31 March 2025 is shown below:

Law Officer	Salary 2024-25 £’000	Salary 2023-24 £’000	Pension Benefits *2024-25 £’000	Pension Benefits *2023-24 £’000	Total Remuneration 2024-25 £’000	Total Remuneration 2023-24 £’000
Dorothy Bain KC	143	134	56	42	199	176
Ruth Charteris KC	123	116	54	42	177	158

* The value of pension benefits accrued during the year is calculated as the real increase in pension multiplied by 20 less the contributions made by the individual. The real increase excludes increases due to inflation or any increase or decrease due to a transfer of pension rights.

No Law Officers received benefits-in-kind.

Senior Management Team (audited)

The remuneration of the Permanent Secretary and members of the Scottish Government Corporate Board for the year to 31 March 2025 were as follows:

Senior Management Team	Salary 2024-25 £’000	Salary 2023-24 £’000	Pension Benefits *2024-25 £’000	Pension Benefits *2023-24 £’000	Total Remuneration 2024-25 £’000	Total Remuneration 2023-24 £’000
John-Paul Marks	190-195	180-185	109	58	300-305	240-245
Lesley Fraser	145-150	140-145	98	65	245-250	205-210
Ken Thomson (1)	-	90-95	-	105	-	195-200
Alyson Stafford CBE	165-170	155-160	-	-	165-170	155-160
Nicola Richards	115-120	110-115	69	68	185-190	175-180
Ruaraidh Macniven	115-120	105-110	71	47	185-190	155-160
Caroline Lamb (2)	205-210	200-205	80	78	285-290	280-285
Joe Griffin	140-145	135-140	89	62	230-235	195-200
Jackie McAllister	115-120	110-115	80	52	195-200	160-165
Andy Bruce	110-115	105-110	66	48	175-180	155-160
Roy Brannen	140-145	135-140	97	65	240-245	200-205
Louise Macdonald OBE	140-145	135-140	56	54	200-205	190-195
Gregor Irwin	150-155	145-150	59	57	210-215	200-205
Neil Rennick (3)	135-140	90-95	129	125	265-270	215-220

* The value of pension benefits accrued during the year is calculated as the real increase in pension multiplied by 20 plus the real increase in any lump sum less the contributions made by the individual. The real increases exclude increases due to inflation or any increase or decreases due to a transfer of pension rights.

The pension benefits of any members affected by the public service pensions remedy which were reported in 2022-23 based on alpha membership for the period between 1 April 2015 and 31 March 2022 have been reported since 2023-24 based on PCSPS membership for the same period.

The final salary pension of a person in employment is calculated by reference to their pay and length of service. The pension will increase from one year to the next by virtue of any pay rise during the year.

(1) Ken Thomson formally retired on 24 November 2023. The full year salary band in 2023-24 was £135-140k. His salary and total remuneration for 2023-24 includes untaken annual leave.

(2) Caroline Lamb has a dual role as Chief Executive of NHS Scotland and Director General Health and Social Care.

(3) Neil Rennick joined the Corporate Board as Director General Education and Justice on 17 July 2023. He took over from Joe Griffin who moved into the role of Director General Strategy and External Affairs from 4 September 2024. The full year salary band in 2023-24 was £130-135k.

The pension benefit figures for Caroline Lamb, Louise Macdonald, Gregor Irwin, and Neil Rennick for 2023-24 have been restated as these were not published in the 2023-24 Scottish Government Consolidated Accounts due to an exceptional delay, outwith the Scottish Government’s control, in the calculation of these figures following the application of the public service pensions remedy.

No members of the Scottish Government Corporate Board received performance pay, or payments for voluntary severance or loss of office.

Fair pay disclosures (audited)

In accordance with the Government Financial Reporting Manual (FReM), reporting bodies are required to disclose the relationship between the mid-point of the remuneration of the highest-paid member of the Senior Management Team in their organisation and the median, 25th and 75th percentile remuneration of the organisation's workforce. The median and percentile calculations include directly employed staff paid through Scottish Government Core payroll, including both permanent staff and those on fixed term contracts.

The FReM requires remuneration disclosures to include agency and other temporary staff engaged to cover established vacancies, including within the fair pay ratio calculation. However, under the current system, agency and temporary workers are not assigned equivalent grades to permanent staff, which prevents their inclusion in the fair pay ratio on a directly comparable basis.

Work is ongoing to improve data capture and it is expected that current reporting limitations will be addressed during the next rollout of the Corporate Transformation programme.

To support transparency, the annualised gross remuneration of the highest-paid agency or temporary worker has been calculated and is disclosed separately below as Maximum Total Remuneration.

