Scotlands public services allocated an extra £525m

11 Sep 03
The Scottish Executive is to fund an increase in the number of teachers and police officers and take the first steps towards introducing free eye and dental checks as a result of a £525m spending deal announced on September 11.

12 September 2003

The Scottish Executive is to fund an increase in the number of teachers and police officers and take the first steps towards introducing free eye and dental checks as a result of a £525m spending deal announced on September 11.

Finance and Public Services Minister Andy Kerr said the money, coming from 'end-of-year flexibility' (EYF) and a 'windfall' from the Treasury, would finance new commitments in the partnership agreement made by Labour and the Liberal Democrats after the Scottish Parliament elections in May.

There has been speculation and criticism over the likely level of EYF, which opposition parties prefer to describe as underspending. However, Kerr was able to announce that the figure was down, at £394m for 2002/03, compared with £634m last year and £743m in 2000/01.

An extra £196m has been made available to the Executive because the Treasury has taken responsibility for the cost of council house transfers, the biggest of which is in Glasgow.

While EYF and the Treasury cash amount to £590m, the £525m is money being reallocated across departments to cover new commitments over the next three years. There will also be an increase in reserves. The total Scottish Executive budget amounts to £21bn.

Kerr said the EYF money was the result of a prudent and mature approach to financial management, amounting to 1.8% of the total budget. He criticised former practices which resulted in a rush to spend money at the end of a financial year.

Kerr argued that it was money departments did not expect to get. The funding will result in an extra £65m being allocated across portfolios for tackling antisocial behaviour, one of the priorities of First Minister Jack McConnell.

There will be an increase in the number of teachers, bringing the total to 53,000 by 2007. Increased funding is also being provided for more police officers, while cash has been allocated to pay for the introduction of 20mph speed limits around schools.

There is also provision for free eye and dental checks, a policy that the LibDems insisted on being included in the partnership agreement.

The Executive has also agreed to fund a new National Theatre for Scotland.

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