Public bodies have coped well so far with reduced
budgets but need to focus more on priorities and develop longer-term financial
plans.
Scotland's public finances: Progress in meeting the
challenges, published today by the Auditor General for Scotland and the
Accounts Commission, provides an update on the financial position in the public
sector.
The
report is aimed at supporting those leading and managing public services in
making increasingly difficult choices about how to make best use of the money
that is available. Alongside the report, Audit Scotland has published
checklists designed to help non-executive directors and councillors with their
crucial role in budget-setting and financial planning.
Faced with considerable and ongoing financial
challenges, public bodies' main method of lowering spend was to reduce
staff costs but this is not sustainable. Longer-term spending plans focusing on
priorities and risks must be created to assess spending needs and options and
their implications for affordability.
Increasing demand from an ageing and expanding
population will continue to put considerable pressures on public bodies. Rises
in energy prices, and a need to maintain 'fit-for-purpose' facilities
such as hospitals and schools, also have to be considered against a backdrop of
further budget reductions.
Auditor General for Scotland, Caroline Gardner, said:
"With further pressures expected and the demand for services increasing,
public bodies need to look again at how they set budgets and focus on their
priorities.
"There is a clear need for effective longer-term
financial plans which identify potential risks and to ensure spending decisions
are affordable."
Accounts Commission chair, Douglas Sinclair, said:
"Public bodies cannot afford to take a short-term approach to spending if
they are going to protect services.
"It's crucial that councillors, and others who
approve budgets, get the information they need to make informed decisions about
how best to use the money that is available. The checklists aim to help those
involved ask key questions about the approach to dealing with continuing
financial pressures."
For
further information contact Kirsty Gibbins, Communications Officer, on 0131 625
1658, or by email to kgibbins@audit-scotland.gov.uk
Notes to editors
1.
This report is a follow-up of our 2011 report Scotland's public finances:
Addressing the challenges. It provides a high-level summary of the main themes
arising from local audit work carried out during 2013. The report is aimed at
public bodies that include councils, NHS boards and central government bodies
such as executive agencies and non-departmental public bodies. The report