The Institute of Chartered Accountants of Scotland (ICAS) has emphasised the need for a more extensive long-term financial strategy in Scotland.

Despite acknowledging the positive steps taken with the new 2025 Medium Term Financial Strategy and Fiscal Sustainability Delivery Plan, ICAS stresses that further clarity and a sustainable framework are crucial for addressing the financial and service delivery challenges facing the nation.

ICAS chief financial officer Chris Barber CA said: “Scotland’s new Medium Term Financial Strategy and the Fiscal Sustainability Delivery Plan, with its multi-year outlook, is a positive step forward, but we believe that more can be done. A much longer-term approach to budgeting is needed to address increasing financial and service delivery challenges. We need further clarity on the longer-term financial direction, priorities, the impact of policy decisions and trade-offs.”

“We must move to a more sustainable and transparent framework for Scotland’s finances. ICAS has called for a coherent financial roadmap for our public services for many years. Without this, how we run, manage and deliver our vital public services is hampered.”

The gap between revenue from taxation and the public spending needed to address rising demand, policy choices, and inflation is a significant concern.

The necessity for strategic fiscal planning and long-term financial management is underscored by increasing pay bills and costs. Such planning allows governments to adapt to economic shocks and changes more effectively.

ICAS advocates for a robust approach to economic growth to ensure the long-term financial health of Scotland.

Barber added: “Scotland needs a stronger and more sustained focus on driving economic growth to expand available funding and secure long-term financial sustainability. We want to see how the strategy, budget, and fiscal framework will align to achieve the overarching goals of a healthy economy and high-quality public services.”.

The call for transparency extends to how public sector investments and economic growth can yield positive outcomes, and which tough decisions are still pending.

A detailed roadmap that integrates various elements would enhance alignment and support transparency, accountability, and scrutiny.

Furthermore, ICAS proposes a rolling five-year tax strategy to provide clear objectives and timelines for devolved tax policy, showing how adjustments can stimulate economic growth, investment, and job creation.

Earlier in June 2025, ICAS also commented on the UK’s HMRC consultation, which aims to enhance powers over tax advisers.