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Scottish government writes down £140m in loans and guarantees | |
(about 2 hours later) | |
The Scottish government has had to write down nearly £140m in loans and guarantees, most of them to private companies, that have become worthless. | |
The figures have been revealed in official accounts for the past year. | The figures have been revealed in official accounts for the past year. |
They include a £45m loan to the Ferguson shipyard on the Clyde and a £21m guarantee repayment fee from Liberty Steel. | |
The Scottish government said its "support for private companies has protected hundreds of jobs". | |
The auditor general's 2018/19 report on the government's consolidated accounts show that the overall budget of £36,915m was underspent by £778m. | The auditor general's 2018/19 report on the government's consolidated accounts show that the overall budget of £36,915m was underspent by £778m. |
As well as the write-downs, the government's £37m loan to the BiFab fabrication company, which has yards in Fife and Lewis, is now valued at £2m. | |
'Backward step' | 'Backward step' |
And loans of £40m to keep Prestwick Airport in operation are now worth £7m. | And loans of £40m to keep Prestwick Airport in operation are now worth £7m. |
Meanwhile, the auditor general Caroline Gardner has criticised the detail of budgeting at Holyrood. | Meanwhile, the auditor general Caroline Gardner has criticised the detail of budgeting at Holyrood. |
Ms Gardner accused ministers of taking "a step backward" with the amount they are making available to the watchdog. | Ms Gardner accused ministers of taking "a step backward" with the amount they are making available to the watchdog. |
She said there was a lack of detail in the budget plans set out by Scottish ministers, at a time of heightened uncertainty for public services. | She said there was a lack of detail in the budget plans set out by Scottish ministers, at a time of heightened uncertainty for public services. |
The auditor general also refused to sign off accounts for the new carer's allowance. | The auditor general also refused to sign off accounts for the new carer's allowance. |
She said it was not clear how that money is being spent, partly through a Whitehall department. | She said it was not clear how that money is being spent, partly through a Whitehall department. |
"Parliament needs better information to be able to better scrutinise ministers' financial decision-making and to ensure value for money is achieved from a limited budget pot," she said. | "Parliament needs better information to be able to better scrutinise ministers' financial decision-making and to ensure value for money is achieved from a limited budget pot," she said. |
"There is a lot more work to be done to manage Social Security Scotland's current reliance on the DWP. | "There is a lot more work to be done to manage Social Security Scotland's current reliance on the DWP. |
"More complex and costly benefits are due to be delivered by the agency over the next few years, which increases the potential impact of error and fraud. | "More complex and costly benefits are due to be delivered by the agency over the next few years, which increases the potential impact of error and fraud. |
"The agency needs to think about what arrangements will be needed to manage that scenario." | "The agency needs to think about what arrangements will be needed to manage that scenario." |
Scotland's finance secretary, Derek Mackay, said the Audit Scotland report had given the government's accounts "a clean bill of health" for the 14th consecutive year. | Scotland's finance secretary, Derek Mackay, said the Audit Scotland report had given the government's accounts "a clean bill of health" for the 14th consecutive year. |
Mr Mackay said: "We continue to operate in a challenging financial climate as Brexit, and the increasing risk of a no deal scenario, remains the biggest threat to our economy and public finances as we take steps to try and mitigate the impact of such an outcome. | Mr Mackay said: "We continue to operate in a challenging financial climate as Brexit, and the increasing risk of a no deal scenario, remains the biggest threat to our economy and public finances as we take steps to try and mitigate the impact of such an outcome. |
"Under the current devolution settlement, the Scottish government is not permitted to overspend its budget. | "Under the current devolution settlement, the Scottish government is not permitted to overspend its budget. |
"As a consequence, we have consistently adopted a position of controlling expenditure to ensure we live within the budget caps that apply, while maximising spending on public services. | "As a consequence, we have consistently adopted a position of controlling expenditure to ensure we live within the budget caps that apply, while maximising spending on public services. |
"Any money which is underspent in a financial year is carried forward in full into the next year and is invested in public services." | "Any money which is underspent in a financial year is carried forward in full into the next year and is invested in public services." |
'Out of his depth' | 'Out of his depth' |
The Scottish Conservatives described the loan write-offs as "a staggering waste of public money". | The Scottish Conservatives described the loan write-offs as "a staggering waste of public money". |
The party's finance spokesman Murdo Fraser said: "The Scottish government complains endlessly that they don't have enough money to spend and blames the UK government at every turn. | The party's finance spokesman Murdo Fraser said: "The Scottish government complains endlessly that they don't have enough money to spend and blames the UK government at every turn. |
"Now we learn that £135m has just had to be written off due to failed investments. | "Now we learn that £135m has just had to be written off due to failed investments. |
"This is a staggering waste of public money which is entirely in keeping with Derek Mackay's total failure to manage Scotland's public finances. | "This is a staggering waste of public money which is entirely in keeping with Derek Mackay's total failure to manage Scotland's public finances. |
"He is, quite simply, out of his depth." | "He is, quite simply, out of his depth." |
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