The ratios are calculated as the mid-point of the highest band divided by the total remunerations.

The pay system within Scottish Government is such that there are a large number of staff on relatively few pay steps with significant gaps between some of them, resulting in a median, 25^th and 75^th percentile pay figure occasionally changing markedly from one year to the next.

The pay ratios are consistent with the pay, reward and progression policies for the Scottish Government’s employees taken as a whole.

Fair Pay Disclosures	2024-25 £'000	Restated 2023-24 £'000
Minimum Total Remuneration	25	24
Maximum Total Remuneration (temporary agency worker)	495	495
Band of Highest Paid member of the Corporate Board Total Remuneration	205-210	200-205

The maximum total remuneration outlined in the table above is based on gross remuneration (including basic pay, commission, holiday pay, PAYE, and NI) on a full-time equivalent (FTE) basis. The agency worker was engaged on a part-time, interim basis.

In 2024-25, the individual worked for six months and received gross remuneration in the range of £135-140k. In 2023-24, the individual provided services over a four-month period and received gross remuneration in the range of £85–90k. Gross costs in both financial years equate to an annualised FTE of approximately £490–495k.

The total remuneration of the highest paid member of the Corporate Board increased by 1.8% between 2023-24 and 2024-25, while the total remuneration of Scottish Government employees taken as a whole increased by 6.2% in the same period.

The total pay and benefits and pay ratios to the highest paid Director are shown in the table below.

	2024-25	2023-24	Movement
25th percentile remuneration	£40,041	£37,156	7.8%
Ratio to highest paid Director	5.2:1	5.4:1	-
Median remuneration	£52,231	£48,031	8.7%
Ratio to highest paid Director	4.0:1	4.2:1	-
75th Percentile remuneration	£71,942	£62,969	14.2%
Ratio to highest paid Director	2.9:1	3.2:1	-

Equivalent information relating to senior managers of the other bodies consolidated within these accounts is given in their respective annual accounts.

Total remuneration includes salary, non-consolidated performance-related pay, and benefits-in-kind. It does not include severance payments, employer pension contributions or the cash equivalent transfer value of pensions.

No Senior Management Team officials received non-consolidated performance-related pay or benefits-in-kind.

Non-Executive Directors (audited)

Remuneration

Fees are paid on a quarterly basis for their position as Scottish Government Non-Executive Directors. The Scottish Government is treated as a Tier 1 organisation with reference to the Public Sector Pay Policy which describes pay arrangements for Chairs, Board Members and Public Appointments in terms of a daily fee, in a tiered system. Tier 1 reflects the importance, size and responsibilities of the Scottish Government within the Scottish public sector.

There is a differentiation in remuneration levels between:

• The Chair of SGAAC, who undertakes additional responsibilities compared with members of the Committee;
• The Lead Non-Executive Director, who undertakes additional supporting functions for the Principal Accountable Officer; and
• All other Non-Executive Directors who do not undertake any of the above roles.

Benefit-in-Kind

The monetary value of benefits-in-kind covers any benefits provided by the Scottish Government and treated by HM Revenue and Customs as a taxable emolument. No non-executive members of the Scottish Government Corporate Board received benefits-in-kind. The Non-Executive Directors do not participate in the Civil Service Pension Scheme.

The fees for the Non-Executive Directors who were members of the Scottish Government Corporate Board or were invited to attend the Corporate Board were as follows:

Non-Executive Directors	2024-25 Fees £’000	2023-24 Fees £’000
Ronnie Hinds (1)	-	0-5
Jim Robertson (2)	10-15	15-20
Jayne Scott (3)	15-20	10-15
Belinda Oldfield (4)	15-20	10-15
David Martin (5)	0-5	10-15
Manish Joshi (6)	10-15	-
Jenny Stewart (7)	10-15	-
Neil Richardson	10-15	10-15
Fiona Ross (8)	10-15	10-15
Helen Dean (9)	5-10	-
Rory Mair (10)	10-15	-
Neil Wooding (11)	0-5	10-15

(1) Ronnie Hinds concluded his Non-Executive Director appointment on 5 June 2023. The full year fee was £15-20k.

(2) Jim Robertson stepped down as Chair of SGAAC on 30 June 2024, but remained a Non-executive Director. The full year fees were £15-20k and £10-15k, respectively.

(3) Jayne Scott became the Chair of SGAAC on 1 July 2024, vacating her previous position of Deputy Chair. The full year fees were £15-20k and £10-15k, respectively.

(4) Belinda Oldfield was appointed as the Lead Non-Executive Director on an interim basis on 18 June 2024, previously being the Non-Executive Member of the Strategic Design Authority. The full year fees were £15-20k and £10-15k, respectively.

