Ringfencing health service 'could see £36m more cuts'

PROTECTING the NHS from public sector cuts will mean the city council will have to find an extra £36 million of cuts in the next three years, it was warned today.

City council chiefs said that, if the Scottish Government follows the Westminster government in ringfencing health spending, it would mean an extra 12m a year in cuts to council services.

The cuts would be in addition to the 90m of savings which already need to be found in the next three years.

That could mean severe cuts in everything from schools and social work to road repairs and housing.

The gloomy warning came in a closed-door budget briefing for councillors hosted by council finance director Donald McGougan.

Trade union leaders - who have also been warned about the potential impact of protecting the health service - said they were "extremely concerned".

But opposition councillors vowed to continue to avoid frontline cuts.

John Ross, Unison's service conditions convener in Edinburgh, said: "This would mean that the council would not be able to maintain the range of services you would expect and that it will have to prioritise and perhaps withdraw from services.

"Whether that brings us into conflict is down to how the council prioritises services. We would have no qualms about taking the council on but we do not want to do that."

Chancellor George Osborne will announce his comprehensive spending review in October, with the Scottish Government's finance secretary, John Swinney, then expected to set out each local authority's share a month later.

If the health budget is ring-fenced - as many expect it to be - it would mean more cuts could be passed on to local government.

Councillor Ricky Henderson, finance spokesman for the Labour group on the council, said: "We will struggle to achieve the savings already put forward so an additional burden would be intolerable.

"Our fundamental stance is we will do everything we can to protect frontline services."

Cllr Iain Whyte, finance spokesman for the Conservative group, and also an NHS Lothian board member, said: "It is fairly obvious that, if health won't take cuts, the rest of the services will all have to take proportionately bigger cuts. If you do that it could be counter-productive because a lot of what councils do is in partnership with health boards."

Gordon Matheson, the leader of Glasgow City Council, called this week for the council tax freeze to be lifted to help deal with the financial difficulties. City council leader Jenny Dawe today said she would look at any means of increasing income.

A Scottish Government spokesman said any increase in health-service spending in England would be passed on to the health service in Scotland.

He said: "We will listen to all views as we consider the Independent Budget Review."

Cllr Dawe said: "How health is treated could have a major impact on local government finance. However, there are many factors that will determine how much money is to come to Edinburgh.

"At the moment, we have not revised our figure of 90m."