Tuesday 15 Apr 2008 @ 14:12
Scottish Government
Scottish Government
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Savings plan published
Plans identifying cash savings of £600 million over the next financial year were published today.
The Efficiency Delivery Plans also contain details of how the government will move towards 2 per cent savings in both 2009/10 and 2010/11.
Cabinet Secretary for Finance and Sustainable Growth John Swinney said the plans demonstrated the government's commitment to delivering improved public services through clearer and simpler government.
He said:
"Last year this government received the lowest increase in funding from Westminster since devolution.
"At the same time we want to deliver an ambitious programme that will mean real improvements in services for people across Scotland.
"That demands we make savings across government. Our plans are for real efficiencies that allow government to deliver high quality services for less.
"That is the guiding principle for the plans published today. By cutting waste, simplifying government and ensuring practices across the public sector are as efficient as they can be, we will deliver £600 million in savings over the next year. That's money that will be invested back into making a real difference to people's lives.
"The plans also give the first indication of how we will meet our tough targets over the following two years. We will now develop these further to ensure we deliver 2 per cent target savings in both 2009/10 and 2010/11.
"The plans for 08/09 will now be put into action. There is no doubt this is a demanding programme that will require everyone in the public sector to play their part. By doing so we can all contribute towards creating the more successful country that is this government's goal."
Examples of how savings will be made include through:
* Drug Purchasing
£20 million recurring saving to be delivered through more effective supply side arrangements in the provision of drugs and other prescribed items used in primary care e.g. through prescribing of generic drugs. Savings reinvested to fund the Abolition of Prescription Charges.
* Countering NHS Fraud
£1 million recurrent saving to be delivered through a mixture of actual recoveries and deterrence
* Forestry Commission Scotland
Forestry Commission Scotland has undertaken an exercise to analyse every woodland in its estate and score them against meeting SG objectives. They plan to sell those assets delivering least against the SG objectives and reinvest the income - in excess of £10 million a year for the next three years - on buying land and planting with trees that better meet Scotland's needs.
Decisions on the allocation of the cash released will be made within portfolios on the basis of how best to deliver the Scottish Government's priorities. The reinvestment of the money deducted at source is contained within the Spending Review proposals for the next three years. Question 14 of each Efficiency Delivery Plan explains how each saving will be used to improve service delivery.
Efficiency targets are expressed in cash terms. To measure progress against these targets, all efficiencies need to be measured or converted into a financial gain. All efficiencies should be supported by quality based assessments to demonstrate they are efficiencies.
There are two types of efficiency :
* Cash-releasing efficiencies are achieved by delivering an actual resource efficiency because the organisation or function delivers the same service at a reduced cost which might be demonstrated by delivering the same outcome(s) or output(s) for a reduced input (e.g. costs, people, procurement, assets etc) or delivering a reduced unit cost allowing an increased volume of service for the same cost. Cash efficiencies release financial resources to be used for other or increased public services
* Time-releasing or productivity efficiencies are defined as efficiency measures which do not release cash but allow public services to deliver better services with the same money (for example, through workforce reform or better support)
* The 2 per cent target may only be met by cash-releasing gains but any delivery above 2 per cent may include either and a project may contain elements of both types of gain
Related Information
The Efficiency Delivery Plans also contain details of how the government will move towards 2 per cent savings in both 2009/10 and 2010/11.
Cabinet Secretary for Finance and Sustainable Growth John Swinney said the plans demonstrated the government's commitment to delivering improved public services through clearer and simpler government.
He said:
"Last year this government received the lowest increase in funding from Westminster since devolution.
"At the same time we want to deliver an ambitious programme that will mean real improvements in services for people across Scotland.
"That demands we make savings across government. Our plans are for real efficiencies that allow government to deliver high quality services for less.
"That is the guiding principle for the plans published today. By cutting waste, simplifying government and ensuring practices across the public sector are as efficient as they can be, we will deliver £600 million in savings over the next year. That's money that will be invested back into making a real difference to people's lives.
"The plans also give the first indication of how we will meet our tough targets over the following two years. We will now develop these further to ensure we deliver 2 per cent target savings in both 2009/10 and 2010/11.
"The plans for 08/09 will now be put into action. There is no doubt this is a demanding programme that will require everyone in the public sector to play their part. By doing so we can all contribute towards creating the more successful country that is this government's goal."
Examples of how savings will be made include through:
* Drug Purchasing
£20 million recurring saving to be delivered through more effective supply side arrangements in the provision of drugs and other prescribed items used in primary care e.g. through prescribing of generic drugs. Savings reinvested to fund the Abolition of Prescription Charges.
* Countering NHS Fraud
£1 million recurrent saving to be delivered through a mixture of actual recoveries and deterrence
* Forestry Commission Scotland
Forestry Commission Scotland has undertaken an exercise to analyse every woodland in its estate and score them against meeting SG objectives. They plan to sell those assets delivering least against the SG objectives and reinvest the income - in excess of £10 million a year for the next three years - on buying land and planting with trees that better meet Scotland's needs.
Decisions on the allocation of the cash released will be made within portfolios on the basis of how best to deliver the Scottish Government's priorities. The reinvestment of the money deducted at source is contained within the Spending Review proposals for the next three years. Question 14 of each Efficiency Delivery Plan explains how each saving will be used to improve service delivery.
Efficiency targets are expressed in cash terms. To measure progress against these targets, all efficiencies need to be measured or converted into a financial gain. All efficiencies should be supported by quality based assessments to demonstrate they are efficiencies.
There are two types of efficiency :
* Cash-releasing efficiencies are achieved by delivering an actual resource efficiency because the organisation or function delivers the same service at a reduced cost which might be demonstrated by delivering the same outcome(s) or output(s) for a reduced input (e.g. costs, people, procurement, assets etc) or delivering a reduced unit cost allowing an increased volume of service for the same cost. Cash efficiencies release financial resources to be used for other or increased public services
* Time-releasing or productivity efficiencies are defined as efficiency measures which do not release cash but allow public services to deliver better services with the same money (for example, through workforce reform or better support)
* The 2 per cent target may only be met by cash-releasing gains but any delivery above 2 per cent may include either and a project may contain elements of both types of gain
Related Information
http://www.scotland.gov.uk/Publications/2008/03/EDPMarch2008
http://www.scotland.gov.uk/Topics/Government
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