09/06/2010
Efforts by public sector leaders to prepare for forthcoming budget cuts are patchy and lacking in urgency, according to a report by the Scottish Parliament’s Finance Committee.
The report, which follows an inquiry by the committee into the efficient delivery of public services, calls on publicly funded bodies, the Scottish Government and parliamentary committees to show far greater leadership, by discussing in more open and realistic terms the impact of the cuts and how they can be dealt with.
The committee has asked the Scottish Government to explain in more detail the principles that will inform its future spending proposals and the degree to which these principles have been discussed with spending bodies. The Scottish Government should also state whether it has a specific strategy for protecting vulnerable people from the impact of the cuts.
Finance Committee convener, Andrew Welsh MSP, said: “Over the course of its inquiry, the gravity of the current financial situation was made clear to the committee. Given the scale of the challenge, it is essential that the Parliament and the Scottish Government begin working together now to ensure an effective response to the forthcoming budget reductions.
“We therefore call on the Scottish Government to set out more fully the principles that will inform its approach to developing its spending proposals. This would demonstrate real leadership by setting out spending choices in an open and transparent manner, and would also provide committees with a much clearer understanding of the Scottish Government’s intended approach.
“During the inquiry the committee considered some of the factors that will shape the Scottish Government’s approach to its forthcoming Spending Review and its 2011-12 Draft Budget. Three factors in particular arose in evidence – public sector pay, universal benefits and whether to protect certain spending from cuts.
Mr Welsh continued: “We have today asked the Scottish Government for more detailed information on these areas. For example, we have asked for details of how the Scottish Government will fund its commitment to maintaining universal benefits in the current financial climate and to explain the effect of this commitment on other budgets.
“Given the human impact of public sector job losses, we have asked for more specific information on the number of public sector jobs that the Scottish Government estimates will be lost in future years. In addition, the Scottish Government should provide greater clarity on its planning in relation to pay policy.
“Looking ahead, the committee is agreed that longer-term approaches to public spending should not be sidelined, even in the face of the immediate challenges. We therefore plan to launch a new inquiry that will examine ways in which public spending can be focussed on trying to prevent, rather than deal with, negative social outcomes.”
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