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60,000 jobs under threat from budget squeeze

A report from the Independent Budget Review Board has refused to ring fence any public service and recommended an end to the council tax freeze.

29 July 2010 11:17 GMT

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60,000 jobs under threat from budget squeeze

Cuts: The group has also recommended the Government reduce public service employment. Pic: © STV

None of Scotland public services should be protected from the prospect of looming cuts, according to a report from a body set up to examine the country’s finances.

The Independent Budget Review Board’s paper, published on Thursday, calls for an immediate review into all free universal services, including personal care, bus travel and eye exams.

The estimates of the number of public sector jobs likely could rise to one in 10 or 60,000 jobs, although it could be fewer if action is taken.

The group also suggested the continuing freeze on council tax could be unsustainable, suggesting ministers consider whether it could be “discontinued”.

Chairman Crawford Beveridge said: "There are very difficult decisions to be made over the next few months, requiring strong leadership not just in their making but also in their subsequent implementation.

"Clearly there are significant short term challenges.

"However important decisions need to be taken about the future.

"Scotland needs to decide what form and shape of public services it desires and can afford."

The group was set up by the Scottish Government to examine where savings could be made, and its report makes a number of recommendations to ministers.

It comes against a background of financial constraint which ministers believe could leave Scotland facing a £42 billion squeeze in public spending over the next 16 years.

As Scotland faces its first real terms budgetary cut since devolution, the Government is also being urged to look at the possibility of introducing university and college tuition fees, while the Tories have called for Scottish Water to be privatised.

The group has now recommended an immediate recruitment freeze across the public sector be considered, as well as suspending the final stage of the abolition of prescription charges.

The report also calls on the Government to reduce public service employment by up to 10% by 2015.

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  1. Default avatar

    1. 01 Aug 2010 00:43Dramfineday said

    Hoi, where's that man that saved the world? What was his name again? Broon? Maybe he could save Scotland and it's workers? No, wrong again, he and his banking chums caused it so no help there then.

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