Scottish Government may have to consider forced layoffs to meet staffing cuts

During a hearing of the Public Service Reform Committee at Holyrood, IFS expert David Phillips cautioned that the Scottish Government's ambition to cut public sector headcount by 0.5% annually until 2031 may be unattainable through attrition alone. He explained that random staff departures are unlikely to produce the scale of reductions required, especially as certain areas will need more personnel, like healthcare and technology roles.

While voluntary redundancy schemes are being explored, Phillips suggested that compulsory redundancies could become necessary to free up positions for these growth areas. The government has long upheld a principle against forced layoffs, aiming instead to meet targets by not back-filling vacancies. However, the looming near-£5 billion fiscal gap by decade's end adds pressure to consider more drastic measures.