(5) David Martin stepped down as Non-Executive Director on 18 June 2024. The full year fee was £15-20k.

(6) Manish Joshi was appointed as Non-Executive Director on 15 April 2024 and became the interim Deputy Chair of SGAAC on 1 July 2024. The full year fee was £10-15k for both positions.

(7) Jenny Stewart joined the Strategic Design Authority and became a member of the Corporate Board on 29 May 2024. The full year fee was £10-15k.

(8) Fiona Ross stepped down as Non-Executive Director on 31 January 2025. The full year fee was £10-15k.

(9) Helen Dean was appointed as Non-Executive Director on 29 July 2024. The full year fee was £10-15k.

(10) Rory Mair was appointed as Non-Executive Director on 15 April 2024 and stepped down on 3 March 2025. The full year fee was £10-15k.

(11) Neil Wooding stepped down as Non-Executive Director on 28 June 2024. The full year fee was £10-15k.

Neil Richardson, Fiona Ross, Helen Dean, Rory Mair, Neil Wooding and Jim Robertson (from 1 July 2024) are not members of the Corporate Board, but they were invited to take part in Corporate Board meetings as standing attendees from 17 March 2025 going forward, and are therefore included in the table above.

Pension Benefits

Ministers (audited)

The pension entitlements of the Cabinet Team for the year to 31 March 2025 are shown below:

Ministers	Accrued pension at age 65 as at 31-Mar-25 £'000	Real increase in pension at age 65 £'000	CETV at 31-Mar-25 £'000	CETV at 31-Mar-24 £'000	Real Increase in CETV £'000
John Swinney, FM	0-5	0-2.5	42	0	32
Kate Forbes, MSP	0-5	0-2.5	12	0	7
Humza Yousaf, FM	0-5	0-2.5	31	27	1
Shirley-Anne Somerville, MSP	5-10	0-2.5	132	103	16
Mairi Gougeon, MSP	5-10	0-2.5	59	40	10
Angus Robertson, MSP	5-10	0-2.5	84	57	17
Shona Robison, MSP	5-10	0-2.5	90	61	19
Neil Gray, MSP	0-5	0-2.5	31	14	12
Angela Constance, MSP	0-5	0-2.5	34	16	14
Jenny Gilruth, MSP	0-5	0-2.5	31	14	10
Mairi McAllan, MSP (1)	0-5	0-2.5	26	12	7
Fiona Hyslop, MSP	0-5	0-2.5	28	3	19
Gillian Martin, MSP	0-5	0-2.5	17	0	12

(1) CETV at 31 March 2024 has been restated as the wrong age was applied in last year’s pension calculations.

The real increase is the increase due to additional benefit accrual (i.e., because of salary changes and service) that is funded by the employer. It will be smaller than the difference between the start and end Cash Equivalent Transfer Values (CETVs) because it does not include any increase in the value of the pension due to inflation or due to the contributions paid by the employee or the value of any benefits transferred from another pension scheme. Nor does it include any increases (or decreases) because of any changes during the year in the actuarial factors used to calculate CETVs.

The Cash Equivalent Transfer Value

This is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the pension benefits they have accrued in their former scheme.

The pension figures shown relate to the benefits that the individual has accrued because of their total Ministerial service, not just their current appointment as a Minister.

The Ministers are members of the Scottish Parliamentary Pension Scheme. Full details are available on the Scottish Public Pensions Agency scheme website.

CETVs are calculated in accordance with The Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are taken.

Law Officers (audited)

The pension entitlements of the Law Officers are shown below:

Law Officers	Accrued pension at pension age as at 31-Mar-25 £’000	Real increase in pension at pension age £’000	CETV at 31-Mar-25 £'000	CETV at 31-Mar-24 £'000	Real Increase in CETV £’000
Dorothy Bain KC	5-10	2.5-5	249	168	54
Ruth Charteris KC	5-10	2.5-5	172	116	41

Senior Management Team (audited)

The pension entitlements of the Permanent Secretary and Executive Members of the Scottish Government Corporate Board are as follows (equivalent information relating to senior managers of other bodies consolidated within these accounts is given in their respective annual accounts):

