‘Inevitable’ public sector will shrink as tech takes over, says Swinney

Scotland’s public sector will inevitably shrink as services look to innovations like AI, John Swinney has said.

The First Minister told leaders in the public and third sector on Monday his Government plans to embark on a “renewal” of public services by harnessing new technologies.

A statement is due to be made to Holyrood this week laying out the plan.

But speaking on Monday, the First Minister said demand will soon outstrip supply for public services such as the NHS if they do not reform themselves for the 21st century.

“I see first hand from visits to all parts of the country, shining examples of partnership, innovation and success, and I know that the first steps of the journey to better, have already been taken,” he said.

“But there is a reality that we must face.

“We are not going to be able to make the money we have available for public services match the demand for those services unless we ramp up our use of technology.

“That requires a near-complete digital re-fit of our public realm – above all, systems that are designed to service the public.”

But speaking to journalists after the speech, Mr Swinney said there would “undoubtedly” be a reduction in the number of public sector staff in the coming years, though he was unable to give a figure.

“We’ve made it clear there will have to be contractions in the public sector workforce in the years to come and that’s an inevitable part of the management of the public finances, given the outlook which we got from the spending review from the UK Government,” he said.

“So that has to be undertaken in a way that does not – in any way, shape or form – damage the outcomes that people can expect from the public services.”

He added: “The approach we are taking is about making sure that at all times we’re focused on the creation of sustainability within our public services and the points and approaches that I set out today are all part of that exercise.”

But the First Minister added that the Scottish Government would not scrap its commitment not to use compulsory redundancies.

While Finance Secretary under Nicola Sturgeon, Deputy First Minister Kate Forbes put forward a plan to cut thousands of public sector jobs, bringing the number back to pre-pandemic levels.