The Finance Minister John Swinney has published the draft spending plans for 2009-10. This budget updates the previous spending plans for 2007 -11 to take account of changes made in the last twelve months. The consultation and parliamentary scrutiny processes are now underway with the Stage Three Debate expected in February 2009. (See P and I briefing 171)

Budget changes

The Greens and the Tories made changes to the previous budget in return for their support. This budget also requires the backing of other parties so the scrutiny process is likely to lead to more changes before the budget will get enough support. The areas that the government has highlighted are:

• An extra £4 million to support Free Personal Care as recommended by the Sutherland Review
• The change in phasing of the Affordable Housing Investment Programme
• An extra £4.3 million for the Climate Challenge Fund
• An extra £13 million in 2009-10 for extra police officers

Spending by Portfolio

Efficient Government

The Government is to continue the Efficient Government Programme. This means that the public sector is committed to delivering 2% cash releasing savings each year. In the period 2008-11, that means £1.6 million. See P & I briefing 135

Local Government

The budget assumes that local authorities will continue their commitment to freeze council tax rates pending abolition and reduced rates for small businesses. Added to savings under the efficient government strategy they expect savings from a National Procurement Centre of Expertise. As well as extra money to fund free personal care there is £2.6m for community regeneration loans charges; £1.3m for the strategic waste fund and £8.7m increase in the Fairer Scotland Fund. Local government is committed under the Concordat to a range of measures including reducing class sizes for p1 - p3 to 18, following up the free school meals pilot with appropriate expansions of free school meals and progress towards a 50% increase in pre-school education entitlements for three and four year olds. These are already proving to be difficult to implement under the current budget. (See briefing 172)

The specific health spending proposal is

The plans include increased funding for NHS and Special Health Boards by £9.4m in 2008-9 followed by £10.2m and £10.3m in the following years; a rephasing of the ehealth programme by moving £0.5m from 2008-9 to 2009-10 and a decrease of £6.2m in each of the next three years due to a reclassification of staffing costs for secondees. The key health targets are maximum waiting times target of 18 weeks from GP to consultant, tackling MRSA and Cdiff and phasing out prescription charges.

Housing and regeneration

The key housing announcement was the rephrasing of the Affordable Housing Investment Programme so the £100m previously allocated will be spent across 2008 to 10 rather than up to 2011.

Education and lifelong learning

Key education funding initiatives are £135.6m to develop a range of policies with local authorities and schools particularly around the Curriculum for Excellence; £106.3m to develop policy around improving children's services and users of social care and £1570.5m for further and higher education institutions.

Transport

In line with the amendments from 2008 budget there will be a decrease of £3m in 2008-9 in the motorways and trunk roads budget. There will be a decrease of £1m in 2008-9 followed by an increase of £1.3m in 2009-10 and 2010-11 for increased cost of capital charges for ferry services and an annual increase of £4m for bus services.

Justice

Key changes in the justice budget are an additional £10m in 2008-9 followed by £13m and £17m respectively for extra police recruitment. The ring-fenced grant to local authorities for criminal justice social work will be £86.5m per year for the next three years.

Action for branches

As the government needs the support of other parties in order to pass this draft budget, changes are likely. The impact on services will not be clear until the final budget is set and public bodies publish their detailed plans. Branches should monitor their employers' plans closely, particularly the ongoing 2% efficiency savings.

If you require further information, please contact Kay Sillars at the P&I Team in UNISON House k.sillars@unison.co.uk.

Contacts list:

Kay Sillars
k.sillars@unison.co.uk

Dave Watson
d.watson@unison.co.uk

@ The P&I Team
14 West Campbell St
Glasgow G26RX
Tel 0845 355 0845
Fax 0141-307 2572

Further info

Budget papers
www.scotland.gov.uk/Resource/Doc/238287/0065416.pdf

P&I briefing 172 Concordat
www.unison-scotland.org.uk/briefings/briefing172concordat.pdf

P&I briefing 135 Efficient Government
www.unison-scotland.org.uk/briefings/efficientgov135.html