04 June 2004
An influential Scottish Parliament committee has rejected local authority claims that cash generated by efficiency savings should be reinvested by individual councils.
In a report on the budget process for 2005/06, the cross-party local government committee insisted: 'Given that local government is allocated around one-third of the total Scottish Executive budget, the committee does not accept that as a credible and sustainable position.'
The Convention of Scottish Local Authorities' corporate adviser, Brenda Campbell, said councils had already achieved greater efficiency as a result of measures such as Best Value.
She added: 'We would want to see any extra savings reinvested in local government. Councils have been through a period of instability and now need a more stable period.'
But the Parliament's report argues: 'It would not be inherently unreasonable to seek efficiency gains in the local government settlement to enhance investment in national priorities elsewhere – for example, higher education.'
The committee urges that realistic targets for efficiency improvement in service delivery and for departmental costs should be developed to cover the Spending Review period of 2005/06 to 2007/08.
The report calls for accurate methods of assessment of where services have improved. It proposes new rules on costs and pay and price movements in local government. A framework for monitoring pay and cost trends should be agreed with Cosla, it says.
The report is critical of the way the Scottish Executive presented its plans for capital expenditure in its annual spending review, describing them as 'confusing and potentially misleading'.
PFjun2004
