Meeting of the Revenue Scotland Board
27 August 2025
10:00 - 14:00, Victoria Quay, Edinburgh
| Status | Name |
|---|---|
| Present |
Simon Cunningham, Chair Aidan O’Carroll, (joined via MS Teams) Jean Lindsay Robert MacIntosh Idong Usoro Gillian Wheeler Alison Macdonald |
| In attendance |
Elaine Lorimer, Chief Executive Shamyla Afzal, Governance and Compliance Manager (via MS Teams) Neil Ferguson, Head of Corporate Functions Mairi Gibson, Head of Legal Services Ryan McColgan, Scottish Landfill Tax Team Leader (Item 6) Brendan Macrae, Head of Tax Compliance (Item 6) Chris Nicholson, Deputy Head of Legal (Observer) Callum MacInnes, Head of Corporate Operations Nick Manton, Head of Data and Digital (Item 7 & 8 and item 11 via MS Teams) Craig Morton, Head of IT (Item 11 via MS Teams) Lorraine Clayton, PMO Analyst (Secretariat) Michael Paterson, Head of Tax Stuart Vivers, IT Operations Manager Paul Chapman, SG Head of Public Sector Cyber Resilience (Item 11) Stephen Ramsay, Audit and Risk Committee Co-opted Member (Item 11 via MS Teams) |
1. Meeting opening
1.1 Simon Cunningham opened the meeting by welcoming all attendees and noting that, as Aidan was joining via Teams, he would be chairing the session. He introduced new Board members, Gillian Wheeler and Alison Macdonald, and extended a warm welcome to Chris Nicholson and Lee Vernon, who were attending as observers. The Chair also acknowledged that this would be Elaine Lorimer’s final quarterly Board meeting before stepping down as Chief Executive.
Apologies
1.2 No apologies were received.
New Declarations of Interest
1.3 No new declarations of interest were recorded. It was noted that the new Board members had provided their declarations of interest as part of their induction process and that these would be published on the RS website in due course.
Draft minutes
1.4 The Board approved the minutes of the Board meeting held on 14 May 2025 as drafted.
Action and decision log
1.5 The Head of Corporate Operations introduced the action log, noting open actions and providing updates as needed.
1.6 It was agreed that actions A76/23, A22/24, A56/25, A57/25, A58/25, A60/25, A61/25, A63/25, A64/25, A65/25, A67/25, A68/25, A69/25 and A01/25 would be closed. All other actions were to remain open.
1.7 There was a discussion regarding Action A01/25. The Board agreed to discuss this further at their next Board call.
2. Chair's update
2.1 The Chair noted that the recruitment and induction process for the new Board members had progressed well. Feedback on their induction experience would be collected once the inductions were complete.
2.2 The Chair highlighted the Scottish Government’s Tax Conference, taking place on 10 September. He asked Board members to make their interest known to the Governance Team should they wish to attend.
2.3 The Board was advised that, following a discussion with both new Board members, it was proposed that Alison MacDonald was appointed to the Audit and Risk Committee and Gillian Wheeler was appointed to the Staffing and Equalities Committee. The Board agreed the proposal.
3. Staffing and Equalities Committee (SEC) update
3.1 The SEC Chair provided an update following the SEC meeting held on 31 July 2025. She confirmed that the Committee had seen the first draft of the strategic workforce plan and the Committee had asked for this to be reviewed to cover the period of the Corporate Plan and for it to be bought back to the Committee.
3.2 The Committee had reviewed the annual succession plan and asked for this to be widened to see what further skills might be needed within the organisation. The Committee also received an update on the pay offer and was informed that PCS and Prospect had rejected the proposal. Both unions were seeking talks with Scottish Government on their decision and that PCS would be carrying out an informal ballot before coming to a decision.
3.3 The SEC Chair confirmed that overall it had been a very positive meeting and thanked the team for all of their hard work.
3.4 The SEC Chair also bought to the Board’s attention the continuing concern in accessing diversity data held within Oracle. SG have only been able to provide annual reporting and the action remains open. Work is planned to provide SG Core departments with access to recruitment reports and RS and others are pushing for these to be extended to delivery bodies. This will continue to be monitored by SEC. The Board expressed its concerns and agreed that this should be escalated. The Board agreed for the Chief Executive to write to the Director of Corporate Transformation in the first instance.
3.5 The SEC Chair presented the SEC Annual Report and the review of SEC effectiveness that had been carried out. She noted that it had been a good year for the Committee and welcomed the excellent set of staff survey results. The Board Chair commended the work of the SEC over the last year and noted that the Board was very satisfied with their work. The Board approved the Staff and Equalities Committee Annual Report for 2024-25 as drafted.
3.6 The Board were advised that the Terms of Reference for SEC had been reviewed as part of the effectiveness review process. Changes had been proposed to include the appointment of co-opted members and ensure continued alignment with the Terms of Reference for the Audit and Risk Committee, which had also been reviewed as part of their own effectiveness review. Following discussion, the Board agreed the following changes:
- That the number of co-optees should be limited and not exceed the number of Board members on the Committee.
