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Friday, August 26, 2011

Scottish public sector 'should focus on financial stability'

Leaders in the Scottish public sector have been called upon to prioritise long-term financial sustainability in order to guarantee effective services in future.

Audit Scotland has published a report noting that Scottish public sector bodies are seeing the first wave of major spending cuts at present, increasing the need for major savings and forward planning.

It stated that there is "significant risk" attached to short-term solutions rather than long-term foresight, adding that few within the sector have direct experience of budget cuts on this scale.

Auditor General for Scotland Robert Black said clear priorities and intended outcomes should therefore be set early on, with budgets to be based on these.

"Strong leadership and governance in Scotland's public bodies are vital to deal successfully with the most difficult financial conditions since devolution," he added.

Earlier this month, Audit Scotland published analysis showing that better coordination of transport in the health and social care sector would lead to notable financial savings.

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