Public spending cuts in Scotland can be reduced by working smarter
Economists have spoken out over controversial public spending cuts that they believe will have far worse implications for Scotland than other areas of the UK.
It is thought that proposals made by the Calman Commission, or The Commission on Scottish Devolution, might lead to a 25% cut in spending, lost income tax revenue and an inability to use higher VAT to compensate.
Professors Andrew Hughes Hallett and Drew Scott, of Edinburgh and St Andrews universities respectively, reported: "It is difficult to believe that some of Scotland's politicians and sections of business community are ready to endorse a financing arrangement that is virtually certain to impose on Scotland a scale of fiscal cuts that no other part of the UK will experience.”
At a time in UK economic history when cuts in public spending are extremely prevalent, it would be prudent to first investigate where money is currently being leaked through inefficient business processes before committing to any drastic measures.
This is potentially most relevant in the back office where the implementation of specialist financial software can replace old-fashioned processes, saving time and money – Faster Payments takes over from expensive CHAPS transactions; electronic document delivery replaces the archaic, paper-based equivalent; Direct Debits facilitate better cash flow projection and bank account validation tools eliminate errors in financial data.
By working smarter, it’s possible that the proposed cuts intended by the Calman Commission do not have to be as far-reaching as many fear. Making a modest infrastructural investment now will pay dividends in the near-future, and ensure that organisations are operating in a slick and resourceful manner.
Read the full article on www.heraldscotland.com »
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