Magazine article Public Finance

Scots Plan to Save Money by Sharing

Magazine article Public Finance

Scots Plan to Save Money by Sharing

Article excerpt

Scotland could save up to £750m a year by sharing services across the public sector, Finance Minister Tom McCabe has claimed.

Launching a Scottish Executive consultation on sharing corporate support services and common business processes, he said this would play a key role in the provision of an efficient public sector.

McCabe forecast that the savings could range between £250m and £750m. 'This new shared services strategy on which we are seeking views is a central plank of our efficient government initiative, which aims to tackle bureaucracy and duplication in the public sector,' he added.

He said the plans could lead to job cuts but there would be a presumption against compulsory redundancies. 'Difficult decisions' would need to be taken on staffing.

Estimating that Scottish public sector organisations spend between 5% and 15% of their operational budgets on support services, such as IT, payroll and human resources, the Executive says this equals an annual cash spend of £1. …

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