The Scottish Government must ensure the system for allocating public money to public services focuses on achieving results and takes into account the economic and social characteristics of the different areas of Scotland. This is the call made by the Chartered Institute of Public Finance and Accountancy (CIPFA) and the CIPFA Scottish Directors of Finance Section in their joint submission to the Commission on Future Delivery of Public Services.
The historic funding formulae used by public services are largely input based. CIPFA and Scottish Directors of Finance Section share the view of the 2010 Independent Budget Review Panel, that Scottish public services funding should be directed towards achieving outcomes, rather than focusing on how public services operate. They argue an independent review of the current system of resource allocation is needed to resolve this disconnect.
CIPFA Scotland Policy & Technical Manager, Don Peebles said:
‘The most important question for public services is what they achieve for the public who use them. For this reason CIPFA is calling for an independent review of the current system of resource allocation.’
Chair of the Directors of Finance Section, Sandra Black said:
‘If public sector reform is to lead to better outcomes across the Scottish public sector, we need a more holistic means of funding public services. This is essential given the tight fiscal climate we find ourselves in’.
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1. CIPFA’s full recommendations to the Commission on Future delivery of Public Services are as follows:
2. About CIPFA
CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. Our 14,000 members work throughout the public services, in national audit agencies, in major accountancy firms, and in other bodies where public money needs to be effectively and efficiently managed. As the world’s only professional accountancy body to specialise in public services, CIPFA’s portfolio of qualifications are the foundation for a career in public finance. They include the benchmark professional qualification for public sector accountants as well as a postgraduate diploma for people already working in leadership positions. They are taught by our in-house CIPFA Education and Training Centre as well as other places of learning around the world. We also champion high performance in public services, translating our experience and insight into clear advice and practical services. They include information and guidance, courses and conferences, property and asset management solutions, consultancy and interim people for a range of public sector clients. Globally, CIPFA shows the way in public finance by standing up for sound public financial management and good governance. We work with donors, partner governments, accountancy bodies and the public sector around the world to advance public finance and support better public services. This includes the development of local professional qualifications in African countries like Lesotho and Nigeria and in Europe in post conflict states in the Balkans.