Resource Spending Review Framework: Analysis of consultation responses

Annex B: Note of the Public Bodies Session

Resource Spending Review:
Note of meeting of CEOs and DoFs
31 March 2022

Present

Tom Arthur, Minister for Public Finance, Planning and Community Wealth

A number of Chief Executives and Directors of Finance of public bodies and executive agencies

Supporting Scottish Government Officials

Purpose of Discussion

To meet with the leadership of Scotland's public bodies and executive agencies to discuss the Resource Spending Review (RSR) and gain their insight into two key discussion topics:

• Work on the RSR to date has explored a range of options to get the best value out of the Scottish Government's limited funding envelope. The Scottish Government is keen to hear the thoughts of public bodies in this space, given their experience of delivering services and transformation. How can we achieve the best value from Scotland's public sector spending?
• The public sector workforce is one of Scotland's key drivers of spend. How can we use policy interventions to maximize the value achieved from the public sector workforce in the effective delivery of public services, while ensuring the sector is an attractive, rewarding place to work?

Presentations

The Minister for Public Finance, Community Wealth and Planning provided a progress update on the Resource Spending Review to the attendees.

Notes of discussion

How can we achieve the best value from Scotland's public sector spending?

Attendees offered the following suggestions:

• There should be greater strategic alignment across the public sector landscape where Scottish Government, public bodies and the wider public sector identify shared purposes and how services might be best delivered collectively. This might involve the transformation of elements of the public sector, including delivery bodies. This should extend beyond shared services (which might also be an effective option) and requires effective prioritisation of policies and shared strategic intent including cross portfolio working.
• Opportunity to take systematic approaches to systems and procurement in order to reduce costs and increase efficiency.
• Opportunity to maximise the use of the resources of the full public sector, beyond just considering core Scottish Government.
• Opportunities from taking a user-centred approach to the design of services.
• Opportunities for raising income and self-financing should be explored, however, there is a constraint in areas where all the funding flows from Government.
• Taking an outcomes based budgeting approach might support achieving the best value from Scotland public sector spending aligned with creating the incentives to deliver the best outcomes (attendees noted the recent Scottish Leaders Forum publication on accountability and incentives^[6]).
• Scottish Government should consider the local eco-system when considering the delivery of services to ensure that the most efficient and effective approach is taken which meets the needs to citizens.

How can we use policy interventions to maximize the value achieved from the public sector workforce in the effective delivery of public services, while ensuring the sector is an attractive, rewarding place to work?

Attendees offered the following suggestions:

• Public bodies and executive agencies need the right policy conditions to support effective workforce planning. This includes consideration of the policies around no compulsory redundancy and the differences in terms and conditions across the public sector workforces.
• Scottish Government should help create the conditions for success for public bodies and executive agencies workforce planning.
• A collective approach to workforce planning might help in both delivery and ensuring that the sector is an attractive place to work.