What's
the Executive spending on your service?
UNISON's Policy and information Team has issued a briefing
to branches on Scottish Executive spending plans for the next
three years. Spending will rise from £25 billion this year
to £30 billion in 2007-8 - an average increase of 3.6% after
inflation.
It stands in stark contrast to the cuts imposed by the previous
Conservative government and their planned cuts if elected
at the next UK general election.
As always there are some services that have gained more than
others. The big gainers are health, education and transport.
Less welcome is the tighter spending plans for local government.
Justice
Most of this budget relates to services directed by the Executive
such as the Prison Service. Most police and fire expenditure
is accounted for in the local government plans. Those plans
assume an above average increase for police. Fire gets slightly
more than the average to cover the fire service pay agreement.
Education
The education budget again largely covers central initiatives
with schools funded through local government. Universities
get a 30% increase over 3 years with a similar increase for
further education, which should go someway towards addressing
their financial problems.
Health
A headline 28% increase in the NHSiS over the next three
years is good news for hard pressed health boards. We will
need to see the detailed budgets to identify how much will
be available for real improvements and how much simply to
address rising health costs.
Local Government
This is the most disappointing aspect of the spending plans.
A 9.7% increase over three years' compares unfavourably with
the 23.6% rise in non-council spending. After inflation this
is only 1% growth and makes it increasingly difficult for
local authorities to meet the Executive's service aspirations.
Very little of the additional housing money will find its
way to local authorities. Local authorities will be facing
further financial pressures when addressing pay inequalities
under the single status agreement.
Transport & Environment
Transport gets the bumper 47% increase with the biggest increase
to fund the promised concessionary fare schemes and new road
building. The water budget is at standstill pending decisions
on investment plans.
Capital Investment
The Finance Minister highlighted substantial increases in
capital expenditure - up 40% to £3.2bn by 2007/8. The detail
will be published later in the Capital Investment Plan. However,
local authority capital is only increasing by 7% over the
same period.
As highlighted in the water investment plans there is a very
real issue over the capacity of the construction industry
to manage capital investment at this level.
In these circumstances it is likely that building costs will
increase. UNISON has highlighted the need for a level playing
field between public authorities conventional borrowing and
PFI when financing capital investment. We will be looking
for the new treasury guidance on this issue to be reflected
in the Capital Investment Plan.
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