The Scottish Government

1. Portfolio/Number/Name:EYP/C3 Savings from EYP central government expenditure

2. Programme/Activity: Please include a short description

In the 2004 Spending Review, it was decided to hold specific budget baselines constant at 2005-06 levels despite inflationary pressure and the ongoing requirement to deliver established policy commitments. The saving thus secured is the total amount by which those budget would otherwise have increased in line with inflation.

3. Planned Savings

2005-06

2006-07

2007-08

Cash (m)

0.0

4.2

9.8

Time Releasing (m)

0.0

0.0

0.0

4. Accountable Officer for delivery

Mike Ewart

5. Project Manager

Joe Brown

6. EGDG account manager

Gillian Woolman

7. Quality Impact

Describe any impact on the quality of service delivery. Be specific and explain if the expectation is positive, negative or neutral.

Neutral impact on the quality of service delivery.

8. Dependencies

Explain if your savings are dependant on legislation or other structural changes being achieved.

Savings are not necessarily dependant on legislation or other structural changes being achieved.

9. Description of efficiency and actions to be taken

9.1 How will the saving be made? Be specific about number/size of contracts, staff, posts dates etc.

The cash saving will be made by holding specific budget baselines constant at 2005-06 levels despite inflationary pressure and the ongoing requirement to deliver established policy commitments. This decision freed up resources for Ministers to direct to other priorities as part of the Spending Review.

9.2 What action is critically needed to secure delivery of this saving? Be specific, and name the key action managers if they are outwith your immediate management chain (e.g. in an NDPB.)

Delivery of established policy commitments within existing programme baselines. Individual policy managers will devise and implement innovative methods to enable specific policy initiatives and outcomes to be delivered with no growth in budget in real terms.

10. Impact on Staffing to achieve the efficiency gain

If there are to be any changes in staff numbers (at activity level) to achieve the efficiency gain, please indicate how many full time equivalents and how far you expect savings to be achieved by natural wastage (show additions as + and reductions as -).

2005- 06

2006- 07

2007- 08

+

-

Net

Explanation

Savings emerging from programme baselines, not Departmental Running Costs.

11. Benefits

In general, the benefits of the Scottish Executive Efficiency Plan are the enhanced outputs from the resources Ministers have been able to allocate in SR04. But if there is a direct connection between this efficiency saving and the enhancement of a particular service please describe it here.

N/A

12. Gross/Net Cash Savings

12.1 Please set out the gross recurring saving and any offsetting recurring expenditure.

Total recurring saving of 9.8 million per annum from 2007-08.

12.2 Against what budget does this expenditure and saving fall?

Expenditure and savings relate to the following budgets:

The saving is the amount by which that budget would otherwise have increased in line with inflation.

12.3 Has this saving been built into your budget?

These savings have been built into SR2004 budget outcomes.

Subject to appropriate funding of any new policy developments, the maximum allowable expenditure against the published budget data, in each year, for that saving to be delivered is:

12.5 If not, how do you propose to invest the additional cash back into public services?

N/A

12.6 What plans do you have to exceed the required saving? Explain by how much in each year.

N/A

13. Time - release savings

13.1 Please explain any time-releasing savings indicated at question 3

N/A

13.2 Please describe the method you plan to use to calculate the cash equivalent of those time release savings.

N/A

14. Measurement and Monitoring

14.1 How are you proposing to measure the expected efficiency benefits (e.g. in terms of costs, level of output or quality of service)?

Efficiency benefits will be measured in terms of costs.

14.2 What monitoring & reporting procedures will be put in place to measure the efficiency savings (How often will progress towards the target be monitored? Who will have lead responsibility for reporting progress and what procedures will be in place?)

Established monitoring and reporting procedures will be used to measure the delivery of efficiency savings. Ministers and the Departmental Management Board receive progress reports at least on a quarterly basis.

14.3 Monitoring Data: Sources, validation and risks

• What data will be used to measure progress? Is all the required information quantifiable and readily available? If not what action will be taken to rectify this?
  
  
• What measures will be in place to validate the accuracy of the data? Who will take responsibility for this?
  
  
• Are there any issues or risks relating to how you plan to use the data? (e.g. accuracy, difficulties in collection)
  
  Budget allocation information is quantifiable and readily available. Finance Group will validate the accuracy of the data..