Strong leadership and clearer accountability needed for Scotland’s public bodies in the face of budget cuts

An Audit Scotland report published today, The role of boards, examines the governance arrangements of NHS bodies, colleges, executive agencies, non-ministerial departments, non-departmental public bodies and Scottish Water. The report covers 106 boards which oversee £17 billion of spending a year, about half of the Scottish public budget.

Public bodies and their boards have evolved over time. There is great variety in the size and make-up of boards and the roles that they have. Accountability can be complex, with chief executives and boards reporting in different ways to the Scottish Government, ministers and the Scottish Parliament. This risks causing confusion about who leads an organisation and is responsible for its decisions.

Auditor General for Scotland Robert Black said:

“The Scottish Government has made progress with its public sector reform agenda but the public sector landscape remains complex with a variety of accountability arrangements. The need for strong leadership and clearer accountability in the public sector is crucial, now more than ever with budgets reducing. Over the coming years boards will have to make tough choices about public services. There will need to be clear and well understood relationships between public bodies and the Scottish Government to agree priorities and manage budget reductions.”

Mr Black emphasised the importance of strong leadership in public bodies:

“Board members must scrutinise rigorously their organisations’ risks, financial management and performance. Some boards do this well but others need to exercise this central role more effectively. The success of boards depends on having a mix of people with the right skills and expertise, but the evidence is that the number of people applying for posts as non-executives on boards is falling. The Scottish Government should review the reasons for the falling interest in public appointments and make sure that people with the right skills and experience are encouraged to come forward.”

Between 2004/05 and 2008/09, the number of people applying to become non-executives board members in the public sector more than halved. By 2008/09, Scottish ministers had no choice of candidate for more than a fifth of appointments. Audit Scotland says it is unclear why application numbers have dropped, although reasons may include the lengthy appointment process, public perceptions of public bodies, the pay and the risk of damage to personal reputations.