Building a Better Scotland
FOREWORD
By Minister for Finance and Public Services
This document details the Scottish Executive's spending plans for the three years to 2007-08. It explains how we will invest your money to meet your priorities and needs.
As Minister for Finance and Public Services, I have a duty to ensure that every pound that is spent is spent wisely and where it can have the most impact. I am determined that our expenditure will deliver real results. In doing that, I have been supported throughout the Spending Review by Tavish Scott, the Deputy Minister for Finance, Public Services and Parliamentary Business. We have put in place three key measures to ensure that every pound matters and makes a real difference.
We have built on the results of the 2002 Spending Review and have again ensured that each area of government adopts demanding targets. Targets that will secure a step change to how we deliver for Scotland. Targets that ensure that we deliver excellent public services in every community across Scotland and tackle the issues that you care about. Reducing reoffending, improving educational attainment and improving health care. Supporting economic growth and tackling poverty. Investment that ensures we direct resources to the people and the places that matter. Outcomes that will Build a Better Scotland.
We have adopted fewer targets this year than in the 2002 Spending Review and made sure our targets and activities are even more focused and relevant. Measuring our progress on the issues that matter. Making sure your money is used wisely.
Our Spending Plans commit to a major increase in our investment for the long term. Investment to improve the physical fabric of Scotland. Long term investment in the capital infrastructure we need to grow the economy and improve our public services: the schools in which our children learn; modern, safe health facilities for the sick and new transport links to get goods to markets and people to work; investment in our universities and colleges and water supplies to meet European standards.
In June of this year I informed Parliament that I was setting a target of increasing capital spending by 5% per annum in real terms over the period of the Spending Review. Net investment will actually increase by almost 40% in the three years from 2004-05. I will publish our Capital Investment Plan setting out how we will manage our spend on infrastructure projects, to ensure that it achieves value for money and secures real results.
I have also begun an Efficient Government Review. We have already secured greater efficiency in public spending over the last five years so that administration costs for the Scottish Executive are now lower than for the average department in Whitehall. In other areas like e-procurement, we are ahead of the rest of the United Kingdom and Europe. But I know there is more we should do. I set a target in June for us to achieve more than 500m of annual efficiency savings by 2007-08. A target our budget shows the Scottish public sector will meet. A target that will enable us to move more resources to the people and places that matter.
I believe that the rigorous approach I have adopted will ensure that these plans deliver Enterprise, Opportunity and Fairness for the people of Scotland.

Andy Kerr MSP
Minister for Finance and Public Services