MSP claims Executive could save £400m more by following Gershon

12 May 05
The Scottish Executive could have made extra savings of £400m if it had followed the Gershon formula for England and Wales, a leading member of an influential Holyrood committee claimed this week.

13 May 2005

The Scottish Executive could have made extra savings of £400m if it had followed the Gershon formula for England and Wales, a leading member of an influential Holyrood committee claimed this week.

Wendy Alexander, Labour MSP for Paisley North and former enterprise minister, challenged Finance Minister Tom McCabe on the Executive's apparently different approach to efficiency savings.

McCabe was giving evidence to the finance committee on his efficient government initiative. The committee was also told that Audit Scotland is to oversee the system.

Alexander said the efficiency plans confirmed that there should be planned savings of £1.5bn, half after the next Parliament elections in 2007. 'However, if we were to embark on making savings as ambitious as those in England and Wales, the figure would be £1.9bn. If all the savings are being redeployed in frontline services, why is it right in principle in Scotland to leave £400m in the back office?'

McCabe said it had already been recognised that the frontline and back office terminology used had been unfortunate. He added: 'There are support services that are perhaps less evident to people who receive services, but they are nonetheless valued services with valued members of staff.'

McCabe said comparing planned savings in England with Scotland was looking at only one side of the balance. He stressed that it was easier to make savings in big Whitehall departments. 'If you take the job figures that were mentioned down south, 86% of those are in wholly reserved departments that we don't have in Scotland.'

PFmay2005

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