Scottish Government

Finance and Public Service Reform

To plan and prudently manage the public finances; deliver excellence in public services; support growing Scotland's economy; enable local democracy to flourish; promote Scotland's international image; and communicate and explain the Executive's activities throughout Scotland, the UK and abroad.

Objectives and Targets

Spending Plans 2002-08

Table 7.01 Categories of spending (Level 2)

Notes:
1. Following the introduction of the prudential framework for capital expenditure, a number of former specific section 94 consents converted to grant and are administered separately by other portfolios. In addition, the baseline excludes Police and Fire Capital Grants which are included within the Justice portfolio.
2. For comparability with years 2004-05 onwards, the SPPA numbers for 2002-03 and 2003-04 have been amended to include FRS17 adjustments for pension scheme liabilities.
3. Prior to 2006-07 this fund was two separate funding streams - the Modernising Government Fund and Efficient Government Fund.

Table 7.02 Categories of spending (Level 2 real terms)at 2006-07 prices

Notes:
1. Prior to 2006-07 this fund was two separate funding streams - the Modernising Government Fund and Efficient Government Fund.

Table 7.03 Other confirmed Spending Plans for Local Government Outwith AEF

Notes:
1. These revenue and capital grants are included as part of the specific portfolio chapters of this document. This includes the capital grants within Finance and Public Service Reform which appear in Table 10.06 under Local Government Capital.
2. Figures for 2002-03 and 2003-04 are not currently available on a comparable basis.
3. Includes grants where Local Authorities receive funding as lead partners in Community Planning Partnerships or as part of other partnerships.
4. ELLD and Transport combined as ETLLD from 2006-07.

Table 7.04 Grant Aided Expenditure ( GAE) per portfolio

Grant Aided Expenditure ( GAE) relates to the levels of local authority net revenue expenditure on core services that the Executive is supporting through grant. GAEs are not budgets but more a basis for the distribution of grant through Aggregate External Finance ( AEF). Local authorities are, however, free to allocate their available resources to each service on the basis of local need. This table represents a summary of all GAE provision allocations included in each portfolio chapter throughout the Draft Budget document.

What the budget does

The Finance and Public Service Reform portfolio will work to improve the delivery of public services, promote local democracy and support conditions for wealth creation that will benefit all in Scotland.

Local authorities have a key role in delivering frontline services. This is recognised in our continued commitment to delivering excellence in public services.

We will drive forward the Executive's Efficient Government initiative. As part of the Customer First programme, we will work with local authorities and community planning partners to implement a strategic framework programme of citizen focused service improvements.

We will ensure that all parts of the Scottish public sector make arrangements to provide Best Value in the effective management and delivery of services and will ensure through Customer First that citizens have a choice in accessing public services in a way convenient to them.

We will promote an image of a modern, vibrant and diverse Scotland as an attractive place to visit, with which to do business, and in which to study, live and work.

We will continue to promote Scotland's interests within the European Union.

Through the initiative on Fresh Talent we will contribute to retaining and attracting people to live and work in Scotland.

We will support and encourage Scotland's contribution to international development, particularly in sub-Saharan Africa.

In everything that we do, we are committed to ensuring that we work to grow the economy, to promote equality and close the opportunity gap and to ensure that our activities are sustainable.

Statement of priorities

In 2007-08, we will focus our resources on:

