Post by Bob on Aug 25, 2011 8:30:09 GMT 1
Scotland's finances face a "worst-case scenario" and public bodies may struggle to manage budgets, an official report has said.
Audit Scotland reiterated that Scotland's public bodies needed to make significant savings this year.
Two years ago, Audit Scotland highlighted analysis by the Centre for Public Policy for Regions (CPPR) looking at three possible budget scenarios, ranging from a 5% real-term reduction at best, to an 11% reduction at worst.
The new report states: "It is now clear that the scale of the budget reductions facing Scotland over the next few years is close to the CPPR's worst case scenario."
Robert Black, Auditor General for Scotland, said: "The public sector needs to reduce costs but there is also an opportunity to reform the way public services are delivered.
The report poses a challenge to several key Scottish government policies such as free personal care, concessionary travel, free education and no compulsory redundancies.
Public sector pay costs will continue to rise - despite the public-sector pay freeze - unless staff numbers are reduced, according to the report.
The report also suggested that some so-called "efficiency savings" already carried out have actually been service cuts.
Audit Scotland reiterated that Scotland's public bodies needed to make significant savings this year.
Two years ago, Audit Scotland highlighted analysis by the Centre for Public Policy for Regions (CPPR) looking at three possible budget scenarios, ranging from a 5% real-term reduction at best, to an 11% reduction at worst.
The new report states: "It is now clear that the scale of the budget reductions facing Scotland over the next few years is close to the CPPR's worst case scenario."
Robert Black, Auditor General for Scotland, said: "The public sector needs to reduce costs but there is also an opportunity to reform the way public services are delivered.
The report poses a challenge to several key Scottish government policies such as free personal care, concessionary travel, free education and no compulsory redundancies.
Public sector pay costs will continue to rise - despite the public-sector pay freeze - unless staff numbers are reduced, according to the report.
The report also suggested that some so-called "efficiency savings" already carried out have actually been service cuts.