Swinney focuses on NHS and transport as cuts loom – Daily Business

John SwinneyJohn Swinney
John Swinney: promises (pic: DB Media Services)

Reshaping the public sector, including a shake-up in the NHS and transport strategy, are expected to feature in today’s Scottish programme for government.

They will play a part in helping the Scottish government meet financial targets and improve delivery of key services.

John Swinney’s ministers will be keen to prove they are on track to deliver on the SNP’s election promises but are under pressure to show they can simultaneously enhance public services while cutting jobs.

In the first few months of the new administration it has hosted the first meeting of the new National Business Council, launched a new homes fund and published another draft referendum bill.

However, most of the key pledges on a flat rate bus fare, a food price cap and requesting the transfer of energy policy from Westminster, remain on the to-do list.

There are widespread calls for more action to tackle the slow provision of new homes and reform business rates.

Daily Business understands he will seek to reshape the NHS boards and that there may be an announcement on transport management.

Speculation emerged in the summer that Transport Scotland could be axed as an early casualty of a cull of quangos, part of the review of public sector spending being overseen by Ivan Mckee.

The ferries and port owner Caledonian Maritime Assets Limited (CMAL) could be reunited with the ferries operator Caledonian MacBrayne.

It is unclear how changing the status of Transport Scotland would affect the seven regional transport partnerships, including Strathclyde Partnership for Transport (SPT).

Mr McKee’s reforms, when they are eventually published, are almost certain to involve a significant reduction in the workforce.

Ivan McKeeIvan McKee
Ivan McKee: leading a review of the public sector

Big changes are demanded in order to plug a near-£5 billion gap in the public finances. Stephen Boyle, the auditor general, has expressed concern at the lack of clarity from the government. The Scottish Fiscal Commission has also warned of severe cuts.

Critics say the government is failing to introduce meaningful changes and is instead resorting to “gimmicks” such as a free bag of equipment for every pupil starting primary school that includes a bottle, pencil case and stationery.

There are calls to tackle the cost of doing business, some of which is the responsibiilty of Westminster policies, but which is also in the gift of Holyrood through business rates and income taxes.

Guy Hinks, the Scotland chairman of the Federation of Small Businesses, has called for Scotland’s 14 separate business rates assessors and valuation rolls to be replaced by a single body under Revenue Scotland.

Jane Wood, chief executive of industry lobby group Homes for Scotland, said the country is in its third year of a national housing emergency and “without urgent action, there is a real danger that this simply becomes the norm”.

Jane WoodJane Wood
Jane Wood: still awaiting details on new government body (pic: DB Media Services)

She added: “Whilst we have had positive engagement with government over this period, we still aren’t seeing any tangible outcomes in terms of delivery.

“A new housing agency is planned but isn’t due to be fully operational until 2028 and we are yet to learn of the detail behind it in terms of what exactly it will do or what powers it will have. In the meantime, what is the Scottish Government doing to stop the situation from worsening?”

The Scottish Trades Union Congress (STUC) renewed its calls for the council tax to be scrapped and replaced with proportionate property tax, while urging ministers to reject cuts to public services and invest in the workforce needed to deliver high-quality services, including social care.

The Scottish Retail Consortium warned that any further statutory burdens in the Programme for Government “could compound the costs crunch retailers currently face”.

Instead, retailers want an emphasis on reducing the cost of doing business alongside further action to tackle shop thefts and illicit trading.

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