Chamber
Meeting of the Parliament 09 March 2011
09 Mar 2011 · S3 · Meeting of the Parliament
Item of business
“Report on preventative spending”
I trust that I will not change the tone of the debate too much.
I am grateful to have the opportunity to contribute to the debate. As the first person to speak who is not part of the Finance Committee company—the pointy heads, as I like to call them—I, too, offer my best wishes to Mr Welsh. The respect for his work is shared by those outwith the Finance Committee. In a job that can be a bit like herding cats, he has managed to work with a great deal of authority.
There is a danger that debates about budget processes and so on can be either very technical or very consensual in a merely cosy way. That has not been the case in today’s debate. It would be fair to say, however, that anyone who is thinking about preventative spending will have some anxieties about some of the choices that are being made at a UK level, which place disproportionate burdens on women and, for example, make it less likely that they will be able to work and support their families, which is something that, in the long term, will have consequences for their children. That is something that people need to be aware of. We know that budgets reflect people’s political priorities and, to some extent, the challenge is to ensure that they do that. Some of the debate about preventative spending involves people who say that they support families, but are not spending money at the right stage in order to do so.
It is absolutely critical that we embrace the rationale behind a shift to preventative spending, make rational decisions about our priorities and have a greater awareness of what makes a difference. For example, a lunch club for elderly people stops bed blocking two or three years down the road, as it addresses issues of isolation and enables people to identify deterioration at an early stage. Similarly, a little bit of support for carers—enabling them to take a half-day away from their loved ones, for example—means that we can sustain the cared-for in a way that is real to their family. It is important, therefore, that in interrogating spending decisions, we have an understanding of what is effective. The issues that the committee has reflected on with regard to the early years can be applied to a range of important social policy areas.
I do not pretend to be as close to the issues as the committee members are, but I would like to highlight a few points that I hope members will find useful.
Malcolm Chisholm flagged up the connection between strategy and delivery. A key criticism that is being made is that there is insufficient connection between the framework, the strategy at a national level and what is happening on the ground. The Scottish Government has said that it does not want a top-down, prescriptive approach. Nobody would want that—that is a pejorative way of describing an anxiety that people have. However, we want there to be a connection. We want to know that strategies that are developed are delivered on the ground. There will be tough decisions about how that can be ensured and about how we can make strategies focused and consistent across the country as opposed to simply being a good read.
The Scottish Government highlights the importance of an outcomes-based approach and John Swinney reiterated that in his speech, commending the concordat and the community planning partnerships in that regard. However, the key issue is not to outline an outcomes-based approach, but to ensure that it is happening on the ground. The reality is that, in the past four years, we have had one brief overview of how single outcome agreements are progressing and we are still waiting for any detailed analysis of their progress.
We are aware of the frustration of voluntary organisations in particular, which say that they have to pick their way through single outcome agreements to identify the spend. The minister knows of my on-going concern that there is no equality impact assessment of single outcome agreements, which means that they do not reflect the rigour that we require. It is not sufficient to assert that something is working if there is no evidence in that regard, and I hope that the minister will take that on board.
In recognising the importance of preventative spending, I have a concern that the policy is not being applied in the Scottish Government. One example of that, although it is not in the Finance Committee’s reflections, is the decision to cut the housing association grant by at least a third. That will possibly stall developments and prevent future developments, but critically—and most worryingly—it reveals a lack of understanding about the central effectiveness of the community-controlled housing and co-operative movement. Providing sufficient funding to build, maintain and repair good houses is part of a wider action that allows those communities to be sustained. That has worked, and short-termism in the funding of housing will have longer-term consequences for the very families that we want to help.
There is also the key issue of making the transition in approach from reactive to preventative spending. I am concerned that people sell the idea of doing things differently because it is cheaper. They say, “You can spend a little early, and save money later”, and then force change by quantifying possible savings and applying that as a cut. We know that that is a worry in some places with regard to social care spending.
I think that we all agree on the importance of evidence-based spending and we must be alive to early spend-to-save. That is reflected in the argument about targeted versus universal spending, and I agree with the Scottish Government’s response on that. For example, Home-Start runs an early intervention programme for vulnerable mothers in my constituency that helps them to keep their children and prevents those children from being taken into care. It is not necessary for most mums, for whom health visitor support would be sufficient, so it is a good example of targeted spending working well.
Equally, the provision of nurture classes in our schools by definition recognises that some children are vulnerable and at a disadvantage. We ought to consider the built-in advantage that some families have, which must be addressed by providing support to those children. It would be nonsense to provide such support for all children, but it is critical in closing the gap in advantage that is experienced by some children.
We need to reflect on how those choices are now being made. We know about the key role of the voluntary sector in understanding preventative activity and we know what we can do early to stop crisis later on. However, we also know that in tough times the danger is that those who make the choices see that little bit of spending as a luxury.
