Tuesday, 20 September 2011

Efficiency Savings

The Scottish Government has published its Efficiency Outturn Report for 2010/11. The public sector in Scotland has generated £2,276m savings against a target of £1,603. That's an additional £673m.

The biggest contributions came from Local Government with £888m and then Health with £821m.

One of the challenges in tomorrow's Spending Review is how to respond to the UK Government's plans to dock £140m (over three years) from the Scottish Government for the UK 'tax' on the pensions of health workers in Scotland. Well here is the answer. Health workers have already found those savings and much more. In fact the savings above target in themselves will cover the Osborne/Alexander 'tax'.

While we welcome John Swinney's congratulations to the public service workers who achieved these savings. A more concrete reward would be to tell the Treasury that Scotland will go its own way. Oh, and by the way, there is more than a bit left over for a pay increase too!

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