Finance Committee questions financial credibility of Circular Economy Bill

The Scottish Government’s Circular Economy Bill has been criticised for a lack of financial transparency and accurate costings.

The Finance and Public Administration Committee (FPAC) doubts that the Bill complies with the Parliament’s rules on setting out “best estimates” of costs likely to arise.

FPAC convener Kenneth Gibson said: “Scrutiny of this Bill reinforces our concern that affordability does not appear to be a key factor in Scottish Government decision-making.

“The minister, Lorna Slater, has committed to consult on the cost of secondary legislation, but that should not replace an assessment of affordability at the point of a Bill’s introduction.

“Our committee is not convinced that this Bill’s financial memorandum meets the requirements set out in Parliament’s Standing Orders to provide: ‘best estimates of the costs, savings, and changes to revenues to which the provisions of the Bill would give rise’.

“We’ve seen an increasing use of ‘framework’ bills that provide government with future enabling powers,“ Gibson continued, adding: “These do not, however, provide best estimates of all likely costs, and undermine parliamentary scrutiny.

“It also risks the Parliament passing legislation which may in the end – once outcomes are fully understood – lead to significant cost increases.“

He argued that the increased use of framework bills with no clear implementation costs, poses a long-term risk to the Scottish Budget, both now and for successive governments.