Scottish Government
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Independent Budget Review

A comprehensive, wide-ranging programme of public engagement will ensure the people of Scotland have their say on the country's next budget, Finance Secretary John Swinney said recently.

Publication of the Independent Budget Review (IBR) at the end of the month would trigger a period of consultation, led by Government, but providing the whole of society with a chance to air their views.

The public engagement will feature public meetings and online tools to allow groups and individuals across Scotland to get involved. Full details will be announced when the IBR is published.

He said:

"While we still don't know the amount of money Scotland will have to spend next year, I believe that the scale of the challenge we face as a result of Westminster spending cuts is clear to us all.

"Since devolution, the money Scotland has had to spend has gone up every single year. But that changed in the 2010-11 budget when the previous government imposed the first real terms cut in our budget since the creation of the Scottish Parliament - and the years to come will be even tougher.

"The last Government in London has made a complete mess of the UK finances and the current administration is cutting too quickly and too deeply. As analysis published by Scottish Government economists this week shows, Scotland could lose some £42 billion over the next 16 years.

"We have to face that challenge in partnership, across the whole of Scotland. The days of simply deciding where to spend extra money are gone for the foreseeable future

"Instead, we all need to focus on how to deliver the things that really matter to the people of Scotland.

"That means being more efficient, delivering services more effectively and valuing every pound. The Scottish Government is leading the way on that agenda as we exceeded our efficiency targets by over £300 million for 2008-09.

"But it will also mean some tough choices and a clear focus on the frontline services that people in Scotland demand and deserve.

"By the end of July, the Independent Budget Review Panel will have reported, providing advice on the potential paths we could choose.

"As I confirmed to Parliament last week, that will provide an opportunity for what I hope will be a wide and comprehensive public debate.

"It will be for the Scottish Government to publish our spending plans following the UK spending review in October, but before then, everyone who wants to contribute will have the opportunity to do so.

"We will go to communities across Scotland and we will listen to all voices who wish to be heard - not simply those who shout the loudest.

"That gives us the best possible chance of bringing forward the best possible budget for the whole of Scotland. A budget that protects what we value the most, that sustains the economic recovery underway across Scotland and meets the substantial challenge of our times."

The Scottish Government is taking action to deliver efficiencies and release cash for frontline services:

The 2008-09 outturn report, published in November 2009, confirmed savings of £839 million against the £534 million target. This represents 3.1 per cent of the 2007-08 DEL baseline

Last September the Scottish Government's running cost budget for 2010-11 was cut by £14 million or five per cent below planned expenditure for the year

The centrally-held marketing budget was reduced by over £5 million or over 50 per cent. There is now a presumption against external recruitment, strict controls on staff headcount numbers, and robust limits on the use of consultants, managed within strict financial restraints

Air and rail travel costs have been reduced by 25 per cent in the second half of 2009 compared with the first half, and the Scottish Government is continuing to bear down on these costs. Ministers have taken a pay freeze in 2009-10 and 2010-11, while senior civil servants will also have their pay frozen in 2010-11

The Scottish Government is delivering a 25 per cent reduction in the number of national devolved public bodies (from 199 to 120) by April 2011. The Simplification Programme will deliver estimated savings of £123 million in the period 2008-2013 and around £38 million per annum thereafter.

Mr Swinney will meet with Finance Ministers from the devolved administrations and the UK Government as part of a regular programme of engagement later this week.

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