Latest news with #IvanMcKee
Daily Mail
14 hours ago
- Business
- Daily Mail
A £1bn bonfire of SNP quangos and bloated public sector? Don't hold your breath!
Quangos will be merged and jobs axed under SNP proposals to strip £1 billion a year of costs from Scotland's 'bloated' public sector. In a blueprint described as 'word soup' by unions and opposition politicians, measures considered will include cutting spending by a fifth on the 'corporate functions' or backroom costs of the Scottish Government and other public bodies over the next 10 years. Public Finance Minister Ivan McKee said it included proposals to 'remove, amalgamate or change' the number of public bodies, as well as sharing backroom services between different organisations. New guidance on redeployment and severance policies for public sector bodies will also be introduced, while there will be a greater shift towards digital services and communications. Opponents dismissed the proposals as a 'wish list' and condemned the lack of details about where the savings would be made and which quangos will be asked. Scottish Conservative finance spokesman Craig Hoy said: 'After much hype, the SNP government has produced a 49-page wish-list of word soup that fails to mention waste once. 'It begs the question as to why the SNP have not thought to make these savings at any point over their 18 years in power while they have been wasting taxpayers' money on a colossal scale. 'There is still an astonishing lack of detail as to where these savings will be made, or what quangos will be axed. The public simply will not trust the SNP to suddenly tackle the enormous waste they have presided over.' McKee said: 'Through the tools at our disposal, the efficiency workstreams in our strategy will reduce identified costs on Scottish Government and public body spend on corporate functions by 20 per cent over the next five years, and that equates to an annualised £1 billion cost reduction by 2029-30. 'This will require every part of the public sector to reduce the cost of doing business to prioritise the front line. All public bodies are already required to deliver best value, but this is about going further and faster. It is about taking all available opportunities to introduce and embed efficiency through automation, digitisation, estate rationalisation, and changing the delivery landscape. 'This is about delivering significant change - including structural reform in government and for public bodies, where that is needed.' He said there needs to be 'better joined-up services' and the public sector needs to be 'ready to reshape our workforce', and added: 'Everyone recognises that things must change, but that creates challenges, as well as opportunities, for employees. 'So we will work with partners, staff and trade unions to ensure we have the right number of people in the right roles to deliver real and meaningful change, and that staff very importantly are empowered to make services better.' During his speech, he also admitted that 'despite increased investment, public satisfaction with services has fallen'. The document published yesterday set out 18 different 'workstreams' where reforms can be introduced, as well as some specific proposals. Most of the measures still lack full details or costings and will continue to be worked on by officials. One proposal is to 'remove, amalgamate or change the number of public bodies where doing so will increase efficiency, remove duplication and improve service delivery', as well as to 'identify duplication across public bodies and work with those bodies to share processes/services'. Other plans propose to share services between different bodies, while the document also promises to consider new 'ways of working' for staff. It proposes 'a collective approach to recruitment, promotion and performance management' across public bodies, and a review of reporting and scrutiny requirements. It also promises a shift towards digital services, with 25 per cent of all Scottish Government, agency and quango correspondence by digital means by 2030, which it said would save £100 million a year. A pilot of a Scottish Government app as 'a gateway to personalised public services' is also proposed for this financial year, with the first use expected to be for 'proof of age'. Data on corporate function costs will be collected and published on all public bodies to 'drive efficiencies' and remove duplication, while new financial targets will be set for operating and staff costs. The plan also talks about 'promote best practice guidance for workforce change', including the approach to redeployment and severance policy. The Scottish Government will also 'further develop our shared services thinking and propositions across a range of services'. Trade union leaders hit out at 'illogical' cuts to staffing at a time of growing pressure on services. STUC General Secretary Roz Foyer said: 'Whenever government ministers speak of public sector 'efficiencies', workers anxiously hold their breath. 'These cuts, prepacked as reforms, miss the mark entirely. Simply put: you can't fix public services by cutting the very people who keep them running. 'Talk of reducing headcount while NHS waiting times spiral, A&E departments are overwhelmed and social care is in crisis is as reckless as it is illogical.' As Mr McKee unveiled the proposals, fiscal experts demanded a full roadmap to public sector reform. At an event hosted by the Institute of Chartered Accountants of Scotland, Stephen Boyle, Auditor General for Scotland, said: 'The Fiscal Commission and others are pointing out that we have a significant gap in the way we spend public money compared to the money that we're receiving, so there are difficult choices coming our way as a country.'
