Independent Budget Review

8 Mar 2010 11:39 AM

The Independent Budget Review today issued an initial call for written contributions to help inform its analysis of prospects for public expenditure in Scotland.

The website of the Independent Review Panel - www.independentbudgetreview.org - is also launched today. It provides a central source of practical information and includes an outline of the process and of how to contribute to the work of the Review.

In advance of the next UK Comprehensive Spending Review, which will cover the three years 2011-12, 2012-13 and 2013-14, the purpose of the Independent Budget Review will be to inform public and Parliamentary debate about the challenges and choices which will exist in a significantly constrained public spending environment, and to ensure that priorities can be set by the Scottish Government and Parliament.

The Review Panel - Crawford Beveridge CBE (Chair), Sir Neil McIntosh and Robert Wilson - are conducting their work independently of Government. When they report in July this year, they will seek to present an informed and dispassionate view of the practical options available to those - in Parliament and in central and local government - who will determine how the Scottish Budget is allocated and spent in the next Spending Review period and beyond.

Mr Beveridge said:

"The assessment of the outlook for the public finances in Scotland which we are publishing today as part of our Initial Call for Contributions document paints a stark picture of the likely scale of future reductions in Scottish Government budgets over the three years of the next Spending Review period to 2013-14.

"In line with authoritative external forecasts, it now seems that the budget controlled by the Scottish Parliament and the Scottish Government is likely to fall by approximately £1 billion (or 3.6 per cent) each year, in real terms, during 2011-12, 2012-13 and 2013-14, with the most significant reduction expected in the first year: just over 12 months from now.

"Although these estimates are highly sensitive to a range of factors and may well change significantly over time, the precise figures matter less than the overall scale of likely budget cuts, which will - under any reasonable set of assumptions - be unprecedented in the years since Devolution.

"Forecast falls in future public expenditure will undoubtedly affect the way public services are organised and delivered and will have significant implications for all citizens and throughout all sectors of Scottish society.

"These forecasts should be seen as an early call to action. To help us begin to form our response, we are today issuing an open invitation to individuals, organisations and representative bodies to contribute to the Review and help inform our thinking - initially by submitting written evidence.

"Early and focused effort will be required if the quality of public services in Scotland is to be maintained at or near the level which citizens have come to expect in recent years," he said.

The Initial Call for Contributions document, published today, includes a framework of key questions for respondents to consider. Written submissions should be sent to the Review Secretariat by Monday, April 12.

Once the Panel has carried out its initial analysis of written submissions, it aims to meet with a limited number of individuals and bodies where it judges that further evidence would be helpful. Its report will be published by the end of July 2010.

The three panel members have agreed not to take payment for conducting the review but will be reimbursed for expenses. Details of their appointment and business backgrounds are available on the Independent Budget Review website.

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