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Action to improve public services and cut the number of public bodies should save at least £40 million a year, according to an update on the Scottish Government's Simplification Programme that is published today.

On the day the Public Services Reform (Scotland) Bill which will further streamline and improve services is published, the update shows Ministers are on track to shrink the number of public bodies by over 25 per cent by 2011.

It shows that projects already delivered are estimated to save taxpayers £127 million between 2008 and 2013, with projected annual savings of £36 million each year thereafter. Proposals in the Public Services Reform Bill should increase annual savings to over £40 million.

The number of public bodies has already been cut from 199 to 162 and the Public Services Reform Bill and forthcoming Children's Hearings Bill will reduce that number to around 120 bodies by 2011.

Finance Secretary John Swinney said:

"This Government is acting to make our public services simpler, sharper, better co-ordinated and more responsive - all the more crucial if we are to support Scotland's economic recovery.

"We are on track to exceed our target to reduce the number of bodies by 25 per cent, making the improvements and saving the money that people rightly demand.

"The Public Services Reform Bill is another important milestone. It provides necessary changes to legislation to abolish and merge more bodies and puts a new framework in place to manage future change.

"The simplification process has clearly shown that we need the tools to act more quickly to respond to changing circumstances in how we organise our public services. The Bill therefore proposes that, with Parliament's approval, Ministers could make further necessary changes to transfer or amend the functions of public bodies for which they are responsible. This will avoid situations where necessary changes are delayed, or do not proceed at all, because a suitable legislative slot is not available.

"The Bill will also provide a new power to remove or reduce burdens on business, the public sector or third sector, like financial costs or bureaucratic requirements. This replicates existing powers in the Legislative and Regulatory Reform Act 2006 which already apply to reserved issues in Scotland.

"The Bill will establish Creative Scotland to provide a new focus and impetus for Scotland's arts sectors and creative industries. As a single body, Creative Scotland will develop Scotland's creative talent, promote the arts and creative industries on the international stage, and represent and support a truly diverse artistic community in Scotland at the highest level.

"Two new bodies will replace a range of existing scrutiny organisations. Health Improvement Scotland (HIS) and Social Care and Social Work Improvement Scotland (SCSWIS) will ensure more co-ordinated, consistent and effective approaches to scrutiny of services in the public, private and voluntary sectors that provide for some of the most vulnerable in our society.

"Whilst changes to the structure of public bodies will impact on staff, we have given a specific assurance that there will be no compulsory redundancies as a consequence of these changes.

"In simplifying the public sector, we are injecting a new focus and ensuring that public bodies deliver better services and contribute to sustainable economic growth."

Related Information
Simplification Programme update

Public Services Reform Bill