The "price tag" of establishing a National Care Service in Scotland could be far higher than government estimates, MSPs have been warned.
Audit Scotland told a Holyrood committee the costs set out in a recent financial memorandum from SNP ministers "significantly understate" the range of what could be needed.
MSPs heard evidence from the spending watchdog and other experts today to discuss the legislation required to create the new service.
Committee members have already raised concerns that it does not provide certainty or value for money. By 2026, annual costs for provisions of the Bill are estimated to be between £240 million and £527 million.
Audit Scotland’s Mark Taylor warned lessons should be learned from the creation of other new services like Social Security Scotland.
He told the committee: “I think those same lessons need to be applied in this case. Government needs to be able to be much clearer, at a much earlier stage about its financial plans.”
Responding to a question from the SNP’s Michelle Thomson, Taylor said the purpose of the National Care Service was to improve standards and consistency.
He said: “What’s not clear, and understandably so, is the price tag that will ultimately be associated with that.
“If that is to be levelling up – to use that politically loaded phrase – if it’s about areas where the quality and consistency of the service falls below a certain standard, does that have a price tag attached to it?”
He added: “What’s the price tag, what’s the cost associated with that service redesign?
“I understand at this stage of the process that it’s very difficult to get a sense of that, but that’s the hidden cost here.”
More clarity on this from the Government would be increasingly important, he said.
Written evidence from Audit Scotland said the financial memorandum is “likely to significantly understate” the range of costs from the Bill, partly due to using outdated assumptions about inflation in the coming years.
Emma Congreve, of the Fraser of Allander Institute, said her organisation had required additional information from the Government in order to produce their own analysis.
She said: “I think what comes across most is a large amount of money will need to be spent on the set-up of the National Care Service, which is what the Bill is about.
“And there’s a lot of uncertainty within that number, there’s a big range in terms of the recurring costs even once it’s been set up.”
COSLA - which represents Scottish councils - previously warned the care service plans could see local authorities lose 75,000 staff.
But the Scottish Government is pressing forward with plans to create a National Care Service, which would see industry bosses answer to Holyrood ministers instead of local authorities.
Health secretary Humza Yousaf has previously said the plans would drive up standards across the sector and allow staff to enter collective bargaining agreements which could boost wages.
To sign up to the Daily Record Politics newsletter, click here.
