Centre for Public Policy for Regions

Introduction

The Centre for Public Policy for Regions (CPPR) is a 'a major research initiative being jointly pursued by the Universities of Glasgow and Strathclyde. It looks at the role of public policy in promoting economic and social development in Scotland and beyond. The purpose of the CPPR is to produce 'Quality research for better public policies' and to develop a dialogue with government, communities and the private sector. To this end it publishes research papers and hold seminars and policy briefings on the key economic and social challenges facing Scotland and other regions' .

Scottish Budget Analysis

A key role played by the CPPR is in providing economic analysis of Scottish Governments budgets. CPPR economic consultants Richard Harris, Jo Armstrong and John Mclaren have published various papers discussing their interpretations of the financial plight facing the Scottish Government. They have been forthright in their proclamations: Scottish Government spending will have to be reduced significantly. Moreover, these cuts, according to the CPPR, will need to be introduced almost immediately.

A press release from December 2009 indicates their concerns.

In it they state, 'The prospects for Scotland’s Budget remain grim. Overall, the Scottish Government now faces unprecedented change in relation to its budgetary future. Such a future may therefore require previously unprecedented changes in policy thinking and funding arrangements in order to steer a way through that limits the impact on the provision of public services' .

CPPR and Scottish Water

In August 2009 the CPPR published THE SCOTTISH GOVERNMENT’S BUDGET GROWTH PROSPECTS AND BUDGET OPTIONS. Commissioned by Solace and CIPFA Directors of Finance it was written by Jo Armstrong and John Mclaren. In it they effectively considered potential 'unprecedented changes in policy thinking and funding arrangements'. Or, put another way, what cuts and savings the Scottish Government may consider administering in order to redress the funding shortfall they face.

The August 2009 report specifies two areas for savings. In Education they argue spending efficiencies could be made. They also target savings from Scottish Water. Stating how the Scottish Government will loan Scottish Water 'around £545 million for the 3 years 2008-09 to 2010-11'. They continue, 'The Scottish Government receives no Barnett funding from an equivalent budget line in England for this, as water services are delivered outside the public sector in England and Wales. Removing Scottish Ministers as Scottish Water’s owner would allow it to have access to private sector funding and in doing so free up scarce public funding for use elsewhere' .

They did not stipulate what the potential changed model - out with public ownership and control - would look like in the August report. However, in November 2008, Jo Armstrong, John Mclaren and Richard Harris, wrote another paper reviewing the pressures on the 2008 Scottish Budget affecting the years until 2011 .

In the paper they wrote how..."Given the tightness of the current budget from which to find funds that might help counter the negative impacts of the growing recession, what alternatives sources exist?"

Once again they suggested to consider changing the ownership model of Scottish Water. This time Jo Armstrong and John Mclaren did not call for Privatisation, as they did for the Scotland on Sunday Think Tank of the 'finest minds' in Scotland. Rather they said the Howatt Report otherwise known as The Scottish Government (2006), Choices for a Purpose: Review of Scottish Executive Budgets: Report of the Budget Review Group "could be revisited and some of the bolder issues discussed therein reconsidered e.g. mutualisation of Scottish Water (possibly releasing around £180 million per annum)" .