• investing £26.2m in continuing the work of the Efficiency and Reform Fund by contributing towards delivery of the shared services strategy and the Customer First Programme.
• recognising the key role local authorities play in delivering the front line services (education, community care, transport, etc) on which the people of Scotland rely. Total revenue support for core services ( AEF) for local authorities is being increased by £237.8 million or 2.8% in 2007-08 to provide additional support in education, for families with young children, additional funding for the increase in teacher numbers, significant increases in resources for residential and home based care for the elderly to meet demand for additional numbers requiring care and for improvements in the quality of the service, additional investment in the police service to increase police numbers and meet the additional demands placed upon them, and protecting the services already being provided;
• re-affirming our commitment to excellence in public services and our support for Best Value by continuing to support the Improvement Service. Continued investment to 2008 means that the service can be secure in the medium term, delivering efficient solutions to local authorities and their partners which will bring continuous improvement in services;
• maintaining in real terms a dedicated source of infrastructure investment funding for our six cities through continued support for the Cities Growth Fund demonstrating commitment to the sustainable economic growth of Scotland's City-Regions and confidence in local authorities and their Community Planning partners to deliver City-Vision strategies;
• continuing to support locally-determined projects, through the Quality of Life funding. We have already invested £180 million in Quality of Life funding (via Revenue Support Grant) from 2003-06, supporting a range of projects from community safety schemes to providing better play facilities, and we will invest a further £50 million per annum from 2006-08;
• as part of the Fresh Talent initiative, providing £0.54m to fund a prestigious scholarship scheme, £0.3m to improve the experience of international students in Scotland and £0.4m to continue the Relocation Advisory Service;
• spending up to £4m each year on targeted marketing and promotion of Scotland to supplement and enhance the efforts of others in the public and private sectors to promote Scotland internationally;
• using £3m to support the international development work of Scottish organisations particularly in Malawi and other parts of sub-Saharan Africa;
• encouraging the use of common systems for delivering support services, and develop further the use of e-procurement scotl@nd - our world leading electronic procurement system; and
• taking forward the Independent Review of Local Government Finance, as agreed in the Partnership Agreement.

New resources and transfers

Our spending plans include the following main changes made since the publication of Draft Budget 2006-07:

Local Government Revenue
A net increase of £15.264m in Aggregate External Finance ( AEF). The increase is as a result of the Scottish Executive's Partnership Agreement commitment to increase teacher numbers to 53,000. By 2007-08 an additional £44m will have been added to the National Priorities Action Fund ( NPAF) specific grant for this purpose along with an extra £17.1m for additional support staff and £3m for additional support for learning. Part of the increase is as a result of a transfer of resource from the Changing Children's Services Fund which was outwith the core settlement into AEF. The total increase is offset by a £79.3m reduction in Revenue Support Grant for local authorities due to the transfer to Enterprise, Transport and Lifelong Learning of the funding for the Concessionary Fares scheme.

Committees, Commissions and Other Expenditure
Transfer of £18.3m for Research and Development (business rates) to Central Unallocated Provision ( CUP).

Scottish Public Pensions Agency
Increase of £571.345m in AME due to additional provision of £392.101m for NHS Superannuation and £179.244m for Teachers Superannuation ( AME programmes are fully funded by HM treasury).

Growing the Economy

The mainstream work and expenditure of the Portfolio contributes directly or indirectly to Ministers' top priority, growing Scotland's economy. As explained in individual portfolio chapters, Local Government spending on activities such as education and local transport is critical to Scotland's economic prosperity. In addition, the Finance and Public Service Reform portfolio funds a number of initiatives directly related to growing Scotland's economy:

