The cost of Covid could see cuts in Scottish Government services
The body responsible for checking whether public money is being spent appropriately has warned of potential cuts to services as part of inevitable budgetary challenges caused by the response to Covid-19.
Audit Scotland released their report into the implications of Covid-19 on public finances and said “deeper reprioritising” of the Scottish Government’s budget may be needed as the impact of Covid-19 continues to bite the public purse.
It broke down the £5.3 billion of spending announced by the Scottish Government in response to the pandemic up to 31 July and warns that the government “must look across all the services they fund” in considering what is “essential”.
The report adds: “Fluctuating levels of funding and continuing heightened levels of demand for services due to Covid-19 present risks to managing a balanced budget. These new budget pressures exist alongside other spending risks.
“These include pre-existing pressures on public finances, and other external events such as EU withdrawal, for which the effect on public finances is not yet fully known.”
Stephen Boyle, the Auditor General for Scotland, said cuts or “reprioritisation” could be on the way and called on the Scottish Government to be “clear” about its choices.
He said: “The scale of the financial response to Covid19 has been significant, and the Scottish Government has made a good start to ensuring its spending is transparent. It must continue doing so.
“The unpredictable nature of the pandemic means more of the Scottish budget may need to be repriortised in the future to respond to Covid-19. And that means the Scottish Government and its partners need to be clear about which services are essential to delivering on national priorities.”
A Scottish Government spokesperson said: “The coronavirus pandemic is posing unparalleled challenges for countries around the world.
“Audit Scotland’s briefing paper underlines the scale of the Scottish Government’s financial response, including substantial extra spending on health services, supporting businesses and protecting and creating jobs.
“We endeavour to be fully transparent on where the money is being spent – including by producing an additional Summer Budget Revision – and welcome Audit Scotland’s recognition of these efforts. It is important we make every penny count.
“Significant budget challenges lie ahead as we work to stimulate a sustainable recovery.”