William Eichler 24 November 2015

Scottish services face billions of pounds of cuts

Scottish public services could face billions of pounds of cuts following tomorrow’s Spending Review, according to IPPR Scotland.

A new report by the thinktank projects that Scotland is facing a 2.6% cut in real terms (cumulative) by 2019/20.

IPPR also estimates resource budgets will fall by 4.3% in real-terms (cumulative) by 2019/20 with capital budgets increasing by 11.7% in real terms (cumulative) by 2019/20.

The overall cut, IPPR calculates, could be partially reduced by income from Scottish Business Rates and using the Scottish Parliament’s current borrowing powers, leaving a 1.4% cut in real terms (cumulative) by 2019/20.

The Scottish Government has, however, promised to protect certain areas from the cuts. It will protect NHS funding in real terms and pass on all Barnett consequentials from increased NHS spending in England.

A ‘funding floor’ has also been put in place for college funding, protecting it in cash terms.

Additionally, according to IPPR’s report, the Scottish Government has made commitments to build 50,000 affordable homes and provide 1,200 hours of childcare by the end of the parliament.

The Scottish Government’s commitment to protect these areas means that other areas will see cuts.

IPPR Scotland estimates that non-protected departments--justice, local government, care, for example--could see a cumulative real terms cut of 11.3% by 2019/20. This amounts to a cut of £1.5bn in real terms.

Russell Gunson, Director of IPPR Scotland, said:

'These figures set out the scale of the cuts we could see in Scotland from next year, and in turn the choices Holyrood will have to make. We estimate that the Scottish budget as a whole is likely to drop in real terms. However, with announced increases in NHS funding and for affordable housing and childcare, we see that spending in unprotected departments in Scotland could drop significantly, seeing billions of pounds of spending cuts.

‘Budget cuts are likely to be lower in Scotland overall than in the rest of the UK. However, the challenge is still an enormous one. Decisions will need to be made, either to find ways to raise revenue to lessen the cuts, or as to where the axe falls.’

SIGN UP
For your free daily news bulletin
Highways jobs

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Director of Planning and Building Control

Royal Borough of Greenwich
up to £140,000
Our new director will play a key role at the heart of the Council’s ambitious agenda for place‐based growth and regeneration. London (Greater)
Recuriter: Royal Borough of Greenwich

Assistant Director, Strategic Property

Royal Borough of Greenwich
circa £120,000
This exciting property leadership role combines commercial, civic, and heritage asset management London (Greater)
Recuriter: Royal Borough of Greenwich

Chief Executive

Eastleigh Borough Council
circa £150,000
We embrace the opportunities presented by reorganisation and devolution across the region. Eastleigh, Hampshire
Recuriter: Eastleigh Borough Council

Corporate Director, Corporate Services and Section 151 Officer

Luton Borough Council
up to £160,170 per annum
We have delivered significant progress and stand on the cusp of a once-in-a-generation opportunity. Luton, Bedfordshire
Recuriter: Luton Borough Council
Linkedin Banner