• Prudential Regime: The Prudential Regime for local authority capital finance provides a flexible framework for investment in infrastructure. Scottish local authorities use the Prudential Regime alongside centrally-supported borrowing to invest in new assets making a vital contribution to growing the economy, social policies and to the efficient delivery of public services. Infrastructure investment underpins growth in the economy by facilitating better access to transport, schools and housing etc. In addition to Prudential borrowing, the Finance and Public Sector Reform direct spending on infrastructure investment, together with the centrally-supported borrowing, will amount to £421m in 2007-08.
• Cities Growth Fund: Competitive cities are the keystones of a growing economy. The Cities Review highlighted concerns, particularly from the business community, that capital investment lagged behind development and recommended the creation of a fund as a source of infrastructure investment to help regenerate our cities and contribute to sustainable economic growth. The Cities Growth Fund (£42m in 2007-08) is designed to support growth and opportunities in each of Scotland's six cities and to result in clear, measurable improvements in each City-Region. The outcomes achieved by the fund so far are detailed in a nnual progress reports for 2003-04 and 2004-05. An evaluation of the Fund will be carried out during 2006 to determine whether improvements can be made to the overall effectiveness of the scheme.
• Business Improvement Districts: A Business Improvement District ( BID) is a geographical area where non domestic ratepayers have voted to invest collectively in local improvements, in addition to those delivered by local government. BIDs are an additional investment to strengthen the areas business and economic performance. Scottish Ministers are committed to introducing BIDs in Scotland and have established a Steering Group to advise and make recommendations on the process and progress for the introduction and implementation of BIDs. They have announced Pilot BIDs which will be supported financially in the run-up to ballots and they are taking forward legislation which is expected to be in place by April 2007.
• Efficiency and Reform Fund: Improving productivity and efficiency in the public sector is a key factor for the growth of the Scottish economy. Through the new Efficiency and Reform Fund (a merger of the two separate funding streams of the Modernising Government Fund and the Efficient Government Fund) we will promote efficiency improvements across the public sector, particularly in savings on 'back office' functions. The Fund (£26.2m in 2007 - 08) will be particularly effective where some gap funding is required to establish projects that will bring recurring efficiency savings. Proposed uses of the Fund over the next year include a pathfinder project with Edinburgh and Glasgow Councils aimed at developing a simplified and standardised service delivery model to allow sharing of services across local government; a Forth Valley multi-agency shared service project involving 5 councils working to develop a shared service capability in a single service centre for the core corporate functions of Finance, Payroll, HR and Procurement; support for the development of a business case for the shared implementation of software used in social care management; scoping work on alternative and better models for care procurement, currently costing around £2b a year, that will optimise the collective purchasing power of councils in this area, and on a shared workforce planning and electronic recruitment portal that will support councils in projecting labour supply and demand and addressing areas of skill shortage with labour market suppliers such as universities, colleges and schools.
• Scottish NeighbourhoodStatistics: Scottish Neighbourhood Statistics (£4m over 2006-08) supports measurement of the unemployment gap and the related target of regenerating communities with persistently high levels of unemployment. It will provide information to help ensure that rural and remote communities have their distinct needs reflected across the range of government policy and initiatives.
• International Relations: The Executive's International and European Strategies - and the specific country plans for China, Germany and the USA seek to strengthen Scotland's international engagement with the primary aim of boosting economic growth. These overarching, cross-departmental strategies are reinforced by focussed policies such as Fresh Talent and Scotland's International Image. Working with partners across the public sector, the Executive's international activity attract people from overseas to live, work, study and do business with Scotland - with each aspect potentially contributing towards economic growth.

The Executive's international activity is enhancing the building blocks of faster, sustainable growth in Scotland. The Fresh Talent scheme is bringing new labour, new skills and new ideas into the economy - filling vacancies, offsetting the aging population and enhancing productivity. Measures to increase student flows into and out of Scotland, to increase Scotland's international science links and to expand Scotland's international transport network are strengthening Scotland's position in the global, knowledge economy - patching into new technological and commercial opportunities. Efforts to strengthen Scotland's commercial engagement overseas are enabling a more efficient international allocation of resources, thereby paving the way to higher productivity and faster growth in Scotland.

Closing the Opportunity Gap/Promoting Equality

Closing the Opportunity Gap

Our planning and monitoring role over the delivery of services by local government, the NHS and other public bodies will contribute to the Executive's cross-cutting priority of closing the opportunity gap by:

• delivering the greatest benefit to those most dependent on public services;
• ensuring that services to disadvantaged communities are not lower quality than those to other communities;
• ensuring that services are responsive to the needs of all Scotland's communities; and
• promoting an improved quality of life for everyone in local communities by building on the Quality of Life initiatives already undertaken by local authorities (£100m over 2006-08), aligned to Closing the Opportunity Gap Targets. For example, £215k is being provided for community regeneration in Aberdeen, £35k for fruit and breakfast clubs in Angus, £204k for a rural inclusion programme in Highland and £226k for healthy eating in schools in Perth and Kinross.