I commend the report and I hope that my comments add to it. In terms of preventative spending, the key issue will be how we shift from the reactive to the preventative without leaving a gap in provision.
15:43
I am grateful to have the opportunity to contribute to the debate. As the first person to speak who is not part of the Finance Committee company—the pointy heads, as I like to call them—I, too, offer my best wishes to Mr Welsh. The respect for his work is shared by those outwith the Finance Committee. In a job that can be a bit like herding cats, he has managed to work with a great deal of authority.
There is a danger that debates about budget processes and so on can be either very technical or very consensual in a merely cosy way. That has not been the case in today’s debate. It would be fair to say, however, that anyone who is thinking about preventative spending will have some anxieties about some of the choices that are being made at a UK level, which place disproportionate burdens on women and, for example, make it less likely that they will be able to work and support their families, which is something that, in the long term, will have consequences for their children. That is something that people need to be aware of. We know that budgets reflect people’s political priorities and, to some extent, the challenge is to ensure that they do that. Some of the debate about preventative spending involves people who say that they support families, but are not spending money at the right stage in order to do so.
It is absolutely critical that we embrace the rationale behind a shift to preventative spending, make rational decisions about our priorities and have a greater awareness of what makes a difference. For example, a lunch club for elderly people stops bed blocking two or three years down the road, as it addresses issues of isolation and enables people to identify deterioration at an early stage. Similarly, a little bit of support for carers—enabling them to take a half-day away from their loved ones, for example—means that we can sustain the cared-for in a way that is real to their family. It is important, therefore, that in interrogating spending decisions, we have an understanding of what is effective. The issues that the committee has reflected on with regard to the early years can be applied to a range of important social policy areas.
I do not pretend to be as close to the issues as the committee members are, but I would like to highlight a few points that I hope members will find useful.
Malcolm Chisholm flagged up the connection between strategy and delivery. A key criticism that is being made is that there is insufficient connection between the framework, the strategy at a national level and what is happening on the ground. The Scottish Government has said that it does not want a top-down, prescriptive approach. Nobody would want that—that is a pejorative way of describing an anxiety that people have. However, we want there to be a connection. We want to know that strategies that are developed are delivered on the ground. There will be tough decisions about how that can be ensured and about how we can make strategies focused and consistent across the country as opposed to simply being a good read.
The Scottish Government highlights the importance of an outcomes-based approach and John Swinney reiterated that in his speech, commending the concordat and the community planning partnerships in that regard. However, the key issue is not to outline an outcomes-based approach, but to ensure that it is happening on the ground. The reality is that, in the past four years, we have had one brief overview of how single outcome agreements are progressing and we are still waiting for any detailed analysis of their progress.
We are aware of the frustration of voluntary organisations in particular, which say that they have to pick their way through single outcome agreements to identify the spend. The minister knows of my on-going concern that there is no equality impact assessment of single outcome agreements, which means that they do not reflect the rigour that we require. It is not sufficient to assert that something is working if there is no evidence in that regard, and I hope that the minister will take that on board.
In recognising the importance of preventative spending, I have a concern that the policy is not being applied in the Scottish Government. One example of that, although it is not in the Finance Committee’s reflections, is the decision to cut the housing association grant by at least a third. That will possibly stall developments and prevent future developments, but critically—and most worryingly—it reveals a lack of understanding about the central effectiveness of the community-controlled housing and co-operative movement. Providing sufficient funding to build, maintain and repair good houses is part of a wider action that allows those communities to be sustained. That has worked, and short-termism in the funding of housing will have longer-term consequences for the very families that we want to help.
There is also the key issue of making the transition in approach from reactive to preventative spending. I am concerned that people sell the idea of doing things differently because it is cheaper. They say, “You can spend a little early, and save money later”, and then force change by quantifying possible savings and applying that as a cut. We know that that is a worry in some places with regard to social care spending.
I think that we all agree on the importance of evidence-based spending and we must be alive to early spend-to-save. That is reflected in the argument about targeted versus universal spending, and I agree with the Scottish Government’s response on that. For example, Home-Start runs an early intervention programme for vulnerable mothers in my constituency that helps them to keep their children and prevents those children from being taken into care. It is not necessary for most mums, for whom health visitor support would be sufficient, so it is a good example of targeted spending working well.
Equally, the provision of nurture classes in our schools by definition recognises that some children are vulnerable and at a disadvantage. We ought to consider the built-in advantage that some families have, which must be addressed by providing support to those children. It would be nonsense to provide such support for all children, but it is critical in closing the gap in advantage that is experienced by some children.