Senior Management Team	Accrued pension at pension age and related lump sum as at 31-Mar-25 £'000	Real increase in pension and related lump sum at pension age £'000	CETV at 31-Mar-25 £'000	CETV at 31-Mar-24 £'000	Real Increase in CETV £'000	Employer contribution to partnership pension account £'000
John-Paul Marks	65-70	5-7.5	1,170	1,044	71	-
Lesley Fraser	65-70 plus a lump sum of 165-170	5-7.5 plus a lump sum of 5-7.5	1,603	1,475	90	-
Alyson Stafford CBE (1)	-	-	-	-	-	24
Nicola Richards	50-55 plus a lump sum of 20-25	2.5-5 plus a lump sum of 0-2.5	1,076	970	59	-
Ruaraidh Macniven	40-45 plus a lump sum of 105-110	2.5-5 plus a lump sum of 2.5-5	938	842	56	-
Caroline Lamb	20-25	2.5-5	365	264	64	-
Joe Griffin	55-60 plus a lump sum of 135-140	2.5-5 plus a lump sum of 2.5-5	1,196	1,075	71	-
Jackie McAllister	60-65	2.5-5	1,141	1,034	61	-
Andy Bruce	35-40 plus a lump sum of 90-95	2.5-5 plus a lump sum of 2.5-5	744	664	46	-
Roy Brannen	65-70 plus a lump sum of 170-175	5-7.5 plus a lump sum of 5-7.5	1,620	1,467	89	-
Louise Macdonald OBE	5-10	2.5-5	155	94	42	-
Gregor Irwin	5-10	2.5-5	109	52	41	-
Neil Rennick	55-60 plus a lump sum of 145-150	5-7.5 plus a lump sum of 7.5-10	1,369	1,193	120	-

(1) Alyson Stafford chose not to be covered by the Principal Civil Service Pension Scheme arrangements during the reporting years.

(2) The CETV as at 31 March 2024 has been restated for Nicola Richards due to Remedy calculations.

Accrued pension benefits included in this table for any individual affected by the Public Service Pensions Remedy have been calculated based on their inclusion in the legacy scheme for the period between 1 April 2015 and 31 March 2022, following the McCloud judgment. The Public Service Pensions Remedy applies to individuals that were members, or eligible to be members, of a public service pension scheme on 31 March 2012 and were members of a public service pension scheme between 1 April 2015 and 31 March 2022.

The basis for the calculation reflects the legal position that impacted members have been rolled back into the relevant legacy scheme for the remedy period and that this will apply unless the member actively exercises their entitlement on retirement to decide instead to receive benefits calculated under the terms of the Alpha scheme for the period from 1 April 2015 to 31 March 2022.

There is no automatic right to a lump sum for officials who are members of the Premium Pension Scheme or the Nuvos Pension Scheme.

The real increase is the increase due to additional benefit accrual (i.e., because of salary changes and service) that is funded by the employer. It will be smaller than the difference between the start and end Cash Equivalent Transfer Values (CETVs) because it does not include any increase in the value of the pension due to inflation or due to the contributions paid by the employee or the value of any benefits transferred from another pension scheme. Nor does it include any increases (or decreases) because of any changes during the year in the actuarial factors used to calculate CETVs.

Civil Service Pensions

Pension benefits are provided through the Civil Service pension arrangements. Before 1 April 2015, the only scheme was the Principal Civil Service Pension Scheme (PCSPS), which is divided into a few different sections – classic, premium, and classic plus provide benefits on a final salary basis, whilst nuvos provides benefits on a career average basis. From 1 April 2015 a new pension scheme for civil servants was introduced – the Civil Servants and Others Pension Scheme or alpha, which provides benefits on a career average basis. All newly appointed civil servants, and the majority of those already in service, joined the new scheme.

The PCSPS and alpha are unfunded statutory schemes. Employees and employers make contributions (employee contributions range between 4.6% and 8.05%, depending on salary). The balance of the cost of benefits in payment is met by monies voted by Parliament each year. Pensions in payment are increased annually in line with the Pensions Increase legislation. Instead of the defined benefit arrangements, employees may opt for a defined contribution pension with an employer contribution, the partnership pension account.

In alpha, pension builds up at a rate of 2.32% of pensionable earnings each year, and the total amount accrued is adjusted annually in line with a rate set by HM Treasury. Members may opt to give up (commute) pension for a lump sum up to the limits set by the Finance Act 2004.

All members who switched to alpha from the PCSPS had their PCSPS benefits ‘banked’, with those with earlier benefits in one of the final salary sections of the PCSPS having those benefits based on their final salary when they leave alpha.

The accrued pensions shown in this report are the pension the member is entitled to receive when they reach normal pension age, or immediately on ceasing to be an active member of the scheme if they are already at or over normal pension age. Normal pension age is 60 for members of classic, premium, and classic plus, 65 for members of nuvos, and the higher of 65 or State Pension Age for members of alpha. The pension figures in this report show pension earned in PCSPS or alpha – as appropriate. Where a member has benefits in both the PCSPS and alpha, the figures show the combined value of their benefits in the two schemes but note that the constituent parts of that pension may be payable from different ages.

