By David Scott
14 July 2010
Scottish Finance Secretary John Swinney has called for a wide-ranging debate on the tough choices that lie ahead following a warning by his chief economist that Scotland faces long-term spending cuts of £42bn.
Swinney said the publication of an independent budget review, due at the end of this month, would trigger a period of consultation led by the government and giving the ‘whole of society’ a chance to air their views.
His statement on July 11 is seen as an indication that the review will identify spending areas that Scotland can no longer afford.
There has been speculation that universal state benefits such as free personal care and bus travel for elderly people could be under threat.
Swinney pointed out that an updated analysis by chief economist Dr Andrew Goudie showed that Scotland could lose £42bn over the next 16 years.
He added: ‘The days of simply deciding where to spend extra money are gone for the foreseeable future.
‘Instead we all need to focus on how to deliver the things that really matter to the people of Scotland.’
This would mean some tough choices and a clear focus on frontline services, Swinney emphasised.
Goudie’s latest analysis, published on July 7, forecast that it could take 16 years for the Scottish budget to return to its ‘peak’ spending level in 2009/10.
The cumulative estimated loss of £42bn by 2025/26 compares with a £26bn loss estimated following the March 2010 UK budget.
14 July 2010
Scottish Finance Secretary John Swinney has called for a wide-ranging debate on the tough choices that lie ahead following a warning by his chief economist that Scotland faces long-term spending cuts of £42bn.
Swinney said the publication of an independent budget review, due at the end of this month, would trigger a period of consultation led by the government and giving the ‘whole of society’ a chance to air their views.
His statement on July 11 is seen as an indication that the review will identify spending areas that Scotland can no longer afford.
There has been speculation that universal state benefits such as free personal care and bus travel for elderly people could be under threat.
Swinney pointed out that an updated analysis by chief economist Dr Andrew Goudie showed that Scotland could lose £42bn over the next 16 years.
He added: ‘The days of simply deciding where to spend extra money are gone for the foreseeable future.
‘Instead we all need to focus on how to deliver the things that really matter to the people of Scotland.’
This would mean some tough choices and a clear focus on frontline services, Swinney emphasised.
Goudie’s latest analysis, published on July 7, forecast that it could take 16 years for the Scottish budget to return to its ‘peak’ spending level in 2009/10.
The cumulative estimated loss of £42bn by 2025/26 compares with a £26bn loss estimated following the March 2010 UK budget.