We need to reflect on how those choices are now being made. We know about the key role of the voluntary sector in understanding preventative activity and we know what we can do early to stop crisis later on. However, we also know that in tough times the danger is that those who make the choices see that little bit of spending as a luxury.
I commend the report and I hope that my comments add to it. In terms of preventative spending, the key issue will be how we shift from the reactive to the preventative without leaving a gap in provision.
15:43
In the same item of business
The Deputy Presiding Officer (Alasdair Morgan)
SNP
The next item of business is a debate on motion S3M-7994, in the name of Andrew Welsh, on the Finance Committee’s “Report on preventative spending”. I call A...
Andrew Welsh (Angus) (SNP)
SNP
This will be one of the last speeches that I will make as an MSP, and it is my final scheduled contribution as convener of the Parliament’s Finance Committee...
Elaine Smith (Coatbridge and Chryston) (Lab)
Lab
I know that the debate is supposed to be consensual, but will Andrew Welsh comment on the abolition of the health in pregnancy grant?
Andrew Welsh
SNP
Such questions are better posed elsewhere. I am relaying to Parliament a positive report, rather than the usual negativity that is produced in debates. I say...
The Cabinet Secretary for Finance and Sustainable Growth (John Swinney)
SNP
Mr Welsh said that this was his last scheduled appearance in a parliamentary debate as convener of the Finance Committee. As finance secretary, I am always a...
Jeremy Purvis (Tweeddale, Ettrick and Lauderdale) (LD)
LD
I heartily endorse the cabinet secretary’s comments, but does he recognise that the committee found it difficult to establish what baseline information on ou...
John Swinney
SNP
Mr Purvis goes on to fascinating and complex ground in all of these areas. With Scotland performs, we have tried to identify a set of indicators that will pr...
David Whitton (Strathkelvin and Bearsden) (Lab)
Lab
I am pleased to speak for Labour in support of the Finance Committee’s report. I associate myself with the remarks of the cabinet secretary on our convener, ...
Derek Brownlee (South of Scotland) (Con)
Con
I thank the committee clerks, and the witnesses who gave evidence to the inquiry. I also thank Andrew Welsh for his time as convener of the Finance Committee...
Jeremy Purvis (Tweeddale, Ettrick and Lauderdale) (LD)
LD
This is an important debate, which is why I am particularly sorry that I will have to leave before the end of it, as I have a meeting regarding my constituen...
Linda Fabiani (Central Scotland) (SNP)
SNP
As a member of the Finance Committee, I, too, was very pleased to take evidence in the inquiry into preventative spend and to help to compile the report.Ther...
Malcolm Chisholm (Edinburgh North and Leith) (Lab)
Lab
I start by paying tribute to Andrew Welsh for chairing the Finance Committee in a model, non-partisan way for the past four years, and for the contribution t...
Joe FitzPatrick (Dundee West) (SNP)
SNP
I associate myself with the words of tribute for our convener, Andrew Welsh. As Malcolm Chisholm said, Andrew has always convened the finance committee in an...
Johann Lamont (Glasgow Pollok) (Lab)
Lab
I trust that I will not change the tone of the debate too much.I am grateful to have the opportunity to contribute to the debate. As the first person to spea...
Margaret Smith (Edinburgh West) (LD)
LD
As a non-member of the Finance Committee, I thank Andrew Welsh for his contribution to the Parliament, and the committee for its very useful report.The commi...
Jamie Hepburn (Central Scotland) (SNP)
SNP
I congratulate the committee on its work on this report. I am not on the committee and have not been intimately involved in the process, but even a rudimenta...
Linda Fabiani
SNP
Not that many.
Jamie Hepburn
SNP
It seems plenty to me. I also gently point out that Mr Welsh had represented Angus for five years before I was born, although I am not sure whether he will t...
Elaine Smith (Coatbridge and Chryston) (Lab)
Lab
I do not often get excited by the work of the Finance Committee, important though it is. However, its report on preventative spending is excellent, and I com...
Ross Finnie (West of Scotland) (LD)
LD
The debate has been interesting and, by and large, consensual. Like several members who have spoken, but not the majority, I do not serve on the Finance Comm...
Derek Brownlee
Con
Ross Finnie raised an important point about the outcome basis. Although there has been a shift in rhetoric in Parliament about moving towards an outcome basi...
Andy Kerr (East Kilbride) (Lab)
Lab
I place on record my thanks to Andrew Welsh for his contribution to the Parliament and its workings. I also thank the Finance Committee for its report.Having...
John Swinney
SNP
It is not often that I can follow Mr Kerr in a debate and agree heartily with many of the sentiments that he has expressed. I particularly agree with his sta...
Tom McCabe (Hamilton South) (Lab)
Lab
As others have done, I acknowledge Andrew Welsh’s service. I will not repeat all the plaudits. I simply say to him that he should be proud of his public serv...