Scotland’s public sector needs “fundamental reform” if it is to cope with a cash freeze over the next four years, the Scottish Government claims.
Finance secretary John Swinney sounded the warning as he revealed the majority of public services would receive no increase in budgets before 2015.
The North Tayside MSP outlined the “flat cash” idea after bowing to pressure from opposition parties to set out budget assumptions beyond next year.
However, he stressed the figures lodged with Holyrood’s finance committee do not represent the final decisions of the Scottish Government and will “inevitably change.”
They show capital and resource spending would grow from about £28 billion in 2011-12 to £28.1 billion the following year, then to £28.2 billion and to £28.5 billion in subsequent years.
Resource budgets would remain the same in all but two areas.
The health and wellbeing portfolio would increase from about £11 billion to £11.8 billion, while administration decreases from £228.5 million to £208.6 million.
Services such as concessionary bus fares, social care, community justice, the Crown Office and local government are expected to receive the same sum each year.
“The UK Government’s plans to cut public spending and the resulting severity of the long-term financial outlook, means that fundamental reform of our public services is unavoidable,” he said.Christie Commission”We have established the Christie Commission to make recommendations on public service issues facing Scotland. The commission’s findings will inform a debate on future funding plans.
“They do not represent the results of final decisions taken by the Scottish Government but they should provide a framework within which public sector organisations, and stakeholder groups across Scotland, can discuss options and consider the range of possibilities within which they can plan for the future.”
Dr Campbell Christie was appointed by the SNP government last year to chair a commission on the future of public services in light of funding cuts from Westminster.
Reviews are also under way to determine the future of higher education funding, social care and the police and fire services.
The capital spending programme would be affected by cuts of almost 40% announced by the UK Government over the years to 2015.
Key priorities such as the Forth crossing and the Southern General hospital in Glasgow have been identified, Mr Swinney said.
He added, “What these numbers provide is a planning assumption for individuals with the public sector and is set to be helpful to those in the public sector to forge some of the options and respond to some of the challenges they may have to face.””Lacking credibility”However, Labour finance spokesman Andy Kerr said the figures lacked credibility.
“To suggest that every single departmental budget, with the exception of health, will remain unchanged for the next four years is an election trick that shows he is not serious,” he said.
“The SNP have insulted parliament by publishing deliberately disingenuous budget figures.”
Lib Dem finance spokesman Jeremy Purvis said, “The SNP are proposing to carry forward the damage they are doing by their wrong choices.”
Conservative finance spokesman Derek Brownlee said, “We have said that this budget and future budgets should do more to grow the private sector, create jobs and reform public services.
“There is little evidence today the SNP government is rising to that challenge.”