In addition, the Portfolio supports a number of initiatives which contribute to this cross-cutting theme:

• Cities Growth Fund: The Review of Scotland's Cities points to the need to regenerate deprived areas of our cities. The Cities Growth Fund targets key regenerator projects in each City-Region and is contributing to closing the opportunity gap, with a particular emphasis on employability.
• Digital Inclusion: Digital inclusion can contribute to closing the opportunity gap, by addressing issues relating to service users ability to access and use ICT and the Web to increase life chances in a range of ways e.g. accessing public services, information, advice, e-learning and employment opportunities. The Scottish Executive strategy for digital inclusion has recently been reviewed and a document will be published in late Summer 2006.
• Scottish NeighbourhoodStatistics: The provision of statistics underpins the planning and delivery of Closing the Opportunity Gap objectives. SNS is one of the prime means of measuring the opportunity gap, and identifying both issues for action and the type of action necessary, particularly in the context of regeneration. The Scottish Index of Multiple Deprivation is being promoted across the SE to define deprived areas in order that baselines can be calculated and the change in the gap monitored over time.
• Advertising: A significant proportion of advertising spend (£17.4m over 2006-08) is aimed at closing the opportunity gap. For example, current campaigns seek to tackle issues such as anti-social behaviour, drugs misuse, alcohol abuse and healthy living.

Promoting Equality

In addition to addressing this priority through our planning and monitoring of delivery of local government services, a number of which can have a significant impact on equality issues, the following activities also support the promotion of equality:

• Scottish Neighbourhood Statistics: As with Closing the Opportunity Gap, the provision of relevant statistics is an essential requirement for the measurement of progress towards the achievement of equality objectives and for identifying areas for action. For example, the Office of the Chief statistician is currently leading work on developing a set of classifications on ethnicity.
• Advertising: Equality issues also feature prominently in the range of campaigns funded from the £17.4m provided for advertising expenditure over the next two years, with high-profile campaigns currently running on domestic abuse and racism.
• Best Value: Our work with public bodies to refresh and embed Best Value principles in the management and delivery of public services will reinforce and further promote equalities issues as one of the key principles of running a Best Value organisation.
• Quality of Life: Quality of life funding supports the local environment and community well-being. £50m has been allocated to councils for 2007-08 for local projects such as £45k for disabled parking in Aberdeen, £65k for services for people with special needs in Clackmannanshire and £50k for the Multi-Cultural Association in Dumfries and Galloway.
• Single Transferable Vote: Our work on the introduction of the Single Transferable Vote ( STV) system at local government elections is part of the renewing local democracy agenda aimed at widening the range of people who get involved in local government. STV will help ensure the election of candidates who better reflect the views of voters and offer voters a greater choice.

Sustainable Development

As explained in portfolio chapters, Local Government spending on activities such as sustainable transport and waste disposal has an important influence on the environment and on our quality of life. In addition, this Portfolio supports other initiatives which contribute to sustainable development:

• Cities Growth Fund: A number of projects have a specific focus on sustainable investment and contribute directly to "green thread" commitments - for example, Glasgow City-Region's £1m Waste Management Innovation Fund.
• Best Value: Our work to refresh and embed Best Value principles in public services will promote sustainability by providing practical advice on sustainable development as one of the key principles of being a Best Value organisation.
• Efficiency and Reform Fund: Support for the National Entitlement Card will provide improved access to public transport and the means to deliver concessionary fares conveniently to key target groups. Support for more effective joined up delivery of services and electronic or electronically enabled accessibility reduces the need for personal visits to delivery agencies or at least reduces the number of journeys, with potential savings in travel and fuel consumption.
• Scottish NeighbourhoodStatistics: Small area information will continue to be developed on water quality, derelict land, landfill sites and processes identified in the Scottish Pollutant Release Inventory. The development work on the Scottish Index of Multiple Deprivation will also be reviewing the inclusion of a domain on Physical Environment.
• Advertising: The advertising budget supports campaigns that are directly related to promoting sustainable development such as recycling and energy efficiency.
• Quality of Life: Quality of Life funding supports the local environment and community well-being. £50m has been allocated to councils for 2007-08 for local projects. Councils are encouraged to support sustainable development issues using this funding source. For example, £385k is being provided for Green Teams in Angus, £80 for recycling in Clackmannnanshire, £103k for park improvements in Dundee and £600k for environmental wardens in Edinburgh.

