Swinney says ‘no question’ of compulsory job losses as he cuts NHS boards

John Swinney announced plans in his Programme for Government that would see the number of area health boards in Scotland cut from 14 at present to just two.

Unions have raised concerns the changes will result in thousands of job losses, with Unite insisting that “all options will be on the table” if needed.

The threat came as the union’s general secretary Sharon Graham hit out at the “slash and burn programme for the NHS” that Mr Swinney proposed.

“The proposals will inevitably result in swingeing cuts and thousands of job losses across the public sector,” she added.

Mr Swinney however insisted the Scottish Government would “work very closely” with unions as it embarks on the changes.

When he announced the changes to MSPs on Tuesday, the First Minister said they were “the most radical reshaping of public services” in Holyrood’s history.

And speaking on Wednesday he insisted the country needs to not only “change the way in which we deliver public services to make sure they are sustainable”, but also needs to reduce the public sector workforce.

With the Scottish Government facing a budget black hole of almost £5 billion by the end of the decade the SNP leader said: “I have said that for all the time I have been First Minister there will be a need for public sector employment to fall.”

Stressing that the government has to “live in the realities of the financial situation that we face” he told BBC Radio Scotland’s breakfast programme that “it is likely over the next few years that there will be a reduction in public sector employment”.

He refused to estimate how many jobs could go as a result of the changes – which will also see a new structure set up for Scotland’s councils.

Mr Swinney was clear he was not going to “put particular numbers on this” with regard to job losses.

But he insisted that ministers would “work collaboratively” with the unions as the country moves “toward the two-board approach”.

The First Minister also insisted the government’s policy of no compulsory redundancies within the public sector would be maintained.

Mr Swinney vowed: “I’ll maintain the no compulsory redundancy commitment.”

This he said was an “essential part of how you provide reform” because of the assurance it gives to staff.

“There is no question about that in my mind,” the First Minister added.

But he said :”We have got to make sure is that we work with the trade unions to undertake a reform programme.

“That will mean a reduction in public sector employment and that is part of what we have face up to as we adapt the health service to meet the needs of the population.”

The changes he is setting out would also see the NHS given greater control over social care – which is currently the responsibility of Scotland’s councils.

But by giving the health service the “the levers of control” over this will help cut the number of Scots who are kept in hospital waiting for care packages to be put in place, the First Minister said.

He stated: “That is what is blocking up all our hospitals.”

And while the SNP leader said Scotland should have “fewer” councils than the 32 that currently operate, he refused to say how many authorities there should be going forward.

Mr Swinney insisted he wanted to “engage with local government” on this issue.

But speaking about councils he was clear: “I think at the strategic level I think there should be fewer.”

The First Minister added that his approach was about “having a range of larger councils in Scotland, that are strategic in their nature, able to undertake some of the very sophisticated challenges we deal with in local authorities”.