Audit Scotland has called for ScotWind spending transparency audit across every pound of the £755 million generated by the Scottish Government’s offshore wind seabed leasing programme, saying the public deserves a clear account of where the money has gone and where it is heading.
ScotWind is the name given to a leasing round in which Crown Estate Scotland offered developers the right to build offshore wind farms in Scottish waters. Rather than running an open auction, the scheme used capped prices for seabed option agreements, with the aim of securing decades of lease payments rather than maximising what developers paid up front.
How ScotWind spending transparency became an issue
According to The Engineer, a total of just under £700m was due to be paid by successful ScotWind applicants in option fees and passed to the Scottish Government for public spending. Crown Estate Scotland ultimately selected 17 offshore wind projects in the leasing round in January 2022, according to Offshore Wind. Those two facts together give a sense of the scale of what was on offer, and why the question of how the money is used matters.
Audit Scotland’s report found that no single business case was ever made for the leasing round as a whole. Ministers have already drawn down £96 million of ScotWind funds, but the watchdog said it is not clear how that money supported the transition to net zero. Nor, it added, is it clear how the Scottish Government intends to use the remaining £507 million over the course of the Parliament.
Auditor General Stephen Boyle set out the stakes plainly. “Crown Estate Scotland and the Scottish Government took a high risk and reward approach to the ScotWind leasing round,” he said. “Whether that decision represents value for money will be determined in the coming years.” He explained that if developers sign long-term leases before their option periods end, annual payments could benefit Scotland for the next 60 years. If developers give up their options, however, the capped pricing model would result in limited wider economic benefits and substantially reduced public revenues.
Boyle’s conclusion was direct: “What is now important is that the Scottish Government is much more transparent about their plans for how the ScotWind funds will be used across this parliamentary term and beyond.”
Opposition parties call for answers on ScotWind funds
Labour, the Liberal Democrats and the Conservatives each responded with criticism of how the Government has handled the money so far.
Daniel Johnson, Labour’s energy spokesman, described ScotWind as a “huge opportunity” for the economy and the energy industry, but said the SNP’s management had been “shambolic from day one.” He accused the Government of “frittering away” ScotWind cash and called on ministers to “set out how it will put this money to good use,” adding that transparency was needed to “unlock opportunities, jobs and growth across Scotland.”
Liam McArthur, the Lib Dem finance spokesman, said the Audit Scotland report was “rightly sceptical” of how the Government had acted. He called on ministers to come to Parliament and set out a long-term plan for using ScotWind revenues, ensuring taxpayers receive value for money.
Conservative energy spokesman Liam Kerr said the report should be a “wake-up call” for ministers and accused them of using ScotWind funds “to plug other gaps in Scotland’s finances,” which he described as facing a £5 billion black hole. He warned that without greater openness from First Minister John Swinney, the ScotWind Wealth Fund election pledge would “look like another headline-grabbing policy that will not be delivered.”
Energy minister Stephen Gethins pushed back against that framing, describing ScotWind as a “success story.” He said the watchdog’s report showed the scheme would bring in an estimated £80-110 million in annual income over the 60-year lifetime of the project, and pointed to £29.1 billion of commitments in the wider supply chain. He also noted that an additional £65 million has been collected from the Innovation and Targeted Oil and Gas (INTOG) renewables project, and that the funds have accrued interest of almost £100 million to date.
Gethins said the approach “vindicates the decision to focus on project delivery and attracting investment, rather than upfront revenues,” and confirmed the Government “remains committed to establishing a ScotWind Wealth Fund during this Parliament to ensure future generations benefit from Scotland’s renewables wealth.” He said clarity on how offshore wind revenues will be managed would continue to be provided through the annual budget-setting process.
