‘Leadership instability’ impacting improvements at heritage body, report warns

Ongoing “instability” in the leadership of Historic Environment Scotland (HES) poses a “risk” to improvements at the heritage body, a report has warned.

The latest audit of the heritage body – which is responsible for more than 300 historic buildings including Edinburgh Castle – found changes at board level “have created additional uncertainty in the organisation’s leadership arrangements”.

Sir Mark Jones stepped down as chairman in July after less than a year in post, with the Scottish Government having to step in an appoint an interim chair.

The 2025-26 audit report also told how a settlement agreement was signed off by Culture Secretary Mairi McAllan following the departure of HES’s chief executive.

Katerina Brown resigned from that role in September, after being signed off on sick leave for several months in 2025, leaving HES without its accountable officers.

The latest audit of HES said: “Historic Environment Scotland continues to experience change and instability in leadership and this presents a risk to organisational improvement.”

While it found action has been taken “to investigate and address previously reported financial management and governance weaknesses”, the report said “more work is needed” from HES to “fully implement and embed the required improvements”.

Auditor General for Scotland Stephen Boyle said HES had “taken action to investigate and begin to address the weaknesses” he reported last year when he found a “toxic workplace culture” at the organisation needed to be “fully investigated and addressed”.

Since then, HES has reviewed its procurement practices, the use of electronic purchasing cards and its policies for staff expenses.

It has also considered arrangements for gifts and hospitality and has acted to put in place a register of interests for the organisation’s executive leadership team.

However, Mr Boyle added: “Ongoing leadership instability, along with other challenges, has had an impact on improvements being put in place.”

He stressed it is “important” his recommendations – along with those made by an independent review of HES – are now “fully implemented at pace”.

The audit report said the organisation “must ensure that this period of leadership instability does not adversely affect the pace” at which improvements are delivered.

The report comes after a number of controversies at HES in recent years, with reports last year that a senior staff member was sanctioned for allegedly “twerking” in front of actor Martin Compston, while the organisation has also faced allegations of corruption and an internal racism row.

Ronnie Hinds, interim HES chairman, said: “The Auditor General recognises that progress has been made, but some changes still need to be fully implemented and shown to be operating consistently.”

He said the board has “accepted all the recommendations” from its independent organisational and cultural review, and had agreed a plan for implementing the changes.

“We are committed to delivering that plan at pace, with the resources required, clear management accountability and effective board oversight,” Mr Hinds said.

“If we do that, HES will be well placed to fulfil its role as a leading organisation in Scotland’s culture and heritage sector.”

But he added: “Public confidence must be earned through improvements that stand up to scrutiny.

“The test is whether those changes become part of how HES operates every day, and whether our staff and the public can see the difference.”

He was speaking as HES’s annual financial statement showed the organisation increased its income by 5% in 2025-26, rising from £144.6 million in 2024-25 to £151.6 million.

Over the course of the year, it welcomed 4.8 million visitors to its sites across Scotland and invested £41.3 million in the conservation and maintenance of the properties, collections and archives in its care.

Mr Hinds said 2025-26 had been a “year of important achievements alongside significant organisational challenges” for HES.