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

Safeguarding Business Support

Wakefield Council
£25,989.00 - £26,403.00, Grade 4
Are you flexible, looking for a challenge and a role where no two days are the same? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Highways Technical Officer

Powys County Council
£38,220 to £39,862 per annum
The position offers a unique opportunity to work across a broad range of responsibilities. Llandrindod Wells, Powys
Recuriter: Powys County Council

Litter Picking Operative

North East Lincolnshire Council
NJC03 - £24,796 + Enhancement
Do you thrive working in an outdoor environment? North East Lincolnshire
Recuriter: North East Lincolnshire Council

Strategic Lead Opportunities - Highways and Transport

North East Lincolnshire Council
£65,211 A relocation package is available
North East Lincolnshire Council is reimagining the way highways and transport services are delivered North East Lincolnshire
Recuriter: North East Lincolnshire Council

Senior Town Planner

North East Lincolnshire Council
NJC28 £39,152
If you’re someone who thrives on shaping places and making a real difference to communities, this could be the role for you. North East Lincolnshire
Recuriter: North East Lincolnshire Council
Linkedin Banner