Chamber
Plenary, 10 Feb 2000
10 Feb 2000 · S1 · Plenary
Item of business
Budget (Scotland) Bill: Stage 3
It is most unlike me, but I wish for once to be parochial. Last Thursday, I sat in on the meeting between the minister and Perth and Kinross Council on its budget difficulties. Mr Raffan, who has left the chamber, was there, too. I am not trying to pre-empt the local government settlement debate, but I feel that what I will say is relevant to the budget debate.
I would like to highlight the concerns of my local council, which are reflected across Scotland. I will do so to illustrate the impact of the Executive's agenda on people in our towns and villages. Perth and Kinross Council is one of the most efficient in
Scotland. It has developed innovative solutions to service provision, which are bringing positive financial benefits. However, those benefits will be fully realised only in the longer term. The council is also fully committed to the principle of best value, and it is delivering the class sizes that the minister mentions. We should acknowledge that its expenditure on service delivery per head is the eighth lowest in Scotland, and further acknowledge that only East Renfrewshire Council and City of Edinburgh Council have fewer staff per head of population. Its council tax levels are among the lowest in Scotland, with increases in council tax in Perth and Kinross of 8 per cent over the past three years compared with a Scottish average of 26 per cent.
The council faces difficult decisions, because of population growth both among the elderly and among what have been described as breeding pairs. Of the schools in Perth and Kinross, 90 per cent are nearing full capacity.
The council's provisional revenue budget is estimated to be £12 million in excess of the expenditure guidelines. In building up the budget, the council believes that it has accurately and honestly reflected the true cost of delivering the same level of service to the citizens of Perth and Kinross as it did in 1999-2000.
The council has identified approximately £8.3 million of savings measures. Those savings represent demanding steps that the council will be forced to adopt in meeting the budget deficit. That is relevant to the debate, because it highlights the impact on the citizens of Scotland of the cuts that are being imposed.
Among the savings are a 10 per cent reduction in school supplies; a reduced budget for behavioural support; a cut of one third in the budget for visiting specialists—for example, music, physical education and art teachers; a reduced budget for roads maintenance; a reduction in the operating budget for residential homes and other social work facilities; a reduction in the budget for the maintenance of playgrounds; a reduced provision for clothing grants; and a reduction in the budget for street sweeping. Other measures include the introduction of a £2-a-week charge for the community alarm service; increased charges for home care; increased senior citizens' fares from a quarter to a half; and an introduction of charges for child health services. Finally, the council will cease all high school bursaries, cease all pre-school home visiting, and freeze the Perthshire Tourist Board grant.
I know that the minister will respond in due course, and I am happy to let him do that. I wanted merely to point out that if that efficient and well-run council can find savings and can collect its arrears in council tax—and I believe that that collection is
running at about 94 per cent—there is no reason why every other council in Scotland should not do the same.
I want to put on record the pressures placed on even the most efficient of councils by the Executive's actions. I know that hard decisions have to be made, and we supported the minister when he said that the pot was only so big. But let us have some flexibility in local government settlements, and let us ease the burdens on local councils and local people.
I would like to highlight the concerns of my local council, which are reflected across Scotland. I will do so to illustrate the impact of the Executive's agenda on people in our towns and villages. Perth and Kinross Council is one of the most efficient in
Scotland. It has developed innovative solutions to service provision, which are bringing positive financial benefits. However, those benefits will be fully realised only in the longer term. The council is also fully committed to the principle of best value, and it is delivering the class sizes that the minister mentions. We should acknowledge that its expenditure on service delivery per head is the eighth lowest in Scotland, and further acknowledge that only East Renfrewshire Council and City of Edinburgh Council have fewer staff per head of population. Its council tax levels are among the lowest in Scotland, with increases in council tax in Perth and Kinross of 8 per cent over the past three years compared with a Scottish average of 26 per cent.
The council faces difficult decisions, because of population growth both among the elderly and among what have been described as breeding pairs. Of the schools in Perth and Kinross, 90 per cent are nearing full capacity.
The council's provisional revenue budget is estimated to be £12 million in excess of the expenditure guidelines. In building up the budget, the council believes that it has accurately and honestly reflected the true cost of delivering the same level of service to the citizens of Perth and Kinross as it did in 1999-2000.
The council has identified approximately £8.3 million of savings measures. Those savings represent demanding steps that the council will be forced to adopt in meeting the budget deficit. That is relevant to the debate, because it highlights the impact on the citizens of Scotland of the cuts that are being imposed.
Among the savings are a 10 per cent reduction in school supplies; a reduced budget for behavioural support; a cut of one third in the budget for visiting specialists—for example, music, physical education and art teachers; a reduced budget for roads maintenance; a reduction in the operating budget for residential homes and other social work facilities; a reduction in the budget for the maintenance of playgrounds; a reduced provision for clothing grants; and a reduction in the budget for street sweeping. Other measures include the introduction of a £2-a-week charge for the community alarm service; increased charges for home care; increased senior citizens' fares from a quarter to a half; and an introduction of charges for child health services. Finally, the council will cease all high school bursaries, cease all pre-school home visiting, and freeze the Perthshire Tourist Board grant.
