Public bodies ‘spending too much now’, say MSPs

PUBLIC bodies are not making the budget cuts required to allow for investments that will ultimately save them money, MSPs have advised.
The Finance Committee at Holyrood made the claim on public spending. Picture: Neil HannaThe Finance Committee at Holyrood made the claim on public spending. Picture: Neil Hanna
The Finance Committee at Holyrood made the claim on public spending. Picture: Neil Hanna

There is little evidence of “necessary disinvestment taking place to support the shift towards a preventative agenda”, Holyrood’s Finance Committee has advised.

Preventative spending is the notion that some money invested now will save even more money in the future, such as investing in early years healthcare to prevent costly chronic conditions in later life.

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The Committee is concerned that public bodies are spending too much propping up existing services to put money towards future savings.

Convener Kenneth Gibson, an SNP MSP said: “In terms of preventative spend, we recognise it is a challenging fiscal environment and welcome the example set by Highland Council and NHS Highland where there is real evidence of the necessary cultural and structural change in the way public services are delivered.

“However, progress would appear to be much slower in other areas, which is why we have asked the Government to identify the main barriers to realising change and what actions it is taking to address these.”

In a report on the Scottish Government’s Draft Budget, the Commitee said: “Without this disinvestment in existing services it is difficult to see where the additional resource for preventative services will come from.

“The Committee asks whether the Government is content with the progress being made by public bodies in carrying out the necessary disinvestment to unlock resources for a preventative approach.

“The Committee also asks the Government to provide examples of resources being unlocked for preventative measures through a disinvestment in existing services.

“The Committee asks the Government whether there have been any discussions with Cosla in relation to local authorities deploying any savings to preventative services from the ‘significant reduction’ in staff costs.”