THE Scottish Government has urged cross-party support for public sector cuts targeting “inefficiency.”
The Government intends to reduce spending across public bodies by £1 billion across five years, as laid out in the public service reform strategy launched in June last year by Ivan McKee, then public finance minister.
As Public Service Reform Secretary, McKee will call for the Scottish Parliament to support the Scottish Government’s approach to “rewire” the public sector. He will say that making public services more "efficient" is the key to ensuring services remain "sustainable" for future generations.
According to analysis from the Public Service Reform Strategy, reducing overall poverty by a quarter by 2030 could save £2.9bn of public spending.
McKee will say that hundreds of millions of pounds of savings have already been made through measures such as smarter procurement, digital transformation and collaborative working.
However, public sector trade union Unison have expressed concern over “contradictions” in the strategy, as plans rely on centralisation of decisions and systems whilst also claiming to empower local staff and leaders.
They have also expressed concern over the shift from public to third sector and automation, which effectively outsources decisions to software designers.
Following Holyrood elections in May, Unison Scottish secretary Lilian Macer urged the new government to make public services a priority.
She said: “We look forward to working with MSPs who want to build a better, more inclusive and compassionate Scotland. That starts by repairing the country’s public services.
“The people have spoken and now expect those who hold power to deliver for them. Public services were at the heart of the election debates because they matter to families.
“It’ll be incumbent on the new government to invest in them properly, protect public service jobs and improve the lives of those who depend on them.”
Ahead of Thursday’s debate, McKee said: “Efficiencies isn’t shorthand for cuts to the frontline, quite the opposite. It’s about tackling unnecessary duplication, sharing services across organisations and making better use of data, digital tools and our public estate.
“No-one who uses, or works in, public services would argue they are perfect. No-one wants to spend more money on corporate costs than is necessary when we can instead target investment to improve frontline delivery and work to stop problems before they start, not just respond when they reach crisis point."
McKee added: “Poverty, poor health and inequality are not inevitable, they are challenges we can address earlier and more effectively with better outcomes for people.
“Empowering staff, service users and local communities to help rewire the design and delivery of services is key as every pound saved from inefficiency is a pound we can invest in care, education and communities.
“People working on the frontline will know all too well where improvements can be made and we must ensure their voices are heard.”
Spending on public services per person in Scotland was estimated at £89bn total in 2024-25, 18.5% higher per person than in England, according to a March report from the Institute for Fiscal Studies.
This varies across different areas of public service spending, with Scottish per person spending on recreation, culture and religion 87% higher, though this is an overall smaller area of spending. In contrast, health, the largest area of public spending, is just 2% higher.