Telegraph
17 hours ago
- Business
- Telegraph
SNP plans to cut £1bn from Scotland's huge public sector
The SNP has unveiled pans to cut £1 billion from Scotland's huge public sector after admitting there was 'unnecessary duplication' in the system. Ivan McKee, the public finance minister, said state spending on 'corporate functions' would be cut by 20 per cent over the next five years. In a statement at Holyrood, he admitted that 'public satisfaction with services has fallen' in Scotland despite record funding from Westminster and higher taxes. Mr McKee unveiled a 49-page 'reform strategy' that said there was 'unnecessary and unhelpful duplication in the system, including multiple providers of similar services'. It pledged to 'remove, amalgamate or change the number of public bodies where doing so will increase efficiency, remove duplication and improve service delivery'. However, the blueprint did not state which Scottish government agencies or quangos would face cuts, or the number of civil service jobs that would go. The Scottish Tories said he had produced a 'wish list of word soup that fails to mention waste once' and attacked the 'astonishing lack of detail'. Craig Hoy, their shadow finance secretary, said: 'It begs the question as to why the SNP have not thought to make these savings at any point over their 18 years in power while they have been wasting taxpayers' money on a colossal scale.' Around 600,000 people are employed in Scotland's public sector, making up 22 per cent of the total workforce, compared to about 18 per cent in the UK as a whole. They are also paid £1,500 on average per year more north of the Border. The public sector pay bill has also swollen to £25 billion, more than half the SNP Government's money for day-to-day spending on public services. Earlier this year, Scotland's Information Commissioner said he was 'astonished' at the 'sheer number of public bodies' in Scotland. David Hamilton said there were thousands 'and I keep finding new ones'. He also disclosed that he played 'public authority bingo' with the auditor general, where they ask: 'Have you heard of this one? Have you heard of that one?' about quangos. Mr McKee told MSPs that the £1 billion cost cuts by 2029-30 'will require every part of the public sector to reduce the cost of doing business to prioritise the front line'. He said: 'All public bodies are already required to deliver best value, but this is about going further, and faster. 'It is about taking all available opportunities to introduce and embed efficiency through automation, digitisation, estate rationalisation, and changing the delivery landscape.' Pressed by Mr Hoy to specify what cuts would be made, he said: 'Just swinging a big axe isn't going to deliver services. We've seen that across the Atlantic, where Elon Musk, who's no longer with the Trump administration precisely because he went in with a big axe and started cutting stuff and it immediately backfired because he didn't know what he was doing.' Mr Hoy said: 'There is still an astonishing lack of detail as to where these savings will be made, or what quangos will be axed. 'The public simply will not trust the SNP to suddenly tackle the enormous waste they have presided over.' The strategy promised to save 'hundreds of millions' of pounds with 'efficiencies' over the next five years and to cut duplication by 'better joining up services.' It also committed to a greater focus on 'prevention' to 'avoid spending billions trying to address economic and social problems caused by issues like poor health'. But Roz Foyer, general secretary of the STUC, said: 'Whenever government ministers speak of public sector 'efficiencies', workers anxiously hold their breath. 'These cuts, pre-packed as reforms, miss the mark entirely. Simply put: you can't fix public services by cutting the very people who keep them running.'
STV News
18 hours ago
- Business
- STV News
Minister announces £1bn in savings to be redirected to frontline services
The Scottish Government has launched a brand new public service reform strategy to make £1bn of savings in the next five years. Ivan McKee set out a range of reforms to Scotland's public sector on Thursday as he aims to make it efficient and fit for the future. He said spending from 'back office costs' will be cut by 20%, with the cash being redirected to frontline services. By 2029-30, the Government estimates this will amount to £1bn a year in savings, freeing up cash in areas such as the NHS. 'This will require every part of the public sector to reduce the cost of doing business to prioritise the frontline,' McKee said. 'The aim is to do things better, not do less.' McKee said the Scottish Government will achieve the savings through a combination of automation, digitisation, estate rationalisation, and workforce reform. Among the 80 actions set out in Mr McKee's reforms include changes to the culture of the public sector and those in charge of it. The number of public bodies will be reduced to drive a more efficient system alongside a new review of public sector buildings. The minister said the Government will embrace automation and new technology to digitise government. The Scottish Trades Union Congress (STUC) criticised the strategy of 'missing the mark'. 'Whenever government ministers speak of public sector 'efficiencies', workers anxiously hold their breath,' said STUC general secretary Roz Foyer. 'These cuts, prepacked as reforms, miss the mark entirely. Simply put: you can't fix public services by cutting the very people who keep them running. Talk of reducing headcount while NHS waiting times spiral, A&E departments are overwhelmed and social care is in crisis is as reckless as it is illogical.' She said Scotland deserves public services that are properly funded, and 'not an overreliance on technology to plug staffing shortages'. 'The reality is that Scotland's fiscal future demands honesty and ambition. Instead of chasing cuts disguised as reform, ministers should be adopting progressive tax policies that can raise the revenue we need,' Ms Foyer said. 