Local Government Revenue

Spending Plans 2002-08

Table 7.05 More detailed categories of spending (Level 3)

Note:

1. The NDR figure for 2007-08 is an estimate and will be reviewed when the poundage rate for 2007-08 is announced early in November 2006. Any change in level of NDRI will not impact on the overall level of support Local Authorities will receive through AEF, which is confirmed.

What the budget does

Revenue grant to local government, known as Aggregate External Finance ( AEF), is made up of three components.

• 'Specific Grants', which are allocated and distributed centrally, are linked to specific policy initiatives and expectations, e.g. for policing, social work etc. Individual grants are covered in other portfolio chapters;
• 'Non-Domestic Rates' are collected by local authorities, paid into a central pool and redistributed to authorities in proportion to their populations; and
• 'Revenue Support Grant' makes up the balance of AEF each year after estimates of specific grants and NDRI have been subtracted from the national AEF total.

In 2007-08, we will focus our resources on:

• additional support in education for families with young children and for the increase in teacher numbers;
• a significant increase for care for the elderly and for improvements in the quality of the service;
• additional investment in the police service to increase police numbers and meet the additional demands placed upon them;
• extra resources for roads maintenance to help councils reduce the backlog;
• additional provision for environmental programmes for increased costs of higher standards in waste collection and disposal;
• protection for all services already being provided; and
• continued support of locally-determined projects to improve people's quality of life, through the Quality of Life funding. We have already invested £230 million in Quality of Life funding from 2003-07, supporting projects from community safety schemes to better play facilities, and will invest a further £50 million in 2007-08.

Local Government Capital

Spending Plans 2002-08

Table 7.06 More detailed categories of spending (Level 3)

Notes:
1. The single allocation was replaced by supported borrowing in 2004-05 and a number of section 94 consents under the single allocation formula were converted to cash grants administered separately by other portfolios.

What the budget does

The Cities Growth Fund, established following the Review of Scotland's Cities, invests in the infrastructure of our six cities to help support sustainable economic growth and regeneration in successful and dynamic 'City Regions'. Each City based local authority is required to draw on local evidence to justify its City-Vision investment plans, recognising that each city is at the core of wider, mutually interdependent City-Regions which play a vital strategic role in Scotland's economic and social development.

Local Authority Supported Borrowing represents the proportion of local authority core capital expenditure through borrowing that attracts Scottish Executive support as part of Revenue Support Grant. The Scottish Executive covers the costs of servicing this debt. Capital expenditure financed through Supported Borrowing can be for any area of local authority service provision, in contrast to capital grants which are necessarily service specific. This centrally supported borrowing sits alongside councils' self-supported borrowing taken out under the auspices of the Prudential regime, the level of which councils themselves determine by reference to the prudential indicators.

In 2007-08, we will:

• maintain existing levels of support for borrowing by local authorities and increase capital grants, enabling local authorities to continue to fund capital projects and maintain and improve their current infrastructure; and
• maintain in real terms a dedicated source of infrastructure investment funding for our six cities through our continued support for the Cities Growth Fund, demonstrating our commitment to the sustainable economic growth of Scotland's City-Regions and our confidence in local authorities and their Community Planning partners to deliver their City Vision strategies.

