Independent Scottish spending review delivers cuts verdict

29 Jul 10
An independent review of public spending in Scotland, commissioned by the Scottish government, was published today.
By Lucy Phillips

29 July 2010

An independent review of public spending in Scotland, commissioned by the Scottish government, was published today.

Among its recommendations are a reduction in the public sector workforce of up to 10% and charging for previously free services. The Independent Budget Review Panel was set up in February by Finance Secretary John Swinney. It is chaired by Crawford Beveridge, a former chief executive of Scottish Enterprise.   

The review covers the next four-year period, setting out options for providing public services ‘in the most challenging public spending environment since the Second World War’. It is likely to prove influential in the debate in the run-up to the UK-wide Spending Review in the autumn.

Other proposals include a two-year pay freeze for state employees, lifting the current council tax freeze and abolishing a number of public bodies. The panel warn against ring-fencing certain services, instead advocating an approach ‘built upon all services being subject to scrutiny and comparative prioritisation in the allocation of resources'.

The Scottish Government should also undertake an immediate review of all free and subsidised universal services, the panel says. This could include changing the eligibility criteria for concessionary travel and free eye tests and looking at whether personal care for elderly people should continue to be free of charge. The current university funding arrangements, and the possible introduction of tuition fees, should also be examined.  

Beveridge said: ‘Scotland needs to decide what form and shape of public service it desires and can afford. What do we want the state to do? What level of taxes are we willing to bear for the provision of our public services?’

Swinney called for the Scottish Government to have ‘the financial responsibility and economic powers’ necessary to boost the nation’s economy and invest in ‘quality public services’. He added: ‘It is clear that we face a significantly constrained public spending environment as a result of financial mismanagement by the previous Westminster government, and a UK Budget that delivers cuts which are too deep and too quick.’

Don Peebles, CIPFA Scotland policy manager, commented: ‘Clearly radical actions are needed. People have to know what core public services can be expected in Scotland in the future from what will almost certainly be a reduced level of funding.’

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