KATE Forbes has rejected claims that cuts to public spending will result in a “slash and burn” of frontline services.

The Finance Secretary said her calls for a “reset” of Scotland’s public sector would not mean compulsory redundancies but would give “employers the flexibility to manage their workforce.”

She also defended the £20 million ringfenced for a second referendum on independence, saying that “more than ever” Scotland needed a vote on the constitution. 

The SNP minister published a four-year spending review on Tuesday, outlining a swathe of cuts intended to head off a projected £3.5 billion spending gap by 2026/27

Ms Forbes told MSPs that savings would be made through a “reshape and refocus” of the public sector, including a shrinking of the workforce down to pre-Brexit, pre-pandemic levels. 

The biggest loser in the review was local government, with its funding frozen for the rest of the parliament, implying big council tax rises from next spring and potential cuts to schools, social work, cleansing, parks, libraries, local roads, and other council services.

STUC general secretary Roz Foyer said the review would “ring alarm bells for many public sector workers”.

The biggest winner, however, was social security, with more than £23 billion in payments set to be delivered over the next four years. 

Speaking to journalists during a visit to St Bernard’s Primary School in Glasgow on Wednesday morning, Ms Forbes outlined some of the areas where she thought there could be savings made. 

“If you take one example, businesses looking for grant support, they can go to three, four, five, six, seven different public bodies to receive grants.

"That's not efficient. So it's about trying to reduce duplication, increase efficiency, and ultimately ensure we maximise funding for the front line.”

The minister denied that was undermined by the cuts to council budgets.

“We've set out a resource spending review that I think is fair. I think it protects local government because we need local government in order to deliver our core objectives like tackling child poverty. 

“But at the end of the day, out of less resource, where the budget has been cut by 5.2% versus last year, and growth of only 2% over the next four years, if we exclude Social Security, it's very challenging. 

“So my job has been to try and treat all parts of the public sector fairly, but also to prioritise our objectives.”

Earlier in the day, Calum Steele, the general secretary of the Scottish Police Federation had accused the minister of reneging on a manifesto commitment to protect the police resources budget in real terms for the entirety of the next parliament. 

According to the IFS, the Resource Spending Review will see an 8% cut to the justice budget. 

“As police officers, we are more than used to people being economic with the truth with us. We just understand that to come from our government,” he told the BBC’s Good Morning Scotland.

“We currently spend 87% of our revenue on people. And so in terms of what has to go, the only thing that can go, if the government doesn't change its position, is people.”

Ms Forbes did not agree. She told The Herald the spending review had set out “the broad spending parameters for the next four years based on the information we have available.” 

She added: “I cannot spend a penny more than the Scottish fiscal commission say I will receive. 

“Now that is based on the UK Government Spending Review in October last year when inflation was 3.1% It is currently 9% set to rise to 11%. There's a lot that can change between now and the next budget. 

“We know what our manifesto commitments are. We believe in delivering them and we intend to deliver them as part of every budget.”

Ms Forbes insisted it would not lead to staff cuts: “The approach that we're taking right now, and I have been clear that I think we need a reset, but that reset allows employers flexibility to meet demand. 

“So for example, in the health service, we know we're going to need a significant increase of workers in the national care service. So you can't argue that that is a cut, but equally there will be some teams that are no longer needed. 

“And the police is another example where during Covid a lot of police officers have had to respond to particular challenges that will change over the next few years. 

"So it's not about arbitrary figures, it's not about a slash and burn approach, it's about the flexibility to meet need.” 

On the money set aside for a second independence referendum, Ms Fobres said the government believed in “delivering on our manifesto promises”. 

“And one of those manifesto promises was to hold a referendum. So that £20 million out of a total of £200 billion delivers on that manifesto commitment. 

“But I also say that at a time where families tell me today that they are struggling with the cost of living, their fuel bills are rising, and there isn't enough support coming from the UK Government,I would suggest that more than ever Scotland needs that choice. 

“We know that it's Scottish industry that's largely bankrolling the UK government's response to the cost of living crisis. And clearly, Scotland is rich enough, wealthy enough and we should put that question to the people.”