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Home arrow Holyrood news arrow News categories arrow Business, Industry & Economy (HCL04) arrow CPPR reports on parties' proposed spending
CPPR reports on parties' proposed spending Print E-mail
Tuesday, 24 April 2007

There will be significant pressure on the Scottish budget in the next few years because of uncosted manifesto commitments, according to independent academic research by the Centre for Public Policy for Regions (CPPR).

The analysis compared the number of uncosted policies published by each party in its manifesto, with the Liberal Democrats having 89 uncosted policies, Labour 77 and the SNP 35. The CPPR found that the Greens have 39 uncosted commitments, while the Conservatives have fewest, with 17.

The CPPR study also provided an estimate of the money that would be available to the new Scottish Executive to spend on uncosted policies. The formula assumed a growth in the Executive’s budget of £3,377m between 2007/08 and 2010/11. Half of this, CPPR said, would be taken up by staff costs, leaving £1,689m available for spending.

If the costed spending in the manifesto is calculated, and the efficiency savings and redirected spending accounted for, and added or subtracted from the £1,689m, an indicative fund for uncosted spending is provided. The biggest potential fund is the SNP’s, at £1,821m, followed by the Conservatives at £1,650m, and the Greens at £1,348m. The Liberal Democrats have a fund of £1,163m and Labour £1,108m.

The CPPR stresses that its figures “have not made any assessment of whether the amounts allocated by each party are realistic”, and the same was true of efficiency savings, but pointed out that “in the first year of the current Scottish Executive initiative to obtain efficiency savings, these have amounted to £500m for 2004-05, but that Audit Scotland have found it difficult to confirm that these were true efficiency savings and not simply cash cuts”.

Murdo Fraser, Scottish Conservative deputy leader, said: “We received an excellent report from Professor Midwinter, and now we have yet further evidence that our sums add up, in stark contrast to the other parties.”

SNP finance spokesman John Swinney said: "This is a useful contribution to the debate. It blows a hole in Labour's attacks on the SNP's proposed efficiency savings because we now know that Labour plan savings of the same order as the SNP.

"It also makes clear that it is the Labour party which has the problems with its costings. They have far more uncosted policies and far fewer available resources to meet them.

"The SNP's proposed redirection of £1.1 billion of capital spending is fully included in our costing plans and we are the only party with such a substantial available resource to provide the much needed nationwide improvements to our road and rail infrastructure."

However, Labour's Finance Minister Tom McCabe said: "After eight years in office, nobody can question Labour's record of economic growth, and investment in public services. What a contrast to the recklessness of the SNP.

"Labour has an audited track record of success in achieving efficiencies which have been re-directed to front-line services.

"This analysis shows that the SNP have some very real questions to answer. Their spending plans will require deep cuts in health, education and justice. They now need to come clean with Scottish voters about where the cuts will fall."

Liberal Democrat finance spokesman George Lyon said: “We welcome this report, which clearly shows that our plans are prudent, affordable and deliverable. Unlike others, we can deliver our priorities within the available resources and without relying on major cuts and efficiency savings. 

“Both the SNP and Labour are relying on billions of pounds of cuts and efficiencies to fund their promises.  Our manifesto is costed and realistic and that’s been shown in the figures.”
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