Ministers are being urged to use a forthcoming spending review to set out “bold” measures to help create “a wellbeing economy”.
Members of Holyrood’s Finance Committee made the plea as they said the Scottish Government faced “difficult decisions” in rebuilding from the pandemic.
Committee convener Kenneth Gibson warned that “public finances will be under significant pressure” over the next few years, with “real economic and societal benefits” in prioritising spending on preventative measures – whether on measures which protect the environment or help keep people healthy.
Finance Secretary Kate Forbes is to set out her spending plans for 2022-23 when she reveals the draft Scottish budget next month – with the medium-term financial strategy also due to be unveiled at the same time.
In a report published ahead of that, the committee stated that both the budget and the financial strategy should set out “how it intends to manage the economy to meet its net zero commitments by 2045”.
MSPs also demanded more information on what steps could be taken to tackle issues such as poverty and inequality.
The statement added that “the resource spending review provides an opportunity to introduce bold preventative measures to protect funds and create a wellbeing economy for the long term”.
Speaking as the report was published, Gibson commented: “Public finances will be under significant pressure in the next few years and the Scottish Government faces difficult decisions on how it prioritises both revenue raising and expenditure.”
With Scotland having a declining working age population, he said there would need to be “focused and sustained policy prioritisation over a number of years” to increase productivity in order to grow the economy.
Gibson added: “We also believe greater economic and societal benefits can be derived from prioritising preventative spending measures – whether to protect the environment or the nation’s health.
“The resource spending review provides an opportunity to introduce bold measures to optimise resources and create a wellbeing economy.”
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