I know that the minister will respond in due course, and I am happy to let him do that. I wanted merely to point out that if that efficient and well-run council can find savings and can collect its arrears in council tax—and I believe that that collection is
running at about 94 per cent—there is no reason why every other council in Scotland should not do the same.
I want to put on record the pressures placed on even the most efficient of councils by the Executive's actions. I know that hard decisions have to be made, and we supported the minister when he said that the pot was only so big. But let us have some flexibility in local government settlements, and let us ease the burdens on local councils and local people.
In the same item of business
The Presiding Officer (Sir David Steel):
NPA
We now move to the debate on motion S1M-498 on stage 3 of the budget bill.
The Minister for Finance (Mr Jack McConnell):
Lab
I am glad to be able to present to the chamber today this new Parliament's first ever budget bill. For the first time, this Executive and this Parliament hav...
Andrew Wilson (Central Scotland) (SNP):
SNP
I am grateful to the minister for giving way. On the equality of the market within the UK, does the minister recognise the concerns among the Scottish busine...
Mr McConnell:
Lab
I wrote to the SCDI some 10 days ago, asking them to convene a meeting of representative business organisations to discuss the plans. I hope, when points suc...
Andrew Wilson:
SNP
Will the minister give way?
Mr McConnell:
Lab
I have just done so. I have made my point. Our programme includes targets and commitments up to 2003. A spending review is under way that will add two years ...
Mr Andrew Welsh (Angus) (SNP):
SNP
I am sure that the minister will agree that it is important to maximise every pound so that more money is available for spending on public services in an ope...
Mr McConnell:
Lab
I hope that Mr Welsh, as convener of the Audit Committee, will agree that, in this atmosphere of increased expenditure in so many budget areas, it is right a...
Andrew Wilson (Central Scotland) (SNP):
SNP
I welcome the final stage of the first budget process. We look forward to a more substantial consultation on and wider consideration of next year's bill. At ...
Mr Kenneth Macintosh (Eastwood) (Lab):
Lab
Does the SNP have anything to contribute to this debate other than questioning the constitutional settlement? That is a boring theme. We are here to make thi...
Andrew Wilson:
SNP
I remind the member that his role as a backbencher is to question, and not toady to, the Executive. It is our job to highlight the wider structural issues th...
Mr Macintosh rose—
Lab
Andrew Wilson:
SNP
I have taken the member and am now moving on. Either that share of spending meets the choices of the Scottish public about the allocation of our nation's res...
Mr McConnell rose—
Lab
Andrew Wilson:
SNP
I will be grateful if the Minister for Finance takes the opportunity in this intervention to say whether he regards Scotland's current per capita share of UK...
Mr McConnell:
Lab
It is an interesting adaptation of the intervention to ask questions of the member intervening. I want Mr Wilson to give a clear answer to this question: doe...
Andrew Wilson:
SNP
The formulaic response that that question calls for is that it is correct. The issue at stake, however, is whether Scotland's per capita share is being prese...
Mr Macintosh rose—
Lab
Andrew Wilson:
SNP
If I can finish—I know Mr Macintosh is seeking a ministerial role but perhaps listening rather than speaking would be the best tactic for him. Future allocat...
Dr Richard Simpson (Ochil) (Lab) rose—
Lab
Andrew Wilson:
SNP
It amounts to hundreds of millions of pounds a year. As I said—before I take Dr Simpson—even the Scottish Parliament information centre found that, through t...
Dr Simpson:
Lab
On Mr Wilson's calculation of a0.5 per cent squeeze, which I do not fully accept because it assumes things will stay the same every year, does he agree that ...
Andrew Wilson:
SNP
I do not accept that for the current course of expenditure. That is not my analysis but Arthur Midwinter's, and he, like Dr Simpson, denies the existence of ...
Mr David Davidson (North-East Scotland) (Con):
Con
I was pleased to hear the Minister for Finance say that he has stopped juggling. Perhaps we will get some real economics in future. In his last attempt at a ...
Mr Keith Raffan (Mid Scotland and Fife) (LD):
LD
Mr Davidson is talking about savings and reallocation within the budget, so I wonder whether he will clarify a point of Tory policy. On 4 November 1999, Murr...
Mr Davidson:
Con
I would be delighted to sort it out with them. We have two different stresses. We have said throughout this Parliament that there is a need to put more impet...
Andrew Wilson:
SNP
I agree with Mr Davidson's criticisms of the current position. Will he comment on the fact that Conservative party policy is to cut taxation as a proportion ...
Mr Davidson:
Con
I am surprised at the naivety of Mr Wilson's question. Obviously, if money is spent wisely on wealth creation, the same low or even lower tax percentages wil...
Mr Keith Raffan (Mid Scotland and Fife) (LD):
LD
I was interested by Mr Davidson's speech. Of course, he was not able to reconcile the competing bids of Mr Tosh and Miss Goldie. Clearly, they do not speak t...
Miss Annabel Goldie (West of Scotland) (Con) rose—
Con