Presentation is loading. Please wait.

Presentation is loading. Please wait.

IMPROVING PRODUCTIVITY IN SCOTLANDS PUBLIC SECTOR JO ARMSTRONG Scottish Policy Innovation Forum February 29 th 2008.

Similar presentations


Presentation on theme: "IMPROVING PRODUCTIVITY IN SCOTLANDS PUBLIC SECTOR JO ARMSTRONG Scottish Policy Innovation Forum February 29 th 2008."— Presentation transcript:

1 IMPROVING PRODUCTIVITY IN SCOTLANDS PUBLIC SECTOR JO ARMSTRONG Scottish Policy Innovation Forum February 29 th 2008

2 Presentation outline Ø Why competition / contestibility Ø Scottish Water Ø Lessons to apply to 3 chosen sectors –Social housing –Care services –Waste management

3 Why competition Ø Competition delivers effective allocation of scarce resources Ø 2007 Budget settlement very tight SG spending rising at 1.5% pa in real compared to >5% pa historically Some facing a real terms cut & feels like a cut for many more?

4 Scottish Government DEL £ million, nominal prices HMT Scottish DEL26,57827,60228,75630,141 SG DEL26,82428,00229,25630,339 Overspend Funded by: EYF / reserves Over-allocation Balance0000

5 Why competition Ø 2007 Budget settlement very tight Ø Demand for services keeps growing COMPETITION = PRIVATISATION

6 Scottish Water experience Ø Monopoly provider established in 2002 Ø Economic Regulator sets price caps within which Scottish Water must operate Ø Delivered: –40% reduction in operating costs –undertook record investment AND –increased output and quality

7 Actual Vs Target operating costs (£m, prices) Source: WICS

8 Lessons for wider application Ø Clear Objectives Ø Effective competition and regulation Ø Effective benchmarking Ø Incentives drive performance

9 Social Housing

10 Care Services

11 Waste Management

12 Conclusions Ø Efficiencies no longer nice to have Ø Competition & contestibility offer routes to greater VFM (economic regulation 2 nd best option) Ø Scotland fears competition – how do we reduce the fear?

13 / Improving Productivity in Scotland's Public Services [Data-light version out soon!]


Download ppt "IMPROVING PRODUCTIVITY IN SCOTLANDS PUBLIC SECTOR JO ARMSTRONG Scottish Policy Innovation Forum February 29 th 2008."

Similar presentations


Ads by Google