Budget 'efficiencies' may become cuts

While welcoming 'attractive' measures in the new Scottish Government budget, UNISON has warned that 'efficiencies' could mean cuts in public services.

The budget set out for next year is important to UNISON members as it allocates headline resources to each public service. The overall budget will rise by 1.5% a year - the tightest settlement since devolution. Detailed spending decisions are still to be taken by local councils, health boards etc.

"While UNISON has welcomed a number of attractive political announcements, we are very concerned that the under-funding of baseline budgets will hit the day to day services our members deliver", said Dave Watson, Scottish Organiser.

Health board problems

The health budget is a good example. Spending on initiatives like waiting times has increased by 31%, while health board budgets will only go up 0.5% in real terms.

"When higher health inflation is taken into account, this budget will cause health boards a number of problems", warned Dave.

Council Tax freeze cost

On paper local government looks to have done slightly better, but much of the increase is going to pay for a Council Tax freeze. The 'Concordat' between the Government and CoSLA does include a welcome reduction in ring-fencing but branches will need to monitor carefully the impact of local decisions on services currently delivered through ring-fenced funds.

"We are also concerned that the new emphasis on outcome agreements, without the necessary funding, may mean passing the buck to councils for policies that are not delivered", said Dave. For details of the 'Concordat' see Briefing 172 on the website.

The issues are similar in other services with minimal increases for Higher Education and Police. "The only way the books will be balanced is through efficiency savings and the budget assumes a 25% increase in these savings next year", added Dave.

"It gives little indication as to how this will be achieved other than through better procurement and shared services. Efficiency targets without a strategy looks like a budget cut under a different name."

There is a welcome increase in capital allocations which will help fund more cost effective procurement than PPP/PFI.

"We are still waiting for the announcement on the 'Scottish Futures Trust' alternative to PPP/PFI and we have some concerns that ministers may be backtracking by supporting cosmetic changes through Non-Profit Distributing PFI models", Dave explained.

These concerns are reflected in UNISON's evidence to the Parliament Finance Committee inquiry on capital infrastructure (also on the website).

"Overall the consequences of this budget are going to be very challenging as the consequences roll out at local level", Said Dave. For details (Briefing 171) and much more see www.unison-scotland.org.uk.

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