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Scottish Police Authority faces struggle to balance books as £35.5m deficit revealed

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The Scottish Police Authority (SPA) will not be able to balance its budget by 2020-21, according to an Audit Scotland report.

Financial plans put forward by the SPA board last year stated “significant transformation and delivery of efficiencies” would be needed to tackle the spending deficit.

The SPA has identified two options for bringing spending in line, either shedding some of its current workforce – which the report describes as being “not sustainable” – while keeping the budget the same, or receiving an increase in funding while maintaining staffing levels.

© Andrew Cowan/Scottish Parliament/PA
Susan Deacon resigned from her role earlier this month

Findings by Audit Scotland, published on Tuesday, show the watchdog’s spending has reached £35.5 million over budget for this financial year.

The SPA has been under fire in recent weeks from its former chairwoman, Susan Deacon, who left the post earlier this month – branding the organisation “fundamentally flawed”.

Medium and long-term financial plans are due to come before the SPA board in spring, with hopes of presenting a balanced budget by 2021-22.

Despite the spending issues, the report said there had been “improvements in key areas” of the authority – including in transparency and financial reporting – but added “there are still considerable challenges ahead”.

The interim chief executive of the SPA, Lynn Brown, said: “Audit Scotland has issued an unqualified opinion of the SPA’s accounts, which is again to be welcomed.

“The auditor highlights a number of areas where either improvement or further clarity is required, all of which are accepted and which we are actively addressing at our own hand and with partners.

“We are working hard on a plan to develop the capacity and capability of the authority and work to address this will make material progress before the end of the current financial year.

“In addition we are developing a corporate plan which will set out the authority’s work and priorities for the year ahead.”

David Crichton, vice-chairman of the SPA, said: “I warmly welcome the Auditor General’s call for a period of stability in the SPA.

“The members of the authority will continue to work closely with the Interim chief executive and her staff to focus on the important service change and financial challenges for policing that the Auditor General’s report brings into sharp focus today.”

A Scottish Government spokeswoman said: “We welcome the continuing improvements within the SPA, which have been highlighted by Audit Scotland.

“Improved accounting and effective budgetary processes are to be welcomed and Audit Scotland has also concluded that the authority operates in an open and transparent manner.

“The recent thematic review of the SPA by Her Majesty’s Inspector of Constabulary Scotland was also clear that there has been genuine progress at the authority over the past 18 to 24 months.

“Where issues have been identified, we will support the SPA  in addressing the findings of the report.”

Justice Committee convener Margaret Mitchell claimed members had been concerned by the SPA “for some time”.

She added: “Members will take stock in the new year and consider how, as parliamentarians, we can act most effectively to ensure that scrutiny of Police Scotland and the work carried out by the SPA is up to the standard the public has a right to expect.”