- That it should be clarified that it is the Board and not the committee that appoints the co-opted members.
- That the ToRs should state that the Committee Chair has the discretion to request that co-opted members and/or other meeting attendees step out of discussions where the Committee wish to discuss a matter in private.
3.7 The Committee also discussed the Health and Safety Annual Report for 2024-25 and noted the excellent progress made. There was a discussion around mandatory training requirements. The SEC Chair highlighted that the Committee are provided with updates on health and safety matters within the SEC dashboard presented at each SEC meeting and that any issues identified by the Committee between Board meetings would be escalated to the Board if required.
4. Audit and Risk Committee (ARC) update
4.1 The Chair of the ARC provided an update to Board members on the two meetings since the last Board meeting (11 June and 6 August) and also on the progress of Revenue Scotland’s 2024-25 Annual Report and Accounts process.
4.2 He informed the Board that Julie Hesketh-Laird attended her first ARC committee meeting as a co-opted member and that the Committee had thanked Martin McEwen for his leadership and contribution to the ARC at his final meeting. The Committee had also thanked Elaine McAtamney, the out-going Head of Finance, for the support she had provided to ARC.
4.3 The ARC Chair updated the Board on the ARC Terms of Reference, which had been reviewed as part of the ARC effectiveness review process. The Board approved the ToRs subject to:
- The changes to the SEC ToRs being mirrored within the ARC ToRs
- Consistent use of “Deputy Chair” throughout the document.
- Amendment to paragraph 9.3 to state that either the Committee Chair or Deputy Chair can approve the tabling of late papers.
4.4 The Board was advised that the first annual Senior Information Risk Owner (SIRO) report for 2024-25 had been received from the Head of Corporate Functions (as SIRO) and that the Committee concluded that the report provided sufficient evidence that information risks are being managed effectively by the organisation.
4.5 The Committee also noted the Internal Audit opinion for the year as ‘Substantial Assurance’. This was the fifth consecutive time this rating had been awarded, which was an outstanding achievement.
4.6 The Committee noted the strong commitment demonstrated by the team in relation to resolving the Finance issues identified within the Audit Scotland interim audit management letter. They had highlighted the sustained pressure on individuals’ workloads as a result of this and the need for that to be considered. An action was noted for the Head of People Services to ensure SEC considered this as part of discussions on workload arrangements.
4.7 The Accountable Officer’s Assurance Report had also been presented as well as the year end assurance submissions from various internal and external sources. The Committee was content with the report and the disclosures the Accountable Officer was planning to make within the Annual Report and Accounts.
4.8 The Committee had received a progress report on the Annual Report and Accounts process for 2024-25. Changes to the performance and governance reports and the presentation in the Resource and Devolved Taxes accounts were agreed. The draft report will be shared with Board members with responses required by the end of the week.
4.9 The Chair also noted the discussion at the ARC around the disclosure of Related Party Transactions in the Devolved Taxes Accounts and ISA 24.
5. Chief Executive's report
5.1 The Chief Executive updated the Board on key items from her report. The Board was informed that the quarterly meeting with Public Finance Minister Ivan McKee MSP had taken place in June and that the next meeting will take place in September.
5.2 The Board was made aware that the Public Service Reform Strategy was published on 19 June. The Scottish Delivery Bodies Group has been actively engaging with officials and Mr Mckee on this and ensuring that Public Bodies are being kept up to date with developments. It was agreed that the link to the strategy would be shared with Board members.
5.3 It was highlighted that Revenue Scotland had received a commission from Scottish Government asking to set out the 2026-27 to 2029-30 FTE and staff cost requirements, alongside requests for efficient savings. The commission was the first stage in the spending review process and supported Public Service Reform work.
5.4 An update was provided regarding the staff summer conference that will take place at the beginning of September. The theme is ‘past, present and future’ and will include a celebration of Revenue Scotland’s 10-year Anniversary.
5.5 The Chief Executive confirmed that the recruitment for a new Chief Executive had successfully concluded with an appointment being made. Planning is underway in collaboration with Scottish Government to put a comprehensive induction plan in place.
5.6 The Board was informed that work was underway on the commencement of elements of Part 2 of the Scottish Aggregates Tax Act. Work was yet to commence on the consultation and Scottish Statutory Instruments (SSIs) needed to allow for automation of more of Revenue Scotland’s processes.
5.7 The Chief Executive also provided a litigation update. The Board requested that the Head of Legal Services provide a debrief on areas of focus at a future Board call.
5.8 An update was given to the Board on the Health and Safety matters, including recent inspections undertaken at St Vincent’s Plaza in Glasgow and the office space in Victoria Quay. No issues or hazards were identified.
5.9 The Board discussed the criteria for assessing new taxes, which had been updated following the Board Strategy Day. Members questioned whether these were too passive in some instances than what was discussed at the Board Strategy day.