The partnership pension account is an occupational defined contribution pension arrangement which is part of the Legal & General Master trust. The employer makes a basic contribution of between 8% and 14.75% (depending on the age of the member). The employee does not have to contribute but, where they do make contributions, the employer will match these up to a limit of 3% of pensionable salary (in addition to the employer’s basic contribution). Employers also contribute a further 0.5% of pensionable salary to cover the cost of centrally provided risk benefit cover (death in service and ill health retirement).

For 2024-25 Scottish Government employers’ contributions of £214 million (2023-24: £189 million) were payable to Civil Service and Others Pension Scheme (CSOPS) at 28.97% of pensionable pay. The Scheme Actuary reviews employer contributions every four years following a full scheme valuation. The contribution rates are set to meet the cost of the benefits accruing during 2024-25 to be paid when the member retires, and not the benefits paid during this period to existing pensioners.

For 2024-25 the value of Scottish Government employers’ contributions relating to the partnership pension account was £1,060k (2023-24: £984k). There were no contributions due to the partnership pension or prepaid at the balance sheet date.

Further details regarding the Civil Service pension arrangements are available on the Civil Service Pensions scheme website.

Cash Equivalent Transfer Values for Civil Service pensions

A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies.

The figures include the value of any pension benefit in another scheme or arrangement which the member has transferred to the Civil Service pension arrangements. They also include any additional pension benefit accrued to the member as a result of their buying additional pension benefits at their own cost.

CETVs are worked out in accordance with The Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are taken.

Real increase in CETV

This reflects the increase in CETV that is funded by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.

Court of Appeal judgement on public sector pension reforms

In 2015 the UK Government introduced reforms to public sector pensions, there were transitional arrangements which treated existing scheme members differently based on their age. Most civil servants were moved into a new (“alpha”) pension scheme. In December 2018, the Court of Appeal ruled that the transitional protection provided to some members of the judicial and fire fighters’ schemes as part of the reforms amounted to unlawful age discrimination. On 15 July 2019 the Chief Secretary to the Treasury made a written ministerial statement confirming that, as ‘transitional protection’ was offered to members of all the main public service pension schemes, the difference in treatment will need to be removed across all those schemes for members with relevant service.

Following consultation, the UK Government announced ‘2015 Remedy’ on 4 February 2021 according to which all members of civil service pensions who continued in service from 1 April 2022 onwards do so as members of alpha. Classic, classic plus, premium and nuvos were closed in relation to service after 31 March 2022.

The McCloud 2015 Remedy project formally commenced in April 2021 to address the discrimination deemed to have affected younger members when the reformed schemes were introduced in 2015. The decision announced in February 2021 was that a Deferred Choice Underpin would be introduced allowing members to choose which scheme they wished to be part of for the remedy period which spans from 1 April 2015 to 31 March 2022. Active and deferred members will have the opportunity to make that choice on retirement while retired members will have their award assessed separately for any detriment and they can also choose which scheme benefits they wish to take with their pension payment being retrospectively amended.

A public consultation ran from 6 March 2023 to 14 May 2023 for the detailed changes needed to carry out the McCloud remedy for affected Civil Service Pension Scheme members. These changes will be made in the proposed scheme regulations which will allow the scheme manager to put right any unlawful treatment that happened, whilst providing members with a choice about their pension benefits for the remedy period.

The 2015 Remedy (McCloud) legislation came into effect on 1 October 2023. Almost all of affected members will receive a Remediable Service Statement providing them with their Immediate Choice options compromising Legacy (classic, classic plus, premium and nuvos) and Reformed scheme (alpha). They will receive a key choice illustration document and additional supporting information to help them decide on the benefits they wish to receive for their service within the Remedy period. By choosing Legacy they would be joining alpha from 1 April 2022, whilst the Alternative Scheme Option will allow them to join alpha from 1 April 2015.

The aim is for all Remediable Service Statements to be issued to impacted members by 31 August 2025. Due to various complexities, not all Remedy members will receive a Remediable Service Statement or an Annual Benefit Statement. Any members who are thinking of retiring will still be able to submit a retirement quote request.

Further information regarding this discrimination, the latest update on the legislative process and scheme valuations can be found on the 2015 Remedy (McCloud) section of the Civil Service Pensions website.

