To ask the Scottish Executive what it defines as the difference between efficiency savings and funding cuts.
Our published efficiency guidance is quite clear. Efficiency is about enhancing value for money, improving public service delivery and raising productivity. There are two types of efficiency:
Cash-releasing efficiencies are achieved by delivering an actual resource efficiency because the organisation or function delivers the same service at a reduced cost which might be demonstrated by delivering the same outcome(s) or output(s) for a reduced input, for example costs, people, procurement, assets etc, or delivering a reduced unit cost allowing an increased volume of service for the same cost.
Time-releasing or productivity efficiencies are defined as efficiency measures which do not release cash but allow public services to deliver better services with the same money (for example, through workforce reform or better support).
Certain types of activity do not count as efficiency gains:
· Cuts that result in poorer or reduced public services.
· Increased income from higher fees and charges to the public.
All efficiencies should be supported by quality based assessments to demonstrate they are efficiencies and not cuts.
This guidance is reiterated in the introduction to our Efficiency Delivery Plans. Both of these publications are available on the internet at:
http://www.scotland.gov.uk/Topics/Government/PublicServiceReform/efficientgovernment/EG08-11.