5.10 The Chief Executive provided an update on complaints, FOI requests and MSP Correspondence received, highlighting the increased number of requests and that these had all been actioned within the statutory timeframes. The Board discussed the rise in the number of requests and the time taken to respond to them.
6. SLfT industry update
6.1 The Head of Tax Professionalism and Compliance and the Head of Environmental Taxes provided an update on the landfill sector in Scotland and Revenue Scotland’s role as the waste sector changes.
6.2 The Board was advised of the impacts of the bio-degradable municipal waste (BMW) ban, with Landfill operators in Scotland no longer able to accept BMW from 1 January 2026. This is expected to significantly reduce tonnages of Standard Rate (S/R) waste sent to landfill sites for disposal and this trend was already being observed.
6.3 The Board was advised that there will still be requirements for landfill of remaining waste and there has been an expectation that landfill sites will remain open, however, reducing tonnages and shrinking revenues would likely impact the number and location of sites in operation.
6.4 The Board was assured that Revenue Scotland continue to have close working relationships with landfill site operators, Scottish Government Environmental policy and Scottish Environment Protection Agency (SEPA) colleagues. The Revenue Scotland-led Landfill Futures forum has highlighted shared risks between RS, SEPA and Scottish Government and facilitated a collaborative approach in seeking information and solutions.
6.5 Board members discussed tax, regulatory and financial risks. It was requested that ARC undertake a deep dive into SLfT risks over the next 12 months and that SLT consider opportunities to share sector knowledge with wider stakeholders. The Chair thanked the team for the informative and insightful paper.
7. Developing a strategic approach to SETS3 planning
7.1 The Head of Corporate Functions presented a paper setting out options for developing a Strategic Approach to SETS3 planning. This covers contracted services beyond the current SETS contract’s ten-year horizon.
7.2 The Board highlighted the need for technical advice to be sourced to support the Programme Board and the need to focus on the delivery of a tax case management system.
7.3 The Board discussed governance arrangements and agreed on the need for clear Terms of Reference for the Programme Board, its escalation routes, and the assurance it will provide to SLT, ARC, and the main Board. Consideration should also be given to how best the RS Board can support the programme going forward.
7.4 Board members also explored the potential benefits of engaging with the HMRC DDaT Team to learn from their practices and gain insights from their experience. The Chief Executive offered to facilitate an introduction.
7.5 Under the Scheme of Internal Delegation, the Board agreed to delegate to the Chief Executive approval of SETS2 extension beyond the next break point.
7.6 The Board thanked the Head of Corporate Functions and Head of Data and Digital for the insightful paper.
8. DDaT programme - progress report
8.1 The Head of Corporate Functions presented the DDaT Programme Progress Report, highlighting the key deliverables in the programme.
8.2 The Board reviewed the seven missions outlined in the report and emphasised the importance of reaching agreement and formally documenting them as soon as possible. Additionally, the Board requested consideration of budget and resource implications, including how varying staffing levels could impact delivery specifically, what could be achieved with increased capacity versus reduced capacity.
8.3 Board members thanked the Head of Corporate Functions and Head of Data and Digital for the progress report. They were pleased with the level of detail provided and that the update provided assurance to the Board that key issues were being addressed. The Board requested regular updates on DDaT by means of a Highlight Report.
9. New devolved taxes reporting dashboard
9.1 The Head of Tax introduced the reporting dashboard noting the red risks. He highlighted these are as a result of dependencies out with Revenue Scotland’s control. A risk review will be conducted in the next month and it is likely the level of risks will be reduced. He also noted that despite delays, the legislative timetable is progressing as planned and will be shared with Board members once confirmed by SG policy colleagues.
9.2 The Board had a brief discussion on the visibility of risks recognised for the two new devolved taxes and requested these were reflected within the dashboard.
9.3 The Chair welcomed the update and was pleased that Revenue Scotland was on target with what is within its control.
10. Q1 performance report
10.1 The Head of Corporate Functions presented key points of the Q1 Performance Report to the Board. All success measures were green for quarter one. He noted a hold on discretionary spend to help move the budget towards a path to balance.
10.2 Board Members discussed risk 11 and the proposed reduction in the risk score. It was noted this had not yet been agreed by ARC.
11. Presentation delivered by Paul Chapman
11.1 The Head of Public Sector Cyber Resilience, Paul Chapman from the National Cyber Resilience delivered a presentation on Cyber Resilience.
11.2 He added that the Strategic Framework for a Cyber Resilient Scotland first published in 2021 will be refreshed in Autumn 2025 and will include refreshed action plans.
11.3 The Board discussed the cyber threat landscape and the need to ensure plans were in place to minimise risks and respond. The Business Continuity Planning exercise conducted by Revenue Scotland was noted as good practice. There was a discussion on Scottish Public Sector procurement and the requirement for screening on cyber essentials.
11.4 The Chair thanked Paul Chapman for the insightful presentation.
12. AOB
12.1 No items of AoB were raised.
12.2 The Chair confirmed that the next Board meeting would be held on 26 November 2025. The Board moved to a private session at 13.50
End of Meeting
27 August 2025