People and Culture

Staff numbers and related costs (audited)

Staff numbers (Full time equivalent)	No. of Special Advisers	Permanent Staff	Other	2024-25 Total	Restated 2023-24 Total
Constitution, External Affairs and Culture	-	153	15	168	242
Deputy First Minister, Economy and Gaelic	-	1,142	91	1,233	1,371
Education and Skills	-	1,558	157	1,715	1,663
Finance and Local Government	15	2,796	282	3,093	3,316
Health and Social Care	-	163,125	5,002	168,127	166,718
Justice and Home Affairs	-	5,058	14	5,072	4,690
Net Zero and Energy	-	493	26	519	552
Rural Affairs, Land Reform and Islands	-	1,988	181	2,169	2,071
Social Justice	-	4,917	434	5,351	4,806
Transport	-	581	46	627	595
Crown Office and Procurator Fiscal Service	-	2,370	58	2,428	2,531
Scottish Government Corporate Board	-	13	0	13	13
Total	15	184,194	6,306	190,515	188,568

Staff costs	2024-25 £'m	2023-24 £'m
Wages and Salaries (Permanent staff)	9,458	8,763
Social security costs (Permanent staff)	1,033	960
Other pension costs (Permanent staff)	1,937	1,671
Sub-total	12,428	11,394
Non-Permanent Staff (including Agency, temporary, contract staff and inward secondments)	612	686
Total	13,040	12,080
Less recoveries in respect of outward secondments	(222)	(206)
Total net costs	12,818	11,874

The staff numbers for 2023-24 have been restated due to the new Portfolio structure introduced for 2024-25.

Number and cost of exit packages

Exit Packages Cost Band	No of compulsory redundancies agreed 2024-25	No of other departures agreed 2024-25	Cost of exit packages 2024-25 £000	No of departures agreed 2023-24	Cost of exit packages 2023-24 £000
<£10,000	14	36	257	56	256
£10,000 to £25,000	2	15	250	18	278
£25,000 to £50,000	-	14	515	13	463
£50,000 to £100,000	-	37	2,914	46	3,456
£100,000 to £150,000	-	6	725	2	234
£150,000 to £200,000	-	1	172	1	160
£200,000 to £250,000	-	-	-	-	-
£250,000+	-	-	-	-	-
Total number / cost of exit packages	16	109	4,833	136	4,847

There were 16 compulsory redundancies in 2024-25 (2023-24:10).

Diversity and Inclusion

Our ambition in Scottish Government is to be a diverse and inclusive organisation where everyone feels welcome and respected and which better reflects the communities we serve. Our Equality Outcomes and Diversity and Inclusion Employer Strategy set the future state and the positive change we want to see by 2027 where our actions are focussed on living up to our values and identifying and overcoming the barriers that can stop us from realising our full potential.

Diversity and Inclusion Employer Strategy

In April 2024 Scottish Government launched its Diversity and Inclusion Employer Strategy which puts equality and inclusion at the heart of our workplace. The Strategy is supported by a three-year iterative action plan. Action is grouped across four gamechanger themes promoting cross cutting activity to improve experience and outcomes across 14 aspects of the Scottish Government employee journey. These are called hot topics where two or more of our data sources indicate a poorer experience and outcomes at work for equality groups.

For our 2024-27 action plan the gamechangers and hot topics within each are:

• Getting Started in Scottish Government: application, sift, interview, onboarding;
• Promoting Positive Behaviours: line managers, discrimination, bullying and harassment;
• Achieving Equity: absences, leavers, performance, workplace adjustments; and workplace and hybrid; and
• Opportunities, Connections and Voice: learning and development, and progression.

Workforce data and employee insights

The strategy is data driven and supported by a broadening and deepening of data gathering. We applied equal weighting to more qualitative data we heard directly from employees about their personal experiences and quantitative data we gathered from workforce statistics.

Over the last year our Employee Experience Insights series has been delivered five times, continuing to gather lived experience on topics such as mental health, leavers and maternity and pregnancy, as well as broadening our insights and qualitative data to encompass line managers experience. This helps inform progress reporting as well as shape how actions are developed and delivered. New data and insights are regularly added to the 30 comprehensive diversity data packs created to support the strategy development and used by corporate teams to inform policy and practice.

Lived experience and participation

Diverse voices are represented on the Diversity and Inclusion Governance Group via diversity staff networks and the Council of Scottish Government Unions to represent employee collective interests as their legal voice. We also rotate members from external equality group organisations to provide critical challenge.

Senior leaders attend and are accountable for delivery of actions in their functional areas and role modelling the changes we want to see.

Impact assessment

Progress against strategy actions are reported every quarter to the Diversity and Inclusion Governance Group who monitor the pace and scale of delivery. Key performance indicators (KPIs) were embedded within the Action Plan from the outset. These are set out in a Diversity and Inclusion dashboard to monitor progress and impact towards our targets.

The Action Plan

Actions have been co-produced by action owners from across DG Corporate and cover all of the gamechanger themes.