Committees, Commissions and Other Expenditure

Spending Plans 2002-08

Table 7.07 More detailed categories of spending (Level 3)

What the budget does

• The Local Government Boundary Commission for Scotland ( LGBCS) is an advisory NDPB funded by the Scottish Executive. It is an independent body created by Section 12 of the Local Government (Scotland) Act 1973. The LGBCS is responsible for statutory reviews of electoral and administrative arrangements and ad hoc reviews of electoral or administrative arrangements.
• The OCS budget, which includes provision for Scottish Neighbourhood Statistics ( SNS) aims to develop a wide range of data and related analysis at the smallest geographical level possible to support decision making and monitoring in all programmes. The system, which has a particular emphasis on closing the opportunity gap, also allows for dissemination of information to local communities and supports community planning and equality issues. It meets the increasing need to strengthen the evidence base of policy making and provide insight into the delivery and the impact of policy actions.
• The International Relations budget includes provision for the Fresh Talent and Scotland's International Image initiatives and covers cross-sectoral and marketing work for promoting Scotland and Scottish interests overseas in line with the European and International Strategies. It includes the budget allocated to taking forward the Executive's 2005 policy document on international development. Other provision relates to costs involved in the Executive's engagement in EU activities.
• The Standards Commission provision goes towards the costs of the Standards Commission for Scotland. The Commission offers guidance to councillors and to members of public bodies on standards in public life, and investigates complaints made against these councillors or members for breach of Codes of Conduct approved by the Parliament.
• Digital Inclusion is about addressing the risk that those most at vulnerable social, economic or geographical exclusion have their life chances further reduced by exclusion from access to the web and information technology. The Scottish Executive will promote an awareness of Digital Inclusion obligations and equality duties to service providers to ensure that individuals who are digitally excluded can benefit from increased quality of life and better access to a range of services.
• The Miscellaneous budget funds research undertaken by academics and consultancies on our behalf. Current and future projects include work on evaluations of the Fresh Talent Initiative and the Relocation Advisory Service, Perceptions of Scotland as a Leading Small Nation and analyses for the Local Government Finance Review and Scottish Local Authority Remuneration Committees. In addition, the baseline holds provision for a variety of local government organisations and activities such as the Association of Scottish Community Councils, Community Leadership Forum and Chief Executives' Meetings. The Public Appointments Call Centre centralises some of the initial administrative and routine processing functions of the Executive's public appointments process.
• Scottish Ministers have established a new independent Inspectorate of Prosecution in Scotland to inspect aspects of the work of COPFS. It reports to the Lord Advocate and is answerable directly to him. The Inspectorate is fully independent of the COPFS. An Advisory Board will be established with lay representatives to assist the Inspectorate in its work.
• The Advertising Budget covers the topics which Ministers wish to be communicated to various audiences. They range from calls to action, to communications aimed at changing behaviour and attitudes over the long term. The Marketing Development Budget allows the campaigns to be supported through the provision of public relations, sponsored broadcasting and editorial, web design and hosting, consultancy costs and the provision of support materials such as leaflets and posters.
• The Improvement Service has been launched to support, promote and assist in the delivery of excellent public services - through learning, sharing and delivering improvement solutions. The Improvement Service will also support Efficient Government activities. It will support delivery of the Efficient Government Plan and is already exploring the development of a co-ordinated approach to training in local government and promotion of generic training across the public sector. It will promote the use of action learning networks, benchmarking and best practice to deliver better performance in local government and in joint delivery of services. The Improvement Service is a delivery agent for the Efficiency & Reform funded programme "Customer First". All of this activity is expected to lead to savings in the longer term, through better processes and better service outcomes.

In 2007-08, we will:

