The Independent Budget Review, commissioned by the Scottish Government today reported its findings arguing that all public services in Scotland must share the pain of spending cuts. The panel was appointed in February this year to lay out how best the Scottish Government could address the looming £42 Billion spending cuts in the next decade and a half.
Public sector jobs would have to go concluded the report - if the Government and unions insisted on maintaining the current growth in public sector wages, the panel argued that 10% of the Scottish public sector jobs have to shed. Currently, the public sector wage bill is almost 60% of government spending in Scotland and the panel argues that a two year pay freeze should be immediately announced. This would help protect many jobs in Scotland but the Scottish public sector would still need to shed about 5.7% of its workforce.
The three member independent panel also warned that the Scottish Government must not follow in the footsteps of the UK Government which has ring fenced NHS spending. NHS spending accounts for almost 30% of Scottish Government budget and maintaining it at current levels would mean over 20% cuts in other departments. Similarly, the government in Holyrod has been urged to review all free universal services including personal care, eye exams and concessionary travel. The final phase of the free prescription service should be dropped as well concluded the panel in its report.
On higher education, the report recommends that the Scottish Government needs to review the current funding system or emulate the UK Government by reintroducing tuition fees north of the border. The Chairman of the panel, Crawford Beveridge a former chief executive of the Scottish Enterprise said:
"There are very difficult decisions to be made over the next few months, requiring strong leadership not just in their making but also in their subsequent implementation.
"Clearly there are significant short term challenges.However important decision need to be taken about the future," he added
"Scotland needs to decide what form and shape of public services it desires and can afford."
The report did not offer "a nice easy formula" for Ministers to follow but presented a range of options.
"It is going to be difficult – we are going to have to make difficult choices in other areas if that's what we're trying to do," said Sir Crawford.
