Untitled - The Edinburgh Chamber of Commerce

Section 1: A new approach to government in Edinburgh and Scotland
The recession and government measures to rescue the financial system led to
severe budget deficits and high levels of public debt. We believe that these need to
be tackled to reduce interest payments and maintain confidence in our economy.
The UK government‟s plans to balance the budget over the next four years are a
sensible framework for achieving stable public finances.
Within that period, the Scottish Government must find savings of at least ten per
cent. Edinburgh Chamber of Commerce believes that this target is moderate and
achievable. The right approach is to seek productivity improvements in the public
sector which will allow savings to be made without raising taxes or cutting investment
in vital economic infrastructure.
Public spending in Scotland is already 15% higher than the UK average after a
decade of increased spending. Meaningful reform of public institutions would allow
front line services to be maintained at a higher level than elsewhere in the UK while
still leaving room for capital investment and low taxes. Within the public sector there
are good examples of how to do this, and we encourage the adoption of best
practice. The opportunity is there for a rebalanced economy with lower overall public
spending allowing higher growth and more efficient services in the future. In any
business- private or public there are always efficiency gains to be made.
It is vital that within this mix the Scottish Government retain political engagement
with the business community. The private sector cannot be expected to lead the
recovery (which it is very willing to do) without the listening ear of our legislators.
Edinburgh Chamber of Commerce has a good record of engaging with all political
parties, and would like to see this reinforced in the next parliament, with increased
committee engagement and meetings where necessary.
The Scottish Government‟s response: UK Budget 2010
The draft budget presented by the Finance Minister, John Swinney in November set
out public spending cuts of £1.2bn for the year 2011/12. Edinburgh Chamber of
Commerce believes that the budget sets out a sensible path towards fiscal
retrenchment, with its emphasis on efficiency savings and pay restraint. In particular
we support the continued emphasis on a council tax freeze.
However, we believe that government should invest more in economic development,
skills and infrastructure, as key factors for stimulating economic growth. If we do not
invest in the things which grow the economy we will miss the opportunity to
accelerate the recovery.
New opportunities
The budget did not set out in detail the Scottish Government‟s approach to achieving
the efficiency savings required in most departments. Much of this will be the subject
of the Christie Commission and also debate in the run up to the election. Edinburgh
Chamber of Commerce believes that this presents new opportunities to remodel our
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