Comprehensive Spending Review

The UK Government has today announced details of the Comprehensive Spending Review.

Derek Brownlee MSP, Shadow Cabinet Secretary for Finance & Sustainable Growth, said:

"The Scottish Government had been planning for a 12.3% real terms reduction in revenue spending. The Comprehensive Spending Review revealed a significantly smaller cut of 6.8% over the period [see note 4]. In cash terms the revenue DEL for Scotland increases, although by less than inflation. Capital budgets will fall by the amount anticipated by the Scottish Government and planned for by the last Labour Government.

"Difficult decisions lie ahead, but the Scottish Government faces less of a challenge than anticipated. Indeed the challenge for the SNP, and Scottish Labour, is to stop carping from the sidelines and to start setting out what they will do.

"There is still a need for savings to be found and that is why the Scottish Conservatives have already identified over three quarters of a billion pounds which could be saved. We will continue to set out an agenda for reform which delivers better public services.

"Alone amongst the parties in Scotland, we have faced up to tough decisions, set out our ideas and shown leadership. It's time Alex Salmond and Iain Gray stepped up to the mark."

1) The Scottish Government's preparations for a 12.3% real terms reduction can be found in report by Andrew Goudie, the Scottish Government's Chief Economic Adviser
http://www.scotland.gov.uk/News/Releases/2010/04/22160752

2) DEL stands for Departmental Expenditure Limits

3) The Scottish Conservatives have so far proposed the following savings:

A recruitment freeze, except for essential posts: cutting the recruitment rate by 3% could save £450m

Taking Scottish Water out of State control, e.g. mutualising: £140m

Keeping prescription charges for those who currently pay: £37m

Cutting absenteeism by 2% £138m

Total (so far) £765 million every year

In addition, Scottish Conservatives have outlined proposals for a graduate contribution to further and higher education and proposals to integrate social care into the NHS budget

4) The relevant information can be found in table A.5 and A.6 in the Comprehensive Spending Review document

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