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Scottish Government IT system costs increase by 111%

Scottish Government IT system costs increase by 111%

The cost of a new government IT system has soared by 111% and carries a “significant risk”, MSPs have heard.

Members of Holyrood’s Public Audit Committee raised concerns about the computer system farmers and crofters must now use to apply for European Union (EU) subsidy payments.

The committee heard that spending on the IT company delivering the project has risen from an estimated £28.8 million to £60.4 million.

The IT system is part of the Scottish Government’s Futures programme, a five-year project to oversee the implementation of the new EU Common Agricultural Policy (CAP) in Scotland.

MSPs were told the estimated cost of the Futures programme had risen from f£102.5 million to £178 million, 74% more than the original business case.

In a letter updating the committee on the project, Caroline Gardner, the auditor general for Scotland, said: “The programme will continue to carry significant risk up to full implementation and beyond.”

Liberal Democrat MSP Tavish Scott said: “By any standards, those are vast increases and we have been here before on some IT projects.

“I would hope that we would be wanting to ask a lot of questions of the accountable officer for this project and to the EU and to stakeholders.

“This is affecting people in their day-to-day lives running business right across Scotland, in every part of Scotland, and it’s not going well.”

Conservative MSP Mary Scanlon highlighted that 435 single application forms had been fully submitted compared to 1,914 at this point last year.

She raised concerns that problems with the system would lead to delays in farmers receiving their payments as expected in December.

Ms Scanlon said: “It seems to be that we are already significantly behind.

“I’m very concerned about the impact on farm payments and I’m afraid the update hasn’t brought the assurance that I had hoped for.”

The committee agreed to take further evidence from the Scottish Government and a representative of the EU on the issue.