Key highlights delivered this year include:

The SG Leadership Development Strategy continues to grow support for colleagues working at all grades to develop and sustain their leadership skills. The offer is made up of bite size, digital learning materials and interactive sessions with new learning resources such as leadership speaker series sharing diverse leadership journeys and experiences, transitional coaching as well as line manager’s essentials.

In 2024 the SG adopted the Civil Service Success Profiles recruitment framework. Designed to give the best possible chance of finding the right person for the job, to better reflect diversity of roles across the organisation, to allow candidates to demonstrate their skills across a broader set of criteria and to retain talent and experience.

The strategy also builds on the progress made through Recruitment and Retention Action Plans and continues its commitment to the inclusive initiatives set out in the Strategy which are making a positive impact in our workplace.

Mutual Mentoring Programme

Our Mutual Mentoring Programme is in its sixth year. There were 200 partnerships in 2024-25. This programme strengthens connections between senior leaders and staff from underrepresented backgrounds, fostering greater understanding and allyship. With 97% of 2023-24 programme participants who responded agreeing it helps them to consider their inclusive leadership practices. It ensures that diverse voices are directly influencing leadership perspectives, a key aspect of mainstreaming equality in workforce policies.

Employee Passport

An employee passport provides a framework for colleagues to have a discussion with their managers about individual circumstances, health conditions or commitments which impact their work and agree any informal adjustments to support them. It also creates a direct entry route to the HR Workplace Adjustments Service team when more formal or more complex reasonable adjustments are needed. The passport supports employees to perform at their best, recognising that everyone, at some point in their career, will face circumstances that impact them at work.

Inclusive learning and culture

In 2022 mandatory inclusive culture learning was introduced for all staff. Recognising the importance of investing in our capacity and capability to effect positive change, the Diversity and Inclusion Team deliver a diversity and inclusion curriculum. It offers digital and live learning opportunities which cover all equality groups and offers self-directed, online learning for specific roles ranging from recruitment panel members to staff diversity network leaders.

Staff Relations and Equality

The annual Civil Service People Survey looks at civil servants’ attitudes to, and experience of working in government departments. Every year, a Civil Service benchmark report is published along with a summary of department and agency scores. The Scottish Government staff response rate for 2024 was 70% (2023: 75%). Further information, including in regard to the consolidated agencies, can be found via the published results of the Scottish Government People Survey.

Staff turnover based on permanent staff average headcount in the Core Scottish Government for 2024-25 was 3.88% (2023-24: 4.38%).

In 2024-25, an average of 8.70 working days (2023-24: 8.16) were lost per staff year for the Core Scottish Government with the target being 7 days. The NHS Bodies in Scotland report their sickness absence rates based on contracted hours lost rather than days lost due to different shift patterns in the NHS Scotland workforce. The sickness absence rate across NHS Scotland for the year to 31 March 2025 was 6.5% of total contracted hours (2023-24: 6.3% of total contracted hours). Sickness absence rates for agencies and other consolidated bodies can be found in their individually published annual accounts.

During 2024-25 there were 55,785 male staff, 180,793 female staff and 180 who prefer not to say (2023-24: 57,049 male, 182,906 female and 96 prefer not to say staff). Within these totals were 7,394 male and 8,137 female, and 3 prefer not to say Senior Civil Servants or equivalent (2023-24: 6,545 male, 6,714 female, 0 prefer not to say Senior Civil Servants or equivalents). These staff numbers are measured as head count numbers and not full time equivalents as used in the staff numbers table. Further information on staff composition can be found in our Equality Outcomes and Mainstreaming Report.

Number of Senior Civil Servants and equivalent by pay band (audited):

Pay band	2024-25 headcount	Restated 2023-24 headcount
Deputy director or equivalent	1,778	2,363
Director or equivalent	1,942	2,307
Director General or equivalent	5,512	5,504
Permanent Secretary	1	1
Total	9,233	10,175

The Deputy director or equivalent headcount for 2023-24 has been restated to exclude Senior Management in NHS Scotland Health Boards falling below the applicable Senior Civil Service pay ranges.

The difference between total male and female Senior Civil Servants and the total number of Senior Civil Servants by pay band is due to the different pay ranges for Senior Management of the Core Scottish Government and NHS Scotland. These numbers include senior clinical staff in NHS.