'Before racing ahead with changes, the Scottish Government must engage in serious dialogue with the trade union movement. We've been clear: we will not support any programme that threatens jobs, conditions or the quality of the services our communities rely on. That position remains the same.' The Tory shadow secretary for finance slammed the reforms as a 'wish-list of word soup that fails to mention waste once'. 'Despite the SNP saying we were reckless for proposing fully costed tax cuts worth £500m, they now claim they can save £1bn by merely slashing corporate functions,' MSP Craig Hoy said. 'There is still an astonishing lack of detail as to where these savings will be made, or what quangos will be axed. The public simply will not trust the SNP to suddenly tackle the enormous waste they have presided over.' Daniel Johnson, Scottish Labour's finance spokesman, said he welcomed the 'overall sentiment' but feared it amounted to 'a plan for a plan'. He said Thursday's statement was 'an acknowledgement that we have a billion pounds worth of waste'. He added: 'Reform, to my mind, is not about shrinking the state, but maximising its effectiveness and you cannot ignore the fact that over the past decade, the civil service has grown at three times the rate of the NHS, while police, fire and colleges' headcounts have all fallen.' Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
The National
20 hours ago
- Business
- The National
Scottish Government's £1bn public service reforms branded 'reckless'
Public finance minister Ivan McKee has led a drive to cut waste, resulting in the publication of a 49-page document on Thursday. The plans would reportedly save £1 billion annually over the next five years. The report does not explicitly say what parts of the state will be cut, or the number of jobs likely to be lost in the civil service as a result of the changes. However, it pledges to make public services more efficient and work better together, along with a greater emphasis on prevention. READ MORE: Holyrood governing body defends 'unfair' trans toilet ban The Scottish Trade Union Congress (STUC) criticised the plans and said 'you can't fix public services by cutting the very people who keep them running'. Ministers can 'remove, amalgamate or change the number of public bodies where doing so will increase efficiency, remove duplication and improve service delivery', the document said. Addressing MSPs, McKee said the Scottish Government recognised that, despite increased spending on public services, satisfaction with them has fallen. 'We must rapidly increase the scale and pace of reform, building on the strong foundations we have in Scotland – our shared vision and shared values,' he said. 'We need to intervene earlier to prevent expensive crisis interventions later. 'This strategy sets out a bold, system-wide approach to changing how we think and how we behave across the public service system. It maximises impact across the whole system, not just in individual organisations.' He added: 'Through the tools at our disposal, the efficiency workstreams in our strategy will reduce identified costs on Scottish Government and public body spend on corporate functions by 20 per cent over the next five years, which equates to an annualised £1bn cost reduction by 2029-30. 'This will require every part of the public sector to reduce the cost of doing business to prioritise the front line. 'All public bodies are already required to deliver best value, but this is about going further, and faster. It is about taking all available opportunities to introduce and embed efficiency through automation, digitisation, estate rationalisation, and changing the delivery landscape.' Earlier this week, First Minister John Swinney said it was 'inevitable' that the number of civil servants would reduce, a sentiment the minister did not shy away from, saying reductions in the workforce would 'continue' in the coming years. READ MORE: John Swinney tears into 'weak man' Anas Sarwar at FMQs McKee insisted that public sector staff are 'key partners' and ministers can't deliver change without them. STUC general secretary Roz Foyer said that the announcement was 'cuts repackaged as reforms' and 'miss the mark entirely'. 'Talk of reducing headcount while NHS waiting times spiral, A&E departments are overwhelmed and social care is in crisis is as reckless as it is illogical,' she said. 'Scotland deserves public services that are properly funded. 'That requires investment in people, not an overreliance on technology to plug staffing shortages. (Image: free) 'We are not opposed to changes in our public sector structures but genuine reform means learning from the Christie Commission and the brutal lessons of the pandemic — not repeating past mistakes by stretching workers past breaking point.' Foyer argued that Scottish ministers should be adopting progressive taxation policies to raise revenue rather than push forward with cuts. 'Before racing ahead with changes, the Scottish Government must engage in serious dialogue with the trade union movement,' she added. 'We've been clear: we will not support any programme that threatens jobs, conditions or the quality of the services our communities rely on. That position remains the same.' Scottish Tory finance spokesman Craig Hoy attacked the announcement as 'word soup'. READ MORE: In the Holyrood chamber, Hoy pushed McKee on what tangible actions will be taken, as he urged the Government to 'start swinging the axe'. Responding, the minister said: 'I think it's important to understand that if you're serious about making real change and having delivered transformation programmes in the private sector and elsewhere, you need to understand the drivers that are causing barriers to prevent you doing that. 'Just swinging a big axe isn't going to deliver services, we've seen that across the Atlantic, where Elon Musk, who's no longer with the Trump administration precisely because he went in with a big axe and started cutting stuff and it immediately backfired because he didn't know what he was doing.'
