Transparency needed on spending risks and plans for public services

Public services will come under further threat if the Scottish Government does not set out and deliver a clear and costed vision for public service reform.

Spending pressures have become more acute in recent years and are forecast to grow. But ministers have continued to rely on short-term decisions to balance the books, rather than making fundamental changes to how services are delivered.

Public service reform is a key component of the Scottish Government’s approach to fiscal sustainability. But there is no evidence of large-scale change on the ground, while the Scottish Government:

• has not yet fully established effective governance arrangements for a reform programme
• does not know what additional funding is required to support reform
• and has not provided enough leadership to help public sector bodies deliver change.

The Scottish Government has not been transparent enough with the Scottish Parliament or the public about the medium-term risks it is facing. The medium-term financial strategy and financial plans for the NHS and infrastructure investment have all been delayed. The absence of these documents makes scrutiny of the current uncertain financial situation more difficult.

Stephen Boyle, Auditor General for Scotland, said:

People do not fully understand the medium-term risks public services are facing because of a lack of transparency from the Scottish Government.

The reality is that we need a fundamental change to how public money is spent to ensure services can meet demand and remain affordable beyond the short-term.

To turn that into action on the ground, the Scottish Government must set out a clearer vision of what its plans for reform will achieve, including delivery milestones and the likely impact of reform on services and people.