Facility time used by recognised trade union representatives of the Scottish Government and its non-consolidated entities has been reported for the period between 1 April 2024 and 31 March 2025 as follows:

• Number of employees who were trade union officials during the relevant period: 142
• Full time equivalent employee number: 137
• Total cost of facility time: £893,095
• Total pay bill spent on paying employees who were relevant trade union officials for facility time: £1,030,610,028
• Facility time as a percentage of total pay bill*: 0.09%
• Time spent on paid Trade Union activities as a percentage of total paid facility time**: 35.90%

* Calculated as (total cost of facility time / total bill) x 100

** Calculated as (total hours spent on paid trade union activities by relevant trade union official during the relevant period / total paid facility time hours) x 100

Percentage of working hours spent on facility time by trade union representatives	Number of trade union representatives
0%	14
1 – 50%	121
51 – 99%	1
100%	6

The average number of disabled employees employed by the Scottish Government, its Executive Agencies, Health Bodies and the Crown Office and Procurator Fiscal Service over the year to 31 March 2025 was 6,208 (2023-24: 4,968).

Losses, Gifts and Special Payments

The following losses and special payments have been audited by the Scottish Government’s auditors. Losses and special payments are in the nature of transactions which Parliament cannot be supposed to have contemplated when approving the annual Budget Act and subsequent Amendment Orders. The Scottish Public Finance Manual requires a formal approval procedure to regularise such transactions and their notation in the annual accounts.

The losses, special payments and gifts have been restated due to the new Portfolio structure introduced for 2024-25.

Losses Statement

Portfolio	2024-25 No. of Cases	2024-25 £m	Restated 2023-2024 £m
Health and Social Care	4,050	16.96	21.93
Social Justice	8,628	9.67	2.90
Net Zero and Energy	7	0.13	0.21
Deputy First Minister, Economy and Gaelic	12	0.01	0.32
Education and Skills	10,322	34.89	12.32
Finance and Local Government (1)	435	1.27	1.24
Justice and Home Affairs	344	0.03	0.01
Transport	19	0.20	0.43
Rural Affairs, Land Reform and Islands	14	0.12	0.11
Constitution, External Affairs and Culture	1	0.001	-
Crown Office and Procurator Fiscal Service	1	0.001	0.02

(1) Prior year restatement of £0.22 million due to duplication of costs.

Details of cases over £0.30 million:

Portfolio	2024-25 No of Cases	Details	2024-25 £m
Health & Social Care: NHS National Services Scotland	1	National Distribution Centre stock loss	1.56
	1	Surplus PPE pandemic stock - donated to Kids Operating Room (KidsOR) for Africa charity	2.43
	1	Expired stock – Pandemic Personal Protection Equipment	5.47
	1	Expired stock – National Emergency planning medicines stockpile	0.53
	1	Expired stock – Flu vaccines	0.44
Health & Social Care: NHS Tayside	1	University of Dundee debt written off	2.90
Education and Skills	10,315	Write offs of student loans, none of which are individually over £0.3m	34.43

Special Payments

Portfolio	2024-25 No. of Cases	2024-25 £m	Restated 2023-24 £m
Health and Social Care	1,012	72.68	59.57
Social Justice	212	0.05	0.27
Net Zero and Energy	-	-	-
Deputy First Minister, Economy and Gaelic	-	-	-
Education and Skills	2	0.01	-
Finance and Local Government (1)	16	0.03	0.03
Justice and Home Affairs	232	3.40	7.99
Transport	-	-	-
Rural Affairs, Land Reform and Islands (2)	1	0.01	0.003
Constitution, External Affairs and Culture	-	-	-
Crown Office and Procurator Fiscal Service	20	0.69	0.34

(1) Special payments reported for Finance and Local Government (Deputy First Minister and Finance in 2023-24) have been rested from £0.02 million to £0.03 million.

(2) Special payments reported for Rural Affairs, Land Reform and Islands for 2023-24 have been restated from £0.01 million to £0.003 million.

Details of cases over £0.30 million:

Portfolio	2024-25 No of Cases	Details	2024-25 £m
Health & Social Care: NHS Boards	Clinical Compensation Payments:		-
	1	NHS Ayrshire & Arran	0.31
	1	NHS Dumfries and Galloway	0.30
	4	NHS Forth Valley	2.65
	11	NHS Grampian	10.75
	14	NHS Greater Glasgow and Clyde	6.15
	3	NHS Highland	2.91
	7	NHS Lanarkshire	4.03
	5	NHS Lothian	11.73
	3	NHS Tayside	1.22
Health & Social Care: NHS Boards	Non-Clinical Compensation Payments		-
	1	NHS Highland	0.39
	2	NHS Lothian	3.49
	1	Scottish Ambulance Service	0.52
Crown Office and Procurator Fiscal Service	1	Involvement with civil litigation brought against the Lord Advocate by individuals prosecuted in connection with the acquisition and administration of Rangers Football Club	0.53

Gifts

There were no gifts made by The Scottish Government in the year, therefore, no cases over £0.30 million in 2024-25 (2023-24: nil).

Joe Griffin

Principal Accountable Officer

08 October 2025