The Herald Scotland
a day ago
- Business
- The Herald Scotland
Scottish Government faces union warning over spending measures
Public finance minister Ivan McKee will this afternoon (Thursday) unveil details of the crackdown which aims to reduce "wasteful" spending by the state amid major financial pressures. It is understood the proposals will increase the amount of cash saved over the following five years so that by 2029/30 the government will be saving by up to £1 billion annually on backroom operations. The strategy is expected to set out how substantial savings can be made through collaborative working across organisations focusing on reducing demand for services such as the NHS through preventation such as policies to reduce diseases and social harms caused by poverty. READ MORE: But the government's proposals will also seek to reduce waste through more efficient procurement, cutting the cost of managing estates and buildings, the removal of duplication and the enhanced use of automation while aiming to improve the delivery of frontline services such as health and education. A major review of civil service is not being ruled out with the Scottish Government's 55 directorates potentially facing a restructure and a reduction in their number. It is expected that the cash-saving proposals will highlight too a possible need to "consolidate" Scotland's 130 quangos with cost-cutting mergers between bodies potentially being undertaken. However, in comments which could raise the prospect of future battles between trade unions and public sector employers, Ms Foyer warned: "You can't fix public services by cutting the people who deliver them." STUC general secretary Roz Foyer (Image: Newsquest) She told The Herald: 'It's illogical to talk about reducing headcount while NHS waiting times, A&E delays and social care backlogs are at crisis levels all while local government is all but being cleared out. 'Scotland deserves high-quality public services that are fully funded, resilient and responsive. That means investing in the workforce, not undermining it. We aren't against reform, far from it." She went on to say that while there was much public debate around artificial intelligence (AI) and technological change, "an ageing population will require greater investment in services delivered by people, not machines". Public finance minister Ivan McKee (Image: Scottish Government) First Minister John Swinney discussed the thinking behind the strategy when he addressed public sector leaders in Glasgow on Monday telling his audience the sector will shrink as services look to innovations like AI and his government plans to embark on a 'renewal' of public services by harnessing new technologies. Mr Swinney also noted the findings of the Commission on the Future Delivery of Public Services in Scotland, chaired by Dr Campbell Christie in 2011, which had been tasked with examining the long-term challenges facing public services—including budget pressures, demographic change, rising demand and persistent inequalities. The Commission's report called for community-driven, preventative and collaborative approaches to address systemic challenges. Key recommendations included prioritising prevention to reduce long-term costs, enhancing performance through technology, and closer working across sectors. And in his speech on Monday, Mr Swinney referred to the creation of Police Scotland, where the country's eight police forces were amalgamated into one organisation, as one of the "key successes" from the Christie report noting the restructure had "led to over £200m in savings". But Ms Foyer told The Herald workers had paid a price to previous public sector changes. "Ministers must learn from the Christie Commission and the harsh lessons of the pandemic, whereby workers were thrown to the wolves, because of under-resourced services," she said. 'Before charging ahead, the Scottish Government must engage meaningfully with trade unions. We have made it clear to ministers that we will not support any plan that puts public services or public service workers at risk. "Politicians across the political spectrum need to face up to the fact that total tax revenues will have to rise in the coming years. The real question the Scottish Government and others are ducking is how they will do that fairly, using Scotland's devolved tax powers, to support our public sector workers. Mr McKee's strategy comes a week ahead of the Scottish Government's publication of its medium term fiscal strategy and follows warnings of a challenging financial landscape for the administration. In its latest five-year outlook last month the fiscal watchdog, the Scottish Fiscal Commission, forecast that the country's public finances will come under increasing strain over the next five years, due to rising welfare costs, sluggish economic growth and an £851 million income tax black hole. Public Finance Minister Ivan McKee pledged that Scotland's approach to public service reform will help deliver the fairer future that people in Scotland want. Mr McKee said: 'The strategy for public service reform that I have developed and will present to Parliament is all about doing things better, not doing less. It will enable Scotland to lead our own agenda on reform, not follow that of others. 'One of this government's key priorities is to improve public services. 'We are clear that everyone in Scotland should have access to services that are efficient, good quality and effective. We are also clear that this is about putting more funding into frontline services and investing in and empowering public service workers to deliver what people need. 'A key aim will be to identify systemic barriers that have prevented progress and to shift where and how investments are made, to take a more preventative approach – optimising the impact of our funding, making services more sustainable in the long term and making a real difference to people's lives.'
