Fiscal Sustainability: Demographic Change and Ageing Population
In its response to the Scottish Parliament’s Finance Committee Inquiry, the RSE states that fiscal sustainability will be influenced by the extent to which ‘healthy ageing’ and preventative interventions are embedded into current and future policy priorities. With marked real term declines in public spending, the emphasis must be on securing best value from the available public expenditure. The means that no policy should be protected until both the cost/benefits and opportunity costs – social, economic and environmental – of its delivery are critically evaluated. To help achieve this, radical reform of the current adult health and social care system is required.
Scotland’s budgetary framework is in need of reform and the annuality of the current budgetary process should be reviewed as it restricts longer-term prioritisation of spend. This was highlighted by Audit Scotland.