• develop and implement forward plans to promote Scotland internationally, working closely with key partners and expanding activities overseas. The overall plans will provide a structure and direction for the Department's activities in promoting Scotland's image and interests, as well as supporting strategic direction in other Executive international initiatives outside the Department. The aim will be to change current perceptions and thinking about Scotland and promote a contemporary image to gain recognition as a place to invest, do business with, visit, live, work or study. In order to effect such perception shifts there will be a programme of marketing activity targeted at key geographic regions and countries which will be delivered via the Executive's own activities in-country and working with a variety of other partners including the Foreign and Commonwealth Office, the British Council and Scottish bodies;
• continue the implementation of the First Minister's Fresh Talent initiative and the Relocation Advisory Service. A marketing programme will help deliver Fresh Talent messages to bright, talented and motivated people in a variety of markets internationally to raise awareness of, and interest in, Scotland as a place to live and work. A domestic campaign will be taken forward to inform those people currently in Scotland, such as the international student community, of the opportunities to stay in Scotland after graduation;
• position Scotland as one of the leading regions of Europe and promote Scotland's interests within the European Union - both directly in Brussels and in collaboration with the UK Government, the other Devolved Administrations and other European regions in accordance with the Executive's European Strategy;
• continue to support the two-way exchange of knowledge and expertise between Scotland and developing countries, through the broad-based development of NGOs and other bodies; and
• continue to develop SNS, especially gaps in coverage such as the physical environment, housing and crime; further developing the SIMD through reviewing the methodology and enhancing the domains it contains.

Efficiency and Reform Fund

Spending Plans 2002-08

Table 7.08 More detailed categories of spending (Level 3)

What the budget does

From 2006-07 onwards the funding streams merged into a single fund to support further efficiency and service delivery improvement in public services.

In 2007-08, we will:

• build on our strategic programme of work with local authorities called Customer First which sets out a common national framework to deliver consistent and measurable improvement to deliver modern public services;
• continue to refine and develop a series of outcomes, identified by Customer First, for the improvement of the efficiency and responsiveness of core local authority services to include wider public service organisations;
• agree a timescale over which these service improvements are to be delivered;
• encourage the take up of services which are available online;
• continue to oversee delivery of projects supported by the Efficiency and Reform Fund;
• provide further support through the Efficiency and Reform Fund to the public sector to assist in the delivery of more efficient and user-focused public services; and
• publish a national shared services strategy and work with stakeholder groups to ensure its effective implementation.

Scottish Public Pensions Agency

Spending Plans 2002-08

Table 7.09 More detailed categories of spending (Level 3)

What the budget does

The Scottish Public Pensions Agency ( SPPA) is an Agency of the Scottish Executive. Its principal role is to administer the pensions, premature retirement and injury benefits schemes for employees of the National Health Service in Scotland ( NHSPS) and for members of the Scottish Teachers' Pension Scheme ( STPS).

The Agency has responsibility for developing the regulations covering the NHSPS, STPS, Local Government, Police and Fire pensions schemes in Scotland; for determining appeals made by members of these schemes and provides a pension calculation service for the Scottish Parliamentary Pension Scheme, the Legal Aid Board for Scotland and Scottish Executive Environment and Rural Affairs Department ( SEERAD) Scheme.

In 2007-08, we will:

• pay 100% of all existing NHSPS and STPS pensions and 98% of lump sums on the due date;
• ensure 98% of all payment authorisations are correct at the point of payment;
• Collect 98% of contributions for the NHS and Teachers' schemes within the period prescribed by legislation;
• ensure that all eligible scheme members receive annual benefit statements in line with legislative requirements;
• develop and implement the IT systems necessary to support the reforms to the public sector pension schemes by April 2008;
• introduce and manage effectively the reforms to the public sector pension schemes administered and regulated by SPPA by the specified target dates in 2007;
• maintain the standards set to retain Investors in People accreditation;
• aim to improve on the customer satisfaction levels achieved in 2006-07 ; and
• meet annual requirements for Corporate Governance reporting and organisational efficiency within prescribed deadlines.

Other Finance and Public Service Reform Related Local Authority Funding

Spending Plans 2002-08

Table 7.10 More detailed categories of spending (Level 3

What the budget does

The Finance and Public Service Reform Grant Aided Expenditure ( GAE) figures relate to the level of local authority net revenue expenditure on these services above that the Executive is supporting through grant GAEs are not budgets, but rather a basis for the distribution of grant through AEF. Local authorities are, however, free to allocate their available resources to each service, including those within Finance and Public Service Reform, on the basis of local needs and priorities. The figures in this table are included in the GAE summary table (table 7.04) contained within this chapter.