Public spending should focus on outcomes, says CIPFA

19 Apr 11
Scotland’s public finance professionals have rebuked politicians for making election promises they cannot afford to keep.
By Keith Aitken in Edinburgh

20 April 2011

Scotland’s public finance professionals have rebuked politicians for making election promises they cannot afford to keep. CIPFA has urged them instead to channel their energies into radical reform of the way public services are planned, funded and delivered.

In a Call to the new Scottish Government, published today, CIPFA in Scotland says that three principles should be paramount in public services: that they be sustainable, affordable and planned to achieve clear outcomes.

In her foreword, Angela Scott, head of CIPFA in Scotland, writes: ‘If there are any consistencies between the party documents it is that a significant level of public spend, measurable in billions of pounds, is promised.

‘In our view, the current adverse financial climate should provide a stimulus for change in how we design and deliver public service. Our vision is for a public service financial culture in Scotland in which services are planned and funded on an integrated basis and resources directed to the achievement of social outcomes.’

Of CIPFA’s three principles, it is outcome-based budgeting that demands the most fundamental change. The Scottish National Party administration has created a National Performance Framework of national and local target outcomes but has failed to push through the budgeting reforms needed to make it work, CIPFA says.

Instead of budgets being allocated to organisations on a basis of incremental change to previous allocations, CIPFA wants money distributed by assessing, planning and integrating collaborative endeavour by different bodies to achieve given outcomes.

CIPFA believes that this ‘joined-up’ alternative to sector-based funding could drive out inefficiencies across the public sector and take better notice of local priorities. It calls for long-term planning of both services and funding to become embedded in Scotland’s public service financial culture.

But there is also a warning that public expectations of universal services are no longer sustainable. ‘Future access to public services should be prioritised and targeted,’ the paper says. ‘The consequence of this is that there will be greater personal responsibility on the part of the citizen.’
CIPFA wants all decisions of the Parliament to undergo transparent affordability tests and all manifesto promises made subject to independent financial scrutiny.

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