18 April 2008
Scottish Finance Secretary John Swinney has put forward plans for efficiency savings of £600m over the next financial year.
The savings are £66m more than the original £534m target and part of three-year plans aimed at producing economies totalling £1.6bn by 2010/11.
Swinney said: 'By cutting waste, simplifying government and ensuring practices across the public sector are as efficient as they can be, we will deliver £600m in savings over the next year.'
The Scottish government intends to deliver 2% efficiency savings in the three years to 2010/11. In the current year, local government will be expected to deliver savings of £174m, and NHS boards will need to find £154m.
According to the government plans, £20m is due to be found from more effective arrangements for the provision of drugs and other prescribed items used in primary care. These savings will be reinvested to fund the abolition of prescription charges. A further £1m will be delivered through measures to counter NHS fraud.
Swinney said there was no doubt that the plans for 2008/09 were a demanding programme that would require everyone in the public sector to play their part.
But Unison said it was worried that 'frontline services would be cut and the number of staff reduced'. Labour claimed many would fear that the savings would 'translate to cuts in local services.'
The Liberal Democrats accused the Scottish government of failing to back up its efficiency plans with hard details. 'It's an “over-to-you-and-nothing-to-do-with-me” plan,' the LibDems claimed.
PFapr2008
