Scots public services face major cuts as ageing population hits spending

Spending on many vital public services in Scotland is poised to fall by about 20 per cent over a decade, leading economists have warned.

And many “non-protected” areas like housing, transport and social work could drop by 9-14 per cent over the course of this parliament alone as the ongoing impact of austerity continues to bite, accord- ing to the Fraser of Allander Institute.

The warning came as a separate report finds that satisfaction with public services has slipped to its lowest level in a decade.

It will increase calls for Nicola Sturgeon to raise taxes to offset austerity after she told MSPS earlier this month that she is now open to this in next year’s budget. The FAI report entitled Scotland’s Budget: 2017 warns that ongoing economic uncertainty, fresh Westminster cuts and majorspendingcommitments in areas like healthcare which is grappling to deal with an ageing population, will mean many other public services will continue to be squeezed.

Professor Graeme Roy, Director of the FAI, said: “The Scottish devolved budget faces considerable spending pressures in the years to come.

“In particular, rising health costs and an ageing population mean that commitments to health spending are continuing to squeeze funds for other public services. Continuing as before is not an option if Scotland’s devolved budget is to be sustainable in the long term.”

Analysis by the FAI reveals that spending on public services other than health is expected to be almost 20 per cent lower in 2020-21 than it was a decade earlier.

The SNP government is committed to raising funds for the health service by £500 million more than inflation by the end of this parliament, doubling free childcare provision, free university tuition, protecting the police budget.

Ministers have also pledged to maintainfreepersonaland nursing care and invest an additional £750 million in a school attainment fund.

But these will mean other parts of the budget will face cuts. The commitments to the NHS, policing, childcare and educational attainment could mean that ‘non-protected’ areas face real term cuts of between 9 per cent to 14 per cent over the current parliamentary term 2016-17 to 202021.

It came as the Scottish Household Survey 2016 found 56 per cent of adults were happy with local health services, schools and public transport. That compares to 57 per cent when the question was first asked in 2007.