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Scotland's Independent Budget Review 2010 published, WWF-Scotland responds

Published 02 August 2010 in Local Government

In February 2010, the Scottish Government commissioned the Independent Budget Review Panel to carry out a review of public expenditure in Scotland by the end of July 2010. Thursday, 29 July the report was published. It sets out a series of options which the Scottish Government and Parliament may want to consider in the face of the most challenging public spending environment since the Second World War. These options include consideration of:

• subjecting all services to scrutiny and comparative prioritisation, without an overriding presumption of protection for any of the major services
• discontinuing the current council tax freeze, which does not appear sustainable in the projected economic environment
• ensuring that future annual efficiency targets across the public sector are no less than 2 per cent per annum
• further reducing the number of public bodies
• applying a two-year pay freeze, from 2011-12, as the first essential step to constrain growth in the public sector pay bill
• immediately implementing a recruitment freeze across the public sector, with exceptions only granted for essential staff posts
• managing a fall in public sector employment of between approximately 5.7 per cent and 10 per cent by 2014-15, as far as possible through natural wastage
• reviewing the NHS Distinction Awards scheme, as part of the Fair Pay Review
• engaging with the Independent Public Services Pension Commission to review public sector pensions, recognising that changes to current public sector pension arrangements are essential and almost certainly unavoidable
• undertaking immediate work to review whether all free or subsidised universal services should be retained in their current form, including reviewing eligibility criteria for concessionary travel and free NHS eye examinations, reviewing future arrangements for free personal and nursing care and considering the suspension of the final stage in the planned reduction in prescription charges
• whether to maintain the current funding arrangements for higher education in Scotland or to implement a scheme similar to that in England, such as tuition fees, or other arrangements such as graduate contributions, taking into account the outcome of the Browne Review
• revising and building on the role of the Scottish Futures Trust
• exploring options for changing the status of Scottish Water, possibly to that of a public interest company, which could permit the release of significant capital to the Scottish Government for other projects; and
• developing a longer term strategic view of the future shape and nature of public services.

In response to the report, WWF-Scotland released a response stating that the review fails to give sufficient acknowledgement of the green economy. Dr Dan Barlow, Head of Policy at WWF Scotland said, "Public spending is hugely influential in delivering a low carbon future for Scotland and yet the review fails to recognise the many opportunities that exist to deliver win-win cost effective, climate friendly and health improving benefits. As examples transport expenditure which supports active travel rather than road building can improve health and cut climate emissions, investment in improving the efficiency of our housing stock can cut bills, tackle fuel poverty and cut carbon.”

To view the full Budget Review report and associated news release, visit the Scottish Government website: Independent Budget Review

To view the press release for the WWF-Scotland Response, please visit their website: